Episode 144 – Ferrari Formula [8/7 Series BONUS!] with Brad Sumrok

Announcer:
This is The WealthAbility® Show with Tom Wheelwright. Way more money, way less taxes.

Tom Wheelwright:

Welcome to The WealthAbility Show, where we're always discovering how to make way more money and pay way less tax. This is Tom Wheelwright, your host, founder, and CEO of WealthAbility. We've been talking about government incentives. My new book, The Win-Win Wealth Strategy, goes through seven investments the government literally pay you to make. Just how big are they? What if those investments could actually, the incentives from the government actually pay for a new car? What if they can even pay for a Ferrari? This is actually the last chapter of my book, and I am very grateful and we're very fortunate to have, actually the person that chapter is about the true life example here, Brad Sumrok.

Brad and I have been friends for many, many years and worked together for many years, and it's just great to have you on the show, Brad. Thank you so much for coming. Can you just tell our listeners a little bit about you and your journey and where this came from?

Brad Sumrok:

Sure Tom. I'm really happy to be here today. Thank you so much. And I'm excited to talk about the Ferrari. That lights me up, man. It's fun, especially when the government pays for it. Who wouldn't want the government to buy or pay for a Ferrari? Right? Look, like so many people out there I wasn't born with a silver spoon. I never thought I would be in the position that I'm in right now. Just like Rich Dad Poor Dad teaches, my parents were barely middle class. They taught me to study hard, go to college, get good grades, stay out of debt, save my money, diversify my investments, and pray that I die before I run out of money. That was the paradigm that I was raised in. And then I read Kiyosaki's books and I took massive action and I sought out specialized education, because Kiyosaki says specialized education can make you a fortune and formal education could get you a job.

And so I went to real estate seminars and I joined a mentorship program. And at the time I didn't want to tell any of my friends because I was embarrassed. This was a five figure investment I made in myself, but it worked. And eight months later I bought my first investment property ever, and it was a 32 unit apartment building. And I'll just fast-forward. That was in 2002. In 2005 I quit my job because I had enough passive income from my apartments to cover all my bills. And so I was able to walk away from a six figure job in 2005. And then since then I've syndicated and I've switched from buying deals myself to syndicating deals for a variety of reasons that we could also talk about. But I've syndicated now over 10,000 units.

And a decade ago started a platform for educating and mentoring people that also want to syndicate apartments. That's my two businesses, is buying and owning apartments and mentoring others that want to buy and own apartments.

Tom Wheelwright :

We got together, if I recall, about five years ago. Give us a little of that story, Brad, of where that came from and what was going on in your life at the time.

Brad Sumrok:

When we met I was already a multimillionaire and had focused most of my time and energy on income. We were making a lot of money from apartments, cashflow, capital gains, buying, holding, selling over a three to seven year period, multiple transactions per year. And then we also started, me and my wife also started this education platform and that became a seven and eight figure company in terms of revenue. We were so focused on building and earning income that I had took my eye off the ball on the taxes. And when I met you, we had paid almost a million dollars in tax. And I even used to think because my original real estate mentors said there were four types of millionaires. And he said, the first type is when your net worth is over a million. I checked that box many, many years ago.

The second type is when you have a million liquid. I check that box. The third type is when you make the million a year. I check that box. And the fourth type he said was when you pay a million in tax. And so I even had it in my blueprint that that was the nirvana because to pay a million in tax must mean you're making, what? Three, four, $5 million a year. And so as our net income was going up, our taxes was going up, but I actually felt like, well, this is normal. This is okay. This is the way it's supposed to be. Until I was speaking at an event, and when I was done speaking and I shared that story, I went to the back of the room and I met this guy named Tom Wheelwright. And he was like, Brad, great presentation, but I don't ever want to hear you say again that you want to pay a million in tax and I could help you.

And so we engaged. I remember it was September of that tax year and it was September and my tax was due October 15th for the previous year. And that in those six weeks, Tom, I remember your team saved me $160,000 on a year that had already passed, because for the listeners out there, and they need to know that like October 2023 we're paying taxes for 2022. So there wasn't a whole lot we could do, but still somehow you guys found the way to save me that money. And then the next tax season that came, we paid zero. Zero. From 965 to zero.

Tom Wheelwright :

So why? What was the shift there? What did you do differently from 2017 to 2018?

Brad Sumrok:

Well, what we did is we started investing more of our earned income into buildings, because the depreciation loss is dictated by your financial investments in these deals. And so I was syndicating deals and taking carried interest in these deals and making income, but we were keeping a lot of our earnings in a bank or invested somewhere else in some conservative income fund or whatever. And when we started taking our earned income and putting it into buildings, our taxes went way down because our depreciation went way up. And we've been doing that ever since.

Tom Wheelwright :

So if you will, can you explain to our listeners what you mean by a syndication? Because I'm not sure everybody understands that term.

Brad Sumrok:

Yeah, so a syndication is a fancy term, and basically what it means is you're buying a deal, just say an apartment building, but it could be anything. Okay? You could syndicate anything. But in this case, we buy an apartment building. And I'll just give you an example. If I want to buy a $10 million deal is a rough rule of thumb, I need three million down of equity, a down payment, and then I'll get a $7 million loan. So a lot of people would say, well Brad, I can't do that deal because I don't have the three million down, so I'm going to get a flip a house or buy a duplex. But if I told you, what if I told you with that three million down payment that only 50,000 or 100,000 has to be yours, and you could raise money from other people and come up with a 2.9 million that you don't have yourself.

And let's say you raise 100,000 from 29 people or 50,000 from 58 people or whatever it is. And what that requires is that requires networking skills or being part of a community, being part of a tribe where people are wanting to invest in the same asset classes you are or having access to high net worth people. And there's a lot of ways to raise capital that I could teach people, but essentially it's you are buying a building with other people's money, Tom, that's what it is. You're buying a deal with other people's money, but then you're getting additional profits because you're the general partner, you're the managing partner, and you're the one finding the deal and analyzing the deal and raising the investment and securing the debt, doing the investor relations and managing the asset, overseeing the CapEx.

And because you're doing that work, you deserve to take a cut of the deal essentially, a cut of the deal. You get to take a cut of the deal.

Tom Wheelwright :

When you talk about a carried interest, because this term has been bandied about for the last several years as there've been new tax proposals. They say, we need to tax carried interest differently. We don't want to tax them as capital gains. We're going to tax them as ordinary income. So that carried interest you talk about, that's just you're taking a part of the deal when it sells, right?

Brad Sumrok:

The way we do it, and there's a lot of different ways to do it, then the simplest way to do it is, for example, I'll just say, look, for every dollar that comes out of the deal, and I take 20%, so I might take 20% of every dollar that comes out of the cash distribution. So if we are doing quarterly cash distributions, I'm taking 20% of that and then we sell, we're taking 20% of the upside. There also might be an acquisition fee at the closing of the deal. There could even be a disposition fee if you sell the deal or a refinance fee if you refinance the deal. And I'm not saying I've done all of these in every deal, but these are different ways that syndicators could get paid.

Tom Wheelwright :

Got it. So you are doing a lot of these syndications with other people's money, but the challenge is you weren't putting your own money into the deal, right? So you weren't actually investing a lot, you were investing a little, like you said, 100,000 maybe up to three million, but you weren't investing a lot of your own money back into real estate. Instead you were letting it sit in the bank or in a money market fund or something like that, or the stock market or whatever. So basically you were saving it instead of reinvesting it.

Brad Sumrok:

Correct.

Tom Wheelwright :

Got it. Fast-forward, so I remember you go, Tom, I want a Ferrari. And I said, great. So how are you going to pay for that Ferrari? And I remember you telling me, well, I got to put $95,000 down and then I'm going to get a loan for the rest. And I'm going, okay, cool. That's what most people would do. I'm going to actually draw this. So those of you who are listening to the podcast, I'm going to describe it for you, but I'm going to actually draw what that actually looks like on a financial statement, what Brad actually did here. So if we have over here, we have an income statement. So an income statement includes both income and expense, and then we have sometimes it's called a profit and loss statement. And then we have a balance sheet. And a balance sheet, these are two of the three primary financial statements that any business owner investor needs to understand.

We have assets and we have liabilities. And don't worry, this is also in my book. So you can actually go to The Win-Win Wealth Strategy in chapter nine and actually look at the actual drawings like this. So we have them here. So you basically said, well, look, I've got $95,000 of money, they've got. This is what most people would do. They had to earn that 95,000. So you had to earn that money, right Brad?

Brad Sumrok:

Yes.

Tom Wheelwright :

Okay. And then you go, okay, then I'm going to go buy this Ferrari. And it was, what? 285. Is that right? Do I remember that right? 285,000.

Brad Sumrok:

Yes.

Tom Wheelwright :

Okay. And so that meant that you had this $95,000 of cash that what you had to do is you had to then put that down and then get $190,000 car loan. So now what you've got is you've taken that 95,000, but the problem is, is that, your payment was, what? $3,500 a month?

Brad Sumrok:

Yes, it's about 3,500.

Tom Wheelwright :

So $3,500 a month times 12 months, that means that that's $42,000. So that means that every year you are going to have to come up with $42,000 to make that payment. And so the question is, okay, so where do I get the 42,000 on top of that, the 95,000? Typically we save that up, we earn it. And so now we're constantly in the hole. This is what the middle class does. They actually take their income and buy a liability. A Ferrari is a liability. It's not putting money in your pocket. It's technically a liability. And this is what I call the middle class trap. The middle class trap is I take my money and I actually go borrow so that I can buy something, and then I'm in HOK to the bank for that loan, and I'm basically a captive of that bank for the next five or seven years, whatever it is.

Well, so we were talking, I said, well, do you have the $285,000? And you said, yeah, yeah, you had the 285,000. So you could have just paid cash for that car. I said, well, what if you put the $285,000, instead of taking that and buying the Ferrari, what if you actually take that $285,000 and bought an apartment complex, which is what you did, you actually bought, this was actually a syndication that you were doing called Rosemont, right?

Brad Sumrok:

Correct.

Tom Wheelwright :

Called Rosemont. And so what you did was is you took that $285,000 of cash, you actually bought basically an apartment building. So let's redraw this, and I'm going to show you basically what happened here. Again, this is in the book, so you can follow this. But here's your financial statements again, you've got your income statement and your balance sheet. Income and expense.

Brad Sumrok:

Expense.

Tom Wheelwright :

Thanks, Brad. Assets.

Brad Sumrok:

Hey, I'm paying attention.

Tom Wheelwright :

Good to know. That's good to know. Okay, so you take your $285,000 and you basically said, okay, I'm going to buy $285,000 piece of you invested in that in real estate. That was your investment. But again, the bank, like you were saying, the syndicator, I can't remember, is this your syndication or somebody else's syndication?

Brad Sumrok:

Well, it was mine with somebody else.

Tom Wheelwright :

Got it. So you went in, you said, okay, I'm going to put this 285,000 in, but the bank's going to put in money too, but my investment's 285,000. And so you took the 285,000, bought the real estate, and the result was, from a tax standpoint, so this is what's really cool. So that 285,000 produced a tax deduction. This is amazing. This is what happened between 2017 and 2022. It's a little bit less this year, but you actually got a tax deduction, $260,700, based on the $285,000 investment. And that's because of that bonus depreciation, right? So this is a benefit. So in other words, instead of having to wait to take a deduction over a long period, you got take the deduction all upfront. So that's 260,000. Then you still did buy that Ferrari. So you still bought that $285,000 Ferrari, right?

And you had $190,000 that you could borrow from the bank, but you needed $95,000. And so the question is, where do we get the $95,000 down payment? Okay, well, when you bought that Ferrari, that first year you got a tax deduction of $18,000 on the Ferrari. Now that doesn't seem like a lot on $285,000 card, but that's the way it works in the United States. You don't get much, you're limited on the amount of depreciation on a car because it's considered a luxury. You're limited on the amount you can take, but still in total, that first year you had 278,700. Now you were saying that you do pretty well in your training business. So you're in that 37% bracket, right? You're in that top bracket.

Brad Sumrok:

Correct.

Tom Wheelwright :

So at 37%, if I multiply that by 37%, then that actually meant that those deductions were worth $103,000. Well, you only needed $95,000. So you actually were ahead on day one by $8,000.

Brad Sumrok:

Isn't that crazy?

Tom Wheelwright :

It is. That is just ridiculous. It's crazy. People will think it's ridiculous, but really the government's just saying, look, let me ask you a question. 2017 was their housing shortage in the US?

Brad Sumrok:

Yes.

Tom Wheelwright :

So when they passed that tax law in 2017, was that an attempt to stimulate building more housing?

Brad Sumrok:

Well, I think it was. And it's also an attempt to encourage us to invest in existing housing.

Tom Wheelwright :

Exactly. Because if you invest in existing housing, then other people will build new housing. So it all works together. And the idea is, did it work? Actually the housing crisis, not enough housing, that actually we caught up a lot in those last five years, right?

Brad Sumrok:

Yes.

Tom Wheelwright :

Here's the thing. These are government incentives, but these government incentives, while Brad gets to go buy a Ferrari with these government incentives, then you still, but the government gets what it wants, it gets more housing. And so this is a public private partnership, and Brad just decided he was being an, what we call a silent partner with the government, paying a million dollars in tax. And you just decide you'd rather be an active partner with the government and pay a lot less tax, but do the things the government wanted. Okay, so here we are. We still have a problem though. And the problem is that that's fine the first year, but the second year what we have is, we have this $42,000 expense. Okay?

So how are we going to pay that on an annual basis? You can still come up with the money to pay that mortgage. And the answer is, this real estate, this is the cool thing about real estate. The real estate actually put in your pocket, if I recall right, about $53,000 a year.

Brad Sumrok:

Yes.

Tom Wheelwright :

Hey, if you like financial education the way I do, you're going to love Buck Joffrey's podcast. Buck's a friend of mine, he's a client of mine, he's a former board certified surgeon, and he's turned into a real estate professional. So he has this podcast that is geared towards high paid professionals. That's who he is geared towards. So if you're a high paid professional, you're going, look, I'd like to do something different with my money than what I'm doing. I'd like to get financially educated. I'd like to take control of my money and my life and my taxes. I would love to recommend Buck Joffrey's podcast, which is called Wealth Formula podcast with Buck Joffrey. I hope you joined Buck on this adventure of a lifetime.

So now we have 53,000. Now, again, we don't get all the deductions. We took all the deductions up front, so we're going to have to pay some tax. And the tax we calculated on that was about $8,300. Okay. So the tax every year on that 53,000 net of all of the deductions for the real estate was about 8,300. Well, so what that means is over here we have $53,000 of income coming from there, but we have an expense of 50,300. You're actually in the black, meaning that you actually come out ahead $3,300 a year because you used the money to buy an asset to pay for your liability. Is that right?

Brad Sumrok:

Yes.

Tom Wheelwright :

So that's effectively what happened. Okay. So the last thing we want to know is of course, is how do you like driving that Ferrari?

Brad Sumrok:

I love it. I love it. Every time I get in it, I smile. Every time I start it up, I smile. Look, Tom, I know you didn't ask me this question, but I wanted a Ferrari for a long time, but I was afraid to be judged. I was afraid that people would think, what a douchebag, he is got to be showing off buy a Ferrari. So actually my previous car, as you know I lease an Aston Martin because it's more James Bond. It's so sophisticated, and it's a beautiful car by the way. But it ain't no Ferrari. I'll just tell you, it ain't no Ferrari. And for three years driving that Aston Martin, I wish I had a Ferrari. So when that lease was up, I'm like, okay, the number of days I have on this world are not increasing, they're decreasing, and I'm going to get the car that I want.

Tom Wheelwright :

Here's the thing, what I love about this whole example is, all right, so we have that $42,000 a year payment. And how long's that loan?

Brad Sumrok:

I think it's five years.

Tom Wheelwright :

Five years. Okay.

Brad Sumrok:

I think it's a five-year loan.

Tom Wheelwright :

So after five years, you own that Ferrari free and clear, right?

Brad Sumrok:

Correct.

Tom Wheelwright :

Okay. But the real estate, you still own.

Brad Sumrok:

Correct.

Tom Wheelwright :

So while you'll basically break even for five years, at the end of that five years now you got $53,000 coming in and the only expense is the tax expense, the $8,300 tax expense. So now you've got a $45,000 positive cash flow. So basically what you've done is you've actually, because you wanted the Ferrari, and you go, okay, I want the Ferrari, I've got to find the money to do that. The government effectively gave you the money because you were willing to do what they wanted you to do. And now not only after five years do you have a Ferrari, but you've got $45,000 of income every year.

Brad Sumrok:

And that apartment building in five years will probably be worth more than when we paid for it. Now, I know people listening to it right now might say no, because markets are down, but it's like, look, yeah, it's temporary. I bought stuff in 2008 that went down in value, but it was back up in value later. So it will be worth more than we paid for it in five years. And the cash flow might even be higher than it was when we bought it in five years, and which is not typical of many cars, but used Ferrari's with naturally aspirated engines actually are going up in value right now, not down. Which isn't why I bought it, by the way.

But there's a difference between buying a brand new Ferrari, which will go down in value and buying a used Ferrari with low mileage that has some rare features that aren't even available in the new makes now. So somebody told me I could sell my Ferrari now for easily probably 30 or 40,000 more than I paid for it if I wanted to sell it.

Tom Wheelwright :

If you wanted to, but the reality is-

Brad Sumrok:

But I don't want to.

Tom Wheelwright :

Why would you?

Brad Sumrok:

I don't want to sell it.

Tom Wheelwright :

Why would you do that? It's just a great story. And here's the great news. It doesn't have to be a $285,000 Ferrari. Literally you can do it on a $60,000 Tesla. Okay?

Brad Sumrok:

Exactly.

Tom Wheelwright :

The same numbers work, you just have fewer zeros. So it's the same principle. And this is the thing, this works for people. As long as you're paying tax and you're in that high tax bracket especially, then the government's saying, look, we will incentivize you to go into certain things like energy, food, housing, business, those things that we go into, those seven investments I talk about. And in exchange you can do whatever you want with the money. You just chose to use that money on Ferrari, you could have put it back into another building. You could have bought a house with it. All sorts of things you do. But the reality is, but now it's your money.

Brad Sumrok:

Correct.

Tom Wheelwright :

So tell me the difference between feeling like I just paid a million dollars in tax and I'm not paying anything in tax.

Brad Sumrok:

Tom, come on, it's transformational. I can tell you what we started doing though.

Tom Wheelwright :

Please.

Brad Sumrok:

Because we started putting a lot of that money into charity. I never believed in giving 10% to a charity or a church or anything like that because we just grew up where money was scarce. And when I started making six figures, money was still scarce. I leveled up my expenses to my income, and I just never felt I had enough for myself yet alone to give away. And maybe that's a shortsighted view, but that's how I used the feel. But when you helped us reduce our tax burden down to zero, now we felt like we have an obligation to do something for other people. So we have now contributed over a million dollars to charities since we stopped paying taxes. So that feels good too, because now we're not only making, first we made a difference in our own lives, then we made a difference in the lives of our mentees that invest in our education programs, and now we're making a difference in strangers lives that we've never met across the world.

Tom Wheelwright :

There's a lot of discussion right now about tax the rich and these incentives they're just loopholes and the rich are greedy. Your thoughts?

Brad Sumrok:

Well, I used to think that too when I wasn't rich. I did. But when I shifted from, I grew up barely middle class, and so the prevailing thought was rich people were greedy and maybe they're cutting corners and they deserve to pay more in tax, to now I'm an entrepreneur. And when I was going through that transition, it's like we're the ones that produce, we're the ones that create jobs. We're the ones that create housing like in my case or make housing better and cleaner and safer. I have a good friend that lives in Norway, for example, which is a beautiful country, low crime, free education, free healthcare. It seems like a utopia. But then when I went there, he said, Brad, listen, a third of the people in Norway are in the private economy, a third of the people work for government and a third don't have a job.

So 33% of everybody employed in Norway works for the government, which is huge. Only 33% work in private industry. And those 33% that work subsidize the 33% that don't work. He told me, he said, my sister is 61 and never had a job, but she has a house and a car. And I'm like, how does she have a house and a car? And he's like, the government gives it to her. She has universal basic income. She doesn't have to work. And she has a house and a car now, not a luxury house and a luxury car, but she gets free everything, free income, free house, free car, free education. And he's in the private sector working his ass off. And he's telling me how there's no incentive to work harder because whatever he makes, 70% of it is going away, like 70%.

Tom Wheelwright :

Wow.

Brad Sumrok:

So we don't want to have that in this country.

Tom Wheelwright :

No, no. And the reality is, most countries actually, Norway maybe being a little different, but most countries actually follow the same pattern, is that the government is incentivizing certain behaviors. And here's the thing, I think one of the things, Brad, that I think people miss is they think that the economy runs on consumption when in fact the economy runs on production and not consumption. That it's really, the reason that you got tax deductions for investing in real estate is because you were putting that money to productive use. When your money was sitting on the sidelines in the stock market in a bank account, it wasn't in productive use. But when you put it into productive use and took the risk and made the effort to actually invest in something that was productive for society and actually created housing for, if you got 10,000 doors, that's 10,000 people that have housing, in part because of what you've done with your syndications and your investments.

And so I've been saying for a long time now that I find that people who the more tax you pay it's because you're not generous enough. When you're generous and you put your money back into productive use, and what you did to you is made you more generous. So if you would, just for a couple of minutes, talk about your wheelchair charity, because I love this. Brad's talked about this at his seminars. How many wheelchairs have you provided? Central America, right?

Brad Sumrok:

We've done Mexico and Central America. Yeah.

Tom Wheelwright :

How many wheelchairs?

Brad Sumrok:

I can't think of the number, but a wheelchair right now is about $200 plus or minus. And boy, here's what I can tell you. In the last six months alone, we contributed $350,000. So that's like over 1700 wheelchairs. And that's in the last six months. So in the last four years, that's probably been 5,000 wheelchairs. And every wheelchair changed the lives of not only the recipient of the chair-

Tom Wheelwright :

But the caregivers.

Brad Sumrok:

But the caregivers. And a lot of these poor areas of Mexico, Nicaragua, Guatemala, Ecuador, that we've been to, the people getting the chairs are really poor. The chair might be $200, and that might be literally a monthly or a quarterly income, annual income. Maybe they make $200 a month or less. So for them to get that chair, it's a big, big deal. And that's why I decided to back this charity because my mom passed from Alzheimer's and I thought about contributing to that. But I don't know where the money goes. I don't know how much of that actually goes toward research and the patients versus the organizations. And look, I get you need to keep the lights on and you have a staff.

But the thing I liked about the wheelchairs is that it was a volunteer organization. The people doing it did not take a salary. They all did it out of volunteering and the goodness of their heart. And they're all entrepreneurs that I know, by the way, people that I know and like. And they started this wheelchair foundation called Chair the Love. C-H-A-I-R the Love. And they're all volunteers. There's no overhead. Maybe now they have one employee because it's getting bigger and they need somebody to admin it. But you send 150 bucks, it used to be 150 bucks a wheelchair, now it's maybe 200. But you could change five lives with a $200 donation. Why is it five? Well, there's the recipient and the caregivers. So on average, the wheelchair is changing five lives.

It's giving somebody the gift of mobility. When we go to these countries and we put the people into their new chair, to tie it back into the Ferrari, I always tell people, or I ask them, how do you feel now that you have a new chair? For some people it's their first chair ever. And I say, how do you feel? And one guy said, and it's red by the way, it's a red wheelchair with black tires. And he said, I feel like I just got a new Ferrari.

Tom Wheelwright :

That's awesome. I love that. This is the thing, is we have a choice, we can give our money to the government and let them decide how to spend it, or we can actually do things the government wants us to do, and then we can decide how to spend that. I just think that, I love that charity, I love what you're doing with the wheelchairs, and I love that what you found is that it allows you to be more generous because you have more resources to be more generous with. So if you could give two or three just quick pieces of advice to people who are thinking about, okay, I want to be more productive, I want to do something productive, doing something the government wants. What would you tell them?

Brad Sumrok:

Well, look, the advice I'm going to give is what I do for myself. Okay? And one is there's a lot of ways you can make money. I prefer apartments for a lot of reasons. The first thing I would say is invest in yourself. The best investment you're going to make is yourself. So if you're listening and you have a job and you want out of a job, or maybe you went and got a degree or two or three, and you still find yourself in a rat race situation or spinning your wheels or experiencing burnout, which are what a lot of my friends that are still in the corporate world are feeling. Or just feeling unfulfilled and unsatisfied or feeling like you should have done more in your life than you've achieved. The first thing is there's still hope for you, but you got to invest in yourself.

Some people stopped investing in themselves since the university days or they go to continuing education for their job. But go to a seminar, go to a conference, find a way to start a business. When I started, I went to a conference, I hired a mentor. So specialized education and mentorship or powerful proximity is power. You become like the people you spend most time with. So if you're spending time with people that are miserable or that are unfulfilled, or that are working paycheck to paycheck, and that's your circle of friends, it's hard to break out of that. So you need to invest and put yourself in a different room, put yourself in a room, go to a mastermind, go to a conference, find other people that are doing big things and learn and be inspired by them. And that's what we do for apartments.

People that come to our trainings, Tom, you've seen it. They come with no previous experience, or maybe they're flipping houses or doing small deals, and now they're around people that are doing big things. We're buying big deals, 100 unit plus deals for first time students. And we're buying big deals. And we're changing lives, not just our own. Yes, we are changing our own, but then we're changing the lives of our investors and we're changing the lives of the communities. So you got to invest in yourself, invest in mentorship, get in the right room and take action. That's the biggest thing I could say, is take action. Get educated and take action.

Tom Wheelwright :

I love it. I love it. Thank you Brad Sumrok. Sumrok Multifamily Mentoring. Correct?

Brad Sumrok:

Yes.

Tom Wheelwright :

What's your website? Where do we get more about you?

Brad Sumrok:

Look, it's just bradsumrok.com. Sumrok Multifamily Mentoring is our company name, but we don't use that in any of our branding or promotions or whatever. It's bradsumrok.com. There's no C in my last name. It's Brad Sumrok on Instagram. No punctuation. I found out that I have three or four imposter accounts. It's Brad Sumrok on Facebook. It's Brad Sumrok on LinkedIn. And Tom, can I mention an event that we have coming up?

Tom Wheelwright :

Yeah, do. Tell us about the event you have coming up in August.

Brad Sumrok:

And you're probably going to be there. You're here every year.

Tom Wheelwright :

I hope so.

Brad Sumrok:

It's our 6th annual Apartment Investor National Conference. Everybody that's been there, and it's our sixth time doing it. It's the best multifamily conference in a year. Every single year.

Tom Wheelwright :

It is.

Brad Sumrok:

And why is it the best? Is because, number one, I teach a lot of the conference, but number two is I bring in some amazing guest speakers. Amazing. And people that have been there on our stage in previous years have been, you've been there. Robert Kiyosaki has been there. Grant Cardone has been there. Ed Mylett has been there. Daymond John has been there. Jesse Itzler has been there. He is a billionaire. Okay? We've had some really big name people. And so not only are we teaching concepts about apartments and syndications, but we're teaching concepts about business, about entrepreneurship, about success. And when you combine those two, when you combine what I know and teach with apartments indications, with some of the advice that we get from people that are worth hundreds and hundreds of millions of dollars that are two or three levels above many of us, it's just the most powerful event that exists on the planet.

Tom Wheelwright :

Well, I love it. I love it. So again, the dates are?

Brad Sumrok:

August 25th, sixth and seventh, Dallas, Texas.

Tom Wheelwright :

There you go. August 25th, sixth and seventh. bradsumrok.com. Thank you, Brad. Thank you everybody. This is a little lighthearted talking about how to get the government to pay for your Ferrari, but it's really the culmination of understanding how critical reducing your taxes are to giving you some freedom in your life. Whether it's freedom to go do charitable causes like wheelchairs in Mexico and Central America, whether it's freedom to do things for your family, whether it's freedom to do things for others, that's what it's about. And just remember, when you actually do things that the government incentivizes you to do, you're always going to make way more money and pay way less tax. We'll see y'all next time.

Announcer:

You've been listening to the WealthAbility Show with Tom Wheelwright. Way more money. Way less taxes. To learn more, go to wealthability.com.