How do you build wealth without internet marketing?
How are you building long-term wealth besides your online businesses?
In today's video, I am going to go through the 7 ways I am personally building wealth outside of my core businesses.
Pay attention! All of these are absolute game changers and are increasing my wealth exponentially!
In this video, I am going to cover:
- Why you need to educate yourself on taxes and how knowing more will help you keep more money in your pocket each year
- How to leverage real estate funds, debt funds, and more to build your wealth
- AND... why investing in yourself is the most important way to increase your money in life!
How do you build wealth without internet marketing? I get asked all the time, "Dan, how are you building long-term wealth besides your online business?" Well, that's what I'm going to cover in today's video. Plus don't forget to subscribe to the channel so you get more videos like this as I release them each and every week.
Hey everybody, Dan Henry, here I am the author of the Wall Street Journal bestselling book, Digital Millionaire Secrets, and the founder of getclients.com. And today I'm going to talk about how to build wealth beyond internet marketing. In other words, if you have some sort of online business, like your coach, a consultant, you have an online course, you have any commerce store whatever it is, and you have this crazy internet cash flow because we know that when we get good at online business, it is some of the most insane cash flow on the planet, right? It's just, it's nuts. And so I get asked all the time, well, Dan, we know, you know how to make money with your online business, but how are you making money or how are you building long-term wealth? Beyond that? I get asked this all the time. So that is what I'm going to cover today.
All right. So let me just make two distinctions here. Number one is I am in the business of selling advice. I have a coaching program. I have a book, I have a mastermind. I sell it's me. I'm the business. So for me, for Dan Henry, to be able to sell this company is pretty much not it's not going to happen, right. Or if it did happen, I would have to sell it for pennies on the dollar. Because without Dan Henry, the company becomes pretty worthless, just like Tony Robbins is going to have a hard time if he ever wanted to sell Tony Robbins, because it's Tony Robbins without Tony Robbins, it's not really Tony Robbins. So if you own a business like that, where you're the face and it's you, I recommend taking all that crazy cash flow you're getting from the business and investing it and putting it into things that make you more money.
Because the amount of net that I make from my info business, as some people call it is, is crazy. I have had close to seven-figure net months before it's nuts. And you know, the profit there while insane, and while just way more profitable than any other business is one reason why I teach people how to sell information, how to create an information business. I talk about it in my book is because the profit margins are just incredible. You can't really sell it. And so you have to take that money and put it in something that will bring you more money. Now, if you have an eCommerce site, then you know that they are nowhere near as good as info, but you can sell that company. And if you sell it after owning it for 12 months and a day or more, according, at least as far as I know to the tax code, you pay capital gains tax, which is far less than regular income tax on normal income.
And so you know, you can sell that long-term so there's a little bit different strategy there depending on what you're doing, but let me hop over to my whiteboard right now and show you seven ways to build wealth without internet marketing. So the first one is going to be taxes, taxes, taxes. All right. So what do I mean by taxes, taxes, taxes? The very first way to build wealth is to understand that your biggest, one of your biggest expenses in life, besides not knowing how to make more money is taxes. So the very first thing I did and would suggest that you do before you do anything else that I'm going to list on this list is educate yourself on taxes, as well as find yourself a CPA or, or, or a tax professional that is specifically familiar with your industry. Don't just hire any CPA.
For instance, I have a CPA for internet marketing, right? Like she works with mostly internet marketers. So that's where I work with. And so you want to make sure that every day you educate yourself a little bit more on taxes, taxes, taxes, even when I talked to my CPA and believe it or not I drive her nuts. I drive, I drive, I drive this woman nuts because I'm always trying to learn more about why we're doing the things we're doing, why we're putting money in certain places because I just want to understand it. And I often come up with ideas and creative ways to do things, even though I'm not a tax professional, I'm always learning. So always try to learn more about taxes, ways to save taxes, put substantial effort into that, you know, listen to an audiobook on taxes or, or, or, or, or on, on how to save taxes.
Absolutely put effort into that. That's my number one way to build wealth, okay. Is to understand how to pay less taxes and thing is tax code changes, right? Depending on who gets elected president, let me give you one example. I am in process of buying a yacht, I really want to own a yacht. And so I know that the current president will allow me to write-off up to $2 million in depreciation off of a yacht. I know that because that's what my CPA told me, hs the current law. Now I know that if the other guy gets elected, they're going to reduce that back to where it was 250,000, because when he was vice-president, he was, you know, vice-president of an administration that lowered it to two 50. So I can only assume he's going to bring it down to two 50.
That would, that would hurt me bad tax-wise. So seeing as the election, as far as I record this video, the election is coming very quickly. I may elect to know that I may elect to not yet buy the yacht until I know who's going to be elected president, because now I'm going to go, okay. If I buy this yacht, I, you know, and again, I'm buying the yacht for where we have this a company that I started called millionaire cruise, where I'm going to sell tickets to a million-dollar mastermind cruise and this, this whole thing. Anyway, the point is that with taxes is this is if I buy that yacht under an administration where I can write off $2 million in depreciation, versus I buy that yacht off of at a minute, or during an administration, they could only write off $250,000. That may be the deciding factor, whether or not I get the yacht weight, et cetera. So I would have never known that unless I, I constantly asked questions. I constantly studied that. I would have never known that. And I would not be able to make a good decision or as good of a decision if I didn't educate myself on taxes. So no matter what field you're in, please educate yourself on taxes. Okay. So the next thing is real estate funds. Now you might say, Dan, do you invest in real
Sort of, I invest in real estate funds now, does that mean, well... let me tell you a quick story. I, some time about a year ago, a little over a year ago, decided that I was going to get into real estate and
I made the mistake of not thinking it through. I bought a house on the water that was, you know, a million-dollar home. It was not in good shape. I remodeled it, turned it into a 1.5. You know, I basically brought it from about an $800,000 home to a $1.5 million home. And when it's all said and done we, we have it listed on the market. Now I should clear net anywhere from 300 to $400,000 in profit on this home. Now, if you think about it, that's three to 400, and let's just say 300 grand that's a year, right? That's you say, Oh, it took you a year to make 300 grand. Well, yeah, but, and that's a lot, but here's the thing. My business, my actual business makes far more money than that. I mean, we make that in two weeks, sometimes far less. I've had a day where we did an event. We made a million dollars in a single day because we sold 34 spots to a $30,000 offer.
It may, you know, it substantially better, because I bought this house, had to go to closing,
You know, I had to talk to my realtor and figure out and approve things and approve changes and new roof and new this, and the pool needs this. And, you know, we need to redo the tile and I needed to talk to the contractors and my assistant has to pay the contractors. And there's so much logistics in it that, yeah, sure. I'll make a bunch of money off of it. But honestly, I would have made more money if I took the time and energy I spent on that and shifted it to something else in my business would have made it far more money. And so for me personally, I just don't see a value in taking time to purchase and manage and deal with a real estate property when I have better things to do. And as well, you know, most people let's say you make 20 or 25% of real estate deal.
Well, if you go into a real estate fund, what happens is you are contributing your money to a fund where somebody else is buying and managing and doing all this. And so these funds basically I find a fund that is managed by people that know what they're doing in real estate. I say, okay, here's a hundred grand, here's 200 grand. Here's the money, right. They go out and they'd handle all that stuff. And I might make something like 10%, 14%, 12%. Is that less than 25? Yes. But all I have to do is literally wire money and sign one document and I'm done and I get a check, that's it? Okay. Boom. That, I mean,
That's way better for me. Now, I like to choose real estate funds that include depreciation. And that means that they will allow you to claim depreciation on the real estate to offset the income. And some funds do that. And some funds don't. I like to choose ones that do. So I get the tax benefit. Now keep in mind. I am not a tax professional. I am not giving you tax advice. I'm just telling you to learn about this. And this is stuff I've learned, but for me, I like to prefer real estate funds with depreciation. Not without now, this third thing is going to be other funds or I like debt funds, right? So what's a debt fund. A debt fund is where it's very similar real estate fund only instead of purchasing real estate and assets. They basically loan money to companies that need the money and they put up their businesses or what have you as collateral.
So for instance, right now, I'm invested in a cannabis fund. And what this fund is, is there are cannabis farms that have way too many orders. They can't fulfill because they don't have enough equipment or manpower. And the way it works is they need to buy machinery or buy new stuff or whatever. And so it's not like they're struggling. In fact, it's the opposite. They need money so they can make more money so they can fill more orders they already have. And I know this for a fact because whenever I have a medical card, I live in Florida, I have a medical card and whenever I go to the dispensary, half the stuff is always out. So I know this to be true. And so I invest in a cannabis fund where basically they put up the farms as collaterals, very secure and you know, I make about 14%.
And actually, I can make more percentage depending on what happens in different things that go on. And again, I just go to the mailbox and I pick up a check. So real estate funds with depreciation. I like those debt funds. I don't like to own my own real estate and do all that. I do own some that have already bought a rental property or two, but I like to just do funds, you know, out of sight, out of mind, let, let the professionals do what they do. I'm good at info. I'll make that money. I'll dump it into here. Boom. Okay. I call this the revolving home strategy.
What does a revolving home strategy mean? Well, this is really cool. So I learned from my a realtor that I bought my house from. I learned that what she does to make extra money is she finds investors and she will actually have a home built at, at pretty much at cost. And then she'll sell the home. So she'll build it specifically for the market. You know, not a home that somebody specifically would like, but a home that would be easy to sell. She'll build it and then she'll trade equity. So in other words, what she'll do is the builder will you'll pay the builder the hard cost, right? And then they'll take half the equity and then you, the investor takes half, half the equity. So if you build a $2 million home for a million dollars and you go to sell it and it's worth 2 million, the builder takes 500.
The homeowner takes, or the investor takes 500, boom. Now, this is a strategy that a lot of people do. So here's what I realized after I realized that I was going to sell my home is I bought my home and it's worth about $700,000 more than I bought it for now. And I learned, and again, this is current, this is what I understand of the current tax code is that if you live in a home for, I think it's two or three years, and I've lived in that home for almost four years, that you can sell that home. And up to $500,000, whatever you gain up to $500,000 is tax-free. And again, this I'm not a tax professional. This is, and these, these rules change, but this is what I've studied and I've learned. And so when I go to sell my home, I'm going to get a bunch of tax-free money.
So I contact my realtor and I say, Hey, I say, can I build my own home? Build it, not how I like it, but build a nice home. That would be easy to sell live in it for, you know, two or three years, and then have you sell it? And she says, yes. In fact, she, and she says, she knows a guy that literally will build a home. So he'll build it under market. The market will go up, he'll save it for just long enough. I think it's, again, it's two or three years to get those tax savings. Then he'll sell it. He'll make a huge tax-free game. And then he'll get to move into a new house. And so that's what I call the revolving home strategy is, you know because I'm sorry guys. I like to live in different homes. I don't like to stay in the same home all the time.
I like a change of pace. So my plan is to buy a nice home for myself. That is not for me, but that is easy to sell. And I like homes that are easy to sell. I like contemporary and that's an easy home to sell. I believe. So I buy a home. That's not my dream home, but home, they can sell all, all, stay in it for the required amount of time, sell it and get a completely tax-free gain and just keep, you know, every three years, just get a new house, get a new house, get a new house, get a new house, get a new house. And that's how you can build some wealth that way. It's just like tons of tax-free money.
Okay. So the fifth way is going to be equity consulting. What is equity consulting? So when you become an authority in your space or you're an expert at something your advice tends to be worth a lot. For instance, I was able to actually gain 50% and w I'm able to gain anywhere from 30 to 50% ownership in a company, simply for my advice multiple times, I have done a deal where I've gone to accompany or, or they've come to me. And they've said, Dan, you know, how much would it cost you to basically be our CMO or basically give us advice? Or what have you? And I'll say, well, you know, it costs this much money, right? And they say, okay, well, Dan, we can't afford that, but we have a great product. We know what we're doing. We just, we just need to sell it.
We just need to be able to sell a better, so I'll look at the company. And if I feel good about the people, if I feel good about the fact that they'll take direction sometimes, and I don't do it often, but sometimes I will say, all right, I will consult you. I will tell you everything you needed to do to grow this company. I'll make sure the company grows. All you have to do is do what I say. And I get X percentage. And depending on what it is, I usually go for anywhere from 30 to 50% equity. So we'll, we'll do a deal and I'll pay five grand for a lawyer to draft it up, but I'll get a percentage ownership in that company. I will build that company up, make it better. And then when it sells, when a company sells, I get a huge payday.
I did this with a software company, we sold it for several million dollars. I got a huge payday capital gains, all that stuff. And I didn't actually put any money in just my advice. And so, so I do personally, I do equity consulting. And again, I really have to like the company. I really have to like the people because I'm basically doing work for free until the company sells. And the company has to be able to be sold one day profit sharing every month is great, but that's pennies. I want it when the company sells.
Okay. So that's equity now the sixth one is going to be stopped. Okay. Now here's the way I've used stocks. And, it's funny. I never was interested in trading stocks or investing in stocks until a good friend of mine. Myron golden explained it to me in a way you see, I didn't want to invest in stocks because I thought to myself, well, I don't have control over this.
What if the company CEO does something stupid and the stock drops and I lose money and this and that. And so I didn't like it, but my friend Myra, and he says to me, he says, Dan, think about it this way. When you put your money in the bank, what do you think that bank is doing? What do you think that bank is doing with the money? I said I don't know. It's just, that the bank only takes a very small percentage of that money and keeps the cash on hand. But what it does is it takes your money and it invests in companies in things, and it makes money off of your money. And I, and there is a risk with that. That's why it's only insured by the FTI, see up to $250,000. And so he says, if you have millions of dollars in the bank or even hundreds of thousand dollars in the bank, what would you rather do?
Would you rather have the bank, put it at risk, and make money off of your money, or you make money off of your money? The same thing the banks already do doing? I said, well, that makes sense. And so what I decided, what I like to do is I like to buy stock in companies that no matter what I am confident that a year from now, or two years from now, or three years from now, that company will be worth more than it is today. Like, I'm pretty sure I'm very confident that say Apple or, you know, usual stock like, even fate, Facebook is going to be worth more in a year or two than it is today. Just like the S and P 500 generally goes up 10% a year. And so if I have a million dollars in the bank, I'm going to earn like nothing basically.
And my money is still technically at risk, but if I have a million dollars in Apple stock, even if one day I'm down and one day I'm up, I know that in a year from now, I'm fair. I'm fairly certain that Apple will be worth more in a year or two than it is today. And so I don't look at the daily changes. I just go, all right, it's going to be good a year from now. Now yes, there is a risk to that. Absolutely. Could I lose all my money? Sure. Well, I doubt I'll lose all my money, that the idea that Apple would go to zero isn't, I doubt that would happen, or really most companies, most blues blue-chip stocks. But I will tell you this I've had days where I was up 50 grand and I was down 80 grand. I've had days where I was up 70 grand and I was down 60 grand.
And if you look at the stock, it's going to drive you nuts because you're going to freak out. You're like, Oh, my I made 80 I'm, $80,000 less rich today, just because Tim cook accidentally stuttered during an app Apple press conference. But the thing is, it's long-term. And so I don't try to trade or day trader to that. I try to invest long-term and socks on companies that I believe based on my research, that I think there'll be worth more in a year than they are today. Because again, when you sell that stock at least how it is now, you do a capital gains tax which is far less than regular income tax. All right. The seventh, the seventh one, and this is the most important one is self
Education. Self-Education now, what does that mean? Self-Education, it's sort of similar to tack, to investing in learning and taxes. What I do is I take a substantial amount of money and I invest that into learning more ways to make money. Remember when I said that the N the, the second biggest expense in life is taxes. Well, the first biggest expense, the number one expense is not knowing how to make more money. It's ignorance, it's the cost of opportunity. So I always invest in ways and learning ways to grow my company, make more money. For instance, I had no idea. I had no idea that I could make money in various ways that I've listed here. I've paid $25,000 for a one-hour consulting call from an investor and a trader that knows, you know, stuff about stocks and trading. That, that blows my mind.
I invested 25 grand for a one-hour call with this person. And a week later, I made almost all of it back. So, cause there's some other kind of cool stuff I do with, with that, which I can't say, because I'm no way I'm gonna, you know, repeat this information that I paid 25 grand for an hour for. But the point is over the course of the past, I'd say four years, I've invested about $500,000 in my own education. Now you said, again, you invested $500,000 in learning things. You could put that in stock. You could put that in real estate. Oh, you're a bad investor. Well, yeah, but as a result of learning more, how to make more money, my company is now soaring towards the $20 million Mark, $20 million total in sales. Think about that. Like what stock can you invest in? 500 grand and make 20 million from in less than three years, 33, four years, no stock.
So the point here is that by self-educating and investing, and self-educating all of this stuff becomes possible. Plus building your own company, which is likely if you're watching this in internet marketing, I joined masterminds. I get coaching calls. I'll pay for one-hour coaching calls all the time. Do I want, if I want to learn how to better manage my team, I might pay for a one-hour coaching call with a very competent or renowned project manager or COO. And just ask some questions. Always, always invest in my own education, because that is the number one thing that carries the most return. Okay. I hope you enjoyed this is kind of a long video, but there was a lot to cover here. So I hope you enjoy this video. And if you'd like to learn more about what I do and how I build money in my internet marketing business, so that I can feed, use seven ways to build wealth, then grab a copy of my book, digital millionaire secrets.
I'll leave a link to where you can get the book free. Plus shipping, just cover shipping and I'll send you the actual book free, just pay the post, man. I'll leave a link for that in the description as well. If you've already read the book and you'd like to invest in yourself education to learn how to build your internet marketing company, more than you can book a call with my team to see if we're a fit to help you. I'll leave a link for that in the description as well. But don't forget to subscribe so you can get the next video as I release them every week. See you in the next one.