Financial Audit - 52 Year Old Has $0 And Is Stuck In A Pyramid Scheme

Episode Date: June 8, 2023

Check out these fun things: Patreon: ⁠https://www.patreon.com/calebhammer⁠  My socials: ⁠https://linktr.ee/calebhammer⁠  Do you want to be in a Financial Audit and you're in the Austin area? Email [e-mail] Sponsorship and business inquiries: [e-mail]  _______________________  Timestamps: 00:00 Job (what job?) and income (what income???) 04:09 Starting a new business (pyramid scheme...) 05:44 From making millions to having $0 to his name 09:18 You have NO MONEY!!!! 14:12 Dying with $0 17:00 losing a ton of money on a job 19:26 WAIT, NEGATIVE MONEY?! 23:55 Collections and terrible credit score 30:27 Pyramid scheme p.2 35:00 Being evicted from their house 38:18 Hidden debts... 39:09 Pyramid scheme p.3 43:57 Are you going to survive?! 47:35 I'm terrified for your future... 51:33 Hammer Financial Score --- Support this podcast: https://podcasters.spotify.com/pod/show/calebhammer/support Learn more about your ad choices. Visit podcastchoices.com/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

My name is David Henson. I'm from Austin, Texas, Lakeway area. I'm 52 years old, and this is financial audit. What do you do for a living? I've been in construction most of my life, but I call myself an entrepreneur. Okay. I have a construction company that I started in 2009, and prior to that, I had executive positions in two different corporations that were in construction as well.

Oh, wow. basically started when I was going to college I learned how to build some stuff and I could make really good money so I started just making the money instead of spending my wheels going to college is what I thought at the time

So what do you bring in the year right now? On a good year, my company does you know a million and a half You know since I've been here in Austin Things have been different I came here in parallel up my company With another company And so during that period

We were doing you know 4.50 to 6 and basically not collecting a lot of profit. It was kind of a give and take type of situation. So my company wasn't maximizing itself at the time, but we were pretty busy.

And what does this company do exactly? Well, my construction company is basically a construction service company. I frame her by forte, so framing houses was always a part of the game, but we moved into remodeling and I'm more or less a residential expert on homes. and so I do a lot of consulting work with builders and architects around town.

And by the way, if you want to help construct this company, I'm really trying to get to 100,000 subscribers and we're not too far away, so please consider subscribing if you end up liking this episode. How to throw that in there? I don't blame you. I would. You know, the construction company was something that kind of came on, and it's something I had to do, and it worked really good. I came here to Austin, you know, at the end of 16, the beginning of 17.

and basically had a life-changing event. What happened? My wife passed away. Wow. And it was a pretty big blow. It wasn't something that we weren't not expecting. We were necessarily surprised, although she'd been sick for 17 years. So it was something that we kind of knew was coming.

We weren't expecting it that day. So it was a leveling event, and it just kind of left me flat. I'm really sorry. Thank you. Thank you. And I'm not saying that stuff because I'm looking for sympathy. My wife was a wonderful person, and I always said that God gave her that because nobody else could take it. And she dealt with it well, and she lived a good life.

So, you know, last year, a lot of things happened. My stepson, he passed away. We had the COVID. And because of that, well, due to that, we had some things. And bottom line to us came back here in September with basically no work. here in Austin at the time for us, at least starting flat, and I'd had this machine. So starting two companies from Cold Start was quite a freaking feat. So it's left me at a point where I haven't really had an income for about four months.

Okay, wait, four months, as of like right now, four months? I would say so, September, October, November, December. So you must have money sitting somewhere to survive, right? Well, you know, I had some money and, of course, I had some credit. Yeah, that's always a good time. But the good thing is I didn't have a lot of credit cards and stuff. I've probably got less than $10,000 in credit card debt for sure. And the debt set stuff, we can go over that too.

I really can't wait to talk to you about it because maybe I know you can help me with it once I'm through all this. I'll probably have a heart attack first, but then then I might be able to help with it. Well, and that's the whole thing is, you know, during the time I was doing a project in Lavernia, that whole eight months, you know, it was kind of a steady pay, but it wasn't good money. And in the end, I didn't get paid what I was supposed to get paid, and it left me in a position that I went in. So savings got spent. I walked into an opportunity here with this new business because I found a great place to rent for our new business. And I couldn't pass it up. I walked in and talked to later.

I told her my story, gave her a $500 deposit. Two weeks later, I'm heartbroken and crushed us. I'm calling her to tell her that I've got to cancel it and to keep my $500 because I'm not going to be able to do it. I just don't see it. And, you know, we've got to get this business. So this business was the nutrition business? This is the new business, the ultimate red light business. Okay.

So this was not construction? No, no. Okay. And this business, I actually formed a corporation of February this year. Okay. Is this the one that we have here? Yes. That's, this is CTC remodeling construction.

This is construction right here. Yeah. And because literally the construction company, it kind of has a life of its own. You know what I'm saying? So I wasn't focusing energy on this. The minute I had the opportunity to move into this building, this lady basically told me I could move in, just pay her when I had made some money.

So to me, that's an open door. Okay. What was the rent? $25, $200 a month with a $2,500 deposit. And I think plus the electric bill is $150 a month or something like that. So, you know, yes, it was an investment. Yes. Was it risky?

I had to go for it because I wasn't going to get that opportunity to be right there. Definitely risky. Where my plan was with my construction company to make it happen, right? Because I wanted this future for myself. So I need to loop back to today. So just I want to create some kind of financial picture before we go in and look at some of the documents. So we went from a business bringing in $1.5 million to like around $600,000, but now four months of no income. So I'm just,

so, you know, with CTC, with CTC, you know, the company started in 2009. And I came right out of the gate swinging. And we did really well. We were doing, you know, $750. I mean, we were rocking. And for most of the time,

I mean, the company basically did what it was supposed to do. And I was kind of traveling around the country, racing motocross with my son. So kind of haphazily. When did it start going down? When did it end? Because you're not doing our country. right now, correct? No, I mean, I am actually. I actually just signed a contract this week and we're doing,

and I do consulting work, you know, for different people and it doesn't pay like normally, you know, I would go, let's say, if I had a larger model project, you have to pay $260,000, you know, I would get an additional deposit for 30% down, you know what I'm saying, draws upon them. So this is revolving money in the business accounts. So of course, there's money in there for all things that are needed, you know what I'm saying? Some materials, labor, infrastructure, phone bills. Why did it decrease from 1.5 million years to where we are today? Frankly, because my wife passing away was a huge factor. Okay, there we go. The last year before she passed away, excuse me, it was just a very tough time the last two or three years

right there. We had worked so hard on something and, you know, I risked a lot to do that because the situation that she was in, my wife had muster discipline. She was full time in a power wheelchair. So our lives were not what most people would consider normal. So what I did was I made our abnormal normal and we acted as if a lot of things that most people would worry about, we would just not worry about. You know, so if we had an opportunity to go to a national and I didn't have the cash at the time, but the mortgage money was sitting there, we went to the national. The mortgage money. Taking money from the, okay. Right. But you know, here's the thing. A mortgage payment can be made up. That national is never coming again. The most valuable thing that we have, and I know that

we're going to clash on this, Caleb, because I know how you, I could see your wheels are turning. And that's the thing is I'm a risk taker, all right? And I see value in things greater than money, and I believe that the most valuable thing that we own and we give it away for free every day or at a cheap rate is our time. Time is the only thing that you're ever going to have in this life. that you cannot get back. Money, you can lose it. You can get it back. Love, you can lose it.

You can get back a child. You can lose them. You can make another one. Your time, once it's gone, it is gone. No, I mean, I do vibe with that because that is correct. This channel is finance-based, so a lot of people think, you know, money over everything when it comes to what I think. No, I think that's 100% correct.

Like, time is something you can't get back. I just believe also in a balance. Right. Making sure that the finance is a place. I'm not telling you that this is the way to do things for sure, bro. You know. But given my circumstances at the time, you know, knowing how I made money. See, most people, they can't even handle running a business because they need structure.

They need to know that that paycheck's coming in every Friday or the 15th and the first of every month. They need that. And that's how they balance. And there's a lot of value. You can make less money and be more effective by having that consistency, right? Because you know what's coming in so you can have that balance. But you're never going to get a $250,000 paycheck that way. Let me get an understanding of your wealth then real quick.

What is in your checking account right now? Your personal checking account. Penny's. Okay. What is in your savings? Personal savings. I mean, there's no cash. What are in the stock market?

I had some crypto and I may have some stocks that I haven't looked at in a long time. How much do you think? I don't know. The crypto's probably a couple hundred bucks maybe and it was more than that, man. I sold a bunch of light coin at 80 bucks before it went to like 400 or whatever. But the thing was, I played it right. I went by the 30% rule. I sold it at a 30% gain.

Can't lose, right? Well, at least you made money. Yeah, you know, yeah, it is what it is. Well, okay, so how much equity do you have in properties? You know, nothing. Oh, that's the one thing I was hoping for. I was hoping for. I walked away from my house when my wife passed away.

You know, one of the things was, is the crazier things, got for us, you know, and you call it reckless. You know, I did what I did to make the things that were bad happening around us in our world stay at bay because, you know, you know, there was times when we had money and we would go do things. But once I committed to something, you know, with my son's motocross, I literally went out about that as if it was a career, a job, and we were a professional team. So I was- And does he make money off of that right now? Yes, he can. He's not like one of the guys going to the big Supercross on TV. Well, I was just curious if the investment paid off in terms of return.

The investment paid off in a lot of ways. It hasn't paid off in the money. He does go make money. He can go out every weekend and make money racing. But the problem is it's a very expensive sport. So unless you have sponsors that are paying for everything and let you keep your winnings, you really have a hard time because whatever you make racing, you basically put back in for next week in a racing if not and that's if you win or don't get hurt or you don't break something it was it was one of those things that i did because it separated him from everybody else in the world you know so at the peak of making 1.5 million of the business how much would then come into

your hands from that 1.5 that would be a gross you know so that was you know everybody's payroll and everything you know i would do 400 probably that's so incredible what scares me is we're at 57 we were having 400,000 dollars a year pre-taxas. But there's zero right now. I'm just, I'm a little nervous because construction, very manual. And I was spending it. I mean, I'm telling you, I was spending it,

buddy. And that's what it came down to. I was like, you know, we were investing in in motocross, motorcycles, tires, trips. And I was trying to build a career for him. And there's more to it. It hasn't paid off, but it's not done either because there's another leg to this whole thing that I've been, there's a master plan, right? And it's crazy, right?

but it's something I've been working on for a long time. Do you want to tell us? I mean, well, yeah, I mean, you know, moving myself from being just a worker, right, which I'm really good at, you know what I'm saying? But to being, you know, bigger than that. You know what I'm saying? And in several different ways, I've reached out to it in a whole bunch of different ways. Motto was one of the biggest ways.

We went from being a beginner to somebody that is feared and respected. He went to Loretta Lenton, which is a huge feat. It's probably the hardest thing we could ever endeavor to do. She guys didn't make money from the return, though. The return would be clear. Well, yeah. It was more time and experience. It would make money and it will because this whole business ties into that, right?

Because one of the other legs. The health and nutrition one? Yeah, because, you know, it treats injuries at the cellular level. And it also improves recovery time by 70% with a pre-treatment, pre-workout treatment. You'll be back on the bike seven. percent faster. If you work out, if you build muscle, you know, your bodybuilder, you'll be back in the gym 70% faster. I want to get this thing right now, right?

Because this has to take care of me and my wife. The nutrition thing? Yes. Okay. Yes. I want to make sure, yeah, that I'm putting names to what we're talking about because you've definitely been in a lot of different ventures. So, okay.

A couple things that are like, I love that you're a hard worker. I love that you're supporting your son. And you talked about being really good at working. I think a muscle that we need to build is being really good with money as well. I agree. $0 to your name at 57 scares me. 52. 52.

Oh, I wrote 57. I'm sorry. It's all right. I probably forgot that little final leg. I don't put five on me yet, man. Well, no, that actually does make a difference because, okay. Well, I was thinking like up for 50s, like, okay. I mean, I'm not trying to think of how to say this.

What if things do start hurting in the 60s? Because construction's so manual, and that's like you're easy, you know, if you need to go get money, you know how to do that. What are you going to do with zero dollars and then your known income source that you can take advantage of us is possible for you. There's not going to be a lot that you're going to be able to do with no dollars for sure. And I've, this is one of the reasons that I've been working as hard as I am right now because you know after 35 years of construction my body you know they say you're as good ones as you ever was I'm better than I've ever been good once right and I don't need the third or fourth time because that one time it's going to take care of it right yeah but I can't you know my body's changed

there's injuries and stuff that comes with time you know so I can't go out there and beat things together with a hammer no more and when you're framing houses which is one thing that I'm really really good at and I'm really really good at math and the mathematics of it and I do a lot of most math in my head and that's something I can do but there's going to be days that I'm the only person standing on that slab and there's a pile of lumber over that it's 15 foot high by 40 foot long and it has to go over here and I can't do it I mean and I'm not going to so okay so what's the plan then if we can't do that and luckily there is more time now because 52 but if something bad were to happen an injury of some kind?

What do we do? Because I don't want you to be homeless. Do you have, you had a home, you sold the home, do you have ownership in any property right now? Not that's not that I know of that I would have a deed to that's in my name.

Okay. What's your living situation right now? We're holding out in our house. I filed an appeal on the eviction. we are I mean we are renting electricity from our neighbor which is very nice that's another thing that happened

that was so stupid you know last year I got a bill in January for $2,200 for our electric bill okay and there's a lot of things that happened that kind of led to the situation but I call them up I'm like

how can I have a $2,200 electric bill did you guys sign up for the energy rates plan though where it's like supply and demand for the energy rates? They said, so you haven't made a payment since February of last year. And I said horse hockey. I said it's on auto pay. Never heard of horse hockey before. That's a new one for me.

I'm trying to be nice. And one time that sucks. That absolutely sucks. And yes, you're right to fight it. But that should not have even been. And it was part of that equation. That shouldn't have been something that made or break you though,

because you should have had. I should have had the money right now. Well, established emergency fund at the very least. Well, I made a mistake, I guess, doing this project for my friend who passed away. And the fact that I let my friendship get involved. And so normally I would never do anything without my contract is pretty solid in my construction company. And, you know, we're remodeling a trailer, you know, during the COVID. I can't get anybody to go to Lavernia to work on a trailer.

You know, so I wind up. He's a $100,000 remodel of a trailer. Dude, it was, I would have charged her $450,000. For a trailer? First of all, she had a $70,000 or $80,000 water remediation claim, which involved removing insulation, two feet of sheetrock up, repairs, and all that stuff, flooring, you know, all that. I would just walk away because that doesn't make sense to put it into a trailer.

A brand of Sheridan was about $280, $290,000. By the time you finance it. They go down on value typically, though. I told her, I gave her options, you know. but we went through and we replaced every window. We replaced every interior door. We placed 100% of the flooring. We gave her a bathroom model because my friend who was sick in a wheelchair

was going to have to move into this bathroom. So we 88ed the bathroom for him. We completely remodeled it. And so, yeah, you know, back in 2000, we estimated remodel jobs in an average of about $150 a square foot down in the San Antonio area. All right? Homes were selling for anywhere from 105 to 120.

$26 a foot for a normal house. Okay, so a remodel has to cost more right out of the gate. So if I'm going to go bid a job and look at it at a model, I think, okay, well, we're going to start with $150 a foot, all right? That was in 2000. What is it in 2022? It's $250 to $300 a square foot. Okay. All right.

So we're looking at $450,000. Have you ever had an emergency fund, a business emergency fund? I've had, yeah, yeah. What happened? Why did that just stop? I mean, this year, basically everything has been about getting this into the position to start this company. How much did this machine cost for this company? It's $40,000 machine.

Okay. So, again, that shouldn't be. That's 10% of what you would bring in out of a year. I mean, so that shouldn't be. And for me, the machine should make $1,500 a day. Oh, I hope so. But let's look at your business checking account right now. I'll tell you, negative $1,183.

Mm-hmm. So, we're looking at $0 across all the accounts, and then all of a sudden we have negative in here. Yeah, and we're actually negative in a couple personal accounts. Oh, okay. So, okay. I told you I'm a case, brother. I'm a case.

What are these deposits in from your share 81 transfer funds via mold? So I have several accounts, and so I would, boost cash flow to look better by moving money around. And then on top of that, this lady, she never wrote a check to my company all year long. She kept writing checks to my name. So you'd have to deposit it in then for yourself? Yeah, and move it over for my personal account. It was a pain in the ass.

And, well, it's put her in a bad position because now, you know, my company would ever receive any payment. But that's another issue. So of the third 27 that went in, a lot of those. just from you, if not all of it. And then you were taking out like $1,000, $2,000, $3,000, just money just being transferred back and forth. But we're ending with negative $1,183,

of which $102 for this period were overdraft fees. 204-year-to-date overdraft fees. Yeah, I know. That was a big thing. So we're just losing money. And they actually refunded a punch of them into this account. And it helped me correct it back to the 11. or whatever it was upside down.

I'm not sure which month you're looking at, but. October to November, it looks like. Yeah, that's, and then they, so it was like $20, it was like over $2,000 upside down, and they refunded all kinds of fees and all kinds of stuff to me. And a lot of it is, I mean, it's frivolous stupid spending, you know.

Well, like on what? Because it was kind of hard to tell where I was when it was, well, this whole year basically was funding us being down, out of town, you know, living in a hotel room and working on this other project. And that's where most of our money went this year. How long did you live in a hotel? Oh, shoot. I had, well, I had, I think I had like 50, 60,000 bonvoy points. It was like 40 days or something like that. Okay. And, you know, being out of town, fuel back and forth, whatnot. Um, you know, you know, being out of town fuel back and forth

whatnot. You know, it's just expenses, man. And, you know, I've got an old lady. She doesn't work, really, you know. And so, you know, last year, you know, her son was sick and she was in San Antonio. I couldn't be there. I had to fund a lot of that, you know,

just fuel back and forth where she's staying, what's food, what not, you know. And then she came back. She had to finish up school which she started. So, you know, she hasn't really brought in an income on her own in several years. And so I'm paying for all of that, too. And I don't know if you know anything about, you know, having, you know, a wife all the time,

but they need their hair done and their nails and their eyelashes and stuff like that. And, you know, believe it or not, I consider that stuff to be frivolous expenses. Yeah, so it's frivolous. They're going to, all right. But I'm here to tell you what. If you live with a woman, you need her to have that shit because otherwise she's a raging maniac and you might as well not live with it. So it's a choice about, you know, one poison over another and finding ways to educate her on the way to make it more cost-effective.

That's about being on the same page for goals. You know, the thing is, is when she came here, you know, she had a certain idea about the way things were, and I made, you know, I have the ability to joke, man, I work magic, you know what I'm saying? I can just kind of like, most of the time, kind of like, just kind of make stuff happen, you know? You know, whatever.

Well, because you're going to death. Well, yeah, you know, I mean, I could sit around, well, I always bright, I could sit around and do nothing. I mean, come up with $1,500 a week. you know saying just by who I know what I'm doing you know connections that I've made over the years and whatnot you know a little job here a little job there but that's not going to pay for anything today you know when I was in credit karma on your phone I do I do and I have a what's the other one experience I was using can you open credit karma for me it will not be on screen but I'll take a look

starting over you know and you know walked away from my house walked away from all of stuff, walked away from this, dad, all kinds of stuff, you know. Oh, okay. I mean, I left stuff in the house, bro. I just couldn't deal with it, you know. After she passed away and I was in there in the house, I couldn't do anything. I just couldn't, I couldn't package anything. I couldn't grab anything.

I couldn't. That's fair. And, you know, I grabbed what I could and I left. And, you know, I was in more or less the same equity position I was in when I moved into the place. It was up for foreclosure. I was going, I was in the process of filing a bankruptcy at the time to save the house. And when she passed away, I thought to myself, well, it's going to cost me $4,000 a month just to keep the house and no other expenses alone.

Do I really want to do that? And I chose to igsnay the freaking the bankruptcy and walk away from the house because I didn't really have any equity in the house. Now, if I had held onto the house. Because you kept taking liens against it. Well, we kept remortgaging it. Yeah. Well, but you know, the thing was, three of those remortgages were, like, the government programs, one of them went down to like 1.7% interest.

And my wife, what she would do is every time that we would get into a jam, she'd push it to the point, and then she would refinance the house. Oh. Yeah. Well, I mean, we're working for, we're working with a different set of rules. I'm looking, you know, I have a wife that's probably not going to live another 50 years, you know. And, you know, we're in trying to, man, you know, you don't have tomorrow. And I know where you're going, right? yesterday is gone. You're not going to get it back.

Tomorrow you don't have that either. It's not promised. All you have is right now. And so the right now that I had for those 17 years was different than anybody else's. And it probably left me in a position overall that I probably wouldn't have been in with different circumstances. Let's think about right now. Where are we at today? Four 14 credit score. I know. I had it at 650 or 670 just last year. Which is average. Yeah, at best.

But I could get money. This is. You get money at $6.70, you know. Oh, yeah. So payment history, 95%. So we're missing payments on something. You missed a payment from Lendmark financial services, and it's currently late. Yes.

Uh-oh. And then we have three missed credit card payments there. Two missed credit card payments there and two missed credit card payments on Capital One. Mm-hmm. When those cards, and see, that's just happened because all those credit cards, I used them, like, I would use them, pay them up. Use them, pay them off. But then, you know, coming back here in September, with a, you know, dead stop and no income, those bills,

they gradually fell off as the money now. And then you don't really have the highest caps on these cards, $300 for Capital One. Right. But your utilization is 141%. And then another Capital One, 500, utilization of 118%. And then Credit One bank cap of $9.50, but 110 utilization on that.

And then 62% on the $650. I would use those cards to. because I have a diesel truck. It costs about, you know, $150 to $200 to fill it up depending on what fuel is. So, you know, those cars, I would use them until they were maxed. And as soon as they were maxed, I would send them the money. You always want the best for your family.

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your family less when they can have the best. Add Egglands Best Superior Nutrition to your next grocery list. Better taste, better nutrition, better eggs. And then usually with Credit One and with Capital One, they give you an automatic reboot, like three to five times a month, right? I think one of them's three, the other one's five times. So I would literally get an instant, the $500 instantly back on. But it was constantly, you know, showing, you know, Mac,

out, which doesn't look good for the overall credit. And then something about paying this other, I don't know. Like I said, man, I don't know if I want you to have credit because I don't know if I want you to have debt over again because we also have $1,163 in Sunrise collections and $2,88 in national credit system. I mean, what's very clear is that credit is not for you. It just doesn't work for you. And you don't use it well.

I mean, you're not paying your things and we have 20 accounts open. So, yep, and they're all late. It's one of those things where it hasn't really been my job, you know. And so now I'm failing at it, you know, so. And we have a car loan as well. Well, it's your truck loan. Yeah, well, I had repossession and another repossession. Dude.

And there's only 4% paid off. When did you get this truck? Which one? Your $10,000 loan. Oh, you're talking about the Dodge? Is it? It doesn't tell me what it is. Yeah, well, yeah.

I mean, I had to refinance it to stay in it. And then that was about the September time. Yeah, and I see it closed off that other loan when you did that. Yeah. So I mean... What's the interest rate on this? It's probably high, probably 13 to 20 or something like that. Oh, buddy.

Okay. But, you know, again, here's, you know, in my experience, you know, I'm one big job away from being, you know, back to even. You know what I'm saying? I don't know, though, because I... This is where I'm going to be a little. hard on you, but I don't know, though, because you've been one big job away from being even forever, but right now we're negative.

It's just constantly, it's debt and then cover it with the job, and then death, and cover it with the job. What there is not is anything getting you over the hump of being able to survive long term. I am so nervous for what happens 10 years from now at 62. Social Security is not going to be enough in this area, especially. I mean, that's going to be terrible, and then there's all these deaths and collections, and things you're missing and then the car

are the terrible interest oh so 2,455 in credit cards that's actually not crazy but the utilizations are insane 4,051 in collections that's not great and then 9,993 in auto loans

from that 15 to 20% interest and basically a 400 credit score that's about 30,000 on the surface this company and you weren't because you didn't have any money, you weren't able to open the store. You had to get your deposit back or whatever.

No, no, no. This is what I'm saying is she let me move in and we opened the store. So I've done all the remodeling. Okay. I mean, the store's built. So where are we at today besides that? We're working on getting customers in the door, one of the type of things. It's Christmas time.

We started this thing and then word of mouth, not having money for marketing. You know what I'm saying? Have you made any sales? We've made a few sales, but not enough to count for anything. Like I had a friend of ours came in and she did 15. treatments, that money was absorbed. You know what I'm saying? So, um, so, so what's your business strategy surrounding this? If you could go into that a bit, because this is a very different world than construction. It is a very different world of construction. I've been, you know, studying this for a good

while. And my wife, you know, we basically have a health, it's not beauty and wellness. My wife is a licensed esthetician. So we have several thousand dollars worth of obstetian's equipment in there ready to do facials and waxing and whatnot. We're missing a few things. We've got to get customers in there, okay? The red light machine itself, basically, if I can show people what it is, they will come and, you know,

I sign, you know, so for, you know, it's basically, if you broke it all apart, it's about $175 to $200 per treatment, but we offer packages that reduce that cost. So, you know, I come in, and if I could sell four packages a day, you know, how long does it take me to, you know,

to balance that company. We have the ifs we sell. Can you tell me about your customer acquisition strategy? That's where we've been having a problem because first I was told one thing and this is one thing I learned in motocross because I kept trying to figure out what the rules were and people would tell me this guy. This official would tell me this and this parent would tell me that. And I got to the point.

I was like, you know what? Screw this. I went and got the AMA real book. I read it front of back. So I knew exactly what they were saying. And if I have any questions, I have a top AMA official that was a full. friend of mine, I would call him with a direct question about the exact statement that it said and how it directly affected us and I would get the answer. So learning that, you know,

I've done a lot of research about this company. We went in with the Facebook and the Facebook has completely changed. This whole new meta thing basically was changing and it'd come to prediction about the time we're starting this. A completely unfamiliar platform that doesn't work for anything we're doing. Everything we're doing is not working. We put a bunch of money into it, probably $1,400 into getting the marketing, getting the ads pages set up and getting all this and paying for ads that we're getting rejected, for boost posts that don't do no good,

and just completely... Why were they rejected? Racial things is what they would say, but you can't say anti-aging. I can't say weight loss. So they're trying to prevent, like, non-scientific medical... Pronouns have to be right, okay? And they are not...

not joking. I've got to say stuff like, I can't say like wrinkle removal. I've got to be like, is the treatments that you're using not working for you? Try us at ultimate red light. Well, are they trying to just prevent like false medical? Well, false medical stuff. Like usually when to talk about the aging and stuff like that. We get into a lot of worlds of false promises. They have a lot. I mean, they're parameters of why they're trying to do whatever they're doing, you know, I mean, I get it because now if you just have your Facebook page, you can go put whatever you want on your Facebook page, right? Now, if you put something on there that's a fences, they might flag you and put you in jail for a couple

days, right? Now, if you're going to pay them to run an ad like a commercial on Facebook, your rules are different. So that's, to me, that would be a vital thing to drive business to us right away. What about handing out coupons to it in front of gyms and stuff like that? You know, that's a great idea. Going out and putting out flyers on cars at H.E.B. and whatnot. It's aggressive. It's organic. It's a low percentage return. And a lot cheaper, though. For a company that doesn't have money. I'm into roof and sales, and I've been doing roof and sales for a long time. So that means I would go to a neighborhood with a thousand homes in it and knock every door. Walk the whole street up and down, park my car at the other one, and walk the whole neighborhood

every door. We call it getting our teeth kicked in because people are like, yeah. They're not happy to see you. Does this business have debt that is not seen on your credit? Ultimate Red Light is death free. Good. Do you think she's a virgin? She's a virgin still, yeah.

Do you think that it made, do you think it was a bad business decision to open a business when there was no money to open the business? Most people would say yes. Do I think it was? No, because my dad said, he goes, son, don't you think this is a bad time to open a business everything's going on right now it's like you know is there a good time dad you know which time is good when you have the money to at least support it for a year think ideally you know those companies don't make a profit within the first year no a lot of physical businesses you know

I was able to I don't I don't fold myself like that you know what I'm saying I believe I believe but you say you're facing an eviction right now you obviously need some kind of money to come in why are you being evicted um because we haven't paid our rent okay for how long that's big since September Justifiable reason to not pay rent or justifiable reason to evict someone. Right. Well, you know, my landlord came to me and raised my rent $650 a month. Two weeks after he saw, I bought this $40,000 machine, I'd ask him, I said, you know, do you have any buildings around here that I could rent to start this business?

So he drove me around, took me to a real scummy place. I said, bro, I can't bring ladies from Lakeway into a place like this. And three weeks later, you know, he raises my rent $650. And I just bought this machine for $40,000, costing me an extra $1,500. a month. I'm getting hit with an electric bill that's outrageous and retarded. And so a lot of things were going on at the same time, plus my, just a lot of dramatic things in my life. Well, that's why it was bad to take out mortgages on multiple mortgages on your home earlier and making sure that you just kept that single mortgage on a home. You own the home. Rent would

not go up because the mortgages, what the mortgage is. I would just writ the house out. And believe me, that would be, well, not even that, but you wouldn't have to worry about this. But it is the landlord, especially in Texas. I mean, agree with it or disagree with it when it comes the morals, blah, blah, blah, doesn't matter. Legally, he can do what he did. That's fine. But now it's your responsibility and you're being evicted. And then you're starting a business with no money and you can't pay your rent.

What are you going to do when you are inevitably evicted? Where do you live? Okay. So, you know, I guess I have a couple of, you know, things that I've got to get over in the fact that these choices are just not going to be made. Because in order to rent a place inside of Austin, unless you're going to share an apartment with somebody, you're looking at least $2,000 a month. That's not true.

There's places. In Austin? There's places by like, okay, sorry, this is going to be very location-based for many people who don't live Austin, but near out that area, four points. I know someone who had an apartment, a one-bedroom apartment out there, one-bedroom, you know, not great, but it was a nice little place. It was like $900 a month. That's not bad. No, it's not. So you do not need a minimum of $2,000.

My question then, it would be where do I park my 38-foot of a motor home and my 30-foot show-haller, my flat-bed trailer, my two-job trailers, all of my tools, all of that stuff is going to add up to, you know, another, you know, quite a bit. Storage units are expensive. Well, my answer would be an answer you wouldn't like, but it's showing that clearly you just can't have it and would need to sell it. Right. And so that's what I've been doing, basically. I've been clearing out a lot of stuff that's been, because it's too much baggage to carry around. You know, I don't plan on continuing, you know, I don't need five nail guns.

I don't need four compressors. I don't need that stuff. So I've been pushing that money back into the business. And again, like I said, you know, it's a foolish plan. But, you know, my thinking is this, it's either going to work or it's not. And it really doesn't matter because I'm in a situation. Well, we're going to. I'm not going to die tomorrow.

I'm not going to get off that easy, I don't think. But, and again, that's just, you know, hypothetical. But I know what I'm capable of kind of thing. And if I have to jump through who. hoops on fire, I jumped through hoops on fire. And I get it. Right now, it makes about as much sense as, you know. But you have 30 to 40,000 dollars are really bad debt to pay off. And there's more than that. What's more? I've got some legal issues. And, uh, well, you don't have to go into those, but can you tell us the number?

Oh, that's probably 20. Okay. So we have like, we have a lot is what we have. Oh, yeah, yeah. And we have some ACHs and some other stuff like that as well that we're taking out last year. Why can't you just focus again on this construction thing that was bringing in 1.5? I mean, I could. Why don't you? Because I don't want to. Because you don't want to. This business here, this ultimate red light, it's not just the shop there.

This is just the breaking of the ice, the tip of the iceberg. One of the things I haven't told you is the wellness program is a membership that's built on a thing called dynamic compression. It's not a pyramid system, but I'm a distributor in that company. Platinum executives make $80,000 to $100,000 a month. Hearing the word platinum executive makes me very much think of the shape pyramid. Well, yeah, and it does, but it's not. Because in the pyramid system, if the person in front of you, if the person in front of you falls down, then you're dead. You've got to go re a knife.

So if I sign you up underneath me and for some reason I decide, I'm not going to do this anymore, let my membership go. You just go right to the person that was over me, right? and if you want, your business can pass my business up. If you do three times of sales, you can go from a manager to a platinum executive. Well, I'm still just a silver manager by just your own sales. So what's the, who's the person above you? What's their title? I can't remember what Lisa's title is.

She's, I know that. We'll call her boss. Yeah, I mean, Jesse Joe is our team leader. She probably, she's three years. She's $30 million. Okay. She probably has, she has you under her, right? Mm-hmm.

She probably has a couple others, right? Oh, in order to be a platinum executive, you've got hundreds. So you have people underneath, you have people underneath them. Oh, okay. So there are going to be people under you. Yes. And then for the other people under your boss. Imagine five and five and five and five and five and five and five and five.

So. And five and five and five and five and five. And then those five are going to have ten. Sometimes, you know. Hold on. Hold on. I don't lose track of me so the others have another

under them so I'm going to do a little bit of an example here I do believe that if you do oh and yeah it's a triangle but right and I get it by definition though is what I'm saying is a triangle or a pyramid strategy

do in essence if one falls down everybody below it falls down and this one it is for say a pyramid in structure but they call it dynamic What are you selling? A wellness program, which is a, it's a supplement package that's 100% USA made non-GMO. Her medical grade supplements that back known diets that make them sustainable, make them a lifestyle.

Okay. Yeah, you're an impairment scheme. It's not a scheme. Oh, no. But, okay, it's a multi-level marketing. If I could give you a system that I could guarantee you, I'll, pull 15 pounds off of you. Look, check it out.

I'll pull 15 pounds off you in eight days, all right? If I get you in a system, it's a 45-day money-back, 100% money-back guarantee. It's empty bottle, okay? That means you have to use the stuff and you have to follow the thing. If you don't have the success that you want, after 45 days, you'll get your money back 100%. And I'm so strong about it, even though I don't have any money, I'll pay you back to you. That's how much I believe in it. You wouldn't be able to.

So right now, well, if I get you to buy a system, well, I'll tell you what, if you're going to want your money back, then we're going to, you're not going to get your money back because you're not going to need it. It works, bro. It works. So what are these people under you? What are you selling to them to be under you for them to sell? So, you know, our packages, you know, they start out around $500 and they range any lower from that all to probably 150 different individual products, including the number one thermogenic fat burner on the market. Do you supply the products to them and then they have to sell the products? Or what is it?

Actually, I sell them their program. And then I become their coach in the system. And as a coach, I have resources. I'm on a team. That team has resources and people that, you know, a support group, like a Facebook page that has all the recipes you could ever think about, you know, that are going to be in line with our dieting. And a support page, a support page with women mostly,

because women are the ones that usually do these diets, right? And men don't really give it about their figure until they realize it could be easy. Right? I mean, you know what? If I could show you how it can be easy, you're going to love it. But the thing is, is these middle-aged women love to answer questions about this. So if you go on there, it's like, hey, look, I'm having trouble with this or I'm having trouble with that. You've got 10 of these girls that are your friends or guys or whoever helping you through this system, right?

So that you're not just lost with a problem or understand that there's something that you're going to have to go through because a lot of people don't understand, you know, that, hey, you're going to poop. You know, if you're 80 pounds overweight and you want to lose some weight, and when you go to lose that weight, you're going to poop a little more irregular than you did before, because it has to go somewhere. It doesn't just disappear, right? That can't be a problem for you. Some people have a problem. Well, shoot, I have a job. I can't go to the bathroom every 10 minutes. Okay, so then you need to change your structure. Every 10 minutes? Some people have different problems. Women are weird, bro. All right. Anyways, but so 52 years old, a part of an impairment scheme.

no money to retire, $50,000 to $60,000 in really bad debt. What does the next 10 years look like, please? Because I don't think I'm going to be able to convince you to do what I would do, but tell me what the next 10 years looks like for you. The thing about it is, is I can always do construction. So I can make a living doing construction, deal with my debts. There's ways to get in there. Just do it and get rid of the debts and then save up enough money for a retirement,

which I think is going to be hard with 10 years. Man, if you knew the business, you'd understand. it's it's you know no matter what job I do for anybody no matter how badass I am at some point in that job those people are gonna freaking hate me not because I'm bad at my job not because I made a mistake everyone needs contractors that's fine at the end of the day I'm in their house okay and I'm not gonna be liked again until three or four months after I'm done with that

project and those people are sitting around in their house and they're gonna go man that guy really did a good job but do you have any idea of the heartaches and headaches and bull that I had to go through to finish the project while they hated me I don't care because you have a lot of debt and no retirement. Well, I mean, it is what it is. What takes priority? What takes priority is my dreams and my future. Okay.

And so the construction is the past. It's something I've done for 35 or 4 years. For me, reality takes priority, though. We need to get rid of debts. We need to have money to be able to retire because whether we all, whether we like it or not, all of us at some point are going to be in a physical position. And it's just a random thing where we dropped that. where we can't do the work that we need to do that.

We're trained to do. And that's the main reason that I'm going into this wellness business because I need this equipment to treat myself for the injuries that I put myself through. And on top of that, I believe in this wellness package that we sell that, you know, you refer to as a pyramid scheme. It's not really a scheme. And I want to show it to you. And you can take a look at it.

You know, it's like saying, well, I mean, I guess a K-car represents every car in the world. It doesn't. K-car was the biggest mistake that, freaking Dodge ever made, Plymouth. But, you know, Leah Ica, he was a great guy, right? He was really smart. Anyways. I want you to have a conversation with Mark Cuban.

Oh, I'd love to. He wouldn't have things to say. Either way, I have a hard time. If I ever hear anything medical, especially diet related, is 100% guaranteed. That means I immediately don't believe it. And see, I don't believe 100% guarantees the proper word. It's a money back. So if it doesn't work for you, then you're going to get your money back.

I'm not guaranteeing you that it's going to work. I'm just guaranteeing you that if it doesn't, work my company and I feel so strongly about it that there's something else that we overlooked for you that we need to go back and pay attention to and it's worth it for us to give you that system to keep good graces with you so that we give us a chance to look at it because there's a couple things that can affect weight loss other than just having the proper diet if you have a bad if you have a thyroid problem it doesn't matter what you do with your diet it has nothing to do with that you are not going to lose weight until you get your thyroid adjusted period i have a thyroid

problem that's what's wrong with me well i mean not pan to express thyroid Well, most people have a Panda Express problem. I have a Panda Express problem. But if we missed this with you, right? We're going to take care of you because we don't want you to have success. We're building you up for success. We don't believe in failure. It's just either a missed opportunity or something we didn't take it into account,

but we're going to hit the mark as long as we keep firing at it. Now, it might be time to start believing in failure, though. Well, failure is something that the people that were successful in the world made up so that we could all feel like we're less worthy. you know, the Rockefeller. I don't think anyone's necessarily less worthy, but there's definitely those who make it and those who do not. And those who just stay sagging it, which is fine as well.

So, okay, here's the thing. I mean, I'm going to wrap it up because there's, I mean, there's anything I would say, I mean, that's not going to be done. That's very clear. But I'm going to be a little brutal here for a second. Then I'll give you the final word. Go for it. Thank you.

52. I think it's 62. You might still be in the pyramid or not. I don't know. I think you're still going to be in debt. It's probably going to be different debt than the debt you have today. I think you'll probably be in a situation where you're in a pretty crappy apartment because you've been evicted from this place or you're just in your RV, unfortunately. And you're trying to figure out how to retire Social Security.

Medicare will start taking care of you, but it won't be enough to survive, especially in an area like this. You'll have all these different kind of debts. And I think at that point, I think this business with this customer acquisition issues and the being the fact that it's in a pyramid, I don't think it's going to work. and I think you're not going to have anything, anything, anything saved for retirement. And I think it's going to be a really bad and sad remaining decades once we're retirement. That sucks. I hate that I just said that I feel like the worst person in the world. But that is when I'm envisioning in the real world.

That is what I am envisioning. And I hope. I hope that I am the most wrong person in the world right now. I really do. But I can see nothing but that. You can have the final word. Caleb, I can't disagree with you because it's one thing that I believe in, and it's the truest thing in our world is math, right? One and one are always going to equal two.

I mean, it's never going to change. And if it does somebody's lying to you, right? And it doesn't matter how you go about the equation. If you want to go around your elbow, that's fine. You're still going to wind up at two. But I believe that application is not perfect. And I learned this through framing so many houses for so many years that the first thing that you should learn when you're going to be a couple of. carpenter at all is we're building a house that a two by four isn't two inches by four

inches just right out of the gate it's an inch and a half by three and a half inches and on top of that those two by fours can vary in size they can be three and nine sixteenth they can be three in seven sixteenth all right so in application you know the math is perfect and you're right and if the math works out perfectly to that end then there's no other way it can work out I'm counting on the things that I've learned in the in the variances and the tolerances and the tolerances I've learned that knowing your tolerance is key to success because if you operate inside the parameters that the government and life tells you that you should,

you're not going to be successful. You're just going to be a slave. You know, what I do like, though, is I appreciate your honesty with me, and I appreciate your candor, and I appreciate your concern. Because it does concern me, I don't write this off, right? And, you know, I would appreciate your help and your guidance, because it seems like you got your eyes on, on some things that, you know, that make perfect sense.

And like I said, I believe in math. You know, I've made my career out of math. You can't build a house without knowing how to figure out the hypotenuse of the right angle, right? Most people just struggle with the decimal for the conversion to fractions, right? I don't know why. It's so difficult to break a dollar down, but some people struggle with it. You know, I'd love to continue talking to you about this more. I know you've got a certain amount of time, so, you know, I guess we'll let that go.

maybe we can come back again, talk to you or whatever, and I'd appreciate any guidance and advice in this new business because it's very important that it works. And I'd really like to show you our pyramid scheme a little better so that we can understand it better. And maybe you can see and maybe find some of the success that I found in it. I may not be financially successful, brother, but I'm successful in a lot of other ways. And rich, it's just a state of mind. It's something that's in your heart. Wealth, most people will never see it. Wealth means your uncle's super rich, you know. everything is temporary, my friend.

So thank you, Caleb. Rock and roll, huh? Beautiful, thank you. Thank you, sir. Great conversation. All right, well, as much as I like the dude, I'm sorry, that has to be the worst financial situation we've reviewed on this entire channel,

mostly because of the age. A lot of people have been in more dire situations with debt and no retirement and stuff like that, but they were younger. They're in like the mid-20s, maybe early 30s, many decades' life to rebound take care of those situations. There's like a decade left for this.

Maybe two decades if he's very healthy when it comes to, you know, working and saving up to get rid of situations and saving up for retirement. So I'm not saying like he wouldn't be with us in a decade or two decades, but, you know, just years to work very well. This has to be with a hammer financial score with the pyramid and the debts and the collections and the everything and the no money and negative, negative in all accounts. Hammer financial score I want to say

Actually no You know what Because it was negative Is negatives in his account Hammer financial score Negative 1 Never done that Probably will never do that again

But this was so unique Negative 1 Hammer financial score And no that negative 1 is not good That is bad Check out all the fun links In the description below Make sure to follow the socials

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