Finding the best financial literacy instruction is one of the most overlooked things today. With most people simply putting their money on banks, the power of finances is not truly maximized. Rondi Lambeth talks to Tyler Bossetti of 0 Percent to share his work on guiding people on getting around huge tax payments and accessing low-interest capital for successful business scaling. He also details how they invest in real estate while taking advantage of credit, as well as the power of cryptocurrency in today’s digital world. Tyler narrates a few important transactions he has done in the past to underline how these financial strategies work, underlining the power of letting money actually work for you.
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Tyler Bossetti: Securing Your Money Through The Right Financial Literacy
I’m bringing to you a very special guest. Someone who worked with him named Kendra introduced us via Instagram. I always like having interesting and different guests on the show. I checked this guy out and checked out his website or social media. I thought that he’d be a good fit for the show. I hope you guys enjoy this as much as I’m going to. Tyler Bossetti, thanks for coming on this show with me.
Thanks. I appreciate you having me here. You said I’m interesting, so that’s good that I’m interesting enough for you to be on here, and I appreciate the opportunity.
Did I get that right? Was it Kendra that introduced us?
Yes. She’s a part of our team and she said there are a lot of synergies as far as what you believe in and what we do as a company. I did a post, “I need to start getting on more podcasts. I like meeting like-minded people and talking about similar things.” I appreciate you having me on.
Let’s get into it. Tyler, what’s your company?
We have 0 Percent. You can go to 0Percent.com. I have a business partner, his name is Jeff. Our main focus and mission is financial literacy. We do a few different things. We have a few different consulting programs where we teach people how to get access to credit and low-interest capital to scale their business. Our client avatar is somebody that’s looking to start or scale a business using other people’s money. We have two hedge funds, a crypto and a real estate fund. Our whole focus and mission as a company are to help people become empowered through education, information, and then being able to provide them with action steps through our programs, and be able to say, “You can get access to credit to grow your business, to grow your income, to then make proper investment decisions and make sure that you are compounding your income and compounding your wealth through our hedge funds.”
Somebody tried engaging me on Instagram on a Dave Ramsey post, which I didn’t even want to bother. The person who runs most of my social media asked me to respond and I’m like, “No.” She ended up responding to this person because I didn’t want to get engaged.
Dave Ramsey is the devil. That’s what I hear.
He’s a very smart man. In my opinion, he’s a hypocrite. He tells people not to go into debt, yet most of his money is made by people going into debt. Real estate agents in Churchill Mortgage.
The main point is probably what you believe in. What we believe in is 78% of people are paycheck to paycheck. It’s super easy to say that debt is bad when you apply it to the masses. When you say, “80% of the people are going to get this message that I’m putting out there because their life is in shambles because of debt.” There’s a difference between a debt being good and being bad. If you can move over that bad debt to low-interest or 0%, which is the first reason why you use other people’s money in the first place which is to plug the holes that you already have, then it’s super ironic. Not that we need to keep talking about him, but he lists his house in Tennessee for $16 million. That was the final laugh for me. I’m like, “This is incredible. People are going to eat this up.”
One of his co-hosts or co-authors was supposed to be on my show. Unfortunately, they had a family emergency, so they weren’t able to come on. They’re going to reschedule and come on the show because I’d love to have that on there. I don’t disagree with the message because there are some people that should not have debt. I call them creditholics like alcoholics. Alcoholics should not be hanging out at a bar and should not have booze at the house. That doesn’t mean that all alcohol is bad, even though it is bad, it is poison. In moderation, you can manage it. Debt though should not be considered alcohol, where it’s all bad poison. You can use it to become very wealthy. Let’s get into 0 Percent. How long have you been doing that, Tyler?
I have a five-year background in mortgages. Here in Columbus, I was a part of a super quick-growing team in the mortgage industry. I met my business partner a few years ago. It was one of his first consulting clients in one of our core coaching products. In the first couple of weeks of that program, I’m like, “He’s got something here. I want to be involved somehow.” I remember sending him an audio message saying, “I want to get involved somehow.” I remember it was a Labor Day weekend. Our office was closed for the mortgage side on Monday. I’m like, “I’m walking in on Tuesday. I’m going to quit. We’re going to partner up and build something.”
I didn’t know exactly what that was. When I came in, I started assisting him, coaching our clients, and being able to leverage my real estate background. I was already doing a few deals myself on the real estate side. We were able to start plugging that in and teaching our clients and our audience, “You can use credit and other people’s money to scale your business or get into eComm.” My focus with credit is building wealth. There are all these different avenues now with eComm and crypto, this and that. At the end of the day, true wealth is built by building a highly profitable business. By building it, you put that money into real estate. As the result of that, we’ve built a sizable audience in a short amount of time, but we still feel like we’re 1% into it. It’s been cool.
I was checking out some of the posts you had on Instagram. It was pretty cool. You had some information on there. It looks like you’re doing some credit repair as well.
We do some credit repair, but we’re taking a big shift from that industry. We’ve done a ton of market research and credit repair. We’re only offering it for our consulting clients that come in. We want what I call the foundation of their finances, which is credit, to be optimized to be able to go get the capital that they need to grow their income. We started going away from our core belief as a company, which is educating. Instead of us fixing people’s credit, how about we build out a digital product? All the information that we have up here and processes for us to build a big department. The market research shows that it’s a declining industry and there are many regulations with the FTC. All this nonsense and some stuff we were talking about before we start. Let’s educate people on how they can repair their own credit with a super low ticket. Not to have anyone take offense with this, but most people have bad credit and bad financing. We didn’t feel right charging a premium price for something that is a “very gray area” to be able to do that instead of, “This is how you can repair your own credit.” We believe in information and educating people on how to do a shift on their own.
A lot of people who are reading this are probably thinking, “Why in the hell is Rondi having somebody who does credit repair on his show?” I’m in real estate, you’re in real estate. I’ve been doing credit repair for many years. A couple of hundred thousand people have gone through it. I do credit education and financial education. It’s because I don’t have the scarcity mindset that there’s only so much business out there. There are over 300 million people in America. If you look at the numbers, about 100 million of them have credit issues of some kind. It doesn’t mean that they all have bad credit, but they have credit issues. There are 100 million people for us to split. You take 50 million, I’ll take 50 million. There are not very many education companies out there, which is what we do. We’re a financial education company that happens to have a division that does credit repair.
It’s the same thing for us. We would much rather somebody pay us for a much higher ticket product to teach you about finances and credit, probably a lot of similar stuff than what you guys are doing. As a result of that, we built out an internal team to fix your credit along the way. For the masses that are coming to us on social media, our time is going to be much better spent on building out a digital product and course that they go through, “Here’s a one-time price. You’re going to get a ton of value going through that. If you want to take action on repair on it, here are all the resources you need.”
You’re fine with that. What I have found over the years of doing it with hundreds of thousands of people is they’re going to buy the course, which is awesome, and they probably won’t do anything. Most people will not fix their credit at all. They don’t do it because they don’t know how, so you have a course to teach them how to do it. That’s great. How are they going to handle the first time they get a letter from Experian saying, “We received a frivolous and suspicious letter, and we’ve turned it over to the authorities.” That letter usually scares them off or if they do get no response at all.
The FTC says that the average person with simple identity theft takes over 1,000 hours to fix their credit. For us, it takes about twelve minutes to fix the identity theft file. It is super easy if you know how to do it. Brain surgery is not easy, but if you know how to do it and you’ve done it thousands and thousands of times, it becomes pretty routine. I like to see that you’re doing some education stuff and with the background in mortgage, you probably have quite a bit of education on how credit affects people. That’s good. Let’s talk about your real estate hedge fund.
It’s more of syndication deal by deal. As of now, we are at about $20 million assets under management. All the deals are in Columbus, Ohio. I kept it exclusive within our consulting program where they’re getting access to let’s say $50,000 to $150,000 of 0% or low-interest capital to scale their business, even if it’s a brand new business. If they have any leftover, “I’m buying a property at 123 Main Street here in Columbus, Ohio. I’ll pay you out of a 12% to 20% preferred rate of return. Here’s all the data on the project. I’m buying it for $100,000 or $300,000. I need X amount of percent work done to it. Here are all the comps and the data.” When the project’s finished, “Here’s what your return is going to look like.”
Our goal is to get that from $20 million up to $50 million. The housing market has been crushing it, especially in cost-effective markets like Columbus. I brought on a new development team. I’m paying out on debt. There are a few ways to pay people out, “You give me X amount of money. Here’s your preferred rate of return. You give me $100,000, I’ll give you 12% to 20%,” whatever that is in terms of the deal. Eventually, I’m going to be bringing on where we’re now having a development team where we can develop raw land or getting to bigger deals. I’m going to be focused on small to midsize 10 to 40 units and start giving out some equity on those deals. I don’t want to have my hands tied behind my back where I have to bring on a KP to cosign on the loan. I was willing to pay out much higher returns on the frontend to scale the portfolio. When the bank says, “What’s your net worth?” I don’t need a cosigner. I’m giving out this equity because these are people that have invested with us the last couple of years, and our minimum requirement is on the higher end.
Is the minimum $100,000 to get in with you on one of your deals or is it more than that?
I have it much lower, around $25,000. I will go through a very strategic vetting process with them to make sure that they are a right fit for that. They’ll go by the end of the year. It’s at least six figures to come into those deals. It’s bookkeeping and all that, as I’m sure you know. It’s like we’re doing bigger deals. We’ve got to get more capital.
We won’t buy anything less than 100 doors and less than anything $10 million because we found that it’s the same amount of work, if not more work, for smaller deals than big deals. What’s interesting, and you probably experienced this, is the people that give you $100,000 or more, they give it to you and you never hear back from them. They get their deposits every 90 days. I never hear from them ever. It’s rare that we hear from them. We send them monthly reports and stuff, but the people that give me $5,000, it’s like, “How is my money? Can I get it back?” Yes, there are some SEC regulations in there. There are quite a bit of regulations that require some of $100,000 minimums. It’s difficult to deal with people who put a couple of thousand dollars in. It’s very interesting. The more money they give you, the less you hear from them up to a point. That’s the other thing. We don’t let our members have voting rights and we don’t let people put all the money in. We’ll break it up over a few projects.
I couldn’t agree more, and that’s what I’m starting to recognize from a growth standpoint the last couple of years. I have 25 active projects and all of them are 1 to 10 units. I have a single-family home over here getting rehabbed, there is a 6 or 7-unit over here. It’s not the scale that you’re at over 100-plus units. That’s not going to pique your interest, but I had a realization. I’m like, “I’ve got to get these guys that are developers that built this team and have decades of experience. I got to convince them somehow to take on my deals with no track record in the small to midsize.” They see the vision of what we’re doing and whatnot and create a rapport. I had that realization while driving around. I’m like, “What am I doing?” Raising money to flip a property that you’ve got for $200,000. You need $50,000 from somebody and it’s worth $400,000. It’s more difficult than I said, “I’m going to pay you less returns on a twenty-unit. You’re going to own 5% of it or maybe you’re not going to own any of it.” People like see bigger numbers. I don’t have 25 properties over 60 units getting rehabbed. I got 1 or 2.
We have six properties, $95 million so far, somewhere in there. I have three properties of that six. It’s so much easier when you say, “We’re buying this $15 million apartment complex. It’s 400 doors, cashflow is this. We’re paying 6% preferred and 6% bonus at the end, total of 12%, $100,000 minimum, take it or leave it. We’re raising $3 million or $15 million. Do you want in or not?” That’s it and that’s our raise. These hard flips are hard to raise as you know. My partner, Corey Peterson, The Big Kahuna, that’s what he did. He’s constantly doing flips. I did buy and holds and single-family. All of it is great. Everybody should start somewhere. I did see on your Instagram page some cool flips and then some value-added properties.
Tell me about one of your deals that you use credit. I did see using business credit, which we have a business credit course. We teach people how to get business credit and then use that to buy real estate. Use your business credit cards for your down payments for your properties or whatever. Tell me a story on how you’ve used credit to start one of these properties. Not even a unicorn because I’ve seen so many of them on your page that I know are not unicorns. Give me one of your unicorn stories.
Real estate and any type of venture most people are like, “How do I get started?” There’s all this and this going on. That’s the biggest thing I always try to drive home with people is just get your first deal. You’re going to figure out the due diligence. You’re going to get burned, lucky or learn here. That’s the biggest thing that I always try to reiterate to my audience and people looking to get started. We got to get the first one. The best thing with money is if we can ever use anybody else’s money, then you’re mitigating your risk. Most of the time it’s difficult, at least for the first couple of deals for you to make actual good money, especially now more than ever in real estate considering it’s a hot market.
For me, that’s exactly how I got started. The five-year background and mortgages. I started realizing, “Credit is super important.” I saw 7,000 credit reports, pulling people’s credit every day. Once I started understanding how you can leverage business credit and pull cash out of credit cards or from lines of credit, I was like, “I wonder if I can 100% finance a deal without having to convince a seller to do seller financing or do a lease option or do this fancy Airbnb arbitrage.” What I quickly realized was, “Let’s go get some business credit cards, liquidate the money out of them,” where I can have Plastic or have someone invoice me for a service and then wire that money to the title company.
Most of the time, it’s pretty difficult going to a residential lender to verify those funds or assets. What I did was I went to a hard money lender and said, “If I can come up with 20%, 25% down on this deal, can you finance the rest of it and cover the construction?” To throw out some numbers on the first deal I did. I used business credit for a $100,000 purchase. They needed 20% down and we were all in at $180,000. The rehab was $80,000 and it’s sold for around $250,000. I went and got some business credit cards. I liquidated and got the $20,000, spent the $20,000 to the title company they confirmed. The hard money lender disbursed the money 48 hours later.
It is a little bit more expensive upfront, but I didn’t have to raise money. I didn’t have to use my $20,000 of cash. I had some leftover to pay for a little bit of the $80,000 construction and then finance the rest of it with that hard money lender. That $180,000 deal was covered using everybody else’s money, the business credit cards, as well as the hard money lender. Now, I have $70,000 of gross profit that I can 1031 Exchange, roll over into the next deal. You have yourself a compounding effect in terms of scaling. You could do the BRRR strategy where you refinance out of it once you have tenants in there. Anything leftover, you can roll into the next down payment, never touching your cash.
I bought some crypto for the first time. I bought a little bit of Bitcoin, $500, not crazy. It’s up $87, which is phenomenal. I did buy a lot of ADA, which is Cardona. It was interesting seeing how that works, how it fluctuates so much. Bitcoin still is not a true currency because there’s no computer strong enough that can compute it once it starts getting traded as currency. What the engineers say is, “We’ll figure that out when it comes to that point.” It’s interesting to watch that go from nothing and then you see someone do a tweet and goes crazy. There is a lot of speculation. One of the reasons I like real estate so much is it doesn’t matter what Elon tweets, my real estate departments are going to stay the same value.
Trust me, I have the same mindset as well. I believe that in order for people to be wealthy or successful, to maximize your income potential, you had to start with a business that provides value to the most amount of people as possible. You can be super niche down in this one little area, but you should have a valuable business that’s profitable. It’s similar to what we’re doing. You have high margins, it’s digital products and applicable to everyone. The second piece is, how do we mitigate our number one expense, which is taxes? You do that through real estate. There’s no other asset class that says, “X comes in, X goes out.” If you make $1 million in business, goodbye to half of it, unless you’re protected in other lucrative ways.” Crypto is the best asset performing class in the last decade. I’m happy to touch on that conversation a little bit more. You made a good decision with Cardona.
Now that I learned about Cardona, I didn’t even know what it was until a few weeks ago. I like that you said that taxes being our number one expense in life because people don’t realize that. What’s crazy about it is it’s what you can control. We can’t control inflation and the real estate market, even electricity and gas and all that. We have a say in how much taxes we pay and it’s crazy how many people dig a hole, stick their head in it and ignore the fact that their business partner, Uncle Sam, takes half of what they make, puts nothing in, control of everything and there’s a way to divorce him so he gets nothing.
With you having a lot of success and whatnot, it’s figuring out, “How can I give the most amount of value to people?” I always try to come back to the data and the facts of most people are broke. They have zero money because of high-interest debt. That’s why we use credit. That’s why we have to get our finances aligned is to plug the holes. You’re not going to go from step 1 to step 5 if you’re leaking holes left and right with your finances. What can we shave back? I’m the first person to not be a peasant and to act like you need to pinch your pennies. The fact of the matter is you have a lot of credit card debt. You’re overspending. How do we mitigate that expense? The second piece is as you said, the taxes. Our number one expense and highest expenses are going to be taxes. We’ve got to find a way to plug that. We then can optimize. Once we’re optimized, then we can scale, grow a business, be profitable and buy an investment property. If you don’t understand those two things, at least get a good foundation built, then it’s 3 steps forward, 5 steps back.
I agree with that with one exception. I’m going to try to describe something you’re saying. You said that the number one reason they are in financial trouble was there because they’re in credit card debt. They’re in financial trouble because they spend too much money. It’s not the evil credit card. It’s they’re spending too much. Quite frankly, there are only five states that even have basic financial education, yet all states have required sex education, even down into elementary school, but they don’t teach us anything about money, credit, taxes, nothing. I truly believe it’s done on purpose because if we knew how taxes were calculated and how we can legally pay less than what we think we have to pay, we all have to pay taxes. There’s no way around it. It’s called tax evasion. It comes with free room and board and free health care. You’re guarded by people with guns. It’s a perfect place to live.
There are ways to not pay taxes. I did a consult with a gentleman, a super cool guy. He has been a school teacher for most of his career of 30-plus years, makes $130,000 a year. He pays a tremendous amount in taxes. Within a few minutes, I said, “We can eliminate about $30,000 of your taxes every year by doing a couple of things differently.” He’s hired me to fix his credit and reduce his taxes. We’re going to eliminate his credit card debt and his car loans all by saving him on the taxes. What we found is if they sit down with us and wipe out 50% of their tax, we can then take that, put it towards credit card, debt, protection, and real estate investing, just like what you’re doing, but it starts with taxes. One of the things he said was, “My wife and I go out to dinner a lot.” I’m estimating he’s probably spending about $1,500 or $2,000 a month.
That might seem a lot and it is a lot. If you go to Carl’s Jr. for two people, it’s like $22 is what I’m told. I don’t need that crap. If you did go to McDonald’s, it’s expensive. You sit down where you have to leave a tip, it’s $40 to $80 tip. You do that twenty days a month, it gets pretty expensive. One of the things I told him was, “Once you start your home-based business, we can start writing off a lot of those meals.” I’m not saying live on beans and rice, and shut off your electricity and turn off the internet and the water heater to save $0.30. Let’s change what you’re spending the money on and how much you’re paying the taxes. I like the fact that we’re agreeing with a lot of this stuff.
Tell me about crypto. I know some about blockchain because my girlfriend is building software to balance the electrical grid through blockchain. I know a little bit about blockchain from listening to her. I know what Bitcoin is. I didn’t even know what Cardona was. How are you investing in crypto? It is different than blockchain. It’s crazy how many people think blockchain is crypto, but it’s crypto on top of blockchain, the way I understand it. What are you doing to invest in crypto?
We have a crypto hedge fund that was started a couple of years ago. It’s doing very well in the last few months. We are in a bull market with crypto. You mentioned blockchain. One thing that I don’t think people realize is that blockchain is probably going to have more of an impact, if not significantly more impact on people’s lives than the internet. It’s going to be integrated with every single area of our life and it’s already starting to happen. Before I dive into what I’m doing, people need to understand that it is the best asset performing class in the last decade. There have been tons of studies that show that if you compare a portfolio that is typically 60% stocks and 40% bonds, that’s a normal portfolio that people set up with their financial planner, versus a portfolio that has at least 10% of their net worth in cryptocurrency, that is going to outperform the 60%, 40% that we’ve been following in the last century since stocks and bonds and all this stuff has been available for us.
If someone is stuck on, where do I get started? How much money should I put into it? Get educated. Watch some YouTube videos. Follow my business partner, Jeff and I. We try to put some value out there for you guys to see. Start with what you’re comfortable with. That should be 5% of your net worth. Go as high as you wish, as you become more educated, depending on your risk tolerance and whatnot. Based on what I said, if you’re educated and you understand where that money is going, that’s at least a minimum of 10%. What I’m doing is I’m being very aggressive. I’m riding this bull market up and I’m going to make a ton of money on the way down.
You understand how to make sure that you are mitigating risk along the way. About 60% of my net worth is going into crypto easily over the next 6 to 12 months. We’re going to make a lot of money on the upturn and downturn. I’m going to have to pay some lovely money to the IRS, but the profits from there, I’m going to go put over here in the real estate. What most people don’t realize is any asset, whether it’s money you have sitting in the stock market and you can get a security line of credit or an investment property that you own free and clear, and you can do a cash-out refinance or a home equity line of credit, depending on what’s going on with lenders.
The last thing I was waiting for with crypto to be a real big advocate of it is leverage. Being able to say, “I own X amount of Bitcoin or X amount of this coin. Can I go borrow against this?” Can I borrow against it and deploy it back into the asset class or go buy more real estate? There are different wallets now like Celsius, BlockFi, where not only can you earn interest of that money just sitting there. Now it’s become a store value. Instead of these big institutions, Elon Musk, and I’m very confident Apple will probably come out and say they invested back in January 2021. They haven’t made that announcement yet, but they probably did. There’s no reason for them to have hundreds of millions of billions of dollars sitting in these lousy bonds that are very low-performing.
We printed off over 30% of our money supply in 2020. We approved a $1.9 trillion stimulus. People don’t realize that these big institutions have hundreds of millions or billions of dollars sitting in the US economy growing at a 2% to 3%. They know the moment that pandemic hit last 2020, our inflation is projected to go up to 15%. If your money is not growing at 15% over the next 12 to 24 months, good luck. Whether that’s in your business or back in the real estate, if that’s not in crypto, I don’t see any other asset performing class that’s going to outperform those three. That’s what we’re seeing in the institutional money moving in, which is why we’re seeing it drive up the value of Bitcoin and Ethereum, Cardona. Every coin is going to be crushing it over the next 6 to 9 months.
You brought up some interesting points there. I don’t think people realize that 30% of the money that’s in circulation, the US dollar, has just been printed in the last few months. That’s a significant amount of all of the US dollars in the entire world that has been printed. The last time I remember, the IRS collects approximately $5 trillion a year. They just spent $1.9 trillion. Another stat is they’re going to charge the average American $5,780 and then give some Americans $1,400. I would like to ask anybody who’s reading this, if I charge you $5,700, would you send me $5,700, I’ll send you $1,400 back? Fortunately, I won’t be paying for it. I’m not going to be paying $5,700. My children won’t be paying for it. People who follow me won’t be paying it. Probably you won’t be either. It is the people that dig a hole and stick their head in who’s going to be paying it. Unfortunately, that’s middle-class America who’s going to be paying that $5,700, and their kids and grandkids are going to be paying it. It’s going to squeeze them out.
It’s the middle-class squeeze. You have people that are going to be panicking and be emotional, “What do I do?” You have to get assets, whether that’s in real estate. You’ve got to get into crypto specifically to mitigate all your risks and get into Bitcoin. I’m not giving people financial advice here necessarily, but at the end of the day, you’ve got to move your money out of the banks. All the data is showing that it’s going to be 15% inflation. I don’t think people quite comprehend that. The US dollar has also dropped to 97% over the last century as well. Each empire that’s been built and dropped overnight like the Roman Empire or Venezuela or Brazil, any economy since the existence of time that has Fiat currency on average, around 200 to 250 years, will plummet. They will go into hyperinflation and we are entering into that realm with the United States, which is going to be very interesting.
People don’t realize how intelligent our founding fathers were. They were against Fiat currency. If you don’t know what Fiat currency is, it is when a government issues a Fiat and says how much it’s worth. A dollar bill is worth a dollar bill because I say it’s worth it. It’s not backed by anything other than the American credit system, which is pretty bad because they’re not paying all their debt. I don’t know if you know this, but the United States filed bankruptcy in 1976.
We have a lot of debt coming due too from my understanding.
The United States is a corporation with a president, we’re the shareholders, Congress are the board members. In 1976, we filed for bankruptcy. That’s how we got off the gold standard. It was because these other countries were demanding, primarily France at the time, the US give them the money owed via gold. Nixon’s like, “No, we’re going to file bankruptcy. We’re not going to give you any gold. Here’s an IOU.” Let me ask you, are you buying crypto in a Roth IRA or a SEP IRA?
What I do is I have it mainly funneled through the hedge fund. We reinvest a lot of the profits, literally all the profits. We’re mitigating taxes and we believe in it long-term as well. This bull run, we probably have about conservatively 6 to 9 months, best case scenario is probably 9 to 12 months after the bull run. This is going to make people a lot of money and lose people a lot of money. One thing that you said as well is the computer with the Bitcoin situation. Technology is not quite there yet. In about the next 2 to 4 years when we go back into another bull, that’s going to be the biggest growth.
It will be the industrial revolution of crypto in the next couple of years. If people can start educating themselves, understand how to use these different wallets, move money in, buy it through an IRA or these different lucrative tax accounts so you can mitigate and not have a taxable event. This is like that nice little testing period. You can make a ton of money and lose a ton of money, no matter what’s happening in any market. I believe that in 2 to 4 years, technology will catch up. The whole world is going to know about it. Three to four years ago, it was like your crazy talking about Bitcoin. Now everyone is like, “I’ll throw $500, $5,000 or $50,000.” This next go around, it will be everyone. The banks are now filing stuff to be able to have the rights to tell their clients, “You need to start being in crypto.” Now more than ever, get educated and figure out what strategy works best for you.
People don’t realize that you can set up a self-directed Roth IRA and do SEP IRA. If you’re a business owner, you can put up to $52,000 a year into your Roth IRA, even though most people are told it’s a limit of $6,000. If you do it through what’s called the backdoor IRA, if you’re married, you can do $52,000, $26,000 per person. It’s a great way to buy the crypto in there. It’s 100% tax-free through your Roth.
You can borrow from it and have them send you money for real estate.
You can buy real estate in your Roth. My real estate is through a Roth. It’s non-taxable money. I love it. I took $1 million from the sale of a home, which was tax-free because of the way it was set up. I started buying real estate and apartment complexes. As I said, I’m up about $33 million and then the total, Corey and other partners and I are about $95 million. I want to go back to blockchain because you said it’s going to be part of our life. I was in an event and I go to events every year. Sometimes I go speak and they’re primarily credit events that I’m speaking of that I go to a couple of years. There are lobbyists, congressmen, members of the FTC to TCP, Consumer Protection Bureau. They changed their name, but there are members. It was CFPB and then they changed it to something. I don’t know if it’s back to CFPB, and then there are attorney-generals and a bunch of credit repair owners and speakers from FICO and Experian and Equifax.
When I was at this event, the credit bureaus, the credit reporting agencies are fighting, putting all the information on blockchain. They don’t want our credit information on blockchain, but the banks are forcing them. What I suspect, and these lawmakers are suspecting and some of the other people that were at this event was we’re going to be able to control what the bureaus give to other people. We can start charging the bureaus for our information once it’s on the blockchain. The bureaus make a considerable amount of money, hundreds of millions of dollars sharing our information with other people. When you go to OptOutPreScreen.com, you’re opting out of them being able to share your information with blockchain. We’re going to be able to go in and turn it on and off. It’s similar to freezing your credit file. We can turn it on, but get paid from the bureaus sharing our information, which is going to be pretty cool when that’s up and running.
It’s going to be able to probably catch the things that are inaccurate versus accurate.
It will prevent a lot of those inaccurate things from being put on there, all the mistakes and the garbage that goes on credit reports.
It probably hints to your fourteen years of experience. Bureaus are private entities. They’re working for their own interests and they’re not making money reporting that information. They’re making money selling your information. The next decade or for our lifetime, it’s a game of information at this point. Facebook, Google, Instagram, TikTok, all of it, everything is a game of information at this point
I was talking to someone and we have several hundred thousand people in our database. I have all of their information, birthday, Social Security number, credit cards, how much they make, where they live, what kind of house, what kind of car. Not Facebook data, but I have a lot of data. I was telling this lady, “You could sell that for millions of dollars.” Businesses will buy it and it’s called renting it. I could rent that information. It’s a term that used to be selling, now it’s renting. It gets around some of the laws, but I was saying she has all this data. That’s what we do. We gather data and then we move them through a funnel. It’s not just credit repair.
My success story is that they come in for credit, we fix their debt, we fix their taxes, we get them proper insurance. We start them investing in and end up investing in an apartment complex with me, and move them through that funnel. All the way through is education. I did see some properties on there. You got that one, but you use your business credit. Did you sell it for $250,000 or you thought you were going to sell it for $250,000? You bought it for $100,000, and then you got $80,000 in repairs. You use the credit card to do it. Did you end up selling it for $250,000?
I ended up selling it for $250,000, and that’s when I learned about taxes and 1031 exchange. That’s when I learned about we should probably be keeping assets. $70,000 is cool but at the end of the day, you keep about $25,000, $30,000, $35,000 best case scenario. You can go to your tax counsel and say, “Find a way to write-off as much as possible.” That’s one thing too. I like to be very transparent with people. I’m not saying you can’t do it, but it’s rare for you to find that first home run deal, use credit, be able to raise private money, and have the best terms possible, not get your credit pulled.
If it requires you to use hard money and it requires you to pay a little bit in taxes, you’ve got your foot in the door. You figured out how to find deals, how to uniquely fund the deal, which contractors were good and suck, and how to disposition the deal, how do you learn and you do it again. I learned that I should have had an inspector in there in 48 hours, not after the remedy period. I screwed that up and I didn’t renegotiate. I should have paid $103,000, not $100,000. That extra $3,000 would have covered my closing costs. When I refinance out of it, my payment goes up to $5,000. I keep $3,000 in my pocket. It’s all those little things. To answer your question, I learned very quickly taxes, 1031 exchange and a lot along the way.
People don’t realize how valuable that is. Even if you don’t make money or you lose money, as long as you learn something from it, it’s like going to college. At least you learned something that you can now apply the next time. Even if you lost a little bit of money, I’m not recommend that you should, but you don’t have to do these homeruns. I see that where they want to do a homerun. People call me and they want me to teach how to them do business credit so they can buy $1 million apartment complexes like twenty doors. It doesn’t work that way. Let’s do one door.
I saw this stat. I was at an event. I go every 90 days. I meet Kevin Harrington and about another 100-plus entrepreneurs in Florida. There was one of the speakers there and she was breaking down all the foreclosure. This was in the last week of January and 1st week of February 2021. Forty percent of the homes in Southern California are in foreclosure. They’re in the status of they can legally be foreclosed on, but because of the moratorium, they can’t be legally foreclosed on and that’s going to happen at the end of the month, March 31st, 2021 when that expires. Biden made a mistake by not letting it expire because then he could have blamed it on Trump. Now, he’s going to have to take the blame because it’s on his watch.
Here’s another crazy stat, 33 million duplexes and fourplexes are in foreclosure or at least 90 days past due. When that starts hitting and the foreclosure moratorium is removed and those homes start going into foreclosure, there is going to be a huge opportunity to buy a duplex, fourplexes, 6s and 8s because over 30 million are 90 days past due. That’s a great place to start out with duplexes, fourplexes, 6s and 8s. I don’t recommend moving into one side of it, but some people do that. It is a strategy.
I don’t necessarily want to live next to my tenant, but you can do it if that’s your only way of getting in. If you do that, I would recommend you don’t let them know that you’re the owner. You pretend to be the project manager or whatever. I have a friend, Jorge Bueno, and he’s got thousands of doors and that’s one of the things he does. Jorge will buy these $15 million, $20 million apartment complexes. As you can tell from the name, Jorge Bueno, he is from Mexico. He will move in as the maintenance man. He lives there for a couple of months. He figures out where all the problems are and then those are the leases that don’t get renewed. It’s pretty interesting what he does.
That’s why there’s the maintenance order. He’s like, “This is what’s going on with the unit.” I love it.
That’s some serious sweat equity. He lives there. He goes back to his big mansion and hangs out with his bride. It’s an interesting strategy. That’s something to keep in mind. All these duplexes and fourplexes are coming due soon.
You don’t learn until you start doing it. Most people think that what the 2-unit or a 4-unit. They see a bigger sticker price and then it scares them. That goes back to our philosophy of what we’re talking about. If you have some money that you’re deploying into the deal, it’s great. Start saving and getting ready for it. That’s the whole principle of credit. If you can use other people’s money to cover that down payment and you realize that fixing a bad smell is probably just carpet and some paint. You can get some handyman guy off Craigslist or Yelp, or call up a local real estate group or something, post on Facebook or something. You can start preparing to make sure your credits are aligned. If and when you move into that property or buy that property, it’s not about having the money to get it. It’s a matter of time, but when something is going to go wrong and it’s not going out of your bank account, it’s going to a credit card. You can get points and budget correctly for it. You have an emergency fund almost with your lines of credit. That’s a good stat. I’m going to steal that from you. If you don’t mind, the 33 million stat.
I’ve never had a millionaire ever tell me that they’ve got rich by saving money on credit cards and getting points. I know lots of them saved thousands of dollars a year off of points.
With our space of credit, a lot of people talk about travel and this and that. I’m not opposed to that by any means. That’s great. I’m not going to tell somebody how to make money and/or what fulfills them. At the end of the day, that’s just a consequence. You’ve got to teach people how to use other people’s money to get assets, something that’s cashflowing now.
When you use a credit card properly, you are borrowing money from the bank at 0% interest for 30 days. There’s nothing wrong with using other people’s money. Tyler, this has been great having you on the show. How much of your own money are you leaving on the table? If you bought $10,000 with the Bitcoin, it went up to $10,000. Do you leave your original $10,000 in there? Are you pulling it out and diversifying it?
That’s the most conservative way to start. I put $10,000 in, it doubles, pull your $10,000 out, see what happens, deploy that into somewhere else. I also know how to leverage, which is high-risk, high reward, but I can say, “I’m going to go buy $10,000 a Bitcoin.” You can technically go up to 100X with some exchange. If it does double, the everyday person is making $10,000. I could be making $20,000, $30,000, $40,000, $50,000, and then it recorrects and repositions. People don’t realize during the last couple of bull markets of the crypto in the last decades, there have been nine 30% corrections from the all-time high. We went to an all-time high with Bitcoin. The hit was like 57 and then it reconnected back down to the mid-40s. It hit that sweet spot of that 30% correction.
There were some weird signs that were showing we might’ve gone down to 42. We’re seeing it start to go back up. Hang tight, we might rip up to $80,000 with Bitcoin. That’s our prediction that we’re watching, but understand that there are nine 30% corrections based on previous data and research that we’ve done. That was the third, if not the fourth one. At that point, we hit an all-time high. Sell what you need to sell. When you start getting good, you can start putting some leverage behind it. When you make $10,000, you’re making $20,000, $30,000, $40,000, the sky is the limit.
With all investments, including Bitcoin, there’s not a safe investment out there. The real estate, crypto, stocks are not safe. None of them are safe. All can be risky and you can lose your money in all of it. The key is getting educated on all of it, whether it’s real estate, crypto or stocks. A good way is to run it on paper, find a piece of property, start looking for it, run it up, figure out how much it’s going to cost you. Do it all on paper and see what someone else buys it for and go by and see them and ask them, how much did you end up putting into this to flip it. A lot of these guys will tell you, “I put in $80,000 and I made $70,000.” You’re like, “Okay.” It’s not as good as the TV people make it seem. They leave out a lot.
I went and checked on 25 projects, and 4 of them might be the death of me. If it was not for me understanding and educating myself on how to find proper deals, how to uniquely finance them to have quality contractors and people around me. Those four deals could have been a few million dollars out the door, but instead, you make sure that those areas are buttoned up. You become educated and do things uniquely to mitigate risk first. We got to figure this out ASAP. There are four deals. We’re still going to make money on them. You hit the nail on the head.
I saw on your Instagram that you were on a jet with some friends to look at some properties.
It was a while ago. I’ve done all my real estate deals in Columbus, but we did a bigger rehab project down in the Orlando area. We were doing it for some lovely clout on Instagram to get a jet as a marketing expense, get some ads and then go check in on the property and whatnot.
Tyler, it has been great having you on the show. Where do people follow you out?
Check me out on Instagram, @TylerBosetti. I’m also putting some emphasis on YouTube. A lot of what I put out is similar to you speaking on business finances, leveraging credits investing in the real estate, but also I’m a big believer of mindset. Check me out, hit me up and I’m happy to connect with you guys.
Thanks so much for being on the show. I appreciate it.
Thank you, Rondi. I appreciate it.
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About Tyler Bossetti
Involved in over 4,000 real estate transactions and 6 years of real estate investing, I want to educate & empower others to build a legacy.
I am dedicated to teach others how to use other people’s money aka credit to invest into real estate.
Additionally, I will share mindset, business, finance and investment principles which has allowed me to build a $20+M investment portfolio and help thousands of our clients start and scale their businesses using 0% and low interest financing.
Check us out at: www.0percent.com
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