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200: Comments and Questions from the Wealth Formula Nation!

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Catch the full episode: https://www.wealthformula.com/podcast/200-comments-and-questions-from-the-wealth-formula-nation/

Buck: Welcome back to the show, everyone. Yes, this is episode 200 or about 200, I guess is what you could say. You know, last week we actually were going to do 200, but for a variety of reasons we did not do that. One was that we’ve had this family office club meeting and so I kind of ran out of time. I got back on Thursday from San Francisco. I said Friday and I didn’t want to throw it together at the last minute. The second thing was that, man, I just got this cold and it will. The cold is gone. Alright, but I’m like but it got into my lungs and so like for like three weeks now I’ve had this issue maybe two. It feels like three though, and I still am having trouble with my voice and still kind of coughing stuff up and it’s kind of gross. And I didn’t want to subject to you that last week, but you know. I think, well, I’m almost there. So I’m going to go ahead with this. I don’t know if I mentioned this, but it really hit me when my wife and I went to Vegas, it was like a birthday present, and she got me this thing to drive Ferraris really fast. And I was going like, 145 mph in a Ferrari, I think GTB. And it was funny because for a second, my cold went away while I was driving super fast and all the adrenaline kicked in, and I was like, I don’t know, cold anymore when I got in the car. And then an hour later, it hit me like a rock. 

At any rate, I think that is a good lead in, sort of. Okay. This was supposed to be more comments and reflection on the 200 episodes, but it ended up being really, like, a lot of questions. So we’ll just treat it as it is, and that’s fine, too, because I know the Ask Buck episodes, I’ve gotten a lot of very positive feedback on that. So we’ll kind of go in that direction and throw in a few comments that we’ve got along the way as well. 

One of the questions that no one specifically asked via audio or anybody wrote back, but a lot of people have been asking me about is this whole coronavirus, this novel coronavirus thing? Well, why would they ask me about it? You may know or maybe you don’t. Maybe you’re a recent listener, but I am a physician, despite the fact that my focus is personal finance. Now, I do hold a medical degree and was up until about I don’t know, about three years ago, a practicing board certified surgeon, and, well, I don’t do that anymore, but I still spend the better part of what I don’t know, a couple of decades here just in school. So I learned a thing or two, and I was a pretty good student. So I’ll put my doctor hat on for a minute in terms of addressing this thing called Coronavirus, otherwise known as Novel Coronavirus. And tell you kind of what I’m thinking, because certainly it piqued my interest in terms of trying to understand what the heck this whole thing is all about. Now, the big fear that is surrounding this thing is really related to the unknown. Right? You see, in China, they’re walking around in hazmat suits and they quarantine off this whole city and you’re like, what the heck is going on? It sounds like a really big deal. And I’m not saying it’s not a big deal. In fact, if you look at what’s been reported, mortality rates on this have been reported up to 2%. And if that’s correct, that’s really high for reference. Influenza is reported at 0.1%. So this would theoretically be, theoretically 20 times more fatal to people who get it. And that sounds scary for sure. Right? It sounds scary. However, I have to say that I don’t know that I really believe that that 2% number is real at all because the reality is what we know now, the people writing papers about this and the doctors that I’m hearing report on this and the CDC is that most people who get infected with coronavirus novel coronavirus will either be a symptomatic carriers or experience mild symptoms that they would frankly never report. Right. I mean, if you got a little cold, you’re not going to report that you probably don’t even know it. Make no mistake. I’ve had influenza a couple times. You know, when you got influenza, when you got the flu, it hits you like a Mac truck. There is very little ambiguity with the flu, and you’re not just going to be like, oh, I have a little cold. I’m just going to go to work. And the next you infect people with influenza. That’s not the way it works. Usually you got body aches, you’re feeling horrendous and that’s like healthy people. And that’s healthy people who get this and they have those kinds of symptoms. In other words, the point is that with the Novel Coronavirus, you can be walking around and have no clue. You have it. You may barely be symptomatic at all. You may just be running around thinking, I got a little cold today. I’m going to go to work anyway. Right. So if that’s the case, how in the world do you get that? That’s because you don’t know how many people actually have it. The bottom line is that I would not be surprised that if this was, you know, this 2% was tenfold off. And maybe, you know, maybe it’s still as lethal as the flu. But I would have a hard time believing it’s if there’s so many people walking around that are asymptomatic. Now again, I’m not saying that this is not a big deal. And I’ll also say that what I pretty much guarantee is that over the next few weeks, you will see a number of these novel coronavirus cases in the US skyrocket in terms of what we know in terms of the number of cases we know. But I think that’s because we’re going to start screening this, which we really haven’t been doing up to now. And there’s going to be a lot of people who have it who are not all that symptomatic. 

So bottom line is, where does that leave us? Well, paradoxically, the fact that most people do not have significant symptoms makes this disease probably even harder to control. Think about how many people go to work when they have a cold. Right. Let’s go back to that. And that’s what most people with novel Corona virus will experience. They’re going to think they have a cold. The problem is that for vulnerable populations, this thing that comes off as a cold, or maybe it doesn’t come off as anything can be deadly. So you have somebody accepted generian Octogenarian, who’s got an underlying health condition, autoimmune disease, COPD, all this stuff. He can be done, right deadly for that person. So that is what’s really, really tricky. So although I think that the risk of most healthy individuals dying from Novel Coronavirus is exceedingly low. Right. And the nice thing is that it’s apparently not affecting children very much either. Flu does have the potential nevertheless, to be pretty disruptive to us because of the fact that it usually isn’t a problem for people after all. How do you stop the spread of a disease that barely affects most people but is just as contagious as the flu and can kill the susceptible population? There’s really only one way to do that. And that is you make them stay at home, you make people stay at home. And in that regard, I wouldn’t be surprised at all if you see pockets of the US with school closures, quarantines, etc. So maybe it does make sense to make sure if you have prescription medication that you get an extra 30 day supply. Maybe it’s not a bad idea to have some food sitting around some canned stuff just in case that everybody closes stuff down for a week or two just so that everybody just stays away from each other. The thing is that, as you can imagine, this scenario can be very, very disruptive to business, and that’s why the stock market got absolutely crushed last week. I don’t know what’s going to happen by the time you hear this, but it got crushed. It crushed the last week of February, and that’s because of all the anticipation of business problems and the problems related to supply chains, etc. And a lot of its anticipation. Still, I should point out, by the way, that this is what we saw last week is another good reason why you should seriously be thinking about being in cash flowing apartment buildings. Right? Coronavirus, people are going to stay home. They need to stay home for sure. Now, you can definitely pay your rent. So these kinds of things don’t hurt us in the short term, like the volatility in the stock markets to react to this kind of thing. Anyway, the bottom line is that the coronavirus may end up being a bigger problem in the short term than many of us, including myself, thought initially, but the health implications may actually be the least dramatic of its effects, because again, if you’re otherwise healthy, this is exceedingly low chance of anything significant happening to you, but from a business perspective and slowing things down and stock market corrections. 

Well, this could be an extra push into something that’s potentially been long overdue anyway. Now, the good news on this is that spring is almost here and summer’s around the corner, so we’ll probably have some kind of let up from that because usually cold, dry air is the thing that these kinds of viruses love. But we don’t know that for sure. But usually different kinds of coronaviruses. By the way, coronavirus itself, that word Coronavirus, is not new, right? Like for colds. I learned in medical school, rhinovirus and coronavirus, right? That’s what I learned. So this is a special strain of coronavirus is why they’re calling it the novel coronavirus anyway. But that being said, if it behaves like other coronaviruses, it’ll probably really calm down as the weather warms up and it gets a little bit more humid. And worst case scenario, I think there’s reason to believe that we will have a vaccination quicker than we ordinarily would. But even though that might take a year, who knows? I mean, they can speed that stuff up a little bit too. So bottom line, is there’s reason to believe that we can be optimistic that this is a bump in the road for what could be another roaring twenties to follow. So that’s that. 

Let’s go to our first recording. 

Jerry: Hey, Buck. Jerry here.  I just wanted to let you know how grateful I am, as well as my family, for being part of the Wealth Formula Tribe. It’s truly been instrumental in my financial education, and I would not be in the position that I’m in today without your help coming from your guests coming from our tribe. Our biweekly calls have been truly outstanding, and I highly recommend it to anyone who’s interested in improving their lives, both professionally as well as personally. The meet ups that we have, the one that I went to last year, was fantastic to be able to meet like minded people who think the same way, and this couldn’t have been possible without you. So thank you very much and look forward to many more years to come. Thanks.

Buck: Jerry. That is very kind of you to say. Jerry, of course, is known to many of you. In fact, he was on an episode of what we call The Real Investors of Wealth Formula Nation some time ago. He is in many ways, the Wealth Formula poster boy. He’s a member of Wealth Formula Network, as he alluded to which is our private community, which you could join at WealthFormulaRoadmap.com. He’s in our Wealth Formula Accredited Investor Group, which you can join wealthformula.Com and is an active investor there. He does a lot of what we talk about, and it’s good to know when people are doing that. They are finding that it actually moves the dial in their personal financial success. So I should point out, by the way, that Jerry pointed out the live event. We have one coming up April 4 and in Phoenix, go to Well, Formula Events. Com that is getting close to sold out. So get there sooner rather than later, going to have some really good speakers there. Tom Will, right. Will be there. Kenny McEloy, Rich Dad, real estate advisor, of course, you know him and I think we’ve got Richard Wilson. We got some familiar names other than that, too. So anyway, you can go check that out. Wealthformulaevents.com. Jerry, thanks again for that nice comment. 

So we have a question here which I’m going to read. The next one is from Ethan. Here’s the question. Ethan says Bernie Sanders has been discussing federal rent control and combating gentrification and speculation. Could you discuss the implications of this for investments such as Western Wealth Capital? Thanks. Well, thanks for the question, Ethan. Ethan is referring to one of our investor club operator partners, Western Wealth Capital. And if you’re not familiar with that, you can go back to Episode 195, where I interviewed Tim McCleary from Western Wealth Capital. We also earlier, I think maybe a year ago or so, interviewed Janet LePage, who is the principal and founder as well. Ethan’s question is a good one because it’s sort of Western Health Capital is the mother of all value add operators in the multi family space. That’s what they do and their machine. And they’ve gotten their investors an average of 30% annualized returns over 32 investments. It’s just an incredible track record. But listen, it would be not a good situation. Of course, if Bernie Sanders rent control issues came to fruition because the whole idea behind that business model is the increased and operating income by ultimately giving tenants a reason to pay more rent and decreasing expenses. You know, if that were to happen, we would almost certainly need to adapt our business model to get better yield. But you know what? Here’s the thing because I know there’s a lot of believe me. I don’t like Bernie Sanders at all and drives me crazy. That said, I don’t think Bernie Sanders, frankly, is electable. I really don’t believe he is, because any moderate who’s thinking about voting for a Democrat in 2020, even a lot of Republicans who really don’t like Donald Trump, who really are looking for a change. There’s a lot of those moderate Republicans are potentially looking for another candidate. They are just not going to vote for a socialist. They’re not going to do it. So they may not be able to even stomach voting for Donald Trump, but they’re not going to vote for Bernie Sanders. They’re going to probably just end up staying home in that situation. 

So, you know, there’s just too many people who are too rational fundamentally to go in and alter the most productive economy in the history of the world. I mean, that’s just nuts, right? And I’m telling you, I know plenty of people on the Democrat side. I happen to be conservative, but I’m not a big Trump guy. You probably heard me say this before. But, man, if that’s the choice, it’s not going to be hard for people because ultimately, people are not going to want to pay that kind of price, like, literally that kind of money for those kinds of ridiculous socialist agendas. And now here’s the other thing. Maybe I’m wrong. Maybe I’m wrong. Maybe he does get elected, right. So if he does, he can’t singlehandedly put into place a socialist agenda without the support of other branches, the government like the Congress, right? He can’t. You know, there’s just too much sanity left in our system to ever let this type of agenda go through. And just imagine the lobbyists on the real estate side to bottom line in the next few years, at least in my opinion, even if Bernie Sanders gets elected, that kind of rent control stuff ain’t going to happen anytime soon. That said, it’s a good thing to always make money when there’s a clear window like there is now. And I think if you think something like this is going to happen, invest now because anything of that magnitude would take yours to get through if it even did, which I just don’t think there’s a real risk of. 

Alright. Next question. Yes. How is return of investment treated for tax purposes versus return on investment? Okay, so let’s go back to Western wealth capital. That model is just an example. Here’s how they model this out. So say you put $100,000 in a deal. Their Performa typically is going to show in the first 18 to 24 months, you get about 50% of your cash back through a type of refinancing strategy. So a refi is not taxed. It’s your money, right? So that is tax free. You get that money back, then you get another refi in that model in another 1824 months. And that’s not taxed either, right. Because again, that’s your money just because you’ve created equity out of it. Your initial principle is not tax. Return of capital is not tax. So in theory, once you get back, you now have equity in the deal without having any money in the deal. That’s why we call it an infinite returns model. Now, any cash flow you get from the deal is almost certainly going to be offset by depreciation as well. So the taxes you pay on these kinds of deals in real estate, because I assume you’re talking about real estate when you talk about return on capital, really, the taxes you’re going to pay really all are at exit at divestment because that’s when you stand to pay long term capital gains and potentially some kind of recapture on any depreciation that you took. 

Now, this is important because people don’t understand what I mean when I say recapture. So I’m going to take that. A lot of people do understand that. So I’m going to take a moment here and back up on that. So basically, if you took depreciation during the whole period, right? Say at the beginning and you offset again, other passive income or whatever, you’re going to need to pay some tax on exit when you unravel that initial investment because that depreciation is being, well, it’s being recaptured, right. The IRS is saying, well, we gave you an opportunity to appreciate this, but you’re selling it out again. So obviously the asset did not depreciate. So we want to recapture some of that tax money. So if you have to pay recapture, is that the end of the world? Is that a useless thing that you did in the first place? No, not at all. You see, first of all, if you took depreciation up front, you got a tax write off on ordinary income. So for most of you accredited investors who are doing that kind of thing, you took that right off against, you know, federal tax bracket. Right now, here’s the catch. When you recapture, recapture has its own tax rate. And it’s so even if you did nothing and just went ahead and paid that recapture, you’re still coming out ahead because you’re paying on that income rather than right. So that’s one thing, however, let me go back to the strategy that I have touched on before several times, and I think is one that is critically important if you’re a passive investor. And that’s the one I call the golden hamster wheel. 

So now let’s say that you invested in four or five real estate syndications or more. And then for each one, you have received some depreciation. You know, for most high paid professionals who do this, you’re going to end up with a lot more depreciation losses than you can actually use. After all, unless you are a real estate professional, the only income that you can offset with those passive depreciation losses are against passive gains. Okay. If you’re not with me, go back and listen to that push that little rewind 15 second thing. Now, most people have a lot more passive losses than passive income. Right. So when you’re continuously buying into these properties or investing into these properties, you are effectively building up losses that you’re not using. Now, every time there’s a divestment and you have capital gains and recapture, you can offset those gains by losses that you’ve accumulated in other investments. Right. So basically, every time you invest in more real estate, you replenish your supply of losses, and then you use that for the next divestment. So in effect, that creates this thing that we call the golden hamster wheel. It’s something that you can sort of keep doing in perpetuity. And it is a hamster wheel. Yes. But it’s a good hamster wheel. And I need to give credit to one of our investors, Tim. I won’t use it as the last name, but he’s an orthopedic surgeon in Indiana who coined it, the good hamster wheel. I’m going to call it the Golden hamster Wheel, because I like to make things colorful that way. Anyway, he uses this strategy beautifully. And you know what? That’s how we do it, right. That’s the beauty of this whole thing. Again, if you don’t understand it, rewind it and listen to it. It is critical to this whole passive investing strategy. Now, one more layer I’m going to add here because I just talked to someone who’s the head of $500,000 of passive income from some surgery centers and other stuff like that. And the question was, can real estate depreciation losses be written up against that kind of passive income? Well, I’m not a CPA, but if your CPA says no, do me a favor and talk to another CPA because we have people in our group who are using this technique to offset millions of dollars of income. Right? They’re making a lot of money through some sort of passive source, and they are taking those millions of dollars and they’re investing into real estate and literally taking off those huge bonus depreciation losses against that income. You invest in real estate with bonus depreciation, get losses on K1 that are 60% to 90% of what you invested. Then take those losses, apply them to your other passive income. The other passive income, again, can be surgery centers in fusion centers. Obviously real estate the obvious one. But a lot of the ones that people don’t think of. Now, I have to tell you, this is an important thing. If this sounds like it could be something that you qualify for, make sure that you really push your CPA on it because I’m not talking about. Okay, you got a K1 because your practice did a distribution at the end of the year as a bonus on top of your that doesn’t count. That’s still going to be an active income. But in a lot of these cases there is passive income like you own an infusion center, you own a dialysis center, you owe whatever. And according to my CPA, who you may know is Tom Wheelwright. He’s a smart guy. This is not only something that you you can do because a lot of people are like, I don’t know, that doesn’t sound legal, but Tom will tell you that it’s something that you should do because it’s reporting your taxes accurately and reporting your taxes accurately includes putting the income sources in the right basket. So if you’re reporting something is passive income, that’s not passive income. That’s not good. But if you’re reporting something that’s active income, that should be passive, that’s not appropriate either. So anyway, bottom line is that some of you and I know a couple of you, even in the last year, have situations where you are paying active income on something that should be passive that could give you an opportunity that you didn’t even know about. 

Okay. Next recording here is from John Harrison. Here you go. 

John: Hey, Buck, it’s John Harrison here. Happy 200. I couldn’t help but take the opportunity to pipe in here with you because I love your podcast. It will be very hard to pick a favorite out. I know recently, the one you had with Russell Grey was really a tough subject, yet that’s what you do. You bring tough subjects. And even though you’re pretty set in your ways as to what you invest in, you bring a variety to all of us. So thank you for all of that. My question is this: you had a gentleman on a podcast back in the late fall, I believe. And he was talking about buying 25% of the equity that you have either in your home or in other assets. And I remember going to his website and it seemed that all you could do was they were looking for people to invest in. Their fund is supposed to actually coming out and maybe appraising your home and the like. So if there was some information that you could get out to me as to how to contact them so they could appraise some properties that I have and see if I can see if that’s the value, I deeply appreciate it. Again. Happy $200. And thank you for all you do, buddy. 

Buck: Thank you very much, John. John is a great guy. Again, a very active member of our group, and it comes to our events. You should come to the next event to meet John. Wealthformulaevents.com now, thanks, John. By the way, as you know, I’ve already sent you an introduction back to Matthew Sullivan. He was the guy I interviewed back in episode 141. And the concept that we learned from Matthew was that of something called home equity contracts, which I believe actually a number of companies are now doing just as a review. 

Basically, the concept is that instead of taking a loan on your home equity, such as in the case of a home equity line of credit, home equity contract actually allows you to sell equity in your home or potentially in a rental home. Why would you do that? Well, the idea here is, well, let’s say you own a rental, right. So in theory, you would still collect the same rent. But instead of having a mortgage, you might sell part of the equity in the house, and that would create more cash flow. The downside, of course, would be that once you actually sell the property, you would have to share in the profits. However, that also protects you. Right. Because if you sell it and say you don’t have a lot of appreciation, well, then you came out ahead. Similarly, you could just live in a home without payments. We’re having a lot lower payments potentially. But eventually I would have to sell the home and again share the profits. And I think most of these contracts, I think the limit is like 30 years. So it has to be a place that you plan on leaving eventually. 

Is this a good thing? The answer is, I don’t know. I have no idea. As John suggested. Sometimes I put things out there to just give people ideas on stuff. I haven’t crunched the numbers on this. And frankly, it hasn’t been anything on my radar, really, because I’m not really well, it’s just not. But certainly listen to the podcast like John has, so that at least, you know, that the options out there, that’s what we want to do, right? We just want to keep arming ourselves with knowledge so that we can become personal finance ninja. And I should point out that I don’t know if Matthew Sullivan his option exactly what it is. But I also know that there’s also a number of companies doing that. Now. I know when Matthew was on, his company was only doing it on the West Coast and really like high end places that appreciate a lot. But there was somebody mentioning this concept, even at the family office club, meaning that I went to. So it’s clearly something that’s pretty common now. And so if it peaks your interest at all, I would also in additional listening to that podcast, go ahead and Google Home equity contracts. 

Okay, let’s see. Let’s do one more question here. As I suspected, we’re probably going to need to do a part two to this, which is fine. I don’t want to over inundate you with too much knowledge in one day and have your head explode. So let’s see. 

Kevin: Hi, this is Kevin Hoover. Hey, I’ve been listening to your program for about half a year already, and I really enjoy it, and the information seems sound. I have limited means, and I have about 200,000 a year to put towards this type of investment. And early on, I was thinking of doing one large one per year, but the investment side brings the income back in such large lumps and you can’t control it. And then I like your idea of doing multiple small ones every year. I was wondering how far you break apart a $200,000 investment per year and how many K1s are you good within a year. Thank you. 

Buck: Thanks for that question, Kevin. No. I actually went to lunch with a friend the other day who asked me a related question. And so I think what I’ll do is try to combine both of them, and I’m going to take a step back and kind of hit it a little bit broader than what you asked me. So his question to me, my friend, was that if he was going to invest $2 million, say this year, did he think it was better for him to invest in a building that he owns himself or to invest that money as a limited partner in multiple deals. So a little background on my friend. He’s a local doctor, but he’s also turned himself into a pretty darn good real estate guy. And that’s important, because if he was just a doctor who had zero experience in managing property, I would tell him you’re not to even consider investing that $2 million into a property because you’re going to lose it or you’re just going to hate life. So in a heartbeat, I would tell him that that’s the answer. But his case is a little bit more complicated because he’s had a lot of success before. 

But here’s how I see it. First of all, when you have buildings on your own, they are not passive. Right? Listen, you can get a property manager for sure, but I can tell you from experience that the responsibility of the property’s performance will land squarely on your shoulders. So anybody who has gone down this road of buying apartment buildings, et cetera, knows if you really want to do only things, it’s not really that passive. So if you’re going to buy a building on your own, you need to be understanding that what you’re doing is really buying a little business for yourself. It lives and dies with the way you run it. And if you have a ton of confidence in yourself, then great. Maybe you will be able to squeeze a little bit more yield out of it. Then if you invest passively, how much more is the question and is the extra time worth the effort? Right. Are you going to get a return on investment on that? That’s a part that people don’t think about, right? If you have your own buildings and you’re working a bunch on it, are you calculating in what your like, the amount that you should be paid per hour is in order for that kind of in order for you to do that kind of activity. And what kind of early rate do you normally have? Are you meeting that when you have properties on your own? If not, then maybe you are better off actually being a being a passive investor because you have to calculate that. Right. These are two different things. One is being a business owner, one is being a true investor, a passive investor, you know, listen, here’s the other thing. Most of our passive investment proformas, at least in our accredited investor club, are at least about 20% or better. And as we talked about, there’s Western Wealth Capital that’s delivering typically they’re averaging on the divestment so far. That’s not to say that’s what they’re going to do forever. But that’s their track record. That’s just a fact. So when you do things on your own, how much better can you actually do that’s the thing that you have to ask. And then if you can do better, how much better and how much is your time worth to you? And did you factor that in on the return on investment? Now the next issue to consider for buying your own building, say, in your case, $200,000 or in one opportunity or in my friend’s case, $2 million versus investing in a series of limited partnerships.

So the next question really has to do with the risk of all that money being in one asset so this applies to your question, too, which is, should I put that $200,000 into one asset? So going back to my friend, he lives in LA, this is not going to buy him more than 20 units, even with $2 million. And what if something out of his control happens and makes the property not perform with $2 million to invest at $100,000 per shot? I mean, he could be exposed. He could create an exposure to 4000 plus doors across the country and different individual assets and markets in the hands of really highly skilled operators with incredible track records and not have any stress, right. You could benefit from cash flow, but also value refinances and investments just like we want to. But you don’t have to do anything that you’re completely passive. So while I’m not saying that there is a right or wrong question here, right or wrong answer here, and it is important to understand all the involved variables because at the end of the day, most people just ignore the extra work and risk that they’re putting in to get potentially higher returns, which in many cases they’re not higher returns. Anyway, now, in terms of your specific question again, what do you do with that $200,000 per year? Again, I’m not going to give you investment advice, but I will say this that I would if I were you try to get exposure to as many different deals as possible. The number of key ones in your case will be limited, because most of the time it’s really hard to invest less than $50,000 in a given private opportunity. So you might be doing, say, four deals a year. And frankly, for me, I do less than 50,000 seems well, you need a factor in the cost of filing your K1s with your accountant. If you do that, which might also be a reason to keep your investments a little bit higher. But at the $50,000 level. But that’s what I would do if I were you is I would probably spread that out over four investments of $50,000. On the other hand, if I’m a guy deploying a million dollars more in a year, I wouldn’t think twice about having ten K1s in a year. The extra accounting effort at that point is definitely worth the price of diversity in a portfolio, in my opinion. And you know, all that is that you have to factor all that in. But hopefully that answers your question. Again, I can’t really give you individual investment advice, but if I were you, I’d spread it out. 

Well, listen, I’m going to stop there because we still have a bunch of questions, and I’ve already been talking, I don’t know, for 40 minutes just on this part of the body here of the Ask Buck episode 200 here. 

So that’s all I’ve got this week for you. Let’s take a break and we’ll come right back