After retiring at age 40, Tim Rhode became the creative force behind 1lifefullylived.org—a non-profit that helps people master their lives, so together WE can change the world.
He is also the co-founder of GoBundance, which is a tribe for healthy, wealthy, generous men who choose to lead epic lives.
I’ve had the pleasure of knowing Tim now for quite a few years, and I can truly say, he’s one of the most positive, uplifting and generous people I’ve ever met.
Although Tim barely graduated high school and never attended any college, he went on to create the life of his dreams. After a very humble beginning (he was a grocery clerk until 25) Tim went on to build a real estate empire, which has afforded him the opportunity to retire at the early age of 40.
Today, Tim shares the story of how he created financial freedom and the steps you can take to do the same!
- Hear about the board game that enabled Tim to become financially free.
- Discover The ABC Formula—the most important equation to getting out of the Rat Race.
- Tim shares his incredible story and the steps he took to go from being a part-time grocery clerk, to living financially free for the rest of his life.
- Advice for anybody who’s interested in real estate investing.
- Learn the importance of living below your means—a strategy Tim used to get where he is today!
- Why you should surround yourself with those who’ve already accomplished what you want in life.
- Why it’s irresponsible to be reliant on once source of income.
- And much more…
JOIN THE CONVERSATION
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- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!
- Cash Flow and Wealth Building Summit (April 21 & 22, 2018)
- FREE Cashflow Mastery Online Live Event hosted by Robert Kiyosaki (April 21, 2018)
- The Richest Man in Babylon
- The Wealthy Barber, Updated 3rd Edition: Everyone’s Commonsense Guide to Becoming Financially Independent
- The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It
- Mobile Home University
CONNECT WITH HAL
Hal: How are you doing? What’s new and exciting?
Tim: I’m doing great. Looking forward to the Kiyosaki event and finally, we’ve gotten winter in Northern California so I’m getting back in shape.
Hal: Nice. You’re out there skiing?
Tim: Yeah, getting a lot and training to go climb and ski Mount Shasta.
Tim: Which is, yeah. I like things like that that scare me, so you got to get in good shape.
Hal: I love your mindset, man. If you don’t mind sharing, how old are you again?
Tim: I’m 58.
Hal: Fifty-eight and you are more athletic and active than most people that are 18.
Tim: Thanks, Hal.
Hal: Which is I think that’s a big key to longevity is not pushing your body too hard but like my grandma I think she’s in her 70s now and she’s I think just something until a few years ago was still skiing and doing dancing every week and playing tennis and just staying really, really active so really cool.
Tim: Yeah. It’s huge.
Hal: You’re my model, man. When I’m 58 I want to be like you, Tim.
Tim: Thanks, Hal. I appreciate that.
Hal: I think people are listening right now. I think we are officially recording this podcast so let me tell everybody who I’m talking to. They’re like, “Who is this guy that Hal is talking to that is 58 and still climbing and skiing Mount Shasta and all that.” So, Achieve Your Goals Podcast listeners, what’s going on? This is your friend and your host, Hal Elrod. It’s been a fun last few days. My family is out of town and not that I don’t love my family being here but once you have a wife and kids it is kind of nice to have a little bit of space, a little bit of quiet time. For the first time in a long time, I’ve worked on a Saturday and a Sunday. I worked like morning until night. I got a ton of stuff done on the Miracle Morning movie. I’m updating the Miracle Morning book. Got a new book, the Miracle Equation that I just signed a deal with a publisher that’s working on it. So, lots of fun stuff but that is more than enough about me.
I am here to talk today with a friend of mine, really a good friend, Tim Rhode. And in case you don’t know who Tim is, let me give him a little bit of an introduction here. He is the founder of 1Life Fully Lived and 1Life Fully Lived is a nonprofit that helps people master their lives so together WE, capital W, capital E, WE can change the world. And he’s also the co-founder of GoBundance which you may have heard. I’ve interviewed other co-founders of GoBundance on the show before, David Osborn being one of them, and GoBundance is a high-level adventure travel mastermind group for men and I heard there’s a rumor that they’re getting a women’s division together but right now it’s for men. Tim, is there a women’s division yet? Is that in the works too?
Tim: We’re working on it.
Hal: Okay. Someday. But Tim came from humble beginnings. I can tell you that. He really came from humble beginnings to craft his 1Life Fully Lived and live to help others find their most fulfilling lives possible and from knowing Tim for quite a few years now, he’s one of the most positive, happy, he just announced he’s 58 years old but he’s like a kid. I mean, Tim, you’re always smiling. You’re always joyful and you bring such light and joy to every person that is in your presence so that’s one of the things I love about you, man.
Tim: Thanks, Hal. I appreciate that, man.
Hal: Yeah. Absolutely. Well, I mean it and for everybody listening, let me tell you we’re going to talk about today. We are going to talk about creating cash flow and getting out of the rat race and that’s something Tim has done. He retired at a young age and he’s built quite a financial empire and a big part of that was from Robert Kiyosaki. Robert Kiyosaki wrote the book, Rich Dad Poor Dad. You may know that. It’s I believe the number one selling personal finance book in the history of the world of all time and if you ever listened to Robert and talk about his business model, he didn’t write Rich Dad Poor Dad to sell books. He wrote Rich Dad Poor Dad to sell board games, the reason being as a traditionally published author which I think – do you know if Robert was published traditionally or was he self-published?
Tim: I believe it’s traditional.
Hal: I think traditional, right?
Hal: So, typically, traditionally published you’re making maybe a couple of box at the most per book sold but the CASHFLOW game, what’s the retail on the CASHFLOW again?
Hal: $79.99. So, he makes $1 or $2 on his book sale but then everyone that reads the book that then goes and buys the CASHFLOW game which allows people to integrate the concepts in the book through actual practice kind of like monopoly but a little more advanced and specific for building the habits and the mindset that will allow you to generate cash flow and then get out to the rat race. So, on that board game is making maybe probably cost some $10 to make if not less and so he’s making $70 in every board game. So, Robert has said that he wrote the book. The book has changed a lot of lives. It’s a phenomenal book with great content but it sells the board game and what Tim is about to lean and I’ll let him tell you of the details. I’ll shut up here in the second. I realize I’m talking a lot, but I’ll let Tim tell you here in a second is that Robert. Tim is going to host. 1Life Fully Lived is going to host Robert Kiyosaki to try to break a world record for the most people playing the CASHFLOW game at one time all around the world virtually.
So, with that, Tim, let’s just lead with this. Let’s just get this out of the way and tell people what’s the event that’s going on or if you want to tell first kind of what’s the CASHFLOW game. Yeah, let’s actually do that. We’ll tease the event. We’ll explain that in a few minutes. Talk about the CASHFLOW game and what it has done for you, how it’s enabled you to become financially free.
Tim: Sure. Well, I think it’s the most incredible game for learning how to earn more, invest, how to play the business of your life if you will that’s ever been created. I use this game personally back in the mid-90s to let say mid-2000s to do what the game’s all about and that gets out of the rat race and get on to the fast track of life and in the game, you’re given a character. Maybe you’re a mechanic. Maybe you’re an airplane pilot. Maybe you’re a teacher. Maybe you’re a janitor. Maybe you’re a doctor and in that, you have a salary and what’s it cost you to live and what’s your expenses and the interesting thing about the game, Hal, is it’s not the doctors, lawyers, and airline pilots that win the game. It is the teachers, janitors, and mechanics and you know why that is, Hal?
Tim: Because they have less debt and the whole idea of this game is to have your passive income, that’s your income from not working, your income from investing become larger than what it cost you to live per month and when your passive income is more than what your expenses are, you’re out of the rat race and onto the fast track. So, it’s a really fun game to play and I played it every quarter with my good friend and accountant, Byron McBroom. We get a group of us together and we’d play the game and then we’d look at where are we? What’s happened with our income? What’s happened with our passive income? How are we doing on controlling our expenses? And that’s one thing that 1Life Fully Lived is all about is helping people learn we call them the 1Life ABCs, what’s coming in every month, what’s going out every month, and what’s left over to invest? And that’s how you get out of the rat race is being mindful of that equation and that’s what this event 1Life Fully Lived with the help of Robert Kiyosaki donating his time to us for this amazing event. That’s what we’re doing.
Hal: Yeah. I know time’s not cheap for him to speak for now or it’s upwards of $100,000, somewhere in that range.
Hal: So, that’s a nice donation for him. And that’s one of the things I really do appreciate about what you’re doing and not just with the game and this one event but just in life in general, Tim, is that you’ve escaped the rat race so to speak. You’re financially free and while you love adventure, you love travel, you love being in the snow skiing, you could just be doing that all the time, you dedicate so much of your time to this nonprofit, 1Life Fully Lived and to helping other people do what you’ve done. You’re always paying it forward if you will. I appreciate that. So, tell us about the event itself. When is it? What is it? How does someone participate? Is it free? How does it all work?
Tim: Well, there are actually two events going on. One of them is a live event which Robert Kiyosaki, David Osborn, Jen Groover, Garrett Gunderson, some 1Life financial masters in Scottsdale, Arizona, the weekend of April 21 and 22 and that event cost $5,000 to attend but if anybody’s interested, we do have some spots for that. It’s going to be an amazingly small, intimate mastermind and you’re going to come out of that knowing a lot about how to earn more, how to invest wisely, and come away with a plan to take your finances to a whole another level and you’re going to meet some contacts, the 25 people are all very, very high-level superstars in the financial and business world. So, that’s the live event and then at the same time, the afternoon of April 21 which is a Saturday from 2 to 6 PM Pacific Time we’re going to have individuals, groups gather all over the world and this is free event via Zoom cosponsored by Robert Kiyosaki and 1Life Fully Lived and some good friends of ours and they’re allowing us to have this event for free so all the information for both of these events are at 1LifeFullyLived.org. That’s the number 1, 1LifeFullyLived.org and there’s all the information to get to our website for the free event and the live in-person event and they’re both happening in the weekend of April 21 and 22 of 2018.
Hal: Fantastic. All right. So, let’s dive into, you know, you mentioned that it’s about creating passive income that exceeds your monthly expenses and that’s when you are financially free essentially and if your monthly expenses are $5,000 a month, your monthly passive cash flow is $6,000 a month then your bills are paid and you get an extra $1,000 a month to play with. How did you – let’s get tactical and get real specific here because conceptually it’s great but people might be listening going, “Okay. I’ll be there for the game. That’s fantastic.” By the way, just to reiterate for anyone listening that this game is not just a fun game to play. It is fun, but it really is designed to teach you the concepts that are in the book, Rich Dad Poor Dad, and that have made Robert Kiyosaki so well known for helping people get out of the rat race, become financial free but, Tim, let’s hear your story. How did you get out of the rat race? Start wherever you want.
Tim: So, and one thing I want to add, Hal, is not only are they going to play the game that afternoon but they’re going to hear from Robert Kiyosaki themselves. They’re going to hear from David Osborn. They’re going to hear from Garrett. They’re going to hear from Jen. They’re going to get an overview of what’s going on there in Phoenix and what are we talking about and where’s the economy going and where are the best investment ideas? How can you better monitor what’s coming in and what’s going out? What’s left to invest? Okay. So, you guys, this is a golden opportunity for the Miracle Morning Community to learn the piece that scares the heck out of all of us but that’s one cool thing about this group is we know how to do it because we’ve done it. So, let me tell you my story. I was the kid in the back of your class throwing spit wads at you and not paying any attention.
Hal: I was the other kid that we were throwing it back and forth at each other. Yeah.
Tim: Hal and I were going across the room and like you were collateral damage. But I just didn’t understand what the periodic tables were going to do for me. So consequently, I barely graduated high school and at 25 years old I’m a part-time grocery clerk painting addresses on people’s curbs, so I could buy diapers for my two small kids. And from 25 to 40, I retired at 40 financially free and here’s what I did, you guys. It’s that ABC formula I told you about. I really looked at my A, how can I increase my income? How can I take my life from a $30,000 a year grocery clerk and then I started making $70,000, $120,000, $150,000, $180,000, $210,000, $300,000 and I did that because I got my real estate license and I started selling real estate. I cared when I was in the grocery business, the supermarket was Save Mart. They delivered sunshine service and when I sold real estate, I delivered sunshine service. I worked harder. I made sure that if you are going to sell your home, I wouldn’t overprice it. I had a quality fair product at a fair price and just cared about coming through.
So, my income increased dramatically and here’s what I did different. As my income went up dramatically, my expenses stayed low. When I was making $70,000, I was spending $30,000. When I was making $150,000 I was spending $40,000. When I was making $300,000, I was spending $60,000 and I took all that extra and I invested in two things. Number one, my continuing education. I saw every single great superstar at the time, Zig Ziglar, Jim Rohn, all the best, Brian Tracy, Wayne Dyer, just invested in all their products and tapes and just learning that lifelong learned. Went through Tony Robbins’ Life Mastery course. So, I invested in myself and I invested in my knowledge and purchase of real estate because it was what I knew the best. So, I learned a lot about investing. I invested in properties myself. I was extremely aggressive. I was lucky I was in California during a couple of booms and I sold, and this was not by accident. I sold 17 properties with 52 tenants in 2006 right in the Cali’s crazy market peak.
Hal: Yeah. How did you know that it was going to crash, Tim? Because I wish we would’ve known each other then, because you could’ve saved me from my – I bought at the peak and then I had to sell it for half off. But, yeah, so how are you aware that the crash is coming?
Tim: We literally tracked our multiple listing service. I was in a town called Manteca, California which by the way I’ve made my fortune at a town called Lard. Manteca means lard in Spanish. So, you could make it anywhere, folks. We track how many listings are on the market, how many new ones came on, how many pendings, how many sold, how many went expired and we tracked this and grafted every quarter. So, I knew in 1997 I went on a buying spree and just knew that things were under market and then in 2005 I could see the stock market they call it a blow off top when things are just too crazy and it’s just if anybody watched The Big Short, this was the period they talked about when anybody if you had a pulse you can buy real estate. So, Warren Buffet says, “Buy when everyone’s fearful and sell when everyone’s greedy and that’s exactly in 1997 everyone was fearful, 2005, 2006 everyone was greedy. So, I cashed out, moved up to the mountains. We built our dream home. It’s the only thing Tina and I ever splurged on and right now I’m looking out of this 180-degree mountain view and I’m just so blessed I live in an inspiring place in the middle of nowhere where I just get to hang out in peace and quiet and tranquility and then when I’m out with people, wonderful people like you, Hal, when we’re at our events and stuff, I’m just so happy to get out and be around people. Of course, I’m smiles.
Hal: You’re not at home in your cave so you get a little excited to be out and about.
Hal: So, real estate was your vehicle and I think it’s one of the most popular vehicles with so many people that are financially free. In fact, our friend David Osborn, that was the same vehicle that he used. I guess, what would you suggest for somebody listening if they don’t have any real estate investments, what would be a first step if they thought, “Yeah. I’ve got a little money to set aside or maybe I’ve got no money set aside but, gosh, I should start saving,” especially because the timing today is March 26, 2018. I better remember the date because it is my nine-year wedding anniversary.
Hal: Thank you. We’re recording this on March 26, 2018, and the real estate market and the stock market both experienced their longest run ups I think in history or something like that. They’re pretty historic, the runups that we’ve experienced and so a lot of smart people are saying that the next financial crash is going to be a bad one which for many people that scares. I think that most investors that are smart investors like yourself or Robert Kiyosaki they’re stacking away money and they’re going, “Okay, when the next crash happens, like you said that’s when everyone is fearful, that’s when you buy.” So, now is a great time to be saving money and preparing and it’s something I got to account for to buy real estate when the market crashes. So, what are your thoughts, I guess, on the coming crash and your advice for anyone listening on how they could get started in real estate investing?
Tim: My first piece of advice is go to 1LifeFullyLived.org and register for that event in April because it’s going to be amazing because we’re going to go in depth in all of this.
Hal: Yeah. And it’s free online and if somebody’s got the extra $5,000 they want to invest in their personal development, obviously they can go to the live event, right?
Tim: Exactly. But the free online, you guys, it’s going to be amazing and it’s worth your time and energy. This is you investing in you and you went to school, you learned a lot. The one thing you didn’t learn is how to earn, how to make, and how to invest and these are people. We have nothing to sell you by the way. We’re not doing this to, “Hey, here’s the next product to…”
Hal: There’s not a pitch at the end.
Tim: Yeah. There’s nothing further to buy.
Hal: Got it.
Tim: So, we just want you to invest in you and have a better future, so you could help us help those on the low-end gain theirs too. So, here’s my first piece of advice if you can’t be on that call is monitor where you are today. Take a hard look at it just like sometimes we got to get up and look at where’s our health? How’s our diet? How’s our exercise? This is taking a financial checkup of those financial ABCs. Do I have more month left at the end of the money? If you’re upside down, what can you do to increase your income? Then look at what’s going out every month. Where’s my leakage? How much are we spending? And then what’s left at the end of the month? And for so many of you, you have student loans and credit cards and car payments and stuff, how can you get rid of this debt and get on your way to the fast-track? I have a saying. When you reach your golden years you’re either going to hug yourself or curse yourself for the health and wealth choices you make when you’re young. I know that’s really powerful and it’s really scary, but you guys can do this and it’s just paying more attention. This is the business of your life. So, once again, what’s coming in, what’s going out, what’s left to invest? Monitor that. There’s a free tool called Mint.com.
Tim: And there are other really inexpensive apps for as little as $5 a month. You can really get a good handle on the simple math equation that is the backbone of the business of your life. So, now to answer your question about investing, Hal. I invested in an apartment complex last month, in a piece of an apartment complex. I’m looking at a timber operation down in Costa Rica that a friend of mine is doing that I think could be a huge home run. So, I’m always looking at new opportunities and I’m always getting opportunity sent to me because of the different worlds that I’m in. So, I’m able to see a lot of packages and, yes, I think we’re at the back end of the…
Hal: The runup?
Tim: Yeah. Of this particular upswing but I’d be putting some money aside but if something is a solid project, I’d get into it today. And to answer your question, if you’re just starting out and you don’t have the money, there’s a couple of other things I do as far as your continuing education. First of all, here are about three or four books that you haven’t read, and you should. Number one is The Richest Man in Babylon. I read that book no less than 15 times. It’s just such a good staple for learning the principles of getting somewhere with your finances. Richest Man in Babylon, I’d read a Wealthy Barber on how to play defense and how to – it’s not how fancy car you drive and all of that. It has nothing to do with this equation. Another one of my lines is defense wins championships and what I mean by that is the one who best monitors that simple equation of what’s going in, what’s coming out, what’s left to invest, the what’s going out is the piece that people miss and the reason I was able to retire at a young age is while my income went way up, we kept our expenses down. We lived really lean. I just had four cars.
Hal: You didn’t do what most people – four cars in the mid-80s?
Tim: Since the mid-80s, yeah. I would buy like a two-year-old car because you’ve seen me, Hal. I’m hyper, I’m active, and I move a lot. I’m going to trash it, so why go buy something new? I buy them two years old and I hold on to them for ten years.
Hal: Nice. So, you’re frugal, right? Frugality is the big part of your strategy and living below your means which we all heard that before but most of us don’t do that, right? We get our money, our check. We go, “Okay.” This is how much I have to spend, and I think that one of the most important lessons I learned or I think was when I read the book. I mean, it’s a common lesson but most Americans don’t do it and that is to say at least 10% of your income to pay yourself first if you will and invest in the future. You mentioned that you get a lot of deals coming your way. Well, you’re a seasoned real estate investor so if somebody’s listening and they have never bought real estate, obviously, an apartment complex probably out of most folks’ budget, where would be the place to start? Is it to buy a single family rental? Where did you get started and/or where do you recommend that a beginning real estate investor get started?
Tim: You know, I didn’t complete that thought. The first thing I do is go find the Tim Rhode or the other sharp investor you know that’s either your uncle, they live in your town, they’re a good friend of a friend and buy them coffee, buy them lunch. They’re usually not shy and if you buy them coffee or buy, better still, even a few beers and get them rolling.
Hal: They’ll talk about everything. Yeah.
Tim: Yeah. And just learn, just learn from those who have already done it and then I would find out especially if it’s a close friend or a relative, what do they invest in and if they put $100,000 into a project, would they let you be a flea on their back? And I have to do family members and stuff that throw in on my deals and I look for circumstance like that where you might be able to put $5,000 here or $10,000 there and then just look for small things that you do to put your money to work for you. Maybe it’s loaning somebody. I just recently loaned somebody $15,000 to get a business roll and then, by the way, don’t do it with your heart. Do it with your head and sign a contract and have some sort of collateral. If it goes wrong, it’s going to be their problem, not your problem. But, yeah, the first thing I’d buy like I have some young friends that buy a house, live in the house with like three or four roommates, get it all up and running and then next year do the same thing over again and over again and over again and then keep the ones behind you for rentals.
Hal: Tim, are you saying they move into a house and they fix it up and they have roommates to lower the monthly cost to offset it and then they go buy another house and then they rent out the house that they fixed up? Did they fix it up?
Tim: I have so many friends that are doing so many different… But one model is that is they buy something that maybe a bit rundown like a C plus home in a B neighborhood. I’d stay out of the low-end neighborhoods. It’s just up the…
Hal: Yeah. To find renters and good renters.
Tim: They have more tenants move out. Yeah. More problems and stuff.
Hal: Where should someone if they’ve got a little bit of money to put for a down payment, where does someone find deals? I mean, obviously, ideally you’ve got an agent out there that’s looking for you or if you’ve got your license it’s one thing but for the common person that’s not involved in real estate, again, I’m thinking about people listening that haven’t done this before, do they go to Zillow.com or Realtor.com or is there sites somewhere online they can go to look for properties for sale and what should they look for? I’m trying to think of…
Tim: Yeah. Well, okay, so there’s like there are all sorts of things along those lines. BiggerPockets.com is a wonderful website with a lot of investor knowledge there. I would google for an investor club in your area. There was one like when I was out in the Central Valley there was one there and I drive two-and-a-half hours each way and go to the Bay Area Wealth Builders meeting when I first started and learned from the pros and go hang out with the people that are doing it and get there in an hour early. These are the things that you’re a student of the game and I like to look for models of people who are doing the same thing I want to do because success leaves clues.
So, and I keep saying – if you’d notice, I’m saying the same things over and over. Put training wheels on before you get out and invest and maybe even do a mock deal like I would’ve bought this for this much. I would’ve tried to rent it for this much and just see what happens and look up a year or two later. And by the way, everybody’s at different stages that are here in this call. I’m talking to the 25-year-old that’s just where I was when I was just learning all of this. But one other thing talking to that 25-year-old, don’t be afraid to make mistakes. When you’re young, yeah.
Hal: You’ve got time to recover.
Tim: You’ve got time to recover and just believe in you and I’m thinking of my son when he bought his first house, he was in Reno in Nevada about five or six years ago and he really didn’t want to do it and he’s scared to death and I basically said, “Just sign that darn contract.” Not in those words. And he did, and he bought it for I think $150,000 and it’s worth $300,000 now. And by the way, since then, he’s been a fly on my back for three apartment investments and he’s glad he’s done each and every one of them.
Hal: How old is he now?
Tim: And he’s 35 years old and he’s a fireman and I’m trying to help him retire early. I want to say one other thing. His risk tolerance is a 3. My risk tolerance is 11 and now it’s probably about a 7 but when I was his age my risk tolerance was a 15. I go put stuff in escrow that I didn’t have money for yet and I just figured out a way to buy it. But because I had nothing to lose.
Hal: And at 25 you were making $30,000 a year and then 15 years later you’re retired. For anybody listening, I mean, what you hear Tim talking about is, A, he got training. He learned from people that had gone before him and that were real estate investors. He got around real estate investors, right, joining real estate clubs, driving out to the Bay Area from Sacramento to make it happen. So, I mean, that literally is you have to realize that if you want financial freedom, that’s the two-step formula or that the beginning formula or the foundation is you learn from other people that have done it and you get around those people. So, meaning read every financial book out there. Tim, you start to recommend at four books. I don’t know if you got through all four. Richest Man in Babylon I think was one. What were the others?
Tim: Yep. The third is David Osborn’s Wealth Can’t Wait. That’s an amazing book and the fourth is I love the book, The E-myth, and then think of that book. If you guys have read that book, everything I’m talking about is the E-myth for your life. This is the business of your life I’m talking about so take that book, read that book and then translate it. You’ve got a part-time job of when you get my age, 58 years old, 65 years old, 70 years old, you want to be out getting the good in the woods with the money behind you because you’re not going to have the same energy towards work and getting somewhere. You want all that behind you. And now if you want to change the world through something like 1Life or do whatever you can get to do, you have choices because you’ve got that passive income coming in and that’s my wish for all of you.
Hal: Yeah. I feel the same way. I think I’ve done an episode, a podcast a long time ago and I wrote an article an entrepreneur and I talked constantly to our mastermind, our Quantum Leap Mastermind, Jon Berghoff and I as mastermind about the importance of creating multiple streams of income. And this last year me having cancer, the importance of it took on a whole new meaning and a whole new level and that I couldn’t work for more than half of the year and I was either in pain or in bed or unconscious or hooked up to a chemo or in hospital or whatever and my income actually went up last year. I actually earned more without working. I don’t say that to be cool or impress anyone but just go back to the old Tony Robbins to impress upon you the importance of this. Don’t wait until you’re in dire straits and you wish you would had multiple streams of income.
And the way that I look at it is that in today’s economy, it is irresponsible for us to be reliant on one source of income. Because history has shown that, well, there are people during the last economic crash that the recession that wherein jobs they had been in for 20, 30, 40 years, they were fantastic at their work. There was no reason that they would ever get let go but because of simple economics, they were let go and millions and millions and millions of people were out of work. And so, the idea of having more than one stream of income, I’d encourage everybody to start on your second stream of income. If you don’t know what that is, it’s going to be real estate, whatever. Just make it a goal.
Like, I think one of our top goals every year should be add another stream of income this year and then the next year add another stream of income. And you might get to a point where you’ve got 5 or 6 or 12 or whatever streams of income and you’re like, “Ah. All right. That’s enough. I’m pretty well set,” but until you get there to where you don’t have any stress over that because you know, “Hey, if one of these dries up, I’ve got the other ones,” and for me, it’s ten books. Each one of those is a stream of income. I kind of engage my books as a rental property. It’s got to be similar equivalent to rental property then I’ve got the speaking and then this and that but our live events and all of that. I want to make one other suggestion for our listeners and it is Mobile Home University. Tim, I don’t know if – do you know – well, actually I don’t want to know name names. They might not…
Tim: Heard of it.
Hal: Okay. So, for anybody listening, I have two friends that one was able to retire at 30. So, Tim, actually he beat you in terms of age. One retired at 30. The other one is not retired only because he doesn’t want to retire but he’s taken an entire year off right now because he’s basically financially free. And the way that they both did this, they’re both friends with each other as well is they went to this thing called MobileHomeUniversity.com and I’m not an affiliate. In fact, I had to google it to figure out what the heck it was called. I can’t remember but they went to Mobile Home University. They bought one mobile home park each and then I think they were cash flow in like $7,000 off their first mobile home park. That’s actually one thing that’s really unique compared to residential real estate. Usually, if you buy a single-family home and you put down 20%, Tim, correct me if I’m wrong but I mean aren’t you typically going to cash flow maybe a few hundred dollars a month. Is that accurate?
Hal: Every deal is different.
Tim: Well, a lot lower climb. Yeah.
Hal: Yeah. And where this is where they bought one mobile home park and before you’re buying a mobile home park, you know that, okay, like it’s all listed and okay there are X amount of tenants and it brings in X amounts of dollars per month and my mortgage on it would be this much. So, you literally know before you buy it so on day one when I sign that deal, I’m going to be making whatever 4,000, 6,000, 10,000 per month. So, their first home mobile park they averaged about $7,000 per month and they did it. They probably invested I don’t know how long, six months or a year and learning how to run a mobile home park. I think they both handed it off to somebody else, the company, the management, the property manager but then they just did, went and bought a second and then a third. And if you do the math, they’re averaging $7,000 in cash flow per mobile home park. Three mobile home parks later that’s $21,000 a month cash flow and their expenses are not $21,000. So, Tim, based on your ABC formula, the amount that’s going out every month is less than the $21,000 or I think their second mobile home park got them roughly 14,000. I think that was above their expenses. So, they were basically able to retire in a year.
So, for anybody listening, if you’re seriously interested, go to MobileHomeUniversity.com and check it out. I have two friends, very close friends who I trust and love and would not stir me wrong and we’ve talked in depth about what they did and for me, I just realized it’s not my thing. I’ve got the books and that’s kind of my focus versus going into the real estate piece but, yeah, for anybody listening, that is also an option and it’s a very good one. One thing that’s unique about mobile home parks as well and it’s funny, whenever I believe in something, I sound like I’m selling it, but I like getting the skin in the game here but with mobile home parks, they’re kind of recession-proof because low-income housing when the economy crashes it becomes more of a necessity but it’s always a necessity. There’s always a need for low-income housing and especially when the economy crashes if they’re even more of a need for it. So, anyway, sorry we got off on that tangent but let’s wrap this up, Tim. And again, remind everybody. It’s April 21 and 22. This is the world record, the largest CASHFLOW collective gaming in the history of humanity and I can tell people where they can get the details and signup for this?
Tim: Yep. Hey, thanks so much for having me on, Hal. I really appreciate getting out to your Miracle Morning listeners. I feel like we’re cousins in a mission to serve and I really appreciate the opportunity. Go to 1LifeFullyLived.org, the number 1LifeFullyLive.org and thanks again, Hal.
Hal: So, you have the number 1LifeFullyLived.org and if you’ve played the CASHFLOW game before, you already know how great it is, how fun it is so this would be a cool thing to be a part of. If you’ve never played the CASHFLOW game, you’re in a for a treat and a treat that can literally be the linchpin, the key or at least the starting place to your financial freedom. Achieve Your Goals podcast listeners, thank you for tuning in to another episode of Achieve Your Goals podcast. This hopefully will help you achieve your goal of financial freedom. And I love you, I appreciate you, Tim. I love and appreciate you too, my friend.
Tim: Hey, thank you so much, Hal. Hope to see you soon and thanks again, Hal.
Hal: You got it, brother. Talk to everybody soon. Take care.
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