Brett:

Absolutely love that, and I love that you had to overcome so much try and overcome the naysayers, even in your own family. Like you're saying like your uncle. He can be able to do that, and you're gonna go prove him wrong, and I want to persevere. Where did that inner drive come from? What do you feel came from? Maybe where we’re the voices of hope and inspiration poured into you to help you overcome some of those challenging naysayers?

Jeff:

At them, they were all put on this planet, with the ability to do whatever we want. We're all put on this plan to do whatever we want. For me, I always go back to my purpose, my purpose in life is to inspire and support the super hungry to take hold of infinite resources in order to create an abundant lifestyle. Now, I didn't have that in those exact words at the time when I was 16. But I had an idea of the things that I wanted to do, and what I started doing was I started setting vision boards. I started having a vision board, and that I had a 2020 vision, for example, in 2010, when I started at the University of Illinois, Urbana Champaign, at a 2020 visit, and part of the 2020 vision was to become a millionaire To essentially get married, to be able to write a book on how to become a millionaire and ultimately help people.

Once you know your purpose, and what your purpose really is, who you are the things that internally motivate or drive, then you come out with a vision board. The vision is essentially where you want to go. It's where basically it's the where, so when you have a hole and then aware, all you need to do is the what do you need to do, basically, and that's your mission. You mentioned this simple action item, calendar invitations, whatever you need to do to get you from where you are to ultimately where you need to be. For me, I had a crystal clear vision of where I wanted to go and anything that got in my way that I had to either get rid of or have to turn in the opposite direction. When you have a clear a crystal clear vision, and then you have a purpose with that. You will not get distracted for one and number two, you will always be on a life path.

Brett:

That's amazing. I don't know if I've ever put it so succinctly. Always go back to your purpose. I feel like that's like your true north. Like, why you've been put why even given the gifts you've been given why you went through the challenges you went through. Why you're here now and your, your design and create it to go fulfill this mission now, and then having that vision. What does that look like here in the next 1, 3, 5 years with what I've been given? Where do I want to go? Then the mission is just, what's it gonna take to get there now? So let's reverse engineer it. Let's do the steps to do it. Is that a fair summary so far, Jeff?

Jeff:

I would say that's a very, very fair summary, Brett. Extremely fair summary. Because, it's all about the purpose, the mission, and vision.

Brett:

In a world that is filled with distractions, and all of us, in so many ways, and all the information coming at us and all the stress in life, especially the last couple of years, given COVID gave political giving to the challenges of the world. How do you personally, what habits are you doing? What things are you doing to make sure that you don't get off your TrueNorth?

Jeff:

That's a great question, Brett. What are the things that I'm doing to really, keep intact are? I'll name off a few things. Number one, my spiritual life is very, very important to me. For me, I'm the type, I wake up, say a prayer, thank God for waking me up, and allow me to see another day, I think it's always important to show gratitude, by showing gratitude and making sure that you are feeding your spirit with things that you need to do is very important. Another thing is physical, right drinking, making sure you're drinking enough water throughout the day, one of the first things I do these days, I drink a full bottle of water, I just to cleanse the body, make sure the body is ready for the day, and also meditation, even if it's five minutes, just close your eyes, and just imagine, like tapping into one of the most powerful places, one of the most powerful realms on the planet, and basically, being able to meditate is also very, very important, and then in general, just having a nice daily routine or ritual.

For me, I wake up, do my prayer, drink water, clean up, freshen up everything like that, get into a few meetings today, making sure that I’ve educated myself, I spent at least three hours a day on self-education, something that's going to help my mind stay fresh, basically, and just and just keep me educated, education and self-education is so so important, and then also making sure you're getting your eight hours of sleep every night. I didn't get eight hours of sleep every night is very important and then last but not least, you want to make sure that when you're going to sleep, you have a clean, good mindset, nothing negative or anything like that. You want to make sure that you're going to bed in a good mood. That doesn't affect you the next day.

Brett:

So much wisdom, then obviously, that's where you've written some books. Thank you so much for sharing that. Now let's get really practical now on on the action-oriented part of buying, multifamily properties, buying investment properties. Some of the tax stuff. Maybe we'll geek out here and here in a minute on that. But tell us about maybe a recent deal you did what it looked like what some of the returns you're looking to achieve on it with. What business plan is it for that property?

Jeff:

Great question. We recently acquired a 25 unit apartment building, and that's on the South Side of Chicago. Basically, the reason why the seller was selling it was that they were tired of being a slumlord. A tired landlord, basically. When we buy properties, we buy them fully fixed up, their value adds properties, essentially, the turnkey properties, like, just give me the keys and I'll run with it. We got a pretty good price. It's a 25 unit building. The building was fully filled up, it had the tenant show up. But unfortunately, the part that we did not know where we kind of expected it anyway, was that the seller, basically had some tenants that weren't paying and or they basically needed to be evicted. What we had to do was we had to turn around the building basically, we had to meet individually with each of the tenants. Make sure that they understood who we were a property management team that they got their names and they introduced themselves.

They explained to them how our payment system works, how you can pay, where to pay, and everything like that, where to type that sense five-day notices 30-day notices to make sure that there weren't you can get evicted. If you mess it around any tenant that was significantly behind, we let them know about our programs, or some government programs, they can take advantage of like the rental assistance programs. Basically, we had to turn around that old building. we had to clean up the management of the building, we have to clean up the tenants. But the building is cash flow pretty nice. It's one of those that can make you at least a 20% return on your investment. This is a big apartment unit building on the south side of Chicago, and this is pretty much similar features to our other properties as well.

Brett:

Turnkey, and that it was fully occupied, but value-added that some of the units need to be turned right improved and or management cleaned up and more efficient, and also making sure that, tenants are paying on time. But then also giving them opportunities and assistance for that, coaching them up and say, here's an opportunity to some assistance programs here, trying to make it a win-win for everybody. Is that a fair summary?

Jeff:

Without a doubt. That's the thing about real estate, if you're not looking to help other people win, then you might not win yourself.

Brett:

Now let's shift into tax deferral. Part of what we're passionate about here is helping people who are selling highly appreciated apartment complexes and not feel forced by the 1031 Exchange to overpay for a property they can't find. I'm curious, what's been the biggest frustration for you clients for, family, friends, when it comes to the 1031 Exchange and or lack thereof options for different tax deferral strategies?

Jeff:

I mean, as far as frustrations when it comes to the capital gains tax, the first thing is most of my clients don't sell. They liked all of these things for a very long time. Although we do have those that may want to sell. You're right, the 1031 Exchange, has very, very strict time restrictions. I'm actually in a deal right now with a seller who's struggling with 1031. Because we can't close in time. Basically, part of the frustration is like, you got to have that third-party intermediary, which they don't want to pay, they never want to pay extra fees for anything. They don't like third-party intermediary money being tied up with somebody that they don't know. They absolutely hate that. They also hate the fact that they're strict timelines, and when you have to buy a new property, and when you have to sell the existing property. I would say that's probably the two biggest frustrations when it comes to, the whole 1031 Exchange. Nowadays, you have things like opportunity zones. You have I mean, if it's a homeowner, then you can always take advantage of the homeowner’s exclusion, which can allow you to defer or actually eliminate up to $500,000 worth of capital gains taxes if you live in the home for at least two years. In general, Then you have the number one, the first strategy on the planet, which is death, unfortunately.

Brett:

If you never sell, and you don't leverage too much, in real estate. Especially multifamily, and you get about 20, 30, 40, 50, and 100 units. It's like collecting monopoly pieces around the board, and that's a good strategy, buy, renovate, refinance, and then repeat. But at a certain point there, people do get tired of the toilet trash liability, and they're wanting to sell and they're not wanting to trade, their current problems for a new set of problems. In fact, I had a client, his name is Peter, and he was driving to the south side of Sacramento, and 18 units. He's managing it can't find it. It's like that size of the unit where he, he's literally a couple of hours away. It's kind of a burden because he's a couple of days a week he's having to drive and fight traffic. He can't find great property management. He's doing it himself. He dealt with evictions and challenges, and he's like, 70. He's like, I got 18 problems here, and I want you to do a 1031 exchange, why not just do 1031. He's like, Brett, I got 18 problems. I don't need 36 problems. I got 18. Now, like, I don't zero any problems.

He used something called a Deferred Sales Trust is what we specialize in. It gives clients a chance to sit on the sidelines, buyback into real estate whenever they want all tax-deferred, not using 1031 it works for cryptocurrency businesses, primary homes, and whereas 1031 only works for investment, real estate, and so we believe it's like the Netflix way of Exit Planning versus most folks are just focused on the blockbuster way of doing things. But once you figure it out, it solves so many problems. Many people, especially if they're wanting to relocate out of California, or even Chicago or places where they want, but feel trapped by this capital gains tax, by the way, anyone wants to learn that you can go to CapitalGainsTaxSolutions.com. That's CapitalGainsTaxSolutions.com, any thoughts on that, Jeff? Does that ring a bell there for any of your clients at all?

Jeff:

That's a good point. Most of our clients, don't they're not in the whole sell round. But you're right. I mean, to be honest, using a difference. The first sales trust is not necessarily something that's fun of mine. Sometimes when we talk to clients, sometimes we literally like a page, a handbook, all the strategies laid out, and I think it makes sense, especially maybe someone who may be looking to perhaps gets out of the real estate, maybe someone who just says, I'm tired of the whole 1031 exchange. I know that is great, I think it's an excellent strategy for people to take advantage of, so it's probably something I'm going to recommend to clients even more.

Brett:

Thanks for sharing that also, too, as a buyer. if you're buying those 25 units from that seller, a lot of times their Mom and Pops have owned it for 10 or 20 years, and they've been, let's say, more a little generous with the rents or they haven't really pressed the rents, they get close to the tenant, they close to the management, and its cash flow in the bottom is so low, and they're just like kind of just, relaxed on the cash flow. But when they sell, they're gonna pay a big tax. If you come in and say, look, let me get you your price, maybe a little bit lower, because I'm happy to save let's say a million of tax or defer a million of tax, without having to do 1031. We've seen it as a way to unlock new deals because some sellers are like, You know what, I'm gonna wait till I die, there's no way I'm selling my 25 unit building for $4 million, or whatever it is to pay a million and a half of tax, forget it. Then they go, I'm not turning 31, because I don't want a new set of problems, and so again, this can fit right in between, they don't have to go into any active more real estate.

But they could if they want to, they can invest in stocks, bonds, mutual funds, they can also put it back into passive deals, or active deals ground-up developed, we had a client who just sold a business for 2.6 million in Alabama, and he deferred 600,000 of tax, and now he's building 70 multifamily units in Tennessee, all tax-deferred, and so there's a lot of ways to accomplish this with the trust again, capitalgainstaxsolutions.com. That being said, are you ready for the lightning round, Jeff?

Jeff:

Yes, sir.

Brett:

All right, here we go. Knowing what you know now, if you go back to your 25-year-old self with the one golden nugget, make sure to tell yourself to do.

Jeff:

My 25-year-old self would be to take better care of my 25-year-old body.

Brett:

We're not young forever. We're getting old, we're getting older, and next question, what's the number one book you've recommended or gifted the most in the past year?

Jeff:

Number one is this book right here, which is the infinite expansion book. How to infinitely Expand Your Vision Of Abundance, and is actually available on Amazon, and it's a book written about my purpose in life, and ultimately, the 12 steps to creating an abundant lifestyle.

Brett:

Beautiful love that next question, what are you most curious about right now?

Jeff:

The thing I'm most curious about is what's going to happen in the real estate market within the next two years. It can go really high because inventory is low. Or it can go really low because people are about to get evicted, slash, foreclosed on left and right. Very interested to see what happened.

Brett:

I'm holding my breath. I mean, what in California, it feels a lot. A lot of ways. It feels like, 06, 07, and in a lot of ways it doesn't. I'm really I'm also conflicted on that as well. By the way, you probably read the book, Rich Dad, Poor Dad, I assume Robert Kiyosaki, like what's the best-kept secret that you'd like to share with folks on regards to getting on the right side of the quadrant?

Jeff:

Number one thing is if you want to become wealthy, find ways to not legally pay income taxes. And people sleep on a tax landscape a lot. For some reason, they say, I want to make more money, I want to make more money, I want to cut down on bills, but then they forget about taxes. One thing I learned was that the wealthy or aka the rich don't pay any taxes. Because they start big businesses, and then they take the profits from the businesses investing back into Real Estate so that all of a sudden you have a tax deduction. Your real estate depreciation, all that which is offsetting some of your other income sources.

Brett:

It's so true, Robert Kiyosaki says it well, he says, the purpose of a business is to buy real estate, and he says that over and over and over again and like once you understand that. Why because what you just said, the ability for the government to incentivize us to buy an investment, real estate and depreciate it, and therefore, once you're a real estate professional has a certain amount of hours you're working on your actual deals. There's a chance where you pay next to nothing in income tax, and if you can, if you can lower your spending in the beginning, and invest as much as you possibly can, and build this up, yes, there are ways or you can pay next to none or no tax. Why? Because you're providing a big service for people, which is owning and providing housing. Which is number one, to society without having housing and education and food, like, everything else kind of falls apart, very cool. Thanks for sharing that insight. The next question is this number, the number one leadership quote or theme that you strive to live by, and it can course be your purpose because I think it's so you can say it again. But maybe there's a second one that I that you would say as well, that you really, really resonate with.

Jeff:

The number one leadership thing that I will live by outside of my purpose is that basically doing something today that your future self will be proud of. Do something today that your future self will be proud of? Because it's not necessarily about, I want to make the most money and all that. It's what am I going to do today? Not tomorrow. But what am I going to do today? That time has given me a lot of money to today? What am I going to do today to create a better future for myself and my family? When you ask yourself that question every day, it could just be one thing. If you ask yourself that question every day, you will live a much better lifestyle for sure.

Brett:

Amazing, Jeff, I want to thank you for being on the show. I want to thank you for sharing so much wisdom, I'm already better for it. I'm more inspired by it. I want to encourage you to keep being a wealth multiplier, speaking life into all of us. and to allow people to see more of what they can be instead of the limitations of the challenging circumstances around us. For our listeners who want to get in touch with you, would you remind them one last time? What's the best place for them to find you?

Jeff:

Brett, first of all, thank you for having me on your show today. It's always an honor and a pleasure. You can basically check out my website, JeffBadu.com. Once again, that's JeffBadu.com, and on that site, there are infinite resources on that website. Infinite resources, articles, videos, audio, my books, courses, everything like that. 95% of the stuff that's on the site is 100%, free. Encourage you to take advantage of that, and then you can also contact me there's a “Contact Me” section, where you can literally send me a message, it comes directly to my email, and I'm the one that responds to the email as well. JeffBadu.com is the best place to reach me.

Brett:

Thanks, Jeff Badu. Thanks so much for being on the show again, and also want to thank our listeners for listening to another episode of the Capital Gains Tax Solutions Podcast, also streaming eXpertCRESecrets.com, where we believe most high net worth individuals and those who help them they struggle with clarifying their Capital Gains Tax Deferral Options, not having a clear plan is the enemy and using a proven tax deferral strategies such as the Deferred Sales Trust is the best way for you to Defer Capital Gains Tax on the sale of an investment, Real Estate, Businesses, Cryptocurrency, Primary Homes. You can create and preserve more wealth and maybe unlock that next real estate deal at optimal timing anytime or next business venture. To have some more freedom and flexibility in your life you can go to CapitalGainsTaxSolutions.com. To learn more about that’s CapitalGainsTaxSolutions.com. If you're a business professional listening to this CPA Tax Attorney, you're a financial advisor, you're a commercial real estate syndicator or broker, you can also go to eXpertTaxSecrets.com to learn more about how to use the Deferred Sales Trust to grow your business. Thanks so much for watching this please rate review, subscribe. Please check us out on YouTube, if you're hearing this on iTunes, or any other streaming services that you're listening to this on, and please share this with somebody who could help and inspire today. Thank you everyone for being out there.