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Speaker 1: Well, let's let's bring our guests up, can we please?

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Speaker 1: Hey man, how's it going?

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Speaker 2: What a show I came into? Huh fed cheers which

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Speaker 2: win your self profits? What's going on? Guys?

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Speaker 3: Hey brother?

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Speaker 2: How are you? Mister may I'm doing well? Thank you guys.

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Speaker 1: Yeah. Man, Mikey Taylor entrepreneur, investor, former professional skateboarder turned

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Speaker 1: civic leader. He built and exited and nationally recognized Brory.

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Speaker 1: We're gonna be talking about that, selling a company, transitioned

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Speaker 1: into commercial real estate and private equity, etcetera, etcetera, etcetera.

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Speaker 1: Extremely accomplished athlete now an extremely accomplished entrepreneur an investor.

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Speaker 1: Thank you for joining us, Appreciate it.

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Speaker 2: Thank you for having me. God's been good.

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Speaker 1: All the time.

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Speaker 2: How thou treating you?

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Speaker 1: Man?

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Speaker 2: You know it's it's busy right now. It's going well though.

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Speaker 2: We got it under We're doing a pretty good job.

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Speaker 2: We're saved for clean, got good jobs. We're just trying

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Speaker 2: to maintain and push forward.

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Speaker 1: Amen. So I want to we're going to talk about

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Speaker 1: your transition from an athlete to entrepreneur, but I want

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Speaker 1: to just go right into it as far as your

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Speaker 1: decision to actually uh, well, the idea right as far

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Speaker 1: as going into entrepreneurship, your company got it acquired. So

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Speaker 1: we just actually, this is perfect time because we just

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Speaker 1: got finished talking about selling, like when it's when to sell,

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Speaker 1: when to sell a stock, but also like you know,

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Speaker 1: very few people have insight on when to sell a company.

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Speaker 1: So what was the thought process in selling a company?

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Speaker 1: Can you walk us through that journey?

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Speaker 2: Yeah, So, first and foremost, we had investors. So anytime

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Speaker 2: you're going to bring on investors, you're going to have

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Speaker 2: to answer the question how are they making money? And

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Speaker 2: you're either going to build a business that pays a

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Speaker 2: dividend or you're going to build a business that exits.

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Speaker 2: And so what we did was we got a handful

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Speaker 2: of offers on the table, and then we had to

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Speaker 2: make the decision on if we should take more capital

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Speaker 2: to grow the business to a larger position than to

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Speaker 2: potentially exit in the future. And that calculation just didn't

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Speaker 2: really make sense for us. And secondarily, we were looking

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Speaker 2: at the industry, and at that time in the beer industry,

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Speaker 2: all the big giants, your miller cores, your anheusers, your

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Speaker 2: consolations were buying and so we definitely were concerned that

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Speaker 2: once the big players stopped buying, the multiples went down,

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Speaker 2: and so we made a calculated decision, and then in hindsight,

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Speaker 2: we were correct at the timing side. So sometimes it's timing,

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Speaker 2: sometimes it's luck, and sometimes you're able to see some

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Speaker 2: of the data and then make a maybe educated decision.

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Speaker 4: Yeah, after you make the exit, right, a lot of

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Speaker 4: times people are looking for the next company to build.

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Speaker 4: You kind of made a pivot and went into real estate.

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Speaker 4: Like what was that process like for you?

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Speaker 2: All Right? So I know this is a little bit contrarian,

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Speaker 2: but I was a little bit scared of lightning striking twice.

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Speaker 2: And we went into an industry where we were a

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Speaker 2: little bit of disruptors, and we found a model that worked,

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Speaker 2: and then a lot of the other companies came in

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Speaker 2: and started using it, so over time it it wasn't

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Speaker 2: special anymore. And so I was definitely scared that if

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Speaker 2: I did it again in the beer space, I was

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Speaker 2: going to flounder. So I just switched it, went to

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Speaker 2: another industry, tried to take that model into something nobody

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Speaker 2: had seen before, and then all of a sudden, it

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Speaker 2: was blue ocean again. So that was more my framework.

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Speaker 2: I was just scared of doing the same thing twice.

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Speaker 1: Well for before you asked that question, because that's actually it.

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Speaker 1: So that's what you just said. Ian as far as

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Speaker 1: if you option trading, don't try to run a gambit

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Speaker 1: of hitting lightning in a bottle twice, right, taking put

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Speaker 1: to a more conservative index funds. So across disciplines, there's

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Speaker 1: a lot of the same practices. So I just wanted

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Speaker 1: to kind of highlight that because that's actually in line

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Speaker 1: with what you just had mentioned earlier.

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Speaker 2: Ye. Look, at the end of the day, investing should

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Speaker 2: be boring, right, we just want to make it exciting.

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Speaker 2: But when you guys are talking about your buy sell disciplines,

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Speaker 2: at what point am I a seller? It's really important

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Speaker 2: to establish that and then hold to it. If you

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Speaker 2: just do that, you're gonna look back. You're gonna be

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Speaker 2: in a pretty good spot.

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Speaker 3: Why do you think most people don't stick to that

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Speaker 3: discipline of when to exit? And for you personally, what

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Speaker 3: happens as an athlete? Did you have that made you

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Speaker 3: incredibly successful as an entrepreneur? That carried over?

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Speaker 2: Okay, so why don't we do that? Because we're human

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Speaker 2: and you know, we see opportunity and we get dollar

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Speaker 2: signs in our eyes, we want more, and that's just

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Speaker 2: something we have to fight, is that side of us.

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Speaker 2: For me as an athlete, you know, Number one, I

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Speaker 2: was doing something I loved and I didn't want it

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Speaker 2: to end, but the reality was it was going to end.

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Speaker 2: And how I looked at it was I had sponsors

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Speaker 2: that paid me while I was relevant, and I just

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Speaker 2: felt like they controlled my future, and I did not

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Speaker 2: like that feeling. It's probably similar to just having a

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Speaker 2: job and your boss basically is the decision maker on

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Speaker 2: your future, and there's something that's uncomfortable with that. And

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Speaker 2: so I just tried to put myself in a position

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Speaker 2: where I didn't have to rely on my sponsors anymore.

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Speaker 2: And really what that meant is if I can move

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Speaker 2: out of a position where I was completely dependent on

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Speaker 2: income and start owning assets that eventually paid me, well,

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Speaker 2: I felt like I was taking power away from them

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Speaker 2: and putting them into kind of my future, which I

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Speaker 2: love that feeling once I accomplished it.

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Speaker 1: So you led a life that you can write a

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Speaker 1: book on, you know, your legendary professional athlete in the

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Speaker 1: realm skating, then you you know, had a business that

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Speaker 1: was actually successful enough to actually exit. Then you start

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Speaker 1: to invest in real estate and now you're the mayor

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Speaker 1: of a city. I am, so, how'd the politics thing

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Speaker 1: come into play?

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Speaker 2: That's a good question. Huh. We're going to get to

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Speaker 2: know each other real good huh. Boys, you know the

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Speaker 2: the you know the politics. For me, I was always

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Speaker 2: frustrated by politics. You know, every time I looked at politicians,

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Speaker 2: they didn't seem like real people to me. They always sold,

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Speaker 2: they never delivered. It was completely opposite from what you

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Speaker 2: have to do as an entrepreneur. So I really had

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Speaker 2: no interest in going into that world. But the only

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Speaker 2: caveat is if you get involved in the local level

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Speaker 2: at the city, it's completely different than a lot of

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Speaker 2: the things we talk about or argue about on the

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Speaker 2: national side, because the decisions you're making are things that you,

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Speaker 2: your family, your residents are feeling, and it's actually it

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Speaker 2: is political in some regard, but I mean, think about

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Speaker 2: what we're voting on. It's budgets and sidewalks and real estate.

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Speaker 2: It's things that we actually feel in touch every single day.

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Speaker 2: And so I felt like I would get involved there,

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Speaker 2: but that was going to be my ceiling. I never

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Speaker 2: wanted to do more than this, and so I think

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Speaker 2: that's probably going to be it. I do this run

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Speaker 2: and then step out and keep building more companies.

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Speaker 4: You heard us talking about the new FETCHA. You recently

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Speaker 4: put up a post that Trump's FED pick could reshape

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Speaker 4: real estate faster than rate cuts.

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Speaker 2: Can you break that down? It splaitatility? Okay, so it

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Speaker 2: really comes down now we will see what I will

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Speaker 2: be completely transparent with everyone here on. You don't know

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Speaker 2: what somebody is going to do until they start acting.

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Speaker 2: So if you know, Wash gets in, we'll see. But

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Speaker 2: at least his idea is a little bit different than

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Speaker 2: what the FED has been probably over the last twenty years,

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Speaker 2: which the FED has become the stabilizer. It's like they

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Speaker 2: come in and they go, Okay, how do we protect

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Speaker 2: the market, how do we protect unemployment? And what that

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Speaker 2: means is when bad things happen, they come in and

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Speaker 2: save the day. Two thousand and eight was our most

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Speaker 2: recent well you could call twenty twenty our most recent example,

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Speaker 2: but two thousand and eight was a big shift. And

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Speaker 2: what should have happened is a full blown crash. A

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Speaker 2: lot of those banks should have completely gone under for

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Speaker 2: the decisions they were making, and the FED covered them.

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Speaker 2: And so the new potential FED chair has a different outlook.

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Speaker 2: We'll see if he acts on it. But what it

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Speaker 2: really is is stay out of it and be the referee.

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Speaker 2: I'm not going to be the stabilizer. I'm going to

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Speaker 2: be the referee. And what that means is more potential volatility.

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Speaker 2: It means things could crash. But if things crash, you

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Speaker 2: don't have a lot of bubbles created that are held

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Speaker 2: up by ultimately easy money printing. And so that does

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Speaker 2: mean there's going to be some pain. So I want

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Speaker 2: to be careful in saying this. I recognize pain and

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Speaker 2: that sucks. I don't want things to hurt. But usually

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Speaker 2: what happens is we try to protect pain on the

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Speaker 2: front end, and then we put ourselves in a situation

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Speaker 2: where it's worse for us on the back end. I mean,

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Speaker 2: look at millennials and gen z and ask them how

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Speaker 2: everything's going. They're going to tell you it's not going

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Speaker 2: very well. And I think a lot of that is

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Speaker 2: because we put ourselves in a situation where things are

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Speaker 2: so out of reach for so much of us, so

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Speaker 2: many of us, and I think that's because we've artificially

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Speaker 2: held up the market beyond what it's actually at. That's

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Speaker 2: at least my outlook. We'll see what happens from all

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Speaker 2: of this, though.

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Speaker 3: Do you think we're too far in the rabbit hole

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Speaker 3: to fix the changes in the pain that gen Z

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Speaker 3: may be feeling.

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Speaker 2: I hope not, I really do. I think probably the

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Speaker 2: most fair way to say this is there are some

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Speaker 2: things that could come into play that change everything. Like

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Speaker 2: you're looking at AI and everything going on there, the

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Speaker 2: potential for how productive this could be and what that

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Speaker 2: could mean for GDP growth could put us in a

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Speaker 2: position where we course correct on some of this other

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Speaker 2: bureaucracy and you know, support that we've had. We could

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Speaker 2: right size this thing, that could right size our debt

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Speaker 2: issue that we're struggling with. But I'm naturally more of

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Speaker 2: an optimist. I try to find the potential pathway and

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Speaker 2: focus on that. But there's some things that could come

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Speaker 2: into play that make it worse as well. I just

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Speaker 2: know where we're at right now is not healthy. That's

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Speaker 2: at least my view. What do you guys think? You

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Speaker 2: guys feel like we're in a healthy spot?

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Speaker 3: Well, really quick, you said there's some things that can

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Speaker 3: make it worse. What are some of those roadblocks or

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Speaker 3: financial asteroids that the audience may not be aware about

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Speaker 3: that could make it worse.

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Speaker 2: Okay, so I'm gonna I'll keep this kind of high level.

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Speaker 2: I'll try to make it pretty simple. If you viewed

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Speaker 2: America as US as individuals, we all bring in a

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Speaker 2: certain amount of money, we all spend a certain amount

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Speaker 2: of money, and there's some debt component. Potentially we are

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Speaker 2: spending way too much and we are borrowing like crazy

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Speaker 2: in the inevitable outcome that is bankruptcy. And so there's

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Speaker 2: a choice that we have to make. Right, if you're

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Speaker 2: in debt, you have two options to get out of it.

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Speaker 2: You're to cutback your expenses and put more of your

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Speaker 2: revenue towards paying off your debt, or you increase your

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Speaker 2: revenue and pay more of your debt elsewhere. Right, So

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Speaker 2: it's either growth or pullback for us. I don't think

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Speaker 2: we can save our way out of this. I think

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Speaker 2: it has to be a combo. And we've got to

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Speaker 2: be in a position where we're not giving away the farm.

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Speaker 2: And I think we've just given away too much. We've

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Speaker 2: outsourced everything. So I think that's the that's the challenge.

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Speaker 2: If anyone's a reader in this audience and you know

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Speaker 2: you want to get caught up on this, read Ray

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Speaker 2: Dalia's books, the debt crisis and everything he's forecasting. That

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Speaker 2: is a potential for us that we have to avoid.

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Speaker 1: Well, how do you think that we have an opportunity

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Speaker 1: to get out of that? Because nobody wants to, well,

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Speaker 1: at least the Republicans, they don't want to raise taxes.

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Speaker 1: The Democrats don't want to cut programs, and the Republicans

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Speaker 1: don't really want to cut programs too, if you're really

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Speaker 1: honest about it, because I mean the major programs as

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Speaker 1: far as military and health benefits and things that really

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Speaker 1: really caused trillions of dollars to get taken out, there's

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Speaker 1: no real solution on how to cut that from that.

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Speaker 1: So if we're not going to cut anything and we're

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Speaker 1: not going to raise taxes, I mean, what can we

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Speaker 1: actually do?

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Speaker 2: Okay, So it's actually really interesting that you brought that up,

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Speaker 2: because I would say that has been a recent shift

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Speaker 2: on the Republican party that there's no appetite for cutting

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Speaker 2: programs there either. I think the fascinating part is it's

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Speaker 2: the people don't have an appetite for it. If you're

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Speaker 2: an elected official, what you're supposed to be is a

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Speaker 2: representation of the people who voted for you. And if

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Speaker 2: you ran on a platform of we're cutting, you're not

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Speaker 2: getting elected. And so we're in a tough spot, right,

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Speaker 2: I think, probably knowing that the only real shot is

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Speaker 2: control expenses where they're at and grow our way out.

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Speaker 2: And you know, I think you could make the claim

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Speaker 2: that AI could get us there, but if the politicians

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Speaker 2: aren't willing to do it, the only option is growth.

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Speaker 2: The caveat to that is, are you guys seeing the

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Speaker 2: percentage of people that are moving into the Independent party? Yeah,

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Speaker 2: it's massive. It's the largest group we've ever seen in history.

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Speaker 2: That could be a tell for what's coming politically that

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Speaker 2: the majority of people don't have faith in either side.

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Speaker 2: And if we saw a situation where the two party

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Speaker 2: system didn't control everything, that could be something totally new

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Speaker 2: for us. But with that said, if I'm trying to

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Speaker 2: pick the most likely outcome, it's grow your way out

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Speaker 2: of this.

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Speaker 1: When you say, oh, just for clarification, when you say

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Speaker 1: grow your way out of this, what does that actually mean?

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Speaker 2: Though?

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Speaker 1: Like as far as on a corporate side, just to

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Speaker 1: have more corporate profits, because that's not coming back if

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Speaker 1: we don't tax corporations.

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Speaker 2: So yeah, yeah, that's a good question. The large corporation

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Speaker 2: scenario we're in, that's a that's a whole separate conversations. Right.

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Speaker 2: Just look at it as total revenue into the government. Right,

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Speaker 2: so every single revenue stream that the government government has,

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Speaker 2: how do we increase that? And now you can definitely

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Speaker 2: make the case and I get it that this is

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Speaker 2: nuanced and there's not enough time for this. But if

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Speaker 2: companies are growing and taxes are coming in at a

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Speaker 2: larger dollar amount, well there's the potential for growth. The

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Speaker 2: large corporations not paying taxes, that that's nuance and there's

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Speaker 2: caveat to it. The corporations are paying taxes, it's you know,

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Speaker 2: at what portions are they taking loss? That covers a

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Speaker 2: lot of it, and you know where to R ANDD go.

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Speaker 2: Where's the incentive go. That's a separate combo.

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Speaker 4: You mentioned something you said, after this political run, you're

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Speaker 4: going back to finding companies owning companies, Which is interesting

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Speaker 4: because it makes me think of where do you see

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Speaker 4: or what excites you, what type of company would you

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Speaker 4: be looking at of the future? Right, it's going to

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Speaker 4: be looking a little bit different than when you started

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Speaker 4: your entrepreneurial journey. What companies are the wave of the future?

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Speaker 4: Which ones excites you? What are you looking for when

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Speaker 4: you're trying to find one.

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Speaker 2: Yeah, that's a good question. Now, I heard somebody say,

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Speaker 2: I'm not sure who it was, but one of you

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Speaker 2: guys said that you want people to win with their money. Right,

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Speaker 2: if you're new, we want you to grow your wealth.

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Speaker 2: Who want you to succeed? That outlook is very much

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Speaker 2: in alignment with me. I want people to understand how

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Speaker 2: to manage their money, how to invest it, and put

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Speaker 2: the you know, let's grow the middle class and let's

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Speaker 2: grow it upward. So if you're not in the middle

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Speaker 2: class at let's get you there. If you're in the

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Speaker 2: middle classes, try to, you know, stend it up. That's

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Speaker 2: really my focus. That's why we built the business we

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Speaker 2: have now, you know, all the content we put out

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Speaker 2: is financial literacy. We have opportunities for people to invest

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Speaker 2: in real estate with us, whether you're accredited or you're not,

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Speaker 2: so you can grow your wealth that way. The next

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Speaker 2: business I start will probably be in some way aligned

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Speaker 2: with that, I won't tap into a you know, maybe

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Speaker 2: a tech platform or AI, it'll probably be around how

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Speaker 2: do I help more people grow what they own?

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Speaker 3: For the entrepreneurs listening tonight, what matters more to you

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Speaker 3: the idea or the operator? And if they're looking to scale, like,

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Speaker 3: what are some must haves in business now that will

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Speaker 3: allow them to scale?

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Speaker 2: It's a phenomenal question. Okay. So number one, this is

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Speaker 2: not to take away from the idea, because the idea

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Speaker 2: is incredibly important, But there are more good ideas out

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Speaker 2: there that don't get executed than bad ideas that people

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Speaker 2: try to drive forward. So there is a pairing. You

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Speaker 2: have to have a good idea, you have to have

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Speaker 2: an operator, because if you can't bring the idea to

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Speaker 2: reality and then you can't scale it, the idea is

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Speaker 2: almost worthless in some regard. So if you're a visionary

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Speaker 2: pair with an operator, bring an operator or a team

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Speaker 2: of operators into the business so that you can actually

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Speaker 2: track your momentum forward. And then it just becomes a

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Speaker 2: game of right person, right seat, What seat do you need?

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Speaker 2: Find the right person and fill it and then track

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Speaker 2: the progress. The beginning stages are the hardest. So if

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Speaker 2: you're a solopreneur, it's the hardest to go from one

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Speaker 2: person to three, and then from three onward. And so

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Speaker 2: what you're going to have to wrestle with is when

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Speaker 2: you're the solopreneur, you're making all the money and for

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Speaker 2: a time you're going to make less then because you're

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Speaker 2: gonna have to pay somebody else to get involved. You

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Speaker 2: might have to give somebody equity to get involved. But

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Speaker 2: two people can further than one. So the idea is

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Speaker 2: take the hits on the front end, delay your gratification,

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Speaker 2: build the team, and what you're going to experience on

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Speaker 2: the back end is going to be much larger.

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Speaker 1: So let's talk about real estate. Went into commercial real estate,

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Speaker 1: So you're a real estate investor, but you're also a politician.

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Speaker 1: So I was interested to see your thoughts on this

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Speaker 1: is commercial real estate debt because we've been seeing even

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Speaker 1: in New York, the Chrysler building that they that's in

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Speaker 1: shambles right now, like so many office buildings when you

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Speaker 1: think of commercial real estate, at least on the office side,

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Speaker 1: but a lot of other commercial whether there's even businesses,

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Speaker 1: they're going online and people are not coming in the

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Speaker 1: same and everything is changed. So what's your thoughts on

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Speaker 1: commercial real estate in twenty twenty six?

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Speaker 2: Okay, so commercial real estate, just for anybody who doesn't

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Speaker 2: knows a lot of different asset classes, it's office, it's

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Speaker 2: you know, industrial, warehouse, it's retail, it's commercial. Multifamily. Office

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Speaker 2: is definitely getting hit the hardest. That will reshape, it

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Speaker 2: will survive. Even though we're going digital, we have not

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Speaker 2: mastered how to work as an organization and maintain culture digitally,

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Speaker 2: and so it's probably going to become somewhat of a hybrid.

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Speaker 2: And I think that hybrid is going to hold. So

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Speaker 2: I think there's a buying opportunity on office where you

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Speaker 2: can buy it an extreme discount. Industrial is going to

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Speaker 2: be here. You know. Retail, I think is going to

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Speaker 2: still be here as well. A lot of us wrote

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Speaker 2: that off in you know, two thousand and nine to

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Speaker 2: twenty fourteen as e comm started pumping. I think retail

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Speaker 2: is going to stay because at the end of the day,

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Speaker 2: we're emotional creatures that like community, We like seeing and feeling,

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Speaker 2: and so there will be a footprint for that. Multifamily

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Speaker 2: in a lot of markets is correcting hard right now.

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Speaker 2: It's a lot of the markets where the regulation is

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Speaker 2: low and they actually added supply. But here's the thing

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Speaker 2: to know about commercial commercial real estate values are tied

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Speaker 2: to interest rates. So when the FED drove rates up

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Speaker 2: three x, you watched prices come down because of that.

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Speaker 2: That's very different than how single family works. So we're

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Speaker 2: just in a moment where there's a buying opportunity. I

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Speaker 2: think you probably have a year or so of that

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Speaker 2: and then we'll see things tightened and then we'll go

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Speaker 2: through the beginning of the cycle again, and it will happen

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Speaker 2: again and again after that.

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Speaker 4: The most important thing is that people will need capital.

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Speaker 4: And you had this thesis on the millennial career crisis

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Speaker 4: that we had a conversation about that earlier today, and

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Speaker 4: just where we're headed.

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Speaker 2: What's your thoughts on how.

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Speaker 4: We combat it, what can we do to you know,

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Speaker 4: put a dent in it, because it's a real thing.

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Speaker 4: Right when we talk about the amount of jobs that

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Speaker 4: are going to be replaced, yes, some will be created,

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Speaker 4: but if we don't have income, then we're not going

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Speaker 4: to be able to invest in residential real estate or

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Speaker 4: commercial real estate.

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Speaker 2: Okay, So there's two parts that the millennial career crisis

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Speaker 2: is real one hundred percent what AI does, and you

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Speaker 2: know how we're going to make money. I actually think

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Speaker 2: there's a higher probability that we experience something similar to

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Speaker 2: the industrial the Industrial revolution, where we see a lot

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Speaker 2: of new jobs created because of AI. I don't know

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Speaker 2: if we're all just going to be jobless and you

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Speaker 2: know something like UBI is going to turn on. Not

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Speaker 2: saying that doesn't happen, I think that's lower probability. I

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Speaker 2: think the big issue with the millennials and gen z

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Speaker 2: is it's housing. It's like, we got fifty to seventy

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Speaker 2: percent of our income going towards housing, and the price

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Speaker 2: tag for a first time purchase is so high. The

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Speaker 2: American dream has taken off the board at that point,

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Speaker 2: and so I think the conversation for housing is more

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Speaker 2: what happened and why are we here? I think that

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Speaker 2: goes back to the old outlook of the FED. We

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Speaker 2: we have allowed a bubble to be created because we

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Speaker 2: are trying to artificially support people in and through and

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Speaker 2: so what does that mean? Number One, you got to

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Speaker 2: add supply. If our population grows and we're not adding supply,

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Speaker 2: you're going to watch asset prices increase. You know. Some

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Speaker 2: of the other things is it's regulation and politicians. You know,

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Speaker 2: if you're if you're looking at the housing crisis, right,

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Speaker 2: I think both sides can agree that prices are too

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Speaker 2: high now. It just becomes what's the solution. And I

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Speaker 2: would say one group looks at the solution as being

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Speaker 2: the government. The government needs to come in, They need

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Speaker 2: to build more regulation, There needs to be rent controls,

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Speaker 2: there needs to be you know, eviction moratoriums, and that

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Speaker 2: will bring prices down. The other side views it as government,

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Speaker 2: get out of the way, let us build. I promise

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Speaker 2: you we will build too much, and when we do,

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Speaker 2: you know you're going to experience something like Texas is

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Speaker 2: right now, prices are dropping at a crazy rate. The

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Speaker 2: true answer is it's going to land somewhere in the middle.

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Speaker 2: Like the private market and the policy makers need to

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Speaker 2: come together and actually speak the same language. They need

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Speaker 2: to get aligned on what the desired outcome is, which

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Speaker 2: is more housing, which will bring prices down. And you

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Speaker 2: haven't seen that happen yet in a lot of the markets.

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Speaker 2: Some you have, but the majority of markets you haven't yet.

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Speaker 3: We all have one story of an investment that we

434
00:23:21,280 --> 00:23:22,879
Speaker 3: missed out on that we wish we would have been

435
00:23:22,880 --> 00:23:26,320
Speaker 3: a part of. Is there an investment that you missed

436
00:23:27,680 --> 00:23:30,600
Speaker 3: and investment into, whether it's real estate or a company,

437
00:23:30,600 --> 00:23:32,200
Speaker 3: and what's the lesson that you learned from it.

438
00:23:33,200 --> 00:23:37,159
Speaker 2: Twenty eleven, one of my friends started talking to me

439
00:23:37,200 --> 00:23:41,240
Speaker 2: about bitcoin, and he's telling me about this digital currency

440
00:23:42,320 --> 00:23:44,800
Speaker 2: on some website that you could buy and it was

441
00:23:44,840 --> 00:23:48,040
Speaker 2: going to be the future. And instead of me asking

442
00:23:48,119 --> 00:23:51,719
Speaker 2: him questions to learn about it, I looked at him

443
00:23:51,760 --> 00:23:55,879
Speaker 2: and went, bro, you are crazy. That's some black market stuff.

444
00:23:55,920 --> 00:23:59,160
Speaker 2: You're gonna lose all your money. And he made an

445
00:23:59,359 --> 00:24:03,560
Speaker 2: astronaut nomical amount of money and I waited until twenty

446
00:24:03,640 --> 00:24:06,480
Speaker 2: nineteen to buy in. And so the moral of the

447
00:24:06,600 --> 00:24:10,480
Speaker 2: story is if somebody is talking about something, treated as

448
00:24:10,480 --> 00:24:14,119
Speaker 2: if they have information that you don't have, and ask

449
00:24:14,359 --> 00:24:18,359
Speaker 2: questions for you to learn, and that message goes actually

450
00:24:18,440 --> 00:24:22,919
Speaker 2: beyond investments. I think we should talk to everyone that way.

451
00:24:24,119 --> 00:24:27,119
Speaker 1: Private equity for people that may not be familiar, like

452
00:24:27,440 --> 00:24:31,240
Speaker 1: explain you know how, like what's the real metrics? And

453
00:24:31,440 --> 00:24:33,800
Speaker 1: in private equity, as far as how companies are evaluated,

454
00:24:33,800 --> 00:24:35,959
Speaker 1: who gets money, like you know, what's what's been your

455
00:24:36,000 --> 00:24:37,040
Speaker 1: experience of private equity.

456
00:24:37,680 --> 00:24:42,600
Speaker 2: Okay, so what private equity means is that you are

457
00:24:42,600 --> 00:24:45,879
Speaker 2: getting your capital outside of the public markets. You're not

458
00:24:45,920 --> 00:24:49,199
Speaker 2: going to the stock market for capital, and so that

459
00:24:49,240 --> 00:24:52,200
Speaker 2: can look like a bunch of institutions or pension funds

460
00:24:52,200 --> 00:24:54,840
Speaker 2: are giving you money all the way down to like

461
00:24:54,880 --> 00:24:58,280
Speaker 2: what my company is. You can invest with us for

462
00:24:58,280 --> 00:25:01,600
Speaker 2: as little as five thousand dollars. So there's a lot

463
00:25:01,640 --> 00:25:06,080
Speaker 2: of different ranges of it. Traditional private equity means that

464
00:25:06,080 --> 00:25:10,280
Speaker 2: you're buying businesses. The real estate I do is technically

465
00:25:10,320 --> 00:25:13,560
Speaker 2: called private equity real estate, but investing in real estate

466
00:25:13,560 --> 00:25:16,399
Speaker 2: as a syndication is different than what you're seeing with

467
00:25:16,480 --> 00:25:20,640
Speaker 2: a business and what you're seeing over there. The multiples

468
00:25:20,640 --> 00:25:23,680
Speaker 2: on traditional private equity are typically going to be three

469
00:25:23,760 --> 00:25:27,359
Speaker 2: to five x. And what they're doing is they're buying

470
00:25:27,359 --> 00:25:30,960
Speaker 2: a bunch of businesses inside of a certain industry and

471
00:25:31,000 --> 00:25:34,680
Speaker 2: they're trying to create efficiency efficiencies in it. They're trying

472
00:25:34,720 --> 00:25:37,760
Speaker 2: to drive revenue up, and they're trying to cut expenses back,

473
00:25:38,280 --> 00:25:40,560
Speaker 2: and then when they do that at scale, they then

474
00:25:40,600 --> 00:25:44,960
Speaker 2: try to offload the portfolio and make money. Now there's

475
00:25:45,000 --> 00:25:48,880
Speaker 2: a big problem happening in traditional private equity where they're

476
00:25:48,880 --> 00:25:52,639
Speaker 2: buying up small kind of mom and pop type of businesses.

477
00:25:53,200 --> 00:25:56,040
Speaker 2: They're running the culture into the ground. The consumer is

478
00:25:56,040 --> 00:25:58,520
Speaker 2: getting a product that is not even close to as

479
00:25:58,560 --> 00:26:02,640
Speaker 2: good as you're seeing a challenge there. On the real

480
00:26:02,800 --> 00:26:04,800
Speaker 2: estate side, what we do is we go try to

481
00:26:04,800 --> 00:26:09,240
Speaker 2: find real estate that doesn't exist or is vacant, and

482
00:26:09,280 --> 00:26:11,720
Speaker 2: then we pool investors together and then we go in

483
00:26:11,800 --> 00:26:14,800
Speaker 2: and we buy it. We usually develop something new, and

484
00:26:14,840 --> 00:26:17,840
Speaker 2: when you're developing, you have the opportunity to grow the

485
00:26:17,920 --> 00:26:20,919
Speaker 2: value of it, and so that's how we grow wealth.

486
00:26:20,960 --> 00:26:23,399
Speaker 2: We just do it as a group as opposed to

487
00:26:23,600 --> 00:26:24,440
Speaker 2: an individual.

488
00:26:27,160 --> 00:26:29,640
Speaker 4: As you look at your career how it's played out,

489
00:26:29,680 --> 00:26:33,440
Speaker 4: obviously you've had different multiples throughout each stage these decades,

490
00:26:33,800 --> 00:26:37,360
Speaker 4: I wonder what you define as your legacy, Like, what

491
00:26:37,400 --> 00:26:39,399
Speaker 4: do you want it to be looking for? I know

492
00:26:39,440 --> 00:26:41,800
Speaker 4: you're a husband, your father, how do you see your

493
00:26:41,880 --> 00:26:42,840
Speaker 4: legacy shaping out?

494
00:26:45,240 --> 00:26:49,560
Speaker 2: All right, that's a good question. I would say for

495
00:26:51,280 --> 00:26:55,120
Speaker 2: anyone who's met me, talk to me, has a relationship

496
00:26:55,160 --> 00:26:57,600
Speaker 2: with me, I think the only thing I would want

497
00:26:57,680 --> 00:27:02,200
Speaker 2: them to view what I was while I was here

498
00:27:02,840 --> 00:27:07,159
Speaker 2: is that I was somebody that they trusted and just

499
00:27:07,280 --> 00:27:11,160
Speaker 2: overall was like somebody they could count on. For my kids,

500
00:27:11,440 --> 00:27:15,119
Speaker 2: I think it's more about what my wife and I

501
00:27:15,160 --> 00:27:18,000
Speaker 2: put into them as opposed to what we leave them.

502
00:27:18,920 --> 00:27:21,160
Speaker 2: I'm not saying I don't leave my kids anything, but

503
00:27:21,280 --> 00:27:25,560
Speaker 2: I think it's more important that we instill good character

504
00:27:26,119 --> 00:27:29,560
Speaker 2: and good values and give them the tools for them

505
00:27:29,600 --> 00:27:32,080
Speaker 2: to go on and do their thing, as opposed to

506
00:27:32,160 --> 00:27:34,520
Speaker 2: just passing down assets. So that's kind of where we

507
00:27:34,560 --> 00:27:36,280
Speaker 2: put more of our attention. I want to build them

508
00:27:36,359 --> 00:27:39,360
Speaker 2: up to be, you know, good husbands and good wives

509
00:27:39,400 --> 00:27:43,040
Speaker 2: and good fathers and good mothers. But I also want

510
00:27:43,080 --> 00:27:45,520
Speaker 2: them to know how money works. So I'm not saying

511
00:27:45,560 --> 00:27:47,880
Speaker 2: that to say we don't teach them about money. We

512
00:27:48,000 --> 00:27:51,160
Speaker 2: do that as well. I just think that's secondary.

513
00:27:52,000 --> 00:27:53,720
Speaker 3: If you can only pick five things that you can

514
00:27:53,720 --> 00:27:57,040
Speaker 3: focus on on a daily in your business, which are

515
00:27:57,080 --> 00:27:59,080
Speaker 3: those five things that would give you the highest return?

516
00:28:02,760 --> 00:28:07,520
Speaker 2: All right? You have to pay attention to sales is

517
00:28:07,720 --> 00:28:10,480
Speaker 2: Without sales, there's no revenue that comes in. So sales

518
00:28:10,560 --> 00:28:13,880
Speaker 2: is a big one. You got to manage the money correctly.

519
00:28:14,119 --> 00:28:18,760
Speaker 2: So having somebody on your accounting team is a necessity.

520
00:28:19,600 --> 00:28:23,680
Speaker 2: The tracking of the different pillars of your business. We

521
00:28:23,840 --> 00:28:27,080
Speaker 2: use a system called EOS. It's from the book Traction.

522
00:28:27,680 --> 00:28:29,400
Speaker 2: So if you're an entrepreneur and you want to learn

523
00:28:29,400 --> 00:28:33,120
Speaker 2: how to manage a business correctly, I'd recommend buying that book.

524
00:28:33,920 --> 00:28:36,720
Speaker 2: The other one, culture is a really big one. Make

525
00:28:36,760 --> 00:28:40,240
Speaker 2: sure that everyone on your team is very clear on

526
00:28:40,840 --> 00:28:44,160
Speaker 2: where you're headed, that you're building them up and they're

527
00:28:44,160 --> 00:28:46,960
Speaker 2: a part of the organization. And then I probably put last,

528
00:28:47,040 --> 00:28:50,360
Speaker 2: which is the kind of what puts all the glue together,

529
00:28:50,560 --> 00:28:54,000
Speaker 2: is leadership. Make sure that if you're in a leadership position,

530
00:28:54,560 --> 00:28:56,400
Speaker 2: you are not the one that's trying to take all

531
00:28:56,480 --> 00:29:00,720
Speaker 2: of the credits or being the star. I really think

532
00:29:00,760 --> 00:29:04,120
Speaker 2: a leader is looking at the people next to you

533
00:29:04,560 --> 00:29:07,440
Speaker 2: and building them up to be something greater than what

534
00:29:07,560 --> 00:29:10,600
Speaker 2: maybe they even realize. And if you have somebody that

535
00:29:10,680 --> 00:29:12,720
Speaker 2: you built up and they built a skill set and

536
00:29:12,760 --> 00:29:15,400
Speaker 2: they end up leaving your company and working for somebody else,

537
00:29:16,000 --> 00:29:19,520
Speaker 2: don't get pissed at that. That's actually a great example

538
00:29:19,600 --> 00:29:22,160
Speaker 2: that you did your job as a leader, because at

539
00:29:22,160 --> 00:29:23,560
Speaker 2: the end of the day, what you're trying to do

540
00:29:23,600 --> 00:29:24,440
Speaker 2: is build people up.

541
00:29:26,320 --> 00:29:27,840
Speaker 1: Well, Mikey, thank you for your Tom