Hey everyone Me: Kevin here in this video I Want to explain why I'm making a 13 million dollar acquisition for my media business and why this is really scary, where the money is coming from and why I'm doing it first I Want to give you a very clear lay of the land In 2022 has been a very difficult year. I've let some of the minor uh, noise that is very, very loud, but it's still hate affect me personally because I'm the kind of person that wants ultimately everybody to like me. but unfortunately, when the market is going into a recession, you can't get that. There are going to be people who are upset, they need to point the finger at somebody else.

And even though I'm trying to do my absolute best possible, they're going to be haters in a recessionary environment. and unfortunately, I've let a lot of that get to myself. But when I zoomed out and put life into perspective, this actually became a lot less important. For example, a good friend of mine's spouse had cancer for 18 months, they went into remission and then all the the sudden we're told now they have a new form of cancer, abdominal lining cancer and they have six months to live.

It's terrible. If anybody has any recommendations for, like, any kind of clinical trials or any kind of support for these kinds of situations, please hit me up in Twitter DMs Second thing that happened this year was I Contacted my insurance agent about eightish weeks ago. Always gets back to me, always answers my phone calls. Really great guy, hard worker and a few weeks ago we call and find out he died suddenly died of a brain aneurysm.

I'm like what this is so Eerie Then third thing that happened is my uncle whose initials are PP Peter Paffrath had a heart attack this year. It was like 35 minutes away from a hospital because they live in a smaller town. fortunately survive. But it really put into perspective that you know life is about the journey and life is about making sure we have the proper balance of success and effort and family.

and uh, that we're able to pick up where there are failures and keep moving with one foot in front of the other and we can't let the noise of of hate or criticism or whatever get in the way of that. So I realized that for me, similarly expand the three businesses that I have a media business a an ETF and the house hack I need to be able to give my all to these businesses and I realized that my media business and my ETF kind of fold into one envelope. they fold into research and content production. They're roughly the same because the research we do for Content production could be roughly the same research that we use for ETF allocations, decisions which um, you know.

obviously these These are decisions that that need to be made by consolidating all this information together. Uh, in in a way that sets us up for the best possible 2023.. Now, what's really important that I found is that between the hours of about 4 AM to 11, I'm constantly working on making content, producing videos, and actually able to provide value on the internet. That's how I believe that in the future we can create a neutral kind of uh, financially directed Ben Shapiro show you know I think he does a really great job.

he's got the daily wire. they've got like hundreds of employees and I think they have. You know they tilt to the right and I'm really trying to tilt towards the middle. How can I cover politics and finances while remaining as neutral as possible? That's my goal.

but the problem is if I Go travel like I did a few months ago. I traveled to Miami to go look at real estate and I was there for about three nights and I realized I Go Gosh, it's so hard to produce content while I'm spending three hours getting to the airport at LAX After three hours getting to the airport, the flight's delayed an hour. baggage is getting lost. so I just don't do baggage anymore.

But if you carry on and you don't go like first class or Premiere what happens, they potentially check your bag at the get at the Jet Bridge and then you have to go get your bag from there anyway. Ah right. Uh. and and then you land.

and you you land. at massive airports Where now you've got to get a hotel because you can't get a round-trip commercial flight the same day because those just don't exist And so all of a sudden you look and it's like my gosh, the the amount of impediments to actually producing content which is one of my very important pillars of my three businesses producing content. Me: Kevin right gets heavily impeded if I'm sitting in traffic. if I'm sitting at airports.

If I'm delayed on an airplane waiting for this thing to leave, it doesn't make sense I can't operate both my real estate startup Househack which I think knock on wood and I can't make any guarantees. Okay, you have to go to Househack.com read the solicitation there. But I think I personally with the commitment I make to Househack over the next six years I think I can 10x the value of househack Uh, again, no guarantees I Personally believe that so my view is hey, even if I make zero money next year because I take all my money from my media business and throw it back into uh, things that enable me to do the best possible job for my media business and for Househack I think I can make that 10x reality I Want to ring the stock ballot Stock Exchange Again, but with Househack on an IPO for potentially a billion plus dollar company like that makes me so excited that potential and so I'm really really excited about like expanding House Hack and becoming the best real estate company to exist in. America I Really think I can pull it off I Don't think any other company does wedge deals the way I do because it's hard and it's really because the owners are not the ones looking at the deals you have Executives at Invitation Homes that are like hey, go spend the money to you know people may be making fifty thousand dollars a year and they're just sort of like all right, looks good, let's just buy it and rent it out and it looks good on a spreadsheet, but nobody's actually doing wedge deal analysis on these.

nobody's actually looking at. how can we minimize evictions? you know, knock on wood I've never had an eviction. so uh, I I Personally believe that investing everything I can into these three businesses is critical. but in order to do this I need to have the second half of my day where I can travel and get back same day that way I could spend time with family or I could take family with me or I can make sure I'm back in time for for the evening to to spend some time with family and then the next morning I can focus on my media business as well or again I should say And therefore I've decided to purchase a small uh and the most eco-efficient plane that I could find.

It is a jet. It is, uh, probably the most economical jet that you could buy when it comes to fuel efficiency which I'm very excited about. It is a twin engine jet. The safety of a twin engine Jet Piloted by two pilots in a business Aviation slash Charter uh style of flight is is extremely high.

It's safer than driving. Now you want to separate, uh, business or commercial Aviation Obviously from like you know, people just yellowing it on little propeller planes on the weekends. those are scarier. Much much higher accident rate.

So we think we're getting into something that's very, very safe. It's a newer model of plane. it's a 2021, the one that we're looking at which we're very excited about. It does mean that potentially we're buying a little bit over market value because I do think we're going into a recession, but I do have tax reasons for making that happen this year.

Again, if I can offset five six million dollars of taxes this year and I'm financing the plane with about three million dollars down. The plane actually pays for itself for about one to two years, which is really, really cool and it will enable me to maximize my time growing my media business and maximize my time growing house Hack! See, The cool thing is the following: Let's say I Want to train a crew of um, let's just say eight people? So I want to train eight people? how to be really good at analyzing wedge deals and learning areas with me. Uh, and maximizing their understanding of buying wedge deal real estate? Well, if I took everybody on commercial flights, we're probably looking at least at 400 round trip tickets for eight people plus hotel costs. We're probably looking at 200 bucks a night per person, right? So we're probably somewhere around 4 800 bucks for eight people plus Ubers and food costs and miscellaneous expenses plus the opportunity cost of me not being able to film the next morning.

All of a sudden, it becomes a really, really, really expensive to try to fly around commercially with a bunch of people that I'm trying to train in real estate. Whereas on the flip side, if my core business my media business says you know what we will own the plane, the media business is going to own the plane. It's going to pay for the core expenses for the plane. What are the variable expenses for the plane? Possibly as low as depending on where fuel costs go next year, possibly as low as as low as again depends on fuel as low as a thousand bucks a flight hour.

Well, now all of a sudden, if I make a two hour round trip from here to Salt Lake or I should say two hour one way and then two hours back. That cost me about four thousand dollars in variable expenses and I get to leave with a 15 minute notice, 15 minutes from here to the airport, Hop on and I'm back. Really, really easy. I Can also fly into smaller Regional airports that generally commercial flights don't go into.

I'm avoiding hotels I'm avoiding extra costs of all of these additional people needing to be in hotels and fed and all this stuff so really, And I'm able to be back in the office the next morning to be filming in my studio to provide value and content. So all of a sudden four thousand dollars for a potential round trip same day for eight people works out to about five hundred dollars per ticket When the reality is I'd probably be spending a thousand to fifteen hundred dollars per person trying to scoot them around. and then you gotta figure if we're gonna be there for more days, scoot them around to hotels or food, and Ubers and all this mess. It's so complicated.

The the projections that we're doing show that there's no way I could grow house, hack and run a full-time media business If I have to fly commercially and take half of my day trying to drive down to LAX and then take off from LAX and I'm losing all these days. It's just not feasible. So I've made the business decision to take my media business and use my media business as the ownership company of this plane. So I'm going to spend about 13 million dollars buying a plane, take a massive write-off which will pay for this plane for about a year or two.

Uh, then I'm going to use this to maximize my ability to create content on the business side on the media side, but also be present for Househack. And I think this is critically important now I Want to be so Crystal Clear House Hack right now has almost all of its money tied up in treasuries. short-term treasuries that are yielding us net net about 50 000 a month. That means all of our House Hack expenses subtracted.

We are up fifty thousand dollars a month doing nothing right now at House Hack. House Hack Investors should be proud. they should be looking at this going, damn, doing nothing and up 50 Grand after all expenses. Yeah, it's freaking awesome because we're making sure to manage that money perfectly and Househack is not paying for this plane I Want to be very clear about that I Know initially some people are gonna be like oh my gosh sure Kevin raises money and then all of a sudden buys a plan.

It's like we're going through an SEC audit or an audit that will be reviewed by the SEC But like, all of the money is so transparently accessible and Ross Gerber at GK has all of our money, almost all of our money. Uh it. He's managing it for like a fraction of a fee. Like I A fraction of a percent at that.

I think he's probably losing money doing this for us for the relationship that that we're building long term. So uh, Househack is winning on so many levels. And now rather than have some miscellaneous employee go look for deals for Househack Kevin gets to go look for deals for House Hack while operating his other businesses. So this is a very, very important business decision to make sure that the media business can still succeed while I could still grow the other businesses.

which I think that House Hack business is in the future a multi-billion dollar company which I'm really excited about. Uh, and so hey, look, you know we're going to be launching the non-accredited round for House Hack very very soon. Along with that, you'll be getting all of our audited financials. The SEC Review of our financials.

You will see Zero expenses in there for Kevin's plane. That's because Kevin's plane is a uh A A A an expense of the media business in the future, Might it make sense to have some commercial equivalent expenses like hey, like if we had to fly commercially, it would have cost us this much money in tickets and this much for a hotel? Sure. But I don't want anybody to ever think that this is. Oh, let's use house Like money to pay for a luxurious lifestyle.

This is not a lifestyle like I'm not going into 2023 trying to finance a lifestyle. I'm going into 2023 expecting to work twice as hard as I worked in 2022. Uh, it's like I would I mean like if I wanted to just be lazy and do nothing I wouldn't start house hack I wouldn't even care about making more than maybe one video a day, maybe just one video every other day I care so much about the media business and house hack that I want to Triple down and go all in and that's because I'm not gonna let some idiots hates online on on commentary on forms or whatever. Let me down.

I'm gonna take advantage of uh, tax rules that exist that say I can write off this whole thing I'm going to take advantage of maximizing my time efficiency so I can turn Helsack into what it deserves to be while maintaining my media business. and you know what if somebody has problems with that quite frankly I wish them the best because really, between you and me, they can go screw themselves because I'm making the best business decision business decision that I think I can make and I'm doing that transparently with y'all I expect in the next few weeks. I'll also make more detailed breakdowns of the cost of ownership of this plane. I'll also show you what the plane looks like I Want to be very clear it: it is a uh, it is a jet that will be requiring two pilots.

It is a jet that can be flown by One Pilot But I think for safety purposes two was better. So we will have uh two pilots. Um, we do expect and hope that in 2023, fuel costs will come down though fuel costs are are relatively nominal relative to the overall cost of this claim. There are a lot of levers that you can pull to minimize the costs of ownership of a plane, like chartering a plane out when you're not using it I don't expect it to be in that situation I Really don't want anybody else in this I want this to be mine I want to take care of it like a baby and I want to cherish it and uh, you know I want to I want to hoddle this this thing for a very long time I'm not a plain Trader I don't really care about the value of the thing In the meantime it is a tool.

It's a utility. I'm not looking for a new jet like I get a new iPhone every year. This is a tool. It needs to be a safe Tool uh, as safe as possible, one that I feel comfortable with my family uh, riding on and I'm very excited for what 2023 holds look.

2022 was very difficult I had personal mistakes that were made I think I timed my exit of the market very very well. but I was not very good about re-entering the market. so I did great and then I messed up. Oh well, that's life I lost friends in 2022 I became somewhat depressive at times because of the hate that I received online.

but despite this, I still managed to launch house hack, launch an ETF ring the Pell at the New York Stock Exchange become a licensed financial advisor and launch a new course on helping people provide value. Remember, my goal is with my programs on building your wealth is that if you just gain one ounce of perspective that helps you make more money in 2023, it more than pays for the cost of admission. Would you pay once and you get lifetime access to these courses I really believe that at the same time I feel really sick right now still because I'm just getting over the stomach virus which I got Friday evening I spent all of Friday night in the bathroom praying to the porcelain gods and uh, so far I'm tentatively better though I've had a whole about 10 pieces of cantaloupe and actually surprisingly one cup of coffee and so far I'm feeling okay so knock on wood that tomorrow also be good but that's why I'm not dressed up like I promised I would be not trying to make excuses but I don't feel very good and this is actually my second time filming this video because I feel that the second time around I'm providing a little bit more of a clear video. The last video I was trying to teach a little bit more about tax benefits and I think it you know went over some folks heads and then and then conclusions were drawn that shouldn't have been drawn.

so thank you very much for watching. We'll see in the next one.