HAVE CASH NOW WHAT???

SPEAKER_1 (0:00)

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Michael Zuber (0:30)

All righty, folks, I'm going to let you in on a conversation I had with one of my buddies yesterday. He reached out to me and said, Michael, it's an emergency.

I need to talk to you. And I said, OK, what's up, buddy? He said, hey, I've got a pile of capital. You can make up your own number, a million bucks, 500 grand, 100 grand, 50 grand, whatever number is comfortable to you. He had that and he was in a tizzy. He's like, what should I do with that money? And you know what I said, I gave him some thoughts, which I'm sure I will share here. But I thought a better question would be to ask another one of my millionaires, Casey, from Brick by Brick, what would she be telling folks if she got that similar phone call? So Casey, feel free to pick any number you would like, 50, 100, a million bucks, whatever you're comfortable with.

What should people be doing with their cash today? Any thoughts?

Casey (1:15)

Yes, absolutely. I get asked this a lot too, especially new people who join my coaching program looking to invest in real estate, but also not sure if that's the right vehicle for them, if they should invest in stocks or they should save it or whatever. And really, the number depends on where you're at in your life. For some, $50,000 is a weekend trip, and for some, that's their life savings.

Michael Zuber (1:36)

That's a hell of a weekend.

Casey (1:38)

Yeah, you can rent a car down, $50,000, you know, as one weekend trip.

SPEAKER_1 (1:42)

That's a hell of a weekend.

Casey (1:43)

But maybe, I don't know.

SPEAKER_1 (1:45)

I get you. You get what I'm saying?

Casey (1:47)

It's a drop in the bucket for some people. So depending on where you are in your life, a certain amount of money is going to mean something to you.

And there's a lot of places you can put your money, of course. But there is one place, one place that provides a lot of opportunity and advantages, and it is real estate. And that's why that will be my number one choice. I would say if you have some money, I would start investing it into real estate. Obviously, not going down to the penny.

Let's just say $50,000. That's a respectable amount. That's a good enough amount to house hack, or to buy a single family, or to buy a duplex, to get started buying long-term rental investing. 50,000 is a good number. And I would say that would be what it's required to have to put down. But if you had money and you're looking for somewhere to put it, I would absolutely put it somewhere that's going to appreciate, it's going to provide you long-term wealth down the road and provide you income. So slowly but surely, over time, you're able to replace some of your income, your day job income, with long-term rentals to reduce the burden on your spouse's shoulders or your shoulders, if you're the breadwinner, right? It's just a very helpful, like Casper the Friendly Ghost, third party who lives in your home and just pays you every month, but doesn't live there, eat your food. That's what long-term rental investing is. And so you just need to get started one rental at a time.

Michael Zuber (3:14)

There you go. It's funny, when I get, I've had this question hundreds of times now over the last 20 years. And we've got to be really careful because everybody's situation is different. The first thing I would always tell someone is, do you have an emergency fund? And in this case, my friend does, right? This capital that he has is extra. It's investible capital. It's not like every penny they have. And this is a buddy of mine who traditionally every year buys a commercial building.

That's his thing. He buys one commercial building, usually in Q4 because he sees how his year's going. And he's looking to play the real estate game. Buy the building, do cost segregation, do all of these things to help his taxes. And he's been doing this quite successfully for years. But we had a conversation about this year. And I let him know what Olivia and I were doing. Olivia and I are sitting on the largest pile of cash we've ever had. And right now, I'm not doing anything with it, right? It's just sitting in a money market or high-yield CD or whatever it is. Let's call it 4%, maybe a touch more. And I'm okay with that right now. Because to me, cash is an opportunity.