How to Budget for Real Estate & Start Building Wealth Through Real Estate Investments
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How to Budget for Real Estate & Start Building Wealth Through Real Estate Investments


So this is somebody who moved to America from
Brazil at the age of 19 years old has only had their license for five years bought 34 investment
properties last year the goal was what 60 this year they should be 60 this year sold 80 houses
real estate agent earning Commission’s on last year – hi i’m brian Icenhower and I am
here with Hal Sousa welcome yeah I’m so happy you could be here – Hal and I have
worked together for about three years now and I really wanted him to share his story
with you and I was gonna let you tell your it’s a one-of-a-kind and somebody might Lynn
half-double tell me how we got it thank you for having me Brian uh my name is el Souza
I was born and raised in Brazil I moved here was 19 years old I didn’t know in English
I worked at a farm slowly I didn’t want to work to to physically outside so I wanted
to learn English so what it do more I started working at a restaurant which I learned a
lot more English during the time was taking ESL classes that at the adult school here
in visalia which is English as a second language for immigrants you all helped me save me some
money I needed to do something with it because I was working a lot a lot of hours and saving
in a service a real estate and at some time after about two three properties my my realtor
said hey have you thought about investing in real estate you pretty aggressive about
it I’m like why not I’d like to keep my licensing get started with it so you’ve been licensed
now for five years five years around yes right five years Tom some of the jobs and you had
over that period of time right all right my first job as a matter of fact my first day
of work was Christmas Day 2006 when I got today twice I had been you for three weeks
with no job no work and Christmas day I woke up before in order to go work at a dairy happy
as a happy as he gets for doing manual labor American Dream I’m here from Brazil to work
to make make a better living speaker like look English no sir they no word of it I mean
oh no good morning thank you and please right then you moved into working as a dishwasher
yeah what did a dishwasher I had a restaurant here you might sell you and then meanwhile
they know I said I didn’t one of you washing dishes because I wanted to do better remember
I wanted to better my and battery myself from dishwasher would be serving tables right the
time right sure yeah so what you started doing this is when you started actually started
to save money yeah yeah I was working out I mean I never had any money going up no money
so the little that I had I was good at managing the very little ahead so I didn’t spend much
I budget budgeted and whatnot yeah right so what’s interesting is before you got your
real estate license you were working in a restaurant and you had already bought in seven
houses yeah before you bought a house for yourself yeah my friends made fun of me when
I say these but I all the seven rental properties and while living at my mom’s house and my
friends gave me a hard time so yeah yeah I just hadn’t found the one you know I want
to fast forward now because now let’s talk about last year right yeah last year in one
year alone as a real estate agent you sold 80 houses yes sir but I think what’s even
more impressive than that which does impressive right you know but you purchased 34 investment
homes in one year yeah yeah it was a busy year Brian and thinks things picked up things
have been good to me I made some relationships with other investors which I can fund all
these by myself yeah it’s so bright I tend to get there however a building those relationships
basically just open the doors for hey here the Fonz go play with it and then that’s what
one of the things that I’m good at this I have I know how to find deals I find the deals
and if I have the financing I have the relationships occupying them is it 34 last year and the
goal for this year super 60 of them so you yeah now we’re gonna 60 this year and what
I think you actually have a bigger superpower that most people don’t have and that superpower
is your ability to budget I mean most people would not buy seven investment properties
before buying one for themselves most people would not store enough money away from being
a dishwasher to be able to put down payments on seven investment properties yeah you know
what I’m saying like your your job to save to create passive income I think is what becomes
your I mean that that I mean you’ve got positive attributes don’t get me wrong but that I mean
that’s impressive stuff I mean that’s I mean that’s impressive stuff yeah yeah I mean like
I said I I didn’t know I was doing this but I was already doing it I was living within
my means I still do today I have a lot more than I had 10 years ago however I still live
within my means and and I still punch it I’m good at budgeting and I want to keep going
because I feel like we talked about are you doing our mastermind the more you feed the
investment bracket the more you add to your mix misc which could be a hobby I love traveling
whatever if we family you know and I believe in that I’ve been doing I believe in it right
and I think what he’s always talking about is one of the things that we coach and train
on is you know we have a budget so just like a normal budget that anyone would think of
where you actually know all your monthly expenses and we can roughly estimate your your income
especially in real estate we know how roughly how much gross Commission income and that
committed Commission income you earned last year divide that by 12 months we have income
then we know all your expenses and we know how much of a difference there is between
your income and expenses or whatever that difference is that’s the money that we have
discretion about because you have fixed expenses that you can’t change you maybe have a mortgage
maybe a car payment maybe maybe you gotta eat tomorrow trees utilities century yeah
all that kind of stuff those are fixed non movable objects remit need those every month
right no matter what but the discretionary spending is how much we have leftover it’s
basically the difference when we subtract all your expenses from your income right and
what we always teach is there’s two things that we have to make sure that we make payments
for that we that we don’t usually account for number one it’s your tax savings we know
we’re gonna have to pay taxes on our income at the end of the year so we need to allocate
a certain amount of your income whether that’s 20% 30% 40% of your income talk to your accountant
on that and they’ll give you a rough idea of how much you should be allocating per month
towards the tax savings account I recommend putting that in your own checking account
so that’s there now when tax time comes around you can just pay your taxes out of that and
keep the rest that’s free after-tax money for you to have fun with the second one and
this is where you’ve been so good is your investment account okay this we want to make
sure that we treat this like a payment just like a utility bill payment except it’s usually
a bigger then we’re gonna stash a certain amount of that income away and almost make
it a payment I even recommend having another big account so we keep funding that bank account
with a certain percentage and a certain payment every single month then what’s left over as
your miscellaneous that’s your fun money right now right yeah that’s your fun money right
now and you’ll see how much discretion you have over how much you want to spend so now
we’ve got massive motivation like you’ve had to keep generating more businesses sell more
real estate then we might be able to increase the amount we put into forced to our to our
forced investment account we might be able to increase that in our budget just start
paying more and more per month towards that or we might be able to want to spend more
and have more fun right now in our miscellaneous spending account yeah those are decisions
you get to make them no that brings me back to what I said earlier the more you feed your
investment bracket your investment account the more you can buy which is gonna create
more passive or whatever that that investment is for you and which will and will allow you
to do more right so if we’re investing in more investments that produce passive income
for us like a rental property that gives us positive cash flow that’s gonna actually increase
the amount of income we take in which then increases the amount that we can invest every
single month yeah and and that’s what you’ve done is you’ve just continued to increase
your monthly income through positive cash flow from your investment let me ask you this
question when was the last time you went to sleep it made money while sleeping yeah it’s
hard to do Lourdes can do that a lot of real estate gemstone the reason I say this is so
important I think this surprises you sometimes but doesn’t mean there are a lot of agents
that sell a lot of real estate right no no they don’t necessarily have a lot of wealth
because they don’t have the lambda budgeting that we’re talking about they don’t have the
discipline correct and and it’s just a matter of opening up an Excel spreadsheet you even
write it out on a yellow piece of paper and and taking a look knowing it knowing it write
it so it’s almost like if you if you step on a scale every single day and look at how
much you weigh you’re gonna become self-aware and you watch without even trying you’ll start
to watch what you eat and you’ll start to actually you increase the likelihood at least
that you’re going to drop weight just by being aware and knowing your numbers and the same
true with budgeting if we can budget and put in a couple different payments that you need
to make for your taxes and for your investment account suddenly you’re going to start to
see those things those things grow right whether it’s measured whatever is tracked it tends
to grow yes sir yes sir and while budgeting and do I know that I was able to purchase
several rentals and those rentals are now finding my flipping business which like I
said I had to work with investors and however these rentals are starting to pay themselves
off and now I’m able to get funds from the rentals to put on my my flipping business
to where I’m not paying a high interest to somebody also or rather involving somebody
else in my business I’m just playing with more funds which means more cash flow for
use what I’m very dense and I’m not I’m not against of boring the money to do the deals
however I like to play with my own money as much as I can with in my comfortable zone
my comfort zone into I have to go outside my circle and go out and get funds from elsewhere
how old are you right now I’m 30 maybe 31 this month 31 this month right okay so this
is somebody who moved to America from Brazil at the age of 19 years old has only had their
license for five years bought 34 investment properties last year the goal was 160 this
year they should be 60 this year so love 80 houses as a real estate agent earning commissions
on last year – that’s already talking about budgeting spreadsheets passive income and
yet has been it has been a wonderful wonderful getting to know you and getting to know your
business thank you for having me again Brian’s been a pleasure doing this and hopefully this
and another two to five years I tell you a better story that’s right idea thanks again
everybody.

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