Revealing the REAL Reason I Bought a Private Jet.

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