Ep #281 – David Osborn – Author of Wealth Can’t Wait

Here is some of what you will learn:

Why multifamily is the best asset class you can own
Understanding market cycles
The importance of Hal Elrod’s book – Miracle Morning
Problems vs quality problems
How to hire great people
Going big by managing big

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Full Transcript Below:

David Osborn – Author of Wealth Can’t Wait on Best Asset Class To Own (Ep281)

Rod:   Welcome to another edition of “How to Build Lifetime Cash Flow through Real Estate Investing”. I’m Rod Khleif and I’m thrilled you’re here. And we’ve got a real treat today. The gentleman’s name is David Osborn. David started investing with his mom and then in less than 10 years built one of the top real estate brokerages in the country. In fact it’s the 20th largest real estate company in the country with over two thousand agents, five billion plus in sales, the guy’s a freaking rockstar he’s done thousands of multifamily units it’s got somewhere between eight hundred and a thousand units plus. He’s an author and a co-author with someone that I admire greatly. So I’m really grateful to have him on the show. David, welcome to the show my friend!

David: Thanks Rod, It’s good to be here with you today.

Rod : Absolutely and you know I thought we were going to be talking about the book that you co-wrote with Paul Morris who I’ve had on the show, which is an awesome book called “Wealth Can’t Wait”.  And you guys know if you’re listening that I don’t really promote much stuff. I don’t have advertising in fact I rarely endorse anything but I absolutely will endorse this Wealth Can’t Wait book and frankly I know that I’m gonna endorse the book we’re gonna talk about in a minute as well. Because, well you’ll find out in just a minute but, David talk about how you got started in the Real Estate business because there’s such an incredible story. You know from where you started to where you are now if you just take a few minutes and kind of give a little background.

David:  Sure, so my dad was a soldier a Green Beret Colonel. He used to call himself a trained killer so when he retired, he says there’s not a lot of work for trained killers. He loved it, we were seven generations of soldiers in America going back. In fact, until the Gulf War my family had fought on every war ever the American and I saw on both sides actually at the Civil War as well so we were just a martial family, a lot of military people in the family fought. You know in the war of Independence too. So my dad, obviously was eager for my brother and to follow his footsteps into the military. After he retired my mother got into Real estate, she had been a stay-at-home mom which as an officer’s wife is a full-time job in addition to raising the kids and she got into real estate and pretty quickly she was massively successful, she became the top agent in her company. This is back before cellphones, before even fax machines, before barely computers. They were involved, but they were barely involved in the process. So being a top producer back then you were limited by those technologies to not doing very much. But in no time at all, she was making more money annually than my dad ever made. I mean 30 years in the military doesn’t pay that well, it’s obviously very rewarding and other factors in other ways. So when it came for me to choose a career, I had a choice between becoming yet another trained killer or Real estate and I was always partial to, you know to Real estate when my folks were. When I was in high school my folks bought for rental property. It was right before the crash of 1987 and so their partner in those homes faded out. So my folks ended up with four rental properties around Austin and I used to go mow the lawns on those properties. I used to have go collect rent sometimes, we had a, you know one of our properties had a meth lab in the Attic. But we didn’t know it then since that it’s been torn down that property but I had to go talk to that guy and ask him to move some stuff off the other side of the duplex. You know a lot of interesting things that come with real estate. You know angry dogs and my dad used to pack heat sometimes when he’d go talk to people and all that kind of stuff. But I loved it, I enjoyed it very much. So when it came between a choice of the snow army or a real estate I decided, you know ultimately after some soul-searching to go into Real Estate. And it was a great move, my mom happened to be the fifth agent at Keller Williams. And Keller Williams now has 180 thousand people in it so I joined her, and her team in 1994. Sold houses for three years and after three years I decided to start opening franchises. Long story short, became the largest franchise owner in Keller Williams combination of some skills lots of really good mentors and a lot of good luck as that company grew, I grew with it and today we are, as you mentioned we’re actually in the top 10 largest Real Estate companies.

Rod: No kidding! Holy cow. How cool is that?  Wow, how exciting. That’s incredible and you know, I think  what I admire about you and in Paul Morris, You’re cohort there and that you guys give back. It’s not just about you know, going out there. And in making money which you are obviously very very good at and adding value but you’re about also adding value through giving back in your writing. And like I said, I mentioned you guys listening. I mentioned this “Wealth Can’t Wait” it’s such a cool book because I think what it does is, it encapsulates lots of other strategies and thoughts and profound knowledge in a very easy to read format. And like I said, I had it by my bed for probably a month or two and I’d read a chapter a night and I’ve got thousands of books. So that’s saying a lot, because I was so impressed with it. Like I said I can’t stress that enough. But you know, I know that you’re also in multifamily. That you know, you’ve done a couple of thousand doors and that you’re still in somewhere between eight hundred thousand doors and how do you feel about multifamily in general? I know how you feel about the market where it stands right now but as an asset class and as an opportunity what are your thoughts on it?

David :  You know I love Real Estate and always have, simply because you know that my favorite saying is “Don’t one of them is don’t wait to buy Real estate, Buy Real estate and wait”. And no matter what Real Estate asset class you’re in, if you can hold out for the long-term real estate always goes up. It may go down in some pockets but generally speaking the overall trend is appreciation of Real estate especially in the right areas. So I mean, I love multifamily. Multifamily, in my opinion it’s probably the best asset class you could possibly own. It got so many, you know my favorite.  One thing I look for in Real estate is multiple exits, multiple ways to manage. If you’re industrial you got one or two tenants. If your office, you might have Tiffany tenants but any one of them can have a massive impact on your business. But when you’re multifamily, you have one hundred, two hundred, three hundred tenants. One of them is not going to change your destiny, your economic outcome.

Rod:  Right.

David: So multifamily I think is, probably the best asset class. The only thing right now as you know, it’s really really red-hot. Which makes it maybe not the best asset because one of your goals in life should be, to buy lower and sell higher. People say “buy low sell high” that’s not true. You just want to buy in the bottom half of the clock and sell in the top half of the clock if you try to wait. To buy it six and sell at twelve you’ll never make a move because no one ever knows exactly when six is. And no one ever knows exactly when twelve is.

Rod:  Right.

David: But it’s harder in multifamily right now.  Which is why, I like single-family so much because I think if you buy a hundred single families in a similar area it serves a lot like a multifamily.

Rod: No I don’t disagree with you at all, and I had what I call a seminar in 2008. Because I had 800 houses and multiple apartment complexes and I didn’t buy in his same area. That was a screw-up and so logistically it was unfeasible and I crashed and burned. I lost fifty million dollars in oh wait, because I had houses two hours one direction, two hours the other direction and logistically it didn’t manage well. And that coupled with high taxes and high insurance here in Florida, wind and flood insurance. But the big thing was the logistics of the maintenance. You know if we, if I sent somebody out to do a maintenance ticket on a house, it might take him an hour to get there. He might go see what was wrong. They need to have to go to Lowe’s or Home Depot to get parts come back. Maybe he go back to Lowe’s or Home Depot if there was, you know if he needed more things. And what would take 30 minutes and an apartment complex could take all day in a house and you multiply that times 800 and then what happened in ‘08 I crashed and burned but I completely agree with your assessment. If you’ve got a hundred houses and they’re geographically close to each other so you can manage them effectively. I couldn’t agree more they’re a great asset to own.

David:  It was a once-in-a-lifetime deal too, that took out a lot of get up. That was, if you were pressing up in 6, 7 and 8 you just hit a hundred year storm. A thousand year storm.

Rod:  Thousand years storm. Yeah I agree, where do you feel like we’re at in the market cycle?  I’d love to get your opinion and what do you think gonna happen?

David: I think it’s at the top. Everybody thinks it’s at the top. I’m still buying, you know I think I’ve never seen so many people convinced that we were at the top of the market. I was looking at the Economist Magazine yesterday in Barnes & Noble and there it was right on the front of the Economist. Like what how bad is this recession gonna be? Well normally, people don’t telegraph recessions that clearly. That’s the only thing that gives me hope is the majority of people are generally wrong, so maybe we do have a few more legs left in this but..

Rod: Right.

David:  For sure it seems like we’re nearer, that really near the top. If not at it, I also own a large Real Estate company. So I get to get feedback in sales from all across the country and I’m telling you, it’s slowing down right now and I have people, you know the NAR studies are slowing down. So rates are going up, it’s usually a good time to be selling when rates are going up and I’m not really a seller. I like to buy and hold for the long term, so it’s hard for me to sell.  But I think we’re near a top, but you know that’s the great thing about. That is in, as you peek and you crest and you go down, the opportunities get better. So it’ll be a little hard for a little bit, but the marginal investors and the marginal renters, home buyers. So the marginal investors will get pushed out, the marginal home buyers will become renters. So in a softening market if you can hang out for the first year or so it usually gets better.

Rod: Sure it does. And when crisis comes opportunity and it may now be a crème, may not be a crisis but they’ll certainly be opportunity and you know I’m telling my coaching students you know “keep your powder dry” you know, make sure that you know when you’re speaking to your investors to forewarn them. That it may seem scary, but that’s the best time to buy. Bottom line, and if you pre-frame your investors that way. Then you know they’re ready. You tell them you’re just getting ready, this is getting ready and but, no that’s why…

David: We are not away because there’s not these zero got a loans, right? These guys are not leveraged at 99% on every property. They’re doing which is what they were doing before. Like it’s, I’m still buying a lot. It’s still hard to get money on these things.

Rod : Alright.

David : Easy at all and I have a very low leverage on average in my property. So they haven’t been as willy-nilly with the money as they were last time.

Rod: I couldn’t agree more it’s much more difficult to get financing. So, it’s I want to circle back to something you said just because they’re resonated with me. You talked about your mom inspiring you to get into Real estate. Same thing happened for me in my example, my mom bought the house across the street when I was 14 for 30 grand and when I was about to graduate from high school it was worth 20 grand more than that and that was my  tipping point to get into Real estate so it kind of resonated with me. So do you live in Austin? is that where you? is that your home base?

David : Yeah, I live in Austin but I do deals all across the country. I prefer the Sun Belt like many people, so yeah I love Austin. It’s a great city to live in, I do some around here but well, a decent amount in Austin. But I would say, it’s less than half of my acquisitions and efforts.

Rod :  Right. Yeah, well that’s smart. I mean you know there’s 80 million people getting older and colder so you know it’s prudent to be investing in the southern states in my opinion. So I wanted, so let’s segway into you know, I was telling you before we started recording that I’ve given away probably three, four hundred copies of Hal Elrod’s book the “Miracle Morning” and I give it to my coaching students. It’s one of the things they always get. In fact I’ve got a coaching student that has done that every day. I think for just over two years and of course he’s a Rock star.  His name’s Powell, he’s an awesome guy. He’s gonna love it, that I gave him a shout out here. But yeah, so you know I’m a big proponent in that but let’s dig into what that books about and then let’s talk about kind of the book that you wrote with him.

David : Yeah, so Hal’s concept, and Hal and I are good friends. Our kids go to school together and Hal’s concept is get up one hour earlier, have that hour to yourself , spend ten minutes doing the savers of you, know six times six different things, silence, affirmation, visualization, exercise, reading and scribing. So it’s a great tool, I mean I’ve been using it. I can’t say I’ve done it two years in a row like Powell. was it Powell?

Rod : Powell.

David :  Yeah, no house but for sure the days that I get up and get my Miracle Morning and get to my reading chair, scribe, read, visualize, pray. You know silence for me, as prayer is the same thing.

Rod :  Right.

David : Our better days there, are days that go well and the more of those six things I do that the better is tend to happen that day and so I’m a big fan of it. I’m a big proponent of it. You know when you’re an a-type personality and you read that book the first time, you’re like get up an hour earlier ( geez! ).  Alright, what’s..

Rod :  Great.

David : You know? about that I get up at four o’clock everyday or five o’clock anyway

Rod :  Right.

David :  But then, when you really dig into it. It’s not just about getting up early, it’s about owning the morning and if you own in the morning, you can own the day and it’s starting earlier. So you can settle down not be reactive to life but be in action towards your goals proactive. My dad used to hate the word “proactive” he said it doesn’t exist. It’s either action or reaction. But so it’s about being in action right? So I use a lot of tools in that, in fact the other day, one of my kids called me and she was struggling with something. I coached her through it using the idea of visualizing the miracle morning, like seeing yourself in a power state right when you walk into this difficult situation and she did it. And called me later and said “man that was awesome it worked like a charm and I had an incredible the rest of the experience was really good” and again it’s just this idea of pausing settling yourself down and setting yourself up to win the day. And that’s what made me.

Rod : Can we go through those six things a little slower? I know exercise, for sure is one of them what are the other ones again?

David :  Yeah, so it starts with silence.

Rod :  Silence.

David : So to me that’s prayer. Because I like to pray a lot, sometimes I’ll meditate but I’m better at prayer than meditating. Secondly is affirmations, it’s gonna be a great day. I’m gonna have great meetings, I’m gonna look after the people correctly. I’m gonna serve the people in my community. Whatever you want to say in that area affirmation. Some people say I’m great or whatever, I’m smart, I’m intelligent that money comes to me. I don’t usually do that but I talk about the people I’m meeting and what’s about to happen in a positive mindset visualization which is seeing things going your way so for instance, I have this little. I think I learned it from Tony Robbins many years ago but if I’m going into a meeting and it’s important I visualize sort of a blue circle, right in front of the door of where that meeting is and when I walk through that circle I feel myself being uplifted and empowered and so on and so forth. And so I’ll do that, and then when I walk into that meeting I have that memory, that positive memory and then it’s exercise which you can by the way download a program called ten minute exercise or something. It’s pretty intense, it’s not very long obviously. Reading, scribing or the other two so always..

Rod :  Read a good book for a period of time, ten minutes. Okay, Yeah.

David: And then scribing right in your journal.

Rod :  Just journaling. Yeah, I tell my students  just journals some magic moments, journal what’s going on in your life. Fantastic! you know guys, when you set your day up like that, you know and he’s talking about visualization and a piece that I do in my, and I was showing David my vision boards that I look in almost daily is you know I’ll be grateful for and you call it prayer. Whatever you know, whatever works for you I’ll be grateful for the things that I have in my life at first and then I’m grateful for things that I want as if I already have them. Which is you know, like manifesting prayer. So, awesome.  So it’s called miracle morning for millionaire correct? The book  you wrote with? Hell that’s awesome.

David : So Helen and  I wrote this together and he’s got a series of books. So it’s the Miracle Morning for Students or for different. You know recovering addicts different things one for millionaires and all we did was we tweaked in this idea that when you are doing your reading for instance instead of reading a book you might read your your journal so I have I’ve got my goals here I’m an extremely goal driven person

Rod : I love that! love it.

David : One thing I do is read my goals as often as I can, right? And so one thing that even seen Millionaires and Non Millionaires is that, millionaires are always extremely purposeful, successful people are always purposeful. So can you use that extra hour in the morning not just to win the day but also to align yourself that day with the goals and the outcomes and the purposes that you’ve set for your life. And the more purposeful you are in life, the more outcomes you tend to get to go your way. So that’s what we did, we did the visualizations around the meetings, the visualizations I agree with you that you should see yourself as abundant before you are like be grateful for what you have and what is gonna to come to be. There’s a certain like mental state that has to proceed success in life.

Rod : Gratitude.

David : Gratitude and acceptance of being successful. It’s not that easy to be successful,  everyone thinks it is. You look at it like, oh you know there’s two kind of money problems in life. Not enough and Too much. And you know, too much money isn’t as easy as people would think it is. There’s a lot of people that you know, there’s a lot of challenges you have around. A large business, a large number of employees, a large and that has it. So then getting comfortable with that visualizing, that going well having covenant relationships with your key people. So that you take really good care of them, as they take really good care of your business and all your employees. Frankly, having everyone in a culture that is abundant is all part of this mindset you can set up in the in the morning.

Rod : And I love it, I love it. And just as,  aside to what you just said there are problems and there are quality problems and I like to work towards having quality problems  and I think you do as well. So let me ask you this, because you know this is a good question to ask you. If you could teach school children one thing that you know what might it be?

David :  Yeah I mean, I’m super happy. I’m really happy with the school my kids at which is called the Acton Academy. But I would teach them how to start a business from scratch using their creative skills I think so. Soft skills are way more important today than hard skills. Now we need plenty of scientists and mathematicians. Don’t get me wrong, so that’s the stems. But if you’re not inclined that way, which I never was. Then you need to learn how to work with people, sales is a really really good skill to have. Communication is a really, really good school. I got my nine-year-old in not stand up, what’s that called? Where you have to make jokes all the time on a running basis anyway.

Rod: Oh!it’s a kind of bad living kind of thing.

David : Bad living exactly. What’s that called?

Rod : Oh God, what’s the name for that? I know what you’re talking about.

Yeah, it’s where comedians will start a story someone else has to finish it.

David : And you’re never allowed to say no. It’s always got to be a positive add on

Rod :  Love it.

David :  So I think those kind of skills and then my school also has a business fair. Every year the kids create a business. If they choose every year, this year my daughter and two of her friends are doing painted rocks. So they’ve been painting a bazillion rocks, we keep a budget. They’re having a good time and then they’ll go to this fair where adults will show up and hopefully buy a bunch of rocks.

Rod:  I love it. So let me ask you this, you know if you were gonna go back and tell your 20 year old self something. Is there anything that you might say or do differently? or coach your younger self on.

David : Yeah. I mean, I was a rebel without a clue at 20. So 20 was a tough age, I was full of energy and dumber in Iraq. I used to call myself a spaceship without a pilot but what I would say is settle down, be clear on your purpose, think really hard about what you want in life and start going after it. Even if what you want changes, even if what you don’t get what you want. The sooner you get into the habit of being purposeful, like having a purpose. I think having a purpose is really the essence of success and it doesn’t matter whether your purpose is to feed the homeless, or shelter the homeless, or cure cancer, or make a billion dollars. Whatever it is, the key is to have a purpose that inspires you and gets you going. And remember you can change that purpose. That the skill is set, the most important is choosing something and getting after it versus whatever that it is. The it doesn’t matter right? A great plan at a great country, a great community is made up of a bunch of individuals working really hard towards a purpose that they’ve chosen. That inspires them and thrills them and that will create a positive impact in and of itself on society and all the people around them. So choose something, I would say, think less about what you earn and more about what you learn. When you learn, isn’t that important what you learn is, especially at that age. Be around great high-minded people. The better your social circle, the easier life becomes. And if you’re not lucky enough to be born into a good social circle, go find it. There are people, there are all kinds of people out there. Go find somebody smart and successful and offer to work for them for free or for Half Price or Minimum Wage or whatever. That’s the apprenticeship of life and that really is for me. Like the difference in my life, that certain individuals have made, has been massive. So find those people and go work for them.

Rod: I love it. I love it. And guys if you’re not in my big multifamily group there’s 21,000 people in there that want more out of life. That’s a great place to start hunting for people to connect with, that’s just go to multifamilycommunity.com and it’s a direct link to that Facebook group. You know you are obviously an incredible leader David. What’s one characteristic that you believe every leader should possess?

David : Well, you have to learn how to hire great people. I think you have to really master the art of hiring people that fit the role they’re gonna play. And then I think in order to do that you have to master the art of being purposeful and having a very big vision. Nobody great wants to work for somebody with a small vision but nor do they want to work with somebody that has a big vision but has no track record. So you have to do both,  you have to work towards your visions make sure you’re getting stuff done. Make sure you get the outcomes and then you got to be able to create a picture that’s bigger than that person can currently see for themselves. They have to fit inside your world, they have to see a way for them to hit their economic goals inside your world. And then ultimately, you have to understand  a covenant relationship. Like not everyone earns the right to have a covenant relationship, but when an employee shows up and performs at a really high level you should be as dedicated to that person hitting their goals as they are to yours. The right people by the way aren’t out there measuring who’s doing more and who’s doing less. The right people are all in, all the time. And if they’re aligned with your goals, they’re all in for your goals all the time. So make sure you respect and treat that relationship well and try to help them hit their goals.

Rod : Oh! I’ve been furiously taking notes. This is stuff,  that I need. That’s really resonating with me personally. So let me ask you this, what did you have to give up? I mean you’re extremely successful but everybody thinks that,  you know it’s just an easy path. What did you have to give up or sacrifice to be where you are today if anything?

David :  I work twenty years in ten. I mean, when I was in my 20s and 30s I gave up you know, really having a family. I was probably the worst boyfriend ever. I’m lucky enough now to have a family. I started late, I have three beautiful kids, two daughters and a son. But I started late, and honestly my girlfriend who eventually married once said to me “dating used like being in the backseat of your car” because I worked so hard. That’s what I did, I worked all the time and I was very into that. And I said “I’m sorry honey  that’s terrible”. Why do you put up with it and she said every now and then “you put me in the front seat and it feels so nice” so you give up a lot. I mean that work was intense and I was all in for it I loved it. So I’m not gonna say, so I’m not trying to sound like a martyr or a victim here. I enjoyed it, I got a lot of significance from it.

Rod :  Sure.

David :  but I was working the 70-80 hours a week for ten years. And that’s what it took and I got lucky, so sometimes it’s 20 years you know. But I think if you’re willing to put in the time for 10 years you’re gonna win it. Whatever you do.

Rod : No question. Tell me about a defining moment like an epiphany moment for you and your business career.

David : Okay, so I was launching franchises for Kelly Rams up in Dallas and you know I had a agent that I had recruited. I was recruiting agents, recruiting managers, building franchises and I had this agent that I recruited. And she was kind of a superstar. She was doing really well and I was trying, I was doing multiple businesses now. So I wasn’t spending all my time at one. I was working on four and when I first recruited her there, here I was there all the time. That was my first one, and this agent said to me. She said to me “you know David I wasn’t so sure about you when I first met you but now I think you’re a rock-star”. And I thought well what’s happened in the last year. That’s different and what I realized was, I had just been around less. So because I was work around for businesses she hadn’t seen me as much and because she hadn’t seen me as much she thought I was more of a rock star and probably I’d changed but my aha was, I’m only gonna scale this thing if I can work through other people. And I’d hired a great manager finally of that business and I realized it can’t be all about me. If I’m around all the time, I don’t care who you are, people get sick of you, they get bored of you like..

Rod : If you don’t get scale? And it’s hard to get scale right?

David : And Lebron James’s best bud is like, ahh it’s just Lebron, I don’t really care about him right? So you’ve got to have some distance, some separation from all the little responsibilities so that you could go big. So you can’t manage small, you can’t go big by managing small. What I mean is, you can’t be worried about whether there’s toilet paper in the bathroom and build a giant enterprise you have to have the right people that handle all the different levels of the responsibility. And that was my “aha”, that conversation is, the more I’m around the less I’m respected. And the smaller my world is, the broader I build my base, the more great people I hire. And then I just became obsessed with hiring and since then I built my company by.

Rod : Can I circle back? let me circle that back to that. Can you give just a couple of tips for hiring great people from your incredible experience in that realm? Because that helps me and I’m sure that’s gonna help anybody that’s building a team.

David : Well, rule number one is you can’t take a slug and turn them into a superstar. And people tend to make this mistake all the time. You can’t pour your resources into somebody. So here’s the clue,  great hires have us history of being great hires. If a guy comes to you and he’s like “Yeah my last job sucked and my job my boss was a jerk”. What about the job before? “All that one sucked – my boss was a jerk”  what about the one before? “that my boss sucked there too”.  So now I’ve come to you and you’re gonna change my life. In a year that person will be saying you’re a jerk and that job sucked too.

Rod : Right.

David : They don’t change that much. You’ve got to hire the winners, not try to turn somebody into a winner. A person can turn themselves into a winner through a lot of effort and action and learning and coming to your podcast and reading books like I wrote, and different things. That’s a self fulfilling journey, but you can’t take somebody who you really like. It is really sweet and make them into an accountability machine. So the way you hire is, you should be like a therapist, marriage counselor priest asking a ton of questions and trying to find out the history of how that person is behaved and how they’ve behaved historically will be, how they’ll behave for you. So that’s the,  I think the biggest mistake people make is they hire people they like, that they enjoy, that the first “oh this guy’s got great energy they’re just like me”  Well usually, when you’re hiring you don’t want someone just like you. All right, if you’re hiring an accountant you need somebody accurate and detail-oriented. If you’re hiring a sales person, need somebody peppy and willing to go out there and push it. So look at the history of their life, find the right behavior and profile you’re looking for and just remember “Eagles don’t fly alone”. People always see Eagle fly alone but they really don’t. Eagles fly with other Eagles. So if you fill your company with hard-charging hardworking people you’re gonna have a great company. But if you expect to have one great person and for soft kind of not getting stuff done people. Eventually the Eagles gonna fly away in that case they will fly alone.

Rod :  Wow. That was very helpful for me personally, thank you.  So what inspires you? what gets you mean, you’re such a supercharged individual. You’re still pushing forward, you’re still making things happen you haven’t settled. You know,what’s your drivers? Are there’s some quotes you like? or is there a personality trait or a thought process that you have? What motivates you my friend?

David : So, I love, you know my kids motivate me more than anything. But that’s, you know that’s just the hearth that I get to go home to no transformation. Doing things that are difficult, seeing people transform,  seeing people achieve more than they felt, they could achieve helping people become financially free and escape the rat race. These are the kind of things that inspire me, so right now I’m working with probably 10 different individuals and I think at least half of them have a chance of becoming financially free through association with me. Through working on as part of my team, that is really fun and inspiring for me. I love seeing young talent emerging and I’ve got some young people now that are just killing it. I just made an offer to another young guy that I think is gonna be a major difference maker. I like to provide the courage and the framework for people to exceed what they thought they could do without me. And what happens is, a lot of people get caught in. Like corporate environments and that’s a trap. It’s like a gilded golden prison.

Rod :  Right.

David : Ultimately if yeah, it might be good. You get more money now but in 10 years you can almost predict your income scale and in a big corporation if that person will come out and take a risk working with me they’re the right person. They might take a 50% pay cut at the beginning but because they get equity in the upside. If they do well over ten years, they can be so much further than that person caught in the corporate environment. So that’s a lot of fun for me, I love coaching, teaching, I like writing the books. I like making a difference in others lives. The reason I’m still in business, because I don’t have to work really is just because it keeps me engaged, it keeps me engaged with these amazing people and that keeps me sharp and excited and helps me make a difference.

Rod :  I love it. I love it, that’s what drives me as well. I’ve got a wall behind me with hundreds of thank you cards from you know along the same lines. It’s, so you talked about helping someone have courage. What’s the most courageous thing you’ve ever done?

David : ahhm Oh..

Rod : I know I didn’t prepare you for any of these. So amazing how fast you respond to a blown away by how quick you come back?

David : You know Barry, my dad was tough. Like my dad died of cancer, three years nursing him. You know putting it, that really will teach you a lot. It’ll grow you up as a man. Getting married was pretty scary for me.

Rod : Okay.

David : And then, being my son was born and he was in the NICU for five days. That was tough. I don’t know if those require courage or not. But I mean the bravest thing, I mean those are just circumstances you have to deal with right? As tough as they are, I’m grateful for them because it really puts life in perspective but building my business was scary too and you know..

Rod : that’s kind of where I was going with that but I really appreciate you being vulnerable and talking about these major things in your life. You know because there are a lot of people listening to this show that know, they want more they know they deserve more and you know, and I teach the technical side by the, in the podcast. But really 80 to 90% of your success as you know is the mindset, it’s a psychology. It’s actually pushing outside the fear getting uncomfortable and taking action. What would you tell those people that are listening in that place?

David : You know I have a lot of business success. I’ve probably forgotten how scary it was at first and my parents weren’t rich by any means. We were definitely in the middle of the middle class but they were behind me. Which I know, some people don’t have that. So that was nice,  but the thing is you’ve gotta leap man. You’ve got a, no one’s gonna starve, no one’s gonna be homeless. The people listening your podcast

Rod : Right. You’re saying worst case. You’re not gonna be homeless you’re gonna have food .

David : You’re gonna have food, you’re gonna have shelter, you’re gonna have covering. So what have you got to lose, like you’re gonna, you got to either fall into a trap of something you dislike for 30 years being an employee of someone else or you gonna go work for yourself. If you fail, if the worst thing happens and you have to file bankruptcy you still have more skill because of what happened and you can at least go to your,  you know the end of your daily saying “I tried and I failed”. If you never try you’ve got really nothing to lose because even when you fail, you’ll come back a more valuable person to your next employer. Because of the failure, so you know it’s so cliche to say just go for it. Jump out of the nest and just go all-in but honestly the younger you are, the more crazy you should be. I was crazy in what I did and I went all-in but I didn’t have any responsibilities. I didn’t have kids, I understand it’s way harder with all that stuff but every single failure has paid me more than the successes. So I’ve got a million successes that people praise me for and I’ve got a hundred failures that no one can see. That only I remember and one or two other guys but the gift has been in all those failures and that’s what makes you the guy you are. Just like when I said varying my dad and having my son in the NICU.  It’s those kind of experiences no one can ever take away from you. That the kind of character you have to develop dealing with that stuff and it’s not even like you can say “oh I’m courageous I dealt with it in that built character”.  You have no choice, you’re dead. Your sons in the NICU, you’re building character. That’s the only choice you have unless you run away. Same with business,  you have a business failure and it’s the best moments. I know, you know no one would choose them. But it’s really the failures are what make you who you are and it gives you the courage. So the reason I’m able to do bigger and bigger things is because I’ve been through the failures. I realize they’re really not that big a deal, they’re painful but they’re not the end of the earth because there’s always another day and that foundation you’ve created of dealing with the pain, the difficulty, I shouldn’t say pain because really what is the pain? No one’s torturing me, no one’s pointing my fingernails off. I’m just dealing with some challenges and that makes it easy today. To not to kind of laugh at risk in a way that I wasn’t able to do when I was younger.

Rod : No I love it, and I call them seminars and I’ve built 24 businesses myself and many have been spectacular flaming seminars. But you know, it’s you grow. I talk about you know, I got to meet Sara Blakely and one of my masterminds that I’m in and she know she started out with 5,000. Now she’s a billionaire own Spanx you know. Right? and she told me her dad used to ask her, you know at the dinner table. What have you failed at today? And then an awesome question for you.

David :  We’ve copied that. And we actually, I don’t do it every day because I was forget. But I remember my kids played it.

Rod : I love it, I love it. Well listen my friend, you’ve had a tremendous value. Guys go out and get Wealth Can’t Wait, go out and get the Miracle Morning, our miracle morning for millionaires and yeah fantastic books. I highly endorsed them and David, thanks for being on the show my friend.

David : Thanks Rod, its been a pleasure man, shameless promotion there..

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Thank you for listening to the Lifetime Cash Flow Through Real Estate Investing Podcast.

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