How to Get Started with Real Estate Investing Using the Rule of Two

SPEAKER_1 (0:00)

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Michael Zuber (0:30)

All right, folks, we are always looking to bring more and more value to our school community. Again, 561 people strong, all building wealth together.

We got an extra special guest this Saturday at noon Pacific. Dion is coming on and he's going to lead a very important conversation. He's going to introduce a concept about the rule of two. He's actually going to on Saturday, go through actual deals and show how he uses that rule of two.

But we're just going to tease it a little bit, because some of you are not in school yet, and heck, why not? It's 20 bucks a month, 67 pennies a day. Get around 560 other wealth builders, active forum, accountability groups, free education, and special sessions like this. Dion, thank you for the offer. Why don't you introduce when you came across this rule of two, how do you use it in real life? Tell us a little about it, and the people need to join Saturday to see it in practice.

Dion (1:26)

Well, I know I appreciate the opportunity, Mike. And one of the things that's important is when we share information like this, we want to help the people who are going to do something with it. And the reason I want to do it in your school community is, this is straight from Alex Hermosy, who's heavily involved in school, but it's people who pay attention. The people that will actually be there in the meeting with me at the same time, can ask questions live or ask questions at the end, and take notes and be involved in the conversation. It's not just me saying, here's how I do it, which is what the videos on YouTube are for. But I actually wanted to be productive. And for me, the rule of two is pretty much, it contributed to me retiring early. If I didn't have this, I'd probably still be working. And I use this for life, parenting, job decisions, investing, and part of it comes from Hick's Law. And if you're familiar with, like I use Occam's Razor as a cop, the most simple explanation is probably the right one. But Hick's Law is, and I'm going to butcher it for the smart people out there. But it's something like, the more choices you have, the longer your decision makes. Yes. Okay, so right. And so for me, I never want to be choosing between 10 things or five things. And in videos, I often say, I want to look at things apples to apples. So if I'm looking at five properties, I know which one to pick, but I've never actually done that. I've only picked from two properties. Now, I'll look at 100 properties in a year, but what I use is the rule of two to come up with what's called a current champion.

So if I want to choose how I invest, I go, okay, I want to look at stocks versus crypto. Crypto is new, I'm too old to start over a few times, it's kind of volatile, so stocks becomes the current champion. It's been around forever, I can expect the return, I can diversify, I understand it a little easier. There's people who would do better in stocks because they understand it better. And then I go, okay, stocks versus running a business. Running a business, I tried it twice, and I failed, this is not how I'm going to retire. Long-term stocks, I max out my retirement accounts for a while, then I go, okay, now let me look at stocks, because it's the current champion, against real estate. I'm too old for compound interest to do its thing, I don't make enough to invest a significant amount, I have to live somewhere, I can get fixed rate debt, real estate becomes the current champion. So I literally cycle through all my choices in life with my rule of two, I'm looking at two things. I didn't look at stocks, crypto, business, real estate, I never would have chose. I'd be working thinking, one of those would be great, like everyone else. The shiny object, one looks great this week, but a YouTube video next week sent me down a different rabbit hole.