The Money Mondays - Walter O'Brien & Kent Clothier on ChatGPT, Investing & Real Estate | E5

Episode Date: March 20, 2023

Walter O'Brien on ChatGPT, AI, Psy-Ops & Money & Kent Clothier on Real Estate, Investing & Generational Wealth Walter O'Brien (aka "Scorpion") is the founder of https://scorpioncomputerservices.com, a global think tank for hire that provides “intelligence on demand” as a concierge service for “ANY funded need”. Walter was the Executive Producer of the hit CBS-TV drama "Scorpion" based on his life, the show airs in 188 countries to up to a billion viewers a week.  Walter who was diagnosed as a high IQ child prodigy was certified by U.S. Department of Homeland Security as being of National Interest to the US and granted him an Extraordinary Abilities Visa EB1-1. Walter has mitigated risk for 7 years on $1.9 trillion of investments and has invented and applied Artificial Intelligence engines to protect US war fighters in Afghanistan. Walter has created over 177 unique technology inventions, is an Irish national coding champion and competed in the Olympics in informatics. Walter is the youngest recipient of Unite4:Good's Celebrity ICON Humanitarian Lifetime Achievement Award and has provided the seed funding for TaxiWatch, a suicide prevention program that has saved over 1,000 lives to date. Walter OBrien is one of the smartest people you'll ever meet for advice on tech, AI, business, money, investing and data strategy. In this interview, he breaks down the math behind living a 1% lifestyle including the spectrum of EQ/IQ and how it affects your work and wealth potential. Plus, he shares his data-driven predictions for EVs, Elon Musk, Uber, automation and AI... -- Kent Clothier is President and CEO of REI Nation and Real Estate Worldwide (REWW), a multi-faceted real estate education company with headquarters in Scottsdale, Arizona. He teaches real estate investors his signature method, Reverse Wholesaling, to build generational wealth and has personally amassed over 8,000 single family homes, $100M+ in commercial real estate, and more in his real estate portfolio. In this episode, Kent shares his generational wealth building secrets and how to invest in real estate, how to start real estate arbitrage, how he built several 7- and 8-figure income streams in his lifetime, and how he balances the workload of it all so he can spend more time with his wife and children.

The top 1% of the wealthiest people in America. We all think their billionaires and trillionaires. They actually make 500k a year, 425k a year, top 1% and after taxes then that's like 200, 250k. So that means if you lay out the life you want, you want to live in this house, you want to vacation once a year, two cars, few kids go to college, each kid is a million bucks, so 250k for high school, 250k for college, that's 500k after tax, so about a million you have to earn per kid. So if you look at all that, you need to make over 250k to get that kind of life that you want to have. Well, if only one percent of people do that, that means 99% of the people around you 99% of the time are wrong about everything.

Ladies and gentlemen, welcome to the Money Mondays. This is a very, very special episode because I have a very, very dear friend here. He is one of the only humans on the planet that I actually reach out to when I have questions for advice about almost anything. When I learned about aliens, math, situations, what should I do with my life or business? I call Walter O'Brien. He has a TV show for years called Scorpion. The main character in the show was called You Guess It Walter O'Brien. He executive produced with Scooter Braun. He's done some amazing things in his life.

He hacked NASA when he was a kid. I don't want to disservice the story that he's gonna tell to give you the background on him, but please, ladies and gentlemen, give a warm round of applause. Mr. Walter O'Brien. Thanks, Dan. So Walter, on the money Mondays, we talked about three topics.

How do people make money? How do they invest money? How do they give away the charity? However, I'm gonna have some special questions for you because it's you. So if you can start off with a couple of minute bio, give people the background, then we're going to dive right into questions. Sure. Congrats on the new show.

Thank you. Background farmer's son from Ireland didn't fit in at home or at school. Didn't know why. Teachers complained to ask too many questions. Started learning the code when I was nine, self-taught, by 13 hacked into NASA, stole the spray shuttle blueprints, got busted by the NSA via Interpol, did a deal with them, started working with the government since then.

Had my IQ tested, it was 197, which would be the fifth highest in the world, Einstein was 160 for reference. So I opened the company by hiring other geniuses from the Gifted Children's Society and other groups and then thought that would be a good idea to have a company full of geniuses. Quickly learned that was a mistake.

The higher the IQ, the lower the EQ, the emotional intelligence, common sense people skills. So we went out and hired single moms, elementary school teachers and psychologists who scored higher on EQ tests and taught them how to babysit the geniuses and customers. And we call them supernatives. And that balanced out our think tank. And from that day to this, we've been for the first 20 years solving technical problems, my degrees are artificial intelligence and computer science.

And then in the last decade and a half, we've solved any problems because we found that taking a disciplined engineering scientific research approach to everything from people's divorces, to disgruntled employees, legal cases, materials research, whatever people needed by taking that structured approach to planning and figuring it out, we came up with kind of an overall master model for solving any problems. Removing assumptions from it, taking emotions out of the equation, and then having backup plans, removing single points of failure, and we can end up securing businesses and lives in much more secure ways than they used to be. What's the website name for that? ConsiergeUp.com. Got it. Okay, so before we get into the money and questions like I normally do

on this show, I got to ask you, there's something you mentioned to me a year ago that's been burned into my brain about automated vehicles. If Elon Musk or some other business owners are big car dealers, like if they actually make automated vehicles at scale, what happens to our economy? What happens to like car washes and parking lots and insurance and windshield repair and all the things that go on with cars? You said it to me and now it's just like, it's mind blowing.

So if you could explain what happens if driverless cars becomes a big thing. Right. Well, there's a bit of a ripple effect. So Our cars are parked or an unused 97% of the time Wow, which is why companies like Uber who can thrive on the inefficiencies are both the taxi market and the fact that we don't use their cars most of the time So it's very inefficient for taking up space, environment, plus parking. So then, since we have self-driving cars now, we can test like and drive from Santa Monica to New York, it just has to get more certified and approved to be allowed to do that, which

is an interesting process because people complain about the one Tesla that crashed, right? Or the two Tesla's that crashed and completely ignored humans the crash 4,400 per day. So it doesn't have to be perfect, it just has to be better than human, which I believe it is now. So imagine then if Uber owns all their own cars and their partner would Volvo, which is owned by the Chinese, to do exactly that, and those cars all drive themselves around. Well Uber has your credit card, it knows your address, it knows if two people are meeting for lunch because who's friends because they Ubered both of you to the same place at the same time regularly. So they have all your data, which means that they will become free

because if they don't have to pay a driver and the cars are electric, then in my soul just put a big screen with Netflix in the back and just advertise the hell out of their captive audience. So then if that happened and you can get everywhere for free, why would you own a car? Wow. If you're a student, why would you put 20 grand out for a car? So if the cars go away and they're all self-driving by Uber, then Uber will charge them up, maintain them, take care of them like the Metro buses. So then you don't need car washes, gas stations, windshield repair, tire centers, brake centers, pet boys. Oh my gosh. And you also don't need valleys or parking lots because you're not a park in Uber. It does just keep circling, especially with your self-driving. That affects commercial real estate because half of that of many major cities is zoned for parking, right? So that parking land, then after it crashes, the commercial real estate rarity can then

be used for cheap prefab housing and apartments because when people are doing Zoom calls and playing virtual tennis and plugged into a Oculus Rift, then they don't need a large mansion or house. And I'll go into these stats later but less people are getting married, less people are having kids, less people are interested in showing off to their neighbors, less people are interested in that classic American dream, they prefer to be nomads, own nothing and move around easily. So because of that then that crashes residential real estate. Wow. The residential real estate has lots of spaces for driveways

and garages which wouldn't be needed if you don't own a car This is gonna be my favorite episode. I can already feel it so Walter. Oh My gosh, there's another story before we go into money There's another story that you told me about where you helped a very wealthy client figure out a situation about their son Can you explain the story? Sure so you know, like most interesting companies, ours evolved by accident to where we went from solving technical problems to our hacking systems to hacking lives. And we ended up with a few wealthy clients who would ask us to help them out. And one of

them, who had helped them previously, was a billionaire in Europe whose son fell in love with a Ukrainian gold digger. And he asked us to break him up before the wedding, but not let him know he interfered, because his relationship with his son was tenuous already. So thankfully we've worked with the three-letter agencies with the government for years. We've learned a few tricks, including SIOPs, psychological operations, which other people tend to describe as the Truman show, where you put someone in a, effectively in a movie, without cameras for six months who don't know they're in a movie. So we start by our deep web and dark web research and background checks and classic private investigation. We found out that the sun loves to party. We found out where he's living, where he loves to party on sunset, where he

likes to do his bottle service, etc. where he likes to drive. So we found another billionaire sun who was a client of ours, who was an actor and was willing to play this double agent part. Fun. So he rented a mansion for him down the street. He drove the same Aston Martin. He had similar suits. He had the same bottle service booth next to the other guy. Quickly, they became best friends.

Then the girlfriend of his, she likes to work out every morning, go to a particular Starbucks afterwards. So we put another Ukrainian girl in designer jeans, two places in front of her and the line Starbucks, speaking loudly on her phone and her native language, and they didn't talk. And the next day we put her two spaces behind her in line and they didn't talk. And then we got a heads up that they'll be reigned on Friday, which is rare in LA. So we hired actors and extras to fill the Starbucks every location except for one seat next to our girl. So she Girlfriend came along and sat there. She had nowhere else to sit and our

Girl struck up a conversation with the old country talked about how naive Americans are and How easy it is to make money over here. And eventually the other girl opened up and said, yeah, she has a billionaire son on the hook. You know, get marriage, you're going to get a green card process. Then she'll divorce him as soon as possible, ask for his over and a minute money, threaten the family, and use the money to bring a real boyfriend over from the had a lot of money, we had a lot of money, we had a lot of money,

we had a lot of money, we had a lot of money, we had a lot of money, we had a lot of money, we had a lot of money, we had a lot of money, we had a lot of money, we had a lot of money,

we had a lot of money, we were doing the great or good. As soon as I knew that, then we went ahead and as they said in the office that she's now fallen on the wrong side of my fairness algorithm. So we can sit down and do planning meetings on where do we go from here. So we made out a plan and it involved a teenage psychologist writing a speech of exactly the wrong things for the father to say to the son. We then had acting coach teach the father how to escalate the argument and deliver it believably. We sent him a text signal on Thursday night, he escalated the argument. The son pissed off, grabbed his luggage and left there and went down the street to his new friends,

mentioned where he told them all about it. His friend was packing at the time for a trip and said look this is terrible You should find some way to get back at your dad I have to go to Dominican Republic tomorrow on the jet my friend is getting married But you're welcome to stay here and it took a few minutes But eventually dawned on the Sun that the plan was to grab his girlfriend Elope with them on the jet get married after the other wedding happens. And without a prenup and just to get back at his dead. So that's what they did.

And they went to the Dominican Republic. They had the first wedding, small group of 50 people. And it was very nice. And then some of the people stayed. And our guy went up, our target went up and he got married. And then we saw while on the honeymoon she's applying for I-94 and her visa status and everything else literally that night sending off the info. We tracked them over the next six months or so. And as soon as she got her initial

approvals on Visa and being able to stay, she then asked her to go to the son and threaten him with all of this stuff the son had told about the family and the father of the highly embarrassing and threatened to go to the press with that, unless she got divorced and exorberated in a settlement amount. So the son was freaked out, panicked, and knew his dad was going to kill him. So through his friend recommended this law firm, no, I'd be able to handle divorce quietly, which turned out to be our entity. And so the girlfriend shows up a little bit later for her divorce papers and I go into the room and give it to her and she's looking at the contract. She said,

this is an acting contract. And I said, I know, do you recognize the signature? She goes to the back page and turns white because the signature was the priest from the Dominican Republic. So the first wedding was fake. The people were fake. The attendees were fake. The priest was fake, which means the wedding certificate was fake, which leads me to the second envelope I gave her, which was her being banned from the US for 10 years for immigration fraud for filing a fake marriage certificate. We had the Uber waiting for her outside.

It was not self-driving. Otherwise, it could have a bug in the software. But the Winterbag's packed to take her to the airport. We had a handwriting expert, replicate her handwriting for a dear to take her to the airport. We had a handwriting expert replicate her handwriting for dear John Letter back to the sun to say he doesn't want anything from him as she's left and never contact her again, which he was very happy to not do. And he's rebonding with the father who never interfered. And we don't exist in that story.

Oh, wow. So fun. So you mentioned two words. He said, the greater good. And I noticed when I watch Scorpion I watched all four seasons and in that show Oftentimes it was always about the greater good. What does that come from? What does that mean? What is the greater good? Well, I'm a logical creature so Like most people I mean I grew up without money So I spent the first half of my life scrambling to go, okay, how do I pay the rent? And then at one point I get to a point where I'm like, okay,

I don't need to worry about that anymore. And then I'm like, well, what's life about now? And I did define what's the success meant for me. And being a logical person, I realized that the optimal, because I'm all about being optimal, a solution for me would be if I can keep my average happiness above a 7 out of 10 while doing the most good for society with the skills that I have While not hurting anyone or lying to anyone then that's probably the best mixture of a good life Um So the greater good then just became okay. Well, how do you do the most good possible? A lot of charities, if you donate to them, 60% of money disappears on admin fees.

If you try and do it directly, it's hard to know which one and how to scale. Then I started going down at Rabbit Hole. I realized that, well, if I help the people who can help the most people, so if I pick smart kids, for example, who have high IQ, but don't know they're missing EQ, or the parents literally can't afford to give me laptop or internet or a brilliant, but they can't afford to go to college, those are the people I should help. And those people can turn around and be the next Elon Musk or cure cancer or something else. So that's where I started investing in IQ. And as

same as I'd done in my own company, I treated like a precious commodity while everyone's fighting over gold and silver. I realized that while we're ridiculing and making fun of geeks, if I can grab high IQ enthusiasts to bring them all together one company, sooner later as stuff gets serious with the economy and otherwise people will need that. And yeah, so then doing a greater good is always a careful calculation from there and it's never as obvious as you think. I used to think saving lives was doing a greater good, but not necessarily if it's causing overpopulation.

Interesting. So I remember your technology actually helped with the Boston bomber case. And that's part of your saving lives. And you've done that a lot of situation you can even talk about. But that one, whether you were actually able to explain, what was the technology?

Like, what, how did the Boston Bomber situation work? So yeah, if you were asking about metrics on doing good earlier, that was what you were prompting. It was 44 kids brought home from sex trafficking over 4,000 put through college. And 29 terrorists, the tax avoided, and about half a million lives saved. and so on. I got the humanitarian lifetime achievement award, which was a nice recognition that I'd done

more good to save more people in half the age. I got it by 40. In terms of Boston bombing, so the first step in facial recognition technology is finding people's heads. So I used just that piece to look at the 4,000 hours of footage we had from the bombing, eliminate all the footage where nothing interesting was going on, because there's all different formats, time steps. And then by putting a red dot on everyone's head and doing motion flow analysis, which

tracks that red dot from frame to frame, if you're in a typical situation and a bomb goes off, everyone goes down at the same time. Everyone comes up slowly at the same time and everyone then exits whatever way they came in. So all the red dots, we kind of in a V shape out the same door. So if someone didn't go down, didn't act surprised,

started wandering slowly at a different speed in a different direction, then that's non-heard behavior. And that's how they identify the bust mommer's. Oh wow, that's really good. Okay, I can finally talk about the money. Sorry, I had to get those things out of the way from a personal perspective

and I hope you guys enjoyed some of those stories. All right, how to make money. How does either Walter O'Brien or Scorpion or Concierge up, just talk about some of the ways that were the business or executive producing when the biggest TV show ever, like how does Walter make money? just talk about some of the ways that were the business, were exactly producing when the biggest TV show's ever, like how does Walter make money? And how can some of the people out there, what are some things that you think

that they could make money doing? Well, if we start the high level principles, there's three priorities in life that are recommended to people. Priority one is don't go backwards, don't get worse. So whatever you've got, keep it protected, back up your laptop, keep your relationships, and so on, and value your friendships. Because there's no point in earning more stuff if you can lose everything you already have. So, dot in your eyes, crossing your teeth, having insurance, et cetera.

Step one, don't get worse, your health, et cetera. Step two, then, is proactively seek and motivate validated sources of wisdom. I choose my words carefully, so proactively, you've got to go off here, ask to do it. Go out and look for who knows more than you in the areas you're interested in learning in, and you've validated that they know what they're talking about and they've done better than you in that area, because they say never take advice from anyone you wouldn't swap lives with. And then motivate them to help you.

You're on the busiest guys I know, Dan, I'm pretty busy and other folks are busy. Everyone's wanting stuff from us. No one's offering stuff to us. So if someone gets off their butt and goes, okay, you have studied what you do, I know what you do for your business. I thought this connect might be useful.

And someone makes a few offers, they stand out from everybody else. And then you have a reciprocation guilt where you're like, wow, I owe that guy something, I got to think of something for that person. And then you start a quality relationship. Step three then, make money from at least three different sources of income in unrelated industries, with as much as little effort as possible, so you're preserving your time and your flexibility. And that way, when something like COVID hits, you're impacted for about 30% of your income, not 100% of your income. So if you started that high level principle, I could tell people how I make money.

I invented 177 different intellectual properties and software. I've done military fortune 1000 and high net worth individuals for years. The TV show stuff happened 34 years later, so I call it a 34 year overnight success. That was kind of at the end of it all. I went back and told the story to inspire other kids and teach other kids that being smart is cool. But that may not be your forte or your skill you're particularly good at. But it's very smart to make money, to only use your passion in one of your businesses to make money.

The other two businesses fit the mold to what I call dumb businesses. If you own, used to be, if you own a parking lot or a coin- coin operate a laundry or something like that, where you don't have to run it any person or a high school kid can run it or ideally nobody runs it, a bunch of ending machines, something like that, nothing where you have to personally be involved. You'll do almost better in those businesses because you're not emotional about your decisions in them. And then one can be your passion business that you might get lucky and make money, you might not. So one or two dumb businesses, one regular business. And then being extremely careful upfront about who you decide to get into bed with business wise, I try to avoid

partnerships at all cost. As I said to my investor trying to buy up my company at one point, I said, if I believed in partnerships, I'd be married by now. He was on his fourth divorce and smiled and thought, I had a good point. Partnerships are tough just because it's extremely rare. A marriage is extremely rare when it works out and both people are actually pulling their weight and both people actually feel like they contribute to 50-50. You know, 75% of people believe they're above average in most things and looks and their

thoughts and so on. And by definition, that's can be the case. So you put two of them together and both think that it's 75% of the work. So that's not a good recipe. So those are some of the basic principles. I mean, other things are investing. Keep in mind, the government, you have savings, but the government has debt. So it's in their interest to keep inflation going.

Try to avoid delusion. I ask people what's reality? When is something real to them? And adults are pretty shocked that they never, they can't define it. They never thought about what is, they like anything I can touch. And I'm like, to the pyramids existids exist and like you've never been to Egypt. Well, yeah, it does because everybody says so. So Santa Claus exists. Well, no, we know that's fake. So. So I go with the scientific definition again cognitive bias because I'm a scientist, but anything I can do 32 times in a row, on demand, under observation. I knock at less of water off the table, 32 times, and all the smashes on the floor,

anytime you ask me to, anywhere you ask me to, with anyone watching, and I say, that's gravity, then that's a pretty consistent demonstration, which means the odds of it not working 33 times is very low, so it's beyond reasonable doubt. So anything that meets that is real to me is concrete. I can now depend on that as part of the legal bricks of my life. Anything that doesn't meet that, but it's

you and KCS with aliens or anything else, I'm not saying it doesn't exist. I'm saying it's unreliable. And I don't want to build my life on unreliable stuff that may or may not work if I pray hard enough or lucky rabbits foot. So I try to build my life on reliable people and reliable things. And that makes me reliable when other people come to me then for help. So speaking of Casey, at our wedding,

you said that you hope that we're a mathematical anomaly. Explain why you think that weddings or marriage is a mathematical anomaly. Sure, that's a good one And it ties into something else in the investments that I should point out so I I had quick note here on this one So Across the US there's 50% divorce rate marriage now is as lowest rate in 50 six people per thousand, and two and a half of those get divorced every year. 30% of them have

no kids at all, and the 50% are singular, single all the way up to 50, 55 years old, who never get married. The marriage is last three to five years, spending which state you look at, and we're going to live to about a hundred and hundred and ten years old, depending what age someone is now, on average, because we keep extending life expectancy. In the last 50 years, we added 20 years to how long people can live. In the last 10 years, we added, I think, five years to how long we can live. Now, of course, we might reach a skip velocity where we don't have to die at all, but that's a later conversation. But when you look at that and you're like,

okay, you meet someone now, you might have to be married with them for 80 years. There's no creature on the planet that's together or monogamous for that long. People always bring up penguins as an example, but they only live 12 years. Interesting. So that's what I meant at your wedding

when I said I wish you guys be a statistical anomaly. And even so far, you have been because you're both wonderful people. But it's very rare that that works out. And that both people find their groove and don't become either too claustrophobic with each other or too distant. So on the Tim Ferriss podcast, I remember a riveting story where you talked about like taking someone's head and transferring their brain and like someone could be in China or Japan and someone's here and you could something about a meat carcass and you could just transfer

energy across like, I explain. What does that mean? Well, what is a meat carcass? Am I a meat carcass? We all are, for some extent. So, this is something a little bit further on the extreme, because if you reach a certain level of wealth, any goal you pick in life, you can just write a check on Monday, and it's done. So, you know, where's the excitement in that? And, you know, I

spoke to a therapist on this and he said, well, I'd learn to plateau and enjoy it or pick a big mountain to climb. So I decided to pick a big mountain to climb. And if I analyze my greater good strategy, which is, you know, use the gifts and skills you have to do the most good for society before you die, it would be obvious that the first thing I should do is not die, and I can do more good. So that starts going down to a philosophical rabbit hole of like, what am I? What are any of us?

Well, we're not our fingers or toes, or arms or legs. We are our memories and our consciousness. Well, what is that? It's electrical signals running on a biological computer with about 100 million neurons, and 2.5 petabytes of storage or an estimate of our memory. So we have computers now that have that much storage, and we are getting to the level of MRI scans to get to the molecular level where we could replicate a human brain and software.

As is, not AI, not code, not rewriting it, just port it over as it is. So if I could upload or backup my brain, and then we have stem cell cloning, we've had it from sheep to chimpanzees, unofficially we've done animals, or sorry unofficially humans. But let's say we stem cell clone you, and then adjust your telomere level, which

is usually used to slow down aging, but if we sped it up, we could grow you a 20-year-old twin brother in four years in embryonic state. And if we could download your brain into that person, then effectively, you're 20 again. If we do that every time we turn 30, then that's immortality. You're not going to die. And even if you get hit by a bus tomorrow, we take your backup from last night, your stem cell brother from the closet, and you lost all your losses breakfast. So now, if you take that brain file, let's say you call Hertz Rent a Body in New York, and you rent the George Clooney special, or the Angelie and Joly depending on the Moodyer

in, and email your brain file to New York, you the Angelina Jolie, depending on the mood you're in, an email your brain file to New York, you can now wake up in New York and use that meat vehicle to get around. Just like now when you fly, you rent a car, you don't bring your car with you. Your body's the car, you're the driver, or what I like to say is your body is the iPhone

and you're the software. Every couple of years, we throw away our phone and buy a new one, sink it up with the cloud, and now the phone's back. Same with us. Now, there's head transplants, phone and buy a new one, sink it up with the cloud and now the phone's back. Same with us. Now there's head transplants which are a little messy. They've been done 29 times on animals and some of those successfully.

And first human corpse, a couple of Christmases ago. And we're getting better and closer doing that. And the tricky part is just refusing the spine, but it does grow back over three nanometers of its put in traction and we have a one nanometer laser. So it's cutting it close, but it's possible. We have 10,000 volunteers waiting to do this. We have ALS, MS, HIV, and other incurable diseases, spine-abifida, etc. Why cure a disease if you can throw it away with the old body? Wow. Now, let's say we're all in a virtual world where we upload and we don't come back to

a meat vehicle, so we're kind of in a metaverse, but one that works, that's high res. Well if we all had our own version of the planet, there's lots of things we could do. If you had traumatic memories, you can delete them and edit them out. If you copy your brain file and delete your memories, is that your son? If you, if I upload you once and download you five times, 10 minutes later, which one's the real you? And if we think about all the wars and history other than the current one, they've all been religion-based. And you're less worried about God if you're not going to meet him. So fascinating. OK. So we talked a little bit about making money.

Let's talk about investing money. And the way you like to actually talk about it is more like about protecting money, right? More than investing like to protect money. Explain your thoughts about investing and protecting money. Sure. Well, for our clients, once they come to us with their initial problem, when we solve that,

we like to protect our clients, the good ones, and say, okay, well, let's do what we call spoff hunting, which is spoff is an engineering term for single point of failure. So what else? What one thing could go down? Like, we took the San Francisco Bridge and that's a one of those bolts snapped on one of those cables. And it caused a ripple effect of all the other bolts to snap and the whole bridge fall down. That's a single point of failure. Or if the computer crashed and Boeing 747 and therefore it couldn't be flown and it couldn't land, that's a single point of failure. So we eliminate those from someone's life. So whether it's one divorce, they run a big company and they have one tech guy who has all the passwords and all the data and everything else. Something happens to that person or that person just gets pissed off. That's their

single point of failure. So because we're so used to dealing with that after the fact, we've tried to get up front with it and we can look at your life and identify. Here's all the places that can bite you in the ass on Monday. Why don't we go take care of those now, which is much cheaper and make sure you have two of everything. Now, that's already twice the cost. Maybe you need someone four hours a month to make sure he can access everything that your chief technology officer can access for example.

So then protecting assets we predicted FTX two or three months before it actually happened. Our clients say there was 70 million by transferring their crypto out of there. We discovered crypto wallets that were not secure. So we got people to transfer out before we fought a hacker's discovery. We're not secure. We predicted crypto winter in advance and got you always recommend and I always use your advice on this 404020 in terms of how people allocate their funds. But what we do is apply oversight to that and go you were 404020, 23 years ago. That's your Bitcoin has doubled or have. Did you look at it again now?

Right. Because we've had people who were 40, 40, 20 and now they're 90% intergambling money because it grew so much relative to the rest. So our people spend their whole life building a business. I'm like, have you ever taken cash off the table? Have you taken care of your family, your kids, your house? So that if this one company gets sued and goes bankrupt, you don't lose everything. And we've so many people come to us with that going, I've been too busy to even think about it. So, spoff hunting is one thing.

BCDR is another discipline, which is business continuity and disaster recovery. You have backups, but can you restore? If you can't go to work on Monday because a chemical spill is everyone able to function from home? How do you know? When's the last time you tested it? So we do disaster recovery, rehearsals every quarter to make sure a whole company can function even if nobody can go to work. And these are just good disciplines to put in place.

And yeah, people ask us then to look at the macro level of what's going on in the world in the economy, what currency is safe? How do you avoid inflation? Should you invest in Europe, New Zealand, Australia? When water levels rise 10 feet, where is left in the US to have real estate that's worth anything? For retirement homes and stuff like that, we just did that research. So we've looked in 10, 20 years ahead. If California is burned to a crisp because of a global warming, then where can you live comfortably? And if the FAA shut down the airlines,

if you have a sea plane with extra fuel tanks that has the ability to land on a lake and you're within a mile of the lake for your summer home, then effectively you can avoid the gang lands that the cities will turn into. Get off somewhere where you have a bulletproof vehicle, two months, food supply, and a sea plane to get in and out,

and your family will be relatively much more comfortable than your other family that didn't plan ahead. So what Walter mentioned there, the 40, 40, 20 principle for listeners that haven't heard about it before. That's where I take 40% and then invest in low risk. These are things that I want to make between 5 and 9% for the year. 40% medium risk.

This is what most people like, where you're hoping to make between 10 and 30% a year. These are things like real estate, the stock market, cash flowing businesses, and then 20% high risk. This is what I call the shot at glory. You're hoping for something big to happen. 2X, 3X, 10X, 20X, something big happens. This is cryptocurrency, NFTs, and especially angel investing. And you're hoping that the medium risk

and the low risk will cover the high risk, that 20% of the youth. You can adjust it, you can change the percentages based on the type of investor that you are, but ultimately this is what I've done for many, many years is low risk, medium risk, and high risk. And so for those of you that are listening,

consider for yourself, if you had 10 grand saved up or 100 grand saved up or whatever number that is, thinking about taking 40% of that for low risk, 40% for mean-earn-risk, 20% for high risk. Walter, what are your thoughts about the 40, 40, 20 principle and how people can think about it for their own lives? Well, I've managed funds, as you know, that went from 500 million to 1.9 trillion for seven years.

We moved 8.5 billion a day, and we would lose a million a minute if the systems went offline, which is why I was involved. That was my finishing school, in after, after college. And I learned a lot about risk and diversification being in that situation. And the 40, 40,20 is as good a rule as any in terms of a good balance. I mean you can adjust that depending on your

circumstances as you get older so you can take a little more risk when you're younger because you have more time to recover in the market but as you get closer to retirement you might be cashing that money out in five years. You don't want it to be in a down cycle where you have to wait 10 years to get it out. Generally I think what people don't understand is if you look at income in the US statistically, the top 1% of the wealthiest people in America, we all think are billionaires and trillionaires. They actually make 500K a year, 42500K a year, top 1% and after taxes then that's like 200, 250k. So that means if you lay out the life you want, you want to live in this house, you want

to vacation once a year, two cars, a few kids go to college, each kid is a million bucks. So 250k for high school, 250k for college, that's 500k after tax, so about a million you have to earn per kid. So if you look at all that, you need to make over 250K to get that kind of life that you wanna have. Well, if only 1% of people do that, that means 99% of the people around you, 99% of the time are wrong about everything.

Wow. Everything on Instagram, everything they post, all the well-wishing, be yourself, don't judge. There's no right or wrong, follow your gut feeling, go with the flow, universal take care of you, et cetera, et cetera,'s no right or wrong. Follow your gut feeling. You know, go with the flow, universal take care of you, etc., etc. is all categorically wrong. Now, if you take a motion out of it, and then you look at investments, factually, where you do proportional due diligence, you know, some of them might spend 20 years of their life earning 100K to invest. And now, it's spent two hours

doing due diligence of where they invest it. Right. And then you wonder why they lost it. And now it's been two hours due to diligence of where to invest it. I wonder why they lost it. For example, I looked into cemeteries, a funeral services, air conditioning, rehab companies, rubber manufacturers. Now that's very non-sexy stuff to invest in. But that's the very reason why, because I don't have any competition. No one else is looking into that stuff. The people who collect our garbage, the ways disposal comes with

our garbage makes 20 billion a year. We're not going to have less garbage any time, Sashir. In recovering from a pandemic, plus a recession, and people being depressed, there's no reason why we should have less funerals. Now, if I based that on zip codes in Jewish communities, then I don't have to worry about cremation bypassing the cemetery land rights or land values. Then for example, a good way of looking at things, you look at something like Tesla and you're like, well, there's potentially a good investment or not depending what the CEO does that day. But there's not enough lithium ion to be mined on the planet right now to give

everyone electric cars. So that's going to slow things down significantly. And your Californian will say things like there'll be no combustion-based cars sold in 2035, but again, there's no governance or consequence. If they break that rule or push it under 10 years, what happens to the original politician? Nothing. He's retired by then. So you can say what if the hell he wants? So when you can see the world for what it really is, and if you use that as an example, okay, so I don't know if we're going to use electric cars or combustion cars. I don't know if we're going to use cars at all if they're all owned by Uber, but I do know the cars are going to need tires or wheels. And that means they need rubber.

So why if I look at rubber factories and rubber equipment that produces rubber, there's no reason to believe we'll need less rubber any time soon. Plus those cars are accelerating 0-16, 2-3 seconds, which means they're scraping rubber off, and those tires are probably softer than classical tires to get that much grip. So this is the kind of rabbit hole stuff I can look down that no one else is looking down and go, I think there's a safe bet. And a safe bet to me is, okay, there's no reason for this to get worse. It may not skyrocket 4,000%, but it shouldn't get worse.

And if everything else gets worse and it doesn't, then relatively I did well. I might be up 30 to 60%. All right. Well, to the last question, obviously, I'm going to have to bring you back to do a whole other episode. Last question is on philanthropy. So I always ask, how do you make money? How do you invest money? How do you give it away to charity? What are your thoughts about philanthropy in general? And how can people be more efficient at it? Be specific in the philanthropy. A lot of people, I asked them, you know, if you had a million bucks right now

and you couldn't spend it on yourself, where would you spend it? And they're like, I don't know, you know, kids in Africa are the homeless and that means they haven't really thought about it They haven't thought it through specifically Whereas if someone actually goes to the trouble now as if they did have a million bucks from their uncle They had to give away That they actually went who do who deserves it and let's go visit those places and let's see the poverty or see the issue and understand, you know, a friend of mine realized that for every 5,000 they could pay for a classroom in Ethiopia to teach kids for a year. So now they're very motivated to get better every morning and make an extra 5,000 bucks, every

5,000 bucks in the classroom. What you do with the homeless with the backpacks, that's really specific. That's what they need. That's what they want. It's practical. People can't hand them away. It's brilliant. So there's something that now we motivate. It's like, okay, every time I earn X amount, it's an extra 100 backpacks. So even though you don't have the money now to give it away, a lot of people make the mistake of waiting till they have the money before they'll think about it. I say think about it now and it'll motivate you to go make the money because it's not about you anymore. If you were able to help a hundred people a year, that means a hundred people a year are going to suffer every single year waiting for you to catch up and get off your ass and get to

that point. Another thing people don't do well in figuring this out is you can't be charitable while there's still a charity yourself. So you've got to be selfish until you can be significant. So take care of yourself first. And that means do the math on it. So if you're 30 years old and you can live on 10 grand a month, that's 120 grand a year. Plus let's say 4% inflation on average between now and you might live to 110. Do the math on that, what's that, 33 million? After taxes. So until you make 50, you're homeless. Unless you get ahead of that curve. You'll be working in Denny's when you're seven.

So that's called your lifetime runway. How much money does it cost between now and the day, your last day on the planet, to feed yourself? Just do the math on that. Until you hit that number, you are the charity. People run to real estate as an assumed investment. Well, let's say a real estate, if someone's land is, I say, half a mill and their house costs to build it is half a mill. So it's a million dollar home. But then we sell it for three million. But where that extra

two million come from? It comes from assumptions. Assumptions at location location, location, well that doesn't matter for all on Zoom calls. We assume that people want to somewhere close, they can commute to for shops and infrastructure. Well not if Amazon drones will be dropping stuff off every half an hour and long with Walmart and UPS, then we don't need to do that much for shopping. Well we don't want to go a long distance. Not if you're asleep in the back of a self-driving Uber for free, you won't care. Right. So all the assumptions that made real estate a safe investment are no longer there.

So people need to question these assumptions. Real estate did make the most money for the most people over the longest period of time. It doesn't mean it always will. Just like being in blacksmith, it used to be a good business. Right. Ladies and gentlemen, you have watched Walter O'Brien on the Money Monday's. If you want to have some fun,

go look up Scorpion on CBS. They've had four really good seasons. It's one of my favorite shows of all time. Also check out conciergeup.com so you can see what Scorpion and what Walter O'Brien's business is. His fun project with all the nerds and all the wizards and all the smart people he has in the geniuses that help people with their businesses and their situations. But we have one favorite one request. We all grew up thinking that it's rude to talk about money. And I think, and I hope Walter thinks the same thing

that it's rude to not talk about money. And so what we need you to do is share these, subscribe, share with your friends so that we can get more people talking about money. We'll see you soon. Ladies and gentlemen, welcome to the Money Mondays. Well, I'm really excited about this guest. He's like, how do I say this? All the real estate guys that I work with look up to him to ask him questions and advice.

Whenever I have anything to do real estate related or investing related, he's literally the first one I call or ask if I can just show up and come over and we start white boarding together. And so for me, this is on a personal level. I'm just gonna ask him questions that I wanna know about and it's gonna be beneficial to you because if I wanna know about it,

hopefully you wanna know about it. So the concept for the money Monday's, as always, is we skip all the emotional stuff, we skip all the long backstories so we can get straight to the money. So can't close there, please, give us your long backstories we can get straight to the money. So can't close there, please give us your 60 second bio so we can get straight to the money. 60 second bio, I am, like you said,

I'm in the real estate space, I, my family and I own a company called Arii Nation with Flip anywhere from 800 to 1000 properties a year and 11 different markets manage about 8,000 single family homes right now and own several different funds, 11 different markets manage about 8,000 single family homes right now and Own several different funds several hundred million dollars in commercial assets etc and lending I mean you if it's real estate related a minute at this point, so very fortunate. You just say it so casually 8,000 single family homes and hundreds of millions of commercial real estate like how did this all come to be?

Have you always done real estate or was there something past? I've been in real estate for the last 20 plus years. I think I'm in my 22nd year 23rd year Before that when I was a kid I was 17. I started an arbitrage business in the grocery industry My dad was in the grocery industry and so where we were just buying and selling truckloads of groceries kind of trading on different pricing where we were just buying and selling truckloads of groceries, kind of trading on different pricing. And before I knew it, that little business turned into a $50 million company by the time I was 23, 800 million

by the time I was 27 and 1.8 billion by the time I was 30. So no, I haven't always been in groceries, but I've always been in business. So this is a money question. So when you say arbitrage, what does that mean? So you buy like lettuce for 20 cents and sell it for 24 cents? Is that what you know? What's cool about groceries is you have a static product. In other words, you know, if somebody, anybody that's listening or watching, if you look down at

any item in your grocery store or sitting on your desk, there's a universal product code, UPC, that barcode. What that is is that tells the entire world that this product is that this is that same product everywhere. Now what's different is the manufacturer actually sells it for a different price everywhere in the world. And they do that to gain market share, to move markets, right? So, you know, a can of red bull, or a case of red bull, and Miami might be selling for $40, but the manufacturer might sell the exact same item in Seattle for $140.

And so, you know, a guy like me, this is pre-internet, what we would do is we would come into where it was being sold at a discount, and we would say, hey, we'll pay you $45, put it on a truck, thousands of cases, ship it to Seattle, and say, listen, you're paying 140 from the manufacturer all day, how about we sell it to you for $120, right? And they have to have a divorce, Of course. And everybody's winning.

I love it. All right, so let's dive into real estate. So on the money Monday, there were only three topics. How do you make money? How do you invest money? And how do you give it away to charity? So let's start with the first topic. How does Cangclo there make money?

At this point, we have an active real estate business, as I just said. So we are actively buying and selling properties every single day, hundreds of times a month. And once we do that, we've been very fortunate and very deliberate over the years where we have then realized that when we have that one transaction, there are other transactions that come behind it. So in other words, we have built an entirely vertically integrated ecosystem. So not only do we sell you the house, but then we will rehab the house.

Now we will find the renters. We own the property management company. We own the insurance company. We have a lending company. And so that is a very strategic way that from an active standpoint, how we make money, equally, we have several funds that are actively out there buying commercial properties, RV park, self storage, multi-family that we're then adding value to those properties,

putting renters in place, it's a totally separate business by the way, different operations teams, and then ultimately flipping those properties with investors. And then equally, you know, a very successful education and coaching and mastermind company that coaches tens of thousands of people every year, shows them how to do various, a lot of anything in real estate. And we make money that way. And so not only we're making it actively, but we've got a lot of passive stuff going on as well.

So walk us through on the masterminds and education side. Is there different levels in pricing? Like let's talk actual money. What does it cost to join? Yeah, so we have our coaching program. If you come into our, if you want to learn how to be a real estate investor, right? So most people will watch chip and Joe Anna gains or whoever it is on TV. They'll get a little enamored.

And they'll come to us to learn how to actually do it, whether that is rehabbing or whether that is wholesaling a property or whatever the case may be. And so we have a 15,000, all the way up to $25,000 program, 90 days up to six months. We'll effectively kickstart their career or show them how to do it. And then what we have definitely found in the last years and where I've spent the last five years really focusing on, there's not a lot of people in the industry that then show somebody how to turn this little hustle

into a real business, right? And that's something that we've become really good at. And so then they start graduating into our mastermind and into ultimately, they can even work with me privately on CEO coaching to where we kind of tap into that next thing. You've solved the income challenge, but you have no idea how to be a good CEO.

You have no idea how to put the systems and the processes and the people and all the things that might intimidate you, we then take them in that mastermind format and really show them how to do that. And our mastermind is a true mastermind. I mean, somebody has never been inside of a mastermind. I mean, you make an investment for sure. $30,000 to $60,000, but we surround you. This is a group of 200 of the best real estate professionals in the

world. We curate it like crazy. And that group gets together four times a year. And over a two day period, we are breaking each other's businesses down. So it's not only highly tactical, but it is highly inspirational and aspirational because to your left or to your right are people that are doing what you want to be doing, right? And they've accomplished what you're looking to accomplish. And so that mastermind is extremely powerful when it's done done correctly. And that's been around for 10 years. So why should someone join a mastermind?

Whether it's in a fashion industry or makeup or health and fitness or food or real estate investing or just general business, why is it important to be in a mastermind setting? Because there's only one way to coast. And that's downhill. You know, if you're not peddling, then you for sure going in the wrong direction, you have to keep trying to become better. You have to there's a big world out there. And a lot of people get trapped inside of their own four walls and

they start believing their own BS and, you know, they're a big fish and a small pond. And I don't care what city you're in. There's always a bigger fish. There's always somebody doing it bigger. And, you know, you know, that I know that we get, we hang around people that a lot of people in our world look at us and they're like, oh man, you guys have got it all figured out. And then we go sit in other rooms where people are like, oh, I don't have anything figured out, right? And that's the point is when you get around people

that are doing it bigger, not just business, but business, life, money, financial wealth, everything, it opens up a world of opportunity for you. You don't know what you don't know. And as long as you, whenever you stop seeking, then you're just going in the wrong direction, man. I mean, I'm just a huge believer. I didn't come this far to come this far. And I think that's what every mastermind does for you is, if it's done correctly, not only are you getting the strategic and the tactical, but you're getting inspired and you're connecting dots extremely fast. It is a way to effectively collapse time.

You know, you high level entrepreneurs, one thing's for sure, we'll get there. But as far as I'm concerned, why would I wait? I mean, if I could get there tomorrow, you know, if I've got a challenge, I'm picking up the phone and calling you, right? And or whoever, if my network can suddenly bridge it for me like that, why would I not take advantage of? That's one of the smartest investments you could ever make.

So I always say once a wallet is open, it's way easier to get more money from that wallet than to go open a new wallet. No doubt. And so when you mentioned, they can buy or sell the house through you, but you can also help with them with their loan or their insurance or their title or their flipping or the remodeling or everything involved. That's the same concept. You know that first person that needed to sell their house or they had a divorce in a situation happened or they have a business, they want to move to another city and they got to give it to that house or buy a new house.

From there, you knew that there was the situation, the situation, the situation, basically all your vendors, clients, partners around you, you replicated some of those to create your own business. Is that correct? Why don't more people do those type of things? And how can they start looking at their own business and be like, you know what? I could do what that vendor does or what that client does, or I could partner with them in JV with them. I don't necessarily want to do it. I don't want to create a escrow entitle company, or I could partner with them in JV with them, I don't necessarily want to do it. I don't want to create an Eskirontidal company, but I could join venture. What are some things people could do to actually sit

and look at their own businesses to figure out, how can I make more money within the same customer base? Well, there's two things. One, their first question, why do people not do that? Is because they're transactional, right? What I've learned, it is a hard bridge to go from hustler to CEO. That is a not absolutely not a natural bridge for people to follow. In fact, I would argue that the hustlers in direct conflict with the CEO,

because, you know, if you're transactional, you have been rewarded. All the accolades, everything you know, the money, everything has come from, that dopamine has come from that transaction, right? So you're a fiend. You're constantly, you're a deal junkie. You're constantly looking for the next thing. And when you go to a CEO and you start thinking more strategically, then you're not that dopamine hit comes in a different way. Like this one transaction that I've worked so hard to get, you know, the question I would tell everybody to ask yourself is, what's the transaction that your transaction just created? So think about it in real estate.

If somebody buys and sells a house, well, that's just the beginning. The moment you did that, there are so many other people that now you created a transaction for the title, escrow, an appraisal, contractors, moving companies, direct TV, insurance. I mean, all these other things were created because you did your job. And as a CEO, when you start thinking strategically

like that, you're like, wait a minute, my one thing, that's my transaction. But the reality of it is, is I just created two dozen other transactions for other people. Why would I not try to figure out a way to capture more of that audience and extend the lifetime value of my customer? Most, you know, what people don't think about is, if you're doing a deal and you're making 20 grand, if you actually think about it and go down the line, you'll see that in a lot of cases,

certainly in real estate, another 20 grand was created in fees or interest or whatever the case may be. The fastest way to double the size of your business, go get that business. You're already doing it. You already did it. You don't have to go get more customers. You don't have to do bigger deals. You just need to go capture more down the line of what's going on and it effectively

is free money because you already did all the hard work. All you have to do is whether it's partnering or JVN or actually owning it. The reality of it is, the money is going to transact whether you do it or not. So you kind of have an obligation, a responsibility, as a CEO. You have an obligation to try to figure out

how to extend the lifetime value of the customer. So the last question about how can't makes money. There's CEO coaching, there's speaking fees, there's books, like what are some of the other things that as someone that's out there that they might be able to add as a revenue source for themselves, like how can they decide, I'm gonna be an author or I'm gonna start speaking

at events or I'm gonna create a match mind, like what are the other things that are waste for Kent as a person or as a business that? I mean, I look at it the same way I just said, I mean, the reality of this is that I worked hard over the years, just like others have to create authority and influence in the market. I didn't always have a clear line of sight

on what that actually meant, but I can tell you now more than ever, when you have authority and you have a social media presence and you have some influence in the market and you're a trusted agent of all that, opportunities, whether that's inities, whether that's in coaching or whether that's in courses or whether that's in speaking fees or writing books

or whatever, I mean, that's all there for the taking. Now, we'll tell you this, you know, kind of a cautionary tell, if you will, is that the first place I would always look is what is a natural byproduct of your core business. I can't tell you any times people come to me and they've flipped a few houses, sort of done a few things, and suddenly they want to open a coaching program. And I'm like, it is a completely different business. It is not the same thing. Anything that would naturally kind of fall into your business is the first place you want to look. Right. Then as you get the systems and the processes and people in place and they're kind of running

this business and you kind of, all right, a place where it's like, all right, now I can actually start to potentially monetize other things. Every one of those things you just mentioned, courses, coaching, mentoring, speaking, those are businesses. And I will tell you, in those businesses, in particular, it's pretty costly to be wrong. In other words, because it's public now, right? You go often start coaching somebody and they have a bad experience, whatever. I mean, they're going to light you up on the internet, FTC. There's all kinds of things. So you have no choice but to run it like a business. You have to be

good at it. And you don't get to passively do that kind of stuff And so I would I would look inward first Get it perfected and then go outward all right Question number two of the how to make money invest money and give it away on the investing money side How does can't or your business? How do you look at investing money since you're so good at making money? How do you invest money? You know naturally a byproduct of what I do is real estate, right? And so we invest I Mean if not all the vast majority of our holdings are almost always in real estate the way we look at it. We really look at two things

Because every business has a different season and so there's sometimes we'll we need to be looking at an investments more from a cash flow perspective. Are we creating real cash flow in real time? And those investments are things that we would go into like self-storage or multi-family where we can create cash flow very, very quickly and do some value ads, spruce it up, etc. That That's that's what and in you know any time You're investing. I really believe you have to look at it through those two lenses You have to look at it like okay does my business need the cash flow right now or my investors need the cash flow or Is this purely an equity play right are we playing the long game? Where we're not gonna see any money? We're gonna invest the money

We're gonna invest in the infrastructure going to maybe ground up development whatever it is But we're going to play the game to where we're going to make an exit and three to five years on a property and then everybody's going to get paid but there is no cash flow and so We look at every investment big investment through those two lenses and so Examples of cash flow like I said self-storage We have one of our funds that does nothing but lends money, right? We're in large part we're arbitraging other people's money. Our investors are giving us the money. We have the deal flow and then we're making that delta on going out there and

being a good steward of their money, putting it into good deals, lending to good borrowers, and turn around and as that money comes back in, but those are cash flow investments because we're getting paid every month out of the deals. We have a hotel project that we're working on in Palm Springs. We have another one we're working on, Las Vegas. Those are all ground up type stuff. We're not going to see a dollar for many years, but we know when we do see dollars, it'll be tens of millions, hundreds of millions. And so I really think that every investor should really look at it through those two lenses, because it's, you know, the last but not least, is probably another one that we definitely look at is, what are we doing from a depreciation standpoint? And if I can get real tax benefits in real time, especially at the end of the year, millions

of dollars in write offs, et cetera, a lot of times that's a big enough reason to make a strategic investment into a property that, again, it's more of an equity play. Not going to be cash flow, but we can take a, if we can do a cost segregation study and we can do a accelerated appreciation, be shocked how the tax code can work to your benefit real quick to get a lot of offset, a lot of taxes really fast at the end of the year. So that's a really probably the three main buckets we look at stuff through. So someone listening, they're making some money, they're making 60 grand now, they're making 100 grand or maybe 200 grand or 500 grand. They start progressing through life,

they're starting making more and more money. Why should they be investing also along the I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years.

I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years.

I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. I've been working on it for five years. But the most effective way to get rich in the long run is uninterrupted compounding interest. When you're in your 20s, it's not sexy. When you're in your 30s, it's not sexy. But I go and tell you, you know, if you can go get $5,000, $10,000, $15,000, $20,000 into

an investment and it is compounding year over year and you're investing every year at an 8% interest, you will be a multi-millionaire by the time you're 60 years old. And what makes that so effective is time, not the money. Right? So I was just showing my daughters this this past weekend that the difference of what my 17 year old retirement account will have in it, versus my nine year old. And that's, you know, effectively, we got eight years here, but that eight years, what that will do is, by the time what we set aside for our kids

and how it will compound over time, when my 17 year old turns 59, there'll be $22 million there. But when my nine year old, that'll be $46 million. Wow. Eight years. Ten years. Ten years.

Because it can compounding on a $22 million number now. And then it compounds again. And so what makes it so interesting is that time. And so back to your point, if you've got, I don't care how much money you're making. Get money working for you now and let it work. And you can invest in real estate funds, you can invest in, you know, you don't have to have a whole lot of money.

You know, you can, if you get a money and go, or get money and go put it into a self-directed IRA, the government will let you put, you know, $6,500, I think somewhere in that neighborhood and into a fund every year and go put it into a self-directed IRA, the government will let you put $6,500, I think somewhere in that neighborhood into a fund every year and go deploy that directly into a fund like anything. And friends and family, it doesn't really matter. And allow that effectively to bake

and just keep deploying. Don't ever take it. And the reason why the self-directed IRA thing is important because you can't get your hands on it. You have to keep deploying. Right. And so just keep rolling. Just keep on rolling, keep on rolling, keep on putting

that $6,000 in there every year and just keep on putting it in. And it will just make you ungodly rich. But we live in a world, I mean, we live in the social media world. Everybody's gonna do attention span of 15 seconds. Everybody wants instant gratification. Everybody wants to be able to post the watches

and all that kind of stuff. I mean, that's income, baby. That ain't, that's not wealth. If you want to get wealthy, get into real estate and do it now and allow that money to bake. And I don't care how much money it is, 10, 20, 30, 40, get you to a place where you can actually, you know, get it moving. So the tattoo you have, the time is now. And tell me why. Well, I give you three reasons why.

One, I talked about that big company at the end of my 30s, $1.8 billion, and the end, my partners, and I got into a run-in, and I walked away from that company and got humbled over the next 22 months and lost every single dollar I'd ever made, and I just started all over and got into real estate. So I realized real, real, how important, the time really is and spending time

where it really matters. Cause I'd spent night and day building a company and ultimately figured out real quick that just how fragile and how crazy life can get, right? Then I held, a few years later, I was holding my mentor's hand, tens of millions of dollars in the bank, and just retired, it was 60 years old, my uncle,

holding his hand when he passed away and said something very profound on a whiteboard to me because he was all hooked up in a hospital bed, couldn't talk, but he said, I just wish I had more time. And when he said that and wrote that on the whiteboard and then passed away a few minutes later, I knew he had 30 to 50 million dollars in the bank, I had more time and when he said that and wrote that on the whiteboard and then passed away a few minutes later I

I knew he had 30 to 50 million dollars in the bank and I was like wait a minute He's got all this money and it cannot buy him the one thing he actually wants Which is one more minute like he would have given 50 million dollars for one more minute Well, I'm gonna happen and so and then I was you, a few months after that, I happened to be on a plane that, that, you know, I had to make a very, very, very scary emergency landing, with my young daughter and wife on the plane, and plane filled with smoke, had to be diverted, we were told to brace for impact, all the crazy stuff you never want to hear on a plane. And so, you know, those three experiences really kind of helped me to get a lot of clarity around what really matters.

And it's about time, baby. I mean, we wanted to all be about money. The reality was, we want what the money gives us, which is time. Be able to control time. Be able to do whatever you want, whenever you want, with whoever you want, you know, whether it's showing up for your kids soccer games or going to cheerleading practice or traveling around at an RV and doing podcasts just because you can. That's what we want. We want a control time.

And so, yeah, when I, you know, I don't wear a fancy watch and wear a little bracelet says the time is now. I've got a tattoo says the time is now and funny thing is every time I look at my wrist, it's always right. I mean, this is the moment. This is what you got. And so make the most of it, set yourself up where you get to control time and you'll be shocked at how good life gets. All right, and then the last segment is, how do you give it away? Like, what is important to you, a charity perspective, if at all,

and why should charity be important to other people? Yeah, I mean, I love the question and it is extremely important to me. I believe that I'm one of those guys. I just believe that we are here to leave it better than we found it, right? Create real impact and not at some superficial level. My wife and I give a great deal of money to charity,

but I had the good fortune back in 2012 of making a, I actually had a mentor, dragged me down to Haiti, did not want to go, didn't know anything about it. It was, had a profound experience on me, or profound, you know, it really, really changed me. And that, if you've never been to Haiti, Haiti is probably the most destitute place on the planet.

It is, we don't even know what poverty is here. Like, that's real poverty. And when I got down there and just saw what I saw and got to experience, what I got to experience, I came back changed and immediately went to work, started working with some really smart people. We have helped a lot of charities down there. One of the things I'm most proud of is we built an entire village down there raised hundreds of thousands of dollars and built a 60-family

village in Haiti that there are 60 families that have a real shelter down there, not a blue tarp. We work a lot with charity water and providing wells all over the country. Then we have our own kind of cause here that is near and dear to my heart that started about 14 years ago, raising kids with money is hard. And so about 14 years ago, I started taking my kids at Christmas time to stores to pay off layaways anonymously. And we would go and look at all the outstanding layaways and Walmart and Sears and Toys Are Us and see all the ones that had kids toys on it and just

Right to check swipe the car. We got it. Don't tell them we did it. Just go take care of it. And that's now grown As I started to share it my community we have a call is called 1000 1,000 layways and so every year All over the country and we pay off thousands and thousands of layways completely anonymously. And what's baffling about this is that, you know, if you come from money, you have no idea. But when you actually go to pay off somebody's layway, you

be shocked, right? So there are hundreds of them sitting in the back of a store like Burlington. And these people have had these things on layway, their kids Christmas gifts for several weeks, but on the 12th or 13th of the month, those stores have to cancel that lay away and put it all back on the shelf for the last Christmas rush. And they're going to get a call.

I mean, we literally go in there on the 12th. They're about to get a phone call that all the stuff they've been doing is about to go away. And you go look down at the receipt, you're like, oh, they owe $12. They owe $50. They owe $67. You're like, this 60 bucks is the difference between this child having Christmas

and leaving in Santa Claus or not. Oh, right. This is the difference between a parent getting to be a hero a lot of times a single mother or not. It's just baffling and it's so easy to be cool. And so that's how we give our money away. We are trying to train our kids to be good stewards and think about it and not just be consumers to really think about trying to help as many people as they can. And I just love the idea, especially with the layaways that, you know, all those 60 families

and Haiti, I'll never get to know them. All these thousands of people in the layaways, I'll never get the parents get to be the hero. I mean, that's to me that's a, I sleep very well at night knowing that at least we try. So you've seen at the masterminds, there's only one question that's recurring at every single celebrity athlete that I interview. There's no other questions the same except for one and I'm finally going to ask you. At the end of the day, 50 years from now, 100 years from now, whenever it's time for you to pass away. And you've got 50 million, 100 million, 500 million, a billion, two billion dollars, whatever it can't, and his wife is amassed over the years. What do you leave to your kids?

I mean, I can tell you, because it's set up. My kids will get 5% my kids, and my, so we have a legacy plan, right? So my kids will get 5% and then my grandkids will get 5% now. my grandkids will get 5%. Now we've already recorded an entire effectively an online course that in order for my kids and my grandkids and great-grandkids to get to that money, they have to actually complete the course to go through it. And I think it's 52 modules. So they have to go through it and understand what we did to create this and what our values are.

And until that is completed inside of that course, that money will not unlock for them. The rest of it, we have several charities that has already been designated. I mean, we have a plan, but it is not just distributing the money, it is distributing the money with strings that I want them to know, not just how we've worked for it, but I want them to know what is important to us.

What would matter the most to me is that everything that we've worked hard to do doesn't just go one generation, just go two, that it goes all the way down the line that in order for people to access all that capital, all that liquidity, all the properties, all the companies that we've built and do a play active roles in it, that they're gonna have to be good stewards.

They're gonna have to actually have the same values. And if they don't, guess what? Go do your own thing. I'm cool, that. I'll still teach you the lesson. You can still go watch it. If people ask me, why do you bother with the courses and everything else? Because that will live forever. My kids, grandkids, great, great, they're going to be able to see everything I do on social media for the next 100 years. If they want to get the money, they're going to have to go through a specific, but they're definitely going to know what we stood for. All right, guys, you're listening to the Money Mondays.

Make sure to like and subscribe, and if you could just do us one favor, if you like some of the clips or you like the whole episode, please share it with your audience so we can get more people on here learning about money, because I think it's rude to not talk about money. You