Gain Leverage for your Physical Therapy Practice

[00:00:00] Welcome to the Aaron LeBauer Show. This is the number one show for passionate physical

[00:00:09] therapy and healthcare entrepreneurs looking to level up their income and impact on the

[00:00:14] world. If that's you then you're in the right place. So sit back, chill out and let's get

[00:00:20] into the show. Hey, welcome back to the Aaron LeBauer Show. I'm your host Aaron LeBauer.

[00:00:29] The big tall redheaded dude with a beard. Today we're going to be talking about leverage.

[00:00:36] And I mentioned the word leverage on one of our Platinum mastermind calls a few weeks

[00:00:41] ago. And one of our members posted in the group was like, Aaron, what is your definition

[00:00:48] of leverage for a PT practice? And I was like, oh, I need to make a podcast about this.

[00:00:52] So this is the podcast episode about leverage. The short answer. And this is what I might

[00:00:59] have. When I wrote back to her, I was like, the short answer is having leverage in air

[00:01:03] quotes means I'm able to use my time to magnify my income and results for myself, as well

[00:01:09] as for other people, other's income and results. Let's see, I gained leverage when I stopped

[00:01:14] treating patients one on one. There's one thing to say like, you should treat patients.

[00:01:18] Look, I treated patients one on one for 20 years. I'm not going to say that was long

[00:01:23] enough. But that was long enough for me to realize I can help even more people. If

[00:01:28] I change my business model, if I update the Aaron LaBauer, you know, what my time is like.

[00:01:37] So I'm treating one person at a time, which is great. And for years, that's what, and

[00:01:43] that's what patients need. Honestly, not all patients. I'll agree to that. Not everyone

[00:01:47] needs it. Some people just need to get off the couch. But a lot of people who've been

[00:01:51] around the block, they've done everything in their own power. They've tried everything.

[00:01:55] And they're just kind of like, they've been let down. And they come to us, and we run

[00:02:02] them through a total by diagnostic. I look through their body. I, I touch them. I can

[00:02:06] tell like where they're kind of like, where they're not moving well. We use SFMA. So I

[00:02:10] can see, is it a mobility issue? Is it a stability issue? I can use my hands and find

[00:02:15] out like, where's their body holding tension? What does their body need? I'm able to get

[00:02:19] them results so they couldn't get anywhere for years. I mean, I've had people come in

[00:02:23] for 20 years. I've been trying to figure this out. And I was the first person to touch

[00:02:27] them where they hurt. Great. But I don't, but that doesn't have, I don't have leverage

[00:02:31] with that. I didn't have enough money to create leverage. I didn't have enough time

[00:02:35] to create leverage. So what I've done is I've bought back my time to magnify my income

[00:02:43] and results, not just for me, but for the people I serve. So by hiring multiple other

[00:02:50] PTs, now we can see more people through our practice. By helping coach other PTs, see

[00:02:58] more patients. Now even, it's even 10x, even 100x, greater magnification of my time. So

[00:03:08] creating this episode, it's going to be heard by thousands of people, which is dope. Not

[00:03:13] all thousand people are going to do something about it. But maybe 100 of you, maybe even

[00:03:15] only just 50 of you, will find value in this. But if it's more than me, if it's more than

[00:03:20] one person, if it's two people that find value in this, I've magnified my time for the

[00:03:25] 25 minutes I'm going to sit here and talk. My guarantee at this point in my career, it's

[00:03:30] going to be more than two people. So what does it do? What does it mean? Now in my time,

[00:03:37] I can spend an hour on Tuesdays with our platinum master my members. Some are between

[00:03:42] anywhere between 30 to 50 people will be on a call, we'll answer a handful of questions.

[00:03:48] And I can answer one question that helps 10 people. And those 10 people can go back and

[00:03:53] add another 10 people per week to their schedule or another $100,000 a year to their business.

[00:04:00] Has that changed their life? So now I've, now, by building that group and building a coaching

[00:04:04] program, you know, even people coming into my course, the cash PT blueprint, I felt thousands

[00:04:10] of people launch physical therapy businesses, which is kind of crazy. So I created a course

[00:04:16] was in 2014, almost 10 years ago. It's like 10 year anniversary is coming up like this

[00:04:24] August and over and over 1000 people, I mean, it was 1000 people like three or four years

[00:04:29] ago before the pandemic. I don't know how many people have gone through it. I stopped

[00:04:33] counting. I could go and count. It's probably 1500 or 2000 people. Plus there are people

[00:04:38] who've told me that the book and other things I've, I've shared the podcast has helped them

[00:04:42] launch a business. Now had I not shared that information, had I not created the course,

[00:04:48] had I not started talking about what I was doing and sharing it freely and even charging

[00:04:52] money. Maybe someone else would have come along a couple years later and done the same

[00:04:57] thing. I mean, other people have, the other people are doing it now, but most of people

[00:05:00] who are doing it since have been through one of my programs, which is kind of cool. They've

[00:05:05] been through something of mine at some point, read about it, et cetera, read about what

[00:05:09] I was talking about, et cetera. Like before I got into PT and started really, you know,

[00:05:16] putting stuff out. There was like one, maybe two people talking about cash practice and

[00:05:22] not very many and maybe if that, you know, it was really like, I think Jared Carter and

[00:05:26] I am going to shout out to Jared. He's done some great work for a long time. Like we

[00:05:31] kind of found each other through like, like his Bunyan video and my foot massage video.

[00:05:35] And I was like, who's this other guy teaching this? And we chatted and, you know, just reached

[00:05:39] out about clinical stuff. And he was starting to talking, he had a cash practice. But prior

[00:05:44] to that, prior to, you know, that was 12 years ago, maybe there weren't many people,

[00:05:51] there was no one else really talking about this freely. So had we not like opened that

[00:05:57] door, people might still have been stuck for a while. Right. So that's leverage. It's

[00:06:03] like, I took some of my time and help people, but here's the other thing that creates leverage

[00:06:08] is I can take something and teach it once. And I can share it multiple times, not just

[00:06:18] multiple platforms, but I can take something I taught 10 years ago and I can share it again

[00:06:23] today. And it's going to help new people because our people didn't see it then. That's also

[00:06:27] the other power of like social media and YouTube. YouTube has a ton of leverage because I can

[00:06:33] put something up there once. I've got videos that video that foot massage video has 250,

[00:06:40] maybe 300,000 views. That's leverage because I made a video for my patients and 250,000

[00:06:50] other people have watched it and benefited from it. Yes. A foot fetish community did catch

[00:06:56] it early on and get me 20,000 views overnight, which is kind of funny, but people, you know,

[00:07:03] people are watching it. And so I can magnify my income because the bigger the problems I

[00:07:10] solve and for a larger number of people, the more money I can make. Same with you. The more

[00:07:15] people you can help and the bigger the problems you can solve, the more money you make. Okay,

[00:07:20] I'm not telling you to stop treating patients. What I'm saying is if you are a business owner,

[00:07:25] it's probably not in your best interest to continue treating patients yourself for the

[00:07:30] rest of your career. You do it because you love it, but you don't have to always have

[00:07:34] a like a hand in the door or hand in the cookie jar to know what the cookies taste like and

[00:07:39] to know how to bake the cookies. You don't have to be the one serving the cookies and

[00:07:45] making the food to be a successful restaurant owner. Okay. If you want to open multiple

[00:07:51] locations, you can't be stuck trading time for money. And that's the next point I want

[00:07:56] to make. Most people are stuck trading time for money. Even in successful businesses are

[00:08:00] what we might think is successful, because time is the most valuable resource. I've talked

[00:08:04] about this a lot. Most people are stuck here, especially physical therapists, because you

[00:08:07] paid $200,000 a year to get your degree. You worked, you took the GRE, you went to grad

[00:08:12] school, you worked insanely hard, you maybe you took an Adderall like I did and read all

[00:08:16] night long. You're like, ah, you know, like and now you're committed to this, you know,

[00:08:21] degree, because I paid so much and I spent so much time on this, right? I got to get

[00:08:26] that, but the degree gives you leverage. If you choose to use it, if you choose to just

[00:08:32] treat patients one on one for the rest of your career, you don't have leverage. Not in

[00:08:37] this definition. Right? It might be better than the stretchologist at stretch lab, which

[00:08:44] we both agree. You might be. Sometimes they're going to get better results for your patients

[00:08:48] because if insurance has constrained you to seeing people for 15 minutes like, maybe

[00:08:53] that person, that person didn't need to just get off the couch, they ain't getting results.

[00:08:58] But most people are stuck there because that's kind of what school, school teachers entrained

[00:09:04] you to go out and get a job and be a good employee. That's really allowed what society

[00:09:09] does. Insurance is trapping us there because we think that we have to abide by the insurance

[00:09:14] rules. Even people that have treated as a PT for a few years and they get out into cash

[00:09:20] practice, they're like, do I do 45 minutes or an hour? And how do I, ah, how do I mark

[00:09:26] down what units? I'm just like, it's just arbitrary because if you're not billing for

[00:09:32] insurance, you know, it's arbitrary. Like you just put some whatever your best guess is

[00:09:37] down and doesn't matter because insurance is either going to pay it or not. We're not

[00:09:41] documenting for insurance. We're not treating patients, so the insurance pays anymore and

[00:09:45] it's a different paradigm. And so you get stuck there. Even society wants us to do that,

[00:09:51] like once us is training us to be good employees. But if you don't want that, if you don't

[00:10:02] want that life of being a good employee, there's no longer a work for General Motors for 30

[00:10:07] years and retire on a fat pension. That doesn't work anymore. So we got to get out of that

[00:10:11] trading time for money trap if you want to have leverage. It doesn't mean you have to

[00:10:16] get out of it, you know, to have money. You can get a good job, you know, but some of

[00:10:21] the best, highest paying jobs, you're not trading necessarily trading time for money.

[00:10:27] Some of them you still are, but treating patients one to one, well as good as it is for patients

[00:10:33] as the owner, you get, you can get stuck there. So here's how we get out of that trading time

[00:10:41] from money trap. There's two big ways for physical therapists to do that. Number one,

[00:10:46] sell something online. Okay, it's not really.

[00:10:48] Sound really just sell something online. It's not that simple but it's really sell something.

[00:10:57] You could sell it in person here. You just need someone else selling it for you. When

[00:11:01] you sell online it's not a person, it's a software and it has to be evergreen. You have

[00:11:05] to be able to make sales while you sleep. So you're still trading time and creating content

[00:11:11] and creating the product and working on the initial webinar has to be live but you can

[00:11:17] set up the webinar evergreen and it sells for you while you sleep. That's how you escape

[00:11:22] trading time for money. If you've either been on a live one or evergreen one and more people

[00:11:30] have purchased my course at this point through the evergreen webinar than the live webinar.

[00:11:35] I can tell you what, in 2023 more people enrolled on the live webinars than the evergreen one

[00:11:42] so I've done more live webinars. But guess what? I'm selling one to many on a live webinar

[00:11:50] not one to one and so that's leverage. It's still leverage. It's a product that I can

[00:11:54] sell one to many. I can do this with PT as well. At workshops, events, CrossFit, five

[00:12:01] Ks, the Quanice Club, et cetera, I'm selling one to many. That's the leverage. In the practice

[00:12:13] I'm not really collecting the money one to many but I'm still selling them on our business

[00:12:17] and they come in and then number two is hire other people to do the technical work. The

[00:12:22] people doing the technical work for me are then doing the selling because, believe it

[00:12:29] or not, physical therapy is a highly paid, very expensive technical job to learn, expensive

[00:12:38] in time and money. If you're just getting into physical therapy and you're like, I'm

[00:12:44] just going to get a great job, you're going to have a hard time paying back your student

[00:12:47] loans especially if you have 150,000 or more student loans. As a business owner, as a cash

[00:12:56] practice owner, we need to hire the other people to do the technical work for you. They need

[00:13:01] to do the service delivery. In my PT prep, for example, in my PT practice, I have physical

[00:13:08] therapist delivering the service. In my coaching business, I'm still delivering a majority

[00:13:14] of the service. It's a little bit more nuanced than that. I've got a couple great guys helping

[00:13:19] run some of the coaching calls, like they're running launch calls Owen and Nick right now.

[00:13:23] I've had other people come in and do some of the trainings, but it's still mostly Aaron,

[00:13:29] okay? But I'm doing it one to many, not one to one. There's a lot of coaches, majority

[00:13:35] of coaches are doing one to one. But the leverage comes when you can do one to many. And most

[00:13:42] people think that it won't be as valuable, but it's actually even more valuable. And

[00:13:45] we can do a podcast about that. Just shoot me a message here. Hey, I got a coaching business.

[00:13:49] I want to learn more about that, like going from one to one to one to many. I see a lot

[00:13:54] of PT coaches out there. They're just doing chat. They're just doing one to one, which

[00:13:58] is great. But the leverage comes in one to many. So that's where it is. It's sell online,

[00:14:08] sell one to many. Maybe selling online is really the selling one to many, but it needs

[00:14:12] to be it. But if you're going to sell online, it needs to be evergreen. And then we need

[00:14:15] to hire other people and leverage software to do the technical work in the service delivery.

[00:14:21] Right? You get in this, there's benefits in owning a business. There's actually more

[00:14:27] benefits in owning a business with employees than owning a business where you're the sole

[00:14:31] proprietor. Okay. So let's talk about this. So when you own a business, you go on trips

[00:14:39] and not vacations. So I'm going to Australia this spring. And guess what? The last four

[00:14:45] days I'm going to be there. It's going to be my coaching program, talking more of a boardroom

[00:14:50] meeting. But the five days leading up to it, I get to explore Sydney and Brisbane and the

[00:14:57] Gold Coast and all the places in between, right? It's expense on the business to go there.

[00:15:05] To eat, to fly, to get the hotels. Those are all business expenses because I'm there with

[00:15:12] the purpose of doing business. And on the way, there's other things that happen and look

[00:15:16] like I'm not a tax professional. So make sure you go over this with your tax professional

[00:15:21] and you're expensing the right things. But this is an overview, right? You don't take

[00:15:26] a vacant, I can tell you one thing. One of my tax advisors at some point has told me

[00:15:32] like a cruise is very difficult to make as a business expense because it's a cruise.

[00:15:37] Everyone knows a cruise is vacation. You can expect, when you own a business, you can

[00:15:40] expense things in your life like a car, like a company car. If you can justify that you're

[00:15:47] using this car for your work, and there's different definitions of this, but you can

[00:15:52] buy a car through your business and the insurance and the monthly payments, they all run through

[00:15:58] your business and it runs through your business as pre-tax dollars because it's a business

[00:16:05] expense. If you get a big enough car or truck, I think it's, I think it's, I think it's not

[00:16:11] just weighs over 6,000 pounds, I think it's a towing capacity over 6,000 pounds because

[00:16:15] there's a Porsche, I think it's the Porsche Cayman qualifies. You can ride it all off in

[00:16:22] the first year. So if you have a big income year, you can buy a car and expense the 50

[00:16:27] to 75,000. But you let your tax guy do that. Otherwise, you can get a car, you can get

[00:16:32] like a Honda Fit, and you can just ride off the monthly payments every year for 5 years,

[00:16:38] something like that. Put your car through your business, which is dope. You get a little

[00:16:43] bit higher rate as a business loan. However, you just roll out the door at least and mount

[00:16:50] down and everything runs through the business. There's other things you can do. Some people

[00:16:55] can ride off space in your home. I don't know that that would be advisable unless you're

[00:17:02] treating patients in your home as a majority of your time and income. When you have other

[00:17:09] employees besides just you and your spouse, you can run your, you can get group health

[00:17:15] insurance, which saved me a thousand bucks a month. When we started doing that, you can

[00:17:21] build in retirement savings. So you can max out an IRA before you get paid. So versus

[00:17:28] getting, paying yourself and going, "Okay, where's the money to put into retirement?"

[00:17:32] You can get disability insurance for the group. There's other things you can do as a group,

[00:17:38] like when you have a group, when you have you plus another full-time employee. OK? Family

[00:17:45] members can be board members. So when you and your spouse travel together on trips,

[00:17:52] you're there for your annual board meeting, or you're there to do business. You can make

[00:17:57] your kids, employees, and give them some work to do. And you can pay them up to a certain

[00:18:02] amount, I think per year. I don't know if it's like $6,000. I can't remember. Like I

[00:18:07] said, I'm not a tax professional, but you can put your kids in your business. They can

[00:18:11] do some work for you. You can assign them roles. And you can pay them a salary. And then

[00:18:15] you can take that salary and put it right into like a retirement savings account. Like

[00:18:22] I've got them a Roth account. You could put it into a 529. But I think the way that I

[00:18:26] set up is to get pay them, and then I'll make contributions to a Roth IRA, which over time

[00:18:31] is a little bit more flexible than the 529, and also the age they're at, but it'll grow.

[00:18:37] And it's future money for them, not now money for them. OK? So those are some, like, tax

[00:18:43] and money benefits, which took me a long time to learn. OK? There's another one here.

[00:18:51] It's like the networking in front of it. Let's see, this year, you know, it's like, "All

[00:18:55] right. How do we work with Caitlin?" How do we, what else do we need to do to grow the

[00:18:58] business and get more referrals? And, you know, I've got some platinum mastermind members

[00:19:01] who have had success with BNI this year and, you know, six years ago. I mean, I think it

[00:19:06] was Amanda Zarello, like, 2018 or 2019 had a lot of success with it, which is great.

[00:19:14] And I had tried networking and done that, like, 10 years ago. I was like, "Hmm, so this

[00:19:18] year, I've tried with Cait." And I was like, "Hey, let's try it. Let's go check out a couple

[00:19:22] of BNI groups." And I think there are three BNI groups that were close to us here in

[00:19:27] Greensboro. There was one that fit my schedule, which I could do, one I couldn't, and another

[00:19:32] one, which I think it didn't fit, Cait. So she went to one without me, then we went

[00:19:37] to one together. And I was like, "OK, like, I get this and, you know, I'm not going to

[00:19:43] I don't want to shit on BNI if you have good success with it. Because every group is different.

[00:19:49] And it's different in different cities. And it's not just about who's in the other groups.

[00:19:54] But the, but it kind of works like this is it's, I think it's a $500 membership a year,

[00:19:58] which isn't that big of a business expense. But what kind of got me was they want you

[00:20:05] there every week. Like, it's, I think it's kind of like a commitment requirement to be

[00:20:10] there every week. And if the meeting is an hour and a half, it's going to take at least

[00:20:14] two hours out of my day. The meeting starts at 8.30. Well, I got to leave it eight or eight

[00:20:18] fifteen the latest. And you're going to be there for the hour and a half, and you're

[00:20:22] going to stay a little after the chat. And that, that's really a two and a half hour

[00:20:25] chunk of my day once a week. OK, so then my next question is, who are the other business

[00:20:30] owners coming to BNI? And do they have my customers? And is this an ultimately, is this

[00:20:38] a place where I want to spend three hours of my week? And my answer was no for a couple

[00:20:44] reasons. They weren't the level of entrepreneur that I wanted to surround myself with. You

[00:20:48] know, I think the meeting I went to, there was this whole, if you've listened to this

[00:20:51] podcast for a while, my social media, you know, I, I did test it when people complain

[00:20:56] about merchant processing fees. Well, there was this whole ten minute discussion about

[00:21:01] merchant processing fees and how they're getting so expensive and blah, blah, because one

[00:21:05] of the guys there was a sold merchant processing. And I was just like, this is like low level

[00:21:11] business. It's like just raise your rates five bucks and covers it and just get on with

[00:21:15] life because there's, because you can't save your way to success. So saving a few percentages

[00:21:21] or a few points or a few fractions of a percentage on merchant processing is not going to make

[00:21:26] you rich. That's not the conversation I want to have. OK, so we're doing that. At the same

[00:21:31] time my buddy Greg Pennington, not Greg Todd who you guys might know, but Greg Painted

[00:21:35] and here into that motorcycle shop.

[00:21:37] here and I've known him for almost as long as I lived in Greensboro maybe 18, 19 years.

[00:21:43] We've been hanging out more this year and he's one of those people that showed up as one of

[00:21:48] Aaron's really good friends.

[00:21:50] I know Greg's got my back.

[00:21:52] We were hanging out and Greg belongs to Havana Phil's which is a cigar lounge here in Greensboro.

[00:21:57] It's one of the largest nicest cigar lounges in the southeast.

[00:22:01] People come here from all over and he's invited me up there to hang with him because he'll

[00:22:05] go there after work, smoke a cigar, have a drink.

[00:22:09] Every time I go up there, I see someone I know.

[00:22:12] I see someone in Greensboro who owns a massive business, the guy who owns a big construction

[00:22:18] company, the car dealership owner, people that are executives at Volvo trucks, etc.

[00:22:23] I'm like, these are the people I want to be around.

[00:22:26] We were up there one night and enrolled eight people and I knew one of them was close family

[00:22:34] friends, son, my parents, my dad's close friend, their son who is one of my older cousins age,

[00:22:42] Tony.

[00:22:44] I saw a couple other people who were former clients of mine and a couple of other people

[00:22:48] I just knew from the community and this was like the week after I went to B&I and I was

[00:22:54] just like, yeah I need to come up here more and then two weeks later, there was a holiday

[00:22:59] party and Greg invited me and he's like, but it's only for members and he's like, do

[00:23:02] you want to join?

[00:23:03] I'm like, sure, sign me up.

[00:23:04] Well here's the thing, and you know, we got a holiday party.

[00:23:07] I see a bunch of people like, I've made great connections here in Greensboro in a very

[00:23:11] short time with the people I want to be around and have the conversations I want to have.

[00:23:17] And B&I was $500 a year and the cigar lounge is $500 a year, I get so much more out of

[00:23:23] it and yes, you might be like, ah, smoking cigar, Aaron's healthy lifestyle, like, it's

[00:23:28] not like, it's not that I need to go up there to smoke a cigar.

[00:23:32] So smoke cigarettes, I'm definitely not doing that.

[00:23:36] But I'll mine smoking cigar.

[00:23:38] But and I'm going to have a drink and there were 10 years where I didn't drink alcohol

[00:23:44] at all.

[00:23:45] There was more than that that I didn't drink any caffeine, like I can do with or without

[00:23:50] those things, but it's about putting myself in the environment around people that I want

[00:23:56] to be around, that I want to learn from, that I want to connect with because while I have

[00:24:01] a clinic here in Greensboro, I also have a coaching business that serves the United

[00:24:05] States like my future isn't just in the clinic and there's other business opportunities here

[00:24:10] in town where I can leverage my experience and knowledge or maybe I just meet, I mean,

[00:24:14] I've met someone up there in the last six weeks who's become a client in the clinic.

[00:24:22] Plus like I said, the former clients that have been up there.

[00:24:25] So, you know, to me, so the leverage is this place where I can go and socialize, is also

[00:24:32] a business expense because it's a networking.

[00:24:36] It's networking.

[00:24:37] I belong up there and every time I go, I meet someone and talk about business or I go up

[00:24:42] there with Greg and we're talking about business and it's a business expense, just like going

[00:24:47] out to dinner with a prospect, it's a business expense.

[00:24:52] So just that's the leverage of having a business and that's how you leverage your business.

[00:24:57] Let's say, hey, I'm going to do this thing because I love my work.

[00:25:03] If you don't love your work, you're in the wrong line of work.

[00:25:04] If I love my work, I want to talk about it.

[00:25:08] Okay, the last part of leverage about business that I'm going to talk about and I don't have

[00:25:13] as many notes about this, but I'm going to, but it's simple but it's the next and a little

[00:25:18] bit harder step.

[00:25:21] The number one way you're going to leverage your success in your current business is by

[00:25:27] preparing for the next thing.

[00:25:28] You're making 30K months, 33K months.

[00:25:31] You hire another PT.

[00:25:33] Now you're doing 50, 60K months.

[00:25:37] Okay, you've got extra money coming in.

[00:25:39] Great.

[00:25:40] All right, make sure you got your six month emergency fund.

[00:25:44] You got your estimated taxes paid.

[00:25:47] You're running expenses through your business.

[00:25:49] I mean, shit, as a PT, like I said, like you can buy a whole gym for your clinic and now

[00:25:54] that's your personal gym.

[00:25:55] I mean, that's a business expense when you use it with your clients, but yet you can

[00:25:58] work out there too, right?

[00:26:00] You can buy all the nice rogue stuff or whoever else is making the dope stuff, right?

[00:26:05] But now you got your business rolling.

[00:26:07] You got money coming in and you don't know what to do with it.

[00:26:10] Okay.

[00:26:11] There's a couple of things.

[00:26:12] You can invest it.

[00:26:13] So make sure you're maxing out your IRA or if you don't believe in that and you don't have

[00:26:17] to believe in that.

[00:26:18] I like diversity and maxing out my IRA is I think it's like 24,000 a year.

[00:26:25] That's not a lot of money.

[00:26:27] So yes, I could put that money in other places, but I can put that money in the stock market.

[00:26:32] I can put other money in crypto and I can save up other money in cash to buy real estate

[00:26:37] or invest in other businesses.

[00:26:39] Okay.

[00:26:40] So when you've got extra cash coming through, don't let it all just sit in your bank account.

[00:26:46] You want to have some in long-term investments.

[00:26:49] You want to have some in short term like I don't I don't know because this isn't my thing

[00:26:53] either.

[00:26:54] I'm not a financial advisor, but there's some bonds that produce a decent return, but you

[00:27:00] can get the money out within 30 days or even 60 days.

[00:27:03] If you know something's coming up, like you can pull that money out.

[00:27:07] Another way to have leverages in your home, right?

[00:27:10] So, you know, but let's not talk about that in a sec just as I'll talk about in a second.

[00:27:17] I'll just have to add that on.

[00:27:20] You take your income now and we can start looking and going, okay, business is running.

[00:27:26] Okay.

[00:27:27] What's the next thing?

[00:27:28] Really, it's use the cash from this business to fund the investments that are going to

[00:27:34] pay you dividends for longer than you're going to ever want to treat as a physical therapist.

[00:27:41] There's a lot and then there's beyond like next level podcasts, how do we leverage the

[00:27:47] investments and some of the other things and other pieces?

[00:27:49] I just want you starting to think about how do we do this because some of the wealthiest

[00:27:58] people in America are invested in real estate and even and I'm starting I'm only starting

[00:28:04] to learn about this.

[00:28:05] I've heard about it for a long time, but only really starting to like learn about it.

[00:28:08] It's not term life insurance, but it's the paid up, whole life insurance.

[00:28:14] Whole life insurance policies, you can borrow against those, you know, and you can create

[00:28:19] your own, you can become your own bank and you can become your own bank with whole life

[00:28:24] and you can this is also the home ownership with a home equity line of credit.

[00:28:28] Like you can become your own bank.

[00:28:30] You own a home and after 15 of the 30 years now instead of just that 70k or 100k down

[00:28:37] payment.

[00:28:38] Now you've got 250k of equity, but if the value for home grows, it doesn't matter how

[00:28:47] much equity you have in it.

[00:28:48] You're still going to make a certain amount of extra profit.

[00:28:51] So the amount of equity you have in your home doesn't really matter when you go to sell

[00:28:56] your house.

[00:28:57] They're still going to make the same amount of property.

[00:29:00] Unless you and even if you own your own home out right now, you've just parked a bunch

[00:29:04] of cash in this property that's going to grow the same, whether it's all in there or

[00:29:11] not.

[00:29:12] And so leverage is getting a home equity line of credit and saying, "Okay, I've got this

[00:29:17] home equity line of credit.

[00:29:18] It's maybe at 7% right now.

[00:29:21] Can I take that money and put it into something that's getting me a 10% return?"

[00:29:26] Okay?

[00:29:27] You know, how risky is that return?

[00:29:30] Right?

[00:29:31] How risky is that investment?

[00:29:32] Some of the wealthiest people are doing this kind of like, it's really like an arbitrage.

[00:29:37] It's like, "I'm going to take out this loan for 7% but I'm going to put the money in

[00:29:40] this other investment that's 10%."

[00:29:42] And I'm not saying, "Take out a home equity line of credit and go dump the money in the

[00:29:45] stock market or a crypto."

[00:29:46] Like I'm not saying, "Do that."

[00:29:49] That would be like, invest in your friend's third or fourth restaurant or car wash.

[00:29:55] So that can get you those returns.

[00:29:59] There's other things to do in that.

[00:30:00] That's not the advice I'm giving you but, "Hey, you got a lot of equity in your home.

[00:30:06] Maybe you get a home equity line of credit just to sit there until the opportunity comes

[00:30:11] to buy the building that your clinics in.

[00:30:12] And now your clinic's been open for five to seven years, maybe even 10 and you know you're

[00:30:16] just going to stay open in other 10 years.

[00:30:19] You buy the building that it's in and now you're your own tenant and you've got a tax

[00:30:23] right off on both sides.

[00:30:26] And you know that you as a tenant isn't going to leave because as a landlord, one of the

[00:30:31] hardest things is if, "Okay, when's this person going to leave and what happens if it sits

[00:30:34] empty for two years?"

[00:30:35] But if your clinic's successful and you buy the building that it's in, one of my clients

[00:30:41] on a Mike and Kristi Bleffert own the building their clinics in.

[00:30:44] And some days we're chatting through our coaching calls and strategy and it's like, "Well,

[00:30:49] you know what?

[00:30:50] We'll do because they're out in Jackson, the whole way home."

[00:30:51] Well, if we can't hire another person to really work in our practice and run it long-term,

[00:30:55] then maybe when we're just decided to retire, you know, like they sell the building because

[00:31:01] their business is funding, their business is basically funding their purchase of this

[00:31:06] building and the real estate there has gone way up and they said, and Kristi said to me

[00:31:11] the other day on our Project Yalustin call was one of the best decisions they ever made

[00:31:16] was buying the building they were in.

[00:31:18] So that's how we create leverage.

[00:31:21] So they've got leverage.

[00:31:23] They've got leverages having choice, leverages being able to help multiple people.

[00:31:28] Leverage is power.

[00:31:29] They put you in a powerful position to say, "I have leverage because it allows you to

[00:31:32] say no."

[00:31:33] And when you can say no without fear, you have leverage.

[00:31:37] That's it.

[00:31:38] We'll see you on the next show.

[00:31:40] Have a great day.

[00:31:41] I'd love to hear from you.

[00:31:43] Shout me out on the stories, even just shoot me a message.

[00:31:45] Let me know what was helpful over on Instagram @arenlabauer.

[00:31:50] If you'd like to hop on a call brainstorm some ideas about business, see if we can create

[00:31:54] leverage for you and your career and your business.

[00:31:57] Hop over to callwitharen.com, book in a time, and let's chat.

[00:32:00] Talk soon, peace.

[00:32:02] Hey, what's up?

[00:32:04] It's Aaron.

[00:32:05] Thanks for listening to the show.

[00:32:06] If you enjoyed the episode and you'd like to help support the podcast, please share

[00:32:10] it with others.

[00:32:11] Post about on social media, or leave a five-star rating and review over on iTunes.

[00:32:15] And to catch all the latest from me, follow me over on Instagram @arenlabauer.

[00:32:19] Thanks again, and I'll see you next time.

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