Speaker 1: Okay, so I just got finished being a guest on a podcast and the other guest on there came on saying that there’s absolutely no such thing as passive income and anybody out there that says there’s passive income available is a snake oil salesman and a con artist. I’m fired up today.

My mission is to help people break through all the noise out there. I want to help you get to actual truth. Don’t you just want the truth?

Shane W.: It just really pisses me off that people will go put this bad information out there. See, we’re living in an information age, but people just put shit out there. No such thing as a passive income. I tried to keep my cool. I really did. I tried to remain cool and asked the guy why he would say something so stupid. That probably wasn’t the best way of keeping my cool, but that was my response. I said, “Why would you say something so stupid?” He said, “I have tried everything under the sun to get passive income. Nothing works. It’s only active income period. You work, you save, you put it in the bank, then you retire, live off what you save for, or you’re just going to keep working. My generation will probably have to continue working until I drop dead.”

Really? There’s no such thing as passive income in any asset class whatsoever. His answer was no. And if I said otherwise, I was just a salesperson out for my own damn pocket.

All right, so let’s listen maybe to the ministry leaders. Ever heard of a guy called Gary Vaynerchuk? Most of you all are online watching this and see what he has to say.

Gary V.: Passive income looks like this. You take money that you can afford to go to zero and you put them into two places that have historically created passive income, public markets that you don’t care if it goes up and down and you just wait to the end or real estate.

Shane W.: Shocker. Some of us don’t like Gary Vaynerchuk. I’ve heard a lot of comments that he cusses too much. I really don’t give a crap, but whatever. I think his message is strong. Anyways, let’s listen to somebody else. What is Tony Robbins giving millennials as advice about passive income?

Tony Robbins: If you’re going into real estate and real estate with an income, is the one real estate that’s more valuable.

Shane W.: Wait, what did he say? What? Oh, there’s that. Okay. How about Barbara Corcoran? Anybody know Barbara Corcoran from Shark Tank? Can you guess what she’s going to say?

Barbara C.: If you’re in the game for a long term investor and I feel that there’s no replacement to being wise and knowing the real estate in your local area and buying a lot of real estate. I made much more money on the residential real estate I bought by accident than I did working 80 hour weeks building my brokerage business simply because I was smart enough to put a few dollars here and there as I went along the way.

Shane W.: All right, so you kind of get my point. Now what he told me was that he tried real estate and real estate is a scam built for the real estate agents. I wanted to punch him in the throat. That’s really what I wanted to do. But we were on a podcast and he’s in a different state, so that’s kind of difficult to do. But I really did want to punch him in the throat. I said, “Are you kidding me? It was built for the real estate agents. Really?” Yeah, it was built for the real estate agents. I said, “You said you tried real estate. What happened? Why don’t you tell me about that? How’d that work for you?” “Well, I bought a single family residence in 2007.”

Really? “Yeah. I bought a residence there. It was gonna be a rental. When I bought it, it was making $50 a month. Okay. Two years later, I’m now losing $100 a month on the property and the property’s value has dropped since I bought it. So I owe more than what it was worth it.” “So you did a two year adjustable arm rate and got a 100% financing on an investment property and only cash flowed $50?” “Right. And so 2009 I was losing $100 and by 2010 I was up to losing $200 a month, having trouble keeping it rented. I had to continue to drop the rent, so I just had to let it go back to the bank.”

Real estate is a scale just like any of the others. I said, “You know what? We’re going to put that to the side for a second. We’re going to bank that. I’m just going to put it over here. Tell me you said you’ve tried everything else. Tell me what else you’ve tried.” He started listing course after course after course that he’s taken online from these experts. I’ve taken this course and I’m taking that course. None of it has worked. “Really? Had you done anything?? “Oh yeah. I’ve made a little money here and there, but for the most part I didn’t make it up enough to make up for the course.” I went, “Well, that’s because you’re an idiot.”

Your problem with this guy is this guy went out and made one bad real estate move, 2007. By the way, I bought a house in 2007. It did lose value. I was underwater for quite a while. I still own the property and I’m more over water and it cashflowed the entire time, so don’t give me that crap. You just bought it wrong, which is what I told him.

Again, we were kind of getting a little loud so I doubt it will ever air. What this guy wanted was he bought that one bad investment property and then you went looking for the next sexy investment. What’s sexy? What is sexy? I want something that sparkles. I want to talk about crypto currency. I want to talk about penny stocks and how you can see these guys and sell courses online on how you can get multimillion dollars with paying stocks. I’ve seen people go to the bank, pull out every bit of money they have, like everything, cash, right? Go home, put it all on the bed, all these hundred dollar bills. This is money they might even took out a loan, put it on the bed and took some pictures for fake Instagram and Facebook so that they could say, “Hey, look, I’m living the dream.” Once the video cameras shut down they took it back to the bank because they had to live off of it.

It was basically bullshit, which is what this guy’s problem was. He was buying into other people’s bullshit instead of doing his own homework, getting understanding, getting a financial education. Kiyosaki talks about that all the time. Robert Kiyosaki definitely talks about it. You don’t have a financial education you’re screwed. I saw evidence of that today.

You know one of the highest paying dividends that I have? It’s a real estate derivative product. It’s called a tax lien certificate. I’ve made a bunch of money with the actual owning of real estate itself, a lot more than I have selling real estate, but the tax liens certificates making me upwards of 18% interest. How’d you like to earn 18% rate of return? And guess what? The county tax collector’s the one collecting that money for me.

Don’t tell me there’s not a derivative. You’re just ignorant. You’re chasing the next sexy thing. You’re not willing to put in the time and effort to do what it takes to actually create passive income. My retirement’s definitely rental properties without a doubt, and I know that passive income works because I see it every day from people that I work with. For my clients and for myself, don’t believe some of this hype. Quit buying courses. Start investing in yourself, buying properties.