0 (2s):
Light that spark Fire Nation, JLD here and welcome to Entrepreneurs on Fire

HubSpot Podcast Network (7s):
Brought to you by the HubSpot Podcast Network, the audio destination for business professionals with great shows like My First Million.

0 (15s):
Today we'll be breaking down Strategies for Success A Conversation with a multi-talented real estate entrepreneur, To drop. these Value Bombs I have brought to Timothy Lyons into EOFire Studios. Tim is an active NYC Firefighter and former ER nurse who made the pivot to become a real estate investor, an Amazon number one bestselling author, as well as a podcast host of The Passive Income Brothers podcast. And today Fire Nation, we'll talk about seemingly having it all. We'll talk about the five ways that real estate can pay us. We'll talk about trading time for money, and maybe what you should do instead. and so much more.

The Sales Evangelist (52s):
And a big thank you for sponsoring today's episode goes to Tim and ours sponsors Sales Evangelist Hosted by my friend Donald Kelly is Brought to you by the HubSpot Podcast Network, the audio destination for business professionals. Each week, Donald interviews the world's best sales experts, successful sellers, sales leaders, and entrepreneurs who share their strategies to succeed in sales Right. now, a recent episode you should definitely check out is The Five Ways to Do Daily Outbound with LinkedIn. Listen to Sales Evangelist. wherever you get your podcasts

Thrivetime Show (1m 24s):
is today your day. Visit Thrivetimeshow.com to see testimonials of how Clay Clark's business coaching has helped over 2000 entrepreneurs to dramatically increase profitability. It's month to month and less money than an average minimum wage employee. Schedule your free consultation today at Thrivetimeshow.com .

0 (1m 44s):
Tim say what's up to Fire Nation, and share something that you believe about becoming successful that most people disagree with.

1 (1m 53s):
JLD. Such a pleasure to be here. Thank you, my man for having me. Something about being successful that most people disagree with is that you need a college education in the field that you study in order to be successful. And to me, JLD, that is just downright not the right thing. Well,

0 (2m 9s):
I gotta be honest with you, I am completely in agreement with that. And it's actually interesting that you brought the word up college because Fire Nation, Tim and I both went to the same college go Friars Providence College. So we have that in common. And A, as well as a love for men's college basketball, Providence College Friars. So we definitely have a bond over that, but we also have a bond over Strategies for Success, which is why I brought Tim on the mic today because we're gonna be talking about those strategies throughout this interview. And there are Tim, a lot of entrepreneurs who seemingly have it all, yet they still desire to be, to do and to have more.

0 (2m 51s):
Can you speak to this,

1 (2m 53s):
John? I had two careers that I absolutely loved, Right. now I am still a lieutenant in the New York City City Fire Department. I I have 18 And A half years doing that. I have 18 months left before I made the decision to retire or not. And I was an ER nurse in a level one trauma center. I was pre-Med for about 15 minutes back in Providence. And that's a different story for a different podcast. But, you know, I had had it, all my bills were paid. I had a, a pension to look forward to, you know, I was making, you know, decent money. I had a beautiful family. I had a home, I had two vacations a year, John, but I still had a burning desire to do, to be, to do and to have more. And it was that, that really kind of put the motivation and the guests in my tank to, you know, come outta my comfort zone and become an entrepreneur.

0 (3m 41s):
And I love that Fire Nation, and I love seeing people who have just done it on such a high level. I mean, I just interviewed the founder of Reebok. This guy's 88 years old, and he gets after every single day. That's my dream. I mean, I don't, I don't wanna be like running around in circles with my, with like a chick with my head cut off. But I wanna be getting up every day with a purpose, with, with a desire to impact the world, to be more, to do more, to have more. Because why not? This is our one go around the planet. I mean, if this guy, Joe, again, the founder of Reebok, still gets up at 88 after all he's done and, and does it. I mean, why shouldn't we? Why can't we?

0 (4m 21s):
And we can, but a problem Tim, and both you and I know this, is that a lot of people think they can save their way to wealth. You believe we need to become financially educated. What do you mean by this?

1 (4m 36s):
So John, not only do I think it, I'm actually somebody who practices it, right? I mean, I came from the old school tradition of go to school, get a good job, buy a house, get married, have kids, right? You did

0 (4m 47s):
Go to a good school, by the way.

1 (4m 48s):
Oh, a hundred percent. A hundred percent. Go fryers. Listen, you, you can save and you can, you know, dollar cost average into a, a taxable, you know, stock or account. And you know, when you're 65, John, then you'll be in a lower tax bracket. So you can take out 4% a year and you can, you know, that's how you're gonna go out. And to me, that wasn't good enough. I mean, I was like, man, what, what are we doing here? Like, why, why would I wanna be in a lower tax bracket when I'm 65? Why wouldn't I wanna be in a, you know, a, a much higher tax bracket? You know, why am I gonna keep on deferring and deferring and deferring my happiness and my experiences? Because as you just alluded to, this is our one go round. You know, my kids are only gonna be little for, for one time, one, one space in time.

1 (5m 31s):
And, you know, I just, I I, it didn't sit right with me. So the more I became financially educated, and that was by reading books and listening to podcasts and YouTube videos and going to conferences, there was so much that I needed to learn. There was so much I didn't know. And it was once I became financially educated, and that means about money and banking and using leverage and real estate and equity and debt and, you know, underwriting and all these different things, right? And different vehicles and asset classes, things that really should be taught to us, you know, when we're in school, but they're not at taxes. John, I love taxes. Mm. I mean, I, I read books on taxes. I listen to podcasts on taxes. I go to conferences about taxes.

1 (6m 13s):
And you know, if you knew me 10 years ago, you'd think that I'm, you know, probably crazy. But you know, no one's coming to save us, right? No, you have to become financially educated because if you try to save your way to wealth, especially in today's days, with the inflation the way it is, your purchasing power is gonna be eroded. And you're gonna end up at 65 wondering where all your dollars went. It's

0 (6m 32s):
So true. And Fire Nation, you literally have two options in life. You can either educate yourself, you can become financially educated, or you can move to Puerto Rico and just stop paying tax, keeping all the money that you make, not pay any capital gains. And even the uneducated down here, you will find a way to accidentally become Wealthy. That's like, that's just the reality. But listen, living in the Caribbean, it's just not available to everybody. We have to live, you know, all over the world. So if you're listening to this Fire Nation, become financially educated, educate yourself, because you don't wanna be trading time for money for the rest of your life.

0 (7m 13s):
Believe me, it's not the way that you want to be living your life. So Tim, what should we do instead of treating time for money?

1 (7m 22s):
John, this is what, this, this is the one thing that launched me forward, right? Because I had two jobs, right? That I, two careers that I absolutely loved, and every day was an adventure, right? And I found myself working 70, 80, 90, a hundred hour weeks, right? With 24, 2, 24 hour shifts in the, in the firehouse, two 12 hour shifts in the er. And you know, you don't get out on time because that's when the craziness starts, right? When everyone's trying to leave. And then I'd work some overtime, whether it's in the firehouse or the hospital. And before you know it, I like, I was missing my, my entire life. I, I, I, I enjoy what I enjoyed what I did, but I was missing bedtime. I was missing, you know, bathtime, I was missing dinner.

1 (8m 3s):
I started to feel it, my wife started to feel it, my kids started to feel it. So trading time for money while it was working, in one sense, it was not working for my, my destiny, my life, my goals, what I wanted to do, and you know, how, how I want it to be. So I realized that I couldn't trade my time for money anymore. I needed to start focusing on attaining equity. And John, through the process of self-education and surrounding myself with the folks who were doing the thing that I wanted to do, I found out it was really in one of two ways that I was going to be able to accomplish this. And the first way was to start a business. And although that sounded okay to me, it wasn't really fitting within my lifestyle. I didn't, I already had two jobs. I and I, I couldn't just leave one right away.

1 (8m 45s):
So starting a third was gonna be tough. And the other one was real estate. So really got educated, bought a three family property and became a landlord. And I was hooked Hook, you know, hook line is sinker, did better on my taxes, had cash flow built equity. And from there we started a, when I say we, it's my brother and I, we started a, a real estate private equity company who focuses on multifamily, self-storage and industrial products now.

0 (9m 10s):
And Fire Nation. If you're kind of like, what is he talking about? This sounds too good to be true. This sounds exciting. I wanna learn more. Well, you better stick around because we will be diving into this and more when we get back from thanking our sponsors. The new year is upon us, and that means new goals, more growth, and upgrading your day-to-day workflow. While most sales folk are stuck in the mud of manual scheduling, digging into data and tracking down leads, let me share with you a better way to win so you can crush your Q one.

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0 (10m 25s):
sales.

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0 (11m 32s):
free, Coda dot io slash fire

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0 (12m 44s):
So, Tim, we touched upon this before the break. You decided that real estate was your answer to wealth. You wanted to at some point stop trading time for money. And I loved how you put that before the break. Again, you know, you, you had these two jobs, you couldn't just stop one because you know the money was coming in, you needed the money, you had a family, you had expenses, things were happening. So just adding more to that, another job, a business wasn't as feasible as, Hey, I'm gonna start investing in real estate because it pays us not in one, not in two, not in three, but in five ways. Let's talk about those five ways. Now.

1 (13m 22s):
You can go down a rabbit hole when researching real estate investing and find quote unquote gurus, and they're gonna have you run to the back of the room and buy products and everything because it, it can sound too good to be true, right? I mean, real estate pays you in five ways. I mean, it sounds like some sort of scam, but being from New York where, you know, everybody's guilty till proven innocent in my mind sometimes, you know, I had to, I had to do it for myself. I had to get my hands dirty. So by doing the thing, I was able to put that, you know, education that I had given myself into action. And real estate pays you in five ways. The first way is appreciation, right? Something you can't bank on. But if you buy it right, you manage it right? And you finance it, right? You know, you can come out, you know, in, in several years with some appreciation.

1 (14m 5s):
Number two is cashflow. When I, you know, John, cashflow has now become my main focus in life because once your cashflow e equals your monthly expenses, you're quote unquote, financially free. Totally, absolutely right? I mean, 'cause and then, and then once you get your cash flow to equal your monthly expenses, then you want to do 200 times your cash flow. So now you're financially free, but with, you know, extra cash flow. So number three, loan amortization, right? The tenants are going to work eight hours, 10 hours, 12 hours a day to come home to a clean, safe, affordable apartment. Or, you know, if you're gonna store your stuff from and, and Susie's house in a self storage place, or you know, oh my gosh, we want to have Amazon supply shops or we want to have manufacturers make our things.

1 (14m 49s):
They need to be in a building. And to position yourself in one of those, you know, areas is huge, right? The tenant will do the loan pay down. Number four is tax benefits. Oh my goodness, we could do another huge podcast on tax benefits of real estate, but just know that they're there. Number five is inflation profiting. And this can take a little bit of time to get your head wrapped around, but you'll profit from inflation. Believe me, as a real estate investor, when you use leverage fixed rate loans and you can buy it right again and manage it right and finance it, right? You can inflate, you can inflate away a lot of your debt at pay down your debt with inflated debased dollars,

0 (15m 28s):
Fire Nation, five ways you'll get paid by real estate. Now, I wanna go through those five ways again, Tim, but this time let's like, give a quick example of like what that could look like in real life.

1 (15m 41s):
Sure. So the appreciation, if you buy a building for say a million, you sell it for 2 million, well that, that delta right there is $1 million in appreciation, right? That's your equity. Number two is cashflow. So if you buy a, let's call it a, you know, a million dollar building, and at the end of the month when you pay down all your expenses from the income generated by the property and you service your debt payment, whatever's left over is called your cashflow. So if your cashflow is say, I don't know what's called, you know, $1,200 a month, that's your spendable cash for the month because you paid all your bills from the income, from the property loan amortization, right? So if you buy a property, say again, it's a million dollars and you maybe put seven, $700,000 down, well now you have a 70% loan to value, right?

1 (16m 29s):
You put 70% of the equity down, I'm sorry, you put 30% of the equity down and the bank brought the other 70% to the project. Well, over time that when you pay your, when you pay your debt, you're also paying some principal when you're paying some of the interest back to the bank, and that will bring your loan amount due to the bank down. Number four, tax benefits, right? So once you learn about, you know, how real estate, how you can treat income, how you can deduct some of the expenses, some of the deferred maintenance, some of the capital expenditures, and this magic thing called depreciation, go Right. now Google depreciation in real estate and find out how you may be able, may be able to use it in your, you know, situation.

1 (17m 13s):
And number five, inflation profiting, right? So if you, everyone knows that a dollar today is worth more than a dollar tomorrow, right? Because in the last, I don't know, 18, 24 months, John, we've had a cumulative big government reported like 20 or 22% cumulative inflation. That means that our value of our dollar has gone down by 20% from like 18 to 24 months ago. I mean, that's incredible. That's why we're going to the grocery store and the, and fueling up our cars, right? And lumber and all these things are costing more money, right? Because the value of a dollar is, is is not there anymore. So if you, you can get a loan at say, I don't know, call it 5% from the bank and you know, what's that?

1 (17m 55s):
And then you're gonna pay the bank back with, you know, devalued dollars over the next say 10 years. You're winning, you're on the other side of that trade. So you're winning.

0 (18m 4s):
I really think that's one thing that people don't think about that much is that inflation profiting aspect of things. But man, has it become so relevant recently. I mean, like you said, the government's reporting like 20 to 22%, it's much higher than that. I mean, they're, they're always under-reporting stuff like that. So that inflation profiting is real fire, Nation. And of course, the other things that Tim talked about, really exciting when it comes to you building real wealth and Tim, you believe that investing as a limited partner or a passive investor is the next big thing. Give us the details on what this means and what the steps would be to start doing this.

1 (18m 44s):
You know, when I got started, John, I'm not a handy guy. My wife won't even let me hang a picture on the wall in our house because I will literally have either the picture will fall down, there'll be a hole in the wall or several holes in the wall. I'll be cursing, it'll be a bad scene, right?

0 (18m 58s):
Okay, let me break in here for a second because I, I gotta be honest, so we're about to have a child, like literally any day now. In fact, by the time this is airs, we will definitely have a child. And we were looking to hang some pictures above our baby's crib and our baby's cribs pushed back against the wall. And I was like, oh, I'll, I'll do that tomorrow. She looks at me, she's like, do you really think that I will let you hank pictures above our baby's crib?

1 (19m 24s):
Noted, noted. Just wear it, John, just

0 (19m 27s):
Wear it. I just, I said, Hey, you're right babe. And I just walked away and said, let's call the handyman, bring him in,

1 (19m 33s):
Bring him in, let's bring the expert in, right? Who not how I love it. You can certainly do that. And the lifecycle of a real estate investor, John, is usually, you know, especially guys like guys like me, right from New York, we, we don't really trust anybody, you know, and we wanna do their own thing. We wanna, we don't wanna get scammed, right? So we want to be able to see the property, to mow the lawn, to shovel the snow, to, you know, hang the pictures, do the thing, collect the rent to pay the bills. But what happens is you get excited, then you buy a second, third, 10th property and then you're like, man, I just bought myself like this crazy job. 'cause now I have to do all these things or find people to do all these things and it, it becomes cumbersome and then they wanna find out, well how can I, you know, wrap those up and sell those and become more Passive, right?

1 (20m 15s):
And that's where, you know, our company Cityside Capital, like we help limited partners or passive investors get into commercial real estate deals, multifamily self storage, industrial. Because listen, at the end of the day, you know, stock market things, you know, to me, I understand it. I've been a, a stock market like buff my entire life. Been reading the Wall Street Journal since my PC days when the, the Wall Street Journal was free, John in the mail room. I don't,

0 (20m 40s):
Oh yeah,

1 (20m 41s):
Remember that, but I've been reading since then. It, it makes sense to me. But you know what, by the time regular retail investors get paid or they make money in stocks, so many other people have made money on top of you that it's almost like, oh, sweet. But when you're in real estate and you can actually kick the tires on a property, you can understand the operator, you know, what is the asset class? How, how are we using debt leverage? Who's gonna be running the property? And you can really get behind it. You can actually forecast out what some of your cash flows will look like and it's tax advantage income, it makes so much sense. We have built a business around it. People are using their cash, they're using their self-directed IRAs, their solo 4 0 1 Ks, they're doing 10 31 exchanges all into the projects that we're doing because people want certainty, they want clarity.

1 (21m 28s):
And most of all, John, they want confidence that what they're putting their money behind has been tried and true and proven and real estate's been around for millennia. So I really think going forward, you know, people may still have their stock accounts and their, you know, dollar cost averaging, you know, ideas. But I really do think that there's gonna be a big push in the next couple years towards alternative investments and direct participation.

0 (21m 52s):
Fire Nation mic drop. I hope you're fired up. And Tim, what if Fire Nation wants to learn more? Let's hear how we can connect with you. You have a book, you have the Passive Income Brothers Podcast. Tell us more about that.

1 (22m 7s):
Taking a page outta your book, John, I actually bought your book on podcasting and I bought your, your other book and I was, I was really fired up and I wanted to do my own thing. So my brother and I started a podcast called the Passive Income Brothers Podcast. We're gonna be two years old in December of 23 and it's been a ride of a lifetime. But yes, I've been a co-author for a number one Amazon bestseller called Bring Value Solving Problems and Leaving a Legacy. If anybody wants a physical copy of that book, John, all they gotta do is email Tim at cityside cap.com. Let me know that you heard me on jds podcast, shoot me over your address and I will send you a physical copy. But if that's too much, I'll send you a digital copy too just by sending me an email.

0 (22m 51s):
Fire Nation, take action on this and Tim one more time. What's that email?

1 (22m 55s):
It's Tim@citysidecap.com.

0 (22m 60s):
Give Fire Nation one takeaway from our entire conversation today. What do you wanna make sure that our listeners walk away with value bomb wise?

1 (23m 10s):
I'm gonna give 'em two. It's never too late to start, but you have to get going right and done is better than perfect. You know, if we needed a PhD every time we had to make a decision, we would never, literally never get anything done. So get going out there.

0 (23m 24s):
Fire Nation, you're the average of the five people you spend the most time with. You've been hanging out with TL and JLD today, so keep up that heat. For links to everything we talked about, visit EOFire.com, just type Tim in the search bar. The shown us page will pop right up, links to his book, links to his podcast, his email will be there. So you can send him an email for his book, digital or a physical copy. Tim, thank you for sharing your truth, your knowledge, your value with Fire Nation. For that we salute you and we'll catch you on the flip side. Thanks, John. Hey, Fire Nation, a huge thank you to our sponsors and Tim for sponsoring today's episode and Fire Nation. Over the last decade, I've interviewed more than 4,000 of the world's most successful entrepreneurs, and I've created a revolutionary 17 step roadmap to your financial freedom and fulfillment.

0 (24m 10s):
I put it all into my first traditionally published book, the Common Path to Uncommon Success, which is the step-by-step guidance that you need to achieve the lifestyle of your dreams. Visits Uncommonsuccessbook.com, and I'll catch you there. We're on the flip side, Sales Evangelist Hosted by my friend Donald Kelly is Brought to you by the HubSpot Podcast Network, the audio destination for business professionals. Each week, Donald interviews the world's best sales experts, successful sellers, sales leaders, and entrepreneurs who share their strategies to succeed in sales Right. now, a recent episode you should definitely check out is The Five Ways to Do Daily Outbound with LinkedIn. Listen to Sales Evangelist.

0 (24m 51s):
wherever you get your podcasts is today your day. Visit Thrivetimeshow.com to see testimonials of how Clay Clark's business coaching has helped over 2000 entrepreneurs to dramatically increase profitability. It's month to month and less money than an average minimum wage employee. Schedule your free consultation today at Thrivetimeshow.com .