November 10, 2023 • 51 mins
Is your credit card your worst enemy or your best friend? Let Brighton Gbrazia, a seasoned financial and real estate expert, guide you on how to shift your perspective and make credit work for you. An immigrant from Nigeria, Brighton brings his personal narrative of navigating through a cash-based system to a credit-based society—mastering the art of leveraging credit for major purchases like homes, properties, or cars. His unique approach will make you see credit in a whole new light.
From misconceptions to emotional roadblocks, Brighton goes in-depth on the elements that can make or break your financial independence. He underlines the importance of education, understanding cash flow, and the critical role of emotions in successful real estate investing. His experience working with diverse clients has given him an edge in identifying common fears and triggers that can hinder progress towards financial freedom. Brighton's coaching on shifting emotions around money is nothing short of transformative.
Brighton also delves into the fascinating world of mindsets, contrasting the poverty mindset with the wealthy one. He offers nuggets of wisdom on breaking the cycle of poverty by seizing the power to change one's situation and adopting a wealth-focused mentality. He wraps up the discussion with practical tips on leveraging digital platforms and staying politically savvy. Whether it's your first foray into finance or you're an experienced investor, this episode with Brighton Gbrazia promises to challenge, enlighten, and inspire you to new financial heights.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Hey guys, welcome back to another episode of
Latinos in Real Estate InvestingPodcasts, where individuals
just like you come to learn howto create wealth through real
estate investing,entrepreneurship and business
ownership.
And today's guest is BrightonBrazia.
And.
Brighton is a financial andreal estate expert with over a
(00:20):
decade of experience working forsome of Canada's largest banks
and credit unions as a financialadvisor and mortgage
underwriter.
As the CEO of Wealth Marathon,Brighton provides sound and
straightforward financial adviceto young professionals and
families in Canada to help themcreate the kind of wealth and
financial success that only onecome that can only come with
(00:43):
long term planning and properexecution.
Excuse me, Born in Nigeria,Brighton currently resides in
British Columbia.
When he isn't talking aboutmoney, you're likely to find him
planning his next internationaltrip or running the nearest
half marathon.
So you're a half marathonrunner, my friend.
Welcome, sir.
(01:04):
That's right, Matt, Welcome.
It was a pleasure to have youon Brighton, so tell us a little
bit about yourself.
Why don't we start there,Brighton?
Where did this journey start ofyou wanting to focus on real
estate and then teaching peopleon financial independence?
Speaker 2 (01:23):
Yeah, I think good question to start off with.
For me it started kind of whenI started working at the bank.
So after university I landed myfirst show working for the bank
.
So I was working for one of thetop banks in Canada here and
during that time I just startedhaving conversation, because
when you're a financial advisoryou get all kinds of people.
So I would have theseconversations with Irish people
(01:44):
just buying real estate and thenI would have conversations with
people who own real estateproperty.
And that's kind of where Istarted, because when I worked
with the bank I was more of astock guy, right, I was more
like full in the market.
But then I kept hearing thestuff about real estate and how
people some of my clients thatbasically were retired how did
it was to real estate.
(02:04):
So that's where kind of the boxstarted is talking to these
clients.
And then they started tellingme a little bit why real estate
was a good asset for retirement.
So then when I went to buy myown first personal real estate,
that conversations changed theway I approached that real
estate itself, because prior tothat I was like everyone else
and like you know what, I'm akid from Nigeria.
So I was just like you know.
(02:26):
It's always been a dream to owna home, right, you know?
Because my parents were rightto where we came from, Canada,
and I was just like you knowwhat I want to own that home.
But what?
By having these conversationswith these investors, it changed
my perception of what realestate is and like really what
you should focus on.
So my first property wasactually a property which I
bought and basically it had asuite in it, so I would rent out
(02:48):
the suite to kind of help meproduce an income to try to pay
out the mortgage.
So for me that's where the realestate box started was just
like you know, nowadays it'skind of common to do that.
But back when I started itwasn't really a thing to buy a
home and it rented out thebasement suite.
But nowadays most people dothat when you buy like a
principal resident because theprice is so high to begin with,
right.
So that's where it started forme for real estate on this end
(03:11):
of power of you know, realestate, leveraging it and how
you can produce income for it toset yourself up for retirement.
So that'll be where I startedwhen it comes to real estate.
It's just my first propertyitself.
Speaker 1 (03:22):
So, being an immigrant family coming from
Nigeria my first mentor was fromyour country Really feel really
lucky and blessed to have Titusin my life.
Shout out to you Titus, ifyou're listening, appreciate
everything.
What was the biggestmisconception you had?
What was the biggest shift youhad to have in your mindset to
(03:45):
become an investor?
Speaker 2 (03:46):
I think it depends where you're coming from the
world.
Typically what you'll find islike if you're coming from like
Nigeria.
Back when my family came toCanada, that's predominantly
used to be a cash-based system,and what I mean by that is like
everything is down to cash.
There's really no credit.
So when my parents came toCanada, you're coming from a
cash-based system wheretypically people pay for stuff
(04:09):
in cash, and then you come to asystem where people kind of
leverage credit.
They don't have the cash, theyjust have credit.
So I think that's the biggestmindset I would say if you're an
immigrant coming from NigeriaMaybe not nowadays because
there's credit everywhere,they're familiar with it, but I
think still people don't fullyunderstand credit.
They're still thinking in cashterms and really this is a game
(04:30):
where you have to understand howto utilize credit and how to
maximize credit to get yourselfwhere you are, because
ultimately let's be realistic noone's putting out $2 million
cash in the property I meanthere's cash in the form of
their equity you can get out,but no one has $2 million cash
per se.
So I think that's the biggestmindset shift that I kind of am
good at is that I understandthat this is the credit world,
(04:54):
your ability to be successful,and this that in terms of like
to be successful.
While you have to understandhow do I leverage credit, how
does credit work, and understandwhat are some of the trappings
of credit and how do I avoidthat, and I think for most
immigrants they're too much inthe sense of like they're told
about yes, you know you shouldget credit, so, like you know,
buy principal res and get creditor buy a car or whatever it is.
(05:16):
They're really not focused onunderstanding like credit needs
to be managed in the sense oflike.
When you're using credit,particularly when you're buying
stuff such as a whole or aproperty or a car, the income
really matters because, at theend of the day, you want the
credit to be able to service thedebt that you're taking on.
And that's something that peopledon't understand.
When it comes to credit, theyjust think, hey, as long as I
(05:36):
can afford it, I'm going to getit, but it's like really no, you
need to figure out how to usecredit to join an income stream
so you can pay off the balanceand then use it more to buy
other stuff that produce moreincome.
So I think that's the biggestshift you have to understand
when it comes to this game ishow do I leverage credit?
Because it's a credit game, nota cash game anymore.
Speaker 1 (05:55):
When you say leverage credit to create income streams
.
Can you elaborate on that andexplain to me and the listeners
what you mean by that?
Speaker 2 (06:05):
Sure, and I'll give like maybe two examples in terms
like how to poorly use it andhow to use it.
So you're an investor, I've beenan investor, so we understand
that.
So let's take someone who has,like a principal resident right
and they've paid down themortgage, whatever, and they
have a little bit of equity.
So most people in my space,when I would do the personal
finance or as an advisor, theywill come to me to do a debt
(06:28):
consolidation.
But that means is basicallythey've racked up some credit
card debt somewhere else outsideand now they're like oh my gosh
, like this credit card debt istoo large, the interest rate's
really high, but they have thisproperty.
It has a little bit of equityin it, so they'll go.
You know what?
I could take the 50k in myequity and I could pay down the
(06:50):
credit card debt and that's agood thing.
Any theory that sounds good,but that's the problem.
I don't understand credit.
What you're doing is you'rebasically leveraging credit the
equity you've built up in yourhome to pay down a bad debt that
doesn't produce any income foryou and you're basically
increasing mortgage debt.
Now take the other way for aninvestor.
What an investor will do Aninvestor will go.
(07:11):
I've got $50,000 equity in mywhole, my principal resident.
What they will do is they willtake that credit and they use it
to go buy either an investmentproperty which can generate
income share for themselves, orthey may use it to buy a real
estate property like a rentalproperty, and I don't know if
the US is enough for them to taxthem in the US, but in Canada,
by doing that taking that moneyand buying a property, a rental
(07:33):
property now you have theability to write off the
interest on that mortgage itself.
Now you have the ability towrite off the interest on the
initial equity you took outbecause maybe you're paying a
loan in that portion of it towrite that off as well.
And now you have the potentialof a property where in the
future you're going to putsomeone in there to write it
down, pay down the loan, thepotential that's going to become
an income share down the roadwe retire.
(07:55):
So that's what I mean by beingable to understand how to
leverage credit.
One is most people are going toleverage credit to buy a car,
you know, depreciate an asset topay down their debt Again.
They're just increasing theoverall debt itself.
Or you can take credit,leverage it to produce by
property.
They can produce you an incomestream and give you other tax
advantages.
So those are two different waysto use credit.
(08:17):
You just need to understandlike you want to do.
The other way, you want to buyan asset that can produce an
income share and gives your dearfriend advantages when it comes
to taxes.
Speaker 1 (08:26):
Okay, great, great answer.
Now, I am a person I am alistener that has a family.
I'm doing okay, don't have muchcredit, don't have much debt,
my mortgage is halfway throughor maybe, with the market having
been so inflated over the lastthree to four years right after
(08:48):
COVID, the market haven't goneup so much I find myself with a
ton of equity and let's say Ihave $100,000 in equity and I
come to you and I say, hey,brighton, can you explain to me
or that listener listening towhat you just said on how to
take that $100,000 and create agoal, maybe how I can use that
(09:09):
$100,000 that I have in equityto go and create and this is not
financial advice, by the way,guys.
I want to make sure weabsolutely, absolutely explain
that we're using a hypotheticalsituation.
Okay, just a hypotheticalsituation.
Speaker 2 (09:22):
Yeah, and again, just before I answer that we're not
doing financial advice, we don'tknow your situation.
So, guys, I know a lot of timesyou get the stuff online, which
is cool, but we're runningthrough an example.
So what you're saying issomeone has $100,000 in equity
in their home and you'rethinking what is the best way to
utilize that equity?
Now, a couple of things to keepin mind.
Most of the times, we have anequity in your home, right,
(09:44):
unless you're basically sellingthat property.
Chances are, when you pull outthat equity, there's going to be
two options.
Either you're going to havewhat we call an equity line of
credit, which is basically likethinking about like a credit
card, but just like on steroids,that's attached to your home.
Or you may take out like anactual loan, so you could just
take out like a mortgage loanfor $100,000.
(10:04):
Either way, they're going tohave an interest associated with
those products.
Right, you're going to bepaying back interest once you
utilize.
Now, on the equity line ofcredit, you don't have to pay
any interest until you utilizeit.
I mean, you take out the loan,you don't have to pay the
interest right away.
We've always been going toutilize it.
So what that individual coulddo and the scenario is playing
out is they could go okay, Ihave $100,000 in my home right
(10:27):
now.
I could keep paying it down,but then that becomes debt
equity, right, because it's justsitting there, which is great,
you don't have any additionaldebt, but it becomes debt equity
.
What that individual could do isgo look for a property right,
another property to buy.
They could take that $100,000,assuming they get approved for
that $100,000.
And then they can utilize thatand put it as a down payment
(10:48):
towards an investment prop,right?
So you would go back to thebank say, hey, I'm looking to
buy an investment property.
I have $100,000 in down paymentBecause you have that equity in
your home.
The bank would view that equityas down payment on the new
property.
So, effectively, we take the$100,000.
So our principal resident isthat $100,000, but they were
(11:08):
going to put $100,000 down onthis new property which is going
to bring out the mortgage.
We would then do some analysisto make sure that this makes
sense.
Ideally, the rate that you'regoing to be generated on this
new property would be sufficientenough to come with the
mortgage and other expensesrelated to that property.
The wall caution.
I will tell you straight up,because I see this so many times
(11:29):
if you're using an equity lineof credit, which means you're
pulling an equity line at aprincipal resident and you're
doing analysis on a rentalproperty, it's nearly impossible
to generate enough cash flow onthe new property, the new
rental property, but $100,000now that it will cover that
property's expenses and alsocover the expenses relating to
your equity line of creditpayment itself.
(11:51):
So it's really important thatyou have applied to how are you
actually going to cover thatmortgage itself, that portion
that you've taken out equity, tomake sure you don't get
yourself in a bad situation.
A lot of people forget that, orthey're trying to find a
property that covers both.
It's like that's impossible.
You're not going to find aproperty that generates enough
cash flow to do that.
But by doing that essentiallynow, every year, we're going to
(12:11):
have someone paying down ourmortgage right and as the
mortgage gets paid down, yourrental property.
You know the balance is going togo down.
And what you could do down theroad, as I suggest you could do
this basically, each time youpay down the mortgage, we call
credit moving, you move thebalance over from your principal
resident into your rentalproperty.
So you're kind of flipping thecredit around.
(12:33):
Effectively, what you want todo down the road is move all the
mortgage you have in yourprincipal resident and you want
to actually move it to yourrental property to have them
paying down the mortgage.
So that's one way to becomeyourself Down the road, become
completely mortgage free.
Or you can just do paying yourmortgage, pay down that mortgage
and maybe, if the propertyappreciates your time, you could
sell it and once you sell itthen you could take that balance
(12:54):
to pay off your mortgage andyou can call it mortgage free.
So lots of different ways to doit, but that's the structure.
Take that equity, find aproperty that makes sense, put
that as a doubt payment and thenbasically now you have rental
property that's producing income.
Speaker 1 (13:07):
So I love everything that you just mentioned, except
one small little part.
I disagree with you in one part.
That's the part of that if onetakes, it's going to be
impossible to take the equityfrom your house and find a
property that can pay for both.
I do it all the time, so it'sjust finding the right deal
right.
You can find this deal If youfind the right deal, if you work
(13:31):
with the right off marketwholesaler.
So I would you know, this is aninvestor podcast, so we teach
people how to find deals.
And if you're buying on the MLS,completely agree with you,
because if you're buying on theMLS, you're competing with the
world.
We're going to be completelyhonest.
We're competing with mostpeople that don't even remotely
(13:51):
understand what Brighton justexplained.
They have no idea, so they'lloverpay for properties.
But if you learn how to buyproperties and not overpay for
properties, and know how to buythem using the 70% rule and
learn how to buy them from otherinvestors wholesalers at a
discount maybe they need alittle bit of work and you buy
them at 60 or 70 cents on thedollar of value, then you got
(14:14):
yourself a deal and you may evenbe able to pay the money back
on that, on that HELOC, if youlearn how to do that.
Again, that's all part of theanalysis that guys like Brighton
does with you.
But again, something I just wantto pre disclose here is go and
get educated.
When we always talk about thatin this podcast is the most
important thing is go learnfirst.
(14:35):
Go learn the numbers, go geteducated, go get this type of
information First before you doanything.
Don't just go crazy and startbuying just because, hey, I had
a podcast.
This is what they said.
No, go get educated, go tomeetups, go ahead, you mean?
Speaker 2 (14:49):
it, that's right, go get yourself educated.
Now they just power.
They say right, now they justpower.
Speaker 1 (14:54):
Yeah, go get yourself educated, Okay.
So my next question to you, myfriend, is what is the most
common misconception that youwould find when you was at the
bank, with regular working classpeople wanting to start
investing in real estate, whatwas the biggest limiting belief?
Speaker 2 (15:13):
That's a good question and, to be honest, to
top my head, I can't think ofone consistent thing.
But I think, just talking toclients and what you just
mentioned, I think the one thingI would say is just
no-transcript, or maybelimitation, just like you're
saying, is just limiting interms of what's possible.
(15:33):
Because, again, I alwaysbelieve like what's possible is
reflected on who you surroundyourself and what you've seen.
So sometimes if you justhaven't been exposed to a
particular thing, you may justfind it not be possible because
you haven't exposed to it, youhaven't seen it, so then it's
not real to you.
So I think that the one thing Iwould say that I do see over
(15:55):
time is just, typically, mostpeople want to buy real estate.
When it comes to owning realestate for themselves personally
, they want to live it.
But when you start thinkingabout owning real estate in
terms of generating the cashflow, there's this idea that I'm
dealing with tenants or I'mhaving to manage a property and
(16:16):
they get very scared becausethey're so large.
So when the first I was toclients, I was like you think I
want to be dealing with toiletsAny more than you do?
Nope, that's why I get aproperty manager and it's
amazing how, when you tellpeople you can have someone do
this stuff for you if that's notyour expertise or that's not an
area in the space that youparticularly like, you can have
(16:37):
people that are interested inthat.
That's their expertise to dothat service.
So I think in general we justsaid there's a lack of just
understanding how to reallycreate wealth and how you can do
real estate in so manydifferent ways.
Like the way you do real estateis different the way I do real
estate, and that's the beauty ofthis space.
Right, there's a variety ofdifferent ways to get to the
(16:58):
same goal.
You just have to figure whichpath makes sense for you and
which path you are likely tostick with over the long term,
because, again, in this space,longevity matters for you to get
to your success and you need tofigure which one works for you.
For some people it's buyingreal estate properties and just
repeating the cycle.
For some it's footbed In theside.
(17:18):
For some it's wholesale buying,like there's a whole variety of
different ways to do that andyou just need to find a way to
get to that.
So I think for most people it'sjust limitation of
understanding like it's possible.
There's many different ways tomake money in real estate.
And then also when they havecertain things like hey, I don't
want to deal with tenants, Idon't want to be like they're
with toilets.
They forget like there's otherpeople you can have, do those
(17:41):
things that you don't like.
That can now stop you frommoving forward from what it goes
to happen when it comes to realestate.
Speaker 1 (17:47):
When you think of real estate and you being a guy
that helps millennials, youngpeople, families create
financial independence, what'sthe one thing that you find that
most people are missing intheir thinking or in their
structure?
The average working classperson.
What do you find is the thingthat is holding most people back
(18:10):
in your experience fromactually reaching financial
independence?
Speaker 2 (18:16):
Oh, that's a long question.
It's on digestion.
But if I'm going to sum it down, I would say there's two things
.
One, emotions, because we'rehuman beings, so our emotions
get the better of us.
And when it comes to money, I'msorry, there's just no way for
emotions.
I tell people like this is ahuman.
Creative system is designed towork with people who can look at
things and make rationaldecisions based on that
(18:39):
information to have at the time.
It doesn't reward people thatbasically try to figure out that
one plus one can equal four.
It punishes people like that.
So emotion is a big part of it.
But aside from the emotion, whenyou get into how we think about
the system of financial wealth,at the end of the day everyone
is going down to just trying tocreate cash flow.
(19:01):
But yet when you go throughyour entire system, from
elementary school, from whateverelse you go through you don't
learn about cash flow until itactually matters.
So most people they only startthinking about cash flow when
they get to retirement.
They realize, okay, great, wehave this $1 million property,
but now I'm not going to be ableto work, so now what do I do?
And the advice is like oh, wecan sell the property.
Now we're going to generate acash flow for you.
(19:23):
My thing to yell people is like, if the end of the game is
about cash flow, why not startbuilding your cash flow early on
?
So a lot of times when it comesto cash flow, people are too
focused on acquiring the assets,and again that's a distraction,
because it's great you can talkto your pal and your friends
about like hey, you know, Ibought a rental property.
(19:44):
I bought whatever it is, butit's all about cash flow.
The quicker you get to the cashflow you need.
And then again your cash flowdepends on what kind of
lifestyle you want to have.
Some people want to need a cashflow that basically needs
$10,000 a month.
Some people could be perfectlyhappy with a cash flow of $2,500
a month, right.
So it all depends on what kindof lifestyle you want.
And then send a plan to createthe cash flow you need, because
(20:08):
once you do that, you realizethat you've reached financial
independence.
But the problem is you've gotall this different distractions,
right.
Like you know, go buy principalresident because it was cool,
so you spend like way more moneythan you should and again that
eats away your cash flow.
So now you're going to that jobthat you don't like because
you're going to pay for thisasset, and then you know
everyone gives you you knowprops about, you know it's great
(20:29):
, whatever, but you're unhappybecause you can do the things
that you want.
So it's a cash flow game andthat means you have to
discipline yourself, understandwhat am I emotionally wanting
and what is actually notsomething that's going to help
me financially.
So those are the two thingsthat try to help people with is
understanding what youremotional triggers are and
(20:49):
understand that this is a cashflow Very well articulated
Brighton, how do you coachsomeone to create positive
emotions as it pertains to thesubject of financial freedom,
financial independence?
Speaker 1 (21:02):
Because, as you said, when most people were not
taught which you just explainedto us in school, right, we're
taught to go to school, go towork.
We're not taught these thingsand you got to seek out this.
Information, podcasts, meetups,events, pay for coaching this
and that.
How do you coach?
And so most people havenegative emotions because they
get a job, Exactly what you justsaid that cycle man.
(21:23):
I could not have articulated itany better.
That cycle, I went in and I gota house.
Because that's a dream, that'sthe American dream or the
Canadian dream?
There is such a thing in.
Canton there is, esther is badEsther is there, okay, but
that's the dream, right, that'sthe dream.
And so you get this house.
And now, like you said, man,everything you said in the house
(21:45):
I'm a big proponent of myprimary residence is not my
biggest asset.
For most Americans we're taughtthat it's your biggest asset
and actually, my house, mypersonal residence, where I live
, it's my biggest liability,because if that's the only thing
I own and I have to go out andwork to pay for that thing, that
(22:07):
means it's taking money out ofmy pocket.
That means it's my biggestliability.
It's not putting money in mypocket.
So my job is exactly what yousaid to go find cash flowing,
income producing assets that aregoing to be producing enough
cash flow to pay for that house,so that I don't personally have
to go out and work and my assetpay for my living expenses.
Most people don't get that.
(22:27):
However, it's a very scarything and I'm raising my hand
here because I've been there.
It's a very scary thing.
After you own your house andyou have equity and you're
taught that debt is bad and youjust want to pay off that
mortgage as fast as you can soyou can ride into the sun.
I don't have this bill and Ican continue to work now so I
(22:47):
can go travel and do things, butyou're still working to go do
this, you're still a slave tosomething or you still have to
be going to that job you dislike, like you said, to do that
thing.
So it's an emotional shift thatneeds to happen internally for
us to see money and to see cashflow in a different light.
How are you coaching me aroundthat topic?
(23:08):
How are you breaking this downfor me?
Like, how are you shifting myemotions around money and cash
flow?
Speaker 2 (23:14):
That's a very good question, man, and I've been
there too, like with all of us,I think, our investors.
We've all had that point where,in that crosswalk journey, we're
like hey you know things aregoing good, like, why am I going
to take more risk?
Right, and I think you hit iton the head is basically like
the way I try to coach was tounderstand, like you said you
(23:35):
said it perfectly which is likewe all have negative emotions or
things that we're dealing within ourselves, that we're not
aware of Limitation, that we'vetold.
So, for me, when I meet someone, I always try to figure out
what is your money, what is itthat you're trying to avoid?
Because there's two ways withmoney.
Right, you either use money tohide the things you all know
about you that you're reallyafraid of, right, and that's why
(23:58):
we use things like.
That's why it works really well, guys, like you think.
Like, if you look at a carcommercial, what's the one thing
you never really see?
Car commercials, traffic.
That's true, I never evennoticed that.
That's true, very good.
You never see traffic.
Think about another example,like, think about liquor.
What do you always see when yousee like a liquor commercial
(24:18):
Friends have already taught younever see that.
We've all been there.
You never see the next nightwhere you're going.
Bad, that was rough.
I feel like crap.
I missed that appointment I wassupposed to go to.
I didn't go to that jobinterview because of Tom
Goldberg.
So what I'm trying to tell youis that, when it comes to human
beings, it's all about whatwe're feeling and the feelings
we attribute to the things thatwe do.
(24:39):
So when you go to do aninvestment like you're trying to
take that hundred K to buy yourfirst investment property but
we need to figure out, is whatis the feelings that you're
tripping into that and where arethey coming from?
Oh man, you know, like I couldlose the whole house.
Okay, so are you feelingfearful that your family would
think you aren't successful?
(25:00):
Let's talk about that.
Why is that your definition ofsuccess, right?
Oh man, you know what, if I Ilose the whole house, I'm my
friends and gonna think like I'man idiot.
Okay, so you're surely con.
You really care about orthinking.
Let's let's dive in a littlebit about what's going on there.
Why does it matter what peoplethink about you so much?
And these are things that weall struggle with, right, it's
(25:22):
just identifying.
What is it that feeling?
What is that feeling thatyou're feeling?
And that emotion in this case,fear when is that coming from
and where am I triggered by thatright?
Once you get through that, youunderstand oh shoot, okay, I'm
just afraid of, like, the factthat lose the money.
Now we identify what the fearis and now we can put a plan
around and that's where we canthen go.
(25:43):
Okay, here's how this work.
Here's our exit position if weget in a situation where over
leverage right, and we findourselves that, you know, the
market is going good.
So I talked to my clients aboutwhat are your fears and let's
figure what the game plan is forthose fears, right?
So one of the biggest fear foranyone who's doing that for the
first time is like, hey, bro,like I got 100k, I got four kids
(26:05):
.
I can't afford to be losing the100k.
Like.
That doesn't work that way.
Okay, that's your fear.
You're afraid you're gonna losethe money.
Let's figure out a plan on howwe're not gonna lose the money
while we're gonna put a hundredchain there.
Now, if we put a hundred key ona property and most rental
properties are 25%, historicallyspeaking it's gonna be very red
the property, even if they're.
(26:26):
You know, even in 08 if you hada property that had at least
70% down.
It's very rare that you'regonna have to lose all that.
But, furthermore, if we havesomeone renting in there, we're
not relying on our income asmuch.
I'm just talking out while youwill go through the strategies
to help you Kind of bring thatfear down and understand as a
planning place which somethingdoes happen.
(26:48):
And that's what I do, because Idon't like doing something until
I have multiple exit positions.
Because I'm the kind of personwhen I talk people is I like to
figure out what not, I don'tinvest based on best case
scenario.
I go what is the worst possiblething that could happen?
And Am I happy going along withthat?
If the worst scenario wouldhave come true, can I still hold
onto this investment?
And if I can, I'm gonna investbased on the worst case scenario
(27:11):
Because ultimately I know theworst case problem gonna happen,
but if it does, I have a planthat I can go through and make
sure I get Stick with theinvestment.
So for me, when it comes tomoney, is just emotion on this
that, like the feelings you have, is based on things that you've
associated with those, andIdentifying those feelings and
then working out a plan toaddress those feelings itself.
Speaker 1 (27:32):
Why do poor people Dislike to talk about money?
Why is it that in Middle-incomepeople and poor people's
household the money topic issomething frowned upon?
Speaker 2 (27:45):
Man, that's a beautiful question because,
honestly, I agree with you ahundred percent.
We, my committee know, like me,we're just starting like
talking about.
Oh right, you know, I think youknow I don't listen to hip-hop
or whatever, but, like back inthe day, ain't no one talking
about money.
But now it's beautiful.
People want to talk about theirbusinesses, they want to talk
about what they're doing, youknow, and that's great because,
(28:08):
again, that's where the young me, when I was young, but that's
what I'm listening to.
So if you ain't talked about it, why would I have interest in
those admirable models, right atthat time, right?
So I think the biggest thing,why realize why or poor Don't
talk, or people who don'tanother money, is they develop
what I call the poverty mindset.
I put this in my book, right,the poverty mindset is this man,
(28:30):
all these people out here.
He's so rich, they go onvacation, they buy it up all the
properties.
Man, that's BS, man, man, I'mworking three jobs, I'm working
my butt off and not many workingfor me.
Speaker 1 (28:44):
Right, I'll reject that.
I reject that for you, for meand for the listeners.
By the way, Right.
Speaker 2 (28:52):
So so you keep going with them and tell the in the
poverty mindset is basicallywhat happens is you spend all
your energy blaming all thethings that are happening.
And it's a really powerfulMindset, because what that means
is you start believing that youcan't solve your situation
Because it's out of your controland, let's be perfectly for all
(29:14):
of us getting situations aremore dire than others.
What I'm saying is, once youallow the mindset that you
actually believe you don't havethe ability to change your
position, then yeah, why wouldyou bother?
It doesn't matter what you do,because you can be stuck there.
So the poverty mindset is onethat you have to get away from.
Even no matter what yoursituation is.
(29:36):
You cannot give up the abilityto understand that you still
have the ability to either meetthe right person To talk
yourself through a difficultsituation.
You cannot get that up, becauseonce you get that up, that's we
into the poverty mindset, whereyou stop blaming other people
or can annoyed about theirsuccesses because you feel the
(29:57):
system it is is rigged.
Put it this way.
Let me put a quick example.
What I mean by that is a lot ofpeople come to me.
They're like man, I should workin this job, man.
It sucks, man.
Like you know, everyone'sgetting ahead and I'll look,
I'll go through the numbers.
I'm like, bro, if you reallyare serious, you want to have
financial success.
You got to sell your property.
You got to do this.
(30:18):
Your plan is right there.
Like, you have the option, doit.
Your challenges that you don'twant to do that so it's not that
you don't have the means to getto where you want to go is that
you're fighting between one toget to the place you want to go
in the matter only, which youthink you should be able to get.
So that's what I mean by thepoverty mindset.
A lot of times, we're just intrap.
(30:39):
And then, when it comes to ourcommunity, the other thing is
just a lack of education.
We just didn't get theeducation.
So that's why we got to meetpeople within our communities.
There They've got the educationand bring it back to us so we
can start feeling this as like aconversation we can have,
because I don't know about you,but my parents and I we didn't
talk about money, yeah, right inhere.
So how am I gonna learn now ifyou talk to other communities,
(31:01):
change start there.
Does a real estate investor,just like your kid.
They're no longer more stuffabout this business because they
have access to saw who's in it,right.
So that's also part of thechallenge in the community is,
just for all my employees,what's you get people who are
good in this space that looklike you from the same community
?
Then, yeah, you have aninterest in them because, like
man, we're still pretty good.
(31:22):
Like, okay, I'm gonna go afterthat right.
Or Brighton, he's doing prettygood, oh, I'm gonna go after
that right.
But if you don't have thosemodels, the reality is, yeah, we
don't have the knowledge.
So there, we just keeprepeating the same cycle, that
previous generation, that whichis, we keep consuming stuff but
we're not building anything forour community in our family down
the road right.
Speaker 1 (31:43):
So, growing up for me , brighton I would hear things
like rich people are bad.
I grew up in New York City, inthe poor side of New York City,
uptown, washington Heights.
Here people say things likerich people are bad.
They have the businesses, theylive downtown, they live on Park
Avenue.
We're here working in thefactories, working for them.
The Republicans don't careabout us, they only care about
(32:06):
money.
These are the things, that kindof the conversations that that
traveled and I reject that, bythe way, for you, my listener
and myself, but these are thethings that I would hear.
How are you coaching someonethat comes from that background?
Right, because in ourcommunities and black and
minorities, we see that a lot.
There's a lot of that.
There's a lot of lack ofeducation.
There's a lot ofmisunderstanding.
(32:26):
There's a lot of.
We see the ballplayers.
If you're not in Dominican andI'm Dominican it's either
baseball players, the way youmake it out.
If you're black, yourbasketball or football player,
right.
If in your country, it's if yougot to become an athlete, run
right, be a runner, right.
I get.
It's just these things andthese stereotypes, that what we
see is these athletic peoplethat look like us, that are
(32:48):
Super successful.
I'll tell you somethinginteresting.
I was watching this video theother day and I just to share
your here man-to-man with yourbrother-to-brother is I was
watching this video the otherday about top 15 athletes right,
really cool, and I want thelisteners to top highest paid 15
athletes.
Of course, lebron James was inthere.
You had Stefan, stefan Marburyin there.
(33:11):
You had a lot of what's it?
A bunch of athletes, right, andI'm looking at their net worth,
right, I'm looking at their networth that these guys are like
at the top of their game andlike 15 million, and I got
friends.
I got friends that their networth is Significantly higher.
Fifth, 80 million, right, ahundred and five million.
(33:31):
I think Messi was like ahundred and thirty million or
something like that.
The soccer player, I think hewas number one and I'm like dude
, I got friends that are realestate people that are close to
that or past, not the 130million.
I know developers are, yeah,but like, like, I got friends
(33:52):
that are like this, all soachievable for Us, but we're not
taught that that's not what wesee as young minorities In
minority households.
Right, we see athletes, singers, rappers, that's what we see,
but we can do it in real estate.
And I'm looking at those numbersand I'm like, hmm, I'm gonna be
in that number in five or tenyears.
(34:12):
Right, I keep doing what I'mdoing.
You've got three of them.
Be at that number.
Because I was like I'm going upand I'm going to the next level
and I'm playing at the nextlevel, like I'm gonna be at that
number.
So when I look at those numberstoday from the, from the
education level that I havetoday about Financing and
investing, I look at thosenumbers and I look at these guys
(34:32):
.
Those guys have high payingjobs.
If they don't invest, they, ifthey don't get this education,
even those guys, if they don'thave the right people around
them, they're gonna be broke.
That's why, within five years,football players are broke after
retirement.
Same thing for baseball.
Yeah, my nephew works for, forMLB, he does.
They have like this majorleague baseball.
(34:53):
They have this thing of charityfor retired baseball players
that are in trouble and dude, Ihave the stats from him and he's
traveling around the worldHelping these baseball retired
baseball players.
They go broke because theynever had the financial
education.
Yeah, so looking at thesenumbers and I'm like, hey, man,
I'm gonna be there and like I,like I'm timing it out.
(35:14):
I'm looking at the video andI'm like dude, I'll be there in
10 years, 15, 20, 25 year and Ididn't have to have this special
talent ability, I just had tolearn some things about money
and continue to have to getbetter.
How are we helping and how canyou help the young people?
Write, those millennials orzeers, these young people to say
, hey man, you don't have to bea Stefan Marbury, you don't have
(35:34):
to be staff.
It's not whatever.
You have to be a LeBron.
You don't have to be these guysTo be a millionaire.
Speaker 2 (35:40):
So I will only speak to my career because I don't
want to offend anyone else.
That's I can also be doingmyself.
So let me put, as a blackperson growing up in Canada or
just in North America in general, all the world, really, if you
put it that way.
So what I've realized isnarratives are really important.
You tell a story enough timesFor human beings.
(36:01):
It doesn't need to be true, itjust needs to be believable
individually, like that'sliterally it.
Things don't need to be true.
And that's where starting torealize in this world, like you
need to keep a structure andwhen we decide what is the truth
, that you and I need to have amechanism in which, when we have
a disagreement, how are theways we go about defining what
is the truth.
Now they're never doing this tothe really important, because
(36:23):
if you tell narrative over, over, over again, generations, just
like they'll previously, justaccept that until someone
decides when they go.
Let me look into that.
So what's happened for me inthe black midi I realized
growing up is that We've beentold they've chipping out the
whole economic Process,particularly in North, and I
would be keeping out of it likethey've chipped us out.
(36:43):
But now this is going way backand realized that there was a
thing called red line in the us.
There were basically, likeblack people couldn't bind to
certain communities, right, andif you look at the ways the
communities in which blackpeople predominantly are forced
to live in, they're notIndescribable or as though
nowadays, with realistic kind ofeveryone's fight for land,
those communities are beingflipped into newer communities,
right, but what I realized isblack A person is.
(37:07):
I realized that, oh, the storyto tell me is that For you to
become successful, it's going tobe one in two ways Entertain
people, right, or go through thesporting group.
And again, either way is aboutentertaining people, Whether
you're an interesting people,you're a comedian, your movie
star, you're a basketball player.
Now, what's really interestingif I'm a young kid, a young
(37:29):
black kid?
What if I'm not athletic?
What if I don't have athletictalent?
Well then, the notion is thatyou can't be successful, you
don't have a pathway to becomeultra wealthy Because you don't
have the talent, and blackpeople are known to be great
athletes, greater entertainers.
So I guess I can't do that.
(37:49):
So I guess I'm just going to gothrough the normal course of
life and go work for somehowWhatever it is.
So when I came to write in mybook one reason I took about a
white book is because peoplelike you within your community
and myself, you have to show whoit's possible.
So it's the people talk aboutthe book.
It's not really like kind ofdoing this for like.
So I was thinking about thatkid.
I remember that kid thinkingit's got to be something where I
(38:12):
played basketball.
But I was always different.
I was always thinking aboutstuff I was always trying to
like okay, like.
I focused on like great, Iwasn't just playing basketball
Was just the means to give mewhat I wanted to do and, to be
honest with you, basketball.
The reason I played basketballwas to get an education, because
my dad always told me like hey,man, they can't take what
(38:32):
you've already learned out ofyour brain.
You can't take that.
Once you learned something,it's with you forever, right,
they can't steal that from you.
So when I played basketball, itwasn't to play basketball to,
you know, become an NBA star,though as a kid, we all have the
dream.
But I knew my focus was I'mgonna get a scholarship off this
bass, that's how I'm gonna goto free schooling, and that's
(38:53):
what I did so.
When I wrote the book I thoughtabout that shit, who's going,
kim blackboat, write books?
Okay, doing their own?
Yeah, you can do that and youhave the means to do that.
You don't have to be an athlete, you don't have to be a singer,
you can go do other things.
And our community CharlesBarkley said it in our community
(39:16):
, said it best it's like when hegoes to school and he's all
something I want to be doctorsand whatever it is All the other
non-black kids will raise theirhands like you guys get some
white diversity.
When he goes to predominantlyblack school, everyone wants to
just be a basketball player andhe's going like no, there's
other ways to do this.
And that's what I'm saying isfor our communities is we have
(39:38):
to start telling ourselves I'mlimiting ourselves that we only
have one pathway to get there,because then it makes it very
difficult for all of us to besuccessful when we're basically
saying the only way we can besuccessful is only one person
for pathway.
The other communities Don'tthink that a kid can be a
skateboarder, a kid can be asurfer, a kid can be a doctor.
(39:59):
A kid can be whatever it is.
They understand there's so manydifferent ways for them to
become successful.
So they're not trained to justsay, well, I guess the only one
I'm going to be able to becomesuccess is becoming All at all
now over sports team.
No, that doesn't think that way.
So we have to start telling Ourcommunities that are young, big
kids, you could be whatever youwant and whatever path we have
(40:23):
to.
Let where you're due for yourkid and you don't understand
it's so impactful is you'reshowing them it's possible.
So whether you becomesuccessful 25 years, it doesn't
matter.
Really, you've shown them it'spossible and that's what we have
to do with, not communities isshow them that it's possible,
because showing is way moreeffective than saying hey.
So once they see that, then thenext year I wish on this that,
(40:45):
oh, this is possible, oh, I cango do this if the basketball
thing doesn't work out, you know.
Or I can go to be a singer.
I actually prefer to do thisand hey, you can be way more
wealthy doing this.
So to me from my community,that's what I try to do is just
showing like, hey, guys, it'spossible, I'm doing it.
So when you come up, you can doa way better than I did because
(41:05):
you know this and watch earlierage than I did, because I'm
telling you right now, guys,find you this at 18, y'all
wouldn't be talking to me rightnow.
Well, you would be.
You would be talking to me.
But you get my point when I'msaying is like you and I always
think about this, if we knewthis information earlier, man,
we'd be.
We're helping out the nextgeneration.
Speaker 1 (41:25):
100%, 100%.
Last question what's thebiggest difference to pertain to
mindset you found with poorpeople and your rich, wealthy
clients was the biggestdifference in their language and
their habits and In there, inthe way they think in their
(41:47):
mindset because I've dealt withboth, I can speak to this Um.
Speaker 2 (41:51):
So, on the personal level, rich people are stingy.
They'll feel as stingy, butit's just.
They're very good at countingfor everything.
Um, so that's one term youcould say there.
That's what they get.
That term like.
They're very.
They watch their pocket.
But to be successfulfinancially you do have to watch
it pocket.
You have to understand wheremoney is coming in, where money
is going out.
So when it comes to porkywood,they're sort of like hands off
(42:14):
with their money.
A poor person may come to me andsay you know what I'm
struggling.
I don't really know what'sgoing on.
Like I don't have enough moneyto pay my credit card bills.
But then you like okay.
So like, how much do you make?
Uh, how much is your expensiveMonthly?
So how do you know that youdon't have enough money?
Well, I just I don't haveenough money every month.
There's nothing left over.
A rich person or a wealthyperson, I should say, if they
(42:35):
have a wealthy and have done itproperly, oh, they know why.
They're things all working.
So when they come to me likebright, I have a cash flow
problem.
I need to figure out how I cangeneral cash flow on this.
So their questions is morespecific.
Right, they know exactly whatthe problem is.
They're trying to figure out.
What do you think or do youhave any creativity that I
haven't thought about and how toresolve this problem I have
(42:55):
right now.
They know what it is right.
Well, it's when it comes to,like poor people.
If they don't even know whatthe problem is, they just know
that, hey, it's not working out,but they haven't spent the time
to kind of think about theproblem a little bit.
It's seed to identify what thepotential cause might be.
So I think that's thedifference between in talking to
(43:17):
ultra wealthy people andtalking to common people.
It's just, and you can have thesame mind, like a common person
can have a wealthy mindset, andthat's where they're going to
do very well, because they havethe same mindset.
And you can also, by the way,you can also have a wealthy
person that has a poor personmindset, because maybe they've
just gotten money from theirparents but they don't really
understand how it works.
Um, so you can have that too.
(43:38):
But I think the biggest thing isthat wealthy people are more
specific in their language.
They tend to view theirproblems as not.
Oh, this is silly, be beingdown to them, but they
understand my key.
This is something I can workthrough.
I need to get the help.
Well, it's poor.
People tend to feel the poormindset of such as a poor, my
(44:00):
right, and you know.
This is terrible.
This has happened to me.
So I think those are the twodifferent things that would say
it's just.
One is more I can change things, and the other ones more like
oh my gosh, I'm being victimizedagain, kind of the thing.
Right, yeah, yeah.
Speaker 1 (44:13):
So there's a saying that states where your focus
goes, your energy flows andresults show, and you said it.
Poor people don't know wheretheir money is is going and
what's happening, while wealthypeople Know where their money is
at all times.
I one thing I have learned fromwealthy people is I've
(44:36):
interviewed many and spoken tomany, have many wealthy friends,
and one habit that I've I'veactually acquired myself as a
business owner is Every dayspend some time looking at my
bank accounts right, seeingwhat's going in, what's going
out, what's going in, becausewhere your focus goes, your
energy flows right.
So if you're focusing on onyour cash flow and you're
(44:59):
focusing on what's coming in andwhere you're spending your
money and what's going out, youcan improve.
It will get focused on, getsimproved where your focus goes,
energy slowly also.
So if you focus on it, itimproves.
If you focus on your expensesand your income, it will improve
If you're spending in.
That's a habit like anythingelse.
If you do it ten minutes a day,I you know, I have, I have
friends that they they do itevery day.
(45:20):
I've picked up the habit isevery day they spend 15 20
minutes.
So I went to a and I'll sharethis with you.
I went to an event, themillionaire mine intensive.
It's called the book that THarbeck had wrote the secrets of
a millionaire mine and then inthat then there'sa there was I
don't know.
If you read that book, thenthere's, there's an event that
(45:41):
goes with that book it's nolonger I haven't ran, yeah, it's
no longer available was througha company called success
resources and they have a.
They have any event, like Isaid, the millionaire mine
intensive, whatever and one ofthe things that we I learned in
that, in that three-day event,was that you know, you, there's
a mantra that they taught usthere and is my part-time
(46:04):
business is to manage my moneyevery day.
So you, it's a, it's a, it's ahabit, right, millionaires, re
wealthy people, manage theirmoney every day.
So my part-time, my part-timeBusiness, is to create cash flow
with my money.
My money makes money for me.
So that's a mindset you startto, you start to say that to
yourself, you start to behave inthat way and you start to take
(46:26):
the actions that actuallydeliver those results.
And one of the ways that I Frombeing around real rich people
is that they focus on theirmoney, so they pay attention to
whether money's not thatliterally Like they view their
money as part-time business ispart.
Part of what they do is managetheir money to make sure their
money is constantly making money.
(46:47):
My brother appreciate you, man.
Thank you so much for coming onhere and and oh it was a lot of
fun, man oh.
Before we go to the entire wrong, what's?
Speaker 2 (47:01):
the name of your yes, oh, no, worries, man, just want
to make sure we give value tothe audience.
So we're good, um the boats.
Call master your mortgage.
What the bank will not tell youabout buying the ride home, you
can get it on Amazon.
So we're just again goingAmazon.
It's on there, it's perfect,perfect.
Speaker 1 (47:15):
We're gonna go into the entitled round right now
where we're gonna ask a seriesof questions you could justify
if you want.
You don't have to.
If you don't want one word,answers is fine.
And are you ready to play, sir?
Speaker 2 (47:26):
Let's go real estate is Real estate is a great asset
for creating wealth.
My advice to young people is myadvice to young people is to
focus on cash flow.
I've always wanted to traveltoo.
Oh man, that's, that's a toughone, but I'm just gonna.
I'm say I've always wanted totravel everywhere, so that's
(47:46):
just I'm.
I have a list of places I gottago into, so that's my second
hobby.
So I'm gonna say ever, I'vealways wanted to travel.
Speaker 1 (47:54):
I highly recommend people should read.
Speaker 2 (47:57):
There's so many books I'd like.
Well, I would say I recommendyou read master.
Your mortgage with the bankwill not tell you about the ride
home, but if you're not readingthat book, one of the books
that I always come to, the startme an investment, johnny was
Jack Bogle's book, the little.
I think it's called.
Let me see it's back here.
Yeah, the little book of commonsense, invest and that's a
(48:18):
really good family or business.
Family always more time or moremoney, always more time guys.
More time, passion or stabilitythat's a tough one and the
reason I'm thinking about isbecause, like passion can be a
dangerous thing, because if yougo into a passion that doesn't
provide your stability becomesnuts.
So the Mike Mahaj says thatthis is a complicated answer.
(48:44):
I'm gonna say, like balls Booksmart or street smart, that's a
misconception.
You need both wine or beer.
I'm a wine guy.
Speaker 1 (48:54):
Unlimited free trip to anywhere in the world or win
a million dollars every time yourun a marathon.
Speaker 2 (49:00):
Well, no, it's got million dollars.
There's more on a marathonbecause I can go anywhere in the
world.
Speaker 1 (49:03):
Then Ha ha, that's good.
And last, even though you're inCanada, trump or Biden.
Speaker 2 (49:12):
Oh, you know one thing, guys I will sit.
That's this question.
Money is a political, and I tryto be a political either,
because my dad told me thatthere's no sense in only being
good and working in one system.
You gotta be good working inany system you find yourself,
and so learn to be a political.
Speaker 1 (49:27):
Thank you, brian.
If people wanted to get a holdwith you could connect with you
on social.
Get your book, I guess, just ingeneral, connect with you, get
service, get your services.
How do they find you?
How do they connect with sureman, appreciate it?
So yeah, the best way is go towealthmarathoncom If you want to
connect with me on social.
Speaker 2 (49:43):
Check up the YouTube channel wealth marathon, tiktok
wealth marathon, instagramwealth marathon as well.
So yeah, those are the Charlesand get a hold of me yet.
Thank you, brother, appreciateyou being here.
Thank you for coming out andsharing your wisdom, your
insights on your knowledge.
Speaker 1 (49:55):
Appreciate you, my friend.
Speaker 2 (50:01):
No, I appreciate you.
Having me on this was awesomeyou.
Hey guys, welcome back to another episode of
Latinos in Real Estate InvestingPodcasts, where individuals
just like you come to learn howto create wealth through real
estate investing,entrepreneurship and business
ownership.
And today's guest is BrightonBrazia.
And.
Brighton is a financial andreal estate expert with over a
(00:20):
decade of experience working forsome of Canada's largest banks
and credit unions as a financialadvisor and mortgage
underwriter.
As the CEO of Wealth Marathon,Brighton provides sound and
straightforward financial adviceto young professionals and
families in Canada to help themcreate the kind of wealth and
financial success that only onecome that can only come with
(00:43):
long term planning and properexecution.
Excuse me, Born in Nigeria,Brighton currently resides in
British Columbia.
When he isn't talking aboutmoney, you're likely to find him
planning his next internationaltrip or running the nearest
half marathon.
So you're a half marathonrunner, my friend.
Welcome, sir.
(01:04):
That's right, Matt, Welcome.
It was a pleasure to have youon Brighton, so tell us a little
bit about yourself.
Why don't we start there,Brighton?
Where did this journey start ofyou wanting to focus on real
estate and then teaching peopleon financial independence?
Speaker 2 (01:23):
Yeah, I think good question to start off with.
For me it started kind of whenI started working at the bank.
So after university I landed myfirst show working for the bank
.
So I was working for one of thetop banks in Canada here and
during that time I just startedhaving conversation, because
when you're a financial advisoryou get all kinds of people.
So I would have theseconversations with Irish people
(01:44):
just buying real estate and thenI would have conversations with
people who own real estateproperty.
And that's kind of where Istarted, because when I worked
with the bank I was more of astock guy, right, I was more
like full in the market.
But then I kept hearing thestuff about real estate and how
people some of my clients thatbasically were retired how did
it was to real estate.
(02:04):
So that's where kind of the boxstarted is talking to these
clients.
And then they started tellingme a little bit why real estate
was a good asset for retirement.
So then when I went to buy myown first personal real estate,
that conversations changed theway I approached that real
estate itself, because prior tothat I was like everyone else
and like you know what, I'm akid from Nigeria.
So I was just like you know.
(02:26):
It's always been a dream to owna home, right, you know?
Because my parents were rightto where we came from, Canada,
and I was just like you knowwhat I want to own that home.
But what?
By having these conversationswith these investors, it changed
my perception of what realestate is and like really what
you should focus on.
So my first property wasactually a property which I
bought and basically it had asuite in it, so I would rent out
(02:48):
the suite to kind of help meproduce an income to try to pay
out the mortgage.
So for me that's where the realestate box started was just
like you know, nowadays it'skind of common to do that.
But back when I started itwasn't really a thing to buy a
home and it rented out thebasement suite.
But nowadays most people dothat when you buy like a
principal resident because theprice is so high to begin with,
right.
So that's where it started forme for real estate on this end
(03:11):
of power of you know, realestate, leveraging it and how
you can produce income for it toset yourself up for retirement.
So that'll be where I startedwhen it comes to real estate.
It's just my first propertyitself.
Speaker 1 (03:22):
So, being an immigrant family coming from
Nigeria my first mentor was fromyour country Really feel really
lucky and blessed to have Titusin my life.
Shout out to you Titus, ifyou're listening, appreciate
everything.
What was the biggestmisconception you had?
What was the biggest shift youhad to have in your mindset to
(03:45):
become an investor?
Speaker 2 (03:46):
I think it depends where you're coming from the
world.
Typically what you'll find islike if you're coming from like
Nigeria.
Back when my family came toCanada, that's predominantly
used to be a cash-based system,and what I mean by that is like
everything is down to cash.
There's really no credit.
So when my parents came toCanada, you're coming from a
cash-based system wheretypically people pay for stuff
(04:09):
in cash, and then you come to asystem where people kind of
leverage credit.
They don't have the cash, theyjust have credit.
So I think that's the biggestmindset I would say if you're an
immigrant coming from NigeriaMaybe not nowadays because
there's credit everywhere,they're familiar with it, but I
think still people don't fullyunderstand credit.
They're still thinking in cashterms and really this is a game
(04:30):
where you have to understand howto utilize credit and how to
maximize credit to get yourselfwhere you are, because
ultimately let's be realistic noone's putting out $2 million
cash in the property I meanthere's cash in the form of
their equity you can get out,but no one has $2 million cash
per se.
So I think that's the biggestmindset shift that I kind of am
good at is that I understandthat this is the credit world,
(04:54):
your ability to be successful,and this that in terms of like
to be successful.
While you have to understandhow do I leverage credit, how
does credit work, and understandwhat are some of the trappings
of credit and how do I avoidthat, and I think for most
immigrants they're too much inthe sense of like they're told
about yes, you know you shouldget credit, so, like you know,
buy principal res and get creditor buy a car or whatever it is.
(05:16):
They're really not focused onunderstanding like credit needs
to be managed in the sense oflike.
When you're using credit,particularly when you're buying
stuff such as a whole or aproperty or a car, the income
really matters because, at theend of the day, you want the
credit to be able to service thedebt that you're taking on.
And that's something that peopledon't understand.
When it comes to credit, theyjust think, hey, as long as I
(05:36):
can afford it, I'm going to getit, but it's like really no, you
need to figure out how to usecredit to join an income stream
so you can pay off the balanceand then use it more to buy
other stuff that produce moreincome.
So I think that's the biggestshift you have to understand
when it comes to this game ishow do I leverage credit?
Because it's a credit game, nota cash game anymore.
Speaker 1 (05:55):
When you say leverage credit to create income streams
.
Can you elaborate on that andexplain to me and the listeners
what you mean by that?
Speaker 2 (06:05):
Sure, and I'll give like maybe two examples in terms
like how to poorly use it andhow to use it.
So you're an investor, I've beenan investor, so we understand
that.
So let's take someone who has,like a principal resident right
and they've paid down themortgage, whatever, and they
have a little bit of equity.
So most people in my space,when I would do the personal
finance or as an advisor, theywill come to me to do a debt
(06:28):
consolidation.
But that means is basicallythey've racked up some credit
card debt somewhere else outsideand now they're like oh my gosh
, like this credit card debt istoo large, the interest rate's
really high, but they have thisproperty.
It has a little bit of equityin it, so they'll go.
You know what?
I could take the 50k in myequity and I could pay down the
(06:50):
credit card debt and that's agood thing.
Any theory that sounds good,but that's the problem.
I don't understand credit.
What you're doing is you'rebasically leveraging credit the
equity you've built up in yourhome to pay down a bad debt that
doesn't produce any income foryou and you're basically
increasing mortgage debt.
Now take the other way for aninvestor.
What an investor will do Aninvestor will go.
(07:11):
I've got $50,000 equity in mywhole, my principal resident.
What they will do is they willtake that credit and they use it
to go buy either an investmentproperty which can generate
income share for themselves, orthey may use it to buy a real
estate property like a rentalproperty, and I don't know if
the US is enough for them to taxthem in the US, but in Canada,
by doing that taking that moneyand buying a property, a rental
(07:33):
property now you have theability to write off the
interest on that mortgage itself.
Now you have the ability towrite off the interest on the
initial equity you took outbecause maybe you're paying a
loan in that portion of it towrite that off as well.
And now you have the potentialof a property where in the
future you're going to putsomeone in there to write it
down, pay down the loan, thepotential that's going to become
an income share down the roadwe retire.
(07:55):
So that's what I mean by beingable to understand how to
leverage credit.
One is most people are going toleverage credit to buy a car,
you know, depreciate an asset topay down their debt Again.
They're just increasing theoverall debt itself.
Or you can take credit,leverage it to produce by
property.
They can produce you an incomestream and give you other tax
advantages.
So those are two different waysto use credit.
(08:17):
You just need to understandlike you want to do.
The other way, you want to buyan asset that can produce an
income share and gives your dearfriend advantages when it comes
to taxes.
Speaker 1 (08:26):
Okay, great, great answer.
Now, I am a person I am alistener that has a family.
I'm doing okay, don't have muchcredit, don't have much debt,
my mortgage is halfway throughor maybe, with the market having
been so inflated over the lastthree to four years right after
(08:48):
COVID, the market haven't goneup so much I find myself with a
ton of equity and let's say Ihave $100,000 in equity and I
come to you and I say, hey,brighton, can you explain to me
or that listener listening towhat you just said on how to
take that $100,000 and create agoal, maybe how I can use that
(09:09):
$100,000 that I have in equityto go and create and this is not
financial advice, by the way,guys.
I want to make sure weabsolutely, absolutely explain
that we're using a hypotheticalsituation.
Okay, just a hypotheticalsituation.
Speaker 2 (09:22):
Yeah, and again, just before I answer that we're not
doing financial advice, we don'tknow your situation.
So, guys, I know a lot of timesyou get the stuff online, which
is cool, but we're runningthrough an example.
So what you're saying issomeone has $100,000 in equity
in their home and you'rethinking what is the best way to
utilize that equity?
Now, a couple of things to keepin mind.
Most of the times, we have anequity in your home, right,
(09:44):
unless you're basically sellingthat property.
Chances are, when you pull outthat equity, there's going to be
two options.
Either you're going to havewhat we call an equity line of
credit, which is basically likethinking about like a credit
card, but just like on steroids,that's attached to your home.
Or you may take out like anactual loan, so you could just
take out like a mortgage loanfor $100,000.
(10:04):
Either way, they're going tohave an interest associated with
those products.
Right, you're going to bepaying back interest once you
utilize.
Now, on the equity line ofcredit, you don't have to pay
any interest until you utilizeit.
I mean, you take out the loan,you don't have to pay the
interest right away.
We've always been going toutilize it.
So what that individual coulddo and the scenario is playing
out is they could go okay, Ihave $100,000 in my home right
(10:27):
now.
I could keep paying it down,but then that becomes debt
equity, right, because it's justsitting there, which is great,
you don't have any additionaldebt, but it becomes debt equity
.
What that individual could do isgo look for a property right,
another property to buy.
They could take that $100,000,assuming they get approved for
that $100,000.
And then they can utilize thatand put it as a down payment
(10:48):
towards an investment prop,right?
So you would go back to thebank say, hey, I'm looking to
buy an investment property.
I have $100,000 in down paymentBecause you have that equity in
your home.
The bank would view that equityas down payment on the new
property.
So, effectively, we take the$100,000.
So our principal resident isthat $100,000, but they were
(11:08):
going to put $100,000 down onthis new property which is going
to bring out the mortgage.
We would then do some analysisto make sure that this makes
sense.
Ideally, the rate that you'regoing to be generated on this
new property would be sufficientenough to come with the
mortgage and other expensesrelated to that property.
The wall caution.
I will tell you straight up,because I see this so many times
(11:29):
if you're using an equity lineof credit, which means you're
pulling an equity line at aprincipal resident and you're
doing analysis on a rentalproperty, it's nearly impossible
to generate enough cash flow onthe new property, the new
rental property, but $100,000now that it will cover that
property's expenses and alsocover the expenses relating to
your equity line of creditpayment itself.
(11:51):
So it's really important thatyou have applied to how are you
actually going to cover thatmortgage itself, that portion
that you've taken out equity, tomake sure you don't get
yourself in a bad situation.
A lot of people forget that, orthey're trying to find a
property that covers both.
It's like that's impossible.
You're not going to find aproperty that generates enough
cash flow to do that.
But by doing that essentiallynow, every year, we're going to
(12:11):
have someone paying down ourmortgage right and as the
mortgage gets paid down, yourrental property.
You know the balance is going togo down.
And what you could do down theroad, as I suggest you could do
this basically, each time youpay down the mortgage, we call
credit moving, you move thebalance over from your principal
resident into your rentalproperty.
So you're kind of flipping thecredit around.
(12:33):
Effectively, what you want todo down the road is move all the
mortgage you have in yourprincipal resident and you want
to actually move it to yourrental property to have them
paying down the mortgage.
So that's one way to becomeyourself Down the road, become
completely mortgage free.
Or you can just do paying yourmortgage, pay down that mortgage
and maybe, if the propertyappreciates your time, you could
sell it and once you sell itthen you could take that balance
(12:54):
to pay off your mortgage andyou can call it mortgage free.
So lots of different ways to doit, but that's the structure.
Take that equity, find aproperty that makes sense, put
that as a doubt payment and thenbasically now you have rental
property that's producing income.
Speaker 1 (13:07):
So I love everything that you just mentioned, except
one small little part.
I disagree with you in one part.
That's the part of that if onetakes, it's going to be
impossible to take the equityfrom your house and find a
property that can pay for both.
I do it all the time, so it'sjust finding the right deal
right.
You can find this deal If youfind the right deal, if you work
(13:31):
with the right off marketwholesaler.
So I would you know, this is aninvestor podcast, so we teach
people how to find deals.
And if you're buying on the MLS,completely agree with you,
because if you're buying on theMLS, you're competing with the
world.
We're going to be completelyhonest.
We're competing with mostpeople that don't even remotely
(13:51):
understand what Brighton justexplained.
They have no idea, so they'lloverpay for properties.
But if you learn how to buyproperties and not overpay for
properties, and know how to buythem using the 70% rule and
learn how to buy them from otherinvestors wholesalers at a
discount maybe they need alittle bit of work and you buy
them at 60 or 70 cents on thedollar of value, then you got
(14:14):
yourself a deal and you may evenbe able to pay the money back
on that, on that HELOC, if youlearn how to do that.
Again, that's all part of theanalysis that guys like Brighton
does with you.
But again, something I just wantto pre disclose here is go and
get educated.
When we always talk about thatin this podcast is the most
important thing is go learnfirst.
(14:35):
Go learn the numbers, go geteducated, go get this type of
information First before you doanything.
Don't just go crazy and startbuying just because, hey, I had
a podcast.
This is what they said.
No, go get educated, go tomeetups, go ahead, you mean?
Speaker 2 (14:49):
it, that's right, go get yourself educated.
Now they just power.
They say right, now they justpower.
Speaker 1 (14:54):
Yeah, go get yourself educated, Okay.
So my next question to you, myfriend, is what is the most
common misconception that youwould find when you was at the
bank, with regular working classpeople wanting to start
investing in real estate, whatwas the biggest limiting belief?
Speaker 2 (15:13):
That's a good question and, to be honest, to
top my head, I can't think ofone consistent thing.
But I think, just talking toclients and what you just
mentioned, I think the one thingI would say is just
no-transcript, or maybelimitation, just like you're
saying, is just limiting interms of what's possible.
(15:33):
Because, again, I alwaysbelieve like what's possible is
reflected on who you surroundyourself and what you've seen.
So sometimes if you justhaven't been exposed to a
particular thing, you may justfind it not be possible because
you haven't exposed to it, youhaven't seen it, so then it's
not real to you.
So I think that the one thing Iwould say that I do see over
(15:55):
time is just, typically, mostpeople want to buy real estate.
When it comes to owning realestate for themselves personally
, they want to live it.
But when you start thinkingabout owning real estate in
terms of generating the cashflow, there's this idea that I'm
dealing with tenants or I'mhaving to manage a property and
(16:16):
they get very scared becausethey're so large.
So when the first I was toclients, I was like you think I
want to be dealing with toiletsAny more than you do?
Nope, that's why I get aproperty manager and it's
amazing how, when you tellpeople you can have someone do
this stuff for you if that's notyour expertise or that's not an
area in the space that youparticularly like, you can have
(16:37):
people that are interested inthat.
That's their expertise to dothat service.
So I think in general we justsaid there's a lack of just
understanding how to reallycreate wealth and how you can do
real estate in so manydifferent ways.
Like the way you do real estateis different the way I do real
estate, and that's the beauty ofthis space.
Right, there's a variety ofdifferent ways to get to the
(16:58):
same goal.
You just have to figure whichpath makes sense for you and
which path you are likely tostick with over the long term,
because, again, in this space,longevity matters for you to get
to your success and you need tofigure which one works for you.
For some people it's buyingreal estate properties and just
repeating the cycle.
For some it's footbed In theside.
(17:18):
For some it's wholesale buying,like there's a whole variety of
different ways to do that andyou just need to find a way to
get to that.
So I think for most people it'sjust limitation of
understanding like it's possible.
There's many different ways tomake money in real estate.
And then also when they havecertain things like hey, I don't
want to deal with tenants, Idon't want to be like they're
with toilets.
They forget like there's otherpeople you can have, do those
(17:41):
things that you don't like.
That can now stop you frommoving forward from what it goes
to happen when it comes to realestate.
Speaker 1 (17:47):
When you think of real estate and you being a guy
that helps millennials, youngpeople, families create
financial independence, what'sthe one thing that you find that
most people are missing intheir thinking or in their
structure?
The average working classperson.
What do you find is the thingthat is holding most people back
(18:10):
in your experience fromactually reaching financial
independence?
Speaker 2 (18:16):
Oh, that's a long question.
It's on digestion.
But if I'm going to sum it down, I would say there's two things
.
One, emotions, because we'rehuman beings, so our emotions
get the better of us.
And when it comes to money, I'msorry, there's just no way for
emotions.
I tell people like this is ahuman.
Creative system is designed towork with people who can look at
things and make rationaldecisions based on that
(18:39):
information to have at the time.
It doesn't reward people thatbasically try to figure out that
one plus one can equal four.
It punishes people like that.
So emotion is a big part of it.
But aside from the emotion, whenyou get into how we think about
the system of financial wealth,at the end of the day everyone
is going down to just trying tocreate cash flow.
(19:01):
But yet when you go throughyour entire system, from
elementary school, from whateverelse you go through you don't
learn about cash flow until itactually matters.
So most people they only startthinking about cash flow when
they get to retirement.
They realize, okay, great, wehave this $1 million property,
but now I'm not going to be ableto work, so now what do I do?
And the advice is like oh, wecan sell the property.
Now we're going to generate acash flow for you.
(19:23):
My thing to yell people is like, if the end of the game is
about cash flow, why not startbuilding your cash flow early on
?
So a lot of times when it comesto cash flow, people are too
focused on acquiring the assets,and again that's a distraction,
because it's great you can talkto your pal and your friends
about like hey, you know, Ibought a rental property.
(19:44):
I bought whatever it is, butit's all about cash flow.
The quicker you get to the cashflow you need.
And then again your cash flowdepends on what kind of
lifestyle you want to have.
Some people want to need a cashflow that basically needs
$10,000 a month.
Some people could be perfectlyhappy with a cash flow of $2,500
a month, right.
So it all depends on what kindof lifestyle you want.
And then send a plan to createthe cash flow you need, because
(20:08):
once you do that, you realizethat you've reached financial
independence.
But the problem is you've gotall this different distractions,
right.
Like you know, go buy principalresident because it was cool,
so you spend like way more moneythan you should and again that
eats away your cash flow.
So now you're going to that jobthat you don't like because
you're going to pay for thisasset, and then you know
everyone gives you you knowprops about, you know it's great
(20:29):
, whatever, but you're unhappybecause you can do the things
that you want.
So it's a cash flow game andthat means you have to
discipline yourself, understandwhat am I emotionally wanting
and what is actually notsomething that's going to help
me financially.
So those are the two thingsthat try to help people with is
understanding what youremotional triggers are and
(20:49):
understand that this is a cashflow Very well articulated
Brighton, how do you coachsomeone to create positive
emotions as it pertains to thesubject of financial freedom,
financial independence?
Speaker 1 (21:02):
Because, as you said, when most people were not
taught which you just explainedto us in school, right, we're
taught to go to school, go towork.
We're not taught these thingsand you got to seek out this.
Information, podcasts, meetups,events, pay for coaching this
and that.
How do you coach?
And so most people havenegative emotions because they
get a job, Exactly what you justsaid that cycle man.
(21:23):
I could not have articulated itany better.
That cycle, I went in and I gota house.
Because that's a dream, that'sthe American dream or the
Canadian dream?
There is such a thing in.
Canton there is, esther is badEsther is there, okay, but
that's the dream, right, that'sthe dream.
And so you get this house.
And now, like you said, man,everything you said in the house
(21:45):
I'm a big proponent of myprimary residence is not my
biggest asset.
For most Americans we're taughtthat it's your biggest asset
and actually, my house, mypersonal residence, where I live
, it's my biggest liability,because if that's the only thing
I own and I have to go out andwork to pay for that thing, that
(22:07):
means it's taking money out ofmy pocket.
That means it's my biggestliability.
It's not putting money in mypocket.
So my job is exactly what yousaid to go find cash flowing,
income producing assets that aregoing to be producing enough
cash flow to pay for that house,so that I don't personally have
to go out and work and my assetpay for my living expenses.
Most people don't get that.
(22:27):
However, it's a very scarything and I'm raising my hand
here because I've been there.
It's a very scary thing.
After you own your house andyou have equity and you're
taught that debt is bad and youjust want to pay off that
mortgage as fast as you can soyou can ride into the sun.
I don't have this bill and Ican continue to work now so I
(22:47):
can go travel and do things, butyou're still working to go do
this, you're still a slave tosomething or you still have to
be going to that job you dislike, like you said, to do that
thing.
So it's an emotional shift thatneeds to happen internally for
us to see money and to see cashflow in a different light.
How are you coaching me aroundthat topic?
(23:08):
How are you breaking this downfor me?
Like, how are you shifting myemotions around money and cash
flow?
Speaker 2 (23:14):
That's a very good question, man, and I've been
there too, like with all of us,I think, our investors.
We've all had that point where,in that crosswalk journey, we're
like hey you know things aregoing good, like, why am I going
to take more risk?
Right, and I think you hit iton the head is basically like
the way I try to coach was tounderstand, like you said you
(23:35):
said it perfectly which is likewe all have negative emotions or
things that we're dealing within ourselves, that we're not
aware of Limitation, that we'vetold.
So, for me, when I meet someone, I always try to figure out
what is your money, what is itthat you're trying to avoid?
Because there's two ways withmoney.
Right, you either use money tohide the things you all know
about you that you're reallyafraid of, right, and that's why
(23:58):
we use things like.
That's why it works really well, guys, like you think.
Like, if you look at a carcommercial, what's the one thing
you never really see?
Car commercials, traffic.
That's true, I never evennoticed that.
That's true, very good.
You never see traffic.
Think about another example,like, think about liquor.
What do you always see when yousee like a liquor commercial
(24:18):
Friends have already taught younever see that.
We've all been there.
You never see the next nightwhere you're going.
Bad, that was rough.
I feel like crap.
I missed that appointment I wassupposed to go to.
I didn't go to that jobinterview because of Tom
Goldberg.
So what I'm trying to tell youis that, when it comes to human
beings, it's all about whatwe're feeling and the feelings
we attribute to the things thatwe do.
(24:39):
So when you go to do aninvestment like you're trying to
take that hundred K to buy yourfirst investment property but
we need to figure out, is whatis the feelings that you're
tripping into that and where arethey coming from?
Oh man, you know, like I couldlose the whole house.
Okay, so are you feelingfearful that your family would
think you aren't successful?
(25:00):
Let's talk about that.
Why is that your definition ofsuccess, right?
Oh man, you know what, if I Ilose the whole house, I'm my
friends and gonna think like I'man idiot.
Okay, so you're surely con.
You really care about orthinking.
Let's let's dive in a littlebit about what's going on there.
Why does it matter what peoplethink about you so much?
And these are things that weall struggle with, right, it's
(25:22):
just identifying.
What is it that feeling?
What is that feeling thatyou're feeling?
And that emotion in this case,fear when is that coming from
and where am I triggered by thatright?
Once you get through that, youunderstand oh shoot, okay, I'm
just afraid of, like, the factthat lose the money.
Now we identify what the fearis and now we can put a plan
around and that's where we canthen go.
(25:43):
Okay, here's how this work.
Here's our exit position if weget in a situation where over
leverage right, and we findourselves that, you know, the
market is going good.
So I talked to my clients aboutwhat are your fears and let's
figure what the game plan is forthose fears, right?
So one of the biggest fear foranyone who's doing that for the
first time is like, hey, bro,like I got 100k, I got four kids
(26:05):
.
I can't afford to be losing the100k.
Like.
That doesn't work that way.
Okay, that's your fear.
You're afraid you're gonna losethe money.
Let's figure out a plan on howwe're not gonna lose the money
while we're gonna put a hundredchain there.
Now, if we put a hundred key ona property and most rental
properties are 25%, historicallyspeaking it's gonna be very red
the property, even if they're.
(26:26):
You know, even in 08 if you hada property that had at least
70% down.
It's very rare that you'regonna have to lose all that.
But, furthermore, if we havesomeone renting in there, we're
not relying on our income asmuch.
I'm just talking out while youwill go through the strategies
to help you Kind of bring thatfear down and understand as a
planning place which somethingdoes happen.
(26:48):
And that's what I do, because Idon't like doing something until
I have multiple exit positions.
Because I'm the kind of personwhen I talk people is I like to
figure out what not, I don'tinvest based on best case
scenario.
I go what is the worst possiblething that could happen?
And Am I happy going along withthat?
If the worst scenario wouldhave come true, can I still hold
onto this investment?
And if I can, I'm gonna investbased on the worst case scenario
(27:11):
Because ultimately I know theworst case problem gonna happen,
but if it does, I have a planthat I can go through and make
sure I get Stick with theinvestment.
So for me, when it comes tomoney, is just emotion on this
that, like the feelings you have, is based on things that you've
associated with those, andIdentifying those feelings and
then working out a plan toaddress those feelings itself.
Speaker 1 (27:32):
Why do poor people Dislike to talk about money?
Why is it that in Middle-incomepeople and poor people's
household the money topic issomething frowned upon?
Speaker 2 (27:45):
Man, that's a beautiful question because,
honestly, I agree with you ahundred percent.
We, my committee know, like me,we're just starting like
talking about.
Oh right, you know, I think youknow I don't listen to hip-hop
or whatever, but, like back inthe day, ain't no one talking
about money.
But now it's beautiful.
People want to talk about theirbusinesses, they want to talk
about what they're doing, youknow, and that's great because,
(28:08):
again, that's where the young me, when I was young, but that's
what I'm listening to.
So if you ain't talked about it, why would I have interest in
those admirable models, right atthat time, right?
So I think the biggest thing,why realize why or poor Don't
talk, or people who don'tanother money, is they develop
what I call the poverty mindset.
I put this in my book, right,the poverty mindset is this man,
(28:30):
all these people out here.
He's so rich, they go onvacation, they buy it up all the
properties.
Man, that's BS, man, man, I'mworking three jobs, I'm working
my butt off and not many workingfor me.
Speaker 1 (28:44):
Right, I'll reject that.
I reject that for you, for meand for the listeners.
By the way, Right.
Speaker 2 (28:52):
So so you keep going with them and tell the in the
poverty mindset is basicallywhat happens is you spend all
your energy blaming all thethings that are happening.
And it's a really powerfulMindset, because what that means
is you start believing that youcan't solve your situation
Because it's out of your controland, let's be perfectly for all
(29:14):
of us getting situations aremore dire than others.
What I'm saying is, once youallow the mindset that you
actually believe you don't havethe ability to change your
position, then yeah, why wouldyou bother?
It doesn't matter what you do,because you can be stuck there.
So the poverty mindset is onethat you have to get away from.
Even no matter what yoursituation is.
(29:36):
You cannot give up the abilityto understand that you still
have the ability to either meetthe right person To talk
yourself through a difficultsituation.
You cannot get that up, becauseonce you get that up, that's we
into the poverty mindset, whereyou stop blaming other people
or can annoyed about theirsuccesses because you feel the
(29:57):
system it is is rigged.
Put it this way.
Let me put a quick example.
What I mean by that is a lot ofpeople come to me.
They're like man, I should workin this job, man.
It sucks, man.
Like you know, everyone'sgetting ahead and I'll look,
I'll go through the numbers.
I'm like, bro, if you reallyare serious, you want to have
financial success.
You got to sell your property.
You got to do this.
(30:18):
Your plan is right there.
Like, you have the option, doit.
Your challenges that you don'twant to do that so it's not that
you don't have the means to getto where you want to go is that
you're fighting between one toget to the place you want to go
in the matter only, which youthink you should be able to get.
So that's what I mean by thepoverty mindset.
A lot of times, we're just intrap.
(30:39):
And then, when it comes to ourcommunity, the other thing is
just a lack of education.
We just didn't get theeducation.
So that's why we got to meetpeople within our communities.
There They've got the educationand bring it back to us so we
can start feeling this as like aconversation we can have,
because I don't know about you,but my parents and I we didn't
talk about money, yeah, right inhere.
So how am I gonna learn now ifyou talk to other communities,
(31:01):
change start there.
Does a real estate investor,just like your kid.
They're no longer more stuffabout this business because they
have access to saw who's in it,right.
So that's also part of thechallenge in the community is,
just for all my employees,what's you get people who are
good in this space that looklike you from the same community
?
Then, yeah, you have aninterest in them because, like
man, we're still pretty good.
(31:22):
Like, okay, I'm gonna go afterthat right.
Or Brighton, he's doing prettygood, oh, I'm gonna go after
that right.
But if you don't have thosemodels, the reality is, yeah, we
don't have the knowledge.
So there, we just keeprepeating the same cycle, that
previous generation, that whichis, we keep consuming stuff but
we're not building anything forour community in our family down
the road right.
Speaker 1 (31:43):
So, growing up for me , brighton I would hear things
like rich people are bad.
I grew up in New York City, inthe poor side of New York City,
uptown, washington Heights.
Here people say things likerich people are bad.
They have the businesses, theylive downtown, they live on Park
Avenue.
We're here working in thefactories, working for them.
The Republicans don't careabout us, they only care about
(32:06):
money.
These are the things, that kindof the conversations that that
traveled and I reject that, bythe way, for you, my listener
and myself, but these are thethings that I would hear.
How are you coaching someonethat comes from that background?
Right, because in ourcommunities and black and
minorities, we see that a lot.
There's a lot of that.
There's a lot of lack ofeducation.
There's a lot ofmisunderstanding.
(32:26):
There's a lot of.
We see the ballplayers.
If you're not in Dominican andI'm Dominican it's either
baseball players, the way youmake it out.
If you're black, yourbasketball or football player,
right.
If in your country, it's if yougot to become an athlete, run
right, be a runner, right.
I get.
It's just these things andthese stereotypes, that what we
see is these athletic peoplethat look like us, that are
(32:48):
Super successful.
I'll tell you somethinginteresting.
I was watching this video theother day and I just to share
your here man-to-man with yourbrother-to-brother is I was
watching this video the otherday about top 15 athletes right,
really cool, and I want thelisteners to top highest paid 15
athletes.
Of course, lebron James was inthere.
You had Stefan, stefan Marburyin there.
(33:11):
You had a lot of what's it?
A bunch of athletes, right, andI'm looking at their net worth,
right, I'm looking at their networth that these guys are like
at the top of their game andlike 15 million, and I got
friends.
I got friends that their networth is Significantly higher.
Fifth, 80 million, right, ahundred and five million.
(33:31):
I think Messi was like ahundred and thirty million or
something like that.
The soccer player, I think hewas number one and I'm like dude
, I got friends that are realestate people that are close to
that or past, not the 130million.
I know developers are, yeah,but like, like, I got friends
(33:52):
that are like this, all soachievable for Us, but we're not
taught that that's not what wesee as young minorities In
minority households.
Right, we see athletes, singers, rappers, that's what we see,
but we can do it in real estate.
And I'm looking at those numbersand I'm like, hmm, I'm gonna be
in that number in five or tenyears.
(34:12):
Right, I keep doing what I'mdoing.
You've got three of them.
Be at that number.
Because I was like I'm going upand I'm going to the next level
and I'm playing at the nextlevel, like I'm gonna be at that
number.
So when I look at those numberstoday from the, from the
education level that I havetoday about Financing and
investing, I look at thosenumbers and I look at these guys
(34:32):
.
Those guys have high payingjobs.
If they don't invest, they, ifthey don't get this education,
even those guys, if they don'thave the right people around
them, they're gonna be broke.
That's why, within five years,football players are broke after
retirement.
Same thing for baseball.
Yeah, my nephew works for, forMLB, he does.
They have like this majorleague baseball.
(34:53):
They have this thing of charityfor retired baseball players
that are in trouble and dude, Ihave the stats from him and he's
traveling around the worldHelping these baseball retired
baseball players.
They go broke because theynever had the financial
education.
Yeah, so looking at thesenumbers and I'm like, hey, man,
I'm gonna be there and like I,like I'm timing it out.
(35:14):
I'm looking at the video andI'm like dude, I'll be there in
10 years, 15, 20, 25 year and Ididn't have to have this special
talent ability, I just had tolearn some things about money
and continue to have to getbetter.
How are we helping and how canyou help the young people?
Write, those millennials orzeers, these young people to say
, hey man, you don't have to bea Stefan Marbury, you don't have
(35:34):
to be staff.
It's not whatever.
You have to be a LeBron.
You don't have to be these guysTo be a millionaire.
Speaker 2 (35:40):
So I will only speak to my career because I don't
want to offend anyone else.
That's I can also be doingmyself.
So let me put, as a blackperson growing up in Canada or
just in North America in general, all the world, really, if you
put it that way.
So what I've realized isnarratives are really important.
You tell a story enough timesFor human beings.
(36:01):
It doesn't need to be true, itjust needs to be believable
individually, like that'sliterally it.
Things don't need to be true.
And that's where starting torealize in this world, like you
need to keep a structure andwhen we decide what is the truth
, that you and I need to have amechanism in which, when we have
a disagreement, how are theways we go about defining what
is the truth.
Now they're never doing this tothe really important, because
(36:23):
if you tell narrative over, over, over again, generations, just
like they'll previously, justaccept that until someone
decides when they go.
Let me look into that.
So what's happened for me inthe black midi I realized
growing up is that We've beentold they've chipping out the
whole economic Process,particularly in North, and I
would be keeping out of it likethey've chipped us out.
(36:43):
But now this is going way backand realized that there was a
thing called red line in the us.
There were basically, likeblack people couldn't bind to
certain communities, right, andif you look at the ways the
communities in which blackpeople predominantly are forced
to live in, they're notIndescribable or as though
nowadays, with realistic kind ofeveryone's fight for land,
those communities are beingflipped into newer communities,
right, but what I realized isblack A person is.
(37:07):
I realized that, oh, the storyto tell me is that For you to
become successful, it's going tobe one in two ways Entertain
people, right, or go through thesporting group.
And again, either way is aboutentertaining people, Whether
you're an interesting people,you're a comedian, your movie
star, you're a basketball player.
Now, what's really interestingif I'm a young kid, a young
(37:29):
black kid?
What if I'm not athletic?
What if I don't have athletictalent?
Well then, the notion is thatyou can't be successful, you
don't have a pathway to becomeultra wealthy Because you don't
have the talent, and blackpeople are known to be great
athletes, greater entertainers.
So I guess I can't do that.
(37:49):
So I guess I'm just going to gothrough the normal course of
life and go work for somehowWhatever it is.
So when I came to write in mybook one reason I took about a
white book is because peoplelike you within your community
and myself, you have to show whoit's possible.
So it's the people talk aboutthe book.
It's not really like kind ofdoing this for like.
So I was thinking about thatkid.
I remember that kid thinkingit's got to be something where I
(38:12):
played basketball.
But I was always different.
I was always thinking aboutstuff I was always trying to
like okay, like.
I focused on like great, Iwasn't just playing basketball
Was just the means to give mewhat I wanted to do and, to be
honest with you, basketball.
The reason I played basketballwas to get an education, because
my dad always told me like hey,man, they can't take what
(38:32):
you've already learned out ofyour brain.
You can't take that.
Once you learned something,it's with you forever, right,
they can't steal that from you.
So when I played basketball, itwasn't to play basketball to,
you know, become an NBA star,though as a kid, we all have the
dream.
But I knew my focus was I'mgonna get a scholarship off this
bass, that's how I'm gonna goto free schooling, and that's
(38:53):
what I did so.
When I wrote the book I thoughtabout that shit, who's going,
kim blackboat, write books?
Okay, doing their own?
Yeah, you can do that and youhave the means to do that.
You don't have to be an athlete, you don't have to be a singer,
you can go do other things.
And our community CharlesBarkley said it in our community
(39:16):
, said it best it's like when hegoes to school and he's all
something I want to be doctorsand whatever it is All the other
non-black kids will raise theirhands like you guys get some
white diversity.
When he goes to predominantlyblack school, everyone wants to
just be a basketball player andhe's going like no, there's
other ways to do this.
And that's what I'm saying isfor our communities is we have
(39:38):
to start telling ourselves I'mlimiting ourselves that we only
have one pathway to get there,because then it makes it very
difficult for all of us to besuccessful when we're basically
saying the only way we can besuccessful is only one person
for pathway.
The other communities Don'tthink that a kid can be a
skateboarder, a kid can be asurfer, a kid can be a doctor.
(39:59):
A kid can be whatever it is.
They understand there's so manydifferent ways for them to
become successful.
So they're not trained to justsay, well, I guess the only one
I'm going to be able to becomesuccess is becoming All at all
now over sports team.
No, that doesn't think that way.
So we have to start telling Ourcommunities that are young, big
kids, you could be whatever youwant and whatever path we have
(40:23):
to.
Let where you're due for yourkid and you don't understand
it's so impactful is you'reshowing them it's possible.
So whether you becomesuccessful 25 years, it doesn't
matter.
Really, you've shown them it'spossible and that's what we have
to do with, not communities isshow them that it's possible,
because showing is way moreeffective than saying hey.
So once they see that, then thenext year I wish on this that,
(40:45):
oh, this is possible, oh, I cango do this if the basketball
thing doesn't work out, you know.
Or I can go to be a singer.
I actually prefer to do thisand hey, you can be way more
wealthy doing this.
So to me from my community,that's what I try to do is just
showing like, hey, guys, it'spossible, I'm doing it.
So when you come up, you can doa way better than I did because
(41:05):
you know this and watch earlierage than I did, because I'm
telling you right now, guys,find you this at 18, y'all
wouldn't be talking to me rightnow.
Well, you would be.
You would be talking to me.
But you get my point when I'msaying is like you and I always
think about this, if we knewthis information earlier, man,
we'd be.
We're helping out the nextgeneration.
Speaker 1 (41:25):
100%, 100%.
Last question what's thebiggest difference to pertain to
mindset you found with poorpeople and your rich, wealthy
clients was the biggestdifference in their language and
their habits and In there, inthe way they think in their
(41:47):
mindset because I've dealt withboth, I can speak to this Um.
Speaker 2 (41:51):
So, on the personal level, rich people are stingy.
They'll feel as stingy, butit's just.
They're very good at countingfor everything.
Um, so that's one term youcould say there.
That's what they get.
That term like.
They're very.
They watch their pocket.
But to be successfulfinancially you do have to watch
it pocket.
You have to understand wheremoney is coming in, where money
is going out.
So when it comes to porkywood,they're sort of like hands off
(42:14):
with their money.
A poor person may come to me andsay you know what I'm
struggling.
I don't really know what'sgoing on.
Like I don't have enough moneyto pay my credit card bills.
But then you like okay.
So like, how much do you make?
Uh, how much is your expensiveMonthly?
So how do you know that youdon't have enough money?
Well, I just I don't haveenough money every month.
There's nothing left over.
A rich person or a wealthyperson, I should say, if they
(42:35):
have a wealthy and have done itproperly, oh, they know why.
They're things all working.
So when they come to me likebright, I have a cash flow
problem.
I need to figure out how I cangeneral cash flow on this.
So their questions is morespecific.
Right, they know exactly whatthe problem is.
They're trying to figure out.
What do you think or do youhave any creativity that I
haven't thought about and how toresolve this problem I have
(42:55):
right now.
They know what it is right.
Well, it's when it comes to,like poor people.
If they don't even know whatthe problem is, they just know
that, hey, it's not working out,but they haven't spent the time
to kind of think about theproblem a little bit.
It's seed to identify what thepotential cause might be.
So I think that's thedifference between in talking to
(43:17):
ultra wealthy people andtalking to common people.
It's just, and you can have thesame mind, like a common person
can have a wealthy mindset, andthat's where they're going to
do very well, because they havethe same mindset.
And you can also, by the way,you can also have a wealthy
person that has a poor personmindset, because maybe they've
just gotten money from theirparents but they don't really
understand how it works.
Um, so you can have that too.
(43:38):
But I think the biggest thing isthat wealthy people are more
specific in their language.
They tend to view theirproblems as not.
Oh, this is silly, be beingdown to them, but they
understand my key.
This is something I can workthrough.
I need to get the help.
Well, it's poor.
People tend to feel the poormindset of such as a poor, my
(44:00):
right, and you know.
This is terrible.
This has happened to me.
So I think those are the twodifferent things that would say
it's just.
One is more I can change things, and the other ones more like
oh my gosh, I'm being victimizedagain, kind of the thing.
Right, yeah, yeah.
Speaker 1 (44:13):
So there's a saying that states where your focus
goes, your energy flows andresults show, and you said it.
Poor people don't know wheretheir money is is going and
what's happening, while wealthypeople Know where their money is
at all times.
I one thing I have learned fromwealthy people is I've
(44:36):
interviewed many and spoken tomany, have many wealthy friends,
and one habit that I've I'veactually acquired myself as a
business owner is Every dayspend some time looking at my
bank accounts right, seeingwhat's going in, what's going
out, what's going in, becausewhere your focus goes, your
energy flows right.
So if you're focusing on onyour cash flow and you're
(44:59):
focusing on what's coming in andwhere you're spending your
money and what's going out, youcan improve.
It will get focused on, getsimproved where your focus goes,
energy slowly also.
So if you focus on it, itimproves.
If you focus on your expensesand your income, it will improve
If you're spending in.
That's a habit like anythingelse.
If you do it ten minutes a day,I you know, I have, I have
friends that they they do itevery day.
(45:20):
I've picked up the habit isevery day they spend 15 20
minutes.
So I went to a and I'll sharethis with you.
I went to an event, themillionaire mine intensive.
It's called the book that THarbeck had wrote the secrets of
a millionaire mine and then inthat then there'sa there was I
don't know.
If you read that book, thenthere's, there's an event that
(45:41):
goes with that book it's nolonger I haven't ran, yeah, it's
no longer available was througha company called success
resources and they have a.
They have any event, like Isaid, the millionaire mine
intensive, whatever and one ofthe things that we I learned in
that, in that three-day event,was that you know, you, there's
a mantra that they taught usthere and is my part-time
(46:04):
business is to manage my moneyevery day.
So you, it's a, it's a, it's ahabit, right, millionaires, re
wealthy people, manage theirmoney every day.
So my part-time, my part-timeBusiness, is to create cash flow
with my money.
My money makes money for me.
So that's a mindset you startto, you start to say that to
yourself, you start to behave inthat way and you start to take
(46:26):
the actions that actuallydeliver those results.
And one of the ways that I Frombeing around real rich people
is that they focus on theirmoney, so they pay attention to
whether money's not thatliterally Like they view their
money as part-time business ispart.
Part of what they do is managetheir money to make sure their
money is constantly making money.
(46:47):
My brother appreciate you, man.
Thank you so much for coming onhere and and oh it was a lot of
fun, man oh.
Before we go to the entire wrong, what's?
Speaker 2 (47:01):
the name of your yes, oh, no, worries, man, just want
to make sure we give value tothe audience.
So we're good, um the boats.
Call master your mortgage.
What the bank will not tell youabout buying the ride home, you
can get it on Amazon.
So we're just again goingAmazon.
It's on there, it's perfect,perfect.
Speaker 1 (47:15):
We're gonna go into the entitled round right now
where we're gonna ask a seriesof questions you could justify
if you want.
You don't have to.
If you don't want one word,answers is fine.
And are you ready to play, sir?
Speaker 2 (47:26):
Let's go real estate is Real estate is a great asset
for creating wealth.
My advice to young people is myadvice to young people is to
focus on cash flow.
I've always wanted to traveltoo.
Oh man, that's, that's a toughone, but I'm just gonna.
I'm say I've always wanted totravel everywhere, so that's
(47:46):
just I'm.
I have a list of places I gottago into, so that's my second
hobby.
So I'm gonna say ever, I'vealways wanted to travel.
Speaker 1 (47:54):
I highly recommend people should read.
Speaker 2 (47:57):
There's so many books I'd like.
Well, I would say I recommendyou read master.
Your mortgage with the bankwill not tell you about the ride
home, but if you're not readingthat book, one of the books
that I always come to, the startme an investment, johnny was
Jack Bogle's book, the little.
I think it's called.
Let me see it's back here.
Yeah, the little book of commonsense, invest and that's a
(48:18):
really good family or business.
Family always more time or moremoney, always more time guys.
More time, passion or stabilitythat's a tough one and the
reason I'm thinking about isbecause, like passion can be a
dangerous thing, because if yougo into a passion that doesn't
provide your stability becomesnuts.
So the Mike Mahaj says thatthis is a complicated answer.
(48:44):
I'm gonna say, like balls Booksmart or street smart, that's a
misconception.
You need both wine or beer.
I'm a wine guy.
Speaker 1 (48:54):
Unlimited free trip to anywhere in the world or win
a million dollars every time yourun a marathon.
Speaker 2 (49:00):
Well, no, it's got million dollars.
There's more on a marathonbecause I can go anywhere in the
world.
Speaker 1 (49:03):
Then Ha ha, that's good.
And last, even though you're inCanada, trump or Biden.
Speaker 2 (49:12):
Oh, you know one thing, guys I will sit.
That's this question.
Money is a political, and I tryto be a political either,
because my dad told me thatthere's no sense in only being
good and working in one system.
You gotta be good working inany system you find yourself,
and so learn to be a political.
Speaker 1 (49:27):
Thank you, brian.
If people wanted to get a holdwith you could connect with you
on social.
Get your book, I guess, just ingeneral, connect with you, get
service, get your services.
How do they find you?
How do they connect with sureman, appreciate it?
So yeah, the best way is go towealthmarathoncom If you want to
connect with me on social.
Speaker 2 (49:43):
Check up the YouTube channel wealth marathon, tiktok
wealth marathon, instagramwealth marathon as well.
So yeah, those are the Charlesand get a hold of me yet.
Thank you, brother, appreciateyou being here.
Thank you for coming out andsharing your wisdom, your
insights on your knowledge.
Speaker 1 (49:55):
Appreciate you, my friend.
Speaker 2 (50:01):
No, I appreciate you.
Having me on this was awesomeyou.
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