https://www.youtube.com/watch?v=KNl83INePXI

1 00:00:00.000 --\> 00:01:00.000 what is going on everyone uh today
we're going to talk about a fun topic which is uh i got a message
yesterday from somebody who said uh you know who's dead broke and was
like what do i do all that kind of stuff and so um i think i've talked
in the past i'll probably do another one about when i when i've lost
everything um what i did step by step um to i think the after i lost
everything the next month i did 110 000 in sales um and now sorry not
sales that was cash collected in the next in the next 30 days so like
you absolutely just need skills you can have nothing else in your life
and a beautiful thing is that no government can take it from you no
person can take your skills from you in a divorce um those are always
your own uh which is something that i don't know for some reason feels
magical to me and so one of the things that i've seen as i've kind of
you know moved moved up i'm not saying that arrogantly just you know
just developed progressed whatever um is that the people who i surround
myself with now have more money than the people that i surrounded myself
when i was early on in my career and what's

2 00:01:00.000 --\> 00:02:00.000 ironic is that these people actually
spend less money they they have they have less desire to spend money and
they find ways to acquire things for less money out of pocket and that's
always really interesting to me and so right now i think there's you
know if you were to if you were to look at quote investment
opportunities right um you could you could you know invest in buying a
house so let's say let's say you've got i'll do two scenarios all right
let's say you've got fifty thousand dollars all right and you're like
okay i'm thinking about buying uh a house right and i think for first
house you might only have to put ten percent down i'm not sure it's 10
or 20. i don't remember but anyways let's just say 10 for for sake of
whatever so 500 000 house all right you put 10 down and then you get the
mortgage right you get the liability of the mortgage payment every month
yippee um now if you were to if you were to and let's say that in order
for you to save

3 00:02:00.000 --\> 00:03:00.000 that you've been making i don't know 60
grand a year and you've been saving that for you know five years
something like that now let's look at an alternative scenario where you
um are still making that same amount of money 60 and you saved up 50.
and instead of buying a house you have a long conversation with your
spouse and you say or maybe you don't have a spouse whatever with
yourself and you say i wonder how much money i could get for this money
ah interesting right and so you you you leaf through the businesses that
are in your area and by the way the best way to do that is one you
should contact brokers not necessarily to buy a business but to get an
idea of some of the businesses that are in the area and what price
ranges look like but if you buy from a broker you're going to pay retail
you could definitely negotiate a deal and i'll tell you one of the deals
that i did that was really good at the end of this but uh anyways so
let's say you you know you reach out to some businesses things that you
like or enjoy or feel like you have some specialized knowledge in

4 00:03:00.000 --\> 00:04:00.000 and uh you find out that there's a
business that's doing let's say i don't know 250 000 a year in uh in in
profit right and uh because it's a small local owned business and you're
not going to pay retail for it you get it for two and a half you know
times earnings right which would be uh what's two and a half times uh
it's 525 hopefully i think two and a half no that's 625 excuse me 625
000 is what a business you might pay for a business that's doing 250 000
a year in profit all right now here's where here's where it's
interesting right so i had um an early mentor who who taught me this
negotiation tactic that i've used pretty much for throughout my entire
life since this moment and i used it in the deal that i'll tell you
about in a second which is agree on price then agree on terms right and
so when you when you would go to quote talk to this business right
there's there's the price which you might say cool you know this
business

5 00:04:00.000 --\> 00:05:00.000 625 and then there's terms right and so
the term side once you've agreed on the price you negotiate down
whatever and then you say okay well i'm going to need you to sell our
finance meaning you're not going to pay anything you're paying over time
right i need you to sell or finance uh you know three quarters of the
deal all right and so three quarters of the deal man i'm doing some math
today but like 400 and you know 30-ish 437 whatever thousand dollars um
and you're gonna finance that for you know three years right and then on
top of that or five years you can do whatever you want here i think i
mean you could probably i mean you try and push it out as far as you can
right and then what you have remaining which would be like in this
instance 200 000 then you get a note from the bank right or sba loan
which you have a 200 000 um loan for it and you put your your fifty
thousand dollars down right so then that would be two hundred uh so you
put fifty which

6 00:05:00.000 --\> 00:06:00.000 would be twenty five percent of two
hundred thousand so i'm going to recap this 625 is the cost of the
business you know 437 you get seller finance meaning you can pay that
over time and then you've got two hundred thousand dollars that you get
a loan from the bank so uh which you put fifty thousand dollars for so
if you're thinking about this the guy who's selling the business he
sells for 625 but he's only getting 200 000 up front you're only putting
50 of that 200 and you're taking a loan for the rest of it right um and
so when you're looking at this you've now acquired this business that
makes 250 000 a year right so you upgraded your income from 60 to 250
000 right and within you know 24 months all of that you know income will
be yours and maybe hopefully you'll grow it or you'll probably try and
work extra hard and take over some of the some of the other positions or
cut out some of the waste etc in the business and uh and and so that

7 00:06:00.000 --\> 00:07:00.000 massively speeds you up in life right
and if you compare that to what it would cost you to start your own
business um in terms of investment and like existing book of business
client lists all the knickknacks you have to buy that you don't even
think of zoning permits and all the fees and licenses it's actually
pretty decent deal so um i'll tell you one of the deals that i did that
was pretty good so i had four locations at this point this is one of the
gyms and i opened a fifth location so the first two locations i opened i
opened the first one i think for forty thousand dollars i mean i put i
didn't i put as little as i possibly could in this thing um and it
happened to have been an old gym so there was like turf already in the
flooring was already in it was painted like there was a bunch of things
i didn't have to pay for so i lucked out there um and but the second one
because i thought i was smarter i put 200 we put 250 000 into the second
location and here's the fun thing it made no more money than the first
location did

8 00:07:00.000 --\> 00:08:00.000 uh which i always think is hilarious so
like uh to the undisciplined everything looks like a spending
opportunity uh and so i pretty much would empty my bank account and uh
and so on my fifth location uh my next two locations were corporate
locations which were actually pretty cheap um which was pretty cool
those are those are good deals but the the the fifth location that i did
i had a gym that went out of business or he not out of business he
wanted to uproot because his it got divorced or he had some some family
crisis and so he was looking for someone to buy his his gym and so it
was beautiful it had all this equipment that was really expensive in it
and i was like man this is like a dream come true and so i agreed on
price because i had my mentor talk me through this i agreed on price
which i think was 40 000 i think it was 40 great it was 40 or 50. i
think it was yeah so that's what i agreed and then i was like cool i'll
pay you over the next year and he was like fair enough and so i mean he
didn't say like that we negotiated and then 12 months is what we what we
came to and so i mean i tried to go for 24 months

9 00:08:00.000 --\> 00:09:00.000 uh but he agreed on 12. and so the
beautiful thing with that was i didn't i didn't put any money out of
pocket so you know my first year i put 50 grand in second gym i put 250
000 in fifth gym smarter more experienced me puts no money in right and
in the first 30 days we did 51 000 in sales so this gym in the first 30
days literally paid for itself period right and so this thing that is
now kicking off profit right every month during this during this whole
period of time and then 12 months later i ended up meeting russell and
telling him how i was doing this stuff and he's like you should be
teaching other people how to do what you're doing now and so i ended up
selling the gym for one and a half times more than i quote bought it for
right which i then had the gym pay for it on its own and so i basically
acquired a cash flowing asset for nothing and then had just acquired a
cash flowing asset for for no money and so i think about that um in
light of the original thing that i i mentioned was just like i get i get
people who message me all the time like what what happens if i don't
have

10 00:09:00.000 --\> 00:10:00.000 any money i don't know what to do you
always have to just get skills or this is just my opinion is that
because there's no one who can take them from you there's no divorce
there's no government there's no revolution there's no financial crisis
that can ever take your skills from you and that's why when
entrepreneurs hit zero they can usually bounce back i've done it i had
eleven hundred dollars in my bank account um at one point at my at my
lowest point after i had six gyms right um after this so even when i had
this experience and it sounds cool like i messed up and um you know
that's why i think i love to say you only should only have to get rich
once and um and that's why people who are wealthy are more risk averse
because the downside risk of losing everything is always bigger right
like you can reverse 30 years of great decisions with any number
multiplied by zero any number multiplied by zero you could have a
billion dollars if you make a bad investment it goes to zero right and
so that's why when people are like i don't know why you're motivated and
i don't know why uh there like it's just there's there's

11 00:10:00.000 --\> 00:11:00.000 just always things that can happen you
know what i mean and so just being risk averse is what i have noticed
from the people who have the most money is that they actually have way
lower risk tolerances than the people who have no money uh which is
hilarious because it's like the people who have the least amount of
money uh then go buy lottery tickets which are literally the worst
investment you could possibly make and and and they they consistently
invest their money in a terrible investment that has all the downside
risk of going to zero whereas the richest people in the world find
things that could never go to zero and they buy them for zero so think
about that for a second people are using their money poor people use
their money to buy things that have virtually guaranteed you know risk
of going to zero right with tiny risk of of upside right whereas rich
people buy stuff for zero dollars that have um upside potential but that
doesn't that doesn't have a billion dollar upside potential they would
rather have a

12 00:11:00.000 --\> 00:12:00.000 guaranteed small return with no risk
than a potential for huge return with guaranteed risk think about that
so uh anywho i think if over time and it's not like you can shift your
perspective on this overnight it took me a long time and i still am
doing it now um in shifting how like because i still get excited about
you know i see these you know these these these cryptocurrencies 20xing
and stuff you know in like a month and i'm like man that's crazy um but
then i also think like well the downside risk of me going to zero is far
more upsetting to me than me getting 20 times more on some tiny
investment that i would make um and so i i don't do it right and so
anyways um i say all this to say uh agree on price agree on terms try
and get something for nothing see if you're gonna if you're gonna make
an investment in any kind or you're trying to start a business there's
usually a business that's already for sale or has a motivated seller an
owner who doesn't want to do it anymore who almost give it to you for
free

13 00:12:00.000 --\> 00:13:00.000 right and that's the thing is when
you're new you're getting so excited but you're not patient right that's
why you have to have the character traits of being successful before you
will see the success because if you if you have that character trait
you'll look and you'll say i can take six months because in the in the
decade of my in the next decade of my life there's no rush but me making
a good deal or a bad deal of like should i put all my investment in this
thing or should i be able to get something that makes four times more
money for free you can do that you can do that and i'm telling you i
talk to business owners every day i mean guys making a million two
million four million dollars a year who literally have told me they're
like dude if someone came today and offered me like guys who are making
a million dollar a million dollars a year in profit like if someone had
offered me 200 grand right now i would take it i just i'm so tired of
this business so like there are opportunities they're just not listed
anywhere you just got to look for them right and that's the thing no one
will do it because it's work so but the good news is that if you have a
little bit of work ethic you can make a tremendous amount of money with
very little risk and do it the way

14 00:13:00.000 --\> 00:14:00.000 the rich people that i know do it so
otherwise have an amazing day keeping awesome i'll catch you guys upside
bye
