Transcription
Please be very careful with all properties that are in green areas in B or C locations. It will be bad, believe me? Many are eager. Why? Because they say, okay, I have rising inflation. In addition, there are overheated [music] stock and crypto markets. Strictly speaking, it's even cooler than back then when interest rates were at [music] 0.5. And that is an incredibly important tip, where you will probably think now, Fischer has an under [music] 12. Then there is general uncertainty among investors, of course with the traffic light coalition under the current government, because they are actually only interested in maintaining their power, but they don't really change anything. How does the principle of off-market acquisition work? The commonality of the best deals was, and through this I get 30 to 50% of the value [music] below the purchase price. Many multimillionaires have already become rich through this. One of the first people I taught this to scaled from 13 to 140 residential units [music]. And now we also have the cash flow problem. That's why we're doing something totally awesome now, and through that you simply have an incredibly unfair advantage over the rest of the market. In short, it works as follows. My topic today from Mallorca, from my kitchen, is how to get rich with real estate nowadays. So, how to get rich with real estate nowadays, despite rising interest rates, despite a reckless government and above all an unpredictable government, and despite an economic downturn or an uncertain economic situation. It is divided into five topics. Number one, we will look at the current market situation. I also surveyed many people from my community. So I have over 250,000 investors in my community. In addition, which locations I consider interesting until 2045, how I acquire real estate myself, then how I increase my cash flow or drive forward the appreciation of the properties, and number 5, how I secure my properties so that a greedy person who wants to get their hands on them has maximum difficulty. So, a note for you. You can write along, it might not be a bad idea, but you can also relax and listen, because I have specifically created a mind map for this, and you can download this mind map at www.af-content.de/mindmapik. I'll repeat it. af-content.de/mindmapik. So, and I have this mind map next to me, and we'll work through it now. So. However, let me briefly say something about myself. Alex Fischer is my name. I have been active in the real estate industry for 30 years. I am a real estate entrepreneur, but also an online entrepreneur, and I also coach entrepreneurs. My main topics are real estate, taxes, and entrepreneurship. So, that you know a little bit who you are listening to. Not because I want to make myself important, but simply so that you know a little bit about the experience behind it. I have bought, renovated, or newly built approximately 4000 units in my entire life. uh renovated existing properties, built new ones, divided them up, and sold them again. I myself have a real estate fortune, which is my private portfolio of about 20,000 square meters in and around Düsseldorf. Currently, I am doing three new constructions in Germany, and I also have, and that's where my focus is right now, 25 plots of land here in Mallorca, where I develop and build projects on them. In addition, through my coaching business or mentoring business, I have trained over 75,000 people in tax, yes, tax planning for entrepreneurs. You may know that taxes are a matter for the boss in entrepreneurship and of course also in real estate. So, this may sound super cool at first, if you knew how bad it was at the beginning. I am a former teacher, and I made the mistake of doing a bit of commission business during my apprenticeship, and I earned well. In relation to the apprentice salary, you had 11,000 D-Marks back then, and I earned about 35,000 D-Marks in a month by brokering a property, and then I thought, wow, that's great, I'll go self-employed and then everything will be fine. Well, there's a difference between getting a lucky shot once and wanting to make the whole thing predictable and permanently scalable. That's a huge difference. In short, for the first 10 years, I basically only made mistakes, had a lot of setbacks, and sometimes such setbacks that they were almost devastating. After 10 years, it eventually got to the point where I say, yes, now it's going quite well, and for about 10 years, I would say, in terms of real estate, taxes, and entrepreneurship, I know what the Champions League feels like. So, I must also say that I didn't achieve this alone, but I was smart enough to find successful real estate entrepreneurs relatively early on, when I had these difficulties. In total, there were, I think 23, so around 20, who had an average of 27.5 years of real estate experience. And if you calculate that, I could practically squeeze out the knowledge from real estate entrepreneurs and also from normal entrepreneurs and draw on their experience of over 800 years. And back then, when I was doing really badly and these guys gave me tips, but also smiled at me a little. Not because they looked down on me, but I think I reminded them a bit of themselves in their younger years, and that's why they sometimes smiled at me a bit paternally, just as I smile at one or the other today. Yes, so during this time, when I was practically in the first 10 years, I said, wow, if I can make it into the Champions League with their help, and that was exactly when I had a real setback, if I can make it into the Champions League with their help, then I will do exactly as they did and pass on the knowledge that I then have. In the meantime, 25 years have passed. In the meantime, I claim to have a lot of knowledge, and I'm happy to share it with you now. Let's look at the first point. The situation on the real estate market, with the aim of assessing the market for the next 20 years. So, since February 2022, prices have stagnated and in some cases fallen, and that was because interest rates rose and the invasion of Ukraine took place. You've probably all noticed that. In some cases, single-family homes fell sharply, while apartments and multi-family homes in A-locations remained quite stable. Briefly on this, what are A-locations? A-locations are locations that are known worldwide. So, for example, Hamburg, Frankfurt, Düsseldorf, Cologne, Munich, Stuttgart, and also Dresden, Leipzig, and Berlin. So, everything that is also known abroad, that's how I define an A-location. So, and these properties in A-locations were the most stable, they may have dropped slightly, but they were the most stable. Single-family homes in particular fell sharply. And here's the first important tip for you. The Baby Boomers, these people, this Baby Boomer generation, are currently in the process of handing over their properties to their successors or they are dying. So, and what did the Baby Boomers have? What was their dream? Each of them had a single-family home or a row house. So, and now you have to look at it demographically, and you will find that in the next 10 years, an incredible number of single-family homes will come onto the market, and they are mostly located further out in green areas, even in A-locations. It's not quite as bad in A-locations, but if you have B or C locations, I'd say a C-location would be Duisburg, Gelsenkirchen, Castrop-Rauxel, Kaiserslautern. So, those would be really bad C-locations. B-locations are locations that at least maintain their population size, where there isn't a huge migration to other metropolises, especially of talent, but simply where you say, okay, the population development is still constant there, but it's just not an A-location or even slightly increasing. So, the tip: please be extremely careful with all properties that are in green areas, in B or C locations. It will be bad, believe me, because especially in B and C locations, I'll get to that later, what is an A-location and why is it so important? It has an impact, it always hits first. So, but apart from that, new banking regulations have also been added. For example, I don't want to go into too much detail, but when an appraiser values a property, there is the so-called property interest rate for the land in the valuation. And this property interest rate has increased, which means that financing is becoming more and more difficult, especially in better locations. This is also not a problem if you know how banks fundamentally tick, then you can prepare the property in such a way that you are still financed. But that's not our topic today. But it has also made things more difficult because banks finance less. I have a lot to do with financing brokers, and they all say financing takes forever, people are getting sick, they have personnel problems, and so on and so on. So, this means that the banks have not made it easier. Then there is general uncertainty among investors, of course with the traffic light coalition and the current government, because they are actually only interested in maintaining their power, but they don't really change anything. They enact stupid laws, for example, that everything should be electrified, but we have the dirtiest electricity. So, if you look at it, you think, anyone who can think a little bit naturally understands that what they are doing is very strange. Then the introduction of the digital euro, increasing surveillance, and so on, asset registers. Yes, that's also something where you say, what are they planning with that? So, this uncertainty prevails among investors. Of course, also the economy. Yes, because our best economics minister of all time, Robert Habeck, has of course attacked everything that made any sense and introduced everything that didn't make sense. But we don't want to go into that today either. This is just under the point of investor uncertainty. Surprisingly, and this is again very surprising. I regularly have events with 500 people, and you always ask the question: who among you is just waiting for the next good opportunity to re-enter, and about 75% of the people raise their hands. So, many are eager. Why? Because they say, okay, I have rising inflation. In addition, there are overheated stock markets and crypto markets. The crypto markets have recently fallen a bit, but many fear that it's not, how should I put it, all over yet. This is, for example, a very interesting point that is not yet visible, but many are eager, or many are eager, and there are a few things holding people back. I'll get to that shortly. It is interesting that the rental market in A-locations is tight. I just read it in Fokus today. Rents have, I think, increased by an average of 5.7%. Prices have not yet, but if rents rise, prices will follow at some point, and more so in A-locations. So, I see this in the rental market here in Düsseldorf, where I have many properties, due to migration and especially due to the Ukraine. You also see it in Munich. I have a new construction project in Munich and so on. There, you already see queues of landlords again at viewings. That means, you do a viewing for landlords, and there are about 30 people there. What also annoys investors is the rent cap. Yes, the rent cap was originally tried in New York and only led to one thing, namely more homelessness. Why? Because if the market is no longer regulated by supply and demand, meaning everyone pays the same price, then the landlord will always take the one with the best creditworthiness. Yes, and otherwise, you would have said, well, he has worse creditworthiness, but he's paying more rent now. So, and this means that people who earn very well can afford relatively cheap housing. So, and exactly the same thing is already happening in Berlin and other cities, but our government knows better, but this rent cap still annoys investors, and as I said, survey at events, despite all that, 75% are waiting to buy. So, long story short. First tip: If you want to position yourself securely in the long term, only invest in A-locations. Important here is location, not area. Yes, so location is practically the city. In an A-location, you can also invest in B and C areas, as long as you pay attention to them being up-and-coming. Yes, in Düsseldorf, for example, it's like in other cities that you have some really bad areas where nobody wanted to hang themselves over the fence 10 years ago. And then at some point, if you have a university, and all A-locations have universities, then you have students there who simply want to live cheaply, and they move into these not-so-great districts, and through the students, life comes in, then cafes come in, and so on, and then the hipsters move in, and then it becomes a hip location. So, pay attention to where the students are going. Where the students are going today, there you will have a blooming and expensive district in 10 years. So, what are the main concerns against A-locations? And you should only buy in A-locations. I know the concerns, I had them myself for a long time. You think it's too expensive, the price per square meter is too high. You think, hey, cash flow is practically non-existent. I even have to pay extra because the purchase prices are relatively high, and due to the rent cap, you can't increase it accordingly. And number 3, you often can't get anything. So, these are the three concerns: too expensive, no cash flow, and you often can't get anything. So, and now comes the first point that you really need to understand, which I will now explain freely. Why A-locations? Despite these concerns, you need to understand how a market is created. So, imagine you have 100 buyers and 101 sellers. So, that means one of the sellers won't get rid of their place because there are only 100 buyers, and then the market falls until one of them says, I don't care, I'm not selling at that price, I'm out, and then you have consolidation again. The opposite is different. So, if you have 105 buyers, but only 100 sellers, then the market rises until all five have dropped out. Yes, so you don't need a huge demand, but you only need 100 sellers and 101 buyers, strictly speaking. The problem is, if you only have one buyer, so only one more, one of these 101 will drop out. But if you have 105, 110, 120, maybe even 200 interested parties, then the market rises like crazy. So, it's not even that important that there have to be so many, but it just has to be in relation to supply and demand. So, now let's look at why A-locations are so important. In A-locations, you have seven demand streams, and in C-locations, only one or maybe even only half. Let's take an example, let's take Gelsenkirchen or Castrop-Rauxel. There you have one demand stream, which are of course the owner-occupiers, and then you have the so-called owner-occupier-like investors. Owner-occupiers are people who want to live there themselves. Owner-occupier-like investors say, okay, I'm buying a rented apartment because I want to move in there myself later or because my parents can move in there later. Then you have the real investors who simply buy the apartment to rent it out. So, and if you look at Gelsenkirchen or Castrop-Rauxel now, you will find that there you only have the first two streams. So, you actually only have owner-occupiers, but because there is little money there, because the economic situation is not great, because nobody really goes there who wants to set up a business. That's why I would say you have half a demand stream among owner-occupiers and also half a demand stream among owner-occupier-like investors, and the real investors, they won't be financed there at all, at least not the small ones, and that's why, using Gelsenkirchen or Castrop-Rauxel as an example, you only have one demand stream. Now let's look at Munich. In Munich, you have one demand stream, which are the owner-occupiers. Then you have the owner-occupier-like investors. Then you have the people who simply buy an apartment to rent it out, i.e., the investors, and specifically local ones. Yes, then you have the state-specific investors, meaning someone from Erding buys in Munich. Yes, who says, "Oh, I'm buying a rented apartment in Munich." But no Münchner or hardly any Münchner buys a rented apartment in Erding. So, that means from the state level, you have another demand stream. So, then you have a nationwide demand stream. So, that a Hamburger says, "No, I'm buying a rented apartment in Munich." A Münchner also buys an apartment in Hamburg for rent, but he doesn't buy one in Castrop-Rauxel. So, then you have the nationwide demand stream. Then you also have the European demand stream and the international demand stream. So, whenever, for example, prices are really going up on the real estate market, European or even international investors invest. This has happened three times in the last 15 years, that American funds have invested, that they have bought entire real estate packages. And you have to understand one thing again. You don't need millions of demanders. You just need 100 people who sell and let's say 150 people who want to buy, and then the market rises rapidly. And unfortunately, only A-locations have these large demand streams, and that's why they rise like crazy. For example, for me, when I bought my first multi-family houses, I bought something in Düsseldorf, an A-location, and even in an A-area, and I found it really too expensive, and it wasn't particularly great in terms of cash flow, and so on, and I bought other things. I bought something in Dortmund, I bought something in Wuppertal, because I thought, well, Wuppertal is still relatively close, and so on and so on. Long story short. 15 years later, the real estate in Düsseldorf has quadrupled in value. Quadrupled. And in Wuppertal and Dortmund, I just got out with a 20% profit. Just for understanding. It also went completely differently than I imagined. There are also some online people who tell you a lot. Hey, rental yield is important and so on and so on. Yes, of course, rental yield is important, but rental yield in A-locations and how to do that and how to still get a great rental yield in A-locations, I will tell you more about that shortly. Now, back to the concerns. So, again, the main concerns were: too expensive, no cash flow. Uh, so cash flow doesn't work, also because it's too expensive. Uh, because the higher the purchase price, the lower the surplus, of course, and it's not easy to get something in A-locations. Clearly, because of the demand. So, and what I want to tell you now is how do I solve this problem? And for that, you need to know one thing: I don't buy anything. I don't even look on ImmobilienScout. I sell on ImmobilienScout, but I don't buy anything on the online portals, and I solve the problem by acquiring off-market properties. And how that fundamentally works, I will tell you now by acquiring off-market properties in A-locations, and I get 30 to 50% of the value below the purchase price. Let's take an example, and this works internationally. Here in Mallorca, I do something similar. For example, I bought something here in Port Andratx, a cliff face. That sounds a bit strange. 70 meters of cliff face for an absurdly low price. Yes. Uh, 4.5 million, that sounds very expensive, of course, but in Port Andratx, you have sales prices per square meter of 15 to 20,000 euros, and that's first sea line. So, and you don't get things like that through, say, Scout and Co. So, and how to do that fundamentally, I'll explain in a moment. First of all, how did I come up with this off-market approach? Uh, and that is, I showed you, the first 10 years I struggled so much, and then I looked, okay, what were the cool acquisitions I made, and what did they have in common, and I found that I only made 4% of the total acquisitions through portals, and the others I acquired somehow differently, especially the ones that were particularly enjoyable, even in retrospect. So, and here, and this is an incredibly important tip, where you will probably think now, Fischer has an under 12. The commonality of the best deals was that the sellers had no financial motivation. That means the purchase price was not so important to the sellers. Sounds strange. Here's a short joke to help you understand. Fritzchen, just 20 years old, comes home with a brand new Porsche, a new E-class. His parents say: "Fritzchen, what did you do? Did you steal it, lease it, get into debt? What are you doing?" He says: "No, I bought it for 100 euros." His parents then say: "How for 100 euros? That can't be right. This thing is brand new, it costs 200,000." How is that possible? There must be something wrong, something must be wrong. An old woman sold it to me for 100 euros. Okay, show us the contract. Yes, it's true. Contract for 100 euros. That can't be right. Then they pack the contract, pack their Fritzchen, and drive to this elderly lady, ring the bell, and say, is it true that you sold this Porsche to our son for 100 euros? The woman says: "Yes, yes, it's all correct. I wasn't forced, it's all legal, everything is fine." "But why are you doing this?" She says, quite simply, you know, my husband has been having an affair with his assistant for two years, and he thinks I don't know anything about it. And now he's planning to move to Spain with his assistant, and he thinks I don't know anything about that either. Strictly speaking, he's already in Spain, and now he's called me and said: "Hey darling, would you be so kind as to sell my Porsche and send me the money?" And that's exactly what I did. So, why am I telling this joke? Uh, because these are, for example, some of the target groups that are interesting. That is, so that you understand, I said, uh, the commonality was no financial motivation, and one of the target groups is, for example, people who don't want to give money to someone else. So, regarding this, there are a total of 13 types, i.e., 13 main types and then some sub-types. Uh, I'll give you a few examples here. One example is, for instance, someone who wants to disinherit their heirs. Here's an example. In Munich, there is a district called Bogenhausen. It's a large district with beautiful properties. Originally, they were actually social housing, but around the turn of the century, they look great, beautifully renovated. It belongs to an elderly lady. Her grandchildren tried to get their hands on the money and tried to disinherit her. This disinheritance of the grandmother failed. So, if this grandmother is now thinking that her heirs actually wanted to declare her mentally disabled, then that would, if you did that to me, I would say, friends, now you get nothing, and I would give it to someone else for 100 euros, and there are plenty of people like that. The problem is, out of 100 people who sell, only two have no financial motivation, only two. And if you look on Immobilienscout because of this, you don't know which of the 100 offers is the one, because it first lists the purchase price that the broker states, yes, or that he has somehow easily determined. You can't tell from the price of the offer whether there's no financial motivation behind it. Uh, that's something where you have to know how to do it. So, again, disinheriting heirs is one motivation, for example. So, exiting a partnership is another motivation. That means, uh, for example, in divorces, yes, but not only, not only in romantic partnerships, but also in business partnerships. You just want out. Yes, and anyone who has ever been in a partnership that really annoyed them knows that you say, wow, I don't care, I'll buy myself out, but I want out. So, next point is, for example, insolvencies. Many of you probably think, ah, if I just had a connection to two or three insolvency administrators, I would be at the forefront. No, unfortunately, that's not true, because what many don't know is that the insolvency administrator doesn't actually administer the insolvency at all, but his main job is to acquire insolvencies. So, he hangs around in court and cuddles up with the court clerks, with the judges, so that he is appointed as the insolvency administrator. Then he takes all the files and slams them onto the desk of an insolvency case worker. It's similar to a notary's employee, so many notaries know less legally than their office manager, but he has the title, so, and this insolvency case worker gets all the crap dumped on his desk and has to figure out how to clean up the mess. Yes, and if, and then it often happens that a company goes bankrupt, let's say in Düsseldorf, it has multi-family houses in Düsseldorf, then it has five underground garages in Langenfeld, then it has some commercial property in Munich, Erding, and also two apartments for employees in Hamburg. So, and this insolvency administrator knows someone, knows no one in Erding, he also knows no one in Hamburg. And then they think, my wife will kill me, I'll be on the road all the time, and so on. And if he gets the highest purchase price, he doesn't get more money. And here I'll tell you, and what interests the insolvency case worker? What interests him is actually, how should I say, to get the case off his desk without anyone complaining. Here's a short story where I bought something myself. Düsseldorf, Kaiserswerther Straße, so an A-location. There were, I don't remember exactly how many, I think 18 showrooms and 60 garages for auction. Yes, and if you know a bit about auctions, you know that everyone thinks you can get a bargain at an auction, yes, but not in A-locations, because it's totally overcrowded. Uh, however, I was informed by a colleague that this is an extremely great thing. Uh, the valuation was 7.5 million euros. That was the valuation, uh, from the appraisal, and, uh, then I read the appraisal, and then things caught my attention. I looked at, okay, how high is the debt, how high is, uh, uh, the remaining balance, uh, of that, of that thing, and so on. The 7.5 million was actually, the thing was worth it, but, and now the interesting thing came out, the bank's loan was only 4.5. So, that means, the bank only had loans of 4.5 million for these 18 showrooms in a prime location, which can also be easily converted into apartments, plus 60 underground garages in a location where you practically get zero parking. So, then I did a bit more research, and I found out that it was a guy who financed it with this bank. It was a French bank, an English or French bank, I don't know. No, an English bank. It was an English bank, and he, he just ran away, he threw everything in, they didn't really have any documents, and the guy who had to process it at the bank was so pissed off at this owner. Yes. So, and if the bank had sold it for 7.5 million, for example, they would have had to transfer another 3 million to the strange owner, whom they hate, because they can only keep their debt and the costs they incurred, and they have to pass the rest on to the owner. Do you think that this case worker, who thought, what the hell, I have to get all the documents from England, was eager for this debtor to get as much money as possible? No, he wasn't. On the other hand, he also has to act in the interest of the bank, and he must not disadvantage the debtor. There are some regulations for that. That's why I called him and said, look, I would bid on this thing, but only on the whole thing. So, that means, I'm not buying individual showrooms or individual garages, but I'm giving him 4.5 million, a bit more, I think 4.8 or so. I'm giving him 4.8 million for the thing, and I'm giving him an auction guarantee. That means I commit beforehand that I will bid at least this amount, but I will not do it individually. So, either you convert it, then I'll take it all at once, or you leave it, and then you can, uh, settle your garages individually and still have restaurants and so on and so on. They were totally up for that, and then I made this contract with them. So, I got a cashier's check for 750,000 euros. You need that for an auction. You have to pay 10% or transfer it in advance, but transfer it in time, for, yes, down payment, and these 10% do not refer to what you finally get as an award, but to the market value. It was 7.5 million. Well, anyway, the auction opened. It looks a bit like in court. There's a judge, and then there are the lawyers of the creditors, and the debtor wasn't there, and so on. And then there's a court clerk, and the court clerk says, uh, the creditor has changed it. Uh, he is no longer auctioning individually, but only globally, so only as a package. So, and there were, you have to imagine, there were 40 people there, and each of them had a bank check for 50,000, for 100,000, or for something else. Uh, but nobody wanted the whole thing, they all just wanted to grab these showrooms, which can easily be converted into apartments, and then there was wailing and gnashing of teeth because even some of them would have had it, the 750,000, but it didn't help, no, transferring it wouldn't have helped either. So, it was simply, they were all out. So, and then there's a minimum, a minimum, consideration period of half an hour, then I didn't do anything at first. Said, well, the auction starts now, and so on and so on, and the first time you can only bid up to 70% of the market value. That's why it was around 4.8, I don't know.
More precisely, but in that ballpark and um, well, 3 minutes before the half-hour was up, I said, I'll offer exactly these 70% and here, by the way, is the check for 750,000. Then another 3 minutes passed, and then, congratulations, Mr. Fischer, you've got it. The rest, of course, did their thing. Yes. Um, so that's just um, how you do it. So, now, fundamentally, how does the principle of off-market acquisition work? We also have a legendary coaching session on that. Many multi-billionaires and multi-millionaires have truly become that through it. Uh, I personally know seven alone. However, there are still, truly multi-property owners, who consistently have 300, 400, 500, 500 units that they've acquired solely through these techniques. But I'll still explain the principle to you. So again, you look for people who have no financial motivation. You don't look on portals. You need to know the types of motivation that exist besides financial motivation. There are 13 main motivations plus another 7 sub-motivations. So, now, the problem is that out of 100 sellers, only one or two have this non-financial motivation, and that's why you won't get anywhere with Immobilienscout, and that's why you have to go through opinion leaders. Yes, so an opinion leader, for example, in the case of inheritance, would be an estate administrator, yes, or out of a partnership, it would be, for example, like a mediator, yes, someone who settles disputes, or it would be a banker who, yes, who has corporate clients, who knows about this and is in very good contact with his clients, or in case of insolvency, it would be the insolvency administrator. So, in other words, you don't acquire the deals directly, but you acquire these people where you know, so let's take the divorce lawyer as an example again, at the divorce lawyer's, probably one in five is willing to lose money. Uh, just so the other one throws up out the window. Yes. So. And you acquire the opinion leaders, and how exactly to do that, and you don't even have to acquire them. A large portion of these opinion leaders, there's a whole list of all the opinion leaders out there, a large portion you already have in your circle of acquaintances and friends. You just don't recognize it yet. So, we've already done this with 10 people, and no one has fewer than five opinion leaders they are not close friends with. So. And the great thing about it is, once you've won over these opinion leaders and explained to them what you're looking for, what motivations they should look for, and so on, then you practically have a deal flow machine running, where you regularly get things in, and depending on how high you want to scale, you then have to acquire even more and so on. For example, Kim, one of the first people I taught this to. He scaled from 13 to 140 residential units through it, and has since become a multi-millionaire. He supports me today with the coaching because he also knows a lot about renovation and current matters. I am currently more active in Mallorca. I'll explain why in a moment. And there are success stories upon success stories, and I can only recommend that you acquire off-market. But you have already received the principle from me on how to do it. Uh, you will find that 99% of people don't know this. If you are serious and say: "Hey, I want to do it right and I want to go all out," I would recommend you inquire with me. So, now I have acquired A-locations through off-market acquisition, through opinion leaders, through people who have no financial motivation. And now the question is, because you have the demand, for example, difficult to get, we have now solved that. Now we have the demand, how about cash flow and too expensive? Too expensive we have also solved. We still have the cash flow problem. By buying cheaply, the cash flow already improves, but we want to significantly increase the cash flow problem. That's why we're doing something totally awesome now. We internally call it the Cash Flow Turbo. And these are so-called blue-collar residential units, not blue in color, but blue-collar. Yes, white-collar are people who work in offices. Blue-collar are workers. So, these would be, for example, mechanics, logistics drivers, people who do manual labor, and also some programmers from India or elsewhere, who say: "Hey, I'm working here for a year and want to spend as little as possible on living expenses because I want to take as much home as possible." So, and the cool thing about this concept, it's not like Airbnb. You have no commercial activity and you have no rent cap. You can completely circumvent the rent cap through this, and you can multiply the rents by three to four. That means, if you have, for example, 100,000 € annual rent, then you will have 300 to 400,000 € annual rent afterwards. Sounds incredible, I'll briefly explain how it works in a moment. Or a 700 € apartment, I just had that, it now brings in, so 700 € rent now brings in 2500 € rent. And the great thing about it is, you have to imagine, you have your existing properties, they are already financed. So, there goes, I'd say, um, depending on how it is, a part for interest, a part for repayment, but it's already somewhat self-sustaining, otherwise you wouldn't be financed at all. And for these types of apartments, various apartment types come about. two-room, one- and two-room apartments in locations are okay, but not optimal. Optimal are three- and four-room apartments, where the apartment sizes, where the individual room sizes are between 10 and 15 square meters. And we have refined this concept for years. In short, it works as follows. We put two beds per room with a certain furnishing, wardrobes and so on. We have found out over years what a certain furnishing should be like so that people stay with us as long as possible. Imagine, this is a four-room apartment, so you have eight beds, and you can charge 15 € per bed, per night, even in B-locations. In C, in A-locations you can charge 25 to 30 € per night. So, calculate that up, a four-room apartment, 8 beds, 25 € per night. You can calculate what that comes to. So, now you say: "Yes, wait a minute, but that's not allowed and it has to be approved and it's a misuse of space and then I might become a commercial entity and have to pay sales tax and this and that and the other, and what about the rent cap?" No, we don't have any of that. Why? Because we don't rent out the beds individually. We're not interested in that at all, but we do it similarly to off-market acquisition. We acquire people in a very specific way, opinion leaders, who practically always have the problem of where to accommodate their people. Currently, 70% of people use Airbnb and hotels, and we are much better for these people in terms of both service and cost, and that's how it works. That means we have a minimum contract of 6 months. This completely removes you from commercial activity. We also don't offer laundry service or anything else, and we do a few other things. We rent to a company for residential purposes, and in this way, we are completely out. We are even largely out of rent law. So. Of course, this doesn't work in all areas, it doesn't work in all locations. There are certain prerequisites, you have to research the market, but it always works in A-locations. So. And now imagine, because you mustn't forget one thing, the increased interest rates that everyone is struggling with, why investors are still holding back, they all have it. Strictly speaking, it's even better than back then, because the interest rates were 0.5%, because others also had interest rates of 0.5% back then, and that's why things kept getting more expensive. But now it's much cooler. Others are struggling with cash flow and low rent, and we, on the other hand, have it or can triple or quadruple the cash flow. By the way, handling these cash flow turbo blue-collar apartments requires a bit of initial investment per apartment. That's about 10k, around 8k. Then it's perfect, and a bit of time investment. Um, but once you've organized it, it's even less work than conventional rentals. That's the funny thing about it. Yes, so that's it for the Cash Flow Turbo. And now we still have on the agenda, how do we secure everything? Yes, because that's also part of what people always worry about. The bogeyman of forced mortgages and so on and so forth. To this, however, I first need to clear up some of this rage bait, clickbait – so with this "oh god, we're making drama and it's dangerous and we're all going to die tomorrow." It's not quite like that. I've looked into it. You can do that too. In fact, there have been two actual forced mortgages in Germany: in 1923 and 1952. In 1923, it made sense. Why? Because after the First World War, the central bank of Germany had simply bought worthless bonds from the German state, whatever it was called back then, and at some point, the global financial system said, "Look, your money is worth nothing anymore because it's backed by worthless bonds." So, and then the Mark, or the Reichsmark, or whatever it was, completely plummeted against the dollar. And Germany was on the verge of, how should I put it, falling back into the Stone Age. So. And as a result, they made the decision to say, "Okay, we need assets with real value, so they registered forced mortgages on people's assets to save the currency." Otherwise, it made sense. And if I had also had a forced mortgage registered back then, I wouldn't have had a problem with it because in that way, purchase prices and markets were saved. Yes, because if they hadn't done that, no one could have paid rent, no one could have bought bread, you wouldn't have gotten any craftsmen either. So, everything would have gone downhill. So, 1923 made sense. 1952, strictly speaking, was a bit of a rip-off by the state, namely the so-called mortgage profit tax. Um, because during the currency reform, when they switched from Reichsmark to D-Mark after the war, it was on average 1:12.8. I think 1:12.8, there were tax-free allowances and so on. It was converted at 1:12.8 back then. That means, out of 100,000 Reichsmark, it became 8,000 D-Mark. So. And the same was true not only for credit balances, but also for mortgages or debts. That means, if you had 100,000 in debt before, you only had 8,000 in debt afterwards. And of course, people really lined their pockets, for example, the founder of, I think, Hellweg DIY store, one of those DIY store founders, he became really rich through this, through debts he had while the currency was devalued. So. And then the government said, "Hey, they really lined their pockets because all the debts were gone, and therefore we're taxing them." Uh, that's of course nonsense, what the government said. So often, because where did the profits of the mortgage holders come from? Quite simply, from the losses of people who had cash. Yes, so the gains of one are the losses of the other. So, that means the profits I made, if my mortgage was worth nothing anymore, were paid by the person who had their cash in the bank. Yes, so the balance was even. The state is always looking for new stories to sell its taxes. It did that there too. It said, "Look, they enriched themselves, those pigs, so we're taxing them." Of course, it didn't reach those who lost their money, but rather it pocketed it. So. But still, in principle, it was around 30%, and strictly applicable over 30 years. So, if I imagine now, I had a million euros in debt today, then only 80,000 € in debt left, and then had to pay 30% of my profit – so around, I don't know, 280,000, 1000 € over 30 years with inflation, which works in my favor, I would say, "Great deal, I'll do it tomorrow." So, even this forced mortgage in 1952 wasn't as bad as it's always portrayed. So, what you need to know is, a forced mortgage will be the last thing the state will do. Why? Because it unsettles all markets and investors. So, it will only do that when there's no other way. So, how you can still protect yourself against it is in two ways, namely through a real subsequent loan. So, that means you have, for example, a property worth over 1 million and have, let's say, originally a cash flow yield of 50,000 €. So, now you quadruple the rent yield. By the way, this doesn't happen overnight, you need about two to three years. It increases bit by bit because you have to convert the apartment. You have tenants in there sometimes and so on and so forth, but over two to three years, you can achieve it, and then suddenly you don't have 50,000 anymore, but 200,000 € cash flow. This naturally increases the value of the property, and it increases already because you bought it 30 to 50% cheaper, and then you go to a bank and simply finance the rest. Not many banks do this, but enough banks do. So, for example, I have refinanced about 20 million euros on my properties in the last 3 years. 20 million euros refinanced, and then partly invested it in land in Mallorca. So, for that, you need special financing brokers, you need special banks. These banks are mostly savings banks and cooperative banks. But these are people where the financing manager is a real professional and knows what they are doing. Yes, so and the mediocre ones, they don't dare to do it. So, for example, I invested these approximately 20 million in foreign investments. You could do that too. Um, I like to do it in Mallorca, that's in the EU, of course, I know that. You can also move it abroad, of course. I don't know if that's 100% sensible, partly yes, but I wouldn't do it 100% at all. And I do that through Spanish limited liability companies, which are in turn linked to me via a holding company with a cooperative. Why? Why? Why? That would take too long now, but in short, Germany doesn't really know exactly what I'm doing here and how much value it is, and so on and so forth, and all of that isn't that easy either. So. And now comes, however, subsequent financing, meaning you increase the value of your properties, refinance, and secure the money. With that, you are already well protected. Secondly, owner's land charges. That's like trick 17. Um, please don't tell everyone about this. Imagine you have a property worth a million. So. And you still have debts of 500,000 on it. And now you do the following, please listen carefully. You now register a 1 million subordinate land charge, specifically an owner's land charge with a deed. So, that means you register a land charge, a so-called owner's land charge. Normally, Alex Fischer would be listed there. With a deed means you have, it's still registered in the land register with a deed. That means whoever holds the deed, the security, owns the mortgage. Yes, now the trick is that you don't register it with the name Alex Fischer or with your name, because then every idiot sees that it's an owner's land charge, but you register it, for example, with Sparkasse Düsseldorf or with Deutsche Bank. Now you'll say, "Huh? But then, then, then Deutsche Bank has claims." No, it doesn't, because the land charge itself, I don't want to go into the technicalities now, but a land charge itself doesn't actually say anything. The land charge only becomes active through the so-called declaration of purpose. If this bank has no declaration of purpose, it can't do anything with the land charge, and it also doesn't have the deed, because you have that in hand. So, and in this way, a property that is actually worth a million is over-encumbered by half a million. Where we now register a land charge that has value. They won't do that, and it's not recognized as an owner's land charge due to this trick. So, and then you could perhaps assign this owner's land charge to someone abroad and so on. Now I'll show you the really drastic hack with which you can tie up every land register like the Gordian knot. And that is, you could, for example, get a purchase offer from someone in the USA for your properties, with a term of 25 years. That means they have 25 years to accept the purchase offer, and the purchase offer is secured by a reservation of transfer in your land register, and thus the land register is so sealed that no one can get to it, especially in combination with the owner's land charges. And there's nothing against it that this purchase offer from the USA, perhaps also comes from a company that you control directly or indirectly. Why USA? Quite simply, because Germany is a bit of a vassal state of the USA. There are various agreements, for example, the Germans do not enforce claims against US companies and so on. So, there are various things, and Germany doesn't really mess with the USA, and that has to do with the Second World War. It's not widely known, but believe me, no one messes with a US company easily. So, let's recap. I told you how to get rich with real estate nowadays, despite rising interest rates. Yes, it doesn't matter to us if we buy 30% below market and then quadruple the cash flow, then you have so much rent yield that you can't even get that at a nursing home. Despite a foolish government, A-locations in Germany will remain value-stable, they will, and despite an economic downturn, none of that matters to us. So, it doesn't get any safer if you want to stay in Germany. So, in summary, only A-locations, preferably with B and C locations. You acquire with off-market techniques or buy with off-market techniques, then you activate the Cash Flow Turbo, and if you then put that into a very cool tax structure, like a cooperative, a holding structure, or an asset management GmbH, depending on what is secure for you, possibly also into a foundation. Um, as I said, we are the tax structuring professionals here. Uh, if you can, take a look at my website, then you'll know that we are practically the fathers of tax structuring. Um, so if you've seen anyone doing tax structuring digitally recently, they've all learned it from us. No joke. Ergo, so, to summarize again, you triple your rent through this Cash Flow Turbo. You've already bought 30% say 30 to 50% below market price. This gives you a 5 to 10 times faster repayment. Your asset balance explodes. Yes, because you have to imagine, you have debts and assets. Uh, your debts are as always, but your assets are higher, because you need lower collateral if you buy cheaper. And due to the increased cash flow, the value of the property doesn't increase one-to-one yet. So, banks do make discounts for special rentals, but if you get four times as much rent, your property isn't worth four times as much, but it's guaranteed to be worth twice as much. So, the asset balance explodes. You can refinance and then invest it abroad. I would recommend Mallorca, but Dubai is certainly not a bad idea either, at least if you plan to live there too, and this gives you an incredibly unfair advantage over the rest of the market. So, now I've talked enough and stopped rambling. In conclusion, I still have to say for those who didn't grasp it at the beginning. So, again, get the mind map from me, there you'll see everything prepared for reading at unter-content.de/mindmap-ik, again af-content.de/mindmapik de/mindmapik. It costs nothing, you can download it there very easily. On this mind map, you'll also find my WhatsApp channel, where I regularly post photos of my projects, where I also regularly post voice messages, new learnings, current offers. In addition, on this mind map, there's a link to my app with more content similar to what I've just done, and the link to my absolute foundational work, "Wealth with 0 € Start Capital to Real Estate Millionaire in 5 Years." And I think I was able to convey a lot to you. I hope you had fun, and I would be happy if I could welcome you to my community soon. Until then. Bye. Bye.