Bedros Keuilian Podcast Show - 012. How Millionaires Think

Episode Date: December 20, 2022

Throughout my years of being in entrepreneurship, I've achieved financial success & wealth by studying millionaires and becoming a millionaire myself. In this episode, I’m going to share how you can achieve wealth so that you can learn how to break free from the cycle of mediocrity and take control of your financial future.

If you don't have financial literacy, your ass will go broke no matter how much money you make. Welcome to the Bedroves Coolie and show. Back when Q was rolling with Lorenzo and a Benzo, I was banging with a gang of instrumental. Money can't buy happiness, but money sure can solve the problem of not having money. And that's a good problem to solve. Today we're going to talk about where we left off on the last episode. So if you didn't hear the last episode of how a drunk, lesbian, bloodied my face and kicked my ass at Oz, the gay bar, not Oz, Australia.

You're going to want to go back and listen to that last episode. Fascinating story, how I got my ass whooped by a drunk lesbian. But today I want to talk to you guys about the difference between making money and creating wealth. See, I was the king of trying to make money. I was the king of constantly trying to trade my time. In fact, in this last episode, I talked about how I worked as a personal trainer and at the same time, worked at Disneyland as a fry cook and dinner cook. And at the same time, at nights on weekends, I would work at Oz the Gay Bar as a bouncer.

And I had started my own business, Total Muscle.com. This was 1997-98 when the internet was just starting out on dial-up, no social media, no paid ads, no Google. and I was trying to make this website work. And so, but when you look at all three of those, four of those jobs that I had all at the same time, it was all me trading time for dollars. And so while I've got work ethic, I realized that I was burning out. There I was in my 20s, by the way. If you're in your early 20s and you're burning out, like that is not a good sign for you, man,

because you got a long life to live and you ought to not be in your 20s burning out. So if you're in your 20s right now and you're trading time for dollars, I'm going to teach you the idea of multiple income streams and wealth creation. If you're in your 30s, 40s, and beyond, and you're trading time for dollars, I'm about to blow your mind with this new idea that no one teaches in schools. See, I'm convinced that the school system, that the university system, the government wants to keep you financially stupid. They want to keep you money dumb.

And the reason the system wants to keep you money dumb is so that you can continue to be a slave in the system. When I say you can continue to be a slave in the system, I mean using your time to trade it for money, to then ultimately get taxed on your income, to get taxed on the stuff that you buy, to pay property taxes on the house that you've already purchased, to get taxed on the car that you're already buying, to get tax, tax, tax, and Social Security and all these taxes, and before you know what, you got a peasy little piece of money left. Not enough to win your freedom,

but just enough to stay on that hamster wheel and keep working for the man. Now, you might say, but wait a minute, I'm going to be an architect, I'm going to be an engineer. And yesterday I was talking to a young man who was like, man, I'm going to be an electrical engineer

and I want to ultimately focus on jet propulsion and work for NASA. I was like, hey, guess what? You're just going to be a really well-paid slave, but you're still not going to make enough to have financial freedom. You're not going to have enough to create wealth. You're not going to have multiple income streams until you do these things I'm about to tell you.

And so I want to help you guys out in understanding the difference between making money. So you can make a lot of money. You can be rich. Being rich means you're making a lot of money because what you sell might be a high ticket item and might be high in demand, but without you, it won't work. But wealth creation is creating money passively and money growing for you while you are not working

and trading your time for it. Now, if you can have a combination of the two, that is the best case scenario, right? So that's where we're going to start off. And so I do want to let you guys know that when you first start making a lot of money, you're going to start making a lot of dumb money decisions. And that's okay. That's okay. One particular coaching client comes to mind.

I love her to pieces. This took place about nine years ago. She was always kind of putzing along with her business, doing good, not great. It was definitely profitable, but she was highly involved in the day-to-day operations. And she had a few employees.

So it wasn't just her trading time for dollars, but she was leveraging employees, which is cool, right? Because when you're leveraging employees, you're also using their time to generate money for yourself, which is awesome. However, while she was doing good, like making, you know, four or five thousand dollars a month in income for herself, she wanted to do way better. And so she hired me as a business coach and she came really well referred by Dean Graciosi.

And so within the first six months, her business popped off, man. We were, she was making like an additional $30,000 to $40,000 a month on top of what her business was making. And then November came around and I was like, hey, you're going to run a Black Friday sale. And I called it the paid in full tsunami. The paid in full tsunami is if you have a business where people pay you on a monthly basis, you can tell them that, hey, guys, if you pay me up front for 12 months, I'll give you 10% off and a 13th month for free. It doesn't matter what kind of business it is.

If people pay you on a recurring basis, you could literally get a year's worth of money in and one foul swoop. And if you do it at around November, right, Black Friday, day after Thanksgiving, then you put yourself in a position where now you have a good reason why, because the whole world is having a Black Friday sale. And so she runs the paid and full tsunami sale, which is a three-day campaign. She makes herself an extra 170.

$75,000 in three days. Remember what happened, though. All of those people that were paying her on a monthly basis now paid in full for 12 months and got 10% off and a 13th month free. And I told her that now we need to backfill all those clients who are paying you on a recurring basis because your EFT, your electronic fund transfer is going to drop. She goes, okay. And so instead of using that money to pay,

buy more traffic and hire a little bigger team and backfill the clients so that her EFT, her recurring revenue can go back up. She surprised me with a picture of a BMW M3 brand new and a beautiful Rolex watch. Now when I say surprise me, it wasn't for me. She just surprised me by saying, look what I bought for myself. And I was like, wait a minute. You got yourself that? How much did all that cost you? And she goes, well, you know, just under $100,000, but I made a lot of money and I've been working so hard. My business has been taken off. I wanted to reward myself, yay.

And I said, you do realize you pay quarterly taxes. And now that you made all this money, you are going to have to pay the taxes on that. That money was going to be towards paying taxes and growing your business. I go, tell me you financed the car. She goes, no, I paid it off in full. Aren't you proud of me? And I was like, no, I'm not proud of you. Why did you pay it off in full when you could just pay like 3% interest on a car loan?

because you've got good credit. And I realized, while she knows how to make money now, because I taught her, she doesn't have financial literacy. And if you don't have financial literacy, your ass will go broke no matter how much money you make. This is why we see professional athletes, boxers, football players, basketball players, baseball. It doesn't matter who.

UFC fighters. They will get $15, $20 million purses. Like Holyfield right now lives in an apartment. Evander fucking Holyfield lives in an apartment in Philadelphia. Philadelphia and is barely getting by, the dude was getting multiple millions of dollars per fight because he was surrounded by people that would just say yes. He was surrounded by yes men, but no one took the time to teach him financial literacy, which would have included wealth creation so that he would have some assets like rental properties,

like cryptocurrency, like precious metals, like index funds, so that he can, have residual income coming in and that money would be out there working for him. Same thing happened with Mike Tyson. Millions and millions and millions of dollars and he went broke. And so understand that the ability to make money and create wealth are two very different things. Motherfucker. And if you do not know how to create wealth, I am here to teach you how to create wealth so that you will not end your stupid ass up in an apartment complex

when you're in your 60s and 70s because I would break my heart because I love you. so much. So let's get started. So we need to understand something. First and foremost, credit is good. If you can keep good credit, meaning you pay your bills on time and you've got good credit north of 700, right, then you're in a position where whether you're buying a house or a car or a boat. By the way, you should never buy a boat. And I know like Cardone and whoever else will tell you to go buy a boat or a plane. And it, They can buy it because they also know how to justify it and take the right off. You ought to consider this model.

If it flies or floats, rent it. Now, you've heard the real saying, which is if it flies, floats, or fucks, rent it. I don't necessarily agree with the fucking part. I'm not down to fuck a hooker. I'm not down to fuck a prostitute. I don't judge what you guys do, but I'm just telling you that if it flies or floats, rent it for many reasons. Why? Because when I take a private charter, I don't have to house that plan.

later. It gets housed somewhere else because it's someone else's plane. It's just on the net jet network or whatever private jet network that we're using. If I'm using, if I'm having a party on a yacht somewhere off the Newport Beach Coast, that's that yacht and the chef and the crew are all rented. I don't have to worry about where it's parked and if it's maintained and how much it's costing me. See, I don't want to put a lot of holes in my bucket where money keeps pouring out. And then my job then becomes to be this monkey where you're just cranking this monkey

to make a lot of money. I want to have as much freedom as possible with the least amount of liability. And if I've got a plane and a hanger and a boat at a fucking boatyard and all these other things, then I'm in a position of having a lot of liability unless I can figure out how to monetize it,

which is a different story. So if it flies or floats, rent it. That said, understand that credit is good. and like the client that I was telling you about, who got this three-day period during the Black Friday sale, $175,000 in revenue, she could have still purchased that watch. I would have told her,

just purchase one thing, get yourself a car, put the lowest amount of down payment that you can. Since you've got good credit, you're probably going to pay two and a half, three percent interest, which is awesome. Now someone's giving you that car because they trust you. You get to drive and enjoy the car and call it yours while making payments on it so that that money that you would have paid to pay the car off in full, you are now in a position to deploy that money, to buy ads, to build your business back up even bigger and to be able to dominate and crush your competition, right?

Because we are, if you're an entrepreneur, you are in the business of putting your competition out of business. Never for a moment think that an entrepreneur's job is to go, oh, competition's good, right? And competition's fair, right? No, it's not. Competition is not good. If I think that I run the best franchise on the planet, then I want to put all other fitness franchises out of business because anyone that buys a non-fitbody boot camp franchise

is now in a position of getting shitty service, of having shitty leads and making shitty amounts of money and getting shitty support from the franchisor. So why would I think that franchising is good? In fact, if you guys follow F-45, you know what's happening. with F-45. Fucking Mark Wahlberg sold off his shares like a fucking fire sale. The CEO of F-45 is now on the run, by the way.

His home and his assets in Australia are being auctioned off. They laid off something like 50% of their support staff, their franchise support staff. So think about all these F-45 franchisees that just came on board because, yay, Mark Wahlberg. And then, God damn it, because of a series of bad and greedy and stupid decisions on the part of the leadership team at F-45, they all of a sudden find themselves firing half of their support staff for their franchises.

Now, someone who bought into a franchise and is excited that Mark Wahlberg is going to be promoting F-45, one, Mark Wahlberg's not promoting F-45 anymore. Two, that support staff that was at their HQ to help you, half of them are gone. And the half that are there

are probably scared and bitter because they probably got a pay cut. Or they're the lowest-paid ones, which means they don't deliver the best service, right? So if I as the founder and, well, I'm no longer the CEO, Bryce is the CEO, but as the founder and president of FitBody Boot Camp, believe that FitBody Boot Camp is the Cats Meow in terms of franchise and that you can own multiple FitBody Boot Camps and grow faster.

And hell, we guarantee that you will open your doors with 100 paying clients. And if you don't, we will keep marketing for you until you get those 100 paying clients. Who the fuck? What other franchise offers that, right? So of course I've got the obligation and duty to put my competition out of business. So don't for a moment think that competition is good and healthy. So now that we know that you should leverage your credit and that you should never try and pay off anything, not even your house. If you live in a house and you're like, I can't wait to pay off my house because once I

pay off my house, it's mine. Okay, well guess what? Let me use my parents as an example. My mom and dad, my mom is 84 years old. My dad is 88. They live in a beautiful house in Anaheim. I pay for a lot of their lifestyle right now, which is awesome. Their house is worth about $670,000. and it's paid off. They have no mortgage. But if it weren't for me giving them money, they would be in a position where they would have to live off their Social Security,

which is like, I think my dad gets $1,800 a month and my mom gets like $800 a month. Now, how the hell are they going to live off less than $3,000 a month in Anaheim, California? Yet they have a house that's worth $670,000, but it's like living in a money house that you can't take any of the money away because then you have no house to live in. Right. So you guys need to understand that when you pay off your house and you think you did a good thing, you didn't. You need to constantly pull money out on your

house not to do stupid things like buy a truck and lift it, but to do wise things like take money out on your house and go put money down on a duplex, which is now leveraging your money. because if you have that good credit that we talked about, you could buy a $500,000 duplex, right? A piece of property, small piece of property that has two homes on it, put two tenants in there. And those two tenants could pay you twice what your mortgage is. So if your mortgage is, oh, I don't know.

So let's say if it's a $500,000 house, you put 20% down. So you spent whatever, $80,000, right, $80,000. You took out on your house because your house was paid off. You took $80,000 from your house and you bought this $500,000 duplex. You souped it up by spending another $40,000. Okay, awesome. Because you have good credit, someone gives you the house for only 20% down. Now you plug in two tenants because it's a duplex.

If your mortgage is $1,800 a month, now between the two tenants, you're making about $3,500 a month. So you see how now you are cash flow positive. You have someone, two people in there paying off your duplex or paying off the rest of your mortgage for the remaining 30 years. right if it's a 30-year mortgage and it should be by the way this is wealth creation now so now we're talking we're talking about wealth creation they're paying off your fucking mortgage for you and you are making twice what the mortgage is right 35 3,000 $3,600 a month you put an extra $500 a month towards that mortgage because remember a big part of your 30-year mortgage is interest so now you take that 30-year mortgage

that you have, and by putting an extra $500 towards your mortgage payment, you are now paying off that house in 18 or 19 years, therefore saving yourself a shit ton of future interest that you would have to pay. And you're using someone else's money, and you still have positive cash flow, even when you take $500 from that $3,600 and put it towards that mortgage. And so you see how this works. You could literally take out money on your house that you've paid off, like Mike. parents could do that. Obviously they're in their 80s. They don't need to. I make a lot of money and I pay for their lifestyle and everything's fine and that's that. But if they were in a position where they found themselves with a paid off house in their late 40s or 50s, they would need to take money out on that house

and then buy a couple of rental properties and put tenants in there so that those two rental properties can start creating cash flow for them and that is wealth creation. So imagine there's cash flow coming. Someone else who's living in that house is paying off your mortgage. And on top of that, the home is appreciating in value. And because they're going to pay off that mortgage a little sooner, a 30-year mortgage becomes like an 18-19-year mortgage. And now they have two houses that are paid off sooner that they could eventually sell and live at a much nicer lifestyle

than just living off their social security. I hope this makes sense. Is this making sense to you guys behind the camera here? This fucking makes sense, right? Okay, good. All right. So now that you understand that, the beauty of leverage is credit.

And so if you can leverage credit, you can also leverage other people. For example, I have many businesses, Trulene Supplements, Fit Body Boot Camp. I co-own fuel hunt apparel company, a software company called FitPro Tracker, a ton of other businesses, right? Coaching businesses, et cetera. I leverage other people as well. I have leadership teams, a CEO, a vice president. I have a second in command for other companies. And they do the work and lead the people who sell the franchises or the supplements or the apparel

or the software. And the people help generate more revenue. The people make money. And if they want to be future employees or I should say entrepreneurs, they're in a place where they are getting paid internship by being around awesome companies that I've started. And they could learn from their peers who are leaders. who are leading them along to ultimately start. In fact, six of my former employees are now entrepreneurs.

One of those people, Rich Mujica of Wonkaw Closers, is also a coaching client. And so I love turning employees into future entrepreneurs. And every one of those six were getting paid by me or any one of my companies to work for that company and make the company money, but they also saw it as paid internship for themselves. And so make no mistake about it that while you can leverage others, others can leverage you

by asking the right questions, seeing how you make decisions, and learning to become an entrepreneur, and you should be happy about that. Because all six of those businesses, in fact, if I wanted to, I could have taken equity in because they all came to me and said, hey, I'm starting a business, da-da. But they're all starting businesses that I wasn't necessarily excited about or wouldn't want to necessarily invest in. It's just not what I'm interested in. And so I was like, hey, Godspeed, go crush it, right?

But what's really rad is you can leverage credit, you can leverage people to grow businesses and brands. And so understand that wealth creation, so as you're making money, you then become, or you have the opportunity to become wealthy through investing some of that money elsewhere. And I'll give you an example of this. My coaching client, Tony Stephan, awesome human being. He was a registered dietitian and he worked in a big box gym. doing nutrition coaching and stuff for the clients in there, but he was an employee. He hired me as a business coach four years ago, and he's like, hey, man, I'm making 50 grand a year at this lifetime fitness in Detroit.

I want to be able to make more money and create financial freedom for myself. How do I do that? I'm like, well, I can help you. What do you want to do? He says, I want to create an online nutrition coaching business. Great. So before you know it, within about five, six months, now his online nutrition coaching business is doing about $80,000, $90,000 a month.

he's a one person show and then his wife is kind of helping him along with the business in terms of you know um back end office stuff and and making sure that the uh traffic buyers are buying the traffic and making sure that the DMs are being communicated with because he uses social media a lot I have him using social media a lot to do that but he was still trading time for dollars I was like hey man do you want to grow any further he says yes and says great well you've got to find other coaches registered dietitians who could do what you do. And in fact, one person that comes to mind, Rachel Shear, another coaching client of mine two years ago,

and she doesn't mind me sharing this. She shared it publicly before. Two years ago, she was making $9,000 a month as a one woman show, as a gut health expert. Today, she's making about $200,000 a month, has a team of eight people, I think five coaches, other nutrition coaches, two closers, and a second in command.

So just like me, now, she's the face of her company. She doesn't do the, she's not trading her time for dollars anymore like she was when she was burnt out and stressed making nine grand a month. Now she's making $200,000 a month a month. And don't for a moment think that she's taken that $200,000 a month home. But I can tell you this. A really good amount of that goes home to her because she's a gangster and we stacked her business up in the proper way where we can leverage the employees. And now she's in a place just like Tony where she's creating multiple income streams. So let's go back. to Tony for a moment. And so Tony one day goes, hey man, so now I got a couple coaches working

for me, just like Rachel, right? Just like Rachel Shear does. And so cool that I got to work literally with Rachel and still get to work with Rachel and Tony still until this day. And now I'm helping them buy apartments and invest in land and cryptocurrency, like do the wealth creation. But their main business brings in the money and then they take some of that money from the main business and give themselves a better lifestyle like Rachel bought herself a nice G-wagon, beautiful vehicle. Tony bought himself awesome, awesome Lamborghini bought his wife, her favorite Mercedes.

He lives about three months out of the year here in California, the rest of the time in Detroit. But what's really rad is he noticed that all of a sudden other registered dietitians were starting to follow him. And he's like, man, I don't understand why RDs are following me, Baitrus. I'm like, dummy, they're following you because they want to see how it is that you're running your business. Like, it's obvious you're growing.

You're making a lot of money as an online registered dietitian. You have two other coaches working for you. I'm like, what if you started a coaching business? So now, then he starts a coaching business. And then all of a sudden, within about half a year, he's got 50 registered dietitians in a mastermind where they each pay $1,500 a month. And now Tony is a registered dietitian, making money by helping people with their nutrition programs, and he's coaching other registered dietitians on how to launch their business, has two income streams. And then one day he texts me, he's like, bro, I'm on my second, going on third year of coaching with you. I'm making all this money.

I'm going to pay a lot of taxes. What do I do to not pay all these taxes? I'm like, well, you're going to have to pay some taxes because that's how you fucking roll. But have you thought about investing in real estate? He goes, I don't know where to begin. I'm like, no worries. We'll do our next half day on real estate investment. I invest in real estate.

I'll teach you how I invest in real estate, how I invest in cryptocurrency, how I invest in precious metals and index funds. And you could start leveraging your money. Today, Tony owns over $5 million in apartments throughout Detroit to the point where he's gotten so good at it that we're now leveraging my money because my debt to income ratio was much better than his. And so we're leveraging my money. And together, we're buying apartments. And here's what's even better is we're now bringing in my other coaching clients to buy

apartments, bigger apartments, more apartments together with us. And so now everyone's making money off their primary business by leveraging their credit or other people or technology, not just trading time for dollars, taking some of that money and then deploying it towards real estate investments. Like if you don't want to manage a house and like fix a sprinkler when your, your tenant says a sprinkler busted, you don't have to. You can invest in a fund. You can invest in a syndicate where like Tony is going to do all the heavy lifting and everyone that's investing in it still gets cash flow coming into them. Right. What an awesome thing to do. So you have to start becoming financially literate, folks, because if you don't, then what's going to

happen here is that you're going to constantly find yourself burning out and then capping out in terms of how much money you're making. And then when that happens, there's a sense of insecurity, especially, God forbid, another pandemic happens because then what you're going to do when you only have one income stream, it's all dependent on you. And then that income stream is impacted by COVID or another pandemic. Like, for example, FitBody Boot Camp was massively impacted by the pandemic. We lost over 218 fit body boot camp locations in 2020. Had it not been for Trulene, my supplement company and my coaching business and my other income streams, I would not have been able to prop up FitBody Boot Camp for 10 months while we were losing those locations,

right? Because you remember, during the pandemic, gyms and restaurants were asked to be shut down. And so a lot of my franchisees sadly went out of business. And that affected me negatively as well. I had to sell, in fact, two of my rental properties out here in Chino Hills to help fund the maintenance and growth of Fit Body Boot Camp HQ here because I don't want to fire any employees. I knew that at some point this pandemic is going to be over. We're going to go back to normal. I have great team members. I want to be loyal to them. I don't want to lose them.

So I sold two of my rental properties. They're single family homes out here. But imagine if I had never gotten into that wealth creation mindset. I wouldn't have had those two rental properties to sell. And you're probably thinking, well, Bezos, they were giving away the PPP loans. Bro, I fucking smoked through those two PPP loans and the SBA, SDIL loan without quickness and had to sell two rental properties to keep the fucking machine chugging along. And then finally, of course, December of 2020, we started selling new franchise locations again. And we just hockey stick back and we bounced back.

And here we are. But again, I share this with you. because multiple income streams is what you need. You need to understand wealth creation, be willing to invest in cryptocurrency like Bitcoin, Ethereum, be willing to get multifamily homes and whether you're buying the apartment yourself or if you are going to invest in a fund

or be part of a syndicate. And if you're like, where do I learn this stuff? Have you tried Googling? Have you tried YouTube? Have you tried going to a Robert Martinez seminar, a Grant Cardone seminar, Cody Spurber, clever investor seminar, a Kent Clotheir seminar.

Like these four motherfuckers right there can teach you all about real estate, about flipping, about buying apartments, about buying single family homes, about renovate and sell, like just between those four. So you have to be willing to spend some of your money on learning this education so that you can go deploy. And the same thing applies for crypto. There's like gangsters out there who are awesome that are going to teach you how to buy crypto in the smart way.

It's the strategies that I use. Same with precious metals. Same with index funds. And then all of a sudden, what you didn't know and what was scary to you at one point becomes something that is actually not scary. And in fact, creates multiple income streams, creates an opportunity for wealth while you sleep, passive income. And you have peace of mind knowing that you don't constantly have to trade for time for dollars

that you could use some of your time to experience life. Because that's how life is meant to be. It's meant to be experienced. And so that brings us to the end of this show, my friends, and always remember that averages the enemy, that success is your responsibility, and change can happen in an instant the moment you decide to flip the switch.

Much love to you all, and we'll talk soon. Back when Q was rolling with Lorenzo and a Benzo, I was banging with a gang of instrumental.