Thank you so much R2R for this session. This is the first time I've grasped the full concept of how Tardus' income snowball works, even though I've been in touch with them for a while. Thurman's real life example with the numbers made the process so much clearer. Thanks, Thurman.
Glad it was helpful! Sometimes, real life stories can help us understand how the investment works - we're so happy that it helped you grasp the Tardus Income Snowball. Thurman's story is an amazing one, that can be achieved by investors anywhere!
The issue I see with this cash flow is that it will disappear if you rely on it as passive income just by itself. It needs to keep churning to keep itself going. It you spend it, you run out because there will be no more input. So the rate of return does matter, and assets like real estate need to come into play. Correct me if I’m wrong. I do like this idea though.
You are right. The machine needs to keep churning and once you start layering real estate into the Tardus model the monthly passive income can be explosive. I am Tardus client and Tardus has been godsend for me.
Hi Andrew, you're right, if you kept your snowball going with only the "fast burning fuel" such as the short-term notes, then it would require constant upkeep. Assets like real estate do come into play, later on in your plan. We call these types of investments "slow-burning fuel." At first, you are wracking up cash flow and momentum quickly with the short-term investments, and then you start layering in long-term investments like real estate to make your income snowball self-sufficient. Hopefully that answers your question, feel free to chat with a coach if you need a further explanation! I believe they shared a link in the bio of this video.
How does he handle taxes when the time comes? Is this process not taxable income? Everything has to be recorded to the IRS, I’m assuming he’s paying a ton based off how much he receives.
Hi Cyder, it is taxable, just like any gain but it is not as bad as you would think because you're taxed on the interest earned but not the return of principal. The company you are investing with will provide any relevant tax forms you need to file. Some people who have big tax bills choose to work them into their plan, and others aren't impacted much - mostly depending on their tax bracket, day job, etc. For advanced investors, tax strategy becomes a huge part of their plan.
Great Episode. Thought about Tardus sometime ago and didn't go for it because of some negative comments on some forums. I love the concept though and am thinking of engaging again with them. @thurman - you mention about reading the patent for the income snowball - I was wondering where I can download the patent to give it a read like you 🙂 Thanks again for the great episode to both rent2retire and @Thurman!
Saw a lot of negative feedback on Bigger Pockets forums. So it makes me hesitant. In particular, the prosperity platform for P2P lending ties up your money for 3-5 years. Plus if people default you basically lose your money since the notes have nothing backing them. Even if the risk for each note is 25 dollars, the platform has a 7% default rate. Plus people tend not to pay these debts in recessions, they pay their banks to avoid losing their home first. Tap on the 500 dollar fee a month for a 30 min conversion with Tartus seems steep, and eats any good return you could get. Dont want to be mean, just looking for some constructive feedback.
Question #1: So Thurman injects an extra 5000 per month. Right? I get that his micro-investments accelerate his repayment. But he's simply adding to his basis to pay back his loan. Right? Question #2: If Thurman had 5000 per month in extra savings, why not just save 25k (only 5 months), instead of getting a personal loan that charges interest and reduces his return? Thanks!
Hi Mike and Kathy - #1 - Yes, he's adding his investment income as well as his own contribution to pay back the loan every month. For example, if his personal "injection" was $5,000, and he had $1,500 in investment income - he would be making $6,500 payments on his line of credit. This increases exponentially so he is making bigger payments each time and eventually the portion coming from his investment income outweighs his own contribution. Once he reaches his "freedom date" he can stop contributing his monthly $5,000. #2 - A few reasons, consider the opportunity cost. If he saved up the $25,000 - one, it takes 5 months - so you're missing out on 5 months of returns and growth. 2, once it's gone, it's gone, and you have to wait another 5 months to do it again, and 3, it is stagnant - he would only ever be able to make a $25,000 investment every 5 months, where using leverage he is increasing his buying power and making $50k or $75k or more investments every 3-4 months. The compound effect comes into play strongly here, especially the further out you look. Not to mention, the interest ends up being negligible based on the speed at which you're repaying and the increased return from using leverage.
Great video. What happens if you're having difficulty getting a significant line of credit. One credit union won't allow more than $10k. I contacted wells fargo and they said they just stopped offering lines of credit.
"Keep in mind that this will work with any size line of credit. You can also take multiple smaller lines to apply the same concept. Do you own a home? If so, maybe a HELOC would work for you. The line can come from anywhere and be of any size to apply the same concept. Of course, the best place to go to receive guidance would be directly speaking with the Tardus coaches and community who can guide you on where to find different lines of credit. If one bank turns you down, go to the next. They are out there!"
@@RentToRetirement totally respect your reply and will bring it up to my coach in our first meeting. I'm just stating how I'm a little concerned that my two (and only) preliminary attempts in obtaining lines or credit did not have happy results. For instance, In the snowball model, you would need to increase your line of credit throughout the duration. But with that said, I just hope that I do not have problems finding a significant amount of credit line down the road into my tardus journey.
@techniQ We are here to help however we can. Sometimes it takes speaking with many banks or credit unions to see what they offer. Starting with banks/credit unions you already have a relationship with is the best. Also, as you pay the LOC back, the lender should be able to increase the LOC over time
I’ll stick with real estate via R2R and some VTSAX, some tech stocks. I stop listening after a few mins. The gentleman kept using the term Bonafide, wants to use leverage which is ok but if you can’t explain this Tartus - did you say Tartarus isn’t that hell in Greek mythology. Anyway, Zach made a great save. Heard enough. Thanks Zach!
Thank you so much R2R for this session. This is the first time I've grasped the full concept of how Tardus' income snowball works, even though I've been in touch with them for a while. Thurman's real life example with the numbers made the process so much clearer. Thanks, Thurman.
Glad it was helpful! Sometimes, real life stories can help us understand how the investment works - we're so happy that it helped you grasp the Tardus Income Snowball. Thurman's story is an amazing one, that can be achieved by investors anywhere!
This is a great video! I want that FIRE life. Thanks for the great resources.
Great info, really thinking out of the box!
The issue I see with this cash flow is that it will disappear if you rely on it as passive income just by itself. It needs to keep churning to keep itself going. It you spend it, you run out because there will be no more input. So the rate of return does matter, and assets like real estate need to come into play. Correct me if I’m wrong. I do like this idea though.
You are right. The machine needs to keep churning and once you start layering real estate into the Tardus model the monthly passive income can be explosive. I am Tardus client and Tardus has been godsend for me.
Hi Andrew, you're right, if you kept your snowball going with only the "fast burning fuel" such as the short-term notes, then it would require constant upkeep. Assets like real estate do come into play, later on in your plan. We call these types of investments "slow-burning fuel." At first, you are wracking up cash flow and momentum quickly with the short-term investments, and then you start layering in long-term investments like real estate to make your income snowball self-sufficient. Hopefully that answers your question, feel free to chat with a coach if you need a further explanation! I believe they shared a link in the bio of this video.
How does he handle taxes when the time comes? Is this process not taxable income? Everything has to be recorded to the IRS, I’m assuming he’s paying a ton based off how much he receives.
Hi Cyder, it is taxable, just like any gain but it is not as bad as you would think because you're taxed on the interest earned but not the return of principal. The company you are investing with will provide any relevant tax forms you need to file. Some people who have big tax bills choose to work them into their plan, and others aren't impacted much - mostly depending on their tax bracket, day job, etc. For advanced investors, tax strategy becomes a huge part of their plan.
I’ve been with Tardus for an entire year: i owed about $50.00 in taxes for the year. I did 4 flips
Great Episode. Thought about Tardus sometime ago and didn't go for it because of some negative comments on some forums. I love the concept though and am thinking of engaging again with them. @thurman - you mention about reading the patent for the income snowball - I was wondering where I can download the patent to give it a read like you 🙂
Thanks again for the great episode to both rent2retire and @Thurman!
Since this is a couple years ago, it would be interesting to see what Thurman's opinion is today.
Great info. Thanks for sharing and adding the real-life numbers.
We appreciate the positive feedback!
Saw a lot of negative feedback on Bigger Pockets forums. So it makes me hesitant.
In particular, the prosperity platform for P2P lending ties up your money for 3-5 years. Plus if people default you basically lose your money since the notes have nothing backing them. Even if the risk for each note is 25 dollars, the platform has a 7% default rate. Plus people tend not to pay these debts in recessions, they pay their banks to avoid losing their home first.
Tap on the 500 dollar fee a month for a 30 min conversion with Tartus seems steep, and eats any good return you could get.
Dont want to be mean, just looking for some constructive feedback.
penny doubled every day for 30 days is ~$5 million
My concern is with Heloc and the rising rates banks will freeze them.
who buys the assets? Tardus or us, the investors?
Question #1: So Thurman injects an extra 5000 per month. Right? I get that his micro-investments accelerate his repayment. But he's simply adding to his basis to pay back his loan. Right? Question #2: If Thurman had 5000 per month in extra savings, why not just save 25k (only 5 months), instead of getting a personal loan that charges interest and reduces his return? Thanks!
Hi Mike and Kathy - #1 - Yes, he's adding his investment income as well as his own contribution to pay back the loan every month. For example, if his personal "injection" was $5,000, and he had $1,500 in investment income - he would be making $6,500 payments on his line of credit. This increases exponentially so he is making bigger payments each time and eventually the portion coming from his investment income outweighs his own contribution. Once he reaches his "freedom date" he can stop contributing his monthly $5,000. #2 - A few reasons, consider the opportunity cost. If he saved up the $25,000 - one, it takes 5 months - so you're missing out on 5 months of returns and growth. 2, once it's gone, it's gone, and you have to wait another 5 months to do it again, and 3, it is stagnant - he would only ever be able to make a $25,000 investment every 5 months, where using leverage he is increasing his buying power and making $50k or $75k or more investments every 3-4 months. The compound effect comes into play strongly here, especially the further out you look. Not to mention, the interest ends up being negligible based on the speed at which you're repaying and the increased return from using leverage.
@@TardusWealth That was helpful. Thank you!
Did Thurman quit Tardus?
My flips are 5k so you need to have a high monthly cashflow
So basically you have to have a ton or cash..not really for the paycheck to paycheck class.
Melissa, you don’t need 5k. You can start with as little as $700 per month. I’m a Tardus client.
@@tamarajefferson2472 you do not. You can start with as little as $700 per month
@@TiffanyChohfi do you start with 700 a month, how much do you add monthly or do you add any at all?
Great video. What happens if you're having difficulty getting a significant line of credit. One credit union won't allow more than $10k. I contacted wells fargo and they said they just stopped offering lines of credit.
"Keep in mind that this will work with any size line of credit. You can also take multiple smaller lines to apply the same concept. Do you own a home? If so, maybe a HELOC would work for you. The line can come from anywhere and be of any size to apply the same concept. Of course, the best place to go to receive guidance would be directly speaking with the Tardus coaches and community who can guide you on where to find different lines of credit. If one bank turns you down, go to the next. They are out there!"
@@RentToRetirement totally respect your reply and will bring it up to my coach in our first meeting. I'm just stating how I'm a little concerned that my two (and only) preliminary attempts in obtaining lines or credit did not have happy results.
For instance, In the snowball model, you would need to increase your line of credit throughout the duration. But with that said, I just hope that I do not have problems finding a significant amount of credit line down the road into my tardus journey.
@techniQ We are here to help however we can. Sometimes it takes speaking with many banks or credit unions to see what they offer. Starting with banks/credit unions you already have a relationship with is the best. Also, as you pay the LOC back, the lender should be able to increase the LOC over time
@@RentToRetirement good to know. Thanks as usual!
@@fanatic4hockey Worst case scenario, you can also use your own personal savings and "borrow from yourself" if you have the cash.
I’ll stick with real estate via R2R and some VTSAX, some tech stocks. I stop listening after a few mins. The gentleman kept using the term Bonafide, wants to use leverage which is ok but if you can’t explain this Tartus - did you say Tartarus isn’t that hell in Greek mythology. Anyway, Zach made a great save. Heard enough. Thanks Zach!