Listen to the Podcast Here: On today’s episode of The Real Estate Nerds Podcast, our host and real estate attorney Scott Smith chats with MC Laubscher about wealth creation, real estate strategy, and the ever important investing mindset. MC believes that the most successful investors understand that they are their own most crucial assets. He advises new and seasoned investors alike to invest in themselves and relationships. Tune in to hear all of the wisdom MC dropped on this episode of the Real Estate Nerds Podcast. Description Useful Resources References MC Laubscher on Fear And Being Your Own Most Important Asset MC Laubscher joins Scott to share about his early life and career, real estate debut, and his major insights into investing psychology. [1:00] MC is originally from South Africa, but has been calling the U.S. home since 2001. He is the host of the incredibly popular CashFlow Ninja Podcast, which explains a variety of methods for creating income with a variety of assets, including cryptocurrency. He’s also the Chief Investor and Wealth Strategist at Producer’s Wealth, a wealth creation firm. [2:45] MC describes a typical scenario for new investors: wondering where to start. He and Scott discuss the many anxieties that plague new or transitioning investors. [3:47] MC brings attention to the fact that good investing, and even good living, isn’t all about numbers: “Your emotional IQ is a very big lesson that takes time to develop, especially when it comes to money.” MC believes the “reptilian brain” drives human behavior in many areas, with investing being no exception. [4:45] Both Scott and MC can agree that a person’s headspace is critical to success in real estate, and life in general: “Once you switch from the scarcity mindset to the abundance mindset you start to see different opportunities in your own life. And you start to see them everywhere.” [5:30] The two investors discuss the role of fear in the human mindset. Fear as a reaction to real threats has suited mankind for most of evolutionary history. But the psychological tendency to react with panic at setbacks is misdirected. In Scott’s opinion, “The guys who are really killing it are the ones who get comfortable with fear.” [7:00] “Fear drives most of our behaviors,” according to MC. But he chooses to focus on preparation to anticipate all possible outcomes. MC cautions new investors against hesitating for lack of information: “You’re not going to know everything before you start, or you’ll never start. You’ll just study your entire life.” He encourages realistic preparation when evaluating deals and possible outcomes, so investors can manage risk rather than be frightened away from the game. [9:30] MC points out that there’s never a linear path, but no matter where you are, you can always invest in yourself: “Develop yourself as an asset first. Everything else is just vehicles.” Acknowledging that you are your most essential asset. MC Laubscher’s Ideal Investing Strategy: Tools Any Investor Can Use [10:30] The two investors shift to discussing uncertainty. They agree that regardless of what happens, you can always work on your internal building blocks. Without a solid sense of self, investors are subject to getting caught up in the whirlwind of markets. [12:30] MC points out that financial wealth is secondary wealth in other aspects of life: “The wealthiest individuals and families value creativity, philosophy, principles, values, core beliefs, and investing in themselves and relationships above investing in things.” [14:00] The two investors shift focus to the age-old question of how to get started in real estate. His advice also applies to refining an existing investing method for greater success. MC advises having a clear vision and examining strategy thoroughly. MC gives us his ideas for developing the perfect strategy, which involves positioning yourself as the first and most important asset. Then, you should understand what you do best. Everyone has their skill set and area of expertise, and MC advises investors stay in that sphere. [15:21] MC hits his next critical point about sound investing strategy: “Your strategy has to be aligned with the vision and goals you want, and it has to be focused.” Next, he points out that efficiency is key–and indeed one of the major draws of real estate from a tax standpoint. [17:10] MC’s next piece of strategy involves protection: “You have to make money, you have to protect it, and you have to multiply it.” He points out that many investors know how to make money, but not how to protect it. Risk management goes hand in hand with protection, as well. It’s critical for investors to understand risk in all of its forms–economic, political, market, and institutional. Maximizing every dollar is essential. [18:30] To properly implement a strategy, MC believes investors need an “A-Team” of professionals. These can include attorneys, advisors, CPAs, asset protection specialists, and more. [19:30] Scott circles back to how to maximize every dollar. MC points to tax minimization as one simple method. He gives an example of how to have a single dollar doing many different things in a syndication context. He also shares some tips on cash-flow banking, a way to take advantage of insurance contracts, in the family office context. Tune in to hear his method for cash-flow banking that offers asset protection, tax-free growth and withdrawals, and high levels of efficiency. [23:00] MC gives a real-world example of cash-flow banking, complete with all its moving parts. His point is clear: “Have one dollar do many different things.” In a real estate context, this is possible through cash-flow, appreciation, tax strategy, and many more methods. [26:00] Scott draws a parallel to MC’s techniques and his world, asset protection. He notes that the right strategy will depend on the investor and their circumstances. MC highlights a simple truth: “You don’t have to be a Rockefeller to implement some of the strategies that the Rockefellers used.” [26:49] He gives examples of how strategies can be tailored to any point in an investing career, but points out that you can start small–even as a child. [28:30] Scott asks MC about scaling up. MC points out that he works in wealth creation, not management. For his clients, he helps with not only creating the cash-flow banking systems, but also developing the strategy and bringing in the proper experts. He describes his approach as holistic, rather than focused on income alone. [30:30] MC points out the benefits of flexibility: “Stay efficient, stay on track, but make adjustments along the way.” Given how markets cycle, strategies will inevitably change, even if the approach stays the same. [32:00] Scott asks MC for advice on getting started with MC’s holistic approach. MC responds with the top three books from his reading list. He loves Rich Dad, Poor Dad for worldview and wealth creation. He also likes The 10x Rule for motivation and Becoming Your Own Banker by Nelson Nash for banking information. He believes the principles in these books can help any investor. Connect with MC Laubscher Connect with MC Laubscher through his company website, ProducersWealth.com. You can also reach out to him via YourOwnBankingSystem.com MC has also generously offered to send any listeners interested in reading Becoming Your Own Banker their very own copy, on him. To take MC up on his offer, email him at [email protected]. If you want to learn more about generating cashflow, tune into MC’s podcast CashFlow Ninja. Listener Resources Thank you for joining us on today’s episode of the Real Estate Nerds Podcast. For even more free educational resources on real estate investing and the law, check out the Royal Legal Solutions blog. You can also reach our host Scott Smith directly, connect with him on LinkedIn, subscribe to the Royal Legal Solutions YouTube channel, or join our investor community on Facebook. Don’t forget to subscribe to stay up to date and have the most current episodes of the Real Estate Nerds Podcast directly in your listening library. Every subscription helps us create new, custom content for you. What did you think of today’s episode? What would you like to hear more about in the future? Leave your thoughts and questions in the comments section below, or leave us a review in the iTunes store. We love hearing your feedback, so fire away. Join us again next time for another fascinating investing conversation with investor Paul Moore. Thanks for listening and joining us on our journey to become better investors! Hosted by Scott Smith, Lead Attorney and Founder of Royal Legal Solutions. Schedule your personal consultation now. If you have questions about our content or suggestions for future episodes or guests, reach our podcast team at [email protected]. About MC Laubscher M.C. Laubscher is a wealth strategist, educator, and financial freedom fighter. He is the President and Chief Wealth & Investment Strategist of Producers Wealth. He is also the creator and host of the popular and top-rated business and investing podcast, Cashflow Ninja. His purpose and mission is to help producers and creators create, protect, and multiply their wealth in any economy–without getting ripped off by Wall Street & their governments. M.C. challenges existing societal belief systems and misinformation around concepts such as money, saving, investing, wealth and retirement. He has shared these ideas as a guest on several podcasts and is a regular contributor to Grant Cardone TV, Steemit, Medium.com, Linkedin Pulse, and BiggerPockets.