Robert Allen and Vishen Lakhiani on Multiple Streams of Income

hi everyone before we get started with this episode of the Mind Valley show I wanted to give you a quick update our guest today is Robin Allen the famous author of The no money down series of books on how to make money crew real estate now shortly after recording this episode I got to know Robin we did a trip together and I got to really understand this man's mind and his work and it fascinated me and so I wanted to bring Robert Allen onto the Mind Valley Stage and therefore mind Valley is going to be putting together an incredible event in London called the Financial Freedom Summit it's happening November 17 to 19 Robert Allen is one of the many speakers we're going to have and if you're interested in learning how to earn money through real estate you need to be there so for now bookmark this link mindvalley.com forward slash London morning at the end of the podcast in the meanwhile enjoy this mind expanding interview with Robin Allen after I graduated from University there were two books that I happened to stumble upon that changed the trajectory of my life the first was the cash flow quadrant by Robert Kiyosaki the second was by Robert Allen and it was called multiple streams of income now both these books got me thinking about life in a different way you see like like most of us when I went through traditional education I was trained to be the best programmer I could be but if I was just programming and only doing that I would never truly get wealthy that book inspired me to start a business on the side as a side hustle in addition to my regular job and I would come back from the office at six or seven PM in New York and start building a little e-commerce store to sell meditation CDs and in the first month I lost 800 bucks the second month I lost 300 bucks but that but a third month out I was making four dollars a day in profit but that profit continued to steamroll and it continued to grow bigger and bigger and bigger eventually that company became mind value and the book that inspired me was the book by Our Guest today multiple streams of income by the legendary Robert Allen Robert welcome to mind that story I'm I'm not heard that story so wow I'm Blown Away by your success so I believe it was 1999 when I read that book and that was the same year the book came out right so so firstly thank you for that thank you for in your way changing the trajectory of my life oh my thank you that's and you are changing the trajectory of so many people's lives now I mean I just was here at your event it's unbelievable people are so so excited and I asked the audience the audience I spoke to I said how many have you had your life transformed by Mindvalley everyone raised their hands thank you thank you well you know um I do my best as did you you have created courses books seminars that have sold billions of dollars yes right because you have thought so many people how to reach their dreams through this concept of real estate investing as well as multiple streams of income and that's what I want to ask you about today multiple streams of income in designing a life where you have multiple streams of income is a really important thing but many people don't know how to get there so let's talk about why is that important and how do we get started first are you going to tell me about what that is this gold tattoo on my arm Robert do you have any kids I have three children absolutely no they're in their 40s now okay so so my little girl is nine years old and we are here at afest the Mind Valley festival we just came back from this beautiful party on a fortress in a hill in Cartagena Colombia and when a nine-year-old girl goes to a dad and says I'm gonna put a tattoo on a removable tattoo it is so hard for a man to say no yes that's true and so I have this tattoo on me and I totally forgot that I'm going to be recording today but I'm going to keep it on oh so multiple streams of income um well what did kovid teach us it teaches us that many people had their businesses die on the uh the 9th of March 2020. it died um the world shut down so millions of businesses shut down however believe it or not there were five million new millionaires created during covet why because they they pivoted and probably pivoted because they had some other streams coming in from other sources and so if one stream dies then you have another stream a few streams that keep you going so you can launch another stream and in terms of my speaking business I was speaking all around the world you know China Russia Japan Australia you know worldwide I have I loved it but coming back from Japan on the 9th of March we got we got into the country on that final day and then my speaking business died the very next day well I have multiple streams of income so it wasn't like oh darn it I'm what am I going to do you go on welfare no I'm just going to turn to another stream of income I have a database I just go to the database you know what would you like me to sell you if you're buying if you want to be honest and what they wanted me to sell them is while they're stuck at home I said Well everybody's got a book in them so I've got you know 17 books on on my with my name on it so I'd like to show you how you can become a best-selling author and so they stayed at home I stayed at home and I just taught a couple hundred people how they could launch their so anyway everybody needs multiple streams because of safety you need multiple just like everybody tells you you need to diversify in your stock market you need to diversify your streams of income therefore each stream of income is from a different type of of asset so real estate would be one stream of income uh having a business where you're marketing a product maybe online would be another stream of income marketing information frankly as I was teaching these people how to mark their own books you know how to how to sell information how to invest in the stock market how to invest in tax lien certificates crypto really wasn't very big when I launched multiple streams of income this was in you know 1999 there was no crypto there was there was really not much of an Internet frankly so as new things pop up you ask yourself would that be something I'm interested in if you're not interested in it don't do it if you're interested you say well I wonder if I generate a little stream of income from that and um that's number one must must have multiple that now the second fundamental principle is you want the stream of income to be eventually money while you sleep it should be residual means when I wake up in the morning there's money under underneath my mattress it's grown there while I was sleeping uh and so the entire book multiple streams of income is how to generate a lifetime of unlimited wealth while you sleep I remember reading that in the book and I and I measured it I measured it so so I had my my day job I was doing technology sales I was living and so I want to share some actual numbers so people watching this get get the concrete map behind it so I was um my girlfriend back then was a European she didn't have a green cut so she couldn't work we were about to get married we were living in Manhattan New York super expensive city and um I was earning 7 500 from my job it wasn't it wasn't wealthy money like we couldn't afford to take great holidays we couldn't afford to stay in anything more than a three-star hotel we couldn't afford to do business class and so what I started on the site was a little meditation e-commerce store which back then was super hard I was a programmer so I could code everything myself I quoted my own checkout I quoted my own CRM but today you can do that on Shopify yeah and if you can build a simple or even on Instagram and you can build a simple uh a simple store selling something that you can order from China or or I know so many people who designed their own clothing and then sell it that can be a really good residual source of income right and eventually we hit this point where I was making more from the store than I was from myself and when that happened I quit my job yes yeah but I do want to share a really important tip here quitting your job can be a dangerous thing I strongly recommend one that's not quit their job and then dive into their their second stream there was a book called breakthrough company and they shared a statistic on this you were 30 percent more likely to succeed with your side hustle if you hold on to your day job and create your side hustle in parallel because the people who quit their day job yeah if anything goes wrong with that side hustle you can go back I mean it it can be dangerous yes and if you quit your day job you start fearing what could go wrong so it's better to just put in more hours maintain your day job so you have a steady salary you're safe and do the side hustle statistically you're 30. I agree with that and when I teach my books I'm always trying to to design things that are safe for that ordinary person however I'm going to now digress in a totally different direction by saying when when I when I I did my thing in real estate I made my money I had streams of income coming in from it um I had a hunch and sometimes your your hunches are really strong so my hunch was I I was a student in Stephen covey's class at BYU so seven habits of highly effective people had not been written yet but he'd had some other kind of regional books and uh he was a great teacher we had to fight to get into his class and he said us he he had us write our goals down and so one of my goals was to write a book and I know I'm a student at school what am I going to write a book about I don't know I was probably inspired by him and all that stuff so when I graduated I couldn't find a job I I had an MBA nobody was hiring bad economy so I followed my hunch I said I'm just going to go start buying real estate right in my own little city and made made a million dollars in the next couple years I became financially you know set um and the the REM I remind I was reminded by what cubby had said you know it's time it's time to so I'm driving down the freeway and literally the it's almost like a voice it was like it's time to write your book now and it was um very very profound I I I was making some good money and I also was selling some real estate on the side I was as a as an agent so I was making property money for my deals and money from my so I was making good money kind of like about what you were making and as soon as I got that message it was like what you know why now you know it's time to write your book now so I went into my boss uh and making good commissions from my selling and I said here is my real estate license I will never sell another piece of real estate for commission ever again thank you very much for the training and I literally gave them my license back and I went home and I'm saying my wife well I'm gonna I'm gonna write a book now not knowing how long is this going to take what is it entail never having read a book or written a book before and and the way I sold it to her as I as an agent I had sold a property to somebody who owned a house in Hawaii on the beach and so I went to him and I said will you let me go to your house and spend a week or two and write this book I want to write so he said fine so it was basically free for me but it was like okay now it's time to write my book now that was in uh 79 79 so we know that the the economy in 74 was terrible 75 76 but as we started getting into 79.80 uh interest rates started peaking the Baby Boomers were just hitting at that at that moment and so we have all these baby boomers want wanting to buy a house and the interest rates are high and nobody can afford it and this crazy book shows up how to buy real estate with little or no money down and it was like if I had written it two years later a year earlier no no it was number one New York Times bestseller wow and and so I did just the exact opposite of what you said but you had but you'd already made Millions right so you had you had what kind of millions had I had I had a million in equity and you know you know what that's like I was fully leveraged up to my eyebrows you know maxed in the in the mortgages I was making little bits of cash flow no I I went on into the credit card life basically I mean a credit card I Max those credit cards I had a million in equity and some small some streams of income but no it wasn't I wasn't nearly as rich as maybe people would have thought but anyway if your intuition says you know and that's what we're here mind Valley is filled with all kinds of these creative people that all kinds of courses on how you do really step into your into your true self and so in that case but uh like you just said don't quit your day job if your intuition yeah saying you know if it's saying don't do it don't do it just don't so so I think there's a there's a there's a beautiful balance between listening to your heart and intuition but also being practical right so in my case I call it knowing your mli your minimal livable income nice so I was earning 7 500 in New York with my girlfriend who couldn't get a job because she didn't have a green card she was a European but we knew that we needed four thousand dollars a month yeah for for heating for bills for food we wouldn't be able to travel we wouldn't be able to take vacations but we needed for Grant to survive and as soon as my side hustle my e-commerce site was making four grand a month in profit that's when I quit that's when I quit and immediately immediately not because I could dedicate myself to this website a few months later we doubled it to eight grand wow and now I was making more than what I had in my day job so knowing your mli your minimum livable income and you got to track this on spreadsheets is super important because that's when you know what is the quitting point and that's when you know that you shouldn't be spending any of the money on things that that go down in value usually people start making little extra streams they go buy a car a house they buy clothing they and you got a minimal living you should really stay at that level and it doesn't mean you're going to be rich I want to be really honest like it took me five years from that point on five years to actually get to a point where I was now because it it peaked and then it just it it stagnated right so it took me five years before I finally got to a point where I could live the dream and for those five years I was living in my parents home okay well see you you had the sacrifice for that so well you call it minimal living income I call out your Financial Freedom number and most people think of Financial Freedom as like wow I'm free I got this big house I got all this TR I know Financial Freedom number means that the the number that's flowing into your life where you can live your minimal living income I want you to live like right like like an ordinary below below median income and you and you stay at that level you because you take all that extra and you put it into your extra streams of income but most people don't do that so they spend it all so how do we how much money should we be allocating to create these new streams of income that's my first question and the second question is going to be what are the best streams of income to be looking at right now in today's world well uh easy way to to teach that is is the word um money tree I want a business that's a money tree therefore it's the kind of business that keeps growing fruit even if I'm not watching it it's still the fruit's still growing I picked the fruit now the tree grows another crop so that's a that's a a residual stream of income so am stands for multiple streams of income I want the business itself to generate extra streams of income from all kinds of ways uh I don't want it just the one one stream of income because if that stream has challenges then the business dies so I want the business itself to be multiple streaming right the O stands for it's got to be a product that's that's outstanding meaning it's a product um that's that's that that people want no matter what the economy is so is if a pro if a product is uh discretionary as soon as the income starts to go the economy starts to go people stop buying that discretionary item I want them to be an essential item something that they they gotta have and it's got to be unique enough so that people will continue to buy it because it's not being competed out of business through commoditization and stands for little or no money down so you ask the question how much money should you need well I wrote the book called nothing down you know I don't I don't want to put a lot of money into it if it has to if in fact the more money I have to put into it the greater probability it will fail and therefore I want a business that I can start with minimal money e stands for employee resistant why because employees the most dangerous part of a company you it you have to keep finding them they keep giving you challenges and troubles I want a business that I can operate without a lot of employees so why does Real Estate fit that because you can manage 20 properties all by yourself you can hire one company to manage those 20 properties for you so I I you don't have to have any employees so it fits the money tree formula y stands for yield meaning I want to make some serious money from it although I put little down I want to I want to crush it I want to I want a business that has an unlimited upside and most businesses don't they they they don't scale so like you said your business scaled up to a certain level a certain plateau and then you had to figure out how do I get this thing to scale you have to radically change the business exactly to go from that one level to to the level you're at today you had to totally radically change everything around it and and so I want a business that's scalable that's where the yield comes from uh T stands for Trend there there has to be a trend so you caught the trend you caught it um real estate I told you I I caught the trend at the right time uh and then for every stream of income I want to add am I on Trend here so I started my businesses when there was no internet yeah but when there became an internet uh somebody came to me and they said Robert are you making any money off from the internet all right well I'm no I'm I'm making lots of money from Real Estate or my set real estate businesses selling information and he said well I just launched this little this little website and I had like 1500 you know people who come and I teach them how to make money on the internet and and and and I and I says what can can I show you and I said no I don't want to do that he said no I'll come to your house he said I'll sit at your computer I'll push a button and I'll make money from you in minutes and I'm thinking well yeah I'll come on to my house show me how to do that right so he comes to my house and and he goes uh okay I have this database of 1500 people and I can communicate with them I said I'm gonna let's send a message to my my database I'm here in Robert Allen's house he's a famous Millionaire Maker and he has this program called multiple streams of income it was that tape program from Nightingale Kona and he goes and he said how much is it I said it's like 100 bucks he said will you give him a 50 discount and I said well I could probably get some from the from Nightingale calling it sure sure okay so he says I'm here in Robert Downey's house and he'll give this program it's 50 off but only have to if you respond within the next hour right right so he sends the message he says look at your watch I'm looking at my watch my on the time the the the second and he goes let's see how long it takes so 61 seconds later thing on my email ding ding is Robert down still have that deal can I have that deal here's my credit card number I really can I can I do this and I goes how much will you charge me to teach you to teach me how to do what you just did and he said six thousand dollars and I wrote him a check for six thousand dollars on the spot and I said show me how to do you know so it took uh about nine months you know as busy I was was all the things I had to do he launched my website we built a database of 11 I remember eleven thousand five hundred and sixteen names on my database and we got the the live camera cruise we were shooting an infomercial really and I'd never done this before I didn't know how much money I would make but we pushed the button I said I've got these things I I could offer you know maybe you could come to my home and I'll teach you at my home I never had never done that in my life uh we could get this or that there's all kinds of little things and when we finished 24 hours later ninety four thousand dollars in one day 94 000 what year was this this was 1990 uh 1990 to 1997 1999 incredible 1998 that's incredible yeah ninety four thousand dollars and then it went over a hundred within like four or five more hours and I said to myself was that a good six thousand dollar investment well it was a new stream of income see totally different so that's what is about all streams there there are different assets so the system of real estate is radically different than the system of Internet how do I find it how do I build a database how do I build a website you know how do what do I sell on the website and I wanted something that I could sell information which was the what I love about information is the the the cost is so low the cost of the product I can launch that of that 94 000. um about twenty thousand of it was coming to my home where I could teach them teach them for three days there was some digital stuff my cost of goods was 10 and and yes most people when they launch a business the cost of goods is is 80 90 so if they're not successful you can't make it on a 20 profit margin so that's one of the reasons that's one of the most uh most powerful streams of income one can look at like e-commerce stores using Shopify or even using uh and then using Instagram to drive people to yourself absolutely and there was no Instagram when I got started but frankly I talk about finding something that I didn't do what I I just like my internet guy he was my expert I went to somebody on social media and it was when the internet went down or sorry when the world shut down and it covered my I had no social media I was traveling around the world from 2008 till 2020 yeah uh when the world's when the real estate world shut down in 2008 my my seminar business died nobody wants to buy real estate seminars when their house is underwater so I said well where can I sell this message and I went worldwide I went to China maybe 30 times I went to Russia I went to Japan Australia South Africa all over the world wonderful business and then it as I said earlier it shut down so I said well I got to go to social media so let's go into real estate now real estate as a stream of income now of course guys there is there is crypto we're not going to talk about crypto because it's it's currently uh it's currently in a in a winter and there's also things such as day trading which we won't talk about that could be a whole different episode but I know I have a friend who on a bad day of day trading makes a thousand on a good day makes ten thousand dollars in it yeah yeah it's insane uh day trading is a really but I have no knowledge of it but really it's not residual it's not residual you gotta I got a day trade yeah you got a day trade I want a business that I don't have to trade every day so then let's go about go to Real Estate so why is real estate residual well I get to own an asset That's essential that we hadn't finished the money tree formula actually T was Trend R was residual e is essential to everybody every day and the final e is enthusiasm and those you gotta like it right because if you don't like it your business probably won't survive so the E uh that second the first e is essential to everybody every day so when people wake up in the morning where do they wake up they wake up with a roof over their head period there is no choice you don't we do have some homeless people but it's a very very very tiny minority everyone needs to help you need a awesome head so what I love about real estate residential real estate is it's essential to everybody every day therefore when the economy has its ups and downs they still have to have a place to live and so it becomes it fits the monetary formula perfectly uh so I want to find Residential real estate I want to find properties that were within a 50 mile radius of my own home that's that's the keeping it safe side then eventually when you're good at riding the bicycle within a 50 mile radius then yeah you can go wide you can go worldwide you can make money anywhere in the world with real estate but I'm looking for a below median price I don't want expensive real estate I want things that I could rent out easily make a net net cash flow it's not hard it's not easy for the audience to buy a home buy a homes get a bank loan buy a home and then flip it well the the the book nothing down shows you how to find a highly motivated seller so we start there you said well we buy a home no we don't we find a property that's owned by a seller a distrust that is highly I call that person a don't want her got it now only one to five percent of the people are don't Waters and what happened during covid because all this money flooded into the world people are taking their little money checks and they're buying real estate with it and the mark the real estate market just it exploded sometimes doubled in this in a short period of time that is now winding down but finding a a highly motivated seller when everyone is buying real estate it's hard to do but like I'm saying if you'll focus on just that one idea that somewhere in the somewhere in the United States there's a place where somebody doesn't want their real estate and how you find that person is a little tricky it it takes time to look how many do you need in my book creating wealth I say you should be buying two properties per year for 10 years two you buy them and you rent them out so it takes you six months to find one uh if you don't have a lot of cash well well there's 50 nothing on techniques I can show you how to do that point is make a decision I'm going to buy two now you mentioned Robert Kiyosaki I don't know if you know this Robert came and spoke with me in Japan there's 11 000 people in the audience and I invited him to speak to my audience of 11 000 people so we had one day just the two of us and Robert is there and he takes out a copy of creating wealth and he said you must read this book and he said in nineteen a like 1988 I read this book and I said it said in the first two or three chapters you've got to buy two properties a year so I turned to Kim his wife and he said go do this this is this is good this is another stream of income for us and creating wealth is by whom uh he was I'm sure successful in a lot of other businesses he was doing she did her 20 properties in 18 months and and to this audience of 11 000 people he said today we own six thousand nine hundred properties so one of the you know you're two you're two authors of two books that China change your life exactly exactly so that's uh it's it's finding highly motivated sellers is is is hard and people quit I tell them you got to look for a hundred you got to look at 100 properties you got to make a hundred offers really and okay so but but how do you buy the property with no money down well do you have a couple of months um yeah here's how you do it you look for highly motivated sellers who own property that they don't want and I know people are going to say that's impossible I'm going to tell you one to five percent of the people they just inherited a property for example um they don't want it it's rented to some tenants that the tenants are driving them nuts they said they left me this property I don't know what to do with it what shall I do I you know and so now they're got some vacancies and they're just driving them nuts so you so they put their Mark the property up for for sale you you commit you you talk to them how can I solve your problem I'd like to solve your problem in a way that solves my problem your problem is you need to get rid of it what are you gonna do with the money if you did so if you sold it you'd probably put it in a bank or two percent interest one percent interest if it's a bond it's three percent interest um why did why don't you let why don't you be the bank how how much do you own it oh that's free and clear my my grandfather gave it to me it has no loan on it but it's driving me nuts I'm I'm making some cash flow but you know I tell you what let's convert that cash flow into a note you're the bank I'll make you monthly payments interest rates today are six seven percent you you would take that money and put it in the bank at half a one percent three percent if it was a secure Bond and then you know what happens to bonds if the interest rates goes up your bonds go down that's why these banks are failing is they invested in bonds no I'll I'll make you monthly payments you be the you be the bank I'll be your customer and then you know people say well that's impossible to find a deal like that well 40 of the properties in America have no mortgages on them they're free and clear and so I'm looking for a seller who owns a property like that it's rare I mean to find a highly molded person with a free and clear property and you become the the the the the the mortgagee uh and therefore you make monthly payments to that person they say I need a little bit of down payment you go well I give you five percent down I can scrap I can scrape that together and now you get in with all these bank loans are hard to get they require these four things you want a nice level you're collecting the rent and then you're paying a little bit rent plus a little bit to the motivated seller you're paying exactly you're collecting all the rents you're taking most of that money and you're giving it back to the seller in the mortgage payment there's enough money to cover expenses Etc and a little bit of profit for you well that mortgage eventually pays down you know now I mean let's go out 20 years 20 years if you keep owning that and paying that mortgage down in 20 years all of that income comes you you don't have no more any more mortgage payment so that's why I'm saying 20 properties in 10 years that'll set you free because eventually they've gone up in value the rents have increased the more the equity is built up you know within within 10 years and some of them are friends are willing to do that but why wouldn't the seller just take the rent directly why bring you in as an intermediary because I explained to you they're highly motivated they don't know how to manage it and they didn't really buy it they their grandfather did it they don't want to deal with it they don't want to deal with it and sometimes it'll be a person who got into the real estate game and you thought it'd be really easy and they buy a single family home and I'll just rent it and I'll make this extra cash flow and then the tenant trashes it yeah and now they got ten thousand dollars worth of So You Think I'm competent with dealing with tenants yeah so dealing with tenants is challenging absolutely you need to have a system for doing that and most people you know they're they say I'll get rich I'll go buy a couple of properties no no You Gotta Be You got to be careful and so these highly motivated sellers uh they're they're not every on every street corner so you do need to search until you find them and then you find one um for example so for example I did this crazy challenge uh people didn't believe when a book came out that you could buy property with nothing down so I said well send me to any City take away my wallet give me a hundred dollar bill and then 72 hours I'll buy an excellent piece of real estate using none of my own money and the LA Times saw my ad to fill out my seminar using that that line and they called me the reporter from L.A times called me and said Robert we we don't think you can do that and we challenge you we're going to take you to a city we choose we're gonna give you 100 bucks we don't think you can do that so they flew me to San Francisco and they took away my wallet and gave me a hundred dollar bill now what am I going to do I have to find a highly motivated seller out of all that maybe let's say there's 5 000 sellers that day in San Francisco most of them are hey give me my price giving my terms I want a strong buyer I don't want any weak buyer I don't want somebody that's nothing down are you crazy get you know get out of my life but I did my system and and I found the first property was listed in the paper nothing down was the headline and I called and I left a message on his phone because he wasn't home when I called when we arrived in San Francisco the reporter gave me a hundred dollars and now so I call in all these ads and I'm going to real estate companies and I'm calling the newspapers and man I'm just going nuts for an entire day and he calls me that night and he said I I have a property I'd like to sell you with nothing down and turn to the reporter we were living in a in a in a small hotel room 35 in the tenderloin District of San Francisco so because I didn't have a credit card yeah I didn't have any identification I he took my wallet away so but I had a telephone and he called me and he goes uh I'll sell it to you for nothing down no was he highly motivated no he had bought it cheap completely a bargain property paid for cash for it bought it really low fixed it up put money more into it fix it up until it now is beautiful nothing wrong with it at all refinanced it his on his strength pulled all his money out the down payment the the fix up costs his money's back in his pocket now what he wants is to to claim some profit from so he he had a 30 33 000 in profit and he said give me a note make me monthly payments right nothing down So within 24 hours I had found my first property from a seller who was looking for that to be able to turn that profit into a cash flow now the next two properties I bought I bought seven properties in in three days with nothing down and gave the reporter 20 back and change the next two properties I found were sight unseen in Sacramento about 90 miles away from a seller who had two free and clear homes no no mortgages on them but had traded into those homes from a mobile home park that they hated it was a nightmare and so a realtor has said well I'm a hard time selling this mobile home park but I had this investor who will Who will trade for these two homes uh will you take these two homes and their friend clearing and so the owner said yeah I'll take that and then when I called him on the phone he said well I don't really want these two homes what I want is cash flow you know send me a check every single month and so I bought these two homes sight unseen no money down no money and then you're getting the cash flow from the existing tenants exactly rent it out I held those homes for like eight years and then I sold them myself nothing down took a big note and and so what I'm trying to say is if you're looking you find it and most people don't look because they read the newspaper and the newspaper says interest rates are going through the roof uh you know everybody's trying to sell because the Market's really hot and therefore so people can go deeper into this in your book no money oh yeah yeah absolutely okay now let's talk about tax liens what what are tax liens well guess who's the highly motivated seller on a tax lien when the when firstly what is a tax a very good question uh when you have a home the County charges you taxes so they can pay the schools the police the fire departments Etc you pay these Municipal Taxes from the home that you bought but if you don't pay your taxes the state the county of that state says hey wait a second this is we need this money to to fund the police department if you won't pay it we're going to put a lien on your property and we're going to sell that lien to another investor who will buy the amount of money you owe so you owe three thousand dollars in taxes I'm gonna let somebody else pay those taxes for you because we need the money and we sell a tax lien not that investor buys and pays the three thousand dollars in taxes the the person who owns the home still owns the home but somebody else paid their taxes for them this this the County charges a penalty of sometimes um eight percent ten percent 18 25 tax taxes is 20 20 plus percent and therefore as a lien holder when the taxes eventually end up being paid because either the person loses the house and the taxes again to be paid the lien holder is the state and they have the first lien they have the first lien above any mortgage above anything else so the government gets paid first period so if a person invests money in that tax lien they get paid first no matter what so they get their money back plus 20 plus 30 some sometimes 50 percent and that's a tax lien so I can invest my money and the government guarantees it it's a guaranteed money and those people don't even think of it but this is the sexy part three to six percent of the time when you buy a tax lien certificate the person defaults on the home they couldn't pay their taxes in there they can't pay their mortgages and they lose the house well when the house gets lost what's the first mortgage it's the state the lien holder right you if you own invest it you own the lien and the government will repossess that property to get their money and sometimes they'll repossess the whole thing and they'll you'll end up owning the home or if it's a piece of ground a lot a single uh you know maybe even apartment building craziest reasons why people don't pay their taxes so three to six percent of the time you end owning the property itself so that's a backhanded way of having this one fine tax liens you go to the county uh there are three thousand counties in the United States you go to whatever County that you happen to live in you you say where are the tax uh the you know the tax deeds or tax sex sales from that County write listed most of them are listed you can see them and they will list thousands of them I mean it still blows you away right thousands of them you can literally buy like you're at a store you can buy it from the county right there online and buy it invest in that tax lien that's incredible I did not know that entire world even existed oh yeah well there's a whole chapter and multiple streams of income about that and it's it's now is it easy no well there are thousands of them right in America they're probably 500 000 of those right now all across America in on every County they all they all have them some of them will do it slightly differently there's different kind of States Etc but what you when you'd go dig you dig deeper you you find you ask yourself do I want this property well when when I got started we couldn't go online and research things internationally but now with West with with uh software like prop stream for example that's just one of them you it's cost like 100 bucks a month and you can look at every single property in the United States you literally you can see it and you can literally Google the the the a drive down the street you find a property that's available for sale it has a tax lien against it you look at the picture of it you drive down the street you see the neighborhood you literally can do your uh your analysis we couldn't do this you know 20 years ago today it's unbelievable and all it takes to to build these multiple streams of income is to be aware of these unusual ways to create those streams real estate tax liens love these yes so as we wrap up what would be a final advice to our audience um you need multiple streams of income and these multiple scenes of residual income so don't buy a business that requires you to be there first yes it's going to take a while just like your five years that you spent into it it was five years of hard work yeah and then eventually it got to the point where it made you free so you're going to do that just like you did your story is perfect example so yeah you got to put five years into it and probably it'll be and if you walked away from mine Valley today you love it so that's why you're into it for 25 years but if you did you know it probably would send you streams of income yeah forever so find something you like you got a passion for make sure it fits the money tree formula multiple streams outstanding product yield all that and then make a goal to set something this year say to yourself I want a side Hustle by the end of this year one side Hustle Gary vaynerchuk made that that famous the side hustle I like that it's a great it's a great way to describing it you're going to do it on the side you're going to hustle on the side find something that turns you on and then I suggest you only have you never have more than three at a time because if you get into 4 5 6 10 um you get overwhelmed and therefore you put all your money into 10 different projects and they all fail I want you to take one and make it work it's exactly what you did as soon as you got rid of your job you focused 100 on mine Valley and it it worked then now you've got other things going on you've got other streams of income going on so make it work have have have three one is where you put like 80 percent of your time into one where it's like 15 percent of your time your your tinkering you're testing it out one you put like five percent of your time in why three like multiple streams of income I want you to have multiple projects because you never can tell when things go nuts so for me when I wrote my book because I went all in I wrote my book and I had my little seminars on the side I didn't realize that my seminar business my information marketing business would be a thousand times more profitable than my real estate business I get a little five percent and make a little extra cash flow to help with my monthly payments on my real estate deals but that exploded into one billion 300 million dollars worth of gross revenue from the products with my names on them because it just exploded so you always have to have two or three little things in the in the hopper because sometimes one of the things you're focused on 80 percent it ends up dying and the little thing you thought you never would work or not it just takes up exploding so that's my recommendation to everybody that's watching here hope that's been valuable that's amazing thank you Robert Allen go check out Robert's books uh they're available everywhere multiple streams of income is of course my favorite book and just a tip for those of you who are Mindvalley members so one of the other ways that you can create an online income stream is not just selling physical products but selling information I have a friend Jimmy narain he is a teacher here on Mindvalley yeah and Jimmy started selling confidence programs on udemy and he built a lifestyle where he's earning hundreds of thousands of dollars in residual income from his courses on udemy he's shared his wisdom with over 300 000 people and recently he showed me he trained his father who's in his 60s to do it as well his father in Poland now Jimmy produced a program called Course pro I'm the uh I'm the the co-teacher in that program Course pro is part of Mindvalley you can check it out on Valley again it's spelled course space Pro and Course pro teaches you how to take whatever knowledge you have whether it's on you know prompt engineering or it's on confidence or it's on style and dressing on Charisma and it teaches you how to monetize that knowledge and create a powerful stream of income selling information Jimmy's a master of it he's one of udemy's foremost teachers and I have sold close to half a billion dollars worth of online courses so both of us have come together to create Course pro so go check it out if you're a Mindvalley member it's already part of your membership and if you honor Mindvalley member you can get a membership on mindvalley.com and um I hope that is really beneficial advice for you thank you for joining us on the Mind Valley show Robert thank you for sharing your wisdom I'm gonna start checking out tax liens or properties for no money down this was mind-blowing for me uh so truly appreciate you and the impact you had in my life my my honor my honor to be here that's why we do this we want to how would I have known that you picked up a copy of my book in 1999 and today now it's you know 20 24 5 years later that this is what happens when you're an information marketer you end up meeting your students yeah decades later and you realize the impact you have so we do this not just for the extra stream we do that for the stories the the schooling system teaches you to get a job right but that's a single stream yeah and so what your book did was it it opened me up to the idea of multiple streams and and that transformed my life the multiple stream concept is life-changing so I hope you guys got a lot out of this and I'll see you in the next Mindvalley show thank you Robert you're welcome if you enjoyed this conversation with Robert Allen I gotta share a story with you so as I got to know Robert we um we actually went on a road trip together to Lake Como I wanted to understand this man's mind and I wanted to to kind of get him to to Mentor me a bit I was always fascinated with property and it was my goal to own Apartments apartments that I could live in that I could someday pass to my children but what I realized from Robin is the way I was going about it was just stupid I did some math recently and I found out that the apartment that I bought as my first beautiful home way back in 2012 and I saved up for years to be able to buy that apartment I actually structured the deal in the wrong way n as a result if I had done it right the way Robin had suggested today in 2023 I would be approximately 1.3 million dollars wealthier 1.3 that's almost 100 Grand a year I lost because I did not buy my apartment in the way Robert would have suggested and so it's fascinating when you understand how these tiny decisions add up thanks to the miracle of compounding interests and thanks to to really understanding the nuances of property investment now if you want to understand how to buy houses how to make money from houses how to buy property with no money down how to create rental income as a form of passive income for yourself you definitely want to put these dates down on your calendar November 17-19 we're going to be bringing Robert Allen and other well teachers live on stage at the Mind Mindvalley Financial Freedom Summit it's going to be live in London so you can fly to London and join us live or you can tune in on Zoom it's a three-day and we're going to be covering everything from Trading stocks crypto to property investing to building automated businesses that can earn you passive income in today's age with so much unpredictability in the world it is so supremely important to have passive income coming to you so that you and your family have a nest egg so that you know that someday your financial dreams can become real and you don't have to worry about unknown events unknown situations that might be popping up in this hard to predict new reality that we live in so check out the mindvalleyfinancial freedom Summit you are going to learn how to dramatically grow your income again through property investing through trading and through building automated businesses and Robert Allen is one of our key speakers mindvalley.com forward slash London go check it out flying to London to join us live or tune in on Zoom