The rebel capitalist show all right guys. It gives me a great deal of pleasure to welcome someone back to the rebel capitalist show. He is a rebel capitalist. That is for sure, he’s one of my great buddies, Robert Kiyosaki. He needs no introduction. Robert welcome back to the rebel capitalist show, my friend well George, not to be a mutual aberration society, but you know hanging out with you in Jekyll, island, Georgia and then now you’re here in Phoenix and all this and actually getting. I want to say getting to know. George outside of the screen is another interesting process, because I get to observe him when he’s not on screen and George does go down the rabbit hole. He is the most active interested learner, he’s always learning and that’s nice to see, because a lot of people are very superficial but you’re a very curious person. You always want to learn. So I’ve noticed your focus is a laser anyway. So that’s the for those who do not have the pleasure of hanging out with George, like I do now in Phoenix, is I get to see why he’s so ahead of the game because he’s an active, very intense learner. So anyway, that’s my two bits on that. Well, I appreciate the kind words, but that kind of segues into exactly what I wanted to talk about today, going back to the red pill expo where we were fortunate enough to speak. A few weeks ago, g Edward Griffin was nice enough to invite us both out there. You know I stayed an extra day just so I could hear you speak and I spoke on Saturday. You spoke on Sunday morning and uh we were. You know we had dinner, that was awesome, but when I went out there and spoke – and it was on this great reset by – everyone I think was was fascinated and that I got a ton of questions and at the end, they’re very appreciative and you kind of Get the golf clap, but when I watched you speak, it was on a completely different level and if you recall, you’re having some issues with your audio and you were going right into this story or you’re about midway into this story. And as soon as your audio went out, you could hear the audience just go. Oh, and oh no and they almost started crying they’re like no. No, we got to, hear the rest of the story and I was sitting there with him and right there. It dawned on me how powerful storytelling actually is and how we, as human beings, really learn a lot a lot better through storytelling. So that’s what I wanted to do today. I wanted to get the brief story on how you were introduced to gold and things like real estate bitcoin and then maybe the story behind. Why you’re like me a little more skeptical of central planning and the federal reserve. So let’s start with that story on gold. Thats a great one: oh quick, yeah um by the way jackal allen islands where the federal reserve bank was founded, was what created. So that’s why it’s such a prominent a place in history, but gold started in Vietnam. I was um. I was. I just arrived there in January 1972 and I was a brand new pilot flying off a carrier, and I got this letter from my rich dad and he said: hey Nixon took the dollar off the gold standard and we didn’t know what that meant. What does that mean, so he took it off on August 15th. You know 71
So there was another pilot with there and we were looking at the maps of Vietnam and said: hey, look, there’s a gold mine here and so we said well, let’s go look for gold and we didn’t know what gold looked like right. So we flew. I said this is only one problem but north Vietnamese just overran that position and, as I always said, Marines aren’t the brightest guys on earth. So he says: well, let’s, let’s go see if we can find some anyway, so we and we flew into this village to negotiate a good deal because we thought we could get a discount since it was now behind enemy lines, so we disarmed. We landed our helicopter and walked into the goal mine placed with a little living was selling gold and my co-pat and I are standing there on the arms surrounded by Vietnamese and we’re trying to negotiate gold. I think gold was about 50 bucks and it floated from 35 to 50
We thought we could get a discount and she laughed at us yeah. That was my realization that we didn’t know anything about money and we did nothing about gold right. But that’s like what you say: you go down the rabbit holes and you know how come I don’t know anything about gold. Why don’t we know about this stuff? And that’s when you know you go suspicion comes up. If you know what I mean and this woman knew more about gold, as she obviously didn’t go to Harvard and we were college graduates and she said spot, she kept saying the support spot you through the Vietnamese and all this stuff and spot is the price of Gold all over the world in u.s dollars and she knew more about it than I did so. Thats when I uh the ship sailed to the carrier, sailed to uh Hong Kong and I bought my first gold coin in south African Krugerrand and I still have that group grant. I think I paid 50 bucks for it and today is probably worth 2 000
And it’s kind of a reminder by the way I did move that Krugerrand offshore. I don’t keep it in America legally! Thats how much! I don’t trust my government, but you know it kind of fits today because I can’t I don’t know what’s going on, I mean: how can how can social media run our world today who’s running the world, so it makes that little Krugerrand more valuable because, as you And I know it’s: the world is kind of like a big brother. Silicon valley is big brother. Now they can affect media, they can affect what people are saying. You have black lives matter and you know i then I got accused of being a racist, I’m going. What the heck is going on in this country all right, that’s what makes gold a little bit more valuable today. So that’s kind of my story and did you see what happened with uh with klaus the other day on twitter? No, what happened? You know the guy that runs the world economic forum, the guys I’m talking about my great reset videos and what I talked to the guy talked about at the the expo uh. He had, he wasn’t on twitter. He had some account, but they’re all fake accounts, but he came on to twitter. Just last week was like his first day on twitter and I’ve been having my assistant is trying to get me. A blue check mark by my my twitter account because there’s so many scam artists out there that are trying to use my name and scan people out of money and every time she gets a reply from twitter, saying that they’re currently not doing that. Their not going to be taking any more applications until sometime like mid 2021, for these blue check marks right, and so I noticed that klaus went on twitter, let’s say last one last Wednesday and he instantly got a blue check. Mark you see, so it just goes to show you to your point that social media, that all the animals are equal, but some animals are created more equal than the other animals and you know so I don’t want to go down that conspiracy path, but I It is obvious that there’s some people in this world, where those social media rules – don’t be, they just don’t apply to them correct, and you know when not to be I’m not Republican or Democrat, though trump is my friend, I respect the person’s right to choose their Political affiliations, but when somebody says should trump run again, I said why would he run again when the election is controlled out of silicon valley? Yeah, you don’t have a prayer yeah, that’s that’s, and so George is the last thing I’ll say about political. Is that the divide in America is so big today, it’s I’ve never seen it this wide people don’t trust each other. You know, neighbors are not speaking to neighbors and families are not speaking to families, so this modern country is so wide apart god. I don’t want to go off on the tangent here, but you know you’re a real student of human behavior and I’d love to get your opinion on this quickly. I was reading an article the other day and the hypothesis of the article is that in the united states and in western civilization, we’ve moved further and further and further away from religion, and I’m not here to say that’s good or bad. You know it’s a completely different discussion, but people do need meaning in their lives, so this person, his argument, was the reason we have such divisiveness in the united states in our political system is because people are filling the void of religion with politics and, and politics Is now the new religion and that’s why people are so fanatical and people are so diehard and we’re seeing all the things that we’re seeing today and they extrapolated that to not only politics but uh. You know these people that are like a cult following with tesla or maybe like even you know, I’m bullish on bitcoin, but there’s a cult following of bitcoin, where they treat it like a uh religion and there’s some other thing. And maybe you could argue that maybe for some gold bugs treat it like a religion, but that was the whole argument that we’re for we’ve replaced religion with all of these other things. That may be potentially detrimental, but I think it explains a lot. What do you think about that? Its funny you say that cause. Last night I had dinner with uh my my friend, one of my best friend’s sons and both and these two young men went, went to the air force academy and they’re now working um. What one guy is living in Washington state? He said he made the mistake of buying a house in the middle of antifa country. Oh, jeez, [, Laughter]. Is that an Indian tribe? But the point is George, because people are like tribaling, you know they’re getting right. They’re going through smaller tribes, they have the white supremacists. You have mentioned your black lives matter, so I think you’re correct, there’s something people are searching for some kind of meaning yeah, meaning of in life, what they believe in so all right. Well, let’s get back on track. Lets talk here, the story about what got you. I know that you got introduced to real estate when you’re a kid, but when, when did you start investing in real estate on your own, tell us that story? Well, I come back from Vietnam, so this is in 73 and you know I was a marine pilot and I had no money, and so I go to see my old man poor dad and he says well why don’t you fly for the airlines and I said I’M a helicopter pilot a little different. You don’t want me applying your airlines for you can we fly a little different but and then he wanted me to go uh. You know get my phd and all that stuff that he did, and I said I don’t want to do that. So I talked to my rich dad and I said he said what should I do. He said well, she’d become an entrepreneur and buy real estate. I’M like 27 years old, but I don’t have any money. I mean. How do I become an entrepreneur and buy real estate? If I don’t have any money right, rich dad just cracks up, he says you answer that question: you’ll be a rich man, all right and so I’ll. Leave that with everybody here you know because you’re. The reason I was commending you about always being curious is most people stop when they can’t do something, and so, when he said to me, when you figure out how you can be an entrepreneur and invest in real estate and not have any money, then you’ll be Our rich man, so it becomes the perpetual riddle yeah that makes sense to you. So we all have different riddles in our heads, and that was my riddle was. How do I do this, and so I’m watching television in Honolulu, with Waikiki still flying for the marine corps and this tv ad comes on and says you too can make money in real estate, but not for no money down. So since I had no money I signed up, I said that’s me, but they kept their promise. They taught me how to make money without money and that’s how I started buying real estate, but that led me into the next thing is: how do I start a business without money and that’s what entrepreneurs do you do the same thing. I do the same thing, but most people stop at. I can’t do it right, you know so it becomes an addiction in many ways. Its okay. What is the next challenge? Should I say, how do I do this? How do I do that and that’s why rich dad poor dad? I said the most dangerous words are. I can’t, you know at that point you’ve stopped and then the next word becomes. How can i – and that was one of the most valuable lessons my rich dad taught me because he was a man had nothing also, but I think the problem today is too many people think that college the college degree is going to get them past. I can’t so no no, it actually makes you more stupid right because you actually think that college degree. No, you know something, but the lesson I learned from that real estate class for not nothing down in 1973 was he said your education begins when you walk out the door and so for all the college graduates out there. Do you walk out into a job or do you walk into the abyss, and I think you and I like the abyss – that’s right, it’s more fun, that’s it and yeah, and you feel as though you’ve got more control over it. If you’ve got a lot of confidence in your decision-making ability and it fits your personality much better – I mean a lot of people. Ask me: how did you decide to become an entrepreneur and I’m like I’ve? I didn’t really decide. I just kind of I’m like let’s make some t-shirts and and see if I can sell them, because I don’t want to be broke and let’s just make it happen, it wasn’t really a conscious decision. Its just. Oh, that’s, there’s an opportunity over there. Lets go. Try to to make it happen and take advantage of it, but you know what you’re saying it reminded me of something I think we were talking about at dinner the other evening, and that is going back to real estate now with a 30-year fixed-rate mortgage, which most Americans don’t realize is that that is not a free market loan that the free market would not come up with a 30-year loan, because no bank is going to give you that on that money for that long at a fixed rate of interest right, because they know Most likely they’re going to lose purchasing power to the rate of inflation, so that has to be subsidized by the government. Most people don’t realize that. But you look at where interest rates are right now, and I mean like what two three percent you can get on like a rental property or maybe four percent, something like that, and but then you look at real estate. The asset itself in most markets is in a bubble. You know, prices are even higher than they were back in 2006, adjusted for inflation, so we’re having that discussion. It’S it’s weird because most people historically have seen the property as the asset and the debt as the liability. But now especially with these 30-year fixed rate mortgages, the debt is the asset and the property is the actual liability yeah. You got it crazy. So why do you expand on that a little bit? Well, if you look at a balance sheet, you know income. You have asset and liability in my head. What is the liability? Is cash right, yeah and what’s the asset are the debt? So all I’m looking for is an excuse for the banker to lend me the money right and and – and you know like there’s other guys like um, I don’t live debt-free and all this I go. Are you crazy to see? Debt is tax-free money. If you can understand that it’s tax-free money, you know basically because in 71, when Nixon took the dollar off the gold center, the us dollar became debt, and so the people that win are the people who take the time to understand debt, to learn how to use Debt, how to secure debt? How to raise capital on the debt now on the other side, is the person who went to school to get a job and they work for money, and then they pay taxes. Yeah, that’s right, and the thing that I always talk about is real estate is a game of debt and taxes and the more debt. I have the less tax i pay and it drives people crazy, but they don’t understand it yeah. They don’t think they understand that concept Robert, so there’s there’s a lot of things there. Just initially, if you get a loan, obviously you’re not paying taxes on the money that you receive and you can put that to work, making positive cash flow, but also on the equity. If you hold that asset and a lot of super rich guys do this, I don’t know if you’ve done this, but I know elon musk. Does this he’ll he’ll buy, let’s say or even better he’ll leverage money against his stock, so he won’t sell stocks. So he doesn’t have the capital gain, but then he’ll borrow money against the stock and that’s what he’ll use to fund his lifestyle. So he doesn’t need to have an income. So he never pays taxes because he never sells to have a capital gain and those are the dots that I think most people don’t connect. Yes, yes and people say well, do you sell your real estate? You sell your gold, you sell your silver. Do you sell your bitcoin? No, because I have to pay taxes, that’s right, yeah! I would rather find another property or a business or something to borrow money, because remember this. Debt is tax-free money and when it goes to negative, it will probably go into negative four percent interest rate before this whole thing stops before the hemorrhaging stops. So the person that’s being murdered is mom and pop who are saving money? You know I’m looking if there’s a balance sheet. The liability is cash, especially today you’re right, if they’re, printing so and they have to print more. You know that I know that they have to print so much cash and these people are trying to save it. It’S nuts, whereas cash is the liability. Debt is the asset, so the skill of the entrepreneur is to figure out why? What somebody will give me money for to buy my asset and that’s why real estate has traditionally – and I think it is still the best I can go to my banker and I have a 30 million dollar property and they salivate because they make money on the Debt, whereas other people are trying to get out of debt, it’s opposite in thinking and also to one thing I want to point out. Robert is, if you have debt on a property. I know there’s a loan to valuation and whatnot. But, let’s just say, you’ve got a hundred percent. You you have. The property, you’ve got 100 equity and you borrow 100 against it. So you got a 30 million dollar property. The bank gives you 30 million. So now you got the 30 million in your pocket that you can go use somewhere else, but you’ve got positive cash flow. Lets say coming in from that property. If the property goes down in value by, let’s say 50, what do you care? You’re, not selling you’re, you don’t care what the bid is on the property and you’ve got that 30 million. That equity in your pocket, probably well not in cash, but you’ve, got it allocated somewhere else, generating more positive cash flow in an asset that could potentially be cheap instead of in a bubble. So it really limits the downside and you get to a point where, if you set up your portfolio properly, if prices go up or down it, really it doesn’t matter. Its like owning a McDonald’s. Do you care if your broker comes to you and says? Oh, you know what you paid a million dollars for that McDonald’s 10 years ago, but now because interest rates went up, you could only get 950 000
You’d be like, who cares? Why are you even telling me this? I grew the profits from a hundred thousand up to 250 000 a year, this thing’s a cash cow. I don’t care what someone would give me on the open market, but I see I don’t think people really understand that. No, because they’re they’ve been taught to save money and get out of debt, and but that’s not to say you just jump out there, because real estate is like a suicide mission. Also, if you buy a you know, you buy a bad property, it’s like the skipping of a titanic. You’ll go down with it. You know, if you’re over leveraging things like this. So that’s why you know i started with a little eighteen thousand dollar unit back in 1973 and the last deal I just closed was 110 million, but the the property didn’t go up. But my education went up like I kept practicing kept learning and what goes up is your as your intelligence, your iq, but when a person is told well stay out of debt and save money, your iq goes down, you know it’s opposite and that’s what’s hard To explain so I don’t mean to say just jump out there and buy something, but it takes planning experience. I made mistakes and things like this, but that’s how you get smarter, but our schools punish you for making mistakes. That’s why school teachers are poor. They punish people for making mistakes. How else do you learn, and I think, if you stop trying to answer the question, how can I get this done going back to the earlier part of our conversation? It starts if you stop trying to answer that question. I think your belief that you can’t get it done becomes further reinforced. Its almost like a muscle. You have to exercise right, the more you do it, the better you’re going to be. If you don’t do it for 20 years, it’s going to be almost impossible, because you’ve built up this belief system that, whether it’s x, y or z, it cannot be done. So why try? Well, what you’re saying is exactly correct, because my best friend just sold this business for 2 billion 2 billion he’s now more afraid than ever before, but he made it in apartment houses, yeah right, but now he went to muni bonds. But what’s growing in him is his fear. What if I lose hope what, if I lose all this and i keep saying to him – you keep saying that it becomes a self-fulfilling prophecy. You’re right. What happens to the real thing here is, I don’t think you know. I like pictures, but this here is what I call up our four intelligences. You know mental emotional, spiritual, physical right, emotional, that gets most people they’re so afraid of making mistakes, and nobody wants to make a mistake, but, as the fear continues to increase this gets, the emotion of fear gets stronger and stronger and stronger, and then it stops them From doing something, but you know what I mean it’s like when you play golf, it’s a ten-foot putt and in your mind it’s an easy putt, but the emotions say: don’t miss the ball. You know yeah, but Robert you have to visualize. You know i. me you know you kim, plays golf. I’Ve played golf here and there, but you you have to hit to play golf well. When you get down into the low handicaps or you’re shooting in maybe even in the 60s. You know blower, you have to prior to each shot. You have to stand behind the ball and you have to visualize the exact shot. You want to hit whether you want to hit a draw, whether you want to hit a little cut in there. You have to visualize the ball, going up and landing right next to the pin or right in the middle of the fairway. If you can’t see it happening, it’ll never happen, and it’s a it’s like a quote that I can’t recall exactly, but I’m paraphrasing and I read this when I was very, very young and it stuck with me my entire life is the body cannot achieve what The mind cannot conceptualize. Well, that’s why that’s? Why that’s this here when this is a golfer’s model right, you know like, like you know, look at tiger woods physically, he was beat up. You know because his back was gone and then emotionally he gets hammered because he was flandering and all this stuff yeah game goes down, but the guy comes back and I saw him on the I think the 16th hole at the Phoenix open. He missed an easy shot, you know, but his game was so bad that he was going down because I think spiritually he was beaten right and now he comes back to win the masters. So that’s why this is kind of a goal. It’S not really just a golfer’s model, but it’s a human model. But what happens for most people exactly what you say their mind says: don’t make mistakes if you lose money, you’re a loser and your mind. Just doesn’t stop and then the emotion kicks and the physical free, your choke you’re right, not a 10-foot putt, it’s a 10 foot plus one of the toughest putts there is. As you know, I mean it’s. It’S not it’s not close enough to be easy, but it’s far enough to be hard and if you don’t get that mine under control, you’re finished right, but again it applies to making money. It applies to making money. It applies to investing you. You have to be able to visualize it happening yeah, pulling your mind first before it actually comes to fruition. Well, even if I, if, when I’ve lost so much money in my lifetime, you know like, but it turns out to be a good thing. If spiritually, I can get the lesson from it. There you go yeah do what I mean. So that’s why I said I think the tiger was the greatest athlete of our times, but when he, when I saw how bad off he was on the 16th of the Phoenix open and then he comes back to take the masters and holy mackerel, that’s spiritual! It wasn’t anything else at that point, you know yeah yeah. Also. It reminds me of another one of my favorite athletes, nor mcgregor in uh in the ufc. I remember he lost, I think, for the the first time in the us and his coach said we do two things: either we win or we learn right. Those are your two options right and you’ll, so you win every way. Yeah. You know you always win spiritually and when I look when I look back upon my uh, this last deal just did 110 million. We lost the deal before that, but it was. The losing of that deal was a deal near trump’s place in doral Florida. We lost it and my wife kim who is the genius when it comes to real estate. She found the steel right next to her house in Phoenix. You know – and she just put 110 million bucks in her pocket, but if he hadn’t made the mistake, she’d never have made it you’re right and that’s why I have this huge chip on my shoulder against school teachers, because my whole family of school teachers they cannot control this or this and it affects what they do and what they also well, you need job security. Now you must have a pension, you know, and it’s because this is dead right. They have no confidence in themselves that they don’t trust and there’s a god out there, there’s something better for you to do so anyway. That’S that’s why i’ve been on my first book ever george was: if you want to be rich and happy, don’t go to school, just because it’s just because they they pounded me for being stupid. Constantly I just kept making mistakes. Remember the teacher said I said: why do I have an f on this paper? I flunked I flunked out of high school twice in English because I can’t write, but it wasn’t that I couldn’t write because I couldn’t spell now we have spell check and all that stuff. You know I said: well, it’s a very creative person who can’t spell a word three to three or four different ways: don’t give me a nap imagination right either an entrepreneur you’re not the entrepreneur’s got to have that spirit. Yeah, all right. So let’s hear the story of bitcoin: how did you stumble across that? I know you’ve become very bullish on it. What’S the back story there? Well, it’s the same as anything else. If you don’t understand it buy a little of it. Does that mean I mean, and I and I talk to guys like talk to guys your age, especially like I talked to Anthony compliant and all these other characters. You know peter schiff hates bitcoin, so I talked to him also. You know I just get the different points of view on it and finally, it was Anthony compliant who just said well, I said: what do you think about it find out? I said, that’s same advice, I’d give anybody, so I bought it at. I think. 9. 000. A coin is stacked up on it, and now I wish I bought more. Thats how you learned. You know what I mean it’s, how do you learn to play golf? Well, you buy a golf club and in the golf ball and they go out there and putts around for a while, but most people never buy the golf club or the golf ball. You know they take lessons, know that they practice. So it’s not that I’m an expert on bitcoin, but I now can talk to guys who know something about bitcoin yeah. But you get the concept you get. You get the concept and – and you put it into terms that just everyone gets intuitively and what I mean by that is remember when we were out at the red pill expo and you were on stage and uh. You were talking about gold and bitcoin, and you said that gold is god’s money and bitcoin is the people’s money correct? What do you mean by that? Well, gold and silver have been here since the earth was formed and I’ve started two. I started a gold mining company in China and they took it and I started a solar mining company in Argentina still have that one, but they’re there they’re here in the earth and they’re getting more scarce because of um counterparty. I mean the countries don’t want. Its getting harder and harder to mine that stuff right. So the reason I like bitcoin is because I’m anti the fed. I think that you know the fed is the fed, is an organization that takes from the poor and gives to the rich. So that’s why the stock market is so high. I think that’s criminal, so I counter that by teaching people about money, I’m not going to change the fed that my opening statement was who gives the [__] what the fed is doing. What are you going to do about it? Well, that was my thing you know so with me. Once I understood who the fed was from Vietnam, I’ve been buying gold and silver for years. Is I don’t trust the fed, but I’m doing something about it and a lot of the people. You know at the red pill, we’re trying to change the fit good luck. Yeah? Yes, I changed my ex-wife’s mind about me. [Laughter, ], that’s a good analogy yeah! So I but one thing that fascinates me about what you do and how you’ve been so successful and I think every entrepreneur has to learn this skill set and maybe every everyone that makes a lot of money has to learn the skill set. And that’s you have to recognize what you don’t know and you have to recognize your strengths and your weaknesses. And then you have to surround yourself with individuals who are better at certain things or maybe even much better than you are. And then you have to leverage their skill sets to make you more money right and up. A very easy example that most people will recognize is just this last thing that I’ve done with uh rebel capitals are and that’s the investment membership site. I have but listen, I’m like you, I almost flunked out of high school. You actually achieved it so you’re doing better you, you got the job done, but uh I’m by no means you know a researcher. I would be a disaster at that. So what I did is, I said: okay, I need to team up with someone like Lynn alden, who have me by 100 iq points on a bad day and because she’s she’s a genius at the research component of it, and then I need to bring on someone Like Chris McIntosh, that’s forgotten more about investing than I’ll ever know and and bring him part of the team. So I can leverage their skills to make this product a lot better and bring in a lot more revenue. But you’ve done the exact same thing. So maybe tell us the story of how that how you came to that conclusion and how you’ve been able to do it so well. Well, when I was a kid I started working on my rich dad when I was nine, I had to work for him for free. He said you work for free, because if I pay you to think, like an employee, so I worked for free, but one of the bennies of working for free. I got to sit in on these monthly Saturday breakfast meetings and at this Saturday meetings he had his accountant’s attorney, his bankers, real estate agent, his the general managers and all this, and they all sat there, and he said this is my problem and they’d all chip In and tell them how to solve this problem, so the banker had one idea: the accountant had one idea: the attorney had another idea and all this so I realized then, that capitalism is really a team sport in school. They tell you if you do that it’s called cheating. So when I went home and I’m 9 or 10 years old, here’s my poor dad a phd from Stanford university of Chicago in northwestern he’s trying to solve how to you know he’s 300 short for the month. Right and he sits there by himself, because that’s what academics do they sit there and they study by themselves and my rich dad said this is my problem. Give me a give me some ideas, and so he pulled it in for his team. So today you know if you look at the rich debt advisors books like Kenny mcelroy is my expert on real estate. He knows more about real estate than I will ever know but i counter him with my tax guy with my attorneys and all the other guys that make the thing work. You see, it’s called synergy. You know when there’s four asset classes: there’s business real estate paper, which are stock, sponsor mutual fund savings, and then this commodity is gold and silver, and most people are only in the paper. They have a 401k, an elf or a mutual fund. But what you’re doing is a synergy of business, real estate, paper and commodities. It’S the synergy that makes it work but to have a synergy to make it work. You have to have a team, because you can’t know everything, so the average person only has a financial planner at the most, who is only one vested interest is to sell you something right and the reason I knew that so well was in 74, when I Got out of the marine corps, I got a job with xerox because I had to learn how to sell I’m a very shy person, so my registered says: if you, if you can’t sell you’ll, never be an entrepreneur. So it was a skill. So I got a job with xerox, in downtown Honolulu and and that year 74 was when the 401k came out, so suddenly they’re recruiting anybody who could fog a mirror to push these things called 401ks right or something like that. You know I don’t quite remember so. I’D go to these just like you, I’d, be curious. I’D go and find out what all these different financial planning companies were saying and all this stuff. So I sit in the audience and say we’re looking for guys who can sell, so they were pitching this 401k and I sat there and I was already making money in real estate and the 401k made no sense to me at all. It made no sense to me now if I hadn’t done real estate prior to that, I might have got sucked in you’re right. That makes sense to you, but because I had a different way of solving my financial challenges and solutions and all this stuff. So the trouble with a 401k is, if you lose everything you haven’t learned anything yeah. You know when I lose a piece of real estate. I got a lot smarter and when I lose a business, I’ve gotten a lot smarter because I’m actively involved in it. Whereas when people lose everything in the stock market, they really haven’t learned anything yeah, it’s almost like gold, silver and bitcoin. You haven’t really done anything to create the asset, but when you’re in a business or you’re creating you know, you know creating real estate and all this you’re active you’re, an active learner, you’re actually participating in the process of creating the asset. So that’s why, when somebody says to go to school, get a job work, hard, save money and put your money in a 401k, not learning anything financially and I have a team. I have the smartest team I can find because that’s how I get rich, because it’s called synergy, you know results beyond the ordinary and it’s almost spiritual. You know my team comes together. You know, because I trust these guys with my heart – everything we trust each other and my and my doctor and my doctors are part of the team, because I’m gon na say that I was just gon na say about when we, when we met for lunch. The other day and you had your whole crew around there and you’ve got your doctor. I mean people don’t understand how far you take the concept of teams and then you know it says health wealth that happens. It comes down to those three things: I’m very proactive on health, wealth and happiness, and that’s the difference and most people are passive Jeremy. They go see their doctor once a year for an annual checkup. Well, I see my doctor twice a week. Its not that I need to, but it’s part of the process so she’s always checking me. You know blood blood tests, monitoring it it’s no different than looking at your financials yeah. That’S that’s! Thats a really interesting concept too! Thats uh, but you know when you’re talking. What was going through my mind is a question, probably the question I get the most and it’s that they’re already stuck in a 401k and they don’t know what to do. They’re, like okay, I’ve stumbled across what your your YouTube channel or I’ve stumbled across the the rich dad channel or one of Robert’s books. I get it, but I’m 50 years old I’ve got a wife or I’ve got a husband. I’Ve got kids they’re in private school. I’Ve got this 401k. If I take the money out, I’m going to get this huge tax hit and since my employer is matching it to such a great degree, if I don’t have a choice. I’M stuck I’m between a rock and a hard place where I just have to keep doing exactly what I’ve done, although now I my eyes have been opened and I’m sure you get that question constantly. So how do you typically answer that question? Well, that’s a it’s! A complex question, but the reason I love YouTube, even though they shut me down in times is, is that they have some great teachers under you know I mean – and I listen to both sides like there’s this guy Richard wolf or something he’s a hardcore yeah. The Marxist yeah, I actually interviewed him, you interviewed him yeah yeah he’s actually a really nice guy. Yeah, drives me crazy, but I’ve listened to him twice now, but I’m finally understanding where we agree on things. So the beauty of youtube – and this page, where, when you can get more and more information, but before you change your 401k, you better figure out what you want to be good at. So, what you did was you know. I wanted to be an investor and I want to be an entrepreneur. Thats a whole different educational process. Oh, yeah, that’s like that’s why I was saying that when I, when I met you in person, you’re always so curious and most people are superficial, how’s, the weather, how the kids and all this I just want to know. What did you know about this? We never stopped talking about what we saw going on and sharing knowledge and all this stuff, whereas most people are passive on their learning and if you’re going to be passive stay with the 401k. Thats all right, that’s it! But if you’re going to go down that rabbit hole, it’s a big rabbit hole. A lot of people never come back, yeah yeah, but I think the main takeaway is just to if you think something can’t be done, figure out a way to get it done. I mean people, ask me what the secret is of of being an entrepreneur, and I say: well, it’s tough, but if you have to narrow it down to a couple things number one would be. You got to solve problems. You have to be able to solve problems and you got to be able to manage people and uh. You know, but it starts with that problem. Solving component and most people – I just I see them in you – know family members and friends, and it’s just they’ve got the football game on Saturday. They’Ve got to take the kids to soccer practice and it just seems like too big of a hurdle. So they end up just shrugging their shoulders, giving up and then rationalizing their decisions. Correct – and I think it’s all about mindset – and it goes back to that little – that little chart that you had that piece of paper and people they have to start visualizing success first and foremost, and then taking action, taking action and not worrying about whether or not You’re making a mistake, because even if you do make a mistake, you’re winning because you’re learning from that and getting a step closer to your end goal, I think that’s the main takeaway yep and you know that’s like I’m very shy. I couldn’t sell and all this, and so that’s on my rich dad, so I could go fly for the airlines. You know big deal. I hate it, but anyway, or you’ll be an entrepreneur, learn how to sell. So I go like I got a job with xerox and immediately I start to fail because I can’t sell and if you can’t sell you don’t eat right and so I go and then they’re gon na fire. You they keep you for so long and then you basically boot you out. So I saw my rich daddy because I said I’m failing so he asked me. One question says how many sales calls do you make a day? You know, as I said on a good day three, he says: that’s why you’re failing because you’re not failing fast enough what right it’s the opposite of my rich dad, my poor, dad, the school teacher. Don’T make any mistakes. My [__] says you’re not making enough mistakes and that’s the difference there. So he says to find a way you can fail faster. So I found this non-profit charity and they were looking for guys who would dial for dollars. I said: well, that’s a good way. I can fail faster, so I would leave downtown Honolulu and I’d go up the street to this charity and just sit there. They put you in front of this phone bank and i dial for i dial for charity dollars and my goal was to get turned down. 30 times a night, [Laughter], you know, George there’s nothing if, if you’re shy, rejection is ten times worse. If you don’t, I mean this is horrifying, so I’d sit there and I’d dial. No, but ironically, my sales at xerox went up. Mm-Hmm did I make those uh the emotion of getting rejection, rejection after rejection, and then you know the physical and spiritual. So when, when people ask me, you know how did how did an ugly guy like you to meet him, I mean I get asked that a lot. What the [__] she doing with you, but it works. So you can ask her. She says you never stopped asking. I asked her ten. You know, then, in sales to teach you good ass. Ten different ways tend to you know this way. That way, this way I just kept asking her and finally one night she said she says I have a boyfriend said. I don’t care. I said I’m not looking to get married. I just want you to go out with me one night and after like six months. Oh, this is the worst part about it, so I couldn’t figure it out. So every salesman knows you better ask for a referral, so I said I better find out who her friends are. So I found out who her friends are and I talked to the people. She worked with and said: well do you know who our best friend is? Who kim’s best friend is? I said no kim’s best friend. Is your ex-girlfriend really what yeah Karen is her best friend, so the only problem was karen hated me [Laughter, ], not a good referral charge. I had to then kind of make amends with karen. You know so. Oh, wow, on the phone talking to caches, get away. You scumbag, you lying dog, you! You know you, you know, I would never recommend you to anybody and all this enough, so that once Karen says, okay I’ll put in the good word for you. She says I said: what is it going to be? She says. Well, she says you’re not boring. I said okay, good good, that that works. You know so karen calls kim her best friend and so kim says: okay I’ll go out with you once it took six months, [Laughter] and went out that one night we’ve been together ever since yeah, but I think that’s where people quit and it’s it’s Easy to quit, you know what I mean. Its easy anybody can quit but to keep going like tiger, did you know to keep going to come back and win is spiritual? Thats the difference! There. You go great great great stories, Robert man, that was such an awesome conversation. I always enjoy it so much. Its always just an honor to get the opportunity to sit down and talk to you, whether it’s over zoom like this or at dinner, so uh for all my viewers who want to find out more about what you do. I’Ve been referring a lot of people to your YouTube channel. Should they go over there to your website? What would you suggest? Thats the best place, because we’re kind of trapped this rums now you know so uh, that’s good. So probably the YouTube channel is the best yeah. Thats where I’m most active right now: okay, yeah! So that’s the, I believe, yeah, because I’m actually I’m still doing my seminars, but in one day I did one in Europe, one in Mexico and one in China. It’S it’s really. You know, there’s always something good out of something: bad, yeah, glass, half full! Thats right! It doesn’t stop you, okay! So it’s my pleasure too George! Thats why I started with. I was. I just noticed you when we’re not on these calls. You’re always curious, always asking always wanting to learn and there’s other people, as you know, we go out with and we talk about the weather and that’s fine too or politics, which is a waste of time, but it’s. This is more fascinating. It’S how we learn how we get ahead. How do we support other people? Thats what’s exciting, absolutely all right buddy! Well, I appreciate your time. I cannot wait to do it again. Thank you, George appreciate it.
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