How To Get $100 To Pay You $100K EVERY Year! | 143

 

What would it take for you to take $100K to pay you over $8,000 a month? How could you retire with that kind of income in LESS THAN 10 YEARS? And with almost no other money out of pocket?!

Did you know that you would have to save an additional $20,000 a month in your 401(k) or IRA to even get that SAME return in 10 years?

Cash Flow Expert, Chris Miles, uses one of his client examples to show how they can generate over $100,000 a year with only $100,000 in their retirement account, in less than 10 years with hardly any extra money out of pocket. Tune in to find out how!

 

Chris Miles Bio

Chris Miles, the “Cash Flow Expert,” is a leading authority on how to quickly free up and create cash flow for thousands of his clients, entrepreneurs, and others internationally! He’s an author, speaker, and radio host that has been featured in US News, CNN Money, Bankrate, Entrepreneur on Fire, and has spoken to thousands getting them fast financial results.

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Listen to the podcast here

 

How To Get $100 To Pay You $100K EVERY Year!

I’m excited to have you on. Remember to check out our website, www.MoneyRipples.com, and be sure to follow us on Facebook. Follow the show, read other episodes, and share this with your friends, family, and everybody else too. I’m happy to have you here, and I’m happy about this topic too. I’m happy for all of these topics, but this one is exciting because this is something I discovered in the last few days. I was doing a game plan strategy for one of my clients and working with some of my team on this.

For those of you that don’t know, I’m a consultant like an anti-financial advisor. Rather than selling you products, what I do is I come from a place where I say, “Here it is. Here’s what I see.” It might be investing in your business if you’re a business owner, and that could be the best return possible. It could be investing in other passive income streams or whatever it might be, but basically helping you find the money leaks and cashflow leaks, and helping you to be able to earn and make more money too. I’m looking at that stuff.

One of my clients, he’s got a few hundred thousand dollars in different types of savings, which is typical of some of my clients. They might have some money in IRAs, 401(k)s, savings accounts, or whatever it might be. Sometimes they have equity in their house because the market went up and they’re not sure what to do with it.

In his particular case, we were looking at a few different aspects. I want to show the whole thing to you guys. I always try to keep my clients anonymous. I don’t ever mention their names, but because this plan is in some cases so big because there are so many aspects you can do. There is a two-pronged approach I’m doing him. I wanted to take one little snippet of what we’re doing with them and share with you what can happen and to see a little case study of some sort if you call it that.

You can create returns with the right properties, but in business, it is possible to get a higher than 100% rate of return on your money, depending on how you use it. Click To Tweet

He has some IRA money. A lot of people I talk to, and I even say this too, if you’ve got even at least $50,000 or $60,000 in an IRA or even over $100,000 especially, and you’ve gotten different investments or whatever it might be, or even home equity, the thing is you can turn that into real cashflow now. You can do it with less, but if you’re trying to create passive streams of income through real estate investing and things like that. It’s very easy.

Real estate is the thing he wanted to focus on specifically. What’s interesting is that we went and looked at this. We said, “With the IRA, you’ve got to put a larger down payment on a property,” but he’s able to buy a couple of duplexes with that $100,000, a total is about $103,000, almost $104,000 that he put down on these two properties. Usually I think, “You cashflow some money, that’s sweet.” The cashflow is a little over $1,300 or $1,400 a month is what it was on that.

As it is an IRA, we’re saying, “We’ll roll up money and put it back onto the property.” All the extra money they had, we put that towards paying down the mortgage. I know it went against what I taught in an episode a few weeks ago, and that’s fine. Paying down your mortgages is a strategy. It’s not the end haul, but we figured, “We’ll use that one strategy as an example to illustrate here.”

For $104,000 he’s able to buy two duplexes now. Usually, 2 to 5 years is pretty typical when you might turn around and sell these properties to go and buy new ones because you build equity and things like that. You want to make sure your equity is making money for you. Over time, the funny thing is your real estate properties lose value. They don’t lose the value in the sense of the value of the homes, but the equity that’s in there.

 

The more equity you have and the less it is paying you. That means the equity is not making you much. That means there’s untapped potential because you have equity and property that’s not paying you like your own house. Your house doesn’t pay you a dime, but if you had the equity in that house, you can now turn around and invest it, and make you more money. That could be investing in your business or real estate or whatever, but if you can have that go make you more money you can get your mortgage payment paid for or in some cases, even not only have it paid for, but you have extra leftover.

I don’t want to keep the property very long, so long story short. Let’s say he wants to sell this property and it didn’t appreciate a whole lot like less than 3% a year, so less than what you usually see real estate do on average. What would happen is that those properties would be worth roughly $300,000 in those five years. The mortgages would be paid down to about $87,000 leaving him about $212,000, $213,000 to use. He sells those two properties that were from his IRA. Now, he’s got $212,00, $213,000 that he can go and buy now five duplexes.

There’s another deal we’re looking at and say, “We can buy five duplexes with that money.” He would have to put an additional $17,000 down on top of the money that he had, but still, with only $17,000 more, he’s cashflowing $3,275 a month. To put that perspective, that’s almost $40,000 a year. He’s cashflowing in five years. Does that make sense? That’s pretty awesome, isn’t it? That’s from $100,000.

If you think about $100,000, normally, you’re hoping and praying that your IRA in five years maybe has returned you 30% total in that period of time. You’re hoping you’re up to $130,000 of that same $100,000 or maybe $135,000 or $140,000 if the market smiles at you just right. Even in that case to make $3,200 a month is amazing because it wouldn’t make you that much money, not even close. That’s $40,000 a year. It did that in five years, and you’re hoping that would do in a year.

Money is meant to flow and grow. It's not meant to stagnate. Click To Tweet

You bought those five duplexes that are cashflowing at $3,275. Use the same strategy to pay down your loan as you’re paying on a mortgage payment, after ten years, the value of those duplexes would be roughly over $1 million. “I had $1,060,000. The mortgage is over $400,000. Leaving me with basically $650,000 of equity.” Do the same thing again. “Cool, we’re going to sell those five duplexes. We’re going to buy some and now you’ve got that $650,000 that you can go create cashflow with for a total of over $8,600 a month. You could probably kick out of that and sometimes more or less, depending on the market.

Again, I don’t like the forecast a lot, but still taking $650,000 to do that is a pretty realistic thing with a lot of the properties that we’re seeing now. It could be more or less as I said, but the fact of the matter is that if ten years and those properties hardly appreciate at all and we’re not counting on big real estate market booms, it’s just like a very boring real estate market and to take that $100,000 to then make you over $100,000 a year because $8,300 month is $100,000 a year. You have $8,300 a month, or even more than that to make you over $100,000. That means your money ten years before that put in is paying you that every year in passive real estate income.

I wanted to compare that. How does that look? That sounds awesome. Would you agree that’s pretty amazing? That’s why we talk about, whether is it possible to retire in 5 to 10 years? Yes, it is. It’s depending on your situation and where you’re coming from. A lot of people I meet have more than $100,000, sometimes they have so much money they’re like, “What the heck do I do with all of it?” Sometimes you don’t have to do everything with it. We can even keep it safe and make sure it doesn’t lose money, which is very important.

The point of the zest is that now you have options. I compare this because if you were to go with a typical financial advisor route and say, “I want to be able to make an extra $8,600 a month.” I went and did the numbers. The number I have is $8,666 to be exact per month. I said, “What would it take to basically kick off an income stream of about $100,000 a year?” It’s less than $8,600. If you’re going to do what financial advisors recommend, they say, “Live off the interest.” You’ve heard them say that again and again. They also tell you to plan for inflation and the rising cost of living because you don’t get cheaper as you get older, you get more expensive. Time and inflation make sure of that, even if you try to keep things the same. Inflation will try to knock it down, so to speak.

 

If you’re saying, “What would I need to save in a normal mutual fund like my 401(k) or an IRA to be able to kick off $100,000 a year of income?” I went to do the math. Financial advisors will say, “You should only pull off 3% a year.” This is at most, some say 2%, some say 4%, and that’s the old number. Most of them don’t recommend that because they don’t want to over-promise something. Let’s say maybe 3% a year that you pull off.

To pull off 3% a year to pull off a little over $100,000 you would need to have about $3.4 million saved up in your retirement account. I contrast that and said, “If that $103,000 or almost $104,000 this guy is using here and keep it in a mutual fund, how much would you have to save into that IRA to be able to get it up to $3.4 million in 10 years?”

Again, going with a number of about 6% return on your account, which by the way is pretty aggressive for a real rate of return of those are those accounts, especially after we’ve had a big market high, that’s even crazier to try to get that number. Remember, in this real estate example, you didn’t have to add any money to it. You just use the same money. You have to add into the IRA or that mutual fund of$103,000 or $104,000 with $20,000 per month to get it to $3.4 million if it even returns 6%. How many of you guys got $20,000 a month lying around right now?

Let me ask you a question. Would you take the $100,000 at $20,000 a month so you can finally live off with the financial advisors who told you to do that 3%? Doesn’t that seem crazy to put in $20,000 a month, $240,000 a year, so you can live on $10,000 a year in ten years? That’s crazy. That’s why they tell you that look out 30 or 40 years because it doesn’t look as bad even though it’s still pretty crappy. You have to add a lot of money there.

Some people might think that education is expensive. Ignorance is more expensive than education. Ignorance is the number one money leak in your life. Click To Tweet

Think about that versus a $100,000 into two duplexes, but again, moving the money, not always keeping sitting there, make sure you utilize the equity. That’s one thing I’d like to analyze with people, even able that have real estate we’re like, “Should we keep the property? Should we sell it? What should we do?” Analyzing that to figure out what’s going to be the best move and this is a simple move. You only buy and sell twice, and that’s it. You bought the third time at the ten-year mark to then get that income stream. You could stop there and say, “We’re good. That’s it. Here’s our income stream.” You would be pretty well off.

The question is, “Can you retire in ten years?” The answer is absolutely yes. This is just about this one example of real estate with one of my clients. This is only one aspect and he’s already got other money in other places that we can use that this would allow him to do more than double this. He’s got about $300,000 to work with here. That’s the coolest thing ever, don’t you think?

For those of you who are in business, maybe you don’t even have $100,000, do you have something and you might have something? Not to mention you’ve got something in your business that might be able to create additional streams of income that can allow you to get $100,000 even faster than ten years. That’s the beautiful thing about this.

Even some of my clients could do this within five years and be able to get to the $100,000-year mark, but some of my business clients, they are getting to that point because they can control those returns. We’re talking about trying to get cash on cash returns so like 15% to 20% in real estate, you can with the right properties, but in business very possible, you can get a higher than 100% rate of return on your money depending on how you use it.

 

It depends, but I want you to open up the possibility that you don’t have to save and save, and pay off every little bit of debt so that you can become financially free. It’s very possible that you right now have the resources that you can become financially free quickly. The crazy thing is that you’re probably wasting time right now doing the old traditional crap that hasn’t worked for decades. There are people still trying to stuff and save into their IRAs and their 401(k)s for the last several decades and with very little hope of a lifestyle.

What lifestyle do you think you could have with $50,000 a year, $100,000 a year, or $200,000 a year, depending on where you’re at in your situation? That’s what’s beautiful. Again, I want to open you up to the possibilities that there are better ways to do things. Money is meant to flow and grow. It’s not meant to stagnate and accumulate.

I want you to know that there are possibilities. There is hope. There are lots of angles and lots of ways to create the financial freedom that you want now. The only thing stopping you is you. What you don’t see is what you don’t know. That’s it. I’ll say this quote in my events, “Some people might think that education is expensive. Do you know what’s more expensive than education? Ignorance.” Ignorance is the number one money leak and costs that in your life. Ignorance of where you can be creating streams of income right now, and you don’t know it, whether it be in your business or your money. Get your make money to make for you, so you don’t always have to work for money.

All of those things, that’s all there. It’s finding those resources and making them work. I did not go through the depths of crap, in a sense of depths of financial hell so that you guys could struggle. That’s why I’m here. This is why I’m teaching what I teach because I’ve seen time and time again how many times people’s lives have been affected when they don’t see what’s there.

I’ve got $1 million in debt and have to dig out of that hole with no money and no credit. I know how to create money and it’s awesome. I love it. You have the possibilities and all the resources you need. It’s just about finding it and knowing how to use it. It might take time. You might take a little more than ten years, who cares? It’s better than taking never. I’m here to inspire hope in you. I hope this was valuable and effective for you. If you’ve got questions for me and you’re like, “Chris, I want to know what’s possible in my situation,” shoot me an email at Chris@MoneyRipples.com and let’s chat. Have a wonderful and prosperous week. We’ll talk to you later.

 

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