Mon, 19 June 2023
The wealth of families often dissipates to zero within a generation or two.
Learn about the Vanderbilt family’s downfall and how you can avoid these mistakes.
Have an estate plan. I explain the difference between a will and a trust.
I introduce you to my friend Michael Manthei.
A regular GRE listener, Michael and his wife bought 55 units within 4 years and acquired $85,000 of annual real estate income.
He thinks about generational wealth as: income, taxes and inflation, giving, faith, service, preserving stories, character, physical health, and that your family is a treasure.
Learn the difference between inheritance and generational wealth.
Today, Michael runs the Elevate Investing Group. His upcoming event, Generational Wealth 2023, is August 18th-19th, 2023 in Lancaster, PA. Register here.
I’ve never heard of an event like this. Multiple generations of one family will tell you how they did it.
Michael’s transformational event:
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Complete episode transcript:
Keith Weinhold (00:00:00) - Welcome to G R E. I'm your host, Keith Weinhold. How do you build generational wealth? How do you keep it and how do you pass it on so that it stays within your family for generations? Part of this is today's conversation with A G R E listener that's doing something that I've never heard of anyone else doing today on Get Rich Education.
Speaker 0 (00:00:22) - Taxes are your biggest expense. The best way to reduce your burden is real estate. Increase your income with amazing returns and reduce your taxable income with real estate write-offs. As an employee with a high salary, you are devastated by taxes. Lighten your tax burden. With real estate incentives. You can offset your income from a W2 job and from capital gains Freedom. Family Investments is the experience partner you've been looking for. The Real Estate Insider Fund is that vehicle, this fund investing real estate projects that make an impact. And you can join with as little as $50,000. Insiders get preferred returns of 10 to 12%. This means you get paid first. Insiders enjoy Castle on a quarterly basis and the tax benefits are life changing. Join the Freedom Family and become a real estate insider. Start on your path to financial freedom through passive income. Text family to 66866. This is not a solicitation and is for accredited investors only. Please text family to 66866 for complete details.
Speaker 3 (00:01:31) - You are listening to the show that is created more financial freedom than nearly any show in the world. This is Get Rich Education.
Speaker 0 (00:01:54) - Welcome to GRE from Weehawkin, New Jersey to Weed, California and across 188 nations worldwide. I'm Keith Wein Holden. This is Get Rich Education. Shortly we will hear from a GRE listener that's an engaged real estate investor and is having an unusually large impact on other people with generational wealth. Soil has profound effects on the type of agriculture that's possible and therefore soil has had profound effects on the kinds of societies that have been historically possible going back 12,000 years since the advent of agriculture. So productive and irritable soil is what made real estate valuable. A pattern of farms that are passed down through this same family for generations. Well, that's something that's possible in fertile regions, but not in regions where the soil is exhausted in a few years and has to be abandoned. And a new site found while the first site recovers its fertility.
Speaker 0 (00:02:55) - Whole societies had to move when the land in any given location cannot permanently sustain them. Therefore, cities couldn't even be built or contemplated. So then when you have bad soil, you can't have anything that lasts. And if you can't plant your family's principles, call them seeds in fertile soil, which is my metaphor for having moral and cultural standards, well then you can't build generational wealth either. You won't have anything that lasts very far beyond your one finite life. And as society advanced, we have more historic examples about families that built and have still capped their fortune today after several generations like the Rockefellers or families that have built and squandered their fortune like the Vanderbilts. And how that started is that really the Vanderbilts have been heralded as American royalty. The icons of the Gilded Age and that rich history all started with Cornelius Vanderbilt, Cornelius.
Speaker 0 (00:04:09) - He's the one that started to amass the family fortune from railroads in shipping businesses in the late 18 hundreds. He became the wealthiest person in America in the 1860s and then he went to pass that title down to his son William Henry Vanderbilt. And then he became the wealthiest American during the 1870s and 1880s. But it began to fall apart with William. Yep, just one generation later. The second generation, one generation after the wealth builder Cornelius and then Gloria Vanderbilt was born. Her father had a gambling problem and squandered most of his fortune. There was also overspending on frequent international travel. So Gloria, the granddaughter of the one that started the Fortune Cornelius, she herself would go on to have four sons each from different marriages. One of her four sons is prominent in American society today, and it might surprise you when I reveal his identity shortly by the time of glory, Vanderbilt's passing, okay, her estate had dwindled from $200 million down to just one and a half million dollars.
Speaker 0 (00:05:25) - So from wealthy to almost middle class right there, her New York apartment was bestowed to one of her sons. Two of her other sons remained estranged and only one of her four sons inherited the majority of the estate. And that person is none other than the, I guess, somewhat esteemed broadcast journalist and author Anderson Cooper. So you can see in the Vanderbilt family how that fertile soil broke down culturally and became in fertile to build something that lasts. You need that fertile soil. There's more than just a cultural component to creating generational wealth. I mean, first of all, of course you need to build the wealth in the first place by listening to this show. You're either on your way there or you're already there. And that means they focus on things that most people don't do. It's places, frankly, a lot of people just don't even look or consider like getting lots of smart debt for leverage or being inflation aware, being tax savvy and owning assets that pay you while you hold onto them.
Speaker 0 (00:06:33) - There's also a legal component here. I am not a tax or legal advisor or professional. So just super briefly in one minute and in plain English you need to have an estate plan. Step one is have a will. That is like a letter that you write before you pass away. Really that's all a will is if you have possessions that you want to go to a certain place, even if you're only 20 years old or if you're 80 years old and you have say a car and a little money or pets, then have a will. You can write a rock solid will really cheaply start at a place like trust and will.com. Then after a will understand a revocable trust, that's a special account where you put your assets like money in real estate while you are still alive. And the key to the word revocable is that you can cancel or change it any time you want to.
Speaker 0 (00:07:34) - When you pass away, things go to your beneficiaries, your heirs, without the annoying probate process in court. Okay, that's a revocable trust. And why have a will versus a trust? Well, there are a few reasons, but if you have less than a million dollar net worth though, then that first step, the will, that's probably going to suffice for what you need. But if it's a million plus, then it's more likely the trust. So really there are two main trust types. I touched on the re revocable trust. Now the irrevocable trust, that's something you cannot change once you set it up. It is rigid, not flexible. Well then why would you set up an irrevocable trust if you can't change it? Well, it can protect you from taxes, lawsuits, and creditors in certain situations. So that is the quick one minute on basic estate planning wills and trusts, yes, there is far more to know like beneficiary designations and durable power of attorney.
Speaker 0 (00:08:37) - But look, here's the thing and the motivation for you devoting sometime to estate planning like that. If you die, you can be assured that your family won't squabble over dividing up your assets if you get that in place and you sure don't want that because they're already gonna be broken up about you passing away. You'll want your generational wealth to pass on in a planned way and also wills and trusts. That's the way that your family locates your assets in the first place. Today you'll see how our guests and his wife hit financial freedom when they had $85,000 worth of real estate income and note that that was seven years ago. So therefore on an inflation adjusted basis, that might be say 110 K or 120 K in today's dollars depending on what you think the rural rate of inflation is. And then you'll see how that got him thinking about generational wealth and what he's doing to help others with it.
Speaker 0 (00:09:40) - Like I said, he's doing something with it I've just never heard of before. But first, I hope that you've been enjoying our valuable, don't quit your Daydream letter where lately I sent you that great map that shows where the top job growth states are. That chart comparing your rent increases to your increase in operating expenses, that story about how Phoenix is going to have construction limits due to their declining water supply. And all those stories about how wacky California real estate has become, including State Farm recently halting new insurance policies in the state of California. If you aren't reading our letter, which has a dash of humor, I send it about weekly, then you are missing out. I'd love to have you read it. It is totally free. It's full of real estate investing industry trends and forecasts and broader economic forces that are gonna affect you in the future and more.
Speaker 0 (00:10:38) - And also whenever we have job openings here at G R E as we keep growing, they are announced in the letter as well. And now you can easily sign up for the letter by text. And if you aren't one of the many subscribers growing your means with my letter, you can simply text GRE to 66 8 66 for or don't quit your Daydream letter. Again, it's free and I rate every single word, all the letter myself. I don't think that many founders do that. This letter is written from me to you and you get top investment property news in just a five minute read. You'll get some valuable introductory emails and then after that it's only sent about once a week, not daily. And again, you can sign up by simply texting G r e 2 6 6 8 6 6 for the letter that's GRE 2 6 6 8 66 generational wealth straight ahead. You're listening to Get Rich Education with J W B Real Estate Capital. Jacksonville Real Estate has outperformed the stock market by 44% over the last 20 years. It's proven to be a more stable asset, especially during recessions. Their vertically integrated strategy has led to 79% more home price appreciation compared to the average Jacksonville investor since 2013. JW B is ready to help your money make money, and to make it easy for everyday investors, get firstname.lastname@example.org slash g rre. That's JWB real estate.com/g R E
Speaker 0 (00:12:14) - GRE listeners can't stop talking about their service from Ridge Lending Group and MLS 40 2056. They've provided our tribe with more loans than anyone. They're truly a top lender for beginners and veterans. It's where I go to get my own loans for single family rental property up to four plexes. So start your pre-qualification and you can chat with President Chaley Ridge personally. They'll even deliver your custom plan for growing your real estate portfolio. email@example.com.
Speaker 4 (00:12:49) - This is Hal Elrod, author of the Miracle Morning and listen to Get Rich Education with Keith Weinhold and don't quit your daydream.
Speaker 0 (00:13:05) - Hey, I would really like you to meet someone today. He and I met last year through our mutual friend Dave Zook and of all things last year we crawled through a cave in the middle of the woods in Lancaster County, Pennsylvania together and I mean Crawled. He is a real leader, he's a professional investor and founder of the Elevate Investing Group. Welcome to G R e Michael Manthei!
Speaker 5 - Michael Manthei (00:13:29) - Keith, thank you for having me been a longtime fan of you and the show and the worldwide impact you've had. So honored to be here
Speaker 0 (00:13:36) - In your bio, you haven't yet added that you're an amateur caver or spelunker as it is
Speaker 5 (00:13:42) - One attempt at S Splunking. I'm not sure if I can put it in the bio yet, but uh, maybe after a second round .
Speaker 0 (00:13:48) - Well Michael, you have done though what most everyone wants, which is actually not spelunking. You have achieved financial freedom in your early thirties and you're much older than that now. You've now got more than a decade of experience in syndications property management and you have over $200 million worth in real estate acquisition. So talk to us about how you obtained financial freedom after less than four years of investing.
Speaker 5 (00:14:17) - I feel like it could be, uh, you know, almost an infomercial with how it's gone. You know, I read Rich Dad Poor Dad and that completely changed my world growing up. I wasn't around wealthy people to know how they thought or what they did with their money or how they got there. So to get a glimpse through the book, rich Dad Poor Dadd changed my life and I set a similar goal as Robert had in the book of buying two properties a year. So after 10 years I figured I'd have 20 properties if everything went well, but could never have expected that. Yeah, like you said, within four years we bought 55 units, had enough passive income to retire. It went a lot faster than I thought, but incredibly grateful. We started with a single family house. I was completely broke when I got married.
Speaker 5 (00:15:08) - I was actually a missionary for seven years coming off the mission field, not a dollar to my name. Married my wife who had saved a lot of money for me at the time was $25,000 is what she came into our marriage with. And so I was broke. She had 25,000 and that's how we bought our first rental, which was interesting to work through that process with her, you know, using her life savings to buy the first rental when we were still rent a house. You know, she thought she'd save this for her first house and I said, Hey, how about instead of us buying a house for ourselves, let's buy a house for someone else and start this journey to financial freedom. From there we bought another single family house, then we bought a 10 unit property and with that 10 unit property I bought it cash with a hard money loan.
Speaker 5 (00:15:56) - When I went to the bank to go to permanent financing, it appraised for 150,000 more than we bought it for. And so we got all the money back plus a line of credit of $75,000 that then opened us to keep buying. But Keith, the real advantage of that deal was it unlocked my mind to say I don't have to be limited by my own capital. I had no money in that deal and I thought we were gonna be limited by our own capital the whole way, you know, save up 20% down payment. This deal happened in such a way that it kind of unlocked this infinite return concept. And so from there it was kind of off to the raises. Once the creativity was set free from that point, including that 10 unit, we bought 50 units in less than two years and achieved our goal of financial freedom.
Speaker 0 (00:16:46) - That is really fast. And I note that at that point with the 55 units, you had a million dollar net worth and those assets generated $85,000 in annual cash flow. But dropping back thinking philosophically the book that introduced me to the concept that I didn't wanna believe for a moment or at least it was one of the Robert Kiosaki books and that is being wealthy is a choice. I actually didn't believe that. And you are being very intentional with the out-of-the-box choices that you're making and you and your wife Kristen, much like me, when I started, I didn't have much of my own money either. I started with that three and a half percent down payment on a fourplex. So then really the impetus often for using other people's money is because you have to because you don't have much of your own money.
Speaker 5 (00:17:33) - Yeah. And that's part of, you know, creating the grit. It can be a a blessing to those of us that wanna learn and grow to not have a lot handed to us because the confidence that it brings to be able to figure stuff out and get creative. And what I love is, and what I hope my story helps provide to your audience is when you see somebody else that's done it or hear stories of real people that have done it, it just unlocks the capability inside to say, Hey, that guy doesn't look that special. I think I could walk down some of the same road. So totally agree that it's, it's a philosophical shift and for me the big one was buy cash flowing assets. That kind of became my mantra that all my work, all my effort, all my energy went into acquiring cash flow producing assets and that simple concept just opened a whole new world,
Speaker 0 (00:18:26) - Real assets produce real income. So you began with, it sounds like a rental single family home and then shortly thereafter this 10 unit apartment building that sounded like that was the real pivot point for you. It allowed you to get creative that just gave you that much more room, that much more leverage. Had that been a duplex and it appraised overvalue or probably wouldn't have appraised 150 K overvalue like a 10 plex did. So tell us more about the options that gave you in growing this fast.
Speaker 5 (00:18:55) - The reason I was looking for a larger building is cuz my wife had gotten pregnant. She was working part-time during that portion of her life and I just had it in my heart. You know, she had wanted to stay at home with our kids once we started having kids. So she's pregnant, I'm thinking let's go find an asset that would replace her part-time income. So I was looking for smaller things honestly. I was like, well maybe if I buy a couple duplexes or a couple triplexes and then this 10 unit came on the market, but I'd had some issues with this seller on a previous purchase that we were trying to work towards and they just seemed a little bit squirrely. So I said, you know what, I want to give the most airtight offer that I can. So I talked to a hard money lender, said, Hey, I'm gonna offer all cash, no contingencies.
Speaker 5 (00:19:43) - So it was a big risk. I mean we're buying 10 units, we only had two at the time, so it felt like this huge stretch didn't have, you know, the money to do it ourselves. So got the hard money loan. But then when we took it to the bank and they gave us the appraisals, like oh my goodness. So not only did they pay off the hard money loan and give us a $75,000 line of credit, they also gave us like maybe 10, $15,000 that we, you know, put in our bank account. But then we could use that 75,000 to go put down payments on other properties and go buy other properties cash and then refinance out of 'em. So it really just, it changed everything. It unlocked everything for us.
Speaker 0 (00:20:19) - If you were going all cash, why did you need the hard money loan?
Speaker 5 (00:20:23) - The hard money loan. Once I secured that, I could offer all cash to I see the seller. So I gave 'em a cash contract because I had the cash lined up with the hard money lender.
Speaker 0 (00:20:34) - So it was about that deal making using your intuition when one seems squirrely. So that really leveraged things for you there in order to grow that faster as you're going through this process, as you're building this portfolio. Okay, now you've got 55 units, which does give you enough cash flow, $85,000 a year for most people to declare financial freedom. The interesting thing is you had the million dollar net worth at that time. Most people with a million dollar net worth are really only about middle class because they don't have residual cash flow. So net worth matters, but it's not as important as your passive income. You had the 80 5K of residual income accompanying that million dollar net worth and that's what makes the difference.
Speaker 5 (00:21:23) - Yeah, it goes back to the cash flow producing assets. All my effort was focused on acquiring those assets that would pay me the rest of my life. Never flipped anything, have a lot of friends that do flipping and I didn't want to get addicted to that big payout. You know, I take one single family house and maybe I make 20, 30, 40, 50,000 on it. I felt like I was gonna get addicted to that. Whereas for us, the first house that we bought, Keith, like $200 a month of cash flow, it's like this feels like it's doing next to nothing. But I said, you know what, I have a long-term goal here. The only way to get there is one property at a time, one step at a time. You eat the elephant one bite at a time. And so I said, let me continue making steps towards my goal and it snowballed faster than I expected. But again, cash flow producing assets,
Speaker 0 (00:22:12) - Find that first property with say, $200 in monthly cash flow. That doesn't change really anything in your financial life, but it changes your mindset. It's a pretty incredible moment. Like ta-da when that $200 shows up month in and month out with little or none of your own effort at all. That's really where it starts. You talk about retiring shortly after this time and you had a major philosophical shift then when you retired at just age 33. So tell us about that.
Speaker 5 (00:22:42) - I thought retirement was the goal. You know, I read in four hour work week and other, you know, books like that and it's like inactivity is the goal and I'm ashamed to say that I bought into that and you know, I can't wait till I do nothing. So once we got there, literally within a week I was bored. I'd worked like crazy to get to that point. I was working, you know, 50, 60 hours a week at my normal job plus buying and self-managing, you know, up to 50 units on the side. So it was a lot of work and I needed some time to rest. But after a week of rest, all my energy came back and I said, this feels wrong. I just had this sense. I have not been created to go through the rest of my life from 33 on in my easy chair.
Speaker 5 (00:23:27) - I wasn't expecting that at all. It, it hit me by surprise. And so I realized that that goal of financial freedom was a great motivator, but very empty once we got there. We recalibrated, my wife and I, you know, a lot of time in prayer talking with each other. It was a new experience to think we can do anything we want now. You know, our decision on what we do next is doesn't need to be dependent on how to pay our bills. Simple lifestyle, 85,000 a year covers us, but as we considered it, realized absolutely love what I'm doing, but this would be so much more fulfilling if we did it in relationship, became a part of other people's story, helped them on their journey, invest together, build a community and get to know people, build long-term relationships. So that was the major shift and uh, it's been seven years since then, so I appreciate that. Uh, you said I'm not much older than 33, uh, 40, which I guess isn't too far out, but we've had a lot more fulfillment in the last seven years as we've been a part of other people's journey.
Speaker 0 (00:24:30) - So that was really the turning 0.7 years ago at age 33 where you're like, we did what we have to do now we get to do what we want to do. Yeah, you're a man that serves. So basically to that point you had been serving society with good housing and now you can pivot to serving investors.
Speaker 5 (00:24:48) - Yeah, and really to me, service is life. The Bible talks about if you want to receive, give and you'll receive. So I've never focused on how do I receive, how do I get more. For me it's simple. I try to simplify things. What is the one input that I can focus on that then will knock down the rest of the Dominos? So it's give. And so I've looked at how can I serve, how can I give? And that's been my focus and that has opened up tremendous, uh, doors of opportunity. So seven years ago a mutual friend with Dave Zuck and he's doing these syndications and I was like, Dave, I wanna learn this, I wanna do this. So he introduced me to the guys that taught him and we started doing larger deals and, and Keith, I started on the smaller end. The first two deals that I put together as syndications were both 11 unit apartment buildings.
Speaker 5 (00:25:41) - And I'd already bought 10 units and 11 units and 12 unit buildings myself at that point. And I didn't need other people's capital to buy those, that point of our journey. But the goal had shifted from before that it was, how can I maximize my profit on these real estate deals, you know, maximize my cash flow, maximize my profit, and it switched to how can I give people a great experience with me? And so to me you can't give without it coming back. So in one sense I gave away more equity than I would've needed to, to have some investors and partners come along the journey with me. But I knew that if I gave them a good experience and learned this business, that that would snowball into a scale that we would never have been able to touch outside of that, which is exactly what's happened.
Speaker 0 (00:26:32) - It's interesting that you mentioned 11 unit apartment buildings because I have owned some of those myself. Oftentimes that's a zone I've operated in kind of these mid-sized apartment buildings. Things that are, are a million and a half dollars in value or below because oftentimes the big boys don't play there. But now you learn how to be a go-giver, that's become part of who you are and that's how you could go bigger with larger apartment buildings in making those opportunities available to investors.
Speaker 5 (00:27:00) - Yeah, it's really hard to take on investors at a smaller level. So when the, the focus shifted to how can I be a part of people's journeys and make long-term relationships with people, the answer is to scale up. And so, you know, we've scaled from there to now we own over 2000 apartments, uh, with our investor group and me serving them as a general partner.
Speaker 0 (00:27:21) - Congratulations. One of the first things that struck me about you when I met you is really your holistic vision of what wealth is. Finances are obviously part of that, but only one piece of the pie and you often champion generational wealth. Tell us about how you think of total wealth and generational wealth.
Speaker 5 (00:27:42) - I have three kids now. Uh, they are the greatest gifts in my wife and i's life. And when you have kids and you have people that you pour into, you start thinking about how can you improve their lives and how can you build something that outlives you? So this generational wealth concept has been, I would almost say consuming me. I mean it's just how I filter everything that I do. Where you set your strategy, tells you what your tactics are gonna be. So if you're making short-term decisions, you can do things that work short-term. They don't necessarily need to work long-term. But I said, what's the most successful patterns that I see in the world of wealth, in the world of impact? And it's these family dynasties that grow, preserve and pass on wealth from generation to generation. And so for me, there's a few things that go into that.
Speaker 5 (00:28:40) - It's obviously the financial wealth that's a big piece of it. You need, if you're gonna talk about generational wealth, you're talking about a substantial amount of money that gets passed from one generation to the next in in such a way that it can be carried on by that next generation. But we've all seen examples where just giving the money is not a total solution. And so really focusing on the relationships around you and the people and your family. I'm a fan of making your wife the greatest treasure your spouse, you know, for our ladies out there, your significant other, make them the greatest treasure that you have on earth. I look at my wife as my greatest treasure. I look at our kids as our greatest treasure. My kids right now are eight, six, and two and we train them from day one to think of themselves as kings and queens.
Speaker 5 (00:29:32) - I started with two daughters and then my third born is, is a little boy. So he's our little king. But there's this princess culture. All the little girls are princesses. Yeah. And when we grow up we sometimes hear what we heard as a kid in first person. Sometimes people still have those tapes that play and what's a princess? I mean entitled. Yeah, you're royalty but you don't have any responsibility ever since day one. I was like, you're not princesses, you are queens, you're powerful, but you have responsibility. You have resources but you have an obligation to use that to serve the people around you. God made you beautiful. So let's be accepting of every single person that we see, whether they are beautiful or not on the outside the resources that we have. I feel like we are to be a steward of it's never given to us, to prop us up and make others serve us.
Speaker 5 (00:30:25) - For me, my resources is a responsibility to serve others with what I've been given. So pouring into the kids spiritual wealth, which we talked earlier about the Jewish people and how they're the highest net worth per capita people group. Yeah, you look at the rich spiritual history that they passed down for thousands of years from generation to generation to generation. And so in our family, you know the stories of faith, the stories of courage, the stories of high character, I have those in my family that I'm passing down and we're creating new stories that we're passing down. And then the final one for me here on the generational wealth kind of holistic topic is one that you and I um, have some commonality with. And just physical health. If you're not taking care of your body, that is a major hindrance to long-term wealth. You know, your income generating capacity grows as you get older.
Speaker 5 (00:31:21) - We have this retirement mindset in a lot of our country, which I bought into, you know, in my thirties. I don't think it's as helpful as we may think it is if we want to continue to serve others. Our capacity to serve continues to go up throughout our lifetime as long as we're maintain faculty. And so to continue serving, generating wealth throughout our life, lasting as long as we can, putting things in place for the next generation. I wanna be around for a long time. I know you do too. And uh, it starts with taking care of ourselves.
Speaker 0 (00:31:54) - If I do invest well I'm sure gonna wanna be healthy enough to enjoy all of that. So it's really a symbiotic relationship. And you host an event. This year's theme is generational wealth. We're gonna learn about that in just a moment. But why don't you tell us just as a teaser, how does one prevent their generational wealth from getting frittered away? We know that often happens and the generational wealth doesn't really become generational wealth cuz often it doesn't last beyond one or two generations. The Rockefellers are a good example of what to do and keep wealth generational for example. But how do we prevent our wealth from being frittered away? Cuz there's a difference obviously between an inheritance and generational wealth
Speaker 5 (00:32:37) - Just practically for a moment for people that, um, are listening. Number one, you need to learn how money works and you need to get your wealth into assets and protect it from inflation and taxes. You know, those are the two biggest thiefs. So that's number one is, is you need to safeguard your money. Then once you have the wealth built and protected, it's really about passing on the character. That's really what it all comes down to because if you hand an ill-prepared heir a bunch of money, that is typically the worst thing that you can do for 'em. So it's passing on the character and instilling that and developing that in your heirs. There's different strategies for this, you know, you can recording the stories, some of the origin stories of grit, of resolve, of sticking with something until it is successful. Those stories inspire the next generations.
Speaker 5 (00:33:32) - Maybe they don't have the need for the same level of grit, but they can understand the diligence that is required to create and steward the wealth. So recording the stories people do family conferences where you know, if you're a wealth creator for your family, fly everybody in and have some meetings, you know, do it in a fun place, have some fun connected to it. You can have sessions where you're teaching the next generation about how to steward that wealth. You're giving not only the wealth but you're giving the mindsets and the tools of how to create and steward that. So again, goes back to character and the internal wealth that is needed to steward the external wealth, the the physical wealth, the capital and assets and everything.
Speaker 0 (00:34:23) - Oh yeah, that's some really helpful actionable stuff there. If you want to have what most people don't have, you need to be willing to do what most people won't do. Like perhaps these extended family get togethers and yes, that is important stewarding generational wealth. You can watch a a 30 minute video and learn something about taxes or inflation, but character can't so easily be taught. And this is part of what you are talking about at your upcoming event, generational Wealth 2023 in Lancaster, Pennsylvania. Tell us about it.
Speaker 5 (00:34:56) - This is our third year of doing, uh, this event. It really strikes a chord with our folks because typically the people that come to our events, they've bought the concept that wealth is not merely an external pursuit and if you don't have the internal wealth to go alongside of it, it ends up being pretty empty. So generational wealth, it's getting people together that have created and stewarded that and then sharing some of the real life stories. Dave Zuck is gonna be a speaker. He's uh, second generation in their family business now. Dave has a bunch of other, you know, businesses with their, his syndication and incredible money manager that he is. But this year his father actually has agreed to talk with us about how he started the family company. So I'm gonna interview him then I'm gonna bring up the four boys, Dave and his three brothers and what it's like taking the business from one level to another, successfully managing that in the second generation and growing it and how they're now passing it along to their children and preparing them to step into leadership.
Speaker 5 (00:36:00) - So I have a couple large businesses that are multi-generation that are gonna share like this also have Mitzi Perdue, I don't know if you've ever gotten a chance to know her. She was the daughter of the man that started uh, the Sheraton Hotels. So grew up in that family dynasty and then married Frank Perdue who created Purdue Chicken and today has, you know, 20,000 some employees. So she's seen from a couple different angles, family dynamics and family wealth that goes generation to generation and she's just a wonderful lady. Such a heart for other people and so full of life. I think she's in her eighties, she's a teenager, she's just so full of life. So she's coming, have a lot of amazing speakers and attendees that fly in from around the country. Last year we had about 350 people excited to see who shows up this year.
Speaker 0 (00:36:49) - See, this is why I wanted to talk about this event because I have attended so many in-person real estate events and masterminds and general investing events. And rarely, if ever do I see multiple generations come up on the stage at the same time to talk about how to do this the right way. Generationally, very few people in events just really think this long term. So I have to congratulate you in advance for putting this together. It's August 18th and 19th and again it is in Lancaster, Pennsylvania. Do you have any last thoughts Michael?
Speaker 5 (00:37:22) - So if people want to go to invest elevate.com, that would be a spot to check us out.
Speaker 0 (00:37:28) - I'm highly confident the future generations of your family will know you for more than crawling through a rural Lancaster County Pennsylvania cave.
Speaker 5 (00:37:36) - Yeah, hopefully my legacy includes more than our cave, uh, adventure, even though that was a blast. Last thoughts Keith. I just wanna encourage people to step out into what they feel in their heart to pursue. You know, it takes faith, it takes risk, but it's absolutely achievable. And so I hope my story has provided some encouragement to folks and if any of your people want to come to our event, we would welcome 'em with open arms. So thank you for today, Keith.
Speaker 0 (00:38:02) - It's a unique event in my experience. It's been great having you on the show.
Speaker 0 (00:38:12) - Yeah, as I've gotten to know Michael, he is a real go-giver now. He and his wife began with a single family rental home while they were still renters. Yeah, they owned that rental property before they even had a primary residence. I know a lot of successful people that have done just that. And then it sounded like for him, his third property, a 10 plex, that was the real pivot point. Of course, my pivot point was that very first purchase a fourplex. So for each one of us, the pivot point really came when we felt like we had massive access to other people's money. And you might feel like you have massive access to other people's money with just a 75 or 80% loan on a single family rental or duplex. If that's where you're starting, you don't need Rockefeller or Vanderbilt fortunes to get this going there at Invest Elevate.
Speaker 0 (00:39:04) - The interesting thing about their generational wealth event two months from now is how, from talking to Michael, he's actually not super motivated to have speakers there that are the most well-known names and Polish speakers, even if he has the chance to get them. Now you are gonna find some of those there, but he's interested in real stories, real people, and making a real impact with speakers that don't have some big marketing or sales agenda. And some conference attendees just want to meet the biggest names and get an Instagram selfie with them. And there's nothing wrong with that. You might even do some of that here, but he values real connection in meaning. And yeah, I've never heard of anyone else getting multiple generations of the same families on stage as he interviews them, including people that aren't used to speaking to an in-person audience of a few hundred people. Besides the generational component, you're also going to learn a lot about investing and meet a bunch of genuine, authentic people. That's the environment that he's creating. Gratitude to. Michael Manti Today it is Generational Wealth 2023 in Lancaster, Pennsylvania, August 18th and 19th. Check out invest elevate.com. Until next week, I'm your host Keith. We hold. Don't quit your day. Adrian
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