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ADPI_027: Fire Side Chat With CEO Markian Sich

Sep 21, 2018

Episode Transcription:

Welcome to the active duty passive income podcast guys. you are in the right place Mike foster here thanks so much for tuning in. we have an awesome episode today. it is with our El Capitan. We’re going to have a little fireside chat with our CEO Markian on stitch. He’s a great guy and he has an awesome story. Hope you guys enjoy.

Hey freedom fighters welcome to the active duty passive income podcast. The only place where military members, veterans and their families learn how to build wealth through real estate investing. I'm your host Mike Foster and I'm here to show you how to stop wasting your benefits. Now get off your ass, step up to the firing line and make ready for today's lesson. Shooter stand by. 

Mike: Hey hey what's going on guys how you doing out there. Mike foster in the house and I am here live with our CEO. Yeah Marc Yan, here he is an amazing dude.  I don't even need to introduce him to you. Because I'm sure you guys have already seen him to our Facebook, through our website. But Marc Yan what's going on buddy? 

Markian: Hey man how are you? We’ve been trying to do this interview for quite a while.

Mike: We really have. But it's cool dude. You know I think we're both living these busy lives. I mean you a little busier than me right. I mean you got the big family now. 

Markian: Oh yeah. Yeah he's almost 8 months old now. Now he's teething and his nights are a little bit crankier. So I'm getting less and less sleep like last night he just started kicking me. I think you're just checking if I was there and he wanted to have a buddy to stay awake with. Yes I don't know. But yeah it's super fun though. He’s a really cool kid and oh my gosh he just you know everything flipped upside down, it's awesome. I believe it man and I see all the pictures on Facebook he's getting big. 

Mike: Very very cute man. That’s awesome. 

Markian: Thanks dude I appreciate it. 

Mike: So yeah man so I mean let's just you know kind of dive in and I guess get to know you a little bit more you know in case the audio see here some people haven't really met you. But a fun fact about Marikina, so we actually went to the same school and I don't think we ever really met there. Everybody cross paths but once or twice but that's about it yeah? 

Markian: Yeah it is absolutely ridiculous. Oh my gosh guys so let me just dive into a story here right. so first of all I'm going to give you a little bit background myself, then I'm going to give you a little bit of a story of how ADPI was created and how I met Mike and yeah I really just don't like I'm not going to, I'm going to try to just start from the beginning and that way it's the only way it'll make sense right. But yeah isn't that crazy we haven't actually ever met? So okay let's dive into this.

So I am a third generation immigrant. What does that mean? Really it means that my grandparents moved to the United States first. So they either, post-world War two or religious oppression what have you like they're all from Ukrainian background, they moved to the United States. My parents were either born here or my mom was only like two and she moved here and so they grew up in America of all intents purposes as US citizens. But with very strong ties to back to their heritage and then I would have been even more so removed that's why I'm third generation. But serendipitously you know my parents moved back to Ukraine actually. because my dad was a big nerd at MIT in Harvard and his dissertation on Chernobyl and needed to move back there to do research and yeah like I was born in the six months prior to the fall of the Soviet Union with like where you had to wait two hours in line to get milk in western Ukraine for my parents.

But yeah and they didn't have Skype and stuff like that and so I can't even imagine what my mom was going through. She was still trying to learn Ukrainian because her parents were mostly like they're mostly Croatia, Serbo-Croatians from with a background. so she never really grew up speaking Ukrainian anyways and they had a whole bunch of us exchange students in Ukraine there cause that’s how they got to Ukraine was they that's how they paid their tickets they did an exchange program. Anyway so the reason why I'm setting the stage that far back is because that's what set up my mindset I believe today. I grew up basically in Ukraine, let's see fifteen and a half. There were brief periods of like two years alone in a year or two in the United States.

Like everybody in Ukraine like it's their dream to end up in America. All the movies, all the Hollywood you know all the skyscrapers in the rollercoasters oh my gosh. As a kid I don't know why rollercoasters were just the epitome of America. Yeah so I just felt like Ukrainian kid playing soccer with rag balls I'm not even kidding on the streets. That was my kind of and I was home-schooled and I don't know I had a very interesting life right with just like growing up. At one point we lived, sorry what was it? 25 miles there we go from Chernobyl. So I had an interesting childhood. But I moved to the United States, had to go to high school by myself.

Basically lived with my grandparents. Cause my parents and the rest of my siblings and the oldest of seven haven't moved back yet. So here I'm going through high school trying to figure everything out, I was shocked. at first I didn't like America I was like I didn't get anything, I didn't understand why? Kids in high school were so like click and mean and I didn't get the mom jokes. I don't know. So I had to like figure this whole thing out and then I applied to the Naval Academy just because. Because my dad knew me all too well and he was like you know what let's just... he's like yeah you could apply to this than the other school, that school is hard to get into.

I don't know my dad knows me too well. I applied and they were still in Ukraine. So I had to do the whole thing by myself and I got it in. so I was on the waiting list. I was one of ten people on a waiting list believe it or not. Anyways got into the Naval Academy went through the whole thing, Commissioned as a Marine and I'm setting it all that far up again it's because of mindset. I didn't realize until later how big of an impact seeing the contrast between living in Ukraine and living in the United States and all the opportunities America provides how big of an impact that would make on what I wanted to do for myself essentially and for my family and for you know not to sound cliché but for my legacy.

Like what is it that I'm trying to, what is the impact I'm trying to make, what is my mission right and like I said so I'm going through the Naval Academy and I think maybe like when I saw pictures of you when we first started talking I was like I think I remember that kid in some class. But I remember we ever talked dude or actually I think I saw you dancing. So maybe it was the international ball. So anyway so fast-forward I'm going through flight school, I'm trying all sorts of entrepreneurial stuff on the side. Because flight school super intense at times and sometimes there's just it's like kind of it slows down.

So everything from like trying to make an app to figure out what...  here's the thing I was dating a Katya, my now wife and she's Ukrainian first generation for her like she never been to United States until we got married and so she was in France studying how to be a winemaker actually. So I had to travel at the France during flight school which is legendary for the fact that they won't let you ever go on leave. Like that was the whole joke about flight schools like yeah like you literally will never leave flight school.

Maybe like four days on Christmas. But other than that you have to always be ready to fly. Because the weather is always unpredictable and so you're on track and you don't fall too far behind then you have to read new flights, you have to be ready. but every single time there is a gap, every single time there was anything going on I had pre planted three months in the head and planted seeds in all my CO's and XO's like I am leaving. I'm going to go fly to France, I'm going to go see her and so because of that I always tried to figure out ways to create more income, to minimize my expenses.

Just so I could save as much money for the tickets right and then eventually my ring you know and all that stuff. Again all this setup happening because it's kind of painting the picture of my mindset like why did I start getting interested in finances so much. Because I had no choice. I needed to figure out a way to see her. I needed to figure out how to spend less money or make more money or something and I started learning after a failed attempt at certain entrepreneurial venture,  I discovered I was like I can't do all this crazy stuff in the military sometimes. I mean like first of all I don't like the word camp. but I was like I don't have time to like... when we tried to get investors for an app and when they realize we couldn't give 24/7 they're like yes sorry guys it's not going to happen.

How am I supposed to give 24/7 to some kind of like side project I have, it’s not possible. My primary occupation is flying being in the military, doing a good job right.  Doing my duty. But so I started I don't know what it is I looked up. I think I just look up side jobs or passive income and I just started like goggling and searching and all this kind I've discovered Rich Dad Poor Dad, I discovered podcasts, I discovered the concept of passive income and all this stuff in my whole world just blew up. My car soon became my university like my automobile university.

I would just turn on podcasts and audiobooks and you name it and I still remember the road I was on when I listened to Rich Dad Poor Dad. I had an incredible impact on me, the purple Bible. Like it completely shifted the way I thought about American finances and I realized wow like we have an opportunity in this country to take advantage and we should take it's like...  all of a sudden like my duty A, to take advantage of this. A, like holy cow this is how it's done. Like all of a sudden it demystified. What needs to be done in America to become wealthy and not for the purpose of being wealthy in and of itself? Because that seemed a little shallow and that's what everybody liked tried to judge you.

It’s the allowing you to maybe spend more time with your family. It’s allowing you to feel a little bit more stable while in the military. it's allowing you to feel more stable and more comfortable for when you think about transitioning in the future whenever that'll be, whether you make a career out of the military or not. All those things are what I realized was important behind making more you know money. It’s almost like money's a dirty word. But here's the thing it is the currency of our line of our freedom in terms of our day to day experiences and how much we get to pay attention to certain things.

If you have to constantly pay attention about putting you know bread on the table, then you're not able to pay that attention to your family. So I was like you know what I'm going to figure this out. So I just kept diving into it. I kept making all sorts of mistakes by talking to... so I essentially started talking to brokers and lenders and turnkey companies and tax advisers and all this stuff and I don't know I made a lot of mistakes. Mike I mean I'm pretty sure did you make a bunch of mistakes when you just? 

Mike: Oh yeah man getting started you kidding me. My first investment was a mistake. I'm actually selling the thing right now. 

Markian: For me I was like I thought okay you know what I'm going to do this turnkey thing and I'm going to figure out... I just had like all tomb of a rosy picture painted in my mind. I was like this is going to be cake. I'm just going to buy this thing, it's going to be ready. I don't even like all these people seem so legitimate, it's not going to be a problem at all and you know next thing I know the properties under a praised by way too much. The property man! It’s like a third of the price lower it was what it appraised at.

The property managers were never responsive. I realized that the contract later down the road I had a realtor read my contract he's like dude this is a terrible contract. You’re literally liable for everything. just all this kind of stuff like I just made so many mistakes and it wasn't until, you know in simultaneously I'm talking to my parents cause I'm realizing like wow I really want to ramp this up and achieve financial freedom sooner.

I need to get my parents involved and start bringing in private capital through them and potentially partnering with them to really scale this quickly and so I'm talking to my parents, making mistakes trying to get something done, so I could show them how it's done and you know one thing after another and I finally get my own rental property and then soon after we buy a 56 unit apartment building with my parents.

Now where it is ADPI? Where does that fit into the whole mix? Well as I was getting ready to close on my first rental property I realized that there was not a place where I could learn all this that was for military. Well I knew that there was a VA loan, I knew that there was... I almost knew less about my benefits as an active-duty military guy than I knew... so yeah I literally knew nothing about the VA loan. I just know I can put zero down on a primary residence. I knew more about like how to like buy rental properties and stuff like that and so I was like I think there has to be a way that all this can fit together and it just seems all too good like military have these amazing benefits,  let's try to you know figure it all out.

So just started a word press blog and I started writing things and then people started reading some things and then I was like you know what I spoke to me like entrepreneurial mentor and he's like dude you should use this software, you should go into this that and the other thing and I started learning about all this stuff and somebody on, I think it was Santos on LinkedIn told me hey dude you should reach out to Mike foster, he's really into this real estate thing too and so I just gave you a call. Like I just messaged you and then I gave you a call and we couldn't get off the phone for like an hour and a half. 

Mike: Like yeah it was about an hour and a half man. I think we were just on the phone just shooting each other on real estate man. 

Markian: Yeah we realized we were learning all the same things. We had an exact same mindset. I was so jealous cut like you just seemed like you had you know you were ahead of the curve already. Like anyways I was just so pumped to meet you and also because I didn't know that anybody else in the military was interested in real estate. So I was just such a revelation to me and then I started meeting more people like you just did an interview with Buddy Rushing. I spoke with him on the phone and he's like yeah that's probably a 15-minute conversation, an hour and a half later we're still talking. It’s just like sparks were going off and through the cell phone and its funny because he was like yeah when we found your website we thought you like copied everything we wrote on our website.

I was like I don't know man I'm so pumped to find you too. It’s just like all of a sudden he actually helped me get my first property right and so like all this kind of stuff I realized that wow there is a need. There’s a need for military to unite online no matter whether they're on deployment, in some other country, at home sitting on the couch or you know or they're commuting to work; there needs to be an educational resource that combines everything the military has in order to benefit you financially in real estate education. It all needs to be combined and there needs to be a streamlined passive strategy. Like you can be as passive as active as you want.

But what if you just want, what if you want to make sure that the military stays your primary focus. but at the same time you're able to systematically effectively build wealth and passive income as you're going from duty station to duty station and that's when the course kind of started getting created and that's when I started recording lessons, I met you and you started jumping in and helping me create lessons and it was this whole crazy process where we're trying to figure out the tech part. we had to rerecord a bunch of lessons and I remember oh my gosh do you remember those days I was just like you're trying to find the motivation to like spend hours creating these like PowerPoint presentations and then creating videos out of it and then oh my gosh. 

Mike: Yeah man that was a bit of a nightmare. But I mean hey you know we figured it out. I mean there was a bunch of trial an error and trying to figure out what like audio programs work best. You introduced me to snag it and then inlay Gita tried to get to work for me the first couple times I just wouldn't, I'm like what the heck. 

Markian: Yeah I remember I did like record my screen and show you what buttons I was pressing. 

Mike: Yeah exactly that's right. 

Markian: But the cool thing was is we were on the same page and I never felt like any video we were making and cut I got kind of outlined a syllabus that I had already kind of started on. I felt like you thought I'd made a hundred percent sense and we just kept rolling video through video and eventually six months down the road we had a core 24-25 lessons and it was like alright well it's time to go live with this thing. It’s time to continue writing blog post, it's time to produce this and create an actual... here's the thing guys. For all our listeners the reality is that this is another entrepreneurial venture for us.  Active duty passive income. Is very much a start-up, it’s not an experiment anymore right. We’re rocking and rolling.

But it was very much a way for me to see if I can do something as a side hustle while in the military. Yes in addition to real estate and this isn't for everybody. But it is an incredible thing to see how when you're providing and like immense value to people how it can, when you solve a problem you provide a solution.  you create a community, that can become your own business right and then there's so many ways in real estate that you can start in ways you can create income and so that's and just active duty passive income. I had no idea. All I wanted to do is create a course and it's just spun out of control and this is what I plan on doing after I get out of the military whatever that is right. 

Mike: And it's so much fun to you know I mean it's fun you know once you get into the thick of it and then you start seeing the impacts and people start reaching back to you and letting you know hey you know thanks so much for helping me buy my first property or you know thanks so much I never thought about things like this and now it's completely changed people's you know destination in life.  It’s amazing. 

Markian: Dude it's crazy like you know guys like closing on multiple properties while out of the country or guys getting a triplex to house hack and telling us how they actually made money on the closing. I think Michael Harding, he only paid three thousand dollars at closing to buy a triplex and he was like cash flowing like after a month. Like so basically since it was a house hack he was banking all of his BAAH and he was making money. It’s just amazing like you know he didn't buy a turnkey property, he went the house hacking road.  other people started buying turn-key properties, other people they just got their gears turning we're all talking in our club like all of our members that like, it was crazy. It was awesome and then the same time our Facebook is growing. At the same time you started having this dream of creating a podcast and here you are like you know even that probably had some stumbling blocks along the road. 

Mike: My Wi-Fi and like and all audio problems that I've had but you know just recording and whatnot it's been yeah it's been interesting.  But it's been fun, it's been really fun man got to keep doing it. 

Markian: Yeah guys if you're listening do you guys realize that Mike started a podcast for us while he was on deployment with the worst internet possible, it's crazy. Hotel internet you know I think real estate has honestly correct me if I'm wrong for you but I think it opened like how finances work in America. Like it opened my eyes it's just so much more than just buying properties that cash flow right. So all of a sudden I understand taxes, all of a sudden I understand like how to create a business, all of a sudden I understand the point of like legal entities like creating LLC's and stuff. All of a sudden everything makes sense in the future even if like income aside like the future isn't scary to me because I know that like I can’t figure it out whatever it is I decide to do. Yeah I didn't and I think we've all learned so much through active duty passive income. All right I feel like I've been just... 

Mike: No it's all good man. I mean hey that's the point of this podcast right. It’s for everyone to get to know you dude and man that's awesome bro. I mean just the amazing story that you had from coming from Ukraine and then coming to America and you can get into the Naval  Academy like that's awesome man you know. I mean I think one that's Testament on your intelligence and you know everything else that you did and had in your package.  I got into the prep school which you know like no complaining at all dude. I mean I love the prep school and everyone needs backdoor sometimes. So this was what it was. 

But just you know crazy hearing your story and him where he came from and now what you're doing, it's awesome bro. it's this freaking killer. So really really motivating. I mean America is the place you know where people can come from all different walks of life and all over the world and make it and be great. So kudos to you men and I'm really really thankful that you found me. Because we are killing it dude. But tell us what's going on now. Like where are your goals pointing for your personal real estate career and real estate blessing? 

Markian: Yeah so my personal goal is to now, here's the amazing thing right is we have this group. but we also have a you know five man team at this point in ADPI and everybody else is just, I feel like I mean dude when I talk to you sometimes like I feel like holy cow it's humbling that you guys are as motivated as you are about not only real estate, but now this group and the power of the group of the website of the education of the club and our team all these elements of ADPI, all the stools of ATP I is just it is the most powerful tool I've ever had. Now with our team and our club and our group I feel like real estate has become easier.

You know we have Adam they're like she's just such an analytical brain like breaking down these amazing multi families that he's finding and that’s I want to start jumping more into. I want to now get more multi-families under me and my family is like holding company. We want to just get more and more and more. So because those are how I plan on achieving my personal financial freedom number. That’s how my parents have already you know it's already been established that's how they're going to retire is off of the passive income from them their apartment building. So as soon as my dad decides you just want to teach anymore, he can retire.

So that's pretty amazing. He’s like just like basically doubling his paycheck every month now. Well actually this year is a little rough. Cause we had to take over the property. We’re not very happy with our property management. We were going through you know some roadblocks there. But I mean for all intents and purposes like it's going to be the best investment of our lives, like this first property and so my plan is just to get more multi families. That’s kind of my gig. But I will tell you what and we talked about this before like what are the pros and cons of multifamily and single-family and I think the healthy mix of the two actually is the way to go.

Yeah and the thing is with single families you have to be very careful to not over leverage. If you're not in the kind of market where potentially, it kind of depends on what the price of your rent is. but so here's the thing with guys if you're thinking about real estate and your primary concern is the market crash then listen up okay. Because I'm going to discuss like why my mindset and why kind of what we teach will relieve you or release you of that worry. So if you buy properties that are quote-unquote kind of like affordable housing and what that means, it doesn't mean that it's like you know it doesn't mean that it's just a war zone or it's just like a bad place to live. It just means that you're not creating a luxury scenario, you are creating a good place to live that is not trying to rob anybody's bank. It is just a solid investment for you and it is a clean and safe place for people to live where everything works. You’re not just trying to have like you know gold faucets or whatever. 

Mike: The bay layers of town like this is just you know straight blue-collar average right. 

Markian: Right and so when a unit rents out between you know 500 to maybe even like to like the thousand twelve hundred dollar range, typically those areas the rent actually won't fall. Now this isn't an exact science like we'd have to dive into the history of every city or really look at where it's at. But whether it's a primary, secondary, tertiary market I can get into that as well. but for the most part if you buy right during a market turn down your rents are going to be either very stable, they might dip down a little bit or they'll actually go up and that's because all of a sudden the rental market shoots up. Like all of a sudden people there's more people that need to rent. because all of a sudden they go there how does it got foreclosed or the housing became too expensive and it just solidified that they need to continue or sorry how is it lowest became more difficult to get now and so the rental market would actually be booming.

So and since we focused on the cash flow that we get basically that that sliver off the top that stays in our pocket after we pay all expenses, since we're focused on that and we don't care about what our house is worth really. We just want to have more of these little machines making us money every single month, then a market crash shouldn't make you worry. now with single-family homes as long as you're not planning on like over leveraging and so that when the market turns down all of a sudden the price goes down and all of a sudden if you have find yourself in an area where people... actually the rents will drop down as well and all of a sudden you can't pay your mortgage and your mortgage is that high because you over leveraged.

That’s when it gets difficult. But we have a good strategy in place, you should be fine. When you're putting at least 20% down, when you're running your numbers and you're creating buffers and you're really really diving deep into the numbers that like we teach you.  Then you'll be fine and you'll probably actually do very well. oh and by the way here's the coolest thing is you'll have a network of lenders, you'll have a track record of experience and when the market turndown happens, you'll be able to convince people to give you their money to invest in more properties and grow wealth with them. Because all of a sudden that people will be turning to you during those market turn downs. Like lenders are going to need to still make Commission's off of closing on loans.

So they are going to be looking like you with experience right. So that's how I think about that. Now again back to you like the initial. But we're trying to compare single-family and multi-family. Single-family the loans are a lot easier. you just go to a bank you're like you know you do a traditional Freddie backed loan 20% down and if you're not living in it, it's probably be like five and a half percent. If you're living in it may be like three and a half to four and a half percent interest and you get this thing and it's just going to pay itself off over 30 years. There’s no like balloon, typically I mean you can get creative with every single loan.

But typically when you get around property, get a 30-year loan. It pays itself off with the tenant that's living in there and that's kind of the end of the game. Like it's very easy to property manage as long as you know it was it was it was in good shape when you got it and you're kind of staying on top of the schedule of things that needs to get done, you have a good property manager. It’s going to be fairly passive. It’s like you know as long as you establish the rules with them you're like hey like for example my property in Georgia, super passive.

Like I think they needed to do some root-rooter for the plumbing or something today, I didn't even know about it. Like he didn't bother me with it. Like at the end of the month I got my check, it was like $150 less and he just wrote me an email with the breakdowns. We had to do some root-rooter stuff like no big deal, it's like okay cool. It didn't it didn't bother me at all and I know that in 30 years that thing's going to be paid off. It’s going to appreciate a significant amount within 30 years. Because over time real estate appreciates on average about three to five percent, oh and by the way this property is in the secondary market next to Atlanta. So I know on a macro level it's going to do well in that area you know for 15 20 30 years down the road.

So it's just this little nugget that's going to pay itself off. Now with multifamily the loan is more complicated. You have to start thinking about how you want to run it as a business. You have to probably refinance or sell down the road. Like cause typically these loans have a balloon payment on them or basically they are... So for example ours in 10 years, even though it’s amortizing we are pretending that we are paying it for 30 years. The loan term, not the amortization, the loan term is 10 years. So that means at the end of those first 10 years we have to do something with it.

We have to sell it, I have to refinance it. so it behooves us that we run it very very smoothly like we run it properly to where at the end of those 10 years when we refinance,  it'll still be worth at least as much as it is worth right now and if we're smart and it should double or triple in value. But there's a little bit more going on. It is a lot, yeah it's a lot more lucrative. It’s a lot more lucrative. Because all you have to do is look at the business operations and optimize the bottom line and then all of a sudden it like explodes and value. Saying how a little change like raising rents by 10% will literally double your equity. How about that. 

Mike: It's crazy man, that's crazy. 

Markian: Yeah that's the general math. Think about that. You raise rents by 10%, like we raised rents on our 56 unit. If we were able to do that right now it would literally double our equity in it. So which means guys what does that mean? it means you're able to refinance and pull out your initial down payment and leave you know the new magical just mystical poof of money you let that stay in as your down payment and now you roll on you buy another one and that's why it's so much more lucrative to if you want to get into multifamily.  It just depends on what you're ready for and what your lifestyle is and kind of what you want down the road. because guess you know every single five ten years whatever the term is you're going to have to start from scratch with that property. It not completely buy and almost forget. It’s not as passive I would say. Would you agree? 

Mike: Yeah no I definitely agree and there are a lot of complications that come with multifamily too. So it's not something you want to just go in and dive into. You want to make sure that you do you educate yourself a little bit before you get into it. But right just like Markian said, I mean it is a very very lucrative market. If you do it right you can make a lot of money and the asset itself right is not... so the way the equity works on those assets is not like it does in residential homes. So like a three-bedroom two-bath is worth only as much as a three-bedroom two-bath with the same square footage is in that area right. But you know a 54 unit is only as worth as much money as it's bringing in just like he explains. So see you got to understand the difference there. the way the markets going to work, even if the real estate market drops 54 units; it's going to be worth the money that it's bringing in.  Because its equities based off of a completely different principle. So those good stuff. 

Markian: Yeah it's almost like its blind to what the real estate market is doing. Right the only thing that will affect it and this is something me and Adam kind of like go in to numbers. I got to take the meta, I like the macroeconomics alright man so why you know what's going to happen like with the market crash with multifamily kind of like got into a little discussion and he said that actually it's so crazy now multifamily prices based off a...  price is essentially based off of a ratio that's called a cap rate and so depending on how much it makes, there's a ratio, a multiplier and then boom you apply that and you get the price and each area has a different multiplier depending on how nice the area is and what the market is in that area.

So I'm not going to get into the right now. but I was just telling like why do you think that ratio would get bigger which would make the prices smaller like with the market crash and he explained it, here's the thing is that even our market is so crazy right now. It’s on such a high that even some of the people purchasing multi-families, it's such a complicated operation compared to single family. Even those guys are basically kind of jumping into it without fully educating themselves and they're buying them for too much. because just do they want to get into this you know lucrative real-estate game and so what happens is it like if rents drop in their area just by a little bit, because all of a sudden people lost job in that town or lost jobs in that town and then they're not able to pay the mortgage on this huge you know 50 unit.

Because they weren't educated enough, it's still a you know they're going to foreclose. Yeah so anyway I'm not saying this to scare people not at all. Like you know it's all about education. It’s all about having a good team and an education. 

Mike: Exactly and that's what we're here to do guys. I mean the ADPI's sole purpose is to you know educate and mentor you guys to get you to understand that real estate is not some scary animal right. I mean even myself you know I didn't really you know come from a big real estate background. My grandfather had a real estate business, but I didn't really know much about it and they time he would drive around you know and properties, I was on the back of car playing my Gameboy. You know like it was what it was. But yeah you know it's opened our eyes to a lot and we are passionate about sharing it with you and showing you just how simple and how successful you can be with it. So its good stuff man. It’s a lot of good stuff.

Markian: Yeah dude. let me see like I want to see if there's any like nugget for like what really... you know what I am going to touch on one little thing and then see if you have any questions for me on this is taxes. I think its hilarious how people generally speaking in America believe that okay it's not hilarious. Actually sad. Maybe we'll get him on the show someday.

But he's an absolute savant of real estate taxes and taxes in general and he actually advised, I think he was on the board for like advisory of taxes for Trump and he advises Robert Kiyosaki who's a Marine pilot and a big-time real estate investor in the author of Rich Dad Poor Dad. He broken down into essentially these four quadrants. Which is kind of how Robert Kiyosaki talks as well and he talks about how you can either be, you can either be an expert, a specialist and a business owner or an investor and I hope I'm not messing this up. But I'm just going to try to get the general concept across. Because you're an expert at something you get paid for that right and you are basically, you’re working nine to five and you're an employee.

Essentially you like us in the military except for probably the most probably, the average amount of taxes you pay across all countries in the world. Because taxes believe it or not are fairly similar everywhere. It’s about 40%. So obviously you know for us in the military we're not making much or probably in the 15 percent tax bracket as far as our W2 stuff goes. But even less than that. But if you're an expert at what you're doing here and you make as much money as you can and as that kind of a person in the financial scheme of things, you're probably going to be paying like up to or around 40% in taxes. Now especially if you consider federal and state and all the other stuff that kind of just happens.

You realize like a holy cow that's how much I'm paying. Now if you become a specialist, like if you are a highly niche down specialist in a certain field, that's when you typically actually end up you know paying more in taxes. cause also you're just making more and more money, you're very very focused and I mean that's just how, all countries kind of like focus their scheme or like how they do things right and then there's the business owner, the investor. Business owners typically probably pay about twenty percent of their taxes, probably pay about twenty percent taxes sorry on average. Then investors pay about zero. My parents [46:11 inaudible] taxes on the property they got last year. So how awesome is that. They’re not going to pay any taxes this year and I'm not going to get into all that craziness and I but I can explain that and we talked about that in our course. But here's the reason why okay. Why do people that work their butt off and they really they just specialize in their field and they're doing a fantastic job.

This is not knocking specialists and experts. Sorry sorry not at experts, employees.  That’s what the E stood for. The reason why it is structured that way is because unfortunately  the government is a social engineering machine and all they do is they're like okay depending on how much you help us do our job, which is taking care of America, bettering the infrastructure, providing better housing more jobs yada yada yada, depending on how much you as individual is helping America be better more innovative, more you know all those things that the government needs to have happen to make America greater and greater and greater, so like we're going to incentivize you.

So the better you do at helping us be better, the more we're going to incentivize you and so that's why it's structured that way. An employee he does great. He’s probably you know whatever he is a teacher or whatever. It doesn’t matter. You’re probably not like bettering the infrastructure. You’re not probably not providing jobs.  Probably you know what I mean like you're doing your 9:00 to 5:00. But if you get into the business owner realm and all of a sudden you pay less taxes, because you're creating jobs. Now if you're in the investor realm, that's when you're actually what are you investing your money in?  if you're investing your money into assets that are making America better and are you know providing jobs and are making you a better entrepreneur and getting your gears turning to be more innovative and all of a sudden everything just starts like building on each other, that's where America goes like whoa you know what here's all these opportunities and as long as you're smart and as long as you know what, you're doing you are able to completely deduct your assets and it's just like all of a sudden boom!

I mean we talked about compound interest guys and everybody is like oh yeah I want to put this amount of money away in my Roth IRA and hope that it makes five percent over forty years or whatever. Well what if you didn't have to pay any taxes? We’re just talking about 15-20-30-40% percent taxes. What if that didn't go away from you .imagine how that massive amount is compounding and we're able to roll that into more investments and all of a sudden you're compounding your cash. It’s just insane. Like taxes are what? Like honestly that's what got me excited about real estate. It’s weird I got really nerdy on it. but I spent the most time honestly on the tax portion of our course and it's not, 

I'm telling everybody right now I'm not an expert, I'm not a tax advisor, I'm not a legal specialist. I'm just a consumer and I'm giving you guys, I'm a storyteller okay. I'm telling you story how I do this. That’s what I and Mike did in our course. We told the lessons of how we did it in what makes sense and what we learned in yada yada yada.  But what we did is we framed it in a military kind of like spin and in kind of aspect. But just so you know I'm not recommending or advising anybody on this. 

Mike: Of course and then no worries and we're definitely going to get into more taxes in the podcast. Like that is a realm that I know I need to dive in and learn more about myself just so I can understand the natty gritty on how a lot of this stuff works. So as I learned we are definitely going to be diving those into. so but exactly [50:26 inaudible] awesome awesome you know explanation of the cash flow quadrant and if you guys are familiar with that, check out you know Rich Dad Poor Dad just like now Markian said I mean it's an amazing group of what [50:37 inaudible] you don't necessarily need to buy there it was like thirty thousand dollar course or something like that like don't do that. That’s a lot of money to spend. But understand the principles that they teach because there are definitely some good stuff that's out there and like I said we will dive into it on this on this podcast.

But hey man let me go ahead and take you through our bonus round. Because we're running a little bit at a time. No worries like you said we love real estate and we can go on and on for hours on this stuff. But we do want to make sure that I am giving you guys enough nugget information that you guys can compound and you just kind of take. Bonus round dude here we go. I'm taking you through just like I take everyone else through. So I got three questions for you and this will kind of help everyone get to know you a little more personal way. But what is your number one read? Like what book do you recommend for those who are out there listening to this. 

Markian: I have to give two. I have to give two. But its Rich Dad Poor Dad is one of them and here's the thing. I could give people other books that I think are amazing. But if I meet any random person on the street I still tell them Rich Dad Poor Dad. If you're listening this podcast and you have not read the book please read the book. That’s all like done. There’s nothing more so...  it will change your mindset and that's why it's my number one book. My number 1/2 book is 4-hour workweek by Tim Ferris. It is also a mindset book and mindset sounds boring. But I think mindsets are the most fun to read. Because they create an epiphany moment. Your brain shifts on its axis and all of a sudden you won't be able to sleep at night. 

Mike: That is very true man, that's very true. I'm actually glad that you gave those two. Because a hundred percent and I guess that is absolutely legit and I think that that's probably, I don't really know you know as far as why this huge technology in like business boom that we're experiencing here in the States like where that came from. But I really do think like you know this whole mindset is starting to spread. Like understanding that you know it's easy to make money out there, you got to just go ahead and do it right. So definitely make sure you check these books out guys and there will definitely be links to them in the show notes for sure. Alright man so number two, who is your biggest hero and why? 

Markian:For me it's like I keep looking at how much they did for me and how much they sacrificed every like it's just its insane. So my dad in that aspect and then my mom for just like just the amount of care and like and in teaching, home schooling I to you know being there for everything. It’s insane. So those are those are my number one heroes. 

Mike: Okay there you go. Hey no nothing wrong with that man.  I would say especially with the story that you had. I mean coming from Ukraine everything that was going on you know while you're growing up man, I believe that, that's pretty powerful. All right and then last okay so what nuggets and you've already given us a bunch of nuggets too. But if you had to condense to three nuggets right to give to those who are just getting started or who are looking to get started right, what would they be? 

Markian: Yeah my three nuggets would be everything we're talking about, it all depends on what would what you want right. Real estate isn't for everybody and if you do not want to create streams of income for yourself, honestly I would just out on. Like it is required like you need to think about it in that way. You need to think about create, like you need to be able to shift your mindset and at least do what you need to do to shift your mindset. So my nugget is if the concept of creating streams of income interests you dive full in. because this is the best way to do it and you are in the best country to do it. Period people from all over the world invest in American real estate.

Because it's just its amazing. So I would say just make a very clear decision in your head. speak with whoever you need to, your partner, your spouse or whoever do you think you're going to do this with find a partner and if you guys decide that this is for you that that creating streams of income is the way you want to go instead of saving money, I mean the reason why it's such a crucial moment cut all of a sudden you're going to stop saving money, you're going to start investing money and it is a scary shift to make unless you're mindsets right. So I would say that's my nugget is like decide. Like make it like a draw a line in the sand.

Do am I on board or not you know. I guess that's what I'm saying. It is just make the make that distinction for yourself in your head and never turn back. Because if you're going to be teetering on the line you might not, you might get a cold feet because it's not always always the pretty picture. you know another thing I was saying I kind of alluded to it is team I and we talked about this earlier like holy cow guys having you know just having Mike for example, you just be like I know any VA question, I just text you be like you dude this is true or can we do this or this guy's asking this and I'm not too good on that answer, boom you got it or if I need to aspect a certain, dude our team is incredible.

Like I just like syndications, fix and flips, burst. We do everything and I just feel like I'm a little bit of everybody now. You know you're the average of the five people that you surround yourself by right. Now there's the five of us and we're like every single one of us is crushing it and it's like it's just awesome. So the team will take you to the next level and then let's see one last thing is just buddy rushing says this a lot and I don't know if he said on your podcast. But he talks about how education in action is like your left foot in your right foot. You know you keep only walking with education, you're going to go in circles and if you keep walking with action you're going to walk in circles as well and you're probably going to hurt yourself. So you absolutely need to educate that's why we created our you know everything for military and veterans.

So this whole education, this whole website, this everything we're doing is to help you guys educate and then oh and by the way we have an entire group and community and even a mentorship club to get you to act and so if there's anything you take away is like don't do too much of one or the other like do both of at the same time. As soon as you educate yourself on something, you soon as you learn one more nugget try to put that into action. 

Mike: Amen amen well said and awesome way to end it dude. That was absolutely amazing and yeah you're right, did say that you know when I interviewed him. But it's weird because I don't think I really recognized it until you pointed it out, which is really really amazing like that left and right foot. oh man that’s that’s actually it paints such a good picture you know and it's and it's so strong and so powerful that you know I really hope that you guys listening out there take you know take heed to that you know I mean a lot of people and I feel you know myself personally, learned a lot of mistakes just from diving into something without fully understanding the scope. But it can be bad no and especially if you don't learn. So that's good Birdman. That’s great word. 

Markian: Yeah man thanks for having me on. Dude do this has been a blast. I do love going down memory lane with you. 

Mike: Yeah likewise and we're definitely going to have you on again. so this is definite the last time for sure but yeah and this has been really great and I really appreciate you taking your time especially since you know you are now father and you got a whole bunch of stuff going on you know out there.  But really really glad to get you on here and share your thoughts with the group and with our listeners. Thank you so much guys for your time and Marikian, you know I mean everyone knows how to get ahold of you right.

Markian: I'm just throughout all the options.  You can honestly just email me directly. [email protected] I will respond to every single email. Then there's also my Instagram like that's just at @makian. You know on our website guess what we have a little chat button in the bottom right corner. If you message from our website I am probably or from our Facebook I'm probably going to be the one talking to you.

I want you to talk to all people that are interested in what we're doing and if I don't respond immediately you'll probably seeing email from you soon after. One last thing guys we have a military house hacking book coming out. So get logged in, email us if you want to be a launch ambassador yeah and also just reach out if there's any questions you guys have, that's pretty much it. So I'm an open book and I'm I loved talking to everybody. 

Mike: Amen yes he is guys all right so take that face value because that's the absolute gospel truth. Markian thanks again so much for coming on the podcast. You really appreciate your time and I'll catch you later man. 

Markian: A: all right thanks dude take care.  Bye. 

Alright guys thanks so much that about wraps it up. If you have not subscribed his podcast yet make sure you. Glass thins I wasn’t to see there is a quick shout out to all those who came head and do that. All right we got a lot of awesome episode's coming up for you and you don't want to miss them. We also have a house hacking book 2.0, we are updating our book and it is launching very soon. We’ve got a lot of experience coming to the table. I'm really excited for this one I really think it's going to be a big hit and I want to be an ambassador on that.

Right if you want to get your name listed up as they a help or for books, all for our launch, we would really appreciate it contact us okay. Make sure you hit out for our Facebook and our Instagram and let us know what you guys think of what we're doing because we are here to serve you. Last thing I want to say just a quickout to all those who came to the meet up this Wednesday. It was amazing. Alright I'll be posting out some notes on the next podcast about what we learned. But that's all I've got for today Mike out.


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