Digital Social Hour - From Bankruptcy to $1.3 Billion: Peter's Bold Journey | Peter Khoury DSH #1154

Episode Date: February 1, 2025

🚀 From bankruptcy to a $1.3 billion empire, Peter’s story is nothing short of incredible! 🌍 In this episode of the **Digital Social Hour Podcast**, Sean Kelly dives into Peter's bold entrepreneurial journey—one filled with determination, innovation, and resilience. 💼 From facing financial struggles and moving in with his in-laws to building R2B Group and securing a $1.3 billion debt warehouse facility, Peter reveals the behind-the-scenes hustle that made it all happen. 💡 Learn how he scaled his company, overcame challenges, and even launched **Give Kindly**, a social business transforming how people give to charities. Peter also shares fascinating insights into the Australian property market, the cultural contrasts between Australia and the U.S., and the importance of building businesses that help others. 🌟 Packed with valuable insights for entrepreneurs, dreamers, and change-makers, this episode is a must-watch! 🏆  🎧 **Don’t miss out**—tune in now and join the conversation! Hit that **subscribe** button and stay tuned for more insider secrets on the **Digital Social Hour** with Sean Kelly. 📺✨ #DigitalSocialHour #Podcast #SeanKelly #Peter #Entrepreneurship #GiveKindly #R2BGroup #FromBankruptcyTo1Point3Billion #SuccessStory #Motivation 🚀 #biggerpockets #realestate #financialfreedom #motivationalvideo #realestateinvesting #realestatetools #realestatemarketinsights #realestateresources #realestatemarketing #realestatescripts CHAPTERS: 00:00 - Intro 00:28 - Peter's First Time in Vegas 01:48 - Australian Basketball Insights 04:58 - Today’s Sponsor 05:58 - Australia’s Housing Crisis Explained 07:43 - Entrepreneurship in Australia 09:56 - Scaling Your Business Quickly 13:45 - Achieving Success: What It Takes 16:40 - Importance of Networking Events 19:25 - Understanding Tall Poppy Syndrome 20:30 - Starting Give Kindly: The Journey 22:25 - Overview of Give Kindly 24:31 - Charities and Fund Utilization 26:15 - Building Institutional Partnerships 28:57 - Round Up Donations at Checkout 31:00 - Ensuring Accountability for Donations 35:32 - Challenges Facing Charities 39:04 - Entrepreneurial Struggles and Solutions 39:46 - The Origin of R2B Group 42:14 - The First Two Years of R2B Group 44:35 - Remembering Your Roots 46:45 - Where to Connect with Peter APPLY TO BE ON THE PODCAST: https://www.digitalsocialhour.com/application BUSINESS INQUIRIES/SPONSORS: [e-mail] GUEST: Peter Khoury https://www.instagram.com/givekindly https://givekindly.com/ SPONSORS: Specialized Recruiting Group: https://www.srgpros.com/ LISTEN ON: Apple Podcasts: https://podcasts.apple.com/us/podcast/digital-social-hour/id1676846015 Spotify: https://open.spotify.com/show/5Jn7LXarRlI8Hc0GtTn759 Sean Kelly Instagram: https://www.instagram.com/seanmikekelly/ Digital Social Hour works with participants in sponsored media and stays compliant with Federal Communications Commission (FCC) regulations regarding sponsored media. #ad

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BED-MGM operates pursuant to an operating agreement with iGaming Ontario. There's a thousand migrants coming in and there's not enough houses. The government's saying they have to push for an extra 160,000 over the next three years. But the industry over there, they say we need to do this extra 160,000 over the next three years. But the industry over there, you know, they say we need to do this over here. But on the other hand, of things that make it quite difficult to do what they need to do with regulation and bureaucracy and a lot of politics. Yeah, well, that red tape, I mean, they want to. I just don't think they're they're capable of hitting that target now.

All right, guys, all the way from Australia, we got Peter here today. Thanks for flying in. Thanks for having me Absolutely. Pleasure to be out here. That's a long flight. So I appreciate that. Yeah, but it's time travel, right? So we're tomorrow right here. So I flew back into the past and tomorrow I'm going back into the future There we go. How you like in Vegas? Is this your first time here? No, not first time I actually came here after the I went to see the Brazil World Cup We've done Brazil Argentina Vegas, but then a lot younger, a lot of different circumstances now, wife and two kids.

So it's a very different Vegas experience than a single man going and taking it on after the World Cup. I love it. So you're a big football fan. Yeah. I mean, I think it was more experience. I'm actually a big basketball guy, but yeah, when you get the opportunity to go to the World Cup, you don't say no.

What's your favorite era of basketball? You know what? I like it today. I do like the whole three point world. 53 pointers a game. Yeah, exactly right. Exactly right. I'd like it more if I could shoot more. But yeah, it's definitely fun to watch now. These guys are just different now. They shoot from everywhere. They dunk from everywhere. They're less limitations. They're doing a totally different world right now. Is it big over in Australia, basketball? It's very clicky. I mean, I suppose it's quite large, but nothing like it is in the States, right?

So you know probably about 25%, 30% of the people love it, and then the rest of it just accept that it's big. Makes sense. You guys got a few. You got Ben Simmons, right? Yeah, I mean, Josh Giddy. We've actually got a fair few right now. I mean, Patty Mills has always been our. Patty Mills is good.

Our poster boy. And then we've got, you know, you know, there's actually a crap load of us in there right now. Dyson Daniels is killing it right now. He's, uh, what he's doing, like four to five steals a game. Damn. He's killing it. Deliver Dover, right?

Yeah. Deliver Dover. Yeah. I don't think he's playing in the NBA this year. I don't, I'm not sure. He's getting older now. Yeah. Yeah.

But he had a good run at the Cavs. Yeah. Thiavel as well. Thiavel. He's good. I mean, we have, we've got a really good squads. Yeah, Thible as well. Thible, he's good. I mean, we've got a really good squad. I mean, we've done all right in the, I don't think the last Olympics were done well, but the year before.

I think next year we're going to have a really, there's a lot more emerging guys coming out. So it's going to be interesting. What sport are you guys known for though? Australia has got Aussie rules. So it's got that AFL, probably you don't know it, cricket. Oh, cricket, yeah. Cricket, AFL, rugby league.

Okay. So it's basically, you know Very different sports American football tried to watch that yesterday don't understand Lot of starts top man. I don't know what exactly was going on too slow for me Yeah, but it's like they're playing the ice so they were playing the snow. Oh that game the Buffalo Bills game That was nuts. I was not man. I was freezing. Look at me at them I was sitting there eating a piece of pizza going man. I'm cold Doesn't make sense. But uh now we've got a lot of sports up there We're very sporting country and we punch way above our weight nice

I can you say we've got like three people in the Formula one when you can oh really yeah, yeah That's more than us. Well. I think you guys had one, but it got dropped. Yeah. Yeah, we're not good at racing Yeah, yeah I mean you guys got your own little version of a, right? NASCAR and that sort of stuff. Like, we got our V8s. But yeah, Australia is very much a sporting country. We take it very seriously. Like, our population is so small compared to you guys.

We've got like 24 million total. But we still compete. Yeah, we got states bigger than that. Yeah, I'm telling you. I think your GDP of California is three times the size of Australia's. Wow. Yeah.

That's crazy. We're a small little place. Yeah. But it's a good thing, too, for guys like you in business. Yeah, I mean, it's three times the size of Australia's. Wow. Yeah. That's crazy. We're a small little place. Yeah. But it's a good thing, too, for guys like you in business. Yeah, I mean, it's very good. You can definitely do some cool things there, dominate, get a lot of stuff from overseas, bring it down there. But the difference with business, obviously, market size,

which is why we're doing what we're doing here in the States. When you talk about going mass market to Australia and 24 million people compared to 300, close to 400 million people, totally different ballgame. There's probably not many billion dollar companies over there. A few, but you can count them. On one hand. Yeah, I'd say that nowadays they're getting bigger. The Fortune 100 is up there, so you're saying about 150, 200, maybe more.

I might be talking out of my ass, but I'm sure there's stats for it. is up there, so you're saying about 150, 200, maybe more. I might be talking out of my arse, but I'm sure there's stats for it. But there are definitely some big players out there. There's a lot of managed funds out there that are doing quite well. But you gotta remember, Australia's also a very wealthy country, right?

Especially with their property market. I think Australia's got the largest amount of millionaires in terms of capital, just in terms of- Yeah, Sydney, right? Yeah, yeah. What's it like, a million dollar house on average? Well, yeah, you've got people there who have never worked a day in their life,

inherited a house worth 200K, it's now worth 1.2, 1.3. The housing market, that's crazy, which is why my company in Sydney does so well, but- Did you time that market? Like, were you getting stuff? I wish I was that clever, yeah. We were working on it for a very long time,

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and then just things got real crazy. And then now it's getting even more so because it's like the housing crisis situation over there. Yeah there's not enough. Well yeah so we got migrants coming, 600,000 migrants coming in and there's not enough houses. The government's saying they have to push an extra 160,000 over the next three years but the industry over there you know they say we need to do this over here but on the other hand of things they make it quite difficult to do what they need to do with regulation and bureaucracy. A lot of politics.

Yeah, well, that red tape. They want to. I just don't think they're capable of hitting that target now. Companies like ours will help. An Australian company, they'll go a long way to helping achieve that, but they kind of try to despite themselves, they could do it quite easily. But there's a lot of bureaucracy to get past.

That's just governments all over the world. Yeah, yeah, yeah. They're not efficient. Exactly. It's not exclusive to any one country, man. They have a nice habit of shooting themselves in the foot, but publicly claiming the victory. I just saw one, I forget the guy's name, but he got a huge budget to build electronic charging

stations out here. He only built eight. He got like billions of dollars. Yeah. I mean, you can do better by going to the shopping malls and batteries, right? Yeah, it's crazy. I think the best example I had was in, I was traveling through Lebanon and I was on one of those big highway roads and it was just like pothole after pothole. I mean this thing was like out of control man and yeah it's like yeah they just got a 30 million dollar budget to fix these potholes up. Like how'd they go? Having seen a single person on site but uh... That's gone in someone's pocket. Yeah exactly right man it's

just the way the world works. I mean they greased the wheels and don't get much done, but up to us private citizens to do what we can to make it all happen. How do they treat, how does Australia treat entrepreneurship over there? You know, they fly the flag, but they don't help much. They try to say, yeah, well done, good job. Let's support you. But you know, I don't want to complain because all the opportunities there, right? So you can't spit in the face of opportunity in Australia because they kind of let you go your own way.

But I think it's a Dana White said it best. All you want from your government is to kind of protect you, uphold the law, and just leave you the hell alone, which is very much the same in Australia. I mean, the opportunity is there. The marketplace is there. You can succeed. You can fail.

You're all off your own merit. There are government things out there designed to help people, but they're not really for me. So I wouldn't get too involved. So I can't badmouth it too much. I mean, it's the country that feeds me and all the opportunities there. But again, as little I can do with them means I'm doing a good job. I agree.

Stay out of the spotlight. Just do your work. I mean, we're involved somewhat. We've got, you know, a really good guy on our board who's ex, an ex-minister. But yeah, I don't try to play too much in that pool. That makes sense. I'm the same way. As least involvement as possible. Yeah, stay apolitical, man, because I mean, especially here, right?

Here you got such different opposing sides. Oh yeah. You know, you can't really be on both sides and be apolitical. And in Australia, we think they're both shit. So we get to live with the fact that in Australia's freedom is that you just literally ridicule both sides and you're fine with it, right? No one really likes either one. So we get to live with the fact that in Australia's freedom is that you just literally ridicule both sides and you're fine with it, right?

No one really likes either one. Yeah, it's crazy how much American politics bleeds in other countries. Yeah, yeah, yeah. I mean, Australia is probably one of the most influenced places by America in terms of, you know, if America sneezes, Australia's the first one with the tissue.

So we're right behind you guys on pretty much everything, whether it be conflict, security, or what have you. So yeah, but again, I'm so far out of that political world, it's out of control. I just want to do my thing and focus on my entrepreneurial missions, but also my social causes, which is my reason for being. Absolutely. Yeah, we'll dive into the social stuff. I want to first learn about how you scaled this thing because you scaled quick.

Yeah, you're talking about my Australian one, yeah? Yeah. Yeah, so a group in Australia is called R2B Group. It's helping people buy properties out of deposits. So for those who don't know the Australian property market, it's really expensive to get in. So the average Australian takes 10 years to save for a deposit. When you think about rent, it's $500 a week.

That's $260,000 you put to your landlord before you can even start paying your mortgage. And then the thing about that is the housing market's growing so significantly that even if you're saving for a 40, 50k deposit, by the time it's time and you're ready to get your 50k, it's now 100k. Now it's 200k.'re ready, you got your 50K, it's now 100K, now it's 200K. So the goalposts keep moving.

So originally the company was set up to help people with the deposits and how we did that is we had nine different companies in the group. So you come to me, Sean, you wanna buy property? So I go, okay, no problem. You go through our process, you pay us a fee to be a part of an incubator to get you ready.

You then go into our finance division, we get you pre-approved for a loan, and let's say we make commission off that three grand. And then you go to our real estate division, we source your block of land, let's say we make 10, 20k off that, off the commission, just like a normal agent would. And then we put a block of, a build on that block of land, we build it for you, let's say we make 50, 60. And then we go to our legal team, which we own a 50% stake in, and then they'll do the conveyancing.

So collectively from a client, you earn 80, $90,000. Wow. And then what we used to do is we take that money, put into our credit license, our bank license, and issue that to you as a deposit. And that's hard going, right? Because you are literally funding this big operation, but most of the money that comes in actually goes out as an asset. You're still getting principal interest on

it. It's still secured. And that was the first three years of just paying, right? And then, you know, year four, year five, we decided to establish a managed fund, which was the fund designed to raise money through the public. And then from that money, we'd get the deposits in there so we could scale without having to dip into our own pockets all the time. And that was quite successful. So that really started going, call it eight months ago, nine months ago, by the time we got through all the red tape. And then all of a sudden we had other people's money.

So we went straight from having a $30 million win for, sorry, revenue, and a $2 million loss, because we raised some capital, we invested it. And then July 1st this year, we kick off the new fund, and then we sign up about $80 million in business straight off the bat with about a 20% EBITDA. And that went really good and really strong, and we were ready for it. We raised the capital, invested the right way,

but as soon as we got the fund going and everything was going really well, we got a knock on the door. And when I say a knock on the door, we'd been applying for what's called a debt warehouse facility, which is like a bank gives you a pool of money to lend out underneath your own brand. So I counted 167 rejection letters of me applying

for this in the last six years. And now that everything was going well, we had our fund. One of the guys who rejected us about 30 times said, yeah, we're ready to pay. We were originally applying for a $10 million debt warehouse, which gives us 100 million to lend out because we just did the deposits. And we've come back to the table now with $1.3 billion.

So starting February next year, we've got $1.3 billion to put out, which is 1.3 billion in sales. So there's no way we can build all that. There's no way we've got $1.3 billion to put out, which is $1.3 billion in sales. So there's no way we can build all that. There's no way we can do all that. I mean, we've only raised a little bit, right? So we've got to just work our ass off next year and go from a company that earned $3 million

to $90 million in the last three months to now being a company that could do $1.3 billion. And thankfully, we've got a really good team. So we've got a really good CEO, nice, good board, amazing bunch of general managers, and a lot of people now. And I think we're really up to the task, man. But it's going to be a really amazing next few months, which is why when I came out here to do the podcast

and a few television interviews, three or four days, have to get right back, man. It doesn't stop. Yeah. That's exciting, man. It is, man. I'm pumped. It doesn't stop. Yeah, that's exciting man. It is man, I'm pumped. It's really a good time, eh? It's, what's the expression?

You work your ass off for six years to become an overnight success, right? But I'm not gonna claim the overnight success title yet. I mean the work, when you win these contracts, the work doesn't stop, it starts. Exactly. So it's now time to get really into it, get into the weeds and

Hopefully 12 months from now. We'll have a totally different ballgame. That's super cool, dude. Yeah. Yeah, it's super exciting, man Yeah, people say that about the podcast or like you blew up overnight. Yeah, I'm 1200 episodes Everyone I mean, it's it's it's funny. It's a connection that entrepreneurs have Everyone always sees you at the end, when you've made it, you're successful, you're living a certain lifestyle, but no one gets the bullshit it takes to get through, right? The working through till two, three in the morning,

the ideas that come at five, six in the morning that you have to just write down, because it's killing you, and then you're like, why isn't anyone watching, why isn't anyone coming, why aren't they making money? I remember doing five, six million on revenue and feeling broken and over felt in my life. What the hell's going on this place? But you know, I think it's a connection that we all just get it I mean we'll ask how was the struggle right because it's uh, it's tough. Yeah, we got that trauma bond

Yeah, exactly right. No, but people see yeah people see those revenues and they're like, oh you must be rich Yeah, it's like now Yeah, we like 50k a year. Yeah, we call whiteboard whiteboard rich. Yeah, cuz my first company We still you know write up our contract we sign a deal put on the whiteboard and then you know go borrow 10 bucks from Mom to go have a coffee. Yeah, come on man. That's the only thing they call it excel sheet or millionaires Yeah, there we go. It works the same way. Maybe I started back in the whiteboard For Excel was doing as I needed I started back in the whiteboard days before XL was doing as I needed to do.

I remember those whiteboard sessions. I'll never forget those. Man, I still have them. I mean, my office at home, I put in a six meter by two meter whiteboard in the back of my office. I love it. Yeah, beautiful kit up. I mean, we have that also, that entrepreneur's insomnia,

right, so I wake up at two in the morning, I go, man, I got this idea. All right, just sleep, we'll do it in the morning. And I'm like, nah, gotta get to my whiteboard and sort it all out. I used to wake up panicked at midnight, like for my Facebook ads. Like I was like, oh, I gotta make sure

they're running properly. Yeah, yeah, yeah. I mean, cause that's the worst, right? Cause Facebook has this thing where they just kind of, it's been declined and you're like, you're doing the whole night, nothing's happened. It's like, oh, come on, man. And then you gotta make sure your,

sometimes your site crashes and you're still spending the money. Or like you. Like, oh, come on, man. And then you got to make sure sometimes your site crashes and you're still spending the money. Yeah. Or like you get banned on Facebook. Oh, man. I'm getting, thank God it's not my problem anymore. Thank God I'm out of e-commerce. Yeah.

The margins were too low. Exactly right, man. But I mean, I'm now getting into them. You're not setting me up for that. You're not making me feel good about that one. But yeah, the margins are low, man. But I think the best thing about e-commerce is, and that's something I've played in for long,

is the actual scale of the market you're playing with. It's nuts, right? Right, you can scale. Yeah, I still run Facebook ads for my events. And they're still really good, though. Yeah, I saw some of your podcasts. You talk about your networking events there. Yeah.

Do they have those in Australia? They have these networking groups. They have these networking parties. They have these networking parties. I've just joined one recently, which is more like not high net worth, but people with 30 million plus in revenue in the company. OK, that sounds pretty good. They're stupid expensive to get into.

I mean, they've got things like BNI and that, but it's just a lot of work, a lot of commitment. But they're small, 15, 20 people, 30, 40 people. But yeah, maybe I'm not part of that scene. I wouldn't know as much. There is an entrepreneurial scene in Australia. But again, when you're in the thick of it, you just don't have that time to commit to it.

Whatever time you're not in the boardroom or in the office, you're kind of either schmoozing, shaking hands, or trying to spend time with the family. I'm trying to make sure I don't miss these kids growing up. I feel that. For me, it's important just to shake hands for potential podcast guests and sponsors or whatever. And that's your bread and butter.

And you know what, that was my bread and butter too. Nowadays, I don't operationally get involved too much with my big firm in Australia. It's more about keeping up with investors, doing the big deal, shaking hands, and all that sort of stuff. But it's just a different point now in the cycle where I've got the, I try to keep the CEO

at the front of mind for everything. I try to have him be the face of everything because at the end of the day, the chairman isn't the one who, everyone's gotta get behind. The CEO impacts the board and the chairman's vision. But the CEO is who you hire to represent you at every level.

So, you know, now he's the one, you know, a guy called Philly, he's doing all the handshakes and kissing all the babies and doing all this photo ops. So he's doing a great job of that and probably a lot better job than I would because he's got way more patience than me. I love it. You've had issues controlling your patience. Oh, man, I think it's just all of us, right? Like we're always thinking, we're always moving.

You know, when you're stuck sitting down for a few hours or two, you get yourself a bit antsy, right? And don't get me wrong, it's not a problem. I control it as much as I need to. I'm just glad I don't have to anymore. Yeah. You know, I do what I want to do and what I feel benefits the company

under the direction of the board and the CEO and do my best to get good results for the firm and for everything I'm doing, particularly this charity I've had, social business I'm working on, it's doing what I want to do, what I'm passionate about, which means that I have to control those things that you're in a child trying to just get out of his skin and run around and dance. Yeah, less pressure behind the scenes.

There's pros and cons to both. Yeah, I don't think I've got any interest in being at the forefront of things. I think even now for GiveKindly, I've just appointed a GM who'll be doing all the media stuff. So this will be one and done for me. Australia has this weird thing, maybe it's not unique to Australia, it's a lot of tall poppy syndrome. I've heard of it. And this is a big cultural difference between Australia and the US, right? In US, you guys really get behind your millionaires,

billionaires, you kind of go, you know, you've done well, good on you, congratulations for all you've done. And by the way, I'm not in those categories, right? But in Australia, it's kind of like, look at this loser. Oh really? Yeah, pull your head in, mate. So generally speaking, you don't want to be seen as that guy who's doing those things.

Wow. I prefer to be the legacy guy, which is creating difference, making a change. But I'm happy to do that, just behind the scenes, pull the strings in terms of the charity stuff, what it's between me, my family, and the big man upstairs or whatever. I do so, the behind the scenes is

contrary to what I'm doing today, but definitely where I prefer to be and where I'm more comfortable, where I think I can make more impact. The less they say come and the more you can do. Yeah, that's interesting, yeah. I like that. So is that why you started GiveKindly?

You wanted to make some impact. Man, so GiveKindly, I started when I was 13. So 24 years ago, that was, it's always been my only mission. So at 13, I'd done a mediocre job of doing whatever I could, but it wasn't a social, digital thing back then. So that was first failure. And then I failed again at 18. I tried to do it again with again, very small budget.

And then 25, 26, I gave it a real shot, failed again, but what I mean by real shot is I spent on the marketing, but didn't spend on the development so that crashed. And now I'm 37 going on 38. And I just said, you know what, this is, it's it. I'm now decently capitalized. I'm not, you know what? This is it's it. I'm now Decently capitalized. I'm not I haven't got enough

You know, I've got nothing else holding me back right now. So I thought you know, what if I Give this one last really good shot I've always said I wanted to do it in the States as opposed to Australia So I just thought I'm not gonna do the Australia soft launch and make it happen there I was gonna put all my energy into the US and try to see if I can make a real impact and That's what's always been about for me. So even gift kindly I mean are to be as much as I'm passionate and love it. That's helping people for a living, right? Every company I have has to have that ethos helping people for a living because I feel like when you fail you succeed

And thankfully, you know I've done a lot of businesses call it, you know, 12%, 14% strike rate of big successes compared to miserable losses, but each one was a lesson. And now GiveKindly is that, you know, zero fear in trying. I'm basically committing basically a big stack of all my wealth to doing it. My wife's behind me, everyone's behind me, and we're just gonna give it one big crack, and we've got a good team behind it now,

and yeah, I'm really pumped for it. I love it. Could you explain the concept of it? Yeah, so simply put, I think the world has enough charities. They don't wanna be an extra one. The whole purpose behind Give Kindly is not just giving, but giving people the opportunity to give. One thing I've always found with all my philanthropic

endeavors and all the things I've been involved with is the everyday Australian, everyday American, they all want to give. So what the GiveKindly platform does is quite simple. There's a e-commerce market out there. People buy products that they want anyway. So right now we're focusing on women's clothing and accessories. A percentage of each of those items from our profit goes towards a charity of your choice.

So you have an affinity with that purchase because that affinity, that purchase is going towards your charity, something you believe in. So the whole point is to just get people doing whatever they want to do regardless and having a percentage go towards a charity of their choice. is something you believe in. So the whole point is to just get people doing whatever they want to do regardless and having a percentage go towards a charity of their choice. So now it's again women's clothing and accessories, but the long-term vision is to basically fund charities

so the charities can do what they do best. Because I believe charities get a lot of heat, right? And some rightly so, and some not so much. But people are putting donations in to feed the homeless, to expect food to get to homeless, rightly so and some not so much. But people are putting donations in to feed the homeless, to expect food to get to homeless. But charities have operational costs. They need to employ staff, they need to have a building, some of them. They need to get their websites going. So not every dollar goes towards that. And the nature of the people who run these charities aren't like us in terms of being entrepreneurial.

So they can't take that money and reinvest it to have ongoing revenues going towards these causes. And nor should they, because they can't risk people's money. So the whole concept is to develop things that develop recurring revenues for charities so they can do what they do best. And that's entrepreneurs can take the risk,

because I think that's our responsibility. But not just that. I want to demonstrate that you can make money off doing it. So it's not a charity from my end. It's a social business. Because I feel like if I can demonstrate that, hey, you can do good things for the community and make money, it can be a model that people emulate.

My long-term vision is having 13-year-old Pete out there saying, hey, I want to do this business, but I want to center it around a marketing focus on social cause and charity so that impact can make a bigger, that ripple can keep going and make great impact. That's cool. Yeah, one of the issues with charity is how they use the funds too. Exactly right. And it's very regulated in Australia.

But again, I get two elements of it, right? Because people look at a cupcake stand and say, hey, 100% of that money's on a charity, but you've now made $600, right? But then you look at those big institutions where you're actually having to house 1,000 people, feed 1,000 people. You need to market. You need to go out there.

You have to put the publicity out there. You have to run these big events. And yes, they maybe got a billion dollars in there, and 500 million is going towards those causes. But that's 500 million compared to $600. Fair point. So they're making greater impact. They're doing more, but the percentages don't align.

Because just like we were talking about before, you had your business. They're seeing your revenue. They're going, hey, you should be rich right now. The same world applies to them. But they live in a really different world than us, because we make money, we reinvest the money, and then we grow from there.

For them, they receive the money as a gift and they have to spend it and then have to beg for it again. They have to spend it and have to beg for it. The system doesn't work. So, you know, the system where it works the most is where there's institutional partnerships and, you know, there's a company that has, you know, a partnership and they have an alignment to a cause and they say, as a company, I want to support that cause. And we saw it firsthand. We built a disability center in Zimbabwe.

It cost 30k, which in Australia doesn't buy your letter box. But it was our company deciding this is a cause we wanted to support and back. There was no tax deduction associated with it because it doesn't go to a charity. We've physically built it. But that alignment worked, but really it's not sustainable unless there's a corporate edge to it and people are making money somehow for it to go there.

Because yeah, I get their perspective. They want to get all their money towards the right things, but just look at the way the world works. If they just did that, they'd be able to do it once and then they're done. They're closed the doors. That's why your model makes more sense, because they're getting purchases every day.

Well, yeah, it's recurring. Eventually, the goal is that they can count on it. They can expect it to come every single month. That's the big vision. And then when that comes, they can drop their reliance on generating more revenue, and they can just live with the fact that it's coming in each month and play towards their strengths. Right. I mean my ultimate

vision is that the charity focused on feeding the homeless just focuses on feeding the homeless. Right. Yeah. And again I can't begrudge them not doing that now because the system doesn't work in their favor but I definitely feel that they need some support and help. And the only way I can make a change beyond myself is just demonstrate that, hey, you can be very successful, make money for yourself while supporting these causes and hope that either, A, we're successful enough

that we could do it off the back of GiveKindly. But ultimately, we could just demonstrate that GiveKindly is successful. And then 1,000 other people come to compete against me, maybe do better. But ultimately, we could just demonstrate the gift kindly and successful, and then a thousand other people come to compete against me, maybe do better, and then they take the baton and live the burden of trying to make a legacy and impact. I love that, because either way, it's helping people. Yeah, man.

I think the first launch I had at AT, I talked about the metaphor, that the person who's cold and homeless doesn't care what you thought about when you gave that jacket up into the homeless being, they just want to be warm. So that impact, I don't care if it comes from me, I don't care if it comes from anyone. I just want that change to happen and that impact to happen. And I think what it will have is a ripple effect on society because people feel good about giving.

And the more people feel good about giving, the more they feel good about themselves. And the more they feel good about themselves, the more they do with themselves. So it's trying to breed a culture of giving and intertwine it with the culture of entrepreneurialism. And hopefully, the side effect is lots of people make a lot of money and lots of good things happen.

Love it. I've seen a similar model at grocery stores. So when you check out, I'll say you want to round up. Yeah, that's the thing. They're asking the consumer to round up. Why aren't they just putting up? And I usually say no, to be honest. Yeah. And I feel you too, because it's also a lot of pressure, right? Especially here, sorry, man, in the States, this whole tipping culture has gotten so confused, right? You have to tip on takeout orders. Well, so you see a receipt, right? You see a receipt, it's got like the price, 478 different taxes to it. And then you finish it, OK, and now you have to tip again.

20%. Yeah. And then I don't begrudge it, but it's confusing, because then they're going to ask you on top to put more money there. So in Australia, it's not commonplace. And again, I'm not. Oh, you're not supposed to tip? Well, I mean, you can. it's not commonplace. And again I'm not- Oh you're not supposed to tip? Well I mean you can, it's not-

But they're on an hourly wage probably. Yeah, it was on a good hourly wage. Yeah here they're not on like very minimal hourly wage. Yeah I think our minimum wage is 25 bucks an hour. Damn! Yeah it's like two dollars here I think. Yeah, yeah, yeah. So we would go to jail for that.

Like seriously we would go to jail for that. But yeah, it's a different culture altogether. But again, asking the consumer to put on top doesn't make any sense. I mean, are you trying to do good? Are you just trying to look good by making people do good for you? And they get to write it off.

Yeah, exactly right. It makes no sense. So for us, we give the money from our profit side. And for the meantime, because of technology, this is our minimum viable product, for the meantime, because of technology, this is our minimum viable product, for the meantime, we are running that off. But our goal is within six months time, is that you will get that receipt.

So you will get that written off. So step one is get them to buy what they would otherwise buy already, and the percentage goes towards the charity. That's step one. Step two is to get the tax benefit for that as well, so we can actually start getting deductions out to the community for doing good. That makes sense.

So we're not out there to make the big hits on this. We're trying to make lots of littles. Yeah, my issue is too, if you actually look into the charities out there rounding up for, and you look at how they're spending their money, it's just, it's not good. Yeah, I mean, there's a lot of that going on. And I think as well with this as influence, right?

If you're the person who can provide the capital, you can basically put some kind of requirements to that capital. If you're generating $60, $70, $80K a month right now to the one cause, and it may be a small and a medium charity, you can have the conversation going, guys, we're now giving you this money, and we're happy to give you this money.

But to maintain that, we're going to have to see some kind of results from that. And there's accountability to that. Right now, I don't think there's that much accountability at all. But also, again, I don't know how it works in the States, but some of the guys who go out there to raise money for charity, a percentage goes towards the salespeople.

Yeah, I think that happens here. Yeah, 30% to 40% or something like that. Damn, Jesus. Actually, I know it's in the States. I think there was one of those YouTube clips of what do you do for a living. Oh, Daniel Mac. Yeah, yeah, yeah.

And then, yeah, so just the percentage goes towards them. And like, OK, I get it. You've got to eat. Everyone's got to eat. And for the record, I don't begrudge anyone eating, man. It's hard out there. You've got to eat. Everyone's got to eat. And for the record, I don't begrudge anyone eating, man. It's hard out there. You got to do what you got to do. But I just think there's a sanctity of the whole charity thing that you have to preserve. Because if you ruin that image to the person out there, you can't recover from that. You see it nowadays, you know, with what you're saying makes

sense. You know, how they're spending their money, it doesn't make sense. And that one person, one company that's doing it, is then gonna ripple effect to other charities. But some of these charities need to exist. Otherwise, nothing gets done. Well, right now, just donating, for the most part, isn't a pleasant experience. Because I've donated to Save the Children and a few others,

and they send me shit in the mail every month asking for more money. Yeah, but then that comes back to the system, right? What choice do they have? Right, they need to have raised more. Yeah, you have to. I mean, again, it's frustrating. It's annoying.

But it's logical that that's what they have to do. Right. I've done the same thing, right? Because if the, OK, so let's say you get your ultimate outcome. They spend your money on saving the children, right? That's your ultimate outcome. So if you're giving $1,000, you want that $1,000 to go to that cause, right?

That's your ultimate outcome. So then what? So if they got $100,000 now come through from that drive people have come through, they've now done exactly what you want them to do. Do their clothes shop the next day? No, they got to keep doing it. They got to keep doing it, right?

So again, it's not ideal The system's flawed it relies on the donations of people. It's You know, it's annoying. It's Constant it's somewhat aggressive at times But you kind of get it because if they got that cash from you they've made a difference They want to keep making that difference. And there's no system out there right now designed to give them recurring revenue to keep doing it.

Right? And it's not like they can take your money and go, okay, I'm going to invest in this business now so I can have a recurring revenue come into the firm. Some companies or some churches and charities do that in Australia, but they use their own money from the people internally first, right? But Sustainably speaking charity only they got no choice and this that's what I feel give kindly Intends to be intends to be that choice where they can stop breaking everyone to give more cash

Yeah Because they know more money's coming in next month Because I can only imagine man like if your goal is to spend every cent on your cause then you can only do it for one week Yeah, I must be stressful for charity owners. Yeah, I mean you get the perspective again. I'm not Coming to the you know, giving them a hurrah and they're saying they're doing a great job I don't know specifically which ones are which ones aren't And I'm sure there's a lot of them that are doing a rubbish job. But I'm sure there's also a lot of them doing a great job.

And where GiveKindly intends to be is to work with your angst and go, let me take that responsibility off you. Let me instead take that burden off you and go, let me be the one to give you that cause through my entrepreneurial endeavors. Let me make money by doing it so I can show the world this system works and keep it going.

And I'm not the first to do it. I mean, shout out, there's a lot of social business and ventures out there, like Tom Schuers is one, for example, that make direct impact. So I'm not a pioneer of intermingling social endeavors with business. But what I hope to do is get rid of that burden from the individual who just has to keep redipping

into their pockets. Because there's only so much you have as well, right? Right. It's a, you're in the same world as them. You have to keep making more money to keep supporting them. Yeah. I could definitely see that it's a big problem. If you could solve it, it'll do well.

Yeah, I mean, that's the dream. That's the goal. And I think that's how everything starts, right? Yeah. You have your big long-term vision and goal, and just kind of chip away at it, just like R2B, right? We had our big dream of getting that warehouse, and it took six years to get it across the line.

And sometimes it could have taken 20 years. Sometimes it takes 30 years. Sometimes it doesn the line. And sometimes it could have taken 20 years. Sometimes it takes 30 years. Sometimes it doesn't happen. But this one has now been going 24 years since 13. It's just that how to make the impact happen with the support of the people. And if they believe in the same vision, hopefully we can work together to make it a reality.

Absolutely. And you started at 13, and you had humble beginnings. So you weren't wealthy back then. I mean, no. Like, listen, I want to give all credit reality. Absolutely. And you started at 13, and you had humble beginnings. So you weren't wealthy back then. I mean, no. I mean, like, listen, I want to give all credit to the parents. They gave us every opportunity out there. I mean, they struggled like hell to put us

in a decent, good school. And they done their best to not show us any of the struggle. But I mean, there was also a lot of benefit to that, right? So when my dad, May Rest In Peace, got sick, and me and my brother would go to the, he had a printing press at four or five in the morning before school and school holidays and do some things just to keep it going while he was dealing

with his MS at the time. And looking back at the time, man, those were the best times, because they teach you so much. We came out of, we're living based out overseas, moved to Australia. And from there, my parents just tried like hell to make things happen. My dad, again, may he rest in peace,

just kept trying different businesses, somewhat really good. Some struggled. And we saw the struggle through him, so we knew what to expect. While my mom just worked her ass off in you know, she was a Corporate kind of person and just kept putting food on the table together and you know So they set the blueprint of what hard work was needed and yeah

Me and my brother and sister took the baton and done the best we could I love a similar my parents My dad was entrepreneur and my mom was the corporate. It's good to experience both perspectives. Well, you need it, right? Because the entrepreneur is rich one day, broke the next. Right. And then the grinder who sits behind the desk and does what they need to do just keeps the mortgage going, keeps the food on the table and struggles through it all because you just don't know. I remember when I got engaged to my wife, I said to her, understand it's not easy being married

to someone like, you know. Entrepreneurial, yeah. Yeah, yeah. Because you know, A, there's a lot of risk and my risk is your risk. And the nature of my risk is I continue to keep taking it, right, because most people's job, let's say you're a builder, you start,

you do the slab frame, you build the house, do what you need to do. An entrepreneur takes his money, puts it into a pit, and hope it comes out together quite well. And sometimes it does, sometimes it doesn't, and you always have to be the lead investor, right? Yeah. Yeah, Australia's investment culture's very different

to the US one, right? Companies don't invest in a company until you're profitable. Australia's investment culture is very different to the US one, right? Companies don't invest in a company until you're profitable. So it almost defeats the purpose. Whereas the states has this, it's actually something I commend them for, a really good investment culture and pre-seed seed and all those funding rounds. In Australia, that doesn't exist unless you're the son of a fund manager.

Right. Got connections. Yeah, exactly right. And again, even then it's so rare. It's just so limited. Yeah, no, that's a great point. It's tough dating an entrepreneur. I've made and lost my money twice since I've met my fiance and she's been with me both

times. And yeah, she easily could have left me, man. Yeah, man. It's, we went, so we had a house in Kellyville that you guys won't know what that is. It's in Western Sydney. And we had like four investment properties. Just got married, went on this massive tour, lived a good life, had our first child.

A month after our first child, we were packing our boxes to the house, house for sale, to go move in with the in-laws facing bankruptcy. And you know, best thing that ever happened, because I'll tell you right now, R2B started that day. Damn. Because what happened was the property market in 2018, nothing was selling. December 22, 2018, me and my co-founder, a guy called Yusuf, were sitting

in my house having shisha, stressed the balls. I don't know if you can say balls on the podcast. You can. Okay, cool. We were stressed hard, right? And I got some insurance money from a small boat that got hit by a car anyway. December 22, we're now really stressed out, like six grand I got. I gave three grand to Yusuf, three grand to me. I got to figure it out next year, because I'm trying to sell all my houses, nothing's moving. So I went on social media, and I put,

screw this, I'm just gonna sell it myself. No real estate experience. I was a financial planner before then, but I had a bad investor. That guy's in jail now, but lost a crap load of money. I went from being super wealthy to super broke. Anyway, I mean like super broke. Anyway, moving in with the in-laws broke and then the other broke.

That's right, Bob. Yeah. And they're all some people, so it wasn't a bad experience. But anyway, that night, December 22nd, I put up a post, why when you can buy a deposit, finance provided. And I put up photos from my Kellyville house. It'd been up with an agent for a good three months, not a nibble.

And it was December 22nd at 11 a.m. when Yusuf started leaving to go towards his house, an hour drive, and I get one response, and then a second, and a third. We stayed up that night to 4,700 inquiries. What? Yeah, and then we go, well, I'm not gonna just sell my house now,

it makes no sense. Called a developer friend of mine in Queensland, which was a cheaper market back then, and I said to him, man, for these houses, they'll go for 550, 600, would you give me 50k comms, commissions on them? He's like, ah, I'll go please. He goes, okay, I'll give you five for them.

So December 22nd we started. From those leads I converted a sale on December 25th, so Christmas, December 26th, the day after Christmas, I got a client to commit to one of those places in Queensland, still having no idea how we're gonna do all this, right? So I got the commission of 60k, that's 10%, put it through, whatever. And then January 3rd, got an investor for 300k, just a friendly, one of my clients for

financial planning who'd been with me forever. And then by May that year, I paid them back their money times too. And then we started really, the first two years was just figuring out how to try to make money from it, right? So that was the tricky part. And then it was like this acquisition pathway of buying different companies. Because even during that time, as you know, COVID,

trying to find people to work for you was hard, right? The job rate was just so high. So we ended up opening an office in South Africa, opening an office in Philippines just to get more people. And then we didn't screw this, we just have to start acquiring. And the best way to do that is have people believe in your vision. And they came on. But when you talk about that, you know, loss and make, it was literally probably about a week before bankruptcy that, you know, R2B group started, right?

So it was, you need that, that real push, man. Everyone asks, you know, how do you do it? I mean, it's just it was, you need that real push, man. Everyone asks, you know, how do you do it? I mean, it's just necessity. It's not that I don't need. Yeah, when your back's against the wall, you find ways. Yeah, exactly. That you can't even think of. Yeah, I mean, and that's exactly,

and you know, in that period, like, we'd lost my financial planning firm, you know, a few months before. We didn't go bankrupt, which was good. We just threw in the towel and paid off our bills between me and my brother and sister. But I had like a year, and I just tried everything, man. Like I tried Give Kindly again,

I tried all these different things over and over and over again. And in that year, my number two use have just stayed with us. He took a stupid pay cut just to stick around, because I'm big picture. He's detail. You can't have one without the other.

And I know my, I think that's one of my biggest strengths as an entrepreneur is knowing my weaknesses. And that is, I'm not the guy you want, you know, running the organization. I'm the one you want with the ideas. The visionary. Yeah, the visionary and the sales. I mean, I like to think I'm pretty good at getting the deal done.

But the vision is where the company needs me. But a vision without execution is just the dream, right? So I need my detail guy around. So he stuck around for a year. And we tried different things. And literally just three days before Christmas, man, we started it. And then December 22, 2018 is launch date. literally just three days before Christmas, man. We started it and then, you know,

December 22nd, 2018 is launch date. So every December 22nd, we have, we have my big company Christmas party, and then me and Yusef go off for a nice drink and a shisha and just go, shit, here we are. I love it. I love it. You gotta remember, man, you gotta remember,

because you could be there again tomorrow. Absolutely. There's no guarantees. You can't forget where you came from, man. Well, I mean, that's business, right? Like, you know, that. You gotta remember because you could be there again tomorrow. Absolutely There's no you can't forget where you came from man. Well, I mean that's business right like, you know That's why I said to you. I'm not gonna declare that success title because man, it's ruthless Oh, it is you screw up man. It's you're back there again. And there's yeah It's the only world you could be really rich and really broke the next day hundred percent I went from yeah, similar to you millionaire on paper and then lost it all. Yeah, then just control alt F5. Yeah

Refresh that shit and go again classic. Yeah when it happened the first time I was like, alright, I'm young this won't happen again Yeah, second time I was like damn well now you build it because you know it can yeah I mean the way I built my company now There's nine different sub companies So we have the the construction company which operates the construction company real estate company operates as real estate company Each company has got its own GM and that company's GM is is bound by Profit outside of the R2B client base got it. So that means at the end of the the financial year for us Which is June 30

We take the balance sheet we take the profits and profit and loss statements, and we go, okay, get rid of every R2B client from there. Are you still successful? Are you still profitable, right? And that's what you're measured on. Because if something happens, these are your influences, right? You've got your regulation issues,

you've got your media issues, you've got anything that can really happen to Headco, I still want to be able to survive with a law firm, construction company, real estate company, no arts or the jazz, right? Because now when you build it with a bit more of a mature mindset, it's like, not can it go wrong, when can it go wrong, when will it go wrong? And you have to build that mindset now because I can't restart again. You know, I've got kids at school and missus. and will it go wrong? And you have to build that mindset now because I can't restart again.

I've got kids at school and missus, but not just that, man. All my staff are shareholders. A large portion of them are. All my key guys are in it with me. And you have the responsibility of all your staff who have to feed their children, and you have all your clients who now back you. So you have to take that responsibility seriously

because you know it's one bad decision from you that topples everything's over so you have to have a bit more of a risk-averse mindset now that it's built. 100%. Peter, it's been fun. We'll link all your companies below and everything. Where can people find you? Perfectly appreciate it, mate. So the big thing here in the States is GiveKindly, of course. I don't think there's too much you can do without 2B Group. So we're available on the Apple Play Store and the Apple Store and the Play Store.

There's an app called on the GiveKindly side. And there's also GiveKindly.com, G-I-V-E-K-I-N-D-L-Y.com. So yeah, if you guys can show us some love there, get us some support, get some traction going for us. If you get proof of concept with this MVP guys, you know, I'd sincerely appreciate it. Let's do it. I'll chip in on that.

So I'll buy something tonight. Awesome, man. It's all women's clothing apparel. So I'd be a fiance. Otherwise I'd love to see what you dress in the next podcast anyway. All right guys, check them out. Thanks for watching. Thank you so much guys.

Thank you. Get ready for the next episode of the show. All right, guys, check them out. Thanks for watching. Thank you so much, for. When you play classics like MGM Grand Millions or popular games like Blackjack, Baccarat, and Roulette with our ever-growing library of digital slot games, a large selection of online table games, and signature BED MGM service, there is no better way to bring the excitement and ambience of Las Vegas home to you than with BED MGM Casino.. Download the BetMGM Casino app today. BetMGM and GameSense remind you to play responsibly. BetMGM.com for terms and conditions.

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