1 00:00:00,760 --> 00:00:04,760 Speaker 1: For Fukuan Blal, CEO of the nerg Capital Fund. He 2 00:00:04,800 --> 00:00:07,600 Speaker 1: still remembers the two thousand and eight housing market crash 3 00:00:08,080 --> 00:00:09,119 Speaker 1: like it was yesterday. 4 00:00:09,720 --> 00:00:12,360 Speaker 2: I came home and me and my wife actually was 5 00:00:12,360 --> 00:00:14,840 Speaker 2: in our room and she had the news on, and 6 00:00:14,880 --> 00:00:16,560 Speaker 2: she was like, oh my god, do you see what's 7 00:00:16,560 --> 00:00:20,120 Speaker 2: happening to market? This is crazy. Brokers were calling me saying, hey, 8 00:00:20,160 --> 00:00:22,000 Speaker 2: the deal is going to close. The bank pulled out. 9 00:00:22,000 --> 00:00:25,120 Speaker 2: I'm like, what is going on? And then overnight, boom, 10 00:00:25,280 --> 00:00:28,080 Speaker 2: the lights just went out, just like that. I was like, 11 00:00:28,120 --> 00:00:30,480 Speaker 2: the rug got pulled from under my feet. The banks 12 00:00:30,480 --> 00:00:33,320 Speaker 2: stopped lending. I had deals literally at the closing table, 13 00:00:33,400 --> 00:00:36,120 Speaker 2: lined up the clothes, and all the funding got pulled. 14 00:00:36,800 --> 00:00:40,920 Speaker 2: So when they stopped funding the closing, my business was 15 00:00:40,960 --> 00:00:41,680 Speaker 2: on standstill. 16 00:00:42,240 --> 00:00:44,440 Speaker 3: You took all the losses two million dollars of your 17 00:00:44,479 --> 00:00:45,480 Speaker 3: own money out the door. 18 00:00:45,640 --> 00:00:46,200 Speaker 4: Absolutely. 19 00:00:51,080 --> 00:00:54,760 Speaker 1: Welcome to the Unshakables from Chase for Business and Ruby 20 00:00:54,840 --> 00:00:59,520 Speaker 1: Studio from iHeartMedia. I'm Ben Walter, CEO of Chase for Business. 21 00:00:59,200 --> 00:01:02,320 Speaker 5: And I'm Tanyannie Well, a lawyer and consultant for business owners. 22 00:01:02,440 --> 00:01:05,520 Speaker 1: We're sharing the daring stories of small business owners facing 23 00:01:05,520 --> 00:01:08,720 Speaker 1: their crisis points and telling the stories of how they 24 00:01:08,800 --> 00:01:09,520 Speaker 1: got through it. 25 00:01:10,040 --> 00:01:11,440 Speaker 5: Hey Tanya, Hey Ben. 26 00:01:11,520 --> 00:01:14,400 Speaker 1: I think today's episode is really inspirational. There's so much 27 00:01:14,440 --> 00:01:17,160 Speaker 1: to learn from Fukuan, how he's persevered in life and 28 00:01:17,160 --> 00:01:19,280 Speaker 1: in business, and how he's using his company to give 29 00:01:19,319 --> 00:01:20,240 Speaker 1: back to his community. 30 00:01:20,480 --> 00:01:23,200 Speaker 5: Can't wait to hear this one. 31 00:01:22,640 --> 00:01:26,479 Speaker 1: On today's episode. An MG Capital Fund from Newark, New Jersey. 32 00:01:29,280 --> 00:01:31,000 Speaker 1: Now here's a little behind the scenes about the show 33 00:01:31,040 --> 00:01:33,280 Speaker 1: for you. We recorded a lot of this in New 34 00:01:33,360 --> 00:01:35,480 Speaker 1: York City, but Fuquan is from Newark, which is only 35 00:01:35,520 --> 00:01:38,280 Speaker 1: about thirty minutes west of here. Now the Newark from 36 00:01:38,280 --> 00:01:40,600 Speaker 1: when Fuquan was growing up, it looked a lot different 37 00:01:40,600 --> 00:01:41,399 Speaker 1: than it does today. 38 00:01:41,800 --> 00:01:44,480 Speaker 2: If you can remember early eighties, it was a lot 39 00:01:44,520 --> 00:01:46,440 Speaker 2: of drugs an the area. To walk out your door, 40 00:01:46,440 --> 00:01:49,480 Speaker 2: it is crack bottles, dope, syringes. But we were sheltered 41 00:01:49,520 --> 00:01:51,920 Speaker 2: from that from my mom putting us in private schools. 42 00:01:52,000 --> 00:01:54,600 Speaker 4: My mom was a single mom of five kids when 43 00:01:54,640 --> 00:01:55,160 Speaker 4: I grew up. 44 00:01:55,240 --> 00:01:59,360 Speaker 2: Remember having candlelight dinners because the powers out having no electricity. 45 00:02:00,040 --> 00:02:02,440 Speaker 1: Fukuan's mother had cleared a safe path for her children, 46 00:02:02,840 --> 00:02:04,720 Speaker 1: and while he didn't fully realize it at the time, 47 00:02:05,160 --> 00:02:07,640 Speaker 1: she'd also given him the foundations to one day start 48 00:02:07,640 --> 00:02:08,440 Speaker 1: his own company. 49 00:02:09,639 --> 00:02:12,000 Speaker 2: When we were younger, my mom would take us to 50 00:02:12,520 --> 00:02:15,720 Speaker 2: Chinatown to get the scarves, hats, gloves, and then we 51 00:02:15,720 --> 00:02:17,880 Speaker 2: would go back to Noork at the bazaar and we 52 00:02:17,919 --> 00:02:20,280 Speaker 2: would sell them. Me and my younger brother would sit 53 00:02:20,320 --> 00:02:22,720 Speaker 2: there and sell items from the table, and every one 54 00:02:22,760 --> 00:02:24,880 Speaker 2: hundred dollars worth of the items we sold, we would 55 00:02:24,880 --> 00:02:27,639 Speaker 2: get twenty five dollars and pretty good margins. Yay, yeah, yeah, 56 00:02:27,639 --> 00:02:29,639 Speaker 2: Well she was flit the profits with us fifty percent, 57 00:02:29,880 --> 00:02:30,560 Speaker 2: and I loved it. 58 00:02:31,760 --> 00:02:34,240 Speaker 1: Fuquan knew he liked talking to people, but he didn't 59 00:02:34,240 --> 00:02:36,680 Speaker 1: think a ton about starting a company someday. For him, 60 00:02:36,680 --> 00:02:37,880 Speaker 1: it was more about making money. 61 00:02:38,880 --> 00:02:42,000 Speaker 2: My first real sales job was in telemarketing, and that's 62 00:02:42,040 --> 00:02:43,840 Speaker 2: when I learned what they say, you had the gift 63 00:02:43,840 --> 00:02:47,040 Speaker 2: the gab. So within six months I went from starlin 64 00:02:47,080 --> 00:02:49,560 Speaker 2: on the phone making minimum wage to having the night 65 00:02:49,600 --> 00:02:52,040 Speaker 2: shift as a manager, to be in a direct. 66 00:02:51,720 --> 00:02:53,040 Speaker 4: That seals for this company. 67 00:02:53,440 --> 00:02:55,880 Speaker 1: But he saw a cousin of his in arch Nemesis 68 00:02:56,040 --> 00:02:58,600 Speaker 1: his words, not mine, making a ton of money working 69 00:02:58,639 --> 00:02:59,679 Speaker 1: solely for himself. 70 00:03:00,000 --> 00:03:01,520 Speaker 2: He was started offrom real estate before me, and I 71 00:03:01,560 --> 00:03:03,840 Speaker 2: remember him doing a deal and making like forty fifty 72 00:03:03,880 --> 00:03:05,880 Speaker 2: thousand dollars something like that, and he was like, I 73 00:03:06,000 --> 00:03:07,720 Speaker 2: make more than you, and you working for the man 74 00:03:07,760 --> 00:03:10,600 Speaker 2: and everything else. So I started to shadow home around 75 00:03:10,600 --> 00:03:12,760 Speaker 2: and speak to contractors and I was like, Wow, this 76 00:03:12,800 --> 00:03:13,480 Speaker 2: is really great. 77 00:03:14,200 --> 00:03:16,880 Speaker 1: So Fukwan quit his job and started working at his 78 00:03:16,960 --> 00:03:20,240 Speaker 1: cousin's business full time. His role was to consult with 79 00:03:20,280 --> 00:03:24,280 Speaker 1: prospective homeowners and build a network of potential buyers. To 80 00:03:24,320 --> 00:03:26,760 Speaker 1: get people in the door, he would hand out flyers 81 00:03:26,760 --> 00:03:29,800 Speaker 1: for free seminars where he'd teach aspiring homeowners about how 82 00:03:29,840 --> 00:03:33,640 Speaker 1: to qualify for loans and earn passive income for mental properties. 83 00:03:34,120 --> 00:03:36,080 Speaker 1: It made him feel good to pass along what he 84 00:03:36,120 --> 00:03:38,360 Speaker 1: had learned about real estate from his cousin to his 85 00:03:38,400 --> 00:03:39,200 Speaker 1: own community. 86 00:03:39,640 --> 00:03:41,720 Speaker 2: We was never taught financial literacy where I grew up 87 00:03:41,760 --> 00:03:44,480 Speaker 2: at let alone, you know how to qualify for home right, 88 00:03:44,520 --> 00:03:47,120 Speaker 2: it was only for middle class and upper class people. 89 00:03:47,600 --> 00:03:50,280 Speaker 2: So being able to do that value add and give 90 00:03:50,360 --> 00:03:53,160 Speaker 2: that back to the community from education I knew, and 91 00:03:53,200 --> 00:03:55,360 Speaker 2: nobody was doing that. Nobody was coming to the hood 92 00:03:55,480 --> 00:03:58,720 Speaker 2: so to speak, and educating people on how they can 93 00:03:58,800 --> 00:04:00,280 Speaker 2: get a foot in and get a lake up. 94 00:04:00,320 --> 00:04:01,200 Speaker 4: So it felt good. 95 00:04:01,240 --> 00:04:03,400 Speaker 2: That was what gave me my full of the importance 96 00:04:03,720 --> 00:04:06,360 Speaker 2: educating the community on what they can do to have 97 00:04:06,440 --> 00:04:07,720 Speaker 2: financial freedom. 98 00:04:07,880 --> 00:04:11,120 Speaker 1: And his seminars they were working. He was helping dozens 99 00:04:11,120 --> 00:04:13,560 Speaker 1: of people learn how to become first time home buyers 100 00:04:13,600 --> 00:04:16,599 Speaker 1: and passing along those connections to his network of realtors 101 00:04:16,600 --> 00:04:20,000 Speaker 1: and loan officers, and timing was on his side. Around 102 00:04:20,000 --> 00:04:22,719 Speaker 1: this time, banks had made it really easy for folks 103 00:04:22,800 --> 00:04:25,320 Speaker 1: of all financial backgrounds to qualify for loans. 104 00:04:26,839 --> 00:04:30,599 Speaker 2: The banks were literally approven any and everybody, so it 105 00:04:30,720 --> 00:04:34,200 Speaker 2: made it easier for people to qualify. So you would 106 00:04:34,279 --> 00:04:37,159 Speaker 2: actually go out to a seminar and educate people, and 107 00:04:37,200 --> 00:04:39,599 Speaker 2: then people would take the leap forward and take action, 108 00:04:39,760 --> 00:04:41,400 Speaker 2: and then that would spread like wildfire. 109 00:04:42,680 --> 00:04:45,159 Speaker 1: He was also helping his cousin's company fix up and 110 00:04:45,200 --> 00:04:48,840 Speaker 1: flip properties for profit. He focused on reinvesting in his 111 00:04:48,880 --> 00:04:52,720 Speaker 1: own community, Newark, New Jersey, where he grew up. How 112 00:04:52,720 --> 00:04:55,159 Speaker 1: did you make that happen in a way that was sustainable. 113 00:04:55,640 --> 00:04:57,480 Speaker 2: There were a lot of dilapidated properties, a lot of 114 00:04:57,480 --> 00:05:01,280 Speaker 2: burnt out properties, vacant properties, and it was just a 115 00:05:01,279 --> 00:05:04,080 Speaker 2: war zone pretty much. So being able to start going 116 00:05:04,120 --> 00:05:06,760 Speaker 2: and repair properties block by block and bringing the community 117 00:05:06,800 --> 00:05:09,320 Speaker 2: back gave us an opportunity for the town to get 118 00:05:09,320 --> 00:05:11,960 Speaker 2: properties back on the tax road and give the residents 119 00:05:12,000 --> 00:05:12,920 Speaker 2: a better place to live. 120 00:05:14,560 --> 00:05:17,800 Speaker 1: And it wasn't just properties. Fu Quan also gave formally 121 00:05:17,839 --> 00:05:20,520 Speaker 1: incarcerated people jobs that they usually couldn't get. 122 00:05:21,600 --> 00:05:22,480 Speaker 4: Growing up in NewYork. 123 00:05:22,560 --> 00:05:25,160 Speaker 2: These were the people that were in my community, friends 124 00:05:25,320 --> 00:05:28,479 Speaker 2: and family members of course, who ran the streets and 125 00:05:28,520 --> 00:05:30,280 Speaker 2: got involved with the wrong thing. And I know these 126 00:05:30,279 --> 00:05:32,560 Speaker 2: were good people, right, there's good people in bad areas. 127 00:05:32,560 --> 00:05:35,320 Speaker 2: They just caught up from what's happening in the community. 128 00:05:35,400 --> 00:05:38,120 Speaker 2: So for me, it was an opportunity to kind of 129 00:05:38,200 --> 00:05:41,680 Speaker 2: throw the lifeboat in, right. So hiring these people gave 130 00:05:41,720 --> 00:05:45,359 Speaker 2: them more of a chance to be employee, first of all, 131 00:05:45,520 --> 00:05:48,159 Speaker 2: and have the confidence that they actually can do something 132 00:05:48,200 --> 00:05:50,599 Speaker 2: besides being in the street doing the wrong thing. 133 00:05:51,720 --> 00:05:54,440 Speaker 1: After a few years, Fuquan and the business were doing great. 134 00:05:54,600 --> 00:05:56,800 Speaker 1: They had a solid customer base, they were giving back 135 00:05:56,800 --> 00:06:00,279 Speaker 1: to their community, and they were financially stable. One was 136 00:06:00,320 --> 00:06:03,159 Speaker 1: riding high until one day something happened that changed the 137 00:06:03,200 --> 00:06:04,640 Speaker 1: direction of his life forever. 138 00:06:06,680 --> 00:06:09,680 Speaker 2: So it was my cousin's birthday and the day before 139 00:06:09,720 --> 00:06:12,640 Speaker 2: we were actually visiting a lot of construction sites, and 140 00:06:13,120 --> 00:06:15,280 Speaker 2: we were talking about a celebration party he was going 141 00:06:15,279 --> 00:06:17,760 Speaker 2: to have the next day. Then the next day came 142 00:06:18,000 --> 00:06:19,840 Speaker 2: and he came to the office and said, you know what, 143 00:06:19,920 --> 00:06:21,880 Speaker 2: I'm not going to work the full day. Let's make 144 00:06:21,920 --> 00:06:25,040 Speaker 2: payroll early. So we did that. He left for the 145 00:06:25,120 --> 00:06:27,560 Speaker 2: day and I stayed to work and then I saw 146 00:06:27,640 --> 00:06:29,800 Speaker 2: someone just walk past the office and I'm like, well, 147 00:06:29,839 --> 00:06:32,599 Speaker 2: we're closed today, who can this bee? And I saw 148 00:06:32,680 --> 00:06:34,440 Speaker 2: this shadow walk past the door, and I got out 149 00:06:34,480 --> 00:06:36,400 Speaker 2: to approach the person to figure out, you know, who 150 00:06:36,480 --> 00:06:38,920 Speaker 2: they were looking for. And by the time I walked 151 00:06:38,920 --> 00:06:40,880 Speaker 2: out the door, the gentleman was turning back around and 152 00:06:40,880 --> 00:06:43,120 Speaker 2: I just said to him, Hey, who are you looking for? 153 00:06:43,400 --> 00:06:45,840 Speaker 4: And a guy turned around and looking for you. Boom 154 00:06:45,880 --> 00:06:48,600 Speaker 4: boom boom boom boom shot me five times. 155 00:06:48,920 --> 00:06:49,520 Speaker 1: Oh my god. 156 00:06:50,120 --> 00:06:52,960 Speaker 2: And I had to play dead actually for him to 157 00:06:53,040 --> 00:06:55,000 Speaker 2: actually stop shooting. I like lay it on my back 158 00:06:55,120 --> 00:06:57,760 Speaker 2: and then he ran off out the door. And it 159 00:06:57,800 --> 00:06:59,640 Speaker 2: was such a rush I was able to jump up. 160 00:07:00,120 --> 00:07:02,839 Speaker 2: Adrenaline was going in down nine one one. I just 161 00:07:02,880 --> 00:07:05,320 Speaker 2: remember being in the back of the ambulance and going 162 00:07:05,360 --> 00:07:06,720 Speaker 2: to a university hospital. 163 00:07:10,880 --> 00:07:14,000 Speaker 1: The surgery was extensive and after he was stitched back up, 164 00:07:14,120 --> 00:07:16,920 Speaker 1: Fuquan was in the hospital for a week, he went 165 00:07:16,960 --> 00:07:19,760 Speaker 1: home and that's where he stayed for the next six 166 00:07:20,000 --> 00:07:21,280 Speaker 1: months while he recovered. 167 00:07:21,640 --> 00:07:24,000 Speaker 2: For me, it was at six months of healing, it 168 00:07:24,200 --> 00:07:27,080 Speaker 2: was a lot of self searching and just went more 169 00:07:27,160 --> 00:07:30,080 Speaker 2: deeper within, kind of separated myself from a lot of 170 00:07:30,080 --> 00:07:33,480 Speaker 2: different people and figure out how can I add more 171 00:07:33,560 --> 00:07:36,480 Speaker 2: value to my life and started to build the journey 172 00:07:36,480 --> 00:07:36,840 Speaker 2: from there. 173 00:07:37,440 --> 00:07:39,320 Speaker 1: For most people it would have been very easy and 174 00:07:39,400 --> 00:07:42,960 Speaker 1: certainly understandable to slip into why me, why now self pity, 175 00:07:43,400 --> 00:07:44,240 Speaker 1: But not Fuquan. 176 00:07:44,880 --> 00:07:46,480 Speaker 2: I think that was the best thing that happened to 177 00:07:46,520 --> 00:07:49,840 Speaker 2: me because it really taught me to real value of life. 178 00:07:50,200 --> 00:07:53,040 Speaker 2: And at the time I didn't have kids, and it 179 00:07:53,080 --> 00:07:55,800 Speaker 2: really made me appreciate the simple things that people don't 180 00:07:55,840 --> 00:07:58,360 Speaker 2: even pay attention to every day, like tiny shoes, right, 181 00:07:58,440 --> 00:08:01,680 Speaker 2: So I started to appreciate the simple things in life. 182 00:08:02,560 --> 00:08:04,400 Speaker 1: I'm going to pause for a second because I to 183 00:08:04,400 --> 00:08:06,120 Speaker 1: hear that story and then say someone say that's the 184 00:08:06,120 --> 00:08:08,640 Speaker 1: best thing that ever happened to me is pretty astonishing. 185 00:08:08,920 --> 00:08:10,080 Speaker 4: Well, it's a life lesson. 186 00:08:11,800 --> 00:08:14,640 Speaker 1: Fuquan and his girlfriend decided to get married and start 187 00:08:14,640 --> 00:08:18,200 Speaker 1: building a family. The aftermath of the shooting also changed 188 00:08:18,240 --> 00:08:19,400 Speaker 1: how he did business. 189 00:08:19,680 --> 00:08:20,880 Speaker 4: That kind of went into a shell. 190 00:08:20,920 --> 00:08:23,800 Speaker 2: I couldn't trust anybody around me, so I disconnected from 191 00:08:23,840 --> 00:08:26,160 Speaker 2: my business partner and started my own venture and started 192 00:08:26,160 --> 00:08:27,000 Speaker 2: to go off of my own. 193 00:08:27,920 --> 00:08:31,080 Speaker 1: The company did exactly what Fuquan was doing before, but 194 00:08:31,200 --> 00:08:34,080 Speaker 1: this time he owned one hundred percent of it. Though 195 00:08:34,120 --> 00:08:36,800 Speaker 1: he'd still be flipping homes. He wanted to do things 196 00:08:36,840 --> 00:08:38,280 Speaker 1: differently from his cousin. 197 00:08:38,960 --> 00:08:41,600 Speaker 2: And then started to focus on business from there, and 198 00:08:41,640 --> 00:08:43,600 Speaker 2: how can I structure a business where it was a 199 00:08:43,600 --> 00:08:47,520 Speaker 2: lifestyle business? And I really wasn't killing myself, so to speak. 200 00:08:47,600 --> 00:08:49,160 Speaker 2: And that's when the light bulb went off, Hey, have 201 00:08:49,280 --> 00:08:51,040 Speaker 2: you build your own construction team. 202 00:08:51,240 --> 00:08:52,240 Speaker 4: You can control more. 203 00:08:52,160 --> 00:08:55,079 Speaker 2: Costs and that way you've been do less and still 204 00:08:55,080 --> 00:08:57,960 Speaker 2: make more profit and still have a quality life. 205 00:08:58,640 --> 00:09:01,000 Speaker 1: Luckily, he had a large client list from working at 206 00:09:01,040 --> 00:09:03,840 Speaker 1: his cousin's company and running the seminars for so long, 207 00:09:04,320 --> 00:09:06,240 Speaker 1: and by the end of his first year he had 208 00:09:06,280 --> 00:09:09,080 Speaker 1: a portfolio of thirty properties that he had flipped and sold. 209 00:09:09,960 --> 00:09:13,199 Speaker 1: He reinvested any profit he made right back into the business. 210 00:09:14,240 --> 00:09:17,240 Speaker 2: I was hungry. I had something to prove I had life. 211 00:09:17,280 --> 00:09:19,199 Speaker 2: I knew the meaning and value of life, and I 212 00:09:19,280 --> 00:09:21,200 Speaker 2: knew that I had a purpose. And in fact, I 213 00:09:21,240 --> 00:09:24,440 Speaker 2: did more deals that year than I did the year previously. 214 00:09:25,360 --> 00:09:27,800 Speaker 1: The real estate market continued to boom. 215 00:09:28,080 --> 00:09:31,120 Speaker 2: It started to develop fast because I had a lot 216 00:09:31,160 --> 00:09:34,120 Speaker 2: of people my network who were looking for houses. I 217 00:09:34,160 --> 00:09:36,600 Speaker 2: had a lot of people who wanted to sell me houses. 218 00:09:37,200 --> 00:09:39,480 Speaker 2: I had lenders who wanted to loan me money. So 219 00:09:39,559 --> 00:09:42,160 Speaker 2: I started to put all those pieces to the puzzle together, 220 00:09:42,679 --> 00:09:45,080 Speaker 2: and that's where my business really started to accelerate. 221 00:09:45,320 --> 00:09:48,040 Speaker 1: He also took the opportunity to diversify the business. 222 00:09:48,400 --> 00:09:52,040 Speaker 2: I had a transportation business. I had a here studio 223 00:09:52,120 --> 00:09:55,040 Speaker 2: with twenty five cheers. So I was using real estate 224 00:09:55,280 --> 00:09:57,840 Speaker 2: to kind of fund other businesses. I had a car wash, 225 00:09:57,920 --> 00:09:59,319 Speaker 2: all these business at the same time. 226 00:10:00,000 --> 00:10:02,440 Speaker 1: Majority of what he did and his passion was still 227 00:10:02,520 --> 00:10:05,040 Speaker 1: real estate. By the end of that first year of 228 00:10:05,080 --> 00:10:08,199 Speaker 1: setting out on his own, he was a millionaire. Things 229 00:10:08,200 --> 00:10:10,360 Speaker 1: were great, but he wondered if it was all too 230 00:10:10,440 --> 00:10:11,240 Speaker 1: good to be true. 231 00:10:12,280 --> 00:10:15,480 Speaker 2: It was unbelievable. It was mind blowing for me because 232 00:10:15,640 --> 00:10:18,640 Speaker 2: where I came from and where I was at the time, 233 00:10:18,720 --> 00:10:20,920 Speaker 2: it was almost like a dream. But it was scary 234 00:10:20,920 --> 00:10:22,880 Speaker 2: too at the time, because you would see people just 235 00:10:22,920 --> 00:10:25,920 Speaker 2: getting into business and taking off, and I was like, okay, 236 00:10:26,120 --> 00:10:28,079 Speaker 2: this is too easy. And when I was speak to 237 00:10:28,120 --> 00:10:29,679 Speaker 2: the loan offices, they would tell me, hey, they got 238 00:10:29,720 --> 00:10:32,079 Speaker 2: stated programs out. People just need the state how much 239 00:10:32,120 --> 00:10:33,720 Speaker 2: they make and they qualify. And I was like, well, 240 00:10:33,720 --> 00:10:36,000 Speaker 2: they don't do like income verification, they don't do any 241 00:10:36,040 --> 00:10:37,960 Speaker 2: of that, and no, they just fell out the information 242 00:10:38,040 --> 00:10:38,760 Speaker 2: how much they make. 243 00:10:39,600 --> 00:10:40,560 Speaker 4: Something is not right. 244 00:10:41,000 --> 00:10:43,520 Speaker 1: Unfortunately, Fuquan's instincts were right. 245 00:10:46,080 --> 00:10:49,080 Speaker 2: I left the salon and I came home and me 246 00:10:49,120 --> 00:10:51,800 Speaker 2: and my wife actually was in our room and she 247 00:10:51,920 --> 00:10:53,800 Speaker 2: had the news on and she was like, Oh my god, 248 00:10:53,880 --> 00:10:56,120 Speaker 2: do you see what's happened in the market. This is crazy. 249 00:10:56,559 --> 00:10:58,840 Speaker 2: Brokers were calling me saying, hey, the deal is going 250 00:10:58,920 --> 00:11:00,559 Speaker 2: to close. The bank pulled out. I'm going to switch 251 00:11:00,600 --> 00:11:02,320 Speaker 2: it to another bank. I think I could make it happen. 252 00:11:02,720 --> 00:11:04,760 Speaker 2: Then two days later, this bank pulled out, and I'm like, 253 00:11:04,800 --> 00:11:08,280 Speaker 2: what is going on? Things started to tighten up, but 254 00:11:08,360 --> 00:11:12,520 Speaker 2: I was sitting on a lot of inventory and then overnight, boom, 255 00:11:12,679 --> 00:11:15,320 Speaker 2: the lights just went out, just like that, and then 256 00:11:15,559 --> 00:11:19,120 Speaker 2: everything just froze. It started to be a downward spiral 257 00:11:19,160 --> 00:11:19,760 Speaker 2: from there. 258 00:11:20,960 --> 00:11:24,160 Speaker 1: The global financial crisis. Now most of you will remember 259 00:11:24,160 --> 00:11:26,000 Speaker 1: it well, but just in case you don't. For some reason, 260 00:11:26,360 --> 00:11:29,000 Speaker 1: in two thousand and eight, the entire housing market went 261 00:11:29,080 --> 00:11:31,079 Speaker 1: under and financial markets were in upheaval. 262 00:11:31,720 --> 00:11:33,800 Speaker 2: I was like the rug got pulled from under my feet. 263 00:11:34,040 --> 00:11:37,000 Speaker 2: The banks stopped lending. I had deals literally at the 264 00:11:37,000 --> 00:11:39,920 Speaker 2: closing table, lined up the close, and all the funding 265 00:11:39,960 --> 00:11:42,880 Speaker 2: got pulled. And during that time I was just flipping properties. 266 00:11:42,880 --> 00:11:44,079 Speaker 2: I had no cash flow. 267 00:11:44,400 --> 00:11:46,920 Speaker 4: It was just by fixed cell, by fixed seal, so 268 00:11:46,960 --> 00:11:48,959 Speaker 4: I had no income coming in from rental properties. 269 00:11:49,000 --> 00:11:52,680 Speaker 2: So when they stopped funding the closing, my business was 270 00:11:52,720 --> 00:11:53,920 Speaker 2: on standstills and I. 271 00:11:53,880 --> 00:11:56,040 Speaker 1: Stuck with These properties were sort of mid. 272 00:11:55,920 --> 00:11:59,080 Speaker 4: Renovation, absolutely, and then values dropped. Fifty percent. 273 00:12:00,120 --> 00:12:03,760 Speaker 1: Of the twelve properties Fuquan's company had in closing, nine 274 00:12:03,800 --> 00:12:07,000 Speaker 1: of them fell through. Fuquan owed his lenders money for 275 00:12:07,040 --> 00:12:09,960 Speaker 1: every property he was renovating. He sold off all of 276 00:12:10,000 --> 00:12:12,840 Speaker 1: his other businesses, the car wash and the transportation company 277 00:12:12,880 --> 00:12:15,959 Speaker 1: to fund those properties. And still it wasn't enough. 278 00:12:16,840 --> 00:12:19,040 Speaker 3: You took all the losses, two million dollars of your 279 00:12:19,080 --> 00:12:22,920 Speaker 3: own money out the door. Absolutely, His accountant advised him 280 00:12:22,920 --> 00:12:24,000 Speaker 3: to file for bankruptcy. 281 00:12:24,559 --> 00:12:26,000 Speaker 2: I said, I'm not going to do that because I 282 00:12:26,040 --> 00:12:28,000 Speaker 2: had some investors that is still with me today that 283 00:12:28,080 --> 00:12:31,240 Speaker 2: believe and said, well, you have our money from our ira, 284 00:12:31,400 --> 00:12:33,920 Speaker 2: our retirement. You know what's happening while everyone else was 285 00:12:34,000 --> 00:12:37,160 Speaker 2: not paying. I stood tall fire, sold the properties, paid 286 00:12:37,200 --> 00:12:38,600 Speaker 2: them back, and I took the loss. 287 00:12:39,559 --> 00:12:42,880 Speaker 5: Ben Wow, Fuquan loses two million dollars of his own 288 00:12:42,880 --> 00:12:46,680 Speaker 5: money and still decides to go against his accountant's advice 289 00:12:46,760 --> 00:12:49,440 Speaker 5: and not declare bankruptcy. I think that was a really 290 00:12:49,480 --> 00:12:50,120 Speaker 5: bold decision. 291 00:12:50,200 --> 00:12:52,120 Speaker 1: Yeah, I suppose it was bold, but it's easy to 292 00:12:52,160 --> 00:12:54,199 Speaker 1: say that now. You know. Everything looks good in hindsight, 293 00:12:54,240 --> 00:12:55,880 Speaker 1: but it must have been terrifying at the time. 294 00:12:56,200 --> 00:12:58,520 Speaker 5: I want to make sure that we circle back to 295 00:12:58,559 --> 00:13:01,439 Speaker 5: this part of the conversation because this is something that 296 00:13:01,520 --> 00:13:04,320 Speaker 5: so many business owners have to think about. You know, 297 00:13:04,360 --> 00:13:07,040 Speaker 5: they might disagree with how Lukwan handled it, but I 298 00:13:07,160 --> 00:13:09,000 Speaker 5: want to make sure we talk about this later. It's 299 00:13:09,080 --> 00:13:10,600 Speaker 5: way too important to miss. 300 00:13:10,840 --> 00:13:12,600 Speaker 4: But taking back to the story. 301 00:13:14,080 --> 00:13:17,240 Speaker 1: Like for so many others, Fukuan had to completely change 302 00:13:17,280 --> 00:13:19,800 Speaker 1: his way of life after the crash. He sold his 303 00:13:19,840 --> 00:13:22,600 Speaker 1: single family home and moved into one of the apartments 304 00:13:22,600 --> 00:13:25,720 Speaker 1: his company had been renting out with his two young sons. 305 00:13:26,200 --> 00:13:29,920 Speaker 2: So I moved from a five bedroom, four bathroom house 306 00:13:30,640 --> 00:13:33,960 Speaker 2: to a two bedroom, one bathroom apartment. So I did 307 00:13:34,000 --> 00:13:36,559 Speaker 2: what I had to do to cut my expenses down 308 00:13:37,040 --> 00:13:39,640 Speaker 2: to survive through it. You know, for a couple of years. 309 00:13:40,040 --> 00:13:43,400 Speaker 1: At any point along this series of woes, did you 310 00:13:43,440 --> 00:13:44,319 Speaker 1: think about giving up? 311 00:13:44,559 --> 00:13:47,320 Speaker 2: No, Because for me, it was I fight better with 312 00:13:47,320 --> 00:13:50,760 Speaker 2: blood in my mouth. Right, It's I grew up through adversity, 313 00:13:50,920 --> 00:13:52,800 Speaker 2: So growing up through that was really made me who 314 00:13:52,800 --> 00:13:55,880 Speaker 2: I am today. So going through that, especially after getting shot, right, 315 00:13:56,080 --> 00:13:58,720 Speaker 2: you get shot five times and you still live, It's like, Okay, 316 00:13:59,000 --> 00:14:00,400 Speaker 2: what's next? 317 00:14:01,480 --> 00:14:05,080 Speaker 1: What's next? Was well a lot of thinking. You see, 318 00:14:05,080 --> 00:14:07,319 Speaker 1: the real estate market would be frozen for a few years, 319 00:14:07,400 --> 00:14:10,319 Speaker 1: and for Kwan was now divorced, his entire life and 320 00:14:10,360 --> 00:14:11,960 Speaker 1: his business had to pivot. 321 00:14:12,559 --> 00:14:14,839 Speaker 2: I remember sitting on my bed watching the silling fan, 322 00:14:14,960 --> 00:14:16,680 Speaker 2: swinging around like, you know, what am I going to do? 323 00:14:17,120 --> 00:14:20,080 Speaker 2: Because real estate was my identity and that's all I knew. 324 00:14:20,120 --> 00:14:22,600 Speaker 2: I didn't know anything else, and that time was really 325 00:14:22,680 --> 00:14:24,560 Speaker 2: quiet time for me, and it was time for me 326 00:14:24,640 --> 00:14:27,000 Speaker 2: to go within. During that time, I learned the only 327 00:14:27,040 --> 00:14:29,240 Speaker 2: way that my business is going to grow is when I. 328 00:14:29,200 --> 00:14:33,360 Speaker 1: Grow amazingly enough. Just like getting shot. Fuquan considers the 329 00:14:33,360 --> 00:14:35,520 Speaker 1: global financial crisis to be one of the best things 330 00:14:35,560 --> 00:14:36,880 Speaker 1: that ever happened to him. 331 00:14:37,200 --> 00:14:40,160 Speaker 2: That was the second pivotal moment in my life that 332 00:14:40,440 --> 00:14:42,160 Speaker 2: I look at that as something that was a blessing 333 00:14:42,200 --> 00:14:45,280 Speaker 2: that happened as well, because at the time I worshiped money. 334 00:14:45,600 --> 00:14:47,360 Speaker 2: I was a slave to it, and I thought that 335 00:14:47,560 --> 00:14:50,040 Speaker 2: was the value. So until you learn when you don't 336 00:14:50,040 --> 00:14:52,360 Speaker 2: have it, where the really value is. I learned that 337 00:14:52,720 --> 00:14:54,680 Speaker 2: the true wealth it was within and it really value 338 00:14:54,760 --> 00:14:57,160 Speaker 2: was in family. I spent a lot more time with 339 00:14:57,200 --> 00:14:59,760 Speaker 2: my kids, becoming the best father I can be, and 340 00:15:00,240 --> 00:15:03,200 Speaker 2: that's what really build a stronger foundation. So this helped 341 00:15:03,240 --> 00:15:05,720 Speaker 2: me see that you can get to the other side. 342 00:15:05,720 --> 00:15:07,240 Speaker 2: You may have to jump through a couple of hoops 343 00:15:07,240 --> 00:15:09,480 Speaker 2: with fire, but the other side is they're waiting for 344 00:15:09,520 --> 00:15:10,600 Speaker 2: you if you're persistent. 345 00:15:11,360 --> 00:15:14,880 Speaker 1: But the housing market wouldn't be recovering anytime soon, so 346 00:15:14,880 --> 00:15:18,240 Speaker 1: he had to pivot once again. He learned about short sales, 347 00:15:18,440 --> 00:15:21,000 Speaker 1: the process of buying foreclosed homes for less than the 348 00:15:21,080 --> 00:15:24,560 Speaker 1: value remaining on the mortgage. Fuquan found himself a mentor 349 00:15:24,600 --> 00:15:27,280 Speaker 1: who could teach him the trade. He decided to shift 350 00:15:27,320 --> 00:15:31,320 Speaker 1: his business completely towards short sales. It became so successful 351 00:15:31,560 --> 00:15:34,560 Speaker 1: that he started running seminars again to build an investor base. 352 00:15:35,760 --> 00:15:38,400 Speaker 2: Before I was teaching people in the front part. Hey, 353 00:15:38,400 --> 00:15:39,800 Speaker 2: this is how you buy a house. This is how 354 00:15:39,840 --> 00:15:42,040 Speaker 2: you qualify, it's what you do, It's how you get tenants. 355 00:15:42,520 --> 00:15:45,000 Speaker 2: Now telling people this is how you buy debt. You 356 00:15:45,000 --> 00:15:46,960 Speaker 2: guys don't know about the debt business. Let me teach 357 00:15:47,000 --> 00:15:48,280 Speaker 2: you about the debt business. You don't have to deal 358 00:15:48,280 --> 00:15:51,280 Speaker 2: with no tenants, tallest trash, turnmites, you have to deal 359 00:15:51,320 --> 00:15:53,600 Speaker 2: with any of that. You can help home uner stay 360 00:15:53,600 --> 00:15:56,280 Speaker 2: in the house. You buy debt at a discount, And 361 00:15:56,320 --> 00:15:57,280 Speaker 2: this is how it works. 362 00:15:57,920 --> 00:16:01,520 Speaker 1: And in twenty thirteen, Fukwan decided to start Energy the 363 00:16:01,640 --> 00:16:03,120 Speaker 1: National Note Group. 364 00:16:03,280 --> 00:16:05,680 Speaker 2: And I said, I'm going to create a vehicle where 365 00:16:05,680 --> 00:16:08,600 Speaker 2: I can raise capital, buy notes direct from the bank, 366 00:16:09,200 --> 00:16:11,760 Speaker 2: sell some off to people who want to buy them, 367 00:16:11,880 --> 00:16:14,240 Speaker 2: and work them out myself to make a great return. 368 00:16:15,000 --> 00:16:18,080 Speaker 1: Four years into the business, Pukwan decided it was time 369 00:16:18,120 --> 00:16:21,520 Speaker 1: to diversify again, so Energ started to do fix and 370 00:16:21,560 --> 00:16:22,200 Speaker 1: flips again. 371 00:16:23,000 --> 00:16:26,440 Speaker 2: Beyond that, and then in twenty nineteen, we started to 372 00:16:26,480 --> 00:16:30,760 Speaker 2: do rentals. So now we have income from rentals, we 373 00:16:30,840 --> 00:16:33,040 Speaker 2: have income from Fix and Flips, and we have income 374 00:16:33,080 --> 00:16:36,280 Speaker 2: from the note business. So those three different verticals help 375 00:16:36,360 --> 00:16:39,880 Speaker 2: us stay afloat, help us navigate the narrows, help us 376 00:16:39,920 --> 00:16:43,440 Speaker 2: continue to be able to pivot. So, for example, if 377 00:16:43,480 --> 00:16:45,840 Speaker 2: foreclosure happens again, the note business. 378 00:16:45,600 --> 00:16:47,520 Speaker 4: Would be booming because banks would be selling debt. 379 00:16:47,640 --> 00:16:51,240 Speaker 2: Right if Fix and Flips slowed down because interest rates 380 00:16:51,280 --> 00:16:54,400 Speaker 2: are high, we have revenue coming in from multifamilies. Rent 381 00:16:54,600 --> 00:16:57,680 Speaker 2: is not going down. Rent it's really expensive. Rent keeps increasing, right, 382 00:16:58,080 --> 00:17:00,600 Speaker 2: So we have those three different verticals, and that keeps 383 00:17:00,680 --> 00:17:01,240 Speaker 2: us aflow. 384 00:17:01,440 --> 00:17:02,520 Speaker 4: In today's mark is. 385 00:17:03,480 --> 00:17:06,480 Speaker 1: With Neng up and running, Fuquan could return to doing 386 00:17:06,520 --> 00:17:09,000 Speaker 1: something that was at the heart of his business all along, 387 00:17:09,600 --> 00:17:10,280 Speaker 1: giving back. 388 00:17:11,200 --> 00:17:14,280 Speaker 2: So we raise capital from accredited investors, and then we 389 00:17:14,359 --> 00:17:17,360 Speaker 2: take that capital and we invest it into our impact projects. 390 00:17:17,400 --> 00:17:20,439 Speaker 2: So in the Southeast and Alabama and Georgia, we invest 391 00:17:20,480 --> 00:17:24,920 Speaker 2: into a lot of the multi family apartment complexes, and 392 00:17:25,000 --> 00:17:28,800 Speaker 2: we keep thirty percent of those communities with subsidized rants 393 00:17:28,800 --> 00:17:32,000 Speaker 2: for their Section eight. Bad women and children, seniors who 394 00:17:32,000 --> 00:17:33,720 Speaker 2: can't afford rent, bumps. 395 00:17:33,680 --> 00:17:35,640 Speaker 1: For anyone listening who thinks you have to work all 396 00:17:35,680 --> 00:17:38,400 Speaker 1: the time to win big take this lesson from Fukuan. 397 00:17:39,160 --> 00:17:41,920 Speaker 1: His focus on himself and his quality of life has 398 00:17:41,960 --> 00:17:47,600 Speaker 1: paid back big time for his business, and today he's 399 00:17:47,640 --> 00:17:51,080 Speaker 1: doing more than ever before. The Energy Capital Fund owns 400 00:17:51,119 --> 00:17:53,920 Speaker 1: twelve hundred properties, with a goal of getting to five 401 00:17:54,000 --> 00:17:56,800 Speaker 1: thousand in the not too distant future. They moved way 402 00:17:56,800 --> 00:17:59,040 Speaker 1: beyond New Jersey and are now working on projects in 403 00:17:59,080 --> 00:18:02,080 Speaker 1: Georgia and Alabam too, and giving back to the communities 404 00:18:02,119 --> 00:18:05,080 Speaker 1: they develop is still at the very heart of their business. 405 00:18:11,520 --> 00:18:13,000 Speaker 5: That is such an inspiring story. 406 00:18:13,400 --> 00:18:15,280 Speaker 1: Yeah, that one had a lot of ups and downs. 407 00:18:15,320 --> 00:18:18,439 Speaker 1: I mean he has really ridden a roller coaster. Yeah, 408 00:18:18,520 --> 00:18:19,240 Speaker 1: he really has. 409 00:18:19,320 --> 00:18:21,040 Speaker 5: And there's so much we can talk about here, and 410 00:18:21,040 --> 00:18:23,399 Speaker 5: I'm excited about jumping into it. But let's start with 411 00:18:23,440 --> 00:18:27,000 Speaker 5: Wakwan's decision to not file for bankruptcy. You know, like 412 00:18:27,080 --> 00:18:30,360 Speaker 5: everything else, there are benefits and drawbacks. But Fukwan took 413 00:18:30,400 --> 00:18:32,840 Speaker 5: a very long term approach. All right, he was an 414 00:18:32,960 --> 00:18:35,160 Speaker 5: entrepreneurial guy. It was not going to be a good 415 00:18:35,160 --> 00:18:37,680 Speaker 5: look for him to fail on the people who invested 416 00:18:37,720 --> 00:18:39,679 Speaker 5: in his business and invested in him. For him to 417 00:18:39,680 --> 00:18:42,080 Speaker 5: just simply say, oh, I'm sorry, I need to file 418 00:18:42,119 --> 00:18:44,480 Speaker 5: bankruptcy and by the way, forget about your money. And 419 00:18:44,560 --> 00:18:46,760 Speaker 5: I think it's important that business owners do take a 420 00:18:46,800 --> 00:18:49,800 Speaker 5: long term approach, because you essentially have to weigh the 421 00:18:49,880 --> 00:18:53,280 Speaker 5: benefits of getting your debt extinguished versus the long term 422 00:18:53,320 --> 00:18:56,840 Speaker 5: consequences of possibly not being able to get financing again 423 00:18:56,920 --> 00:18:58,280 Speaker 5: for another several years. 424 00:18:58,320 --> 00:19:00,920 Speaker 1: I would go step further, Tanya. He didn't just take 425 00:19:00,960 --> 00:19:04,280 Speaker 1: a long term approach. He took a principled approach. True. 426 00:19:04,440 --> 00:19:07,080 Speaker 1: I think they were equally important. Now that doesn't mean 427 00:19:07,080 --> 00:19:09,320 Speaker 1: it's always wrong to file for bankruptcy. There are situations 428 00:19:09,359 --> 00:19:12,000 Speaker 1: where it's appropriate, don't get me wrong. But for him, 429 00:19:12,080 --> 00:19:14,560 Speaker 1: I think it was equally about his long term reputation 430 00:19:14,640 --> 00:19:17,200 Speaker 1: and his principles, and he put those both to work 431 00:19:17,280 --> 00:19:18,880 Speaker 1: and he came out exactly where he. 432 00:19:18,840 --> 00:19:19,280 Speaker 4: Was meant to. 433 00:19:19,840 --> 00:19:21,720 Speaker 5: Yeah, and you make a good point, like, I'm not 434 00:19:21,920 --> 00:19:25,800 Speaker 5: anti bankruptcy, I'm just thinking throughing it better, really make 435 00:19:25,880 --> 00:19:28,200 Speaker 5: damn good sense approach, That's what I'm about. 436 00:19:28,280 --> 00:19:31,040 Speaker 1: Yeah. The bankruptcy Code exists for a reason, and part 437 00:19:31,040 --> 00:19:34,680 Speaker 1: of the reason that it exists is to encourage risk 438 00:19:34,720 --> 00:19:39,440 Speaker 1: taking so that lenders and borrowers have a common framework 439 00:19:39,520 --> 00:19:42,720 Speaker 1: for when things go wrong, because if they don't, then 440 00:19:42,760 --> 00:19:46,240 Speaker 1: it will make lenders more hesitant to lend and borrowers 441 00:19:46,280 --> 00:19:47,399 Speaker 1: more hesitant to borrow. 442 00:19:47,440 --> 00:19:47,520 Speaker 5: It. 443 00:19:47,720 --> 00:19:51,040 Speaker 1: So it exists for a reason, but it exists as 444 00:19:51,080 --> 00:19:53,399 Speaker 1: a last resort. Right as long as the bankruptcy is 445 00:19:53,440 --> 00:19:55,000 Speaker 1: on your record, it's going to be very tough to 446 00:19:55,040 --> 00:19:57,639 Speaker 1: get credit. You're typically only going to be able to credit, 447 00:19:57,680 --> 00:20:00,520 Speaker 1: if at all, from alternative lending sources tend to be 448 00:20:00,640 --> 00:20:04,000 Speaker 1: very expensive and the terms can be onerous. One thing 449 00:20:04,080 --> 00:20:07,240 Speaker 1: I always remind people is in small business, it's not 450 00:20:07,320 --> 00:20:10,960 Speaker 1: just business credit, it's business and personal credit. Indeed, small 451 00:20:11,000 --> 00:20:14,920 Speaker 1: business debt in almost all cases requires a personal guarantee, 452 00:20:15,400 --> 00:20:17,840 Speaker 1: which means it's not just reflecting on the business's credit, 453 00:20:17,880 --> 00:20:19,600 Speaker 1: it's reflecting on you as an individual. So it can 454 00:20:19,680 --> 00:20:21,760 Speaker 1: affect your ability to buy a house, or buy a car, 455 00:20:22,240 --> 00:20:25,560 Speaker 1: or take student loans or any other kind of credit 456 00:20:25,600 --> 00:20:28,080 Speaker 1: that you might want to use to finance your life. 457 00:20:28,119 --> 00:20:29,879 Speaker 1: Now that doesn't mean you shouldn't do it, but it 458 00:20:29,920 --> 00:20:31,800 Speaker 1: means you need to go in eyes open, and so 459 00:20:32,560 --> 00:20:34,960 Speaker 1: business and personal credit are kind of the same thing 460 00:20:35,240 --> 00:20:37,679 Speaker 1: in the small business space, and that's why it's important 461 00:20:37,680 --> 00:20:39,800 Speaker 1: to consider that when you use debt as a tool. 462 00:20:40,240 --> 00:20:42,239 Speaker 5: I'm so glad you brought that up then, because there 463 00:20:42,280 --> 00:20:45,840 Speaker 5: are so many business owners and aspiring business owners who 464 00:20:46,240 --> 00:20:49,600 Speaker 5: come to me and don't realize how integrally tied their 465 00:20:49,680 --> 00:20:52,560 Speaker 5: personal finances are to their business credit. And they think 466 00:20:52,600 --> 00:20:56,800 Speaker 5: that just because a certain contract or a certain obligation 467 00:20:56,920 --> 00:20:59,080 Speaker 5: is put into the business's name, that it is not 468 00:20:59,200 --> 00:21:02,600 Speaker 5: going to matter as much what their personal situation is. 469 00:21:02,960 --> 00:21:04,920 Speaker 5: And they even think that, you know, those who have 470 00:21:05,000 --> 00:21:07,360 Speaker 5: been in business for a while and have you know, substantial, 471 00:21:07,840 --> 00:21:11,800 Speaker 5: very successful while performing businesses, they don't realize that they're still, 472 00:21:11,960 --> 00:21:15,760 Speaker 5: even at the multiple million dollars in revenue level, they're 473 00:21:15,800 --> 00:21:19,520 Speaker 5: still tied to that small business. I try to express 474 00:21:19,600 --> 00:21:22,600 Speaker 5: to people that their business has to be so extraordinary 475 00:21:23,000 --> 00:21:25,879 Speaker 5: for their personal assets and their personal credit to be 476 00:21:25,960 --> 00:21:28,240 Speaker 5: completely separated from their business. 477 00:21:28,840 --> 00:21:30,679 Speaker 1: That's right. I mean that only happens when it is 478 00:21:30,760 --> 00:21:33,840 Speaker 1: truly a professionally run business where the owner could leave 479 00:21:33,880 --> 00:21:37,000 Speaker 1: tomorrow and it kind of wouldn't matter because it exists 480 00:21:37,000 --> 00:21:39,159 Speaker 1: as an entity under itself, and then you can do 481 00:21:39,280 --> 00:21:43,200 Speaker 1: entity financing, but that typically comes much much later. That said, 482 00:21:43,760 --> 00:21:46,600 Speaker 1: we've worked with lots of businesses who have used credit 483 00:21:46,680 --> 00:21:49,080 Speaker 1: in really smart ways, in ways that kept them from 484 00:21:49,119 --> 00:21:51,919 Speaker 1: having to take equity financing and dilute their ownership in 485 00:21:51,960 --> 00:21:54,639 Speaker 1: the company. So debt financing absolutely has a place in 486 00:21:54,680 --> 00:21:57,800 Speaker 1: the capital stack. It absolutely has a place as one 487 00:21:57,800 --> 00:22:00,560 Speaker 1: of the sources of growth capital, and every entre has 488 00:22:00,640 --> 00:22:03,120 Speaker 1: to evaluate which one is right for them and evaluate 489 00:22:03,119 --> 00:22:04,960 Speaker 1: the trade offs that you have to make between them. 490 00:22:05,119 --> 00:22:08,080 Speaker 5: I like that financing and a small business level, especially 491 00:22:08,119 --> 00:22:11,800 Speaker 5: because so many people do want to maintain control, and 492 00:22:11,840 --> 00:22:14,280 Speaker 5: we know that a lot comes with getting other people's 493 00:22:14,320 --> 00:22:17,640 Speaker 5: money if it's an equity position, right, And so those 494 00:22:17,760 --> 00:22:20,879 Speaker 5: entrepreneurs who are saying I really would like to maintain control, 495 00:22:21,040 --> 00:22:26,080 Speaker 5: I encourage them to strongly consider getting just traditional financing 496 00:22:26,520 --> 00:22:28,760 Speaker 5: because then they can keep the control, but they still 497 00:22:28,760 --> 00:22:29,880 Speaker 5: get access to the capitol. 498 00:22:30,200 --> 00:22:32,960 Speaker 1: But all of that comes after putting your own money in. 499 00:22:33,160 --> 00:22:35,000 Speaker 1: If you don't have a dollar to put in your business, 500 00:22:35,040 --> 00:22:37,760 Speaker 1: you don't have a business. You need to be working 501 00:22:37,880 --> 00:22:41,480 Speaker 1: and saving and have some seed money to start at yourself. 502 00:22:41,880 --> 00:22:44,680 Speaker 1: Because I can tell you that whether you're raising equity financing, 503 00:22:44,720 --> 00:22:47,439 Speaker 1: debt financing, or anything else, if you won't put a 504 00:22:47,480 --> 00:22:49,200 Speaker 1: dollar in, why would I put a dollar in. 505 00:22:49,600 --> 00:22:52,880 Speaker 5: Exactly, and circling back to Fuklan, that's what he had 506 00:22:52,920 --> 00:22:54,920 Speaker 5: to do to get what he was trying to get 507 00:22:54,960 --> 00:22:57,440 Speaker 5: done done. He needed to show that he had skin 508 00:22:57,480 --> 00:22:59,840 Speaker 5: in the game, and you know, when things didn't go 509 00:22:59,840 --> 00:23:02,320 Speaker 5: we well, his two million dollars was on the line, 510 00:23:02,840 --> 00:23:04,879 Speaker 5: and that's kind of how it goes. 511 00:23:04,880 --> 00:23:06,919 Speaker 1: And he stood by it. The other thing that I 512 00:23:06,960 --> 00:23:12,000 Speaker 1: loved about Fuquon's story is how much his business is 513 00:23:12,080 --> 00:23:16,840 Speaker 1: tied to his community goals. And what that means from 514 00:23:16,880 --> 00:23:20,040 Speaker 1: a practical perspective is that the mission of the company 515 00:23:20,200 --> 00:23:23,320 Speaker 1: is deeply personal and it's driven by his connection to 516 00:23:23,520 --> 00:23:26,240 Speaker 1: his community and where he comes from. And so this 517 00:23:26,359 --> 00:23:29,240 Speaker 1: isn't just about making another buck, although he does well financially. 518 00:23:29,720 --> 00:23:33,720 Speaker 1: This is about delivering meaningful, lasting change to a community 519 00:23:33,800 --> 00:23:35,880 Speaker 1: that he feels like is a part of him. 520 00:23:36,000 --> 00:23:38,480 Speaker 5: He found a way to pour back into his community 521 00:23:38,960 --> 00:23:43,560 Speaker 5: while building a sustainable business that served not only him 522 00:23:43,800 --> 00:23:46,240 Speaker 5: his own purposes as a business owner, but also the 523 00:23:46,240 --> 00:23:49,399 Speaker 5: purposes of the community and goes to show there's so 524 00:23:49,400 --> 00:23:51,800 Speaker 5: many different ways to do this right because earlier in 525 00:23:51,840 --> 00:23:55,320 Speaker 5: his story he did it by hiring people who were 526 00:23:55,840 --> 00:23:58,280 Speaker 5: less likely to be hired by others. So that was 527 00:23:58,320 --> 00:24:01,080 Speaker 5: how he was pouring back into his community and supporting 528 00:24:01,280 --> 00:24:04,760 Speaker 5: members of his community. When that kind of went badly, 529 00:24:05,160 --> 00:24:08,159 Speaker 5: he then shifted to doing it through his business. And 530 00:24:08,200 --> 00:24:10,879 Speaker 5: I like saying how people engage in the community in 531 00:24:10,920 --> 00:24:13,399 Speaker 5: a way that resonates with them but also is in 532 00:24:13,400 --> 00:24:14,360 Speaker 5: line with their business. 533 00:24:14,480 --> 00:24:16,440 Speaker 1: What I particularly love here, though, and I'm going to 534 00:24:16,480 --> 00:24:19,680 Speaker 1: share a personal view, is I love purpose driven capitalism 535 00:24:19,840 --> 00:24:23,360 Speaker 1: as opposed to just philanthropy. Because he wasn't saying I'm 536 00:24:23,400 --> 00:24:25,080 Speaker 1: going to make a bunch of money and give it away. 537 00:24:25,280 --> 00:24:27,480 Speaker 1: He was saying, I'm going to do something that will 538 00:24:27,520 --> 00:24:30,119 Speaker 1: help my community and make me money at the same time. 539 00:24:30,520 --> 00:24:32,359 Speaker 1: Because when you do that, everybody wants to do more 540 00:24:32,400 --> 00:24:34,359 Speaker 1: of it, and I think that's great. So when the 541 00:24:34,359 --> 00:24:37,760 Speaker 1: purpose of the company is fundamentally to uplift a community 542 00:24:37,760 --> 00:24:39,720 Speaker 1: and it can do that in a profitable way, it's 543 00:24:39,720 --> 00:24:43,080 Speaker 1: becomes self sustaining. He even said he keeps thirty percent 544 00:24:43,119 --> 00:24:46,800 Speaker 1: of his units for low income families or people with disabilities. 545 00:24:46,800 --> 00:24:49,359 Speaker 1: But he's not doing that and losing money. He's doing 546 00:24:49,359 --> 00:24:52,560 Speaker 1: that and still generating a healthy return for his investors 547 00:24:52,560 --> 00:24:55,400 Speaker 1: and himself. And that means at that rate, you want 548 00:24:55,400 --> 00:24:57,000 Speaker 1: to do more of it, and that's great, and you 549 00:24:57,040 --> 00:24:59,120 Speaker 1: want to You don't have to have a special Hey, 550 00:24:59,160 --> 00:25:01,080 Speaker 1: can you come do this investment. You won't make your 551 00:25:01,080 --> 00:25:03,280 Speaker 1: normal money, but we're doing good. No, no, no, you're going 552 00:25:03,320 --> 00:25:05,040 Speaker 1: to make your normal return and we're going to do 553 00:25:05,080 --> 00:25:06,840 Speaker 1: some good. That. That's a home run. 554 00:25:07,359 --> 00:25:09,639 Speaker 5: It truly is, and people can't help but want to 555 00:25:09,680 --> 00:25:13,920 Speaker 5: support that. And even further, Ben, he's showing people how 556 00:25:13,960 --> 00:25:17,159 Speaker 5: it can be done, which is inspiring, right, and I 557 00:25:17,240 --> 00:25:18,639 Speaker 5: love how he went about doing it. 558 00:25:18,880 --> 00:25:21,399 Speaker 1: Yeah. Look, and now he's expanding. He's in the southeast, 559 00:25:21,400 --> 00:25:23,280 Speaker 1: and so I'm looking forward to seeing where he takes 560 00:25:23,320 --> 00:25:23,680 Speaker 1: it next. 561 00:25:23,920 --> 00:25:27,239 Speaker 5: Oh yeah, I have no doubt with the way he 562 00:25:27,440 --> 00:25:30,120 Speaker 5: operates and just the clarity of vision that he has, 563 00:25:30,200 --> 00:25:31,200 Speaker 5: I have no doubt that. 564 00:25:31,160 --> 00:25:34,040 Speaker 1: He is just going to continue to sore Tanya. Let's 565 00:25:34,040 --> 00:25:36,600 Speaker 1: go to the advice Caucon wanted to share with our listeners. 566 00:25:36,920 --> 00:25:39,680 Speaker 1: He thinks every business owner needs to ask themselves two 567 00:25:39,760 --> 00:25:41,560 Speaker 1: questions when starting a business. 568 00:25:42,840 --> 00:25:45,800 Speaker 2: Wish of value, d what is your impact? Always think 569 00:25:45,840 --> 00:25:48,560 Speaker 2: of business from that point because most people think of it. Okay, 570 00:25:48,560 --> 00:25:49,840 Speaker 2: I want to make a lot of money for what 571 00:25:50,000 --> 00:25:52,480 Speaker 2: reason you know you want to travel, you want to 572 00:25:52,520 --> 00:25:53,119 Speaker 2: do what right? 573 00:25:53,200 --> 00:25:54,600 Speaker 4: What impact are you going to do? 574 00:25:55,160 --> 00:25:58,359 Speaker 2: Like I explain, my wise is providing quality housing and 575 00:25:58,359 --> 00:25:59,920 Speaker 2: I wake up out a bit every day and that's 576 00:26:00,160 --> 00:26:02,159 Speaker 2: mission right. So I would definitely say find out a 577 00:26:02,160 --> 00:26:04,639 Speaker 2: way where you can add value to others, and the 578 00:26:04,680 --> 00:26:07,439 Speaker 2: rest of procy definitely will come back to you ten times. 579 00:26:08,119 --> 00:26:10,840 Speaker 1: Thanks so much for listening to The Unshakables. If you 580 00:26:11,000 --> 00:26:13,760 Speaker 1: liked this episode, please rate and review it. It'll help 581 00:26:13,800 --> 00:26:17,600 Speaker 1: our show find more listeners. On the next episode, we'll 582 00:26:17,600 --> 00:26:19,920 Speaker 1: be back with a story about a college dropout who 583 00:26:19,960 --> 00:26:23,240 Speaker 1: started his company the way every great innovator does by 584 00:26:23,280 --> 00:26:26,280 Speaker 1: selling stuff out of his dorm room. I'm Ben Walter 585 00:26:26,640 --> 00:26:29,119 Speaker 1: and this is The Unshakables from Chase for Business and 586 00:26:29,160 --> 00:26:29,600 Speaker 1: iHeart 587 00:26:30,680 --> 00:26:34,280 Speaker 4: The Unshakables is a production of Ruby's Studio from iHeartMedia 588 00:26:34,440 --> 00:26:35,879 Speaker 4: and Wheelhouse DNA.