E219: Hacking Human Nature with Henry Washington

Get ready to be amazed by this guy who went from borrowing from his wife’s 401k to now having around 70 rentals in his portfolio – in less than five years! Today, he shares some cheat codes to a great marriage, a highly successful passive income generator, and a happy life.

Here are some clues: the right mindset, the right people, and the right strategy.

Listen in as Erik Cabral chats with Henry Washington, real estate investor and e-commerce business coach. All it took for Henry was to google “passive income” and watch a TED Talk at three in the morning, about a guy in his 20’s who had it all figured out. At that point, Henry made the decision that forever changed his life.

Here are some power takeaways from today’s conversation:

• Henry’s eureka moment
• The difference between trying and making the decision
• The decision to get into real estate
• Cheat code #1: Changing your mindset about money
• Cheat code #2: Connecting with real estate investors – consistently
• Cheat code #3: Investing out of a 401k loan
• Why banks most likely favor small businesses doing real estate
• His passion to share his knowledge with as many people as possible
• Henry’s popular interview on the Bigger Pockets podcast
• Lessons from failures

Episode Highlights:

Cheat Code #1: Change Your Mindset About Money

Decide to pay yourself first, and when you do that, you’re forcing yourself to figure out a way to make the rest of your budget work. It might also force you to get creative about how you make money and how you spend money.

Cheat Code #2: Connect with Real Estate Investors – Consistently!

We take on the characteristics of the five people closest to us. If you're in those rooms constantly, you're going to start to be and do what's around you. It’s human nature, so hack it and take advantage of it.

Religiously attend meetings and connect with real estate investors consistently and you will start to make a name for yourself. People start to notice and associate you with a successful investor, even if you've never done a deal, because you're there every single time. Deal flow will come to you if you're consistently in these rooms. Plus opportunities will come your way. But you can't just go once or twice.

Most people who walk into the room think it’s just a “me” and don’t realize it’s actually a “we.” Consistency creates relationships and trust, and so people need to see you all the time.

Cheat Code #3: Hack That 401k!

You can take your money out of your 401k loan. Although you’re borrowing it at a set interest rate, it's still your money. So the interest you’re going to pay back goes back to you. Your employer takes the money directly out of your paycheck, and they take it pre-tax, reducing your taxable income so that's a benefit to you. Then once you buy a property and keep it as a rental, the cash flow is technically paying back your 401k loan.

Resources Mentioned:

www.podfestexpo.com/invest

Henry’s interview on the BiggerPockets: https://www.biggerpockets.com/blog/biggerpockets-podcast-366-henry-washington

Instagram: www.instagram.com/thehenrywashington

TED Talk: Design Your Dream Life Through Passive Income

Rich Dad Poor Dad by Robert Kiyosaki

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