November 17, 2022

JF2996: How to Buy a Porsche with Passive Income | Passive Investor Tips ft. Travis Watts


Passive Investor Tips is a weekly series hosted by full-time passive investor and Best Ever Show host, Travis Watts. In each bite-sized episode, Travis breaks down passive investor topics, simplifying the philosophy and mindset while providing tactical, valuable information on how to be a passive investor.

 

In this episode, Travis tells us how he and his wife have been able to purchase numerous vehicles over the years by using passive income.

New call-to-action

 

Click here to know more about our sponsors:

 

DLP Capital

DLPCapital_Horizontal-2

 

Cornell Capital Holdings

 

PassiveInvesting.com

 

 

TRANSCRIPT

Travis Watts: Best Ever listeners, welcome back to another episode of Passive Investor Tips. I'm your host, Travis watts. I am out in sunny and beautiful San Diego, making a little cameo at a real estate conference happening here... And if you're joining in on YouTube, enjoy the scenery, enjoy the view; we got the [unintelligible 00:00:58.12] baseball team, they're playing here behind me... But what we're talking about in today's episode is not about San Diego or baseball, it's about buying vehicles - this is kind of a lifestyle episode - using your investment dollars, or using passive income, or using capital gains to purchase vehicles.

My wife and I, we've done this for about seven or eight years now, we've purchased numerous vehicles this way... I just want to share the various strategies that we use. A couple of minutes ago there was a Porsche Cayenne that just passed me, and that's the vehicle that we just decided to purchase. Beautiful vehicle; they now make it in a plug-in hybrid, phenomenal ride. If you guys haven't driven one, they are an excellent vehicle. We've had a lot of Porsches over the years, but this is by far my favorite. Anyway, not endorsed or sponsored by Porsche...

So here's the deal - I made an investment in a real estate syndication probably - I want to guess about three years ago; and it's selling -- or I'm sorry, it just sold, actually. And we exceeded the pro forma expectations. We thought we were gonna make a certain amount, we ended up doing a little better... So I put some like 100k into this investment, it sold, I got whatever it was, 65k, 70k grand or something in equity gains on the back end... So we use that cash to pay for the car, so we could pay all cash and not have to finance, not have to lease, don't have any extra expenses or overhead on our hands... And I was able to take the original 100k I invested - I got that back in addition to that 70k or whatever, and I could reinvest that, and that's exactly what I'm doing. So our net worth didn't have to go down. I didn't have to work an active job, save my money, put it in the bank, and then squander it on a car purchase and start all over again from scratch and start rebuilding. I could keep my investment dollars rolling over.

So that's an example of when we buy a vehicle all-cash, we usually buy private party, and I'm quite the negotiator, if you ever need a teammate on getting a good deal on a car.

Break: [00:03:00.18] to [00:04:07.09]

Travis Watts: Let's say for example you're looking at leasing or financing a car instead. So the way we would approach that is we would still make the investment first; it's going to have to start producing passive income. Ideally, that's going to happen right away, or in the next couple months after you make the investment... And let's just say for some simple math, you put $50,000 into an investment, and it's kicking up $350 a month in passive income. Okay, cool. So you have $350 and that scenario to look towards a car payment. And so again, you're not having to sacrifice the $50,000; you're not having to spend it, or let it go to zero. You're preserving it in an investment - ideally, assuming you don't lose money - and you're using the passive income to make the car payment.

So again, the way I see it is that car's basically a free vehicle for as long as you're receiving the cash flow, and it's meeting or exceeding your payment. And then when that deal matures, you still have your original capital to go put to work somewhere else. So I don't know if you guys have used strategies like this before. Sometimes I think things are really unique and impactful, and sometimes I forget to realize a lot of people do this stuff... So I don't know how much impact this episode is gonna have on you, but leave a comment below share this episode if you think someone could benefit from these concepts.

And it's something to think about, again, because it doesn't squander your net worth. We've had some amazing vehicles using this strategy, and I never feel like the ouch factor. "Oh, we just had to spend all that money, and now it's going to take us this much time to build it back up." I just feel like my investments are paying for our vehicle.

So anyway, I want to thank you guys. Sorry for the wind noise again; I'm outside, lots of distractions... But I'm almost here at the event, so I'm gonna go walk in... But thanks for tuning in to another episode of Passive Investor Tips. These are tools, tips, tricks, strategies, formulas, philosophies for all of you passive investors out there. Have a Best Ever week, everyone. We'll see you next week on another episode.

Website disclaimer

This website, including the podcasts and other content herein, are made available by Joesta PF LLC solely for informational purposes. The information, statements, comments, views and opinions expressed in this website do not constitute and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action. Neither Joe Fairless nor Joesta PF LLC are providing or undertaking to provide any financial, economic, legal, accounting, tax or other advice in or by virtue of this website. The information, statements, comments, views and opinions provided in this website are general in nature, and such information, statements, comments, views and opinions are not intended to be and should not be construed as the provision of investment advice by Joe Fairless or Joesta PF LLC to that listener or generally, and do not result in any listener being considered a client or customer of Joe Fairless or Joesta PF LLC.

The information, statements, comments, views, and opinions expressed or provided in this website (including by speakers who are not officers, employees, or agents of Joe Fairless or Joesta PF LLC) are not necessarily those of Joe Fairless or Joesta PF LLC, and may not be current. Neither Joe Fairless nor Joesta PF LLC make any representation or warranty as to the accuracy or completeness of any of the information, statements, comments, views or opinions contained in this website, and any liability therefor (including in respect of direct, indirect or consequential loss or damage of any kind whatsoever) is expressly disclaimed. Neither Joe Fairless nor Joesta PF LLC undertake any obligation whatsoever to provide any form of update, amendment, change or correction to any of the information, statements, comments, views or opinions set forth in this podcast.

No part of this podcast may, without Joesta PF LLC’s prior written consent, be reproduced, redistributed, published, copied or duplicated in any form, by any means. 

Joe Fairless serves as director of investor relations with Ashcroft Capital, a real estate investment firm. Ashcroft Capital is not affiliated with Joesta PF LLC or this website, and is not responsible for any of the content herein.

Oral Disclaimer

The views and opinions expressed in this podcast are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action. For more information, go to www.bestevershow.com.

    Get More CRE Investing Tips Right to Your Inbox