Brian Lauchner:
It is not every day that you meet a best selling author. So stay tuned.
Brian Lauchner:
Well, welcome back to NoteSchoolTV. I'm Brian. I am here every Wednesday at 11:00 AM central when we do note school TV. And so I'm really glad that you're joining us today. If this is your first time and these videos are valuable to you, please go. And like these videos, it means a lot to us. We'd love for you to subscribe to the channel, to get as much content as you possibly can. And specifically for NoteSchool what you should do is click that bell notification so that you get notified when we go live so that you can participate and engage with us during NoteSchoolTV, bring your questions, bring your thoughts, your opinions, and we're even going to have an after party at the end. So stick around where we can kind of chat a little bit more and engage with you and your questions and stuff like that.
Brian Lauchner:
If it's your first time to to NoteSchoolTV and you're trying to figure out what's NoteSchool, and what's this whole thing about, and you're just trying to figure out what's next and kind of, where can I learn more? I'd love to invite you to come to www.NoteSchool.com/TV to just learn a little bit more about what NoteSchool is, what we're about and and kind of how you can get engaged. And so we've got a very special guest today, but before we do that, we want to talk about some of the hot topics. And so I want to bring on my good friend, Joe, to talk about the news.
Eddie Speed:
Good morning, everyone. And good morning, Brian, how are you today, man?
Brian Lauchner:
I'm doing good. My man. What's the hot news you got today?
Eddie Speed:
What is the 911, right? Well, it's as always in the housing and the mortgage business, it is nteresting news today, right? So in our first piece here from M Report him report, as you can see there CoreLogic, Case Schiller reported yesterday, and this is just just pop in yesterday that home prices surged 10.4% in 2020, right? 10.4%. This is the first double digit increase since January of 2014. But the really interesting part of this guys is that home prices were up between November and December were up 0.8, 5%. So almost 1%, which is the largest increase in home prices since Case-Shiller started in, CoreLogic started keeping these data points. Right? So that is huge.
Eddie Speed:
So then we look at the housing supply, right? Why are prices surging? Well, obviously there's a housing shortage, right? So the number of housing, houses for sale, according to Redfin on multiple lists is 696,312 that's it's down 44, almost 45% guys, 44.8% year over year, newly listed homes are down 10.2%. Median days on the market are 34 days, which is down 22%. So they're flying out of the, you know, out of the, off the wall and number of months supply is 1.6. So folks, a healthy, real estate market is considered there's about three months of supply on the market. So meanwhile, back at the ranch, 2.6 million homeowners are in forbearance still, right? And then on top of that, another 2.1 million folks, or in some state of default, right? They're past due, maybe the pro the, the foreclosure process hasn't been started, but there's about 2.1 million that are in default.
Eddie Speed:
So what does that mean, guys? That means that about 9.9% of mortgaged houses or in some state of disarray, right? There's about 53 million mortgage townhouses in the, you know, in the, on the books single-family homes at any given time. So if we've got 4.7 million, that's about 9% of mortgage Psalms or in some sort of disarray. So we've got two different economies. What does that mean when you for you guys, for us, it means when you find a place, right, when you find a house, there is no problem selling it right? Now, here's the other piece of that. And this is something that we've been talking about, right? We've been talking about it very, very seriously over the past. Well, little while, right? Almost seven, eight months. So this was just announced that almost half of US counties at above average risk for increased rental property defaults.
Eddie Speed:
And here's the interesting part of that is that almost, and we know this we've been talking about this, so almost 90% of these properties of this 22.1 million single family. We're not talking about apartments. We're talking about single family rentals, almost 90% of this 22.1 million single family rental houses are owned by mom and pop investors, right? Which own, we know less than five houses, five to 10 houses, according to Realty Track. So guys, what does that mean for you? We've been talking about and Eddie, if you want to jump in here and can talk about this real quick that would be, that would be great, but what this means for us guys is that there, these folks have felt the pressure, and there's never been a better time to work with Burnt Out Landlords right. B O L's.
Eddie Speed:
Yeah. Hey guys, there is no doubt that there's a couple of things that we place, I have value. And that is that you, see that we put a lot of energy and time into data and we scrape data every week. And Joe obviously is involved in it as in some other executives in our company. And the reason we do that is because you can make good decisions when you have information. We find that a lot of real people involved in real estate, or maybe reading the headline of houses are on fire for sale. And that is a true statement for sure, but there's also some distress in the market.
Eddie Speed:
And if you're looking to buy something or deal in the market and find a void in the market that you can fill, you need some data to know where that is. So that's obviously why we play such a value on that. And we will continue to do that as this market shifts, if you know, real estate is on fire.
Eddie Speed:
Real estate is on fire as evidence. And we are certainly in a hundred percent agreement on that. My friend, so well, I'm really excited. Eddie, Brian.
Eddie Speed:
It's a big day. I told our team before we started the recording. I said, I literally, I woke up this morning thinking about this interview. And I was like really excited. And I have a long history with this guy, so I know him really well. And I'm just so excited for him to come on and share just just a gift to people that are willing to accept it. And that is this new book he's written and the wisdom and the vision that I think that you're going to learn from that. So I am very, very, very excited today to introduce a long friend of mine and a man that I would tell you in every aspect that I truly trust and admire his integrity, his vision, his clarity. And let me tell you something, he is one smart investor. Absolutely he is. And I just, I can't think of anybody that I would define as more well-rounded and a guy that, that I would want my kids to learn to be like, than Dr. David Phelps.
Dr. David Phelps:
That was very kind of you, sir. And, you know, the feelings are mutual. We'd known each other for many, many years and we've enjoyed watching our families grow and mature and the generations expand. And I think we all get to a point in life where yeah, the doing of the thing, whatever we do then they can have the money. It's all great. It could be fun, exhilarating, but I believe there's more. And how do you put those things together is really kind of the construct of my book. What's your next? So, thanks for having me. I appreciate it.
Eddie Speed:
You know, David, before we talk about the book, one thing that's sort of ironic, and I was sitting here doing some preparation this morning. I got to be a big part of a next for you. And that was because that was when you sell your practice.
Dr. David Phelps:
Yeah.
Eddie Speed:
And we hung out together a lot and you were very involved in the NoteSpace and doing that and still are, but certainly deeply involved in it back then. And I was really thinking about it. Like you talk about these next in your life and that was exactly at a point of view as to where you were.
Dr. David Phelps:
Yeah. You know, I look back at it the same way and you know, my, my situation was, you know, I definitely had a void in my life, not a bad boy at that time. And we can talk a little bit about that, but I think wherever people are in life is one of the big things that have helped me gain more clarity about what I could shift to. What I could adapt to is, is people. And I value my relationships with different people, different circles of people. You know, we can talk about, you know, circles of influence and, you know, every one of us has, you know, a, probably a tight group, maybe a group of five, you know, you're in the center and there's five people, you know, who they are in your life, the people that you need to probably talk to on a regular basis, you hang out with, they, maybe they've been longtime friends.
Dr. David Phelps:
Maybe they've been fairly recent, but there's some common bond there where you keep up a regular pulse and there's another circle out from that still awesome people, right. And that you've connected with and you maintain some, some connection with wherever that might be. And there's, you know, there's, so there's different circles and there's all people that you can utilize in a mutually beneficial way collaboratively. And when I was in that void place, you know, me, I've always loved real estate. I mean, I probably, I, should've never gone into dentistry. I should just real estate, but I couldn't help myself. So I came back, you know, but I hadn't been in the business of real estate and I always enjoyed what, what you've been able to do. Kind of like living vicariously through, you know, I'm in the dental office and you know, and I'm seeing patients and I can't wait to get a procedure done because I want to go back and get it, my HP 12 C and run numbers, because you've got to be so involved in it, looking at how can you make your money work for you?
Dr. David Phelps:
And here I am, I got to go back to the chair, you know, and look, I'm not complaining here, you know, earn a thousand bucks by doing a crown and a root canal on somebody. Well, okay. That's great. What are you complaining about David? Well, I got to get up and go do that again and again and again and again, how can I get capital working for me? And so real estate was always the thing that I loved. And so when I would have that void, I go, well, I don't really know the business of real estate. I know how to invest, but how can I like get more involved there? And so we just, you know, opportunity time you had a place I just said, Hey, kind of going back to my whole mantra is in life is don't look for the return on your direct trade time on creating time for dollars. I came to you. I didn't say Eddie, I need a job. I didn't say I didn't say Eddie because you're putting me on the payroll. I promise I'll be a good worker. I said, Eddie, I'd like to come volunteer because I wanted to learn more about your knowledge base and what you did, because I, and again, not knowing where I want to go. I would just, it was an opportunity. Like, I'd never like, finally I can go do this. You know? So it was, it was huge.
Eddie Speed:
It was great. This was around 2008 guys. And so this was and so David and I worked together. He was deeply involved in what we do and help really form a lot of things that I would have in my mind. And I could talk things out with David. So David, you have written other books, right? And we're going to talk about your great new book today, but you've written other books and you've written this awesome new book. What's your next. And I just cannot encourage you guys enough. This book really, really is a masterpiece in basically thinking about beyond where you're at right now. And I've seen David Phelps live it, I've seen him, I've seen him execute it. I've seen him take lots of people in the direction of understanding how to go pursue what you're next. So what was your inspiration for it?
Dr. David Phelps:
I had written have written other books, Eddie and most of those books were based on more technical aspects of what I've learned in real estate and, you know, bringing those technical aspects and kind of the, how tos and the strategies to the people that were kind of my affinity group, which are professional practice owners and doctors and dentists. And that was fun to kind of take the things I learned and take it to a group of people who I knew wanted to be more passive investing, whether it was an equities or, or notes and just show them there was a better way. So that was fun. But what I realized was that as, as I was having an opportunity to weigh into people's lives and help impact their lives, that my message was just organically starting to change. I'll always love the real estate and the technical part in a lot of the orchestration of deals.
Dr. David Phelps:
And I mean, I get, but I realized that my message was actually saying real, estate's a vehicle. It is, it's a great vehicle. A lot of my people don't want to get into the business of they want to know how, how can I connect to real estate? How can I connect to people who are in the business and kind of ride along or joint venture take participations. And so I realized that I need to start speaking to a larger message about, well, what does real estate really do for you? I mean, what can it do for you? Well, I can, it can make me more money. Yeah. Make me more wealthy. Yeah. But, but what does that mean? I mean, what does having more money? And so that's why I started thinking about my own life is money or wealth is an exchange for what we really want.
Dr. David Phelps:
And to many people, not wrongly. I mean, you have to focus on metrics and understand the numbers. You have to be profitable. What you do, you can't put that aside. But to me, people get focused on, well, I need to create so much money or so much cashflow without being specific about what that's going to do for them. And so when you're specific about what your goals really mean, then you can back in to the strategies or tactics, the vehicle in this case, real estate that we all love and say, well, now how can I mold that into what I want, what my family what my wife and I want without that vision and clarity, everybody, I don't care who you are. You're not on a treadmill, you're on a treadmill making a lot of money perhaps, but how are you gonna see that to fruition, to what you really want? That's why I wrote the book, because it, again, wasn't some magic that I came up with. It was just understanding what I went through and then what I've seen through the eyes of other people and kind of putting these things together in a book that I hope gives a message that resonates with the readers. Yeah. And one thing David, I think is important is you are a dentist by training. You're a very seasoned, creative finance guy and real estate investor by experience. Right. so those are two things and you and I are in the same age bracket. Right. But, but who did you write the book for? Was there a target audience?
Dr. David Phelps:
Yeah, it was. I wanted this book to be multi-generational. So I, as I said, I wrote books in the past that were mostly targeted towards professional practice, new business owners that, you know, were down the road in life. And I thought, what if I could write a book that would meet the, the needs, desires, the questions, the challenges of multiple generations, you know you've got young family members that are, you know, started out, you know, they're on life path right now. And I know a lot too. And, and I remember as a freedom founders, mastermind community, they've got young sons and daughters who are just getting started in their life. Well, what if I could sow into them? They don't have to go into real estate. They don't have to go into dentistry. I don't care. I want to give them some frameworks to look at life in a different way, because I think too often that society and well-meaning people, parents, teachers, professors in school you know, kind of set a standard.
Dr. David Phelps:
This is what success looks like in life and have that standard. You need to do certain things. You need to go to school and get certain grades. Well, I'm not against going to school and having grades or going as high as you want to on the educational opponent. I'm not against that, but you need to have a reason why, because today is, as we all know, young people are coming out of school, college, graduate school with enormous amounts of debt, probably with not a really good game plan as to why they went, except that, Oh, that's what you're supposed to do to be successful. Well, we know a lot of people who didn't go down those marching orders and actually I think live lives of more freedom than those who actually went into these highly specialized areas. Again, I'm not demeaning any of that, but the point is, you've got to have clarity and not just go down a road that that says, this is the way you do it. This is the way the majority does it. I think that's wrong.
Eddie Speed:
You know, David I'm a big fan of predictive index. And I'm 61 years old. And my predictive index says, I'm a captain that probably wouldn't shock you. Right. A lot of Maverick. Okay. So, but you knowing me deeply, that is who I am, but what if I were 25 years old and I didn't know who I was, and I spent $50,000 a year on education to go get an education and something that I wasn't included to do. Right. And so there's just a suggestion that I think this book really does a great job of helping people seek and discover their next right. And so I wanted to just get you to talk about that and why? David, why is that important?
Dr. David Phelps:
Because again, I think when we're at any stage of life, particularly when we're young and we're kind of looking ahead to when we're going to be adults and start living as individuals and responsible and starting families is, you know, we have a certain vision about what that looks like from, you know, looking up at our families and our parents and other people we think are quite successful. We have a vision of what that looks like and whatever path we go down, which means, you know, your career path, your technical training path, whatever it might be, you get into that thinking that's how you do it. And working hard and perseverance are great characteristics. You, you can't get anywhere in life without them. And there's a sacrifice period that I believe we all have to pay in life unless you happen to be a trust fund baby, which I don't know many of those Eddie, but there's a sacrifice period.
Dr. David Phelps:
You've got to put in the time, the effort you've got to sometimes do some manual labor. But I think as quickly as possible, and this is what I try to tell young people is to get away from the trading time for dollars and actually create acquire, build assets that will produce income revenue cashflow for you, without you having to be involved in the management or the doing of that thing on a regular basis. Now, if you love doing it fine. So what does that mean? Well, capital I love capital assets. So we're differentiating, obviously between stock market financial assets, stocks, bonds, annuities, mutual funds, index funds. That's fine. If people feel like that's going to get them there, I never believed in that. I believed in tangible assets. So capital assets would be businesses, but businesses that don't require your full-time attention.
Dr. David Phelps:
And I mean, unless you love it, but that's not passive revenue. That's showing up every day and making things happen than, than businesses that are more passive, or you have a participation, you have ownership, but you have other people running them some of the time, most of the time. And then of course our real estate assets, the tangible assets, but I love more than anything because there's so many ways to create that income. So that's really well, I went a long ways away from your question. Didn't I bring me back.
Eddie Speed:
Well, I mean, the thing, the thing is David, I appreciate the fact and we, and you you've mentioned real estate and you've owned as many notes as you have pieces of real estate. I'm assuming, is that a fair statement?
Dr. David Phelps:
Yeah, probably pretty close to an even ratio. Yeah.
Eddie Speed:
So, understand you've done both sides of the spectrum. It doesn't re we know it really probably doesn't matter. I think notes are more passive than real estate, and I think there's a chapter in the markets that kind of lead us one way or another. So there's something else though that I thought was really important that you talked about in the book, because you and I are gigantic fans of self-directed retirement accounts, right. I mean, you and I, if people that have educational platforms, we talk probably as much about that subject is just about anybody in the market, right. Is there a place for the word retirement, you know, in this society? Well,
Dr. David Phelps:
Not in my world, you know, that's an old construct that came out of the industrial age where people, you know, went to work as employees, as workers worked on factories and, you know, there was it was, it was a model that said you work X number of years to get to your quote retirement age. And then you had some kind of a pension plan many, many, many years ago that you were supposed to write out your golden years. See, that's so backwards today. I think we should just obliterate the word retirement, because I think you can't, if you want to use the word retirement, but say I'm gonna retire from this model of my life, this phase in my life, but on the right retire into my next part of the book. Right. but I don't like it where I say you should always be evolving.
Dr. David Phelps:
You should always be wherever you are, whatever you're doing right now, you should be thinking about what other passions skillsets collaborations could I be setting up or doing, you know, even on a part-time basis to give me additional opportunities so that when I either want to iterate shift pivot, or I need to, because the market changes something in my industry, changes, something happens, happens to me or my family. You've got to have the ability to shift today more than ever. And if you just stay in one specialized model, what you were trained to do the hats you were told to wear, because this is how you behave. When you're this, that, or the other butcher Baker candlestick maker, you can't just rely on that one thing. You've got to have plan B's, multiple strings of income, multiple opportunities to adapt. And I think that's where we get it wrong in life.
Dr. David Phelps:
As this factory model, you go do this one thing, you get good at doing that. You trade time for dollars, and then you're supposed to like retire. And too many people don't know what they're gonna retire to. So besides the financial barrier, to be able to quote retire there's also, well, who am I now? I'm 60, 65 years old. And I'm still healthy, what do I do? Never even thought about that. Right? It's this just seems like it's so far off for many years and yet the time travels quickly. So I never believe in retiring. I think we should always be evolving to what's our next.
Eddie Speed:
That's awesome. All right. So look, I do an after party. I'm going to take an area that you talked about in the book, five freedom assets. And I'm going to get you to talk about that. We'll finish the show, but in the after-party I'm going to talk about it. Would you name those really quick though? And we'll talk about them more in detail in the after party.
Dr. David Phelps:
Yeah. Five freedom assets, five assets you should consider investing into always have your next in mind. So number one is investing in yourself. Self-Education is the big one. Number two, investing in your business, whatever that might be. Number three, investing in relationships. We talked about that earlier. Number four, investing in capital. I'm talking about more, your capital. That's going to be more passive investments, your investment in making your money work for you. And number five is investing in your legacy, which to me is your purpose, your real meaning in life, you know, how are you having impact? So those are the five.
Eddie Speed:
Awesome, Okay. So I know we've got some slots I want to I just wanted to show this real quick. So I was very honored that David did send me a book ahead of time and a pre-launched book. And thank you so much for that. And also David did something else which is not surprising of David Phelps. So I wanted to just pull that slide up and talk and just get you to talk about that a minute, David, because that really that's a Go-Giver mentality right there.
Dr. David Phelps:
So, we wanted, you know, I just mentioned legacy and impact, and I think, you know, we can be having impact every day of our lives just by how we touch people, how we talk to people. So it doesn't have to be something major, but we thought in setting up this book with what's your next, how can we have some impact? Now we chose Tanzania. And here's why, the connection is a couple of our team members. Alex and Robert just use our first names. Three years ago, took a young man who was blind and had some physical issues from cancer who wanted to peak hike and peak Mount Kilimanjaro, Tanzania. Alright, this young man has physical disabilities besides being blind. And they flew over with his group and got this young man to the top. It was not easy. And because that connection, we thought, well, how can we help other entrepreneurs would be business owners in Tanzania? So all of our good friends, like you, Eddie, that I've known for many years all my relationships, you know, we sent out you know, the book with the fact that we were donating through a really amazing group called B1 G1, You can look it up a B1 G1, but if you ever want to find a place to partner with a very authentic group that helps you specifically donate to a cause that you have some connection with that's a great group to do it. So that's why we did it, that's why we chose Tanzania.
Eddie Speed:
Well, thank you, David. Thank you so much for that. Thank you. if I know anybody, that's a Go-Giver it's Dr. David Phelps. So David, 'm hoping a lot of people are pretty fired up about the book. So maybe we should show them how to go get the book you can see that I'm holding mine fairly tight and and so we are really excited about the launch and have gotten the announcement, and there's obviously the Amazon information there. And if you guys are looking for a book that I believe could be a game changer in your mindset, Dr. David Phelps has written a book called what's your next. And I think it will absolutely change your mind. So I'm going to let these guys finish up. David, I'll see you in the after party, sir.
Brian Lauchner:
Wow.
Joe Varndador:
Man. Wow. That was that was amazing, right?
Brian Lauchner:
That, that was, and obviously a huge thank you to Dr. Phillips for taking time and kind of sharing this content as you kind of saw some of the comments people that are loving the content. He's obviously given some great great nuggets away and we're gonna keep going in the after party as well. But before we get too far down the line, I've got to mention our sponsor. Who's going to be NotesDirect and the Feeding Frenzy Friday.
Brian Lauchner:
That's right. The Feeding Frenzy Friday is simply a playlist on our NoteSchool channel, a YouTube channel that allows you to watch some seasoned investors break down the details of note investing and breakdown, specifically notes that are on the NotesDirect platform. We talk about performing notes. We talk about non-performing notes and really kind of the due diligence and some of the things to consider. So if that's something for you, make sure you're checking out the link that you see on the screen, and you can go check out lots of the videos that we've already published. I learned a little bit more and start to master your note investing. As I said at the beginning, if you were somebody who, this was a great video for you, this is, you know, you really enjoyed hearing from Dr. Phelps, please like this video, subscribe to this channel so that you're always getting kind of some updates and specifically for NoteSchoolTV, make sure that you are clicking the bell notification so that each and every Wednesday at 11:00 AM central time, you're getting a heads up that, Hey, we're going live and you should jump on, join us and engage with us, bring your comments, bring your questions and make sure you're sticking around for the after-party as well.
Brian Lauchner:
We're going to hang around here in a little bit. That's going to do it for NoteSchoolTV today. If you can stick around, we'll see you on the other side, if not, we'll see you next week.
Brian Lauchner:
All right. Well, thank you so much, Dr. Phillips. I really appreciate you taking some time to hang with us today and share a little bit.
Dr. David Phelps:
It's great, and really enjoy it. And by the way your production team this is way better than watching like CNN or NBC way better way content. So a big thumbs up for me, I'm going to start tuning in on a regular basis and I love the way you got it formatted really, really well done.
Brian Lauchner:
Oh, Fantastic. Well, Eddie, I know you had some things you wanted to make sure we covered. Obviously I saw Shelly in the comments saying all of these evolving kind of quoting Dr. Phelps here. And so it's a, there's a lot of good nuggets we want to kind of dig into as people are adding comments and stuff. So I'll kind of let you you started off Mr. Speed.
Eddie Speed:
Well, one of the things that David talks about in the book and I think everybody's really going to enjoy reading and digging into, but I thought it would be a value to, for him to talk about a little bit more is these freedom assets, these five freedom assets you mentioned. And you know, obviously David, those things are to me, they if I look at your path, I think they define your path. How'd you figure this out?
Dr. David Phelps:
Well, it, I didn't have it figured out at the beginning of anything at all. I mean you know, this is, you know, we all have a story. We all go through life and, you know, as we age up, we have more experiences, right? And more gray hair equals more experiences. So when you look back at your experiences in life and you start to see kind of what moved the needle this way, that way it wasn't. My, my big plan was I looked back and looked at what were some of the key and that's why I call them freedom as assets. What are the key things that I did? And I put them in a framework of five keys that I look as I look back at my life. These were the significant areas and they didn't all, it didn't all happen at once.
Dr. David Phelps:
I mean, these were, but, and I don't think you can put the same amount of emphasis on all five at the same time. You should. It's not a ladder. Where you do one and the second one third, one fourth, one fifth one, the fifth would be in legacy. I think again, you can be doing and should be, we're looking all five, but maybe there's more of a concentration on one or two than the other. So that's part of your blueprint. Your personal blueprint is figuring that out, but I had to put all five in the book because as I looked back, they all were part of me getting through the ups and downs and twists and turns of the lives. We live as entrepreneurs, as people that want a lot more control of our lives.
Dr. David Phelps:
But with that control comes responsibility and also requires us to be willing to test not get too comfortable in life. Not just feel like the status quo is good enough cause that's not who we are. And so not being afraid to test some things and not being afraid of failure. Cause I don't think failure should ever be a word that we really hang our hat on failure is something that teaches us great lessons. If we're willing to look at them and then use those. So that's the fire freedom so we can, yeah, we can go down down the order there and talk about those a little more detail if you'd like.
Eddie Speed:
Yeah, let's do that. Invest in yourself.
Dr. David Phelps:
So we all know that we should be our primary best asset ourselves, that's an asset that no one can take away from us. The government can't come tax us out of us. They can't put a restriction or regulations on the way we think in our knowledge based and experience. So that's an asset that you can rely on as long as you're breathing. And so we definitely think about that's when ourselves is as formal education and that, that is a piece of it going to school. And if you decide to go on to a higher levels of learning there's an investment there. And I'm not saying that's wrong. Just do it with purpose, do it with purpose. But I believe that on the other side of the formal education, whatever your degree is, your license, your certificate there's the other side, which I call what I don't just call it. It's out there, It's self-education Jim Rohn one of the great thought leaders for decades, who's no longer with us, but Jim Rohn often said that formal education will provide a living for you.
Dr. David Phelps:
Self-Education will provide I don't want mess up, you know, like wealth, like, like abundance. So self-education is something that, that you never stopped doing that whatever your degree or position life is, whatever you achieve achieved in terms of formal education, the self-education is something lets you just keep building and there may not be any certificates with that. The certificate is the fact that you are allowing yourself to build more adaptability and flexibility into your life and have that opportunity to go to your next, whether you're looking for it or you need to move to it like I did without having the flexibility, you're kind of stuck and you think, well, this is all I can do is what I trained to do. I have to do this and if that's not working out, then like, do you like go back to formal school again?
Dr. David Phelps:
Well you can, but I think there's so many better ways to move yourself and adapt from where you are today based on the goals and vision you have for your life. So what I'm saying to the people that are with us today is wherever you are, don't feel like you're stuck and because this has been your chosen path, business or professional career that it's all you got. It's not, it's a piece of it. So, so self-education is very, very important. So that's that's number one. Number two is invest in your business. Now some people may be still in a position where they're working for other people working hopefully with, with a great company or something you enjoy, even though, even if that, even if you don't own a business, that's your primary. You can have, you can have a secondary business.
Dr. David Phelps:
It's what you do at NoteSchool so well you help people who have primary businesses and interests get into a business that involves real estate and really on a basis that's different than most people think about real estate. You don't have to be a realtor out there and don't list houses. There's a place to be, so you can have your own business outside of the primary business or if you're working for somebody else. So focusing on that, that's separate business or your primary business and creating a real business that doesn't require you to show up every day and trade time for dollars. Maybe you do at first, and then maybe over time you build a business and have other people and systems and processes in place that now start to give you some freedom of what we really want in life is time.
Dr. David Phelps:
So, so that's number two, invest in your business. Number three is invest in relationships. I say your network is your net worth. Go back to Jim Rohn. I mentioned a minute ago. He says you become the average of the five people with whom you most associate. And I think that's really true. If you want to up your game, meaning up your knowledge base, your experience, that your options in life, that look around to see who you spend the most time with. And if you're not spending time with people who challenge you, who you definitely feel like have gone further down the path towards freedom and you have that you respect because they live a life of integrity and values. You've got to put yourself in those places with those people, don't stay stagnant in one group. Even if the people around you are good people, that's fine, but you've got to be challenged.
Dr. David Phelps:
Relationships are everything we talked about earlier on the show, Eddie that you know, you and I have known each other for a number of years. And you know, we spent time in each other's world and family and business at different places over, over time. Well, we do that with lots of people and that ability to leverage in a mutually beneficial way, other people's expertise and time and connections experienced skill-sets. It's, it's the best, I Mean, you can't just do everything on your life solo. You try to do that, and you're going to his ceiling and it's going to be frustrating. Cause you feel like how come I can't break through? Well, you haven't learned how to really develop collaborative relationships. And we weren't built to do that. Most of us, we were built well, Eddie, you know, you're, you're, you're a rodeo star back in the day who was there helping you when it was time to get out there and ride that bucking Bronco was there.
Dr. David Phelps:
Somebody had to hold your hand. Well, maybe when you're a little kid, but not as an adult, you had to do it by yourself. You got to train, you got to do the hard work. Okay, that's good. But to build a business or collaboration you gotta do with other people, I mean, and that's what you've done at NoteSchool. I mean, I've watched you through the years, your, your relationships, the people who have been near and dear to you, even people from the past, they always come back and there was always like good feelings there. See, that's a skill set that anybody can achieve. But sometimes some of us have to work at it harder. And I say, I'm an introvert. I have to work harder at that. But it's worth the time and effort to find those right people in your life because you'll never regret having made great relationships in your life.
Dr. David Phelps:
Never regret that. So that's number three, number four, invest in your capital base. So now we're outside the primary business, right? Or the primary job. Now we have capital we've been good stewards of our money. We don't spend beyond our means. Now we w we take money, we've saved some after taxes and not, okay. Now this is gonna be my passive investments. I'm not gonna be involved directly in running those investments, but I want to find a place to put them. So learning how to make your money work for you, at least as hard as you work for it. What's most people advocate that unfortunately, most people listen to the world of wall street, wall street says, Hey, David, we want to save money on your taxes? come here, I got just the thing for you. I got this thing called 401k baby, you know, go to town.
Dr. David Phelps:
Now I'm not against retirement plans. Okay? But I'm saying have a retirement plan that you can self-direct. And that's the problem that most people have put on wall street, where they have no access to the decision making of that. It's with that money manager, a fiduciary who gives maybe a few menu items of things you can pick on wall street. I don't particularly care for wall street. My history is in tangible assets, real estate. So I've got a retirement plan. I'm going to make sure I can self-direct it. So I can put it in the kind of assets that I believe in. And I have some control over, even on a passive basis. So that's number four, investing your capital. Number five, investing in your legacy. Why is that important? People think about their legacy is something that their medical or leave to people at the end of life.
Dr. David Phelps:
Typically it's about what? wealth and money and trust funds and whatever you want to do. And that's fine. But I think it's a lot better to think about what we can leave in people versus what we leave to them. You can do both, but what do you leave in them? So what are you teaching people that you care about the generations to come up, your children, your grandchildren, your nieces, your nephews people in your tribe, they're their sons and daughters. What are we leaving in them today? And not just when we're at the end of our life. So how are you sowing into other people's lives? We've got to be doing that all along. And again, sometimes we have to work more on ourselves, in our business to get ourselves freer. It's like, put your oxygen mask on first. I'm a believer in that, but once you have yours on and secure and you're stuck in the oxygen now help other people get theirs on. And that's legacy that's impact start doing now, you're living your legacy today every day, not just a VM with your will and your state planning.
Eddie Speed:
Man, that is some rock solid stuff. So by the way for those of you that may have checked in, like is about Dr. David Phelps brand new book, What's your next? and you will see the link here in the, in the thread on Amazon, you can order it. It just was launched literally yesterday. And so we are so excited to have Dr. Phelps and really sharing with us a path that I personally know that everything he's talking about in that book, he's lived it and done it. And he, and I kind of laughed it. We've seen each other at spots in our lives when things weren't really that good, or there were certainly rocks in the road. And he talks about that so well in the book and like how to push past that. So Joe, Brian.
Joe Varndadore:
I have a question, Eddie. yeah, real quick, it's something that you said, and I was like caught off guard for a second. You talked about, was it a sacrifice period or was it a sacrifice time? Can you just say that one more time? Because I was trying to make the notes on it because either you're taking notes as well, right?
Dr. David Phelps:
Yeah. So, Joe, unless we were the beneficiaries of some big wealth transfer from, you know, an inheritance.
Eddie Speed:
Right.
Dr. David Phelps:
Then there's a sacrifice period. We all have to do some manual labor. We have to go to school, we have to get training, right. We have to do that. And investing in yourself as well as talking about first and foremost. So, but the problem is most people, all their, all they do to improve their situation, it's linear growth. So what does that mean? Well, so you get into your life and your business, your career, and you add improvement to it by again, investing in continuing education. And maybe you add some more efficiencies to the things that you do in providing service or product. Those will provide you linear improvement. But we're still in a position when we're doing that. We're still trading time for dollars it's. And I think we're still potentially, most people are still sacrificing. A lot of the things they'd really want to have in life, which is probably again, coming back to time, time to spend it with other people, or maybe it's sort of hobbies or passions, which most people say, well, that's not the way it's supposed to be in life. You're supposed to go to school, get a job, get a career, get a business and work that baby, you work, meaning the keyword is, you work till you're at retirement, age, 60, 65. Some people will go into 70 because they kind of have to. And then when I get there to retirement, then I'm going to enjoy the fruits of my labor. Then we're going to travel and I'm going to spend time with the family and all these great things.
Dr. David Phelps:
And the problem guys is that, is that mystical Sunday, most time doesn't show up because something happens. Something happens to somebody or somebody's health or some situation, and those great things you are going to do, they don't happen. So my point is, there is a sacrifice period. You don't just launch out and go out and have some magnificent where you show up one day a week and the money is just coming in. Nope, you gotta pay the price. You've got to do the work. You got to have the relationships you've got to be in mastermind groups where you're learning from other people. But as quickly as you can start transferring from your need to trade time for dollars on a basis, more than you want to do, that's where you start to find freedom. And I don't mean you have to be at a point where you just go lay on a hammock on the beach.
Dr. David Phelps:
Cause I'd get bored stiff after about four hours of that, you know, and I'd be burned. You know, I was like, no, I want to be doing something. So, when you're in a, not in a need position where you have to like make a certain amount of money every month, which is where we all start not taking away, that's the sacrifice period. Move the needle beyond that as quickly as possible. And the way you do that is you gotta be with other people who have already made that move so that you're not sitting back and go, well, that could never work for me. That they were just lucky. It just somehow. No, Nobody's lucky who had to work for anything. Everybody has a story. We've all gone through ups and downs and challenges in life. And that's part of the journey. That's part of where opportunity lies because on the other side of adversity, I've always seen opportunity. It just, wasn't fun getting there. Isn't it Eddie? sometimes.
Eddie Speed:
Thank you, David. Yeah, it's absolutely true that we don't know what we don't know. We haven't seen what we haven't seen. And I think the environments that you're talking about, David is where we get exposed to things that otherwise we didn't know. Right. I am shocked and amazed at sometimes I get to teach people that are excessively smarter than me, but I was taught a mindset 40 years ago by my father-in-law and I just share what I was taught and now I've hopefully live part of that. And then I see people like Dr. Phelps live it. And so, it's just a mindset. And once again, environment is everything. So Brian, any last questions before we leave?
Brian Lauchner:
I wouldn't say it's a question, but I would say that for a lot of us, we hear things like Dr. Phelps was just talking about, we feel a little inspired, but we're not sure what that next step is. And so I wanted to just encourage you that one of the things he started with was investing in yourself. And so one of the first steps that you can do, if you're looking for a next step is simply go to Amazon and buy this book star, reading it, start trying to pick up the wisdom and the knowledge that's in it so that you can continue that journey. So go go to Amazon. What's your next? Thank you so much, Dr. Phelps for spending some time with us, that's going to wrap us up for this week's episode of NoteSchoolTV we'll plan on seeing everyone next Wednesday at 11:00 AM central time.
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