Transcription
But we will see that there are problems with buying cheaply in small towns. Little spoiler, it starts with one and ends with paying. And so, uh, I had a conventional resignation which allowed me to trigger unemployment. Well, as a result, I told myself I'm going to live off my savings. All the money I earn from YouTube, my activities, etc., I'm going to reinvest it. But because I invested a lot, notably a lot in the stock market through this company and also in private equity. Hello everyone, welcome to a new wealth analysis. Today, an exceptional guest as a YouTuber is on my show to reveal how much he earns. Let's go. So, we're looking at the net worth. Quite a bit of real estate, uh, €700,000 in real estate, €238,000 in stocks, that's good. A bit of startup, a bit of cash, and other things. So, you tell us about an LMNP apartment, two rental buildings. What does "immeuble de rapport" mean? It's a term that comes up quite often. It's a rather impressive term, but what's behind it? Yes, in the end, it's not like a social housing complex, where you'll find 50 units. In fact, it's just a small building where you might have one unit. In fact, it starts from the water, especially. So, we'd call it an entire property. So, for example, I have a first one with four units, just four apartments of about 30 to 40 m². A second one I have has five apartments and a commercial space that I bought with a friend. And so, that's simply what we call a rental building, it's that since we have a small building, we are, let's say, the sole owner, so either alone or with a partner through a SCI, well, we call it a rental building, but we imagine a building, we immediately imagine a building in Paris for 100 million euros. But you bought a building, we'll see that later, but it was really not very expensive, right? Yes, but we will see that there are problems with buying cheaply in small towns. Interesting. Little spoiler, it starts with one and ends with paying. Okay, we'll see that. Owner of my primary residence in Bordeaux. You live in Bordeaux. Your financial score is excellent, 94/100. Frankly, you're not far from perfection. Net worth, well, naturally almost all the real estate is financed by credit. Did you put down a little bit of a down payment, so is it the credit repayments that allow you to have a little bit? Yes, there was quite a bit. There was quite a bit of down payment, and in fact, when you look, there are also a lot of fees at the very beginning when launching projects. So, in fact, real estate, since I've done a lot of it, I've accelerated, let's say, in the last two or three years, in the end, it doesn't really make sense for me, in any case, to see the net worth in real estate within my net worth because precisely, there are all these fees, agency fees, notary fees which are never included in it. And for me, in my Finari, the valuation of my real estate, I always put it at the purchase price. It's like I'm starting 3 meters before the starting line. Yes, yes. You take a little hit. What is often said is that well, you have to pay notary fees, it's lost. Well, there's still a lot, a lot of things. Your profile, you're a single entrepreneur, what to learn, so without children, 26 years old, entrepreneur with several activities. So, you have a YouTube channel, we'll put the link in the description, and you also created a tax software called Flash Fiscal which allows you to automate the declaration of stock market income. Is that right? So, it's specific experience for stock market income, capital gains, dividends, interest, mainly foreign brokers like for example Interactive Broker, Trade Republic, etc. And so all these brokers do not have the obligation to provide a unique tax form. And so, well, we help clients who invest through these foreign brokers because we will pay much less commission fees of all kinds, on these platforms. But the problem is that, as a result, you have to do your tax return, fill out the famous forms 3916, 2042, 2047. It's considered a foreign account. Obviously. Exactly. That's a bit scary. So, you simplify that, and we'll also put the link in the description. It's pretty cool that you launched this business. Insurance broker, so what do you sell and in what form? On YouTube, well, I liked giving advice on what I was doing and especially giving feedback on my journey in entrepreneurship and finance. But for me, my credit for now is not to give financial advice. I just wanted to give my feedback, and I'm more of a fan of selling concrete products. So, for example, I know I've talked a lot about Finari because I liked the product. So, I like to base myself on a product, recommend it, talk about it to someone, and I find with insurance brokerage, it's that in fact the product, well, it's insurance. So, in fact, what is factual is the contract, there are conditions, there are guarantees, etc. So, it's easier to sell. And so I told myself, well, to have a bit more credibility and also out of intellectual curiosity, I wanted to do a regulated activity. And so I told myself, well, why not insurance brokerage? And so, I specialized in borrower's insurance because it's easy to sell, so to speak, because it's very simple. When you take out a mortgage with the bank, you have a bank that will provide you with a group borrower's insurance contract. This means you will pay premiums which will generally be quite expensive. That's where they make their margin. It's one of the products on which they will make their margin. Exactly. And you can switch to delegated insurance, meaning finding an external insurer to replace your borrower's insurance. Now, it must have at least equivalent guarantees. But the advantage of this is that sometimes you will go from maybe €20,000 for borrower's insurance to maybe €10,000 for borrower's insurance. So, you have big savings to make, and it's easy to do. And moreover, the bank cannot refuse you a change if there are equivalent guarantees. So, for me, it's quite easy to sell. I admit I do it more for friends, buddies, etc. I talk about it a bit on YouTube, but ultimately not that much because it's still a time-consuming job, and I don't have a team. So, you'll see all the activities I'm talking about. So, YouTube, Flash Fiscal, insurance broker, etc. Even my real estate, I manage it from A to Z. So, that's a lot of administration. I can tell you that I must have about 4 structures. So, CFE declarations, account deposits, etc., legal aspects, etc., I know them well, and well, that's a bit of a mental load. Especially in France, and it's not improving. You have real estate, LMNP, you were talking about it, it brings you €300 net per month. That is to say, that's after you've repaid your loans, the various charges. Exactly. Well, for this one in particular, it was the first property I bought. Exactly. The very first property I bought, it's what got me into real estate. It brings me €450 gross including charges. And since I didn't take out a loan precisely because I was doing an apprenticeship and I told myself, well, I'm not going to take out a loan to improve, let's say, my banking score. Basically, when you borrow money from the bank, what makes the bank lend you money is if you have a debt ratio that is lower. Now, we often talk about a 35% debt ratio, you can go above it with the bank manager's authorization, etc. Well, you can, there are ways. If you are an entrepreneur, same thing, you can play with your turnover, etc. We will see later, I think in my profile, there are some little hacks that can be interesting to be able to borrow potentially for your primary residence or other. And so, I told myself, what I wanted to do right away is that I had some money, the apartment doesn't cost much, it cost €35,000, so I told myself, well, I'll use my savings instead. Indeed, it cost me money in the short term, but at least it allowed me to say, "Well, right away, I created myself an income of €300 net in my pocket, and so the bank sees €300 more as income, and so it increased my rate." So, I told myself it would be easier to chain projects. So, I want to say, whether to buy cash or not, to put down a deposit or not, it depends mainly on whether you want to continue with your projects. Not bad, this little hack. Can you remind me where this apartment is located? This one is in Châtellerault, not far from Poitiers. Châtellerault, Poitiers. Then you have the company "Finances en clair". I put money aside while I was a micro-entrepreneur. When I switched to a company, I lived off my savings and reinvested the entirety of my turnover, revenue, activity. And so, you're putting all the details here. Axel is really very transparent. What does this company do? This company is really all my YouTube activities, partnerships, affiliate marketing. So, all my online presence part is this activity. And so, this company, which today was a SASU, in fact, I left, I did 3 years of apprenticeship then one year in permanent employment. Well, I was able to, as a result, with the money I earned, buy this first apartment. When I got my permanent contract, I bought my first rental building, which we'll see a bit later. And so, I had a conventional resignation which allowed me to trigger unemployment. And so, during that time, well, I launched my SASU. And so, it allowed me, in fact, as I had some unemployment benefits and personal savings, since I was a micro-entrepreneur at the time I was an employee, well, I told myself I'm going to live off my savings. All the money I earn from YouTube, my activities, etc., I'm going to reinvest it because for me, I really wanted to increase my net worth as much as possible, and that's why I have the little score of 94%, so I'm quite proud, but because I invested a lot, notably a lot in the stock market through this company and also in private equity, and we will also see that I did so through this company, meaning that I stopped my personal investments, I invested through the company, and that will be my little question later at the end of the video for you, which I will ask you. And so, here's what we can see, my balance sheet to explain to you, December 31st, well, the year n-1, we can see my turnover before tax, which was €138,000, so I earned more turnover from one year to the next. We can also see that my net result, so this is really what remains net in the pocket after paying charges, taxes, well, corporate tax, which went from €81,000 to €115,000, which is very good too, and especially what is, for me, one of the most important. Well, I don't know if we'll see it here, but it's in the net worth section. Yes, €82,000 to €198,000. Here, what's happening is that in the net worth, ultimately, it's the value of the company, ultimately saleable in a way, and so it means that my company, I see it really as my spearhead that will grow like a snowball, and I want to live off my company. That's one of my objectives. Well, you're very well on your way. You'll tell us later about all the little sacrifices you made because I've been following you for a while. It's true that you took quite a few risks in many places, but it paid off. I don't draw any income from the rest. Three SCIs that are almost at break-even. Stocks, CTO EPA, crypto appreciate over time but don't generate real income. Dividends, meaning you reinvest them in the different envelopes. Brokerage company, negligible income, you told us that's more on the side. And Flash Fiscal, that's very new, but maybe it will become a giant of taxation. So, this is your ecosystem. What is this diagram? It's, well, I told myself I'm going to do something with little colors, little simple things to explain how it worked. Ideally, I would have liked to show you the evolution, but it's true that it's a bit technical to explain. At the very beginning, I started, I was alone as a micro-entrepreneur, so there was only little Axel in the center. Then, I bought my first apartment in Châtellerault, the one we saw here. Exactly. in 2022 for €35,000. So, I bought this one cash, without a loan. Then, I was at the end of my apprenticeship, beginning of my salaried income. I created my first SCI with my mother. So, you can see here that I own 99% of SCIAR Highway. Exactly. Because here, I took out a loan and I wanted to exploit these four apartments in bare ownership. So, for me, the most interesting thing was to put it in an SCI. And so, I created this famous SCI. I bought the apartment for €180,000 at the time. Today, I think the value is still €180,000, but I paid a lot of fees on top of that. So, there were renovation costs, agency fees, there was a roof leak, and then I bought a building in Levroux in 2023. So, that's where I was able to, let's say, accelerate a bit in real estate. At that time, I was in a permanent contract, so that's how I was able to borrow for the famous €180,000, and I was a bit alone on the project because I represented 99% of the SCI, and my mother only 1%. What's the point of having your mother in the operation? The point is simply to create the SCI structure, and since I didn't have my current companies yet, the companies could have, a legal entity, taken a share of the SCI, but at that time, I hadn't created the structure yet, so I did it with her, so it's a bit of a loan, so to speak, and so I bought this building with four apartments that I rent out in bare ownership, and for me, I find that tax-wise, it was more interesting to rent it out in bare ownership since there would be around €15,000 to €20,000 in income per year, well, I felt it was more interesting in an SCI, so I told myself I'll go with an SCI, so for that, I'll ask my mother to do it, I'll do the calculations to see if it's better in LMNP, but there you go, I tested that, and then I started to accelerate where, with a friend, we created an SCI called SCI Neutron. We invested in a building in La Couronne, not far from my place, for €270,000. So, that's a bigger project. That's why, by the way, we were both 50% because we both needed our mutual income, and he works in Switzerland, so obviously that made a big income that helped him. So, there are five apartments, a commercial space that was already almost all rented out. So, we came across a building with a net yield of about 6%. So, for a turnkey property, yes, all bare ownership, there's a commercial space that was also already rented out, and so there's a lease running for the next 4 years. So, that's pretty good, and the advantage of the commercial space is that you can ask the tenant of the space to pay part of the property tax, and he pays 50% of the property tax, whereas in terms of rent per square meter, it's much less than that. And finally, well, just after that, I created my company, Finances en clair. These are the little orange diagrams we can see above. This company gave birth to a first SASU, Assurance en clair, the brokerage activity, negligible income. So, in the end, it's almost flat with the costs of structuring, etc. So, it will increase over time because that's a bit how the insurance brokerage business works, and insurance is about small gains, but they are small gains that accumulate and grow over time. And then, if I continue with the timing, I bought my apartment, and here I did what's called the "doublette". Now, what is the "doublette"? It's when it's two applications in parallel at two banks. Exactly. Now, it's not what I would recommend doing because it's quite stressful, and you need cash, nothing more, nothing less, because you mustn't forget that for the primary residence, I put down almost €15,000, and here, in this project, I put down almost €15,000 or €20,000. Concretely, you told one bank, here's my borrowing capacity, and in fact, you told another bank, here's my borrowing capacity, and you obviously didn't tell them that you were doing both projects in parallel. Exactly. Because in fact, the bank asks you, "Do you have other loans elsewhere?" Well, technically, I don't have a loan yet, I have a preliminary sales agreement for 6. I'm playing with words a bit. So, after that, well, you have to be comfortable with that too. I had some cash put aside, precisely, I saved as much as possible, and especially since I was investing a lot in the stock market with my company. So, I still had cash that allowed me to say, if necessary, I could cover it. So, I bought my primary residence, and here's what will be very interesting is to understand the mechanism I went through. Was this file complicated to get approved by the bank that financed this apartment for me? Because in fact, it's an apartment for €247,000 in Bordeaux, and I'm buying it alone, and here I bought 80%, whereas alone I wouldn't have been able to invest, quite simply. How did I manage to do it? By buying in co-ownership with my parents. My parents have already paid off their house, they have full income, they are about to retire. They are people who can be financed, they are not necessarily insurable because when you are 50 or 60 years old, you are in a situation where you can even have health problems. So, what happens is that the bank will not necessarily, well, insure you for that. So, what I proposed to the bank is to tell them, because you don't want to finance me alone, but you could finance my parents, but you couldn't insure them. A bit complicated. What if we did a project together without necessarily going through the SCI structure, because we could create an SCI to invest together, but there's no real benefit in the case of my primary residence because there would be legal fees, there would be a new structure to create, and especially there's no need to manage rental income. So, here it's very simple in co-ownership, it allows you to buy together without going through a structure. So, I bought, I asked the bank, well, what's the maximum I could hold to get the loan? They said 80%. So, I said, well, I'll do 80% myself, 10% each for my parents. We pooled the sum of all our incomes. So, that's pretty good because at that time, since I was in SASU, all my income from YouTube, etc., came into the company, but I wasn't paying myself a salary. So, the bank considered that I wasn't earning much, they did value it a bit, but not much. And so, they mainly valued my parents' two incomes since they had fewer loans. And so, that allowed us to have a large amount of income, the amount of debt, of course, because they will take the sum of all the debts of everyone. I had my debts, well, I had my outstanding loans, but my parents had finished paying off their loans. So, ultimately, it allowed us to borrow together, and so we were able to buy in co-ownership. So, what happened is that I bought 80% of the apartment, and I told my parents, I'm paying for everything. So, I paid all the fees, I'm paying the monthly installments. So, technically, they end up with 10% each of the property without paying anything for the apartment. That's a good deal. It's a good deal. And so, for me, this is a little bit of the advice I could give to people who want to invest in cities who are 25-30 years old, for example, and who don't have the means to buy an apartment alone, is to perhaps talk to their parents. You also have to talk to siblings, it has to be equitable. But for me, it's a kind of little hack that we could have because parents who have paid off their loans, they have a debt capacity that they don't use or don't necessarily want to use. My parents didn't particularly want to re-borrow, to do SCPI. And so, I told them, "Well, come on, let's make sense of the project, you help me buy my primary residence, I'll take care of everything, I'll pay for everything." And so, that allows for a good project. And especially the advantage of this is that I am only insured on the loan. So, I asked the bank, you put 100% of the quota on me and zero on my parents. So, even if they have health problems, if for example they were to pass away, I would not have to repay the loan. But it doesn't matter because the deal is that it's for me at the base, the project. So, that's a bit of the little hack I wanted to share for first-time buyers. Not bad. So, you tell us about financing two apartments right after getting the loan for the rental building. Complex legal structures to manage alone. You were talking about that earlier because there are quite a few SCIs all over the place, SASUs, etc. Strategy for first-time buyers, you just mentioned it, it's a first. I hadn't heard that in a wealth analysis before. And what I also needed to add is that there's a difference between being a guarantor and being a co-borrower. And here, in fact, my parents are not guarantors on the loan, they are truly co-borrowers. This means that if I don't pay, then they will have to pay, but immediately. That is to say, in fact, there is a level of commitment that is higher than being a guarantor. And typically, if they want to get another loan, it's as if they have 100% of the debt of the loan we took out together. So, as the monthly payment is around €290, if today they want to get another loan, they can't because, well, each person, my father or my mother, has a monthly payment of €290 against it. So, that's why you have to make sure that your parents don't have any future projects and that, well, the idea is not to give credit, let's say, to one child and not another. You also have to talk to siblings. And you talk about the pledge strategy with the bank, which is different from a Lombard loan. What do you mean by that? Well, what do I mean by that? And when I did this double project, which is in the diagram at the bottom right, the last apartment I bought in Bordeaux for €130,000. I bought it through my company. So, if we look at the diagram, I own only 1% of the SCI, but in fact, 99% is owned by the SASU, so my company. Why? Because I wanted to put all my money, ultimately, into my SASU. So, I told myself, well, I have some cash in it, I'll use it rather than paying myself dividends or remuneration where I would be taxed to then invest. Well, I said no, I'll lend this money, the €15,000 down payment I put in, to the SCI, which can then return it to me later for free or even by paying small interest. So, that's pretty good. That's how I was able to mobilize money from my company. So, I created this SCI, so I was able to buy this famous apartment, and the bank at that time, as I told you, was struggling to finance the apartment in Bordeaux. I also, of course, struggled to finance the apartment in Ain. How did I get it financed? Because, remember, I was unemployed and I only had income from my company, but I wasn't paying myself a salary. And banks don't like it when a director doesn't pay himself a salary. They like it when there's at least some remuneration, whether it's a salary or remuneration through management via an EL. They like the flow. The stock is paradoxically less important. That's right. It's a shame. Whereas, well, here I had to mobilize my stock. What did I do? The bank didn't want to lend me money. I proposed, "If you want, I'll put money with you. That gives you an additional guarantee to give me a mortgage." I had money in my Interactive Broker securities account in the name of my company, Finances en clair. Well, I took that money and transferred it to a securities account that I opened with the bank. So, I opened a new securities account. I repurchased my positions. So, I got back my Amazon, Apple shares, etc., that I wanted to have in my portfolio. And since I know these are shares I want to keep long-term, at least 10, 15, 20 years, I told myself it's okay to block it in a company securities account with the bank. So, that's what I did. They put a pledge on the securities account. So, if I don't repay my loan, they can recover the money that's on it. It's not a big deal, but it's the game. And so, because they put this pledge on the account, they allowed me to get this mortgage. So, there is indeed a mortgage, and I, it's not a Lombard loan, because here one might think, "Yes, but wait, if your stocks crash and go down to €100,000 or €80,000, well, do you get a margin call? Will they sell your apartment?" No, because in fact, when I deposited my money, they made a contract saying there is €130,000 at that moment in the account. If the stock values decrease, well, it's between us, too bad for them. And in return, they gave me a real amortizing loan with a duration of 20 years, with a credit rate, etc. And so, as long as I don't default, there will be no risk, you have to take money from this account. And what's even better is that if my values increase over time, so if it goes from €130,000 for example to €200,000, I'm very lucky in 5 years, let's say, well, I can request a new pledge on this pot, they will revalue it to €200,000, and well, I can withdraw the part that is not, from the amount of the outstanding capital. So, if, let's say, I have €100,000 left to repay, well, I can recover €100,000 out of the €200,000, which leaves me with €100,000. So, they only need a guarantee of €100,000. So, it's a small method. Now, the problem is, I mobilize €1,300, which is not nothing. But well, you found ways to get the apartments you were interested in, and so that brings us to your net worth objective of 1 million euros and to become a true rentier. Short term, 1 to 3 years, be less exposed to real estate and keep a larger cash reserve. We'll look at your Finar just after. So, concretely, what does that mean? You want to sell properties? It means investing much less for now, because until now, I've invested a lot, especially in the stock market recently. I also started doing SCPIs, and SCPIs, well, you can do regular investment in SCPIs, but when you want to start getting into it, well, sometimes you put in €10,000 to €15,000 to get your foot in the door, because if you start putting in €500, with the amount of rent you'll receive, you'll get fractions of cents. So, well, you have to put in significant amounts. And so, I found myself having invested a lot, ultimately, in 2024 and 2025. And so, that means my cash reserves, both personal and in my company, have been significantly reduced. And here, I'm a bit at my limit. So, for now, I'm pausing investments a bit. I even need to sell some investments to recover cash. And so, the idea is perhaps to sell my real estate projects within 4 or 5 years. But what's a shame with real estate, if you sell too quickly, you haven't yet started to amortize all your various expenses. And real estate is really an exponential curve because when you look at the composition of a loan and the amortization schedule of a loan, when you understand how an amortization schedule works, that's where you understand how the rich get richer, because you'll pay at the beginning, perhaps half of your monthly payment will be pure interest, money thrown out the window, so to speak, and the more time passes, the more this interest part decreases. We see here, moreover, more interest than capital. Exactly. So, here, €715 is really going down the drain just for borrowing money because the bank is de-risking. What you need to understand is that the bank will first ask you to pay interest, and as time passes, the curve reverses, and it's you who gets richer with the capital. That's right. And that's where it becomes very interesting. It's after 10-15 years. Then, the part of the capital that is repaid becomes larger and larger. That makes sense. But well, it's true that in terms of mental load, it can be expensive. And notably, well, recently, with the first one I bought, I had a tenant who didn't pay. So, which one is it? It's the Levroux apartment, which is here. Yes. for €180,000. This one, which I bought, in fact, not that long ago, in 2023, so I've barely started to amortize my expenses and all that. You had quite a bit. You had €12,000 in notary fees, agency fees, renovation costs. So, here you have €65,000 in expenses, basically, before even having started anything. Exactly. The total cost was maybe €230,000 or €220,000 in total. So, that's huge. And today, let's say I sell it at the price I bought it for, €180,000. Well, I need to earn the equivalent of that. And, well, it turns out that, well, in terms of rent, I told myself, "Go ahead, I'll have a great rent, it's in a small town of 5,000 inhabitants." Well, in the end, I need four tenants. Small town, I don't need more. So, normally, I should have had €1,800 in rent. I had problems, notably a water leak, etc., and a tenant who didn't pay. So, I'm in the process, and the person, well, the procedure has been ongoing for a year now, and I think she'll be out in about a year. So, basically, you have to realize that there are about 2 years of
rent that I am not going to collect because I will also have to recover those funds. Uh, except that I feel like it's going to end up in a debt restructuring file. I'm going to find myself a bit, uh, in deep water, you know. So, concretely, what you're telling us is that the person hasn't paid for, uh, 12 months, but you can't evict them from the apartment. Is that right? In fact, I, in fact, I had a management agency that takes care of the building. And did you have rent payment insurance? And no, I didn't take out any insurance. It's, it's a disgrace for an insurance broker, I must say. That's true. That's true. Besides, with the G, it's usually really small amounts. But then, it can go up to 2%, 2-3% per month. So that adds up quickly, it hits profitability a bit, doesn't it, and you tell yourself, "Ah, but that only happens to others." Then there's the law of large numbers, you know, when you have, for me, it's 13 units in total, well, when you have 13 units, there's bound to be a time when it happens. Why are you talking about a debt restructuring file? Is it because the person is going to go through that? What's going to happen, well, I don't know much about the legal side of this aspect, but roughly what I've been told is that the person stopped paying in June of 2024, the agency didn't realize it. So I realized it when I was doing my paperwork and my little year-end review because they send you a large monthly transfer and well, you don't necessarily look at all the details every month. And what happened is that around November, I realized it and I informed the agency. Okay, well, we'll get on it. They send the letter a month later. A month later, so the tenant has 2 months to respond, potentially. So we have to give them that time. Then I have to contact a bailiff. So I had to pay for that myself. Yes, of course, I have to go through the agency too, but the agency isn't really responding. It's all a mess. And so it's also a lot of email management and follow-ups. It's also a lot of stress because you think, well, during that time, the rent isn't coming in, and then we'll have to set a court date. The hearing is set for October 2025. So for someone who stopped paying in June 2024. So already a year later, there's the hearing. After the hearing, there's a month to get the court's decision. I could just send an email saying, okay, we agree. So they have another month. Especially since the person isn't paying. So apparently there isn't a huge debate. It's simple. The reason, well, the answer I'll get pretty quickly, and once that month has passed, we give them another two months to respond, and then I can mandate the prefecture to ask them to evict them, or they can leave on their own. Except that, well, obviously, it's the end of the year. We're entering the winter break, and then we'll be next April, and then it's just to get them out, and then I'll have to continue to recover my debts. But if the person files for debt restructuring with the Bank of France because they have too much debt, then priority will be given to all fiscal and social debts. So, for example, URSAF, taxes, and all that, but I think they can erase private debts by saying, for example, we prioritize taxes first, and then private debts, EDF, and all that, too bad, forget it. Oh, really? So that's tough. Uh, do you know if the person damaged your property or, I have no information, and the problem is that it's a property that's a 5-hour drive from my place without a car, and my problem is having bought in a city that's far from me. So my advice is to buy close to home. That's really the advice for real estate. Because I often say too, it sounds silly, but not being able to go and see it is a real problem. So, as you told us, less exposure to real estate to have a bit more cash. In the medium term, ideal gross asset allocation, 40% real estate, 40% stocks. Stock picking in a company, ETFs personally. Why do stock picking in a company? So, a small nuance, can you explain it to us? Yeah, absolutely. When you invest as an individual in stocks, ETFs, and so on, we know the tax system, it's the flat tax. For now, that might change, and maybe the amount of the flat tax will also change. Well, today, for now, it's 30%, and you need to know at what point you pay this flat tax. It's at the time of the income tax return, once a year, and you declare the capital gains realized or the capital losses realized. So, it's when you bought and sold your stock. So, it's really when you've realized the gain or the loss. In a company, it's a bit different. There, we'll look at the beginning of the year how much your stocks are worth. We'll look at the end of the year how much your stocks are worth, and the difference between the two, well, we'll make you pay your corporate tax. It's not the flat tax, it's the corporate tax, which is currently 25%, and can be 15% if you have less than €40,000 in profit afterwards. Roughly, in my situation, it's 25%, and so that means I'm taxed no more and no less than on the unrealized capital gain. And so that bothers me a bit because if, let's say, my portfolio, well, for now, it's €100,000 or €150,000 in stocks and funds. Yes, that's it. Plus the Caisse d'Éparne. Both are linked to the company. So I'll have €124,000 plus about €40,000, say €150,000. If I take 10% per year, roughly, that's fine. These are still amounts of tax that I continue to pay, paying them thanks to my YouTube income, etc. The problem is that if one day my portfolio reaches 1 million, and for no reason I go from 1 million at the beginning of the year to 1.2 million at the end, that means I'll have made €200,000 in capital gains. If I have to pay 25% of these €200,000 in capital gains, while I don't necessarily have a lot of YouTube income or anything, well, I'll have to sell stocks to pay my tax, which is almost confiscatory, and you think, well, I have to sell to be able to pay. And it's possible that there are positions you want to keep. So the solution for that is to buy individual stocks in a company. Individual stocks, meaning stocks like LVMH, Google, and exactly. Yes, what I forgot to mention is that the tax on unrealized capital gains only applies to UCITS. So within the UCITS family, you have ETFs, including the FANGs, you know, the FANGs of S&P 500 ETFs, world ETFs, well, you can't do that there, or else you pay your taxes. And the only small exception is if you have UCITS composed of more than 90% of their underlying assets in the European Union. Typically, that's the Eurostox 50, and so on. I don't necessarily want to have that kind of asset either. It's a bit of a game. That's it. When you love finance, you want to try to say, "Well, I'll try to beat the market." So you try. For now, since 2024, since I've resumed my strategy, I'm succeeding. Because basically, I'm at about 32% apparent MWR, money on wealth return, it's a bit technical to explain, and I find these figures on my brokers to get the figures. 5% of Prévoyance City. Here it's very simple, well, Finar, for example, I was one of the first investors, very happy to have participated in the fundraising, a bit of Gom, and I also invested in a company, a startup, and there I'm very, very happy, I participated in three of its rounds, really in true private equity mode. I'm in the process of signing term sheets and all that, I go through platforms and all that. So it's really a bit of a love affair. It's when you invest directly with the teams, and it's a project for which I was affiliated with this software, and I tell myself, I know it's really going to work, I see the growth, I really believe in it, and for now, they are achieving all their objectives, they are even at 110% of their objectives. So we're delighted, and for now, well, each fundraising is done at a higher valuation. So for now, on paper, I'm getting richer, but it's illiquid. That's it. So I have to wait for a liquidity event, either an IPO or a round where other investors want to buy out small investors like me. So, I think I'll probably exit at the next round because I've put in, you know, around €35,000 in total for everything invested, and if I exit at the next round, I should normally cash in around €100,000. That's not bad. You have a bit of crypto too, mainly BTC, Ethereum. It's really very, very simple. The winning trio, the winning trio with a bit of Solana. In the long term, you say you want to arbitrage, sell your rental investments and reinvest in SCPIs and stocks, reach a net worth of over 2 million euros, and generate passive income from SCPI dividends and expenses. And precisely, you've shown us your cash flow. What does your cash flow look like, actually? No, it's your savings consumption. Yes, that's it. So, for now, I was thinking that since I was still at the end of unemployment and I was consuming my savings, for now, I've made this diagram. But now, the idea is that starting this year, I've migrated, I've switched my SASU to EURL to start paying myself, to pay myself a management fee, quite simply, around €2,300 per month to cover my expenses, my loan, because I have my little €1,300 loan waiting for me, and that's it. Exactly. So, otherwise, no big extravagances. No. Yes, that's it. I'm more, how to say, are you depriving yourself today, or not? No. Precisely, I find that I've changed precisely because today, well, when incomes start to increase, they naturally tend to index themselves a bit. Generally, they index themselves too much to expenses. So, I'm very careful not to let that happen, to have a slight increase. Exactly. And this gap, since it exploded, well, that's what allowed me to invest very aggressively in real estate, stocks, SCPIs because it allowed me to have cash, and so today I'm treating myself a bit more, but I remain lucid. My YouTube activity today, we saw €180,000 in revenue. Next year, maybe it will be €800,000, and when you have €100,000 less, you don't know how to react. Obviously, the action plan is to place my short-term cash, working capital needs, in an interest-bearing account. The €3K DCA, €3,000 per month in stock picking on your CTO, legal entity. So, it's your company's CTO, actually. Valuing my portfolio and receiving dividends. That's the famous CTO at the bank and broker. €1,000 DCA in SCPIs in full ownership that you will hold through your company or directly? Exactly. Through my company. Okay. Generating monthly income. Very clear. Have you already chosen the SCPIs, you know, yes, for now I've done €500 on Corum Origine and €500 on Comète. So a small mix between potentially high income with Comète but also a bit more conservative with Corum Origine, which is a bit more historical. €600 DCA per month in crypto to value your cash with more volatility. So here, clearly, it's a bit of risk-taking. Rental income from my apartment, the rent covers the monthly payment. That's great. Seizing opportunities in temporary usufruct of European SCPIs. Very complicated. Placing my cash between 12 and 20% theoretically. So, concretely, can you explain that to us? Yes, there are a lot of technical terms. But roughly, what you need to understand is that when you're a company director, there are optimizations you can make that you wouldn't necessarily be able to make as an individual. Typically, we can invest in SCPIs, so buy in full ownership, meaning you own both the usufruct and the bare ownership. So you benefit from the rents and you are the owner. And well, what I do is that for a short period, I will only benefit from the rents. I'll say, well, I only want to buy the rents for 4 years, 5 years. So today, that's the ideal duration to maximize your IRR. 5 years. So, I will only buy the SCPI rents for 5 years, which will be European. So, first of all, why is it interesting to invest in temporary usufruct of SCPIs? Since it's usufruct that is temporary, it has an expiration date, let's say, because I will receive my rents for 5 years, and after 5 years, I won't be able to sell anything because I have nothing to sell. I just bought the rent for 5 years. And what's good in a company is that when you make a purchase like that, you can amortize it, so pass it as an expense for your company. So, ultimately, what you gain is 25% because that's the corporate tax rate I'm currently at. If someone is at a 15% corporate tax rate, they will gain 15% on the amortization they will have. Let's take an example. If I invest €5,000 for 5 years in a temporary usufruct, I will spread it over 5 years. I will have €1,000 each year that will be expensed for my company from an accounting perspective. And so, what I will gain is ultimately 25% of these €1,000. So I will gain €250 in tax credit, in a way, in a company. So that's the first mechanism that will be interesting. And the second mechanism, since I'm buying temporary usufruct of European SCPIs, the tax is already paid in European countries, and therefore I don't have to pay any tax on the rents I receive at that time. If I receive 5% from my SCPI, for example, well, that 5% will not be taxed, and on top of that, I will have amortized it. So, that's what makes a classic SCPI where you might have a 5-6% annual return, well, in temporary usufruct of SCPI, if you calculate your IRR, your internal rate of return, so how much €1 invested in the placement will yield per year, if you calculate that, well, it's between 12 and 20%. And what's great about this type of investment is that it's not correlated with physical real estate. So, if the SCPI, in a way, crashes and the value of the real estate portfolio decreases, so if the SCPI share is revalued downwards, for example, it doesn't affect your investment because you only bought the rents. So, that means the only case where your investment will yield less is if the rents are lower. If we consider large SCPIs, I don't know, on the Champs-Élysées, etc., presumably the rents will be paid. Magnificent. And so, your question for an independent entrepreneur, is it really useful to create a holding company to invest rather than investing directly with their operating company, which is what you are doing here? Exactly. I think what the video we just made demonstrates is that you've thought through the structure quite well. I don't get the impression there's a lot of fat to be trimmed. What I would tell you simply is that today, you might want to continue this activity, but one day, you might want to sell it. And in that case, you'll have an issue with seeing things leave and ceding others. The holding company that would be placed here, you see, above, that's it. Between the, between Axel and the, so it's 100% Axel, it would orchestrate all your finances. There are many scenarios. What is certain is that paradoxically, and we see it currently with the political climate, perhaps it will be less and less interesting to have a holding company, and we will return to a scenario where owning assets directly will become more profitable because there is a kind of headwind. So, to be continued, for now, I think you're making exactly the right choices. However, the day you want to sell your business, well, I think it will be worth anticipating. Especially since you can do a contribution-cession. Well, there are many things you could do. And if I've learned one thing from all the cases I've seen, the more you anticipate, the better you are. And here, my advice is very simple: don't play with ChatGPT. You can ask for its opinion, but go see a lawyer, they will give you the answers. You'll have €1,000 for the thing, and at least it will be done properly. Thank you very much, Axel, it was incredible to have all these details. And we'll put all the links to the content, Axel's website, well, Fiscalité and all his services. And maybe see you soon for the continuation of your wealth. Thank you, Moun. See you soon.