Alex Hormozi: How I make $100,000/mo PASSIVE...I am the BANK

The video is about how Alex Hormozi makes $100,000 per month in passive income by being the bank and he explains how he finds and structures deals, while also warning against unethical deals and sharing a successful deal he recently did.

This video by Alex Hormozi was published on Jun 14, 2021.
Video length: 09:48.

In this video, Alex Hormozi explains how he makes $100,000 per month in passive income by being the bank and investing in deals.

He walks through a deal that was sent to him by a wealth advisor that was borderline unethical and breaks down the four lenses he uses to evaluate investments: yield, capital preservation, tax advantage, and equity growth.

He then shares a deal he recently did where he wrote a note for $2.5 million to secure a building out of foreclosure, which had better returns and lower risk than the previous deal.

• Alex Hormozi makes $100,000 per month in passive income by being the bank.
• He explains how he finds and structures deals.
• He warns against unethical deals and shares a successful deal he recently did.
• Alex walks through the framework he uses, which has four lenses that he looks at investments through.
• Alex emphasizes the importance of evaluating deals through the four lenses of yield, capital preservation, tax advantage, and equity growth.

How I make $100,000/mo PASSIVE...I am the BANK - YouTube

Introduction

• Alex Hormozi makes $100,000 per month in passive income by being the bank.
• He explains how he finds and structures deals.
• He warns against unethical deals and shares a successful deal he recently did.

Unethical Deal

• A CEO of a company in their portfolio reached out to Alex because he got an email from his wealth advisor.
• The deal looked borderline unethical.
• Alex walks through the framework he uses, which has four lenses that he looks at investments through.
• The four lenses are yield, capital preservation, tax advantage, and equity growth.
• Alex walks through the deal and explains why it wasn't good.

Successful Deal

• Alex wrote a note for $2.5 million to secure a building out of foreclosure.
• He went through the same framework to evaluate the deal.
• The building had four offers already between $5.1 and $5.5 million.
• Alex offered $2.5 million and a 10% interest rate.
• The deal was successful and now pays Alex $100,000 per month in passive income.

How I make $100,000/mo PASSIVE...I am the BANK - YouTube

Conclusion

• Alex emphasizes the importance of evaluating deals through the four lenses of yield, capital preservation, tax advantage, and equity growth.
• He warns against unethical deals and encourages finding deals that have a high likelihood of capital preservation and a good return on investment.
• He shares his successful deal as an example of how to structure a good deal.

How Alex Hormozi Makes $100,000 per Month in Passive Income

• Alex Hormozi makes $100,000 per month in passive income by being the bank.
• He finds and structures deals.
• He warns against unethical deals.
• He shares a successful deal he recently did.
• He lends money to the guy who is buying the building.
• He gets a personal guarantee from the buyer and the partner.

Factors to Consider When Doing a Deal

• Capital reservation is important to preserve capital.
• Equity participation is not necessary from a tax perspective.
• Yield is important to consider for tax treatment.
• Look for deals to achieve high returns.
• Access to different deals increases as more deals are done.
• Hard money lending is a short-term loan that requires immediate liquidity.

Watch the video on YouTube:
How I make $100,000/mo PASSIVE...I am the BANK - YouTube