U33- Privacy is a Property Right and Receivership is a Business
0:06
Everybody, this is John Jay. Thanks for joining me.
0:09
Today is June 10th and We’re going to be talking about a couple of general ideas here. I want to share some foundational information. And, I mean, this comes from conversations I’ve been having probably over the last two weeks, and some of you have asked me to talk about these things.
0:26
And it really, I think, gives you a little background as to why I make the strategies that I do, or make the decisions I do when you ask me for certain things, or you’re dealing with a certain situation.
0:36
And we’re talking about, you know, using money, or you have a claim that someone’s making against you, or you want to do some planning, and we want to protect property rights. So I want to give you some foundational understanding.
0:49
I’m gonna give you some references here. T X, I know you’d like to, probably looks, looks, and things up. But I just want to mention, I do have some free content, of course, on privacy fight. That’s the name of the channel, privacy fight is one word on YouTube, as you probably know. And we have the video membership on privacy, fight dot IO.
1:09
And the purpose of that is so that I can provide all the, the strategies and detail understandings of the things you’ll need to use while you’re using these strategies companies. Whatever we set up, I hope I don’t miss anything, So my purpose is so that that information is always available.
1:27
I intend to be around, I intend to be available for as long as you guys want to discuss these things, but in any case, The things I want to cover, kind of in two parts but really I want to talk about privacy.
1:43
And it’s not like what you think I’m not going to go into some technical details about cryptography and things like that, but privacy in general and what your attitude should be.
1:53
You should be.
1:55
You should be outraged at how you’re required to give up privacy when you’re using your money. So in any case, let me just get started with that.
2:07
Privacy, And this is what I’ve discovered over many years, looking at case law, privacy is a property, right.
2:15
It’s it actually an intangible property, right, it’s intangible.
2:20
And so, we kinda take it for granted that we would have, you know, locks on our doors. In fact, take it for granted that we even have doors, right, or wear clothing, or that we can seal are undergarments. Right, We don’t tell people what kind of underwear were wearing, usually.
2:35
And we take it for granted that we have doors in our homes or locks on doors within our own homes. We just do things like that, we want privacy, we need, it’s part of arts, just like, as part of part of our lifestyle. It’s part of art. We actually need this. It’s an emotional need, I think.
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But, why is it that?
2:53
When we’re trying to use money, which is a very important tool, it’s very important in society, it’s very important for everyone’s life, to have access and use money.
3:03
And then, we’re in a situation where we may have to use third parties to access that money and move that money around. And we’re heavily restricted.
3:11
I mean, my wife went the other day to send money somewhere, and they wanted, they wanted to know our home address, and we don’t do things like that. So we literally had to find a different way around that.
3:20
So why is it that? we want it?
3:24
We we’re willing to give complete strangers access to our financial information. I mean, when you go to the bank, think about your what you’re disclosing.
3:31
and a lot of you think, well, that’s, you know, probably those that are hearing this, don’t think this way, but people think, oh, what’s the big deal? You know, they want to stop money.
3:38
Launderers will actually, the banks, are the biggest money, Launderers, and unless you’re an actual suspect in a crime, or if convicted of a crime of financial crime, why would you be in a situation where you’re going to have to give up all your financial information from the information, you give the bank.
3:54
You’re actually weakened to a point where people that you don’t know can access your data and your information that you gave the bank even to your own doctor, to some extent.
4:04
But the bank itself, who’s: who is the bank giving your information to or who is the bank allowing?
4:13
Access to your information under the guise that it’s protecting others against money laundering and whatever that that implies that you’re a suspect in money laundering.
4:24
And I’m, I’m saying this because I want you to see this for what they’re really doing and in, it’s not, uh, innocent, OK.
4:35
They, they, OK.
4:38
Regulatory authorities, they don’t want you to have tea.
4:42
They don’t want you to be able to use money the way you want to use it, and I’m not saying you’re involved in some kind of criminal activity, but just the same, if you were. We have police protocols, we have investigative methods, strategies, and tools that can be used to prevent crimes, investigate crimes. There’s no reason to be act, to be treated like a suspect. And give up all this information, as, if you were already a suspect in a crime.
5:05
And I just, I want you to have the attitude that you should expect privacy, and that a bank Or third party, even Coinbase asking for all this information is outrageous.
5:17
Now, I understand, and I have Coinbase too. And I give up my privacy too because of a monopoly.
5:22
But I’m seeing that in the near future as much as cryptographic currency is designed to tax everything, OK. And where you have no privacy. In fact, cryptographic currency in the blockchain is gonna be used for some pretty sinister things.
5:36
That was the intent.
5:38
It was in fact, created by the banking system, OK? The whole, all the kryptos, that was created by the banking system.
5:44
Um, I think we’re going to be able to use that technology, for, what we believe, it’s four for privacy, Among other things, security, efficiency, Things like that. But, that’s up to us. We have to take it. It’s just like in the nineties, when I could not negotiate with the bank anymore, to open my account without a social security number. And I didn’t want to using the Social security number.
6:08
I have my own, you know, uh, purpose there. And so, I had to come up with a way to give. The bank wouldn’t want it, and still not use a social security number, which I did. I figured that one out, and it went from there.
6:21
So, even on my driver’s license, it’s bad enough to have to have a license because there’s a lot of information that goes into that, but the information is, what I’m at, I’m comfortable with, my home address is not on my driver’s license.
6:33
In fact, the mailbox addresses on my driver’s license, and that is not permitted under the statute, but if the government is not going to guarantee my security and safety, if my license is, let’s say, stolen with my wallet, for example, and someone can easily see where I live, then I’m not going to give my home address. Unless the government can guarantee my safety, which, even if it would, I wouldn’t trust that. So, I have a duty to protect my family and my own safety.
7:01
It’s on me to do that, and I’m going to take that action, and I don’t care if the law says I I can’t do that.
7:08
In that case, I’m going to ignore the law.
7:11
So, because it concerns my well-being and those who depend on me, so many case, I think we should have an attitude and expect that we should have financial privacy and that day is coming. I think we’re already seeing it too by the way. And I know there’s going to be lots of checkpoints with the Blockchain, the coins, and the wallets and all that There’s gonna be lots of checkpoints.
7:32
We’re going to be fine!
7:35
Remember, identifying yourself as an owner of an asset doesn’t create a tax liability.
7:40
There’s all kinds of, I mean, I think the strategies I’ve introduced to most of you are are sufficient in whatever environment they’re going to create.
7:48
I’m not so concerned about that because, I mean, the same tools that I introduced to people.
7:53
These are the things that are, I don’t know, the whole system is based upon.
7:57
Because there are people that write the laws.
8:00
And adopt policies and impose certain measures on others that use the strategies that I show people, but they don’t want us to know about them.
8:08
And so, here we are.
8:11
But anyways, I had spoken last time a little bit about proprietary information. So just keep this in mind, It’s going to come up a little bit.
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You all have companies, usually, or a trust organization, or if not, you should, because documents that are in the custody of the company, or someone that’s associated with the company can be labeled and identified as confidential.
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Or the proprietary information are our property of the company.
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And that it ironically, that is respected in the legal community is corrupt as it may be. So, just keep that in mind. Where you get into the real-world with documentation and things like that.
8:48
It is, you do have protections under proprietary data, provisions, and also, data that’s considered confidential, and there is a thing called electronic electronic data, OK, electronic electronically stored information, is what they call it ESI.
9:07
So, we can deal with that, I know I mentioned it in the previous video, and, of course, um, I think you should deliberately.
9:15
Here’s another reason why I’m doing this, this discussion here, this, I’m explaining this is because people’s attitude, generally, I’m not saying it’s wrong, but their attitude generally is that they feel like they’re getting away with something, or they feel like they have to defend themselves.
9:34
If they want privacy, and I believe you should have the opposite attitude, your attitude should be, how dare you ask me for that.
9:41
That’s what I do when I go to the doctor. I mean, I can do with the doctor, I can’t do with the bag so much.
9:45
But when it comes to the doctor, no, My chiropractor.
9:50
I don’t go to a regular family doctor, but my chiropractor and whatever, they asked me for these things and that was way back early and I always explain. I always ask them, OK, so what’s your liability and this sort of thing to collect my data. So, there’s a conversation about how you maintain privacy about your records, and it’s not a big deal, I could just make up a number, right?
10:08
If they want my Social Security number, I can just make up a number that that’s complying and I want people to realize that I have a refuse to comply, and that they’re going to have to understand the law when they’re asking me for these things.
10:18
Now, when I go to the bank, of course the, the law doesn’t apply, OK? Because the banks as well as our policies eat. So you have to make a choice. Do I want to have the service?
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is there an alternative?
10:30
It’s coming, OK.
10:32
So I’m kind of hanging in there like you guys but um, expected in the near future.
10:37
Cryptography is going to give you the privacy you want Cryptography and that you should expect and demand it.
10:46
OK, the earliest at the earliest time you can now, um, this is a little bit beyond the privacy aspect, but I wanted to have this explanation about someone someone was talking to me the other day about filing a bankruptcy and in a bankruptcy proceeding.
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You’re use of money and property is you give up your control really or it’s always under scrutiny, OK, so you’re you’re you’re kind of bound up you can’t do anything new.
11:17
If you do, you could be in mmm hmm contempt of court, you can violate some of your statements you made under oath and really bankruptcy is a business of the trustee.
11:28
So let me just explain generally, and here’s another use of this information, just going about doing the things you’re gonna do. You’ll probably have a lot of money, and this, this will come by you. This information will come by, OK, I don’t know if you’re gonna go to another country or whatever, but this is similar in most countries. So I’m just going to talk about bankruptcy in the United States.
11:49
And so bankruptcy just means, basically, you can’t pay your creditors. And so there’s another term for that.
11:55
It’s insolvency, being insolvent.
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Now in the United States.
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I just conclude that after seeing it for so long, bankruptcy is a brand.
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It’s not a solution. It’s not a real good legal strategy. It’s a brand.
12:13
It’s a business and people are exploited by it. I know people have succeeded in getting what they want. Like, for example, a Chapter seven.
12:22
And that’s just an expensive way not to pay your debts. You could just simply not pay your debts.
12:26
I mean, Chapter seven is the same. Whether or not you file or not, you know, file a chapter seven, or don’t.
12:31
If you qualify for chapter seven, you’re just going to pay to get a judgement when if you qualify for it, you don’t need to follow chapter seven, I’m sure you’ve heard me talk about that, but Insolvency can be established by a court. You don’t have to file bankruptcy in the US. District court in the bankruptcy court you can actually petition for insolvency and insolvency proceedings in your state court.
12:53
There’s actually forms. You can look up on the Internet and I’m not saying go off and do that. I’m just saying, this is what bankruptcy really is.
12:59
It is a situation where a person who has debt obligations can’t pay them anymore and needs to have a third party who’s supposed to be neutral.
13:09
Manage the liquidation of that person’s assets, our ability to pay and settle debts in some sort of priority sequence.
13:20
OK, and there Those are set up by rules in the Court So bankruptcy, you can see that this is done through what’s known as a re-organization plan.
13:27
Now sometimes it’s useful I know you’ve heard the story about how Donald Trump uses bankruptcy.
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And really what he does is this picture. This this guy is in his office. He’s become a billionaire probably in the late nineties.
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And he’s probably bored, He’s got everybody doing everything, you know, that you expect. But he has, he’s looking around at some people that are entrepreneurs, like he is, and he’s saying they’re struggling, and they’re getting beat up by the banks.
13:52
And so what he’ll do is, he’ll say, set himself, hey, that looks like a pretty good opportunity. I’m asleep. I can buy into it and he’ll buy into a company and by 51%, OK.
14:01
So, let’s say you’ve got a team of people, or an entrepreneur or something, and he’s running a company and he’s getting kinda beta because he doesn’t have, he doesn’t have the weight, right? Doesn’t have the experience. So, so, Trump will buy into it.
14:11
And then he will try to negotiate his way out.
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And, of course, the bankers don’t like that and they’re going to usually it’s with the bank, OK, so.
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So, what he’ll do is use the bankruptcy court to negotiate or force and negotiation or term he wants with a creditor to make it fair, or to make the thing profitable. And then, he’ll He’ll, take his He’ll do, is exit strategy at by himself out or whatever he does.
14:36
Or he might own, it depends on how he wants to do it, but he’ll he’ll use it just as leverage to negotiate a deal. So in that sense, if you understand a couple of things or you have a good team, you can do things like that. I mean that probably is expensive to do that. I’m just saying it’s a lot more than what people think.
14:52
So it’s important to understand that you use the court system to administer an insolvency proceeding and there’s a trustee. And the way people are exploited that I’ve seen as they file bankruptcy in the district court and they thought all these disclosures and things like that. Then the trustee really makes a lot of money. I mean the trustee makes a lot of money out of what is liquidated.
15:14
It’s really, it’s exploiting the person. Who is the petitioner?
15:18
And this is why I don’t recommend bankruptcy, because it’s really just a payment plan and you can do this yourself. You don’t need bankruptcy. Here’s what people go to bankruptcy for it.
15:27
They go to they do an insolvency petition.
15:29
Not usually but they do a bankruptcy petition because the court gives you an injunction that blocks everybody from taking your stuff.
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This is known as a 100 day Automatic stay, this is how it is in the US. Bankruptcy Court.
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So the 100 Day Automatic Stay is an injunction. It’s a standing injunction order from the Court.
15:52
That when you file you automatically, the moment you file, everybody has to stop taking your stuff anywhere in the world. That’s what the United States is giving you. So you’re paying for that.
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This is the this is the quid pro quo.
16:05
Now, and this is what brought this up.
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I mean, I want to explain a little bit to you. So this is the kind of system wherein OK, and I know you guys are excited about Kryptos.
16:16
In 19 33, I’m sure you’ve heard lots of stories about this. But you can just go look this up yourself. I don’t know. What if it’s a re-organization or it’s a new bankruptcy. I mean, there’s lots of stories on this. I don’t, I don’t even want to know all the actual details, like, just get the general idea Boma tell you.
16:34
In 19 33, Franklin Roosevelt, who was the president at that time, had to establish, let’s call it a new bankruptcy proceeding, had to re-organize whatever was going on financially with the United States. And I don’t know if you’ve heard this before.
16:47
If you remember, back in your days in school when you may have been studying about FDR and the new deal, OK?
16:55
The New Deal, It was sold to consumers as a chicken in every pot. Everyone’s going to be prosperous.
17:02
If you go along with this new deal, and the New Deal was nothing but a bailout plan for the bankers, and it was a re-organization for the United States, which is a business. It’s not. It’s not a nation.
17:13
And so you have to ask yourself, how am the heck does, what’s called the country?
17:19
How the heck does the United States, presumably a country, go into bankruptcy?
17:24
Does it file bankruptcy petition in the United States? I just heard, I just heard someone tell me the other day that that actually happened.
17:30
I don’t know that I don’t believe that that’s what actually happened, but in any case, a country, presumably a country doesn’t file a bankruptcy and its own agency.
17:41
It’s the country.
17:42
It has to write a law to administer an insolvency proceeding, which we’ve been in since every one of us listening to this has been alive.
17:52
We’ve we’ve participated in an economy that’s in receivership, receiverships, or insolvency and insolvency proceeding is where you appoint a trustee or a corporate trustee board of trustees.
18:06
And you conduct a receivership proceeding proceeding to liquidate and settle the debts as fairly as possible OK?
18:13
So the United States went into a new receivership period and I believe there are about 70 years each for for our country for the United States.
18:23
And so in 19 33 a new law was written and it was it was codified in Title five of the United States Code. It was known as the Administrative Procedures Act.
18:35
And this is what’s led to all the government agencies.
18:39
We call the three letter friends, they’re not really friends, but that three letter agencies, OK, That’s where they come out, of, which is almost like your fourth branch of government.
18:47
Now, you have your Judicial branch, Legislative, and Executive branch, but then you have your Administrative law branch, OK?
18:53
And so the Administrative Law: incorporate some aspects of all three branches of government into, and on its own preliminary process, OK, before you get to the court. There’s an administrative process, that’s why. if you see the government, you actually have to go through an administrative process, before you actually go to court. You have to serve notice. You have to fill out forms, or things you have to do to see the government, because we have this Administrative Procedures Act.
19:21
Now, I also believe that when you saw the bombing of the World Trade Center, I believe that part of the thing that came out of that was the Patriot Act, and, you know, the NDA, all these things.
19:30
But I believe that part of that was, too, give these all these agencies that that had blossomed from the last 70 years or so, give them access to all the other agencies’ information about people.
19:43
OK, you can check that out. There’s a lot of things that happened with that with the bombing.
19:47
But, um, so we have the America or the, the Administrative Procedures Act. Now, what really struck me is, my partner was introducing me to this back in the nineties, and he was showing me, this is back when we used to have to, you know, get the law books and the statutes and sit at a desk and actually page through it. And he page over to section five.
20:09
I’m sorry. It’s Title five of the United States Code, Section 502 A.
20:13
Now, this may sound off topic, and I’m sorry if it does, I think this understanding, we’ll help you make decisions, and help you understand why I do the things I do.
20:26
So hopefully that said, yeah, in the very first title page, OK, and Title five, United States Code, we pulled that. We pulled the actual volume off the shelf, OK. And we page through to Section 5 5 to lowercase a 5 5 2, 8.
20:41
And it There was a big banner page on there, and it said, In big letters, government re-organization plan.
20:50
Now I must say that again.
20:53
So in Title five of the United States Code, you can look this up, it’s online, Section 502 A.
21:00
This is the first page, OK, when you when you start reading this, you will see you might see this online I don’t know. But the actual paper book has this.
21:06
It says in bold letters, government re-organization plan.
21:11
So the re-organization plan was a plan to create all these administrative agencies to administer the bankruptcy or the receivership of the United States, and it’s still like that it’s still insolvent, as you can tell.
21:23
So anyways, this is where we are this is when you bring in cryptographic currency. And as you as you see like in El Salvador, OK, the government adopted a law that says, Now Bitcoin is accepted.
21:35
As legal tender.
21:37
that means it’s taxable.
21:40
In case you guys are wondering, hey, John, is it going to be taxable Sunday?
21:43
Yes, it will be if the government says, it is now legal tender And this is what I told you years ago.
21:50
When you hear that a law is passed that says, a coin of some kind or wherever monetary unit is now legal tender for all debts, public and private, it just takes the same status as the current currency, the dollar, or whatever, OK?
22:04
So, yeah, and that day will come.
22:07
And that’s why I’m, I’m explain this, you have to take your privacy, you have to take your financial freedom, you cannot be afraid and succumb to this because they will run you over.
22:18
So, what does that mean? I don’t know.
22:19
I mean, I explain to someone today.
22:22
Um, he was asking about bidens tax on a state’s some huge amount of money or something. I don’t know what they’re doing, but I don’t care about that stuff, because you have a choice, not to put stuff in your estate.
22:36
So, this is what I’m talking about.
22:38
You have to make that choice.
22:40
I don’t care what they do. I really don’t care what their laws are.
22:43
Those laws, they don’t commit crimes in good shape.
22:46
So, yeah, what they want to do is, you know, they want to limit your access. They want to limit your privacy.
22:51
So, when you go into bankruptcy, when you’re in salva, when you’re in receivership, you don’t have access to your money really.
22:56
I mean, if you do something during, during the time of the re-organization plan, while it’s being administered, if you do something with money to make more money, the trustee will actually have to know about it. You actually have to tell them that if you don’t, that’s actually a crime.
23:10
And he or she will have to go in modify that re-organization plan, because it’s the trustee’s duty to pay the creditors as much as possible in the priority that they have. So, you’re really limited.
23:21
So, um, let’s see here.
23:26
I’ll just, I’m gonna give you a couple of principles to follow, and I’m gonna give you a reference, and, yeah, let’s do some questions today and hopefully, this wasn’t too boring, and maybe we can have some questions on topic here. I don’t mind answering a few that are off slightly.
23:41
I’ve done this work for about maybe 28 years, and it’s probably exceeded 30,000 individuals with debt situations of some kind.
23:52
Now, some people have small percent, some people had high net worth. Most people did not.
23:58
Most people, I was working with our consumers.
24:02
A group over the years has been small businesses. I’ve never worked with a small business More than that had more than $5 million a year gross income, OK.
24:14
But I did and all those years in almost every conversation I had with each client We discussed the possibility of doing a bankruptcy and everyone I recommended not to file a bankruptcy.
24:27
Now this there’s an exception to that. I did use bankruptcy.
24:30
I had people do that to shut down foreclosure Scenarios to keep them in their homes longer So we could do certain things but we never filed re-organizations plans. We just we use it to jam up the foreclosure process, so.
24:45
In all those cases, and all those situations, And in, each, each one of those, I mean, each client may have had 3 to 5 or 8 different situations he was working with, and even then, it didn’t make sense, in my opinion to use bankruptcy now.
24:58
I talked with someone the other day and, and as I got all the detail on her situation, I discovered that her attorney who sold her the bankruptcy idea could have easily solved her problem because of the type of debt she had, the type of debts, she has several accounts. With the Consumer Credit Protection Act.
25:18
We have a law here in the States that basically says, creditors are very, or severely limited to collecting.
25:24
And this allows me to restructure my clients cash flow and property rights in a way that takes advantage of the Consumer Credit Protection Act.
25:33
And and that law is so friendly. it actually blocks everybody from taking my client’s property in his cash flow.
25:38
So if I can do that, why don’t we need to file bankruptcy because bankruptcy, I’m gonna pay money Now in all these years, 28 years or so.
25:47
I did recommend a bankruptcy to one person. And this was an orthodontist. He was doing really well who’s making a lot of money? He had a very good practice and actually, he did a fantastic job.
25:59
Uh, acquiring debt, too.
26:02
Finance his operation. Now, this is an example where a person who has a really smart, and he had lots of cash flow, instead of using his own cash flow, to finance his operation, he used it to, to manage the operation, any isolated the financing to lenders. Now, his mistake was, he went to people that he knew his friends family and used their money as loans, and even even combined some business loans with personal loans to his family friends. And so, that was so it was so intertwined.
26:29
I didn’t want to get into it with him, and I didn’t want to disrupt what he was doing, and I just suggested to him that he go to Chapter 11 bankruptcy, and still operate his business. No problem, and put that onus on the trustee. In Chapter 11, and I explained to him that he would pay a premium, let’s call it.
26:46
He would be facing cost, OK? high cost.
26:52
The outrageous costs OK to do this, but I said you’re quite successful. What I observed was and it makes sense to pay to have someone handle that who does handle that and deal to creditors and get your family out of those debts. And, and rightly so, you should be having debt in the company name, and that’s the thing I suggest I said after you get through a an insolvency proceeding you want to start building up credit and you can do this now.
27:17
Actually I told them you can start building up credit in your business and isolate that from any personal debts or family relationships. You don’t want to you want to do that with a business of that kind. So in any case that was the only time in the end that those years that I recommended it now.
27:32
Um yeah, that was only time.
27:37
I just wanna mention that, now, at the end of this, I’m almost done here, at the end of this. I’m gonna explain, I have an interesting interview, I wanted to bring to you.
27:45
It is going to be a live stream, like we’re doing now, and I believe we’re going to take questions, and it is going to be about placing large amounts of money in a re allocation plan, and who are going to be talking to.
28:01
I’m bringing on somebody who can explain about forming limited partnerships in, let’s call it mergers and acquisitions, OK.
28:09
So this person deals with people with capital that they need to invest in other Endeavors, and so there are going to be probably four categories that we’re going to talk about. And we can do several of these calls.
28:22
I’m not going to publish this interview Like I have been on YouTube or on on the ace of coins List. What I’m going to do is make it private, and I’m gonna keep it in the for members only, but I will, anyone, who’s on this list. You can listen to the interview.
28:36
So what we’re going to talk about is how to place investments.
28:41
And I told her, the woman who’s setting this up, I told her, the people I’m working with are going to be anywhere from $2 million to $100 million somewhere in that range that they want to place.
28:52
And so that’s gonna give us a wide swath to deal with, and so we’re looking at real assets, private credit, real estate, and private equity, OK, as your means of putting place in capital when you re-allocate.
29:06
So we can do a series of those, and it’ll be two people with me and the other person. And basically, it’s going to be my questions, and you guys can ask questions, So I just want to give you a heads up on that. But, anyways, here are a couple of principles I’m going to share with you.
29:18
Then, I’m going to give you a couple of references. And then I’d like to do some questions. I know, I think last time, we just did a 45 minute call and I didn’t do questions, so I think I’m pretty good today. So about three more minutes.
29:29
The general rules I follow are, I don’t, I don’t recommend borrowing money just because you don’t have enough money. That’s not the time to borrow money.
29:37
You borrow money when you want to manage risk, So just keep that in mind.
29:41
Um, don’t pay off consumer debt early. I know I’ve said this many times, so I just want to say it again, I’ll probably say it again more. Instead of paying consumer debt off early use.
29:51
The method of set off, like I explained a set off, basically, is where you have a liability that you want to pay off and I say don’t do that.
29:59
Instead.
30:01
Add an asset, or let’s call it cash flow of some kind. Add that to the Balance Sheet with the liability. So let’s say your house is on the balance sheet, right. And for most people, they just leave their house on the balance sheet. And I’m not saying you guys have a balance sheet for your house, Most people don’t.
30:15
But if you did, you’d have a balance sheet for your house, showing a negative cash flow, OK? Negative, whatever.
30:21
Equity is another story.
30:22
But, anyways, you would go and find some cash flow. That offsets the liability of the house and then not paid off early. Use the cash flow to set off the liability and tour it balances, OK?
30:36
You don’t need to, you don’t need to really make a lot of money just so enough, so it balances OK, and that way, it’s effectively paid off.
30:43
What really happen, though, is something else is paying your mortgage for you, and you have to work for that, OK, so that’s the idea there.
30:49
That’s why I say, don’t pay off consumer debt. Use a set up instead.
30:54
Um, don’t make financial decisions solely for tax benefits.
30:59
I know I’ve spoken about that many times.
31:01
Again, don’t make financial decisions based solely on your personal credit.
31:08
Now, sometimes, it helps to have personal credit in a deal.
31:12
I would suggest that should be temporary. That should be your plan.
31:15
So, but don’t be making decisions based upon your personal credit decisions. I’m say, financial decisions. This decision should be on how it affects your net worth. And we’ll get to that in just a second. Again, this is more important.
31:29
Don’t make financial decisions based upon your home equity.
31:33
Because really equity, your home equity equity is kind of a fiction.
31:38
You might want to, based credit worthiness, are financial decisions based upon a business’s ability to borrow, that’s a little bit different, OK?
31:47
Now, this is a, goes to a conversation I have with my at my dentist and I would say, do make financial decisions based upon what you calculate to be return on capital reasonably, OK.
32:00
You put money in, you get return of principal, then, what’s your rate of return To get into internal rates of return?
32:07
You can look this up, there’s internal rates of return, net present value. I look at things like that.
32:12
So if I have a lump sum of cash, and I put that into a house to pay off the mortgage, the net present value, I don’t even know what the number is. Did I give you the numbers?
32:22
No, I’m just going to tell you that your net present value on that, cash, whatever you want to pay off the mortgage, is negative.
32:28
Who wants a negative use?
32:31
I was capital, You shop all day long to get low interest rates. You look around for investments that have a certain yield. But yet, you want to go pay off your mortgage early.
32:39
You’re deliberately causing a negative cash flow with your cash, that already has a negative cash flow, because, I mean, in today’s economy, if you have cash, you’re just sitting there, you’re losing money every minute, they’re sitting there, right? You gotta put it into practice, So, just look at it that way. The capitalization rate, gross rent, things like that, Look at those numbers, and that’s how you make financial decisions. I also do with friends. I mean, in partners, I just asked their opinion on things like that, So.
33:07
two references, if I haven’t explained this till, I know some of you I have, we’ve discussed this, but there’s a book you want to read now, you can get this for free on the Internet. This is the first thing I do. I look for the PDF version of the book, and the older it is, the more chance there is, of it, being Free on the Internet.
33:22
And in fact, if you like audio books, there’s actually software that will read the book to you.
33:27
So this one I want to introduce you to is the richest man in Babylon.
33:33
Quite entertaining.
33:34
It’s yeah. You’ll see for yourself richest man in Babylon. good stuff in there.
33:40
And also that really opened my eyes to a lot of things about millionaires, what’s called a millionaire mind, OK? You’d be surprised at how millionaire’s do things.
33:51
It’s totally different than how consumers do things. So, if you just read that book.
33:56
This gentleman, I think he interviewed about almost 500 millionaires.
34:00
And he asked them questions about what kinds of a clothing they buy and why, and why do they pay what they pay.
34:07
And where do they shop, and what do they think about when they buy a house, and what do they think about debt and things like that. It’s really, it’s really telling.
34:15
So, um, I’m going to restate what we, just, what I was explaining, OK, so I’m going to have someone come on with this on our zoom calls, and we’re going to talk about how to invest or place millions of dollars in types of assets, and now the person I’m bringing on does that.
34:34
It’s, let’s call it the person, I’m mergers and acquisitions profession now. I don’t know who that is. I don’t know the person’s name. I just know that’s what he or she is going to do. That’s going to be the first one, and we’ll probably have that person on again. I’m gonna find some more so we can have a wide range of information about what’s out there.
34:50
So the big trick here is we can talk about all this, but we still have this one problem, I don’t know how to answer this one.
34:58
What’s going to be around in five years and three years? I don’t know.
35:02
We can speculate, so we’ll see, I’m gonna make this list again, so we’re talking about, it’s going to be probably this coming Thursday, maybe next Thursday, I hope to do it this month.
35:13
That’s my goal. We’re going to talk about how to place millions of dollars into real assets.
35:19
Real estate.
35:21
Private equity, private credit.
35:23
I don’t know what private credit is, by the way. I don’t get into that but we’re going to learn, OK. I’m like you guys Also joint ventures.
35:31
This is why I’ve made a lot of money over the years with joint ventures.
35:34
And something else that I just mentioned once in a while, but I think you guys want to check out endowment funds, E, and D O W M E N T.
35:43
Endowment, funds, Endowment funds have been used. They’re profitable. You can actually make make money with them.
35:51
Lots of tax benefits with them.
35:53
And they have been used to build things in our society and also destroy things in our society, in our current system of schooling, OK. Namely, the university system has been destroyed by endowment funds.
36:05
It’s been destroyed by the people you would suspect who would do that.
36:08
OK, like the Rockefellers and so forth. But with that example, bad example, I think we can turn that around.
36:14
And we can create our own endowment funds, especially with new technology and smart contracts, OK.
36:19
And we can create endowment funds that would work as an asset for our families for generations, and it’s a great way to put place, place or put Generational. Well.
36:30
OK, in addition to other methods, this is a great thing to make social change, adhere to certain moral principles, and things you want to happen, when you’re not here, maybe to benefit your family. So in any case, I’m going to stop there, because it has stopped myself.
36:43
I hope that was useful.
36:45
And let me just, um, I see Jeff Heer Gushed. Yep, you’re fast. Alright, so yeah, let’s do some questions here. I’m gonna stop talking.
36:52
Calling Jeff here. All right.
36:54
Hey, Jeff.
36:57
Wow, Yeah, it’s, you. OK, I might be throwing your topic swerve here.
37:04
But I’m basically brand new to the Privacy Fight club, and I don’t know where to begin or how to start. Really changing my life, you know?
37:19
This all kind of started for me with covert last year, OK? I’m a concert touring sound engineer.
37:27
OK, and you know, all the concert’s shut off and yeah, I’ve literally turned my life around from doing that thing exclusively to doing anything I can to try and find cash and pay the price, right.
37:44
And that also gave me a blessing.
37:48
A couple of years ago, just started throwing $50 a week into Bitcoin, and all of a sudden that went 10 X. And so I joined the bench team and have started trying to take, that little nest egg and grow and in something, really special.
38:06
But, you know, my problem today is like, I have probably 8, nine different companies, maybe 12 that are gonna send me 10 99, not from crypto, but just from labor. Right, I don’t have an LLC Or anything. I don’t know what to do. OK, well, Interesting. Yeah, well, That’s, it’s, it’s, it woke you up a bit, and that’s what’s happening. A lot of people so that, there’s a bit of a transition, It’s, it is stressful.
38:32
You can manage 10 99 easily, just by setting up a company, you can register a limited liability company and then what you would do is just give a W nine to the company that’s sending 1099, So as of this date during the year, you’re on the hook for the taxes that Tax treatment you, you’re stuck there, but going forward, you know that will diminish so into next year if you do this this year, you can have a completely different tax treatment.
38:58
OK, yeah.
38:59
Well, I think I’m safe for this year.
39:01
Last year is already in the bag question about that. I, I did sign the yes, I bought cryptocurrency box.
39:09
Yeah.
39:10
Yeah, and I have to do a follow up video, because I wasn’t very clear. My first one, I have a 6.5 minute video, and I put some notes here, you guys, if you wanna check it out, but I wanted to be clear on this, because the IRS says A purchase is when someone takes his own coins and buys other coins from someone else. Right?
39:26
All right, oh, that was for that, We say yes, on the 10, 40 Other than That, I don’t believe, we say, Yes, I think it’s no and then we still have the issue of, And I’ll do the video on this, but, yeah, that I wouldn’t be so concerned about, it’s really, about when you’re going to take profits.
39:39
Yeah, I’m not.
39:40
Yeah, You can just bind your name and do what you want.
39:44
So I got my account set up with Caleb and Brown and know at some point I want to get an LLC.
39:50
The trust, whatever I need to set up so that you know, maybe next year early, I can take off the first slice a little bit of profits and try to start solidifying a foundation for my life financially going forward. Right, I’ve got a, you know, a mortgage and credit card debt and regular stuffs, like everybody. And I’ve heard you say things like, you know, don’t pay off your house that stupid. You just explained why, you know, it’s a negative cash flow position.
40:15
So you know I’m gonna have to learn how to get from here to there.
40:21
Somehow over the next year it feels like, which is a firehose. Yeah, it is. I’ve heard that analogy many times. I’ll just go to a bug in here. I’m gonna put a bug in your ear, please, if I’m in your situation.
40:33
My first thought is, Hmm, what asset can I acquire or what kind of cashflow can I create, from my knowledge? Things I already know?
40:41
People, I know, Phone calls, I can make.
40:44
You’d be surprised, and what does that mean? Cash flow?
40:46
Well, Look at somebody doing a thing, and have an idea, You just have to have the idea and see if you can work out a deal with them so that you can both make money mm. I know that’s really generic, but that’s what you’re looking for in addition to doing what you’re doing.
41:02
I would I would look for that.
41:03
In fact, some of those nine People you’re working with, maybe that type of organization I don’t know. Yeah.
41:10
There and I might ask.
41:12
My thinking also has to do that without it’s becoming a second job.
41:18
Right, and it can be done. So, and yes.
41:21
I mean, you’ve already thought of that.
41:22
So there’s a company in Oregon, which is close to where I live. That has just hired me this week, as a matter of fact, to do a series of events here in the summer for them.
41:35
But Dave’s privately told me that they’re not gonna continue doing business beyond this year. They’re gonna finish out this summer to try and help their clients of decades past and are gonna somehow liquidator get out of the business.
41:49
So that’s absolutely, OK, an opportunity Then There may be an opportunity there, just be aware of like any agreements you have with non-compete and stuff like that, but if they’re out of business, well, then, And you have an insider type knowledge, mm. Yeah, I don’t know what kind of debt they hold them in. I know that they bought some equipment a couple of years ago, that’s, I’m sure, a big piece of their debt. I don’t know how That would work out. So, you know, me, buying the company, doesn’t come with a company, should I put a different company, then to separate the debt and the assets, and all that kinda stuff, you know?
42:24
That’s negotiable, and debt is up as a way to manage risk.
42:27
It’s, it’s a bad thing, yeah, especially a company, so yeah, but certainly, we can certainly talk about that. But yeah, you get the idea. Just hang in there and there’s, yeah, there’s a lot of information and you really don’t have to do anything. It’s just let your brain absorb some of it.
42:41
It’s taken me years to No, no, it sounds simple.
42:45
Like, I’m saying, hey, guys, I just did this thing No, taken many years to thought. it’d be like talking to me. You know, like, how do you make Janet Jackson’s voice on that? good for 30,000 people. Yeah, sure.
42:56
Exactly, right exactly, Yeah, that myself I know how to do that, especially when she’s 40 and stuff. So is my my I’m supposing is this correct? I can get an LLC started let’s say I’m going to do Wyoming because I hear they’re doing all kinds of cool crypto allows there.
43:17
And I know that they have, um, anonymous filing possible, and that kind of stuff. So, I set up an LLC in Wyoming, and I just start putting any income that I have, coming in into that bank account that I’m gonna open for that LLC.
43:33
You could do that way. You could say, yeah, then.
43:36
the laws are good, they’re stuck, you’d have to go through litigation to get the benefits of the laws, and hopefully you won’t need it right now. Right.
43:45
And then next year, when I’m ready to take Kryptos, those could also come, because let’s just say I’m gonna keep that LLC just for income.
43:53
And then I’ll start a new LLC maybe in the state where I spend most of my time and have that company maybe like charge backs, the company was all the income on my monthly expenses. And Francis: Sure.
44:07
Yeah. Yeah, There’s all kinds of ways to use them. Exactly. My first effort is to try to remove the thing that my client cares about out of his estate.
44:16
Because if I can do that, then he, if he lands, he follows a couple of principles.
44:20
If he has a problem like a claim someone sues them or something like that, years down the road, they won’t reach into that company, It’ll be protected.
44:27
And I really, it’s funny because people call me and they have all these debt situations, and when I’m done working with them within the year, their debt situation looks even worse. But they’re actually more solvent than when they came to me. It’s just on paper. They look like they’re totally washed out. Yeah, you got read on one side, and on the other side, they might both get bigger.
44:47
That doesn’t mean that’s worst.
44:48
Yeah, so, I remove everything of value to a thing that they control, and nobody can touch it? Well, that’s my intention, as well. I haven’t taken the trust us at the Bitcoin Academy. But, I have my primary residence or vacation home.
45:04
And the property next door to the vacation home has just become available, and so I’m hoping I can take crypto profits next year and by that extra piece of property, and at that point, have a trust set up where I could move all of my real estate into one or separate trusts for each piece of real estate agent.
45:22
Makes sense?
45:23
Good plan, right?
45:25
Yeah, wow, OK. I really appreciate that. Thanks for the questions. All right. All right, go to the next one here.
45:32
I’ll see AKA, John, can, I have a question.
45:38
So, you’ve helped us set up our LLC, and I’m understanding that we’re not going to file, and we’re also wanting to buy a home, and one of the things that my husband and I realized, is as we’re both self-employed and as we’re talking to mortgage brokers?
45:57
Maybe?
45:59
Yes, OK.
46:02
I’ll just keep talking. Let me know if you can’t hear me. And so one of the things we’re finding is that they’re wanting our, you know, a self-employed people, they’re wanting our tax returns for the last couple of years, numbers.
46:12
And so, we are wondering, if we were to buy for next year, and we were to transition everything into this new LLC and not file, then how does that work? I feel like we’re missing something, or your company doesn’t file, but you would, you would just claim whatever personal use of the money you’re making.
46:31
So, if the company makes $2 million, you probably only need $8000 to pay your living expenses, and that would be on your 10 40.
46:40
I see, OK?
46:42
Just like you can’t get a job somewhere, and the company is paying your salary, who cares what the company does?
46:47
The bank only cares what you do, OK?
46:50
But what we would pay ourselves would be pretty low, and so then what we’d be qualified for the mortgage would be pretty low, then. Right, OK.
47:02
You still have to show income. There has to be regular income, and the credit goes with that. So, the banks really want to see money in your name and so I’ve had it, I don’t do traditional mortgages when I do things. I negotiate other ways, but I get a balance sheet on my company, and I have different ones, I use, But I, if I take cash flow from a company, I will just get a bank statement like the last three bank statements from my company. And then, I will get an accounting statement on that and use that in the lending process.
47:32
And they’ll always ask, Well, how, how is this your money? And I have to show some connection, OK? So there is one way to do it. So I’m not exactly sure you’re gonna have to ask, maybe, your broker, or whoever you’re working with, what they wanna see. I don’t know that you have to pay yourself a lot more money to get qualified.
47:50
I wouldn’t suggest do that just to get qualified.
47:52
There’s got to be some like, for example, you could do like this.
47:56
Instead of paying yourself the money, what you could do is take that same money and make it a larger down payment, and yeah, I have some debt on the property.
48:05
Yeah.
48:05
So there’s all kinds of ways to work it OK.
48:10
All right. Thank you, OK.
48:14
Right, and then there’s Danyelle.
48:18
Hey, John. How are you? Can you hear me? Yes. Excellent. All right. First off. Thank you for everything you’ve done.
48:25
I’ve been here for for a couple months, and I’ve watched your basic videos over and over and over, and all your privacy and YouTube, and I highly recommend everyone to do it. It’s phenomenal. Alright. So my quick questions to, um, um, I’m trying to work in an LLC, I’m still a little some trepidation of jumping right into it and doing it myself, before we have a 45 minute meeting in August. Will that meeting, will that be enough time 45 minutes for you to hold my hand and go through it, or, do I need to do a lot of work before, going to do a series of calls when people schedule with me, I can make it a series of calls, and sometimes I can, I can go for an hour and a half, it depends on my schedule. But we’ll make the time whatever’s needed to get you underway.
49:07
Excellent. Thank you. Any other question?
49:10
three quick points, first one registered agent, is that my name, or do I make up a name Because I know I can make up an address in New Mexico, You could do anything you want, you can make up a name, you can use your name, I like to use the client’s name unless you tell me otherwise, OK, gotcha. When I opened my bank account for my LLC, should it be at the same branch that I have an individual account on? Does it matter?
49:30
If you’d like that bank, yes, choose a bank for its services, OK, so that’s great, OK. I’ll let him know. Don’t let them, Lincoln.
49:39
Personal and business only.
49:41
Of course. Next. Last question. Is your basic video on opening an LLC? I think that was before Caleb and Brown. So you had mentioned a couple of your videos that you do something special for, Caleb. So I’m afraid to get my LLC without putting something special in. OK. Well, it’s required because of the way I write the contract, But you can actually just go register your company. You can have anybody raise your company, and then kill them, ramble: Open. Your account, That’s not a problem. I just have special purpose when I’m working with a client.
50:09
And so, aye, have to describe your relationship to the company a little bit differently. So, I might use a trust as the owner, depends on how we work it out, or you might have another member, two people.
50:21
And so, I write up the, there’s something called a Banking Resolution and the Certificate of Beneficial Interests.
50:27
Those documents, I have to write up a certain way to describe what I’ve done, so that you don’t have to, like, describe it. It’s already done. But no. You could just get any company and open an account there at … Brown. And then if for some reason there’s a problem with it, like maybe you don’t like it creates, Let’s say, creates a liability of some kind that we want to get rid of the way we can modify the articles, and the operating got it.
50:48
Yeah, great, so that makes sense. That was one thing.
50:51
Hold me back I’m trying to get some stuff done so when I do At my time with you, I’m not wasting your time, either. Yeah, Sure. Understand? Millimeter. Alright. Thank you very much. Thanks, Danielle.
51:04
All right, guys. Well, thanks so much. I think we got them all. Appreciate everyone’s participation. I hope this was beneficial.
51:11
Y’all have a good night.