No, I did not buy a plane to remind you about the coupon code expiring tonight for the programs on building your wealth or a ride with Kevin to Shadow him as he travels on his plane for Real Estate Hey everyone Me: Kevin here I Wanted to reveal to you the six of big reasons that I actually bought a plane. It is a jet. It was very expensive and it seems kind of crazy. Why would I do something like that? especially at the beginning of a recession.

It seems like I've lost my marbles and simply desire to live a luxurious lifestyle of jetting around cigars and jets. And sure enough, that lifestyle just get old and I'll end up selling the plane within a year because, well, you know, jetting around, you know you don't really need to do that for YouTube and uh, I'll stop making a massive payment on them. Very expensive plane even if I take an L on it. At least that's what haters like to say in this video.

I'm actually going to reveal to you the real six reasons that I bought a plane and I'm going to be as transparent as possible about each of these. So the first and biggest reason is taxes now. I Don't actually think this is a really good idea on its own, because if you buy a big item that you can fully depreciate by the end of the year, you're going to end up saddled with the payments forever. So here's how this works: I Bought a 12.85 million dollar jet with fees.

it worked out to about 13. uh, Comparable sales were about 13.25 for the sale of of this plane. Uh, the airplane. Market is a little expensive right now because there is a two-year wait for any kind of new planes, so current plane values are a little inflated.

I Do think that creates a little bit of downside risk, but the plane appraised and I have no plans of selling the plane anytime soon. Now there are some risks with taking a big tax write-off again I have to make the payment on this, but on about 13 mil of an acquisition, I'm going to be able to save 5.14 million dollars in federal taxes, taking off roughly 40 percent here to make the math simple, and another about four hundred thousand dollars in California taxes. that's going to leave me heavier by about 5.5 million dollars in cash that I do not have to pay to the Ah, the Ah, and the S. Now since I put about 3.2 million dollars down on the plane, it leaves me with roughly 2.3 million dollars more of money that I could use for dumping into Tesla stock and basically Lighting on fire.

Now that is the tax burden that is pretty well solved by purchasing a plane. The problem is if you ever sell a plane, you're going to suffer from what's known as depreciation recapture. Which means if I were to sell the plane next year or in two years around three years for 10 million dollars, then I would have to pay recapture gains on that. Assume it'd be an income tax of about 50 percent.

So if I sold the plane for 10 mil and let's say my loan was eight, I'd get two million dollars in cash out of it, right? But now I'd have to pay five in taxes. so I'd be net net. Negative: three That would suck. So depreciation recapture definitely sucks.

and this is why usually once you get into the plane world, you end up getting stuck in the plain world or you take the Big L Which sucks. So it's kind of like a venus fly trap. It sucks to be in it, and it sucks to get out of it. So once you're in, you've really signed yourself up for a career of working for a plane, and you'd have to be pretty loony to sign up for that.

unless of course you had some other rationale for doing that. And therein comes reason number two: So I obviously have two very big businesses. at least to me they're They're very critical to me. One is a media business and one is house hack.

Now, a media business involves me filming and making YouTube content or short content or whatever kind of content I can make on social media, trying to provide as much value as possible about either news or financial education. Uh, from a media point of view, this is all under the Uh Meet: Kevin uh DBA and then I have a House Hack which is a real estate startup. Now the thing is I was kind of going into launching House Hack with the idea that I would just make fewer videos for my media business and be able to dedicate more time traveling for house hack. but then I realized, wait a second we get more people who invest in House Hack when I make more videos.

So the media business is kind of like a good funnel for house hack. Not only do more people invest, but we also get better access to Deals because real estate agents are hitting us up because they see the YouTube videos. Uh, people send me deals all the time they're like hey, is househack ready to buy. Here's a deal for you right? And that kind of means these businesses go hand in hand.

So I and then there's also the huge opportunity cost if I take time away from the media business to grow house Hack which I'm gonna go all in on because you know I have investors I feel like I need to do the absolute best I can for them. uh then then I'm kind of suffering opportunity cost on the media business because I'm not growing that as well as I could right and I feel like I owe it to myself and to my audience to keep providing as much freaking value as possible on the media business while at the same time being able to travel for house hack. The problem is if I'm not home every single day, then my routine breaks because you're checking into a hotel. you're unpacking your clothes.

you're ironing it all the time. like I Know that sounds nominal, but your routine gets screwed. You're in different time zones. When you wake up, you don't have your studio to walk in.

You're going to put out less content if you're sitting in a hotel somewhere. So this made me realize if I could be back home every single day. I could travel for House Hack and do my media business all in and be back same day. So schedule wise how that would work is: I would make videos from about 4 pm to about 11 A.M including our course member live stream.

Remember, there's a coupon code expiring tonight. today's the 27th. It's the holidays coupon code. You get lifetime access to those uh and then from 11 I could go hop over to the airport, hop on a plane at 11 15.

I could fly up to two hours away. I mean I could fly up to four hours away if I wanted to, but probably the average will be about 90 minutes to two hours away. Up to some flights will be 45 minutes, some will be an hour, some will be two hours. Whatever.

The thing goes. like 530 miles an hour. It's awesome. Uh, so I could efficiently fly somewhere two hours.

Let's say then it's 2 15. hop in an Uber go look at real estate for three hours, it's 5 15. Go! Uh, you know, check out the the you know local restaurants or I don't know some local entertainment to see what the areas are like. Get used to being part of the community.

You have to be part of the community during different times of the day. Very very important. So you understand. Why are people here? Why do people work here? Why aren't people leaving If you're talking to every single employee in a town and they're like I Can't wait to Gtf out of this town.

That's a red flag, right? Quick little sample. So uh, then you hop on a plane. two hour flight. Okay, so you hop on a flight at say seven o'clock you're back home, landed at nine, you're back home at 9 15 and then you go hang out with uh Lauren and you go to bed.

You do that two or three times a week. The other nights you spend with family or maybe you take family with you, right? That's an option too. So then the next morning I could wake up at four again and make content. So now all of a sudden I got that tax reason.

And the tax reason was really, really useful this year because next year I'm going to move into a C corporation. which means my taxation will actually go down. so we're going from S Corp to C Corp which means I have higher taxes this year, potentially lower taxes next year. makes this year more opportune to take a big amount of bonus depreciation a La Via a plane then I have no opportunity cost for my media business and house hack.

If anything I could actually double down and Vlog my trips to different areas now I can provide value to not only house hack investors but to you on YouTube so you could see what I'm doing and be back the next morning to still grow the media business while attracting real estate agents, investors. and Deals it's freaking awesome. Okay now I have to really believe in those two businesses. otherwise it would be stupid.

I would have to believe that I could actually turn Househack into a billion dollar company in the future. No guarantees. Obviously that's just my my personal goal. Uh, I Have to believe that my media business can continue to sustain producing content and providing value to people.

If people don't like my value then that's dumb then I could just go all in on healthsack, quit the media business or don't do house I can go all in on media but I want to do both because that's who I am and I actually really believe in both of those businesses now I Have to be really clear, this is a bet on myself I Don't think that it's really a bet on House Hack because it's really difficult to go bankrupt buying single family fixer-uppers you know, wedge deals below market value I That's hard because the product is not an uncertain product. You buy a really good deal below market value when the market gets closer to bottom and you rent it out after you fix it up. It's really simple. It's not like a you know you're selling a new widget and you're not sure if somebody's gonna buy it.

So I think it's you know housing is very very low risk in my opinion. No guarantees obviously. I think it's It's a very strong long-term play on a company that that in the future I hope beats the likes of BlackRock and Invitation Homes I have huge Ambitions for House hack I'm really excited about House Hack and we've also got our reg a launching next uh, next year probably like March or so and that allows non-accredited investors to invest which it will be pretty cool. We just finished our audit and the SEC is going to be reviewing that and of course we'll be publishing our audit and everything so that's really cool.

The media business is is a gamble though, right? because look, I mean you can get canceled. Uh I mean I Personally think that if I was gonna get canceled, it was probably gonna happen in 2022 because you know I made mistakes. Uh, you know people thought I was I was a flip-flopper. Uh, when when I sold my stocks that ended up being the right move.

but then I I got so guilted I I bought back in early and I made a mistake on my rebuy my cell was perfect I think I think my cell was great. My real estate selling was great but my rebuy wasn't that great right? Uh then there I made some other personal mistakes. uh you know and and you know I don't really want to get into it all but like this has been a tough year so uh, you know I hope that it's up from here but who knows, like you know what if people are like yeah, we just don't want to watch Finance YouTube anymore, we just don't want Kevin's breakdowns on fundamental analysis or or news commentary or political commentary. Well and I'm screwed you know? So I am making a really big bet on myself and it does increase the stress level because for me I'm like damn I need to make sure every video I create people are like huh? that's good value I couldn't have gotten that somewhere else.

you know that's that's what I have to tell myself and then I have to perform to that level of expectation because if the media business goes away, I'm screwed I can't How is I can't gonna pay for the whole plane? I'll say else I can't even make a dime for the plane right now? You know maybe they're the in the future they'll be like nominal uh, reimbursements, uh for for specific things for outside, but that would be reasonable. Obviously they're going to be reasonable travel expenses for House Hack. but like I signed on the debt for this loan so did Lauren This is Kevin and Lauren We're on the hook for this plane, so House Hat gets the free benefit of the plane. Basically at this point, with no risk, Catherine's taking all the risk.

So that means a hundred percent of the risk of the plane is on the media business. Zero percent of the risk is on House Hack, but probably fifty percent of the benefit is on House Tech That's amazing for house hike investors. Uh, that's scary for me because all the pressure's on me. But again, I'm making that bet on myself.

You know I don't want to be here and tell people like oh yeah, sync yourself to your eyeballs in debt and you'll motivate yourself. You'll be fine. You know. Just go at it.

You know, go hustle. Um, I'm a big fan of hustling, but I I Have to be real I'm making a bet on myself. That's what I'm doing I'm making an investment into the future of these two businesses, making sure I'm not losing any possible opportunities for House Hack or the media business. It's that simple and it's a bet on those two.

So now you combine the tax situation having more Cash Plus the fact that my tax situation should be better in the future going to C Corp Yes, that has double taxation implications, but we talk about how to deal with that in the elite. Hustlers Course some really great lectures in there for taxation, business structures and that so uh, then obviously opportunity costs for media and House sack. Reason number three: I want to be home with family every single night. So that way every single night it you know.

ideally if I can get back home at six o'clock or seven or eight, whatever. or you know, or I just don't travel certain days I'm I'm always home with family every single night. That's the goal. Uh, reason number four: I think the being home for family is a big one.

Reason: Uh, Reason number four, five and six. These are like minor reasons. So I would say probably 20 to 30 percent of the reason is taxes. Let's go with 20, right? Because if I was only operating a media business, it wouldn't make sense to buy a plane.

Uh I I wouldn't need a plane. That'd be stupid. So 20 of the reason taxes. that's convenient.

I'd say 70 of the reason is the opportunity cost for the media business and House Hack. I'd say uh, seven percent of the reason is home with family. so that's 20 plus 70. That puts me at 90 plus seven that puts me at 97 and then the next three are all going to be one percent each.

So obviously number Four. A side perk is if I ever wanted to take a trip with family I could do that much quicker and more efficiently. Which does benefit the media business again because I can you know be back to make content more quickly? Uh, that's a one percent reason I think that'll happen more rarely because I don't go on that many family trips. Uh, you know, at least relative to the situation we're in.

We could be going on a lot more trips, but I don't I work a lot. Uh perk number five, which is also a one percent reason is I I do think there's some benefit to maybe employee retention? Uh I you know I think it's cool for employees? Uh I think uh, employees are going to learn a lot more a lot faster with me in person. Uh, this is why Also, we are uh, selling the opportunity for you to Shadow me for a day where you know we'll meet at a local airport, we'll go fly to a real estate destination and get to talk to me on the plane, my team on the plane. we'll all get to talk together.

Uh, you know about entrepreneurship and business and real estate investing? It's really just an opportunity for your chat with me. You could use the link down below to learn more about that. but uh, reason number five is that employee perk and reason number six I this one I think is a plus and minus. So again, I'll give it a one percent reason here, but this one has minus factors to it.

I think there's some, uh, potential marketing for it with the plane. but I have to be careful because some people think planes are pretentious and unnecessary. so that could be a minus, right? So it could be like plus one percent minus one percent. So kind of a wash.

Uh I do think that the way I plan to utilize it by making sort of reality style Vlogs With Househack when we go hunting for Real Estate will be very beneficial to House Hack and the media business, it'll be a win-win-win But uh, and then in the future I think people will see like okay, yeah, that makes sense Kevin knows what he's doing. You know he's not as much of a knucklehead as we thought he was. uh, this is actually a really good strategy I I think I have to prove that now right? like it's It's easy to say that. but I have to prove it.

So I'm signing myself up for a journey and I hope you'll subscribe to the channel and uh, you know, enjoy the journey with me. So anyway, let me know what you think in the comments down below. Tell me if I'm crazy it's okay and uh, we'll see in the next one. Thanks so much! Goodbye and good luck.