TGCI 76: How to come back from $50M loss?

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Episode 76: How to come back from $50M loss?

Copy of EP #18 - 2 Guests

Summary

In today’s show, Pancham interviews Rod Khleif – an entrepreneur, multiple business owner, philanthropist, real estate investor, and host of The Lifetime CashFlow Through Real Estate Podcast.

Rod Khleif had lost $50,000,000 in real estate when the 2008 market crash happened. He can’t do anything about it and could only change one thing: his mindset. He started once again from the bottom, redirected his focus, and has now built multi-million dollar businesses!

In today’s show, Rod will walk us through how to utilize your goals to become a source of your encouragement. He will also share his approach in real estate businesses and true happiness from his acts of service. 

 

Need help on where to focus your mindset? Or do you need help to set goals that could effectively drive you? Well, this episode is for you! Enjoy!

PanchamHeadshotTGCI
Pancham Gupta
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Rod Khleif

Tune in to this show and enjoy!

Copy of Quote #00 - 1 Guest (1)

Timestamped Shownotes:

  • 2:18 – Pancham introduces Rod Khleif to the show
  • 3:32 – How he got into real estate investing
  • 6:35 – The shift in his mindset from losing his assets to redirecting his goals
  • 11:47 – A live goal-setting workshop to help fuel your motivation
  • 20:25 – The power of visualizing your goals
  • 26:34 – Seeking happiness by giving back
  • 32:12 – Why he focuses on investing in multifamily properties
  • 38:19 – How gratitude attributed to his success
  • 42:57 – Taking the Leap Round
  • 42:57 – His first investment outside Wall Street
  • 43:05 – How he overcame limiting beliefs
  • 43:46 – One investment that did not go as expected
  • 44:31 – Why investors should invest in hard assets
  • 48:00 – Rod’s contact information

3 Key Points:

    1. Learn where you should direct your focus.
    2. Don’t fear what could happen. Instead, it is something that needs to be prepared for. 
    3. Investing in multifamily properties to guarantee cashflow

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Read Full Transcript

Introduction

Welcome to The Gold Collar Investor Podcast with your host, Pancham Gupta. This podcast is dedicated to helping high-paid professionals to break out of Wall Street investments and create multiple income streams. Here is your host, Pancham Gupta.

Hi, this is Joe Fairless. If you wanna diversify out of Wall Street investments, then listen to The Gold Collar Investor Podcast.

Hey, this is Mauricio Rauld, founder and CEO of Premier Law Group and if you are serious about investing in real estate, listen to The Gold Collar Investor podcast with Pancham Gupta.

 

Robert: Hi, there. I’m Robert Helms, host of The Real Estate Guys Radio Program and if you want to have better results in your life, you gotta put better ideas in your mind. You’re in the right place here at The Gold Collar Investor Podcast.

 

Pancham: Welcome to The Gold Collar Investor Podcast. This is your host, Pancham. Really appreciate you for tuning in today. We recently completed one year of this podcast since we’ve launched. I truly want to say thank you to everyone who’ve tuned in, given me feedback, left a review. Thank you, thank you so much. I never thought that it would be such an exciting journey to actually do this podcast and I had talked to these guests and invited them and learned from them and also shared the knowledge that they have with everyone who’s tuning in. Thank you so much.

 

So, today, we have a really, really good episode again for you and this is — I’ll start with this quote from Winston Churchill. He says, “Success is the ability to go from failure to failure without losing your enthusiasm.” The US is the land of opportunities. People from around the world immigrate to the US in the pursuit of happiness and success. There are many opportunities for people who are willing to work hard. However, success without fulfillment and happiness can sometimes feel empty, you know, the void. You can feel that void. If you are working with a purpose and passion, then you enjoy the journey to have all the success you want a lot more. We have a story here for you today that will inspire you. Imagine that you immigrate to this country as a child and then not having enough to eat three times a day to going to build multimillion dollar businesses to losing it all in the 2008 crash, then building it back up again with passion and purpose. My guest today is Rod Khleif. Before I bring Rod on, let me talk about his background.

 

Rod is a multiple business owner, philanthropist who is passionate about entrepreneurship and giving back. Rod rose from humble beginnings as a young, impoverished Dutch immigrant to triumphs and spectacular failures which he affectionately calls “seminars.” Rod will explain the mindset required to recover from losing $50 million in the crash of 2008 to the success he enjoys today. Rod brings incredible authenticity and insight to his approach to real estate business success and life.

 

Hey, Rod. Welcome to the show.

 

Rod: Glad to be here, my friend. Let’s have some fun today.

 

Pancham: It’s an honor to have you on the show. I’ve been listening to your podcast. It’s an amazing, amazing thing that you’re doing. So, before we begin, are you ready to fire up my listeners break out of Wall Street investments?

 

Rod: Listen, if they’re not fired up after this episode, they better just go home and go to bed. That’s all I can tell you.

 

Pancham: Love it. Absolutely love it. So, Rod, tell our listeners about your background, how you — I know you immigrated to this country, and, more importantly, the person behind that background.

 

Rod: Sure, sure. Great question. Yeah, so, I immigrated to this country, like you did. I was six years old. I was born in the Netherlands, in Holland, and came over with my mother, [inaudible 00:03:50] and my brother, Albert, and we ended up in Denver, Colorado, where I lived for 30 years and we struggled. We struggled a lot when I was younger particularly. In fact, I wore secondhand clothes from the Goodwill and the Salvation Army all the way through junior high school ’til I lied about my age when I was 14 and got a job at Burger King so I could go buy my own clothes. And then, you know, we ate expired food ’cause it was half price, you know, my mom gave us powdered milk ’cause she thought milk was healthy at the time and — you know, I will say this. I’m sure you’ve got listeners that have had it harder than I did or maybe have it harder now with all this COVID craziness going on, but, at that time, I knew I wanted more and, luckily, my mom was a bit of an entrepreneur and she babysat kids so we’d have enough money to eat. With her babysitting money, you know, she invested in the stock market and when I was 14, she bought the house across the street from us, with her babysitting money, for about $30,000. Now, when I was 17, she told me that she’d made $20,000 in her sleep, that it had gone up in value $20,000 and I said, “What? Forget college, I’m doing real estate. I’m gonna be rich in real estate.” So, you know, I went and got my real estate broker’s license literally right after I turned 18. You know, you can be an agent, you can be a broker. Well, back then, you could be a broker just with education. Now, they’ve got smart and you have to have some experience first but I was a broker right when I turned 18 and, you know, I was gonna be rich. Well, my first year in real estate, I maybe made about $8,000, my second year maybe $10,000, but my third year, I made over $100,000, and this was back in 1981. That was pretty good money, especially for a 21-year-old. So, what happened between year 2 and year 3 that caused me 10x my income? Well, what happened was I met a guy that taught me about the psychology of success and how truly 80 to 90 percent of your success in anything is your mindset and your psychology. It’s not the vehicle. It’s not the real estate, multifamily real estate, stock market, whatever it is, entrepreneurship. It’s the mindset. And, you know, fast forward to today, I’ve owned over 2,000 houses that I’ve rented long term. I’ve had multiple apartment complexes that I’ve owned. I’ve built 24 businesses and, you know, in 2006, from my real estate portfolio, my net worth went up $17 million while I slept and you’re thinking, “Oh, that’s really impressive,” and I did too, okay? I thought I was a freaking real estate god. My head got so big I could barely fit it through a door, and you know when that happens, God, the universe, whatever you believe will give you a nice little smack down. Well, that was 2008 for me. I lost that $17 million and a lot more. I lost $50 million in 2008 —

 

Pancham: Oh, man.

 

Rod: Yeah, yeah, and — ’cause I thought I was set for life and so one of the things that I enjoy talking about is the mindset it took to have that much to lose in the first place, but then the mindset it took to recover from that, to get back to the success that I’m blessed to enjoy today. I am happy to drill down on that with you if you’d like.

 

Pancham: Absolutely. I wanna understand like what really was running in your head after that massive loss and how did you actually stage a comeback after that kind of loss?

 

Rod: Yeah. Well, it’s a very important question and, you know, and I will tell you. There are a lot of people right now in this day and age that are suffering with what’s happening in the economy and the massive unemployment and maybe you need to pivot or innovate right now. I know I had to. We were scheduled, you know, I’ll answer your question but I wanna mention this as well. We were scheduled to have 800 people at a live event in Orlando in May. We all know what happened with that, so I had to pivot and we took it virtual, if you go to multifamilyvirtualbootcamp.com, you’ll see me with my phone recording the video on that website. We threw it up in 2 days and I had 900 people attend that livestream event. It was the largest event we ever had, but I had to innovate or pivot so if you’re listening right now and you’re in that place where you know you need to do something, maybe you lost your job, maybe your business is suffering, whatever it is, you know, recognize that some of the largest companies in the world were formed in times like this, in contraction, and I believe we’re headed for a bit of a contraction here. In fact, maybe even a crash, and that’s not something to fear but it is something to prepare for.

 

So, you know, again, back then, Pancham, I thought I was set for life. I thought 80 million baby boomers — see, my properties were in Florida and my line was 80 million baby boomers are getting old and getting cold, okay, so they’re moving to Florida, right? Well, I was just a little ahead of my time, I think, you know, ’cause we were ground zero for the contraction. And, you know, what went through my head was dismay and pain and suffering and fear and everything else but, you know, luckily, I’ve spent a lot of time around mindset experts like Tony Robbins, I spent 20 years following him around the planet, and so, you know, it’s kinda hard to focus on the negative when you’re around him a lot and that really is what, you know, the secret to this. The secret to this and the secret to where we are right now is to manage your focus and focus on what you want, not what you don’t want. Get very tuned into what you want. It’s so easy today with all the craziness going on to focus on — don’t get me started on the freaking media, CNN and I mean, just the fake news. Don’t get me started on that, but the point is it’s so easy to get caught up in all that and the news isn’t there to inform us, it’s there to scare us, it’s there to startle us and so that’s the important thing to remember. It’s so important right now to put guards up around your mind, not bring in the negative stuff. Like you mentioned before we started recording, Pancham, I do a clip every week called Own Your Power. It’s a motivational clip, whether you want to do multifamily real estate or not, they’re very — I mean, I get a lot of great feedback about them and — like you gave me this morning, and so, you know, bring that stuff in. You know, go on YouTube and search the motivational stuff. Stay off CNN and Fox. Just bring in the good stuff, because, right now, listen, if you’re listening to this podcast, you’re a leader. There’s no question you’re a leader and maybe you lead a team at work, maybe you just lead your family. But right now, the world needs leaders and to be a leader, you have to direct your focus. You have to focus on what you want because it’s easy in today’s day and age — we actually connect through negativity. You know, if you came up to me, Pancham, and said, “How you doing?” I said, “Oh, my God, I’m amazing! It’s fantastic! Life is so amazing!” you’d probably take three steps back and ask yourself if I’m off my meds, but if you asked me how I was doing and I said, “Oh, man, my back is freaking killing me,” you’d put your arm around me and say, “Yeah, I feel you, brother.” That’s how we connect, and right now, your focus is so important. I have people call me and say, you know, bemoan that they need to get out of student loan debt and I say, listen, wrong statement. You need to make enough money so the debt is irrelevant, ’cause, again, whatever you focus on gets bigger. They asked Mother Teresa if she was antiwar, she said, “No, I’m pro-peace,” and so focus is so important right now. So that’s what I did back then, is I redirected my focus. I got re-associated with what I wanted and, more importantly, why I wanted it and, you know, I’m back. I’m back squared.

 

Pancham: I remember your story like you were saying, you know, at some point in time that you went into this — you had all this money and you were not fulfilled enough and then you started giving and, you know, you wanna touch on that, like —

 

Rod: If you don’t mind, before I do that —

 

Pancham: Yeah.

 

Rod: — let me talk about the real process that I utilized to get back. It will round that out, your question, I will answer it, I promise. At my live events and now I do these livestream events and if you’re interested in multifamily, for God’s sakes, come spend a couple days with me. I don’t sell anything at my events and just text RodLive to 41411. I’m doing them every 3 or 4 months, but I’ve got one coming up next week and I’m sure this won’t go live by then, so just text RodLive to 41411. I do these 2-day boot camps and I’m not selling anything. It’s 16 hours of training. But the first thing we do at that event and the first thing we used to do at my live events was we did this goal setting workshop, but really goal setting on steroids, so if you’ll humor me, Pancham, I’d like to just quickly describe the process ’cause I think it would really add value to your listeners —

 

Pancham: Absolutely, go ahead. I’m big in goal settings myself.

 

Rod: Alright, perfect, perfect. Alright, so, guys, if you have an opportunity to take some notes, please do that but I’m gonna take you through it kinda quick, so what you wanna do is pick an hour when you have a lot of energy and you sit down and write down everything you could ever possibly want in life. Make sure you’re hydrated, by the way. In fact, let me get a drink while I say that.

 

Pancham: Yeah.

 

Rod: And make sure you’re hydrated ’cause energy is really important for this but sit down and write down everything you could ever possibly want in life. All the stuff. The houses, the cars, boats, jet skis, planes, motorcycles, jewelry, clothing, whatever it is, write it down, and there’s nothing wrong with stuff. That’s what motivates us, okay? So write it all down. Write down, you know, how much money you want in the bank in a few years and then how much you want maybe in 10 years. Write down how much cash flow you want from your investments say in 3 years and in 10 years. Write down everything you wanna do. You know, every place you wanna travel. I’ve got a travel vision board behind me here. Where do you wanna go? You know, maybe you wanna climb every mountain over 14,000 feet or write a book. Write down — you know, maybe you wanna jump out of a perfectly good airplane. I did that about 8 months ago and I’ll never freaking do it again but it’s off the list. Write it down. What you wanna do. By the way, take the lid off your brain because when you write something down that you want and you associate with it, it triggers something in your brain called your reticular activating system and what that is is it’s a subconscious filter. You’re not conscious of it, it’s a subconscious filter that points you in the direction your brain thinks you’re interested in. The greatest example is when you first buy a vehicle, you never really notice them and you buy it and you see ’em everywhere. Were they there before? Of course they were, and so that’s your reticular activating system and so take the lid off your brain. Imagine if you write it down, you’re gonna get it which is not outside the realm of reality so, you know, that starts the process so if you want a private island, a jet, you know, a yacht, whatever it is, write it down, okay? Very important.

 

Now, you also write down everything you wanna learn in this lifetime. It’s not just the stuff and the things you wanna do. Write down what you wanna learn. Maybe you wanna learn a foreign language. Maybe you wanna learn a skill. If it’s multifamily, for God’s sakes, come spend a couple days with me, but whatever it is, write it down. You know, whatever that skill is or that knowledge. And lastly, write down who you wanna help. You know, we will do more for others than we’ll ever do for ourselves and you wanna use this. Why are we doing this? Because this is what’s gonna get you to take action on your dreams, guys. Okay, this is what gets you to get up early and stay up late and do whatever it takes to make it happen for yourselves and so write down who you wanna help, like I bought my parents a house here when my dad was alive on a canal here in Florida, bought ’em a car, took ’em on cruises. You know, who do you wanna do something for? Use that. Write it down. And once you can’t think of another thing, there’s a couple more steps. I need you now to write a number by each goal how many years it’s gonna take you to achieve it ’cause it’s not real ’til it’s measurable so put a number by each goal and I know you have a lot of analytical listeners on your show. Guys, now, as you’re writing down your goals, do not stop and think about them. Just write them down and keep writing, okay? You can always scratch them out later and the same thing applies to the time limit you’re putting on your goal. Don’t overthink this. Just throw a number down there, okay? One, three, five, ten, even twenty, okay? But remember this, as human beings, we will overestimate what we can do in a year and massively underestimate what we can do in 5, 10, 20 years, okay? I’ll give you an example of this and please let me pre-frame this by saying this is not me bragging. My only intention for giving you some of these personal examples of mine is to motivate you and inspire you. That’s it, ’cause most of these things don’t even interest me anymore, but back when I lived in Denver, I knew I always wanted to live on the beach and there’s no beach in Denver, okay? And so, you know, I would visualize the sand and the waves and the surf and the palm trees and all of that and what’s crazy is 20 years later, I built this incredible mansion on the beach. I mean, 10,000 square foot, $8 million, I mean, magnificent home. I had the beach on one side. It was called Gulf to Bay, I had my boathouses on the backside. It’s like a slice through an island. I mean, this house is unbelievable. It was unthinkable when I was 18 and the reason I’m bringing that up again is to have you take the lid off your brain. Whatever it is, write it down if you want it.

 

I mean, look at Elon Musk. $3 billion startups, okay? Come on, you can do anything you want, you just have to make a decision and go make it happen, okay? And I use him as an example ’cause I think you have a lot of IT people on your show. Hopefully that’s not a negative example, but, anyway, he’s one of my heroes. I mean, anybody — you know, you do it once, that’s awesome. Do it twice, that’s really amazing. Three times? Come on. Anyway, so you’ve got a time limit on each goal and I want you to pick your number one goal. That goal that when you get it, you’re like, oh my God. I mean, it makes all the other goals irrelevant if you get this one goal. It’s like unbelievable. Put that on another piece of paper. Then pick your top 3 one-year goals. Put those on a separate sheet of paper. And leave some room in between them. Now, at this point, you are ahead of 99.99 percent of the people on the planet that do a New Year’s resolution that’s forgotten by February or March but there’s a couple more quick steps. The goals are important. The goals will drive you. They will push you, pull you. They’re very, very effective in motivating you. But it’s the reason why those goals are an absolute must that’s the real fuel, okay? So you need to write a paragraph under each goal why it has to happen, okay? And you wanna use emotionally charged words like “amazing,” “incredible,” “beautiful,” “unbelievable” because words are incredibly powerful and you wanna use them so you might say, you know, so I can show my kids what amazing success looks like, so I can show my wife what it means to live, you know, the life of our dreams, you know, or my husband, so we can, you know, have the freedom to do whatever we want whenever we want wherever we want, bring whoever we want, you know? So, write down what’s gonna juice you, okay? And, again, use emotionally charged words. After you’ve done a positive reason why each goal, I want you to take one little step further and put some pain in there. Put some pain if you don’t achieve the goal and make it freaking painful. Here’s why. Because as human beings, we’ll do more to avoid pain than gain pleasure and you wanna use this. Again, this is what’s gonna get you to push through any limiting beliefs that you might have about yourself, to push through any fear that you might have about yourself. Maybe you’re comfortable and the comfort zone’s a warm place but nothing freaking grows there and you need to get outside that comfort zone to build the life you really want and the why is what will cause that to happen. The why is what got me out from underneath a rock in ’08 when I lost everything to focus on what I wanted again and just go and make it happen again, no big deal. You know, I will tell you, if you fear failure, big mistake. Fear regret. Regret is much worse than failure. Honestly, we fail our way to success. Any huge success has always failed multiple times. You know, I met Sara Blakely. Those of you women know who she is. She owns Spanx, the billionaire owner of Spanx, the women’s undergarment. You know, started with $5,000, she’s a freaking gazillionaire and I mean multibillionaire for sure, and she was on the cover of Forbes last year. Anyway, beautiful human being but she told me something that was really cool and it relates to failure. She said her dad at the dinner table used to ask her, “What have you failed at today?” Is that an awesome question to ask your kid so they don’t fear failure? I love it —

 

Pancham: Amazing question. I am a big, big fan of that. I do little segments too and I talk about this failure part so much. It’s a stepping stone to success. It’s not something to avoid, it’s something to —

 

Rod: We fail our way to success, that’s right, that’s right. So, anyway, so you’ve got your positive and negative reasons why so put some pain in there like I said, so I don’t feel like a failure, so I don’t fail my kids, so I don’t fail my husband or wife, so I don’t live a life of regret and, again, make it painful. There was a nurse in Australia, Pancham, named Bronnie Ware and she was a hospice nurse that helped patients at the end of their lives and she asked them a question, and that question was, “Do you have any regrets?” She even wrote a book about it, it’s called The Five Regrets of Dying. You wanna know what the number one regret was on her list that she got from people which it was not living the life I could have lived —

 

Pancham: Exactly.

 

Rod: — living someone else’s life. You know, not doing what I’m capable of. Guys, screw that, okay? We do not want that. We don’t want or need that kind of regret. So this is the fuel to keep it from happening. Alright, so you’ve got your positive and negative reasons why. There’s just one more thing. You must get pictures of your goals and put them around you, because you can manifest these things into your life and I know some of you analyticals are going, “Oh, for God’s sakes, get on with the real estate.” I’m here to tell you that this is more freaking important than the real estate, okay? This is 80 to 90 percent of your success, period. And not just in business, in your relationships, in life, period. So, go get pictures, but let me give you some examples of people that manifested things in their lives because they got pictures so they declared it. A great one is Jim Carrey. Jim Carrey wrote himself a check when he was flat broke for $10 million. Google it, Jim Carrey check. Wrote himself that check, he used to sit up by the Hollywood sign and he would look at it when he was broke and he visualized cashing it. That’s how much money he made for Dumb and Dumber. He buried the check with his father ’cause his father really believed in his dream. Second example, more recent example. Demi Lovato, when nobody knew her 10 years ago, posted on social media, “One day I’m gonna sing in the Super Bowl.” Go see who sung the national anthem in the last Super Bowl, okay? 

 

I’ll give you some personal examples. Back when I was, you know, 18, I got my real estate broker’s license, I was gonna be rich selling other people houses. But I figured I had to have a four-door car to show people houses, right? So I got this bone ugly Ford four-door Granada. I mean, bench seat in the front, just the ugliest piece of you know what you’ve ever seen. But what’s interesting is I worked with a guy, the guy I was telling you about actually that owned a couple of Corvettes and he let me drive one and that’s a key piece, guys, okay? If there’s something you want, go experience it. Go test drive the car. Go to the open house of a house like the house you want. You know, like for me, back in February, Valentine’s Day, I took my wife to Miami, stayed in a nice hotel and we went to the Miami Yacht Show, okay? And I BS’ed my way on to these 200-foot yachts because I took my wife to the Amalfi Coast and I don’t know if you’ve ever been there in the southern part of Italy, it is —

 

Pancham: Been there, yeah, once.

 

Rod: Spectacular. You see all the yachts, just so inspiring and I told my wife, I said, “Baby, one day, we’re gonna rent a yacht or own a yacht, we’re gonna take it all the way from Spain and Portugal down around Italy, Greece, Croatia,” so that’s on my bucket list, okay? I mean, that’s one of my goals and so I BS’ed my way on to these 200-foot yachts pretending I was capable of buying one and, you know, sat in the captain’s chair and visualized owning it and walking around like I owned it. Why? Because it freaking works, okay? So, the guy let me test drive his — I mean, let me drive his Corvette. I’m like, oh, my God, this is amazing. This beats the hell out of my bone-ugly Granada, so I got a picture out of a magazine. This was before you could spell internet, okay? I’m 60 years old, this is a while back, okay? And I got a picture out of a magazine and I put it on the visor on my Granada, picture of a Corvette out of a magazine, put it on the visor of my Granada. Every time I sat in the car, it was right there in my face. Within a year or two, I had that Corvette. Couple more examples, again, let me pre-frame, I’m not bragging, I just wanna inspire you. This was back when the TV show Magnum P.I. was out. Actor’s name was Tom Selleck, okay? He was a detective, it was before you were born, Pancham. But, anyway, he drove this Ferrari 308 and that was the first time I’d ever seen an exotic car and I’m like, oh, my God, that’s amazing. So I got a picture of that actual Ferrari, put it on the visor of my corvette, within a year or two, I had a Maserati that looked just like it. Last example. I’m the guy that always wanted a Lamborghini. The minute I saw one, I’m like, man, I gotta have one of those. It was the Countach, it was the model back then but my son collected models of exotic cars. When he was 9 years old, he had like 30 or 40 of ’em. He had a model, the exact same color and style Lamborghini that I ended up getting, which I wrecked, but, anyway, so, guys, get pictures. Please. In fact, let me show you something. Do you put this on YouTube or just —

 

Pancham: Yes.

 

Rod: Okay. So this is my planner, okay? It’s on today, and in the back of this thing, I’ve got pictures that have been in here 20 years, okay? Now, what’s important to realize, literally, it used to be a Day-Timer, now it’s a Franklin Covey planner but these pictures in plastic have been in here 20 plus years. The first pictures are my gratitude pictures. Guys, everything starts from a place of gratitude. It’s foundational. It’s critical to achieving anything in life. So these are pictures of my kids when they were very young, okay? Then I’ve got pictures of the things that I wanted. I told you about that house on the beach, okay? It was spectacular. I had — 

 

Pancham: Wow.

 

Rod: — 10-foot high glass for 80 feet long, just like this picture before I ever built the house, okay? Travertine floors, just like in this picture, okay? Now I lost that house in all the craziness. Now I live in a compound. I’ve got six buildings, it’s, you know, incredible main house, big main house, I’ve got a two-bedroom guest house, I’ve actually got family there now, I’ve got another building, it’s a media building with a theater room and a wet bar and up above there’s a video studio that I’ve just built to do my video, you know, livestreams now that, you know, COVID, and because God’s got a sense of humor, literally across the bay is my old house on the beach that I lost. It’s really funny. But anyway, so — but what’s crazy, look at this, okay? See those bottom pictures, you guys can see the wall, the white wall in both those pictures. Those are two separate properties. See the white wall? This is a picture of my backyard. Look behind me.

 

Pancham: Wow.

 

Rod: Is that crazy? Just before I, you know, I ever got it. This stuff — and then, you know, stupid crap like watches, I’ve got a few hundred thousand dollars of watches and the Lamborghini before I ever got it, the Rolls, the Bentley, all the stuff that I got because I had pictures. Stuff that I thought was important. I don’t anymore, but the point is, get pictures and that will help manifest this stuff in your lives.

 

Pancham: Wow. That was powerful. Very, very powerful and, you know, big, big fan of visualization myself. I was a non-believer before, I’ll confess, but I’ve recently, like this year, I started really doing what you’re doing, not at that scale maybe, this is motivating me to get a planner like that one and put pictures in the —

 

Rod: Put pictures everywhere, Pancham. Put ’em on the wall. If you saw the walls around my office now, you’d see the pictures of things that matter to me now. I’ve got ’em screensaver. I’ve got a picture above my bed of a declaration that I made. My wife hates it but, you know, it works so, you know. Anyway.

 

Pancham: Yeah. This is awesome. Thank you so much for sharing that.

 

Rod: No, my pleasure. And let me say one thing ’cause you asked me the question about giving back and I wanna actually answer that question now because it ties into goals and that’s why I wanted to share this goal setting process first. So, I talked about that house that I built on the beach. I worked for that thing for 20 freaking years, okay? I mean, this house is amazing. Giant waterfall from the second floor balcony into the pool. You had to walk through the waterfall to get into the pool. I had tens of thousands of dollars’ worth of trees that I bought specially that bent out over the pool. I had big spiral staircase up through the middle of the house. You know, wine cellar, elevator, I mean — in fact, let me just share this. This will land the plane on this. On the second floor, I had this custom aquarium built that went around the spiral staircase, visible on both sides. The aquarium cost me somewhere between $150,000 or $200,000. I mean — So that gives you an idea of the house. Anyway, 2 months after I moved in, 2 months, worked for it for 20 years, 2 months after I moved in, I’m floating in the pool at night, pool’s changing colors, it’s got fiber optic lighting and I’m looking up at this testament to my ego, which is really what it was. It was to prove to the world that I was good enough. It was to prove to the world that I mattered. It’s embarrassing to admit that sometimes, but that’s the truth of it. And I’m looking up at this thing and I got really depressed and I’m like what the hell. I just achieved success, I’ve got the cars, I’ve got the boats, I’ve got this incredible house, and I — I mean, I was really bummed, not just a little bit. I mean, it was like scary bummed. And what I realized when I look back on it is there are several things happening and that’s what I wanna share with you in answer to your question. First one was, you know, I didn’t know what I was gonna do next. You know, if you’re gonna achieve a big goal, by God, you better have other goals lined up behind it because you gotta have a vision for the future. Like the good book says, without a vision, the people perish. I didn’t know what my vision was for the future, so that’s number one. Number two is it’s never about the goals. The goals are critical, but happiness comes from progress and growth.

 

Pancham: Exactly.

 

Rod: It doesn’t come from the goals. If you’re progressing and growing, you’ll be happy. You know, I take my students through this weekly planning process and one of the pieces is you have to acknowledge what you got done. Consciously. Pat yourself on the back. Rod, good job. Because you’re gonna have delays, you’re gonna have setbacks. But if you know you’re progressing and growing, you’re happy. But probably the one I wanna answer now, the third reason which relates to the question you asked. I had been totally focused on Rod. Rod, Rod, Rod. Show the world I’m good enough. Show the world I matter, and, luckily, you know, to get back, you know, to get my mojo back, I bought some books and I bought, you know, Think and Grow Rich and in fact — oh, no, I took it to my bed, I had it right here on my desk, I’m reading it again. That’s a book you should read three or four times, twice a year at least. Anyway, you know, Dale Carnegie, but I bought a Tony book, Tony Robbins, so I went and saw him. I was really impressed with the book and I saw that he fed families for the holidays and I’m like wow. That’s really cool and he’s done tens of millions. And, by the way, let me give him a shout-out. If you can see him live, just freaking do it. He is so good. Just do it. Trust me and, again, you know, I followed him around the planet for 20 years, I was so impressed with the technology and that’s really what saved me in ’08 was being around that, you know, who you hang out with is who you become and you wanna be around people that, you know, are thriving through tough times. Anyway, so I saw he was feeding people so I went back and I got my brother and I said let’s feed five families so this was in Denver ’cause I had gone to Denver for Thanksgiving to be with my family there and so we went to a church and said who really needs help and they gave us five families and the third family changed my life. I mean, I went up to this door and this woman — it was a shotgun house, just a piece of crap. It’s not even a one-bedroom. You walk through the living room, through the bedroom to get to the kitchen which was the bathroom off it. We gotta walk through the bedroom to get in and out of the house and she was there, single lady, her husband left her with five kids. So, we found out they had, you know, it was for Thanksgiving, we do it for Christmas now but we got a big box of food, frozen turkey, toys for the kids ’cause we found out she had kids and she sees the boxes of food on the porch and she comes out, starts crying, and her kids come out, the older one start crying, I start crying and I’m freaking hooked and so next year I did 50, next year I did a hundred and doubled it every year and I’m blessed to say we have now fed 85,000 children here for the holidays.

 

Pancham: Wow.

 

Rod: We’ve done tens and it’s not — please, please know it’s not me bragging. I’m just talking to inspire you. I’ve done tens of thousands of backpacks filled with school supplies for local children. It’s a travesty. We live in the greatest country on Earth and kids don’t have the basic supplies they need for school. I’ve done tens of thousands of teddy bears for officers — that I give to local police departments for officers to put in their vehicles if they encounter a child that’s been traumatized and so here’s what I wanna say to you listening, guys, you guys listening. Some of you I know are freaking hungry. You got blood dripping from your teeth, man, you want more and I know you want more. I’m here to tell you that you wanna give back now. Don’t say I’ll give back when I have more money or when I’ve achieved the success that I feel that I deserve. Do it now. Even if it’s just one family or an elderly person or whatever cause you believe in, the environment, kids, you know, the elderly, whatever it is, give back now because so many of us are achieving to be happy. It’s much faster and much more satisfying and much better to happily achieve. Not achieving to be happy, happily achieve and you happily achieve when you’re fulfilled in giving back so just give back now, don’t wait.

 

Pancham: Powerful.

 

Rod: Thank you.

 

Pancham: Love it. Absolutely love it. So, Rod, like before I move on to the second part of the show, I actually want to talk about like two questions with you. One is, switching gears a little bit, one is about multifamily, right? So, why did you pick that as an asset class for your thing and second sub-question to that one is that, in the middle of this COVID now, you know, we have people losing their job and, you know, staying home, how that has impacted your strategy and what are you focusing on now as far as multifamily goes?

 

Rod: Great question, great question, so, why multifamily? When I was losing everything, I had 800 houses and I had several apartment complexes. It was the houses that pulled me down and here’s why. I had 800 houses 2 hours north of me, 2 hours south of me, and everywhere in between. And I live in Florida where there’s no state income tax, okay? These are along the Gulf coast of Florida and so the property taxes here are higher which impacts what? Cash flow. I had properties in flood and wind zones which impacts what? Cash flow, but here’s what killed me. These were C-class houses so a lot of maintenance and if I sent a maintenance guy to one of my apartment complexes, everything is the same, appliances are the same, the plumbing parts are the same, the HVAC systems are the same, the locks are the same, the fixtures are the same, so we could stockpile parts. I could send a maintenance guy there, be in and out in an hour. If I had to send a maintenance guy to one of my houses that’s an hour or an hour and a half away one way, they’d have to get there, see what’s wrong, go find a Home Depot or a Lowe’s where we had an account and then come back and I don’t know if you’ve ever fixed anything but pretty much every time I try to fix something, I end up having to go back ’cause I forgot something and, you know, same thing with maintenance guys so what took an hour at one of my houses ends up taking all day at one of my — I’m sorry, what takes an hour in one of my apartment complexes ends up taking all day at one of these houses and you multiply that times 800 and it just did not cash flow, it’s too expensive. But what killed me ’cause, you know, everybody at the time believed the gravy train was never gonna end which is frankly what people are thinking right now so we’re gonna talk about that next, okay, ’cause I think it’s coming again, just so you know. I did a YouTube video on the coming real estate crash of 2021. It’s already been watched about 72,000 times ’cause negative news obviously gets people attention but I really believe a crash is coming, I really do. But here’s the key, it’s not something to fear, it’s something to prepare for.

 

Pancham: Yeah, you were talking about the second reason why you invested like in COVID situations, yeah.

 

Rod: So, what’s fascinating is through the crash, my multifamily did just fine. If I hadn’t cross collateralized, I’d save like a half a percent interest, I’d do packages of houses with an apartment complex in my brilliance thinking that was a smart move, I’d still have those apartment complexes if I hadn’t cross collateralized them and they were doing just fine. Yeah, they pulled back but they would’ve survived and so that’s one of the main reasons I started my podcast was to get the message out there. If you’re gonna buy and hold real estate, for God’s sakes, do multifamily. I will tell you when in the crash of ’08 and ’09, multifamily recovered better than any asset class, better than any other asset class, office, warehouse, retail, you know, get me started on retail or office right now, they’re getting killed, but the point is within 3 years of the crash, rents were higher than they were before the crash. That’s how powerful multifamily is and so I want to get that message out there so I started my podcast, you know, like you said it’s called Lifetime Cashflow through Real Estate Investing. If you go on your iPhone and you search real estate on a podcast app, I used to come up number one, me and BiggerPockets, but, anyway, you know, and I started my podcast about three and a half years ago thereabouts and we just broke 9 million downloads.

 

Pancham: Wow, congratulations.

 

Rod: Thank you. I’m really proud of that but it’s called Lifetime Cashflow and if you have any interest in multifamily, please come listen to it. You’ll really enjoy it and if you don’t, come listen to the Own Your Power clips. On your way to work, you get juice, you know, it’s 5 minutes, 5-minute clips about mindset, about psychology, about responsibility, about pushing through failure, about pushing through fear, about taking massive action, every topic, I’ve got hundreds of ’em, so that’s why multifamily because it did just fine, it’s recession-resistant, okay? It’s crash-resistant and so what am I doing now with COVID? We’ve got an 80-unit under contract right now in South Carolina but we’re very, very conservative, okay? I mean, we just closed on a 280-unit in Cincinnati that we could break even at 65 percent occupied and we have a million dollars sitting in the bank just in case, okay, you know operating reserve. Just in case that you know what hits the fan so we’re very, very conservative but we are still buying. Now, that said, I truly believe incredible opportunities are coming, I really believe that and so, you know, if you’ve ever thought about this business, real estate, learn it now. Just a shameless plug again but, bottom line is, I don’t sell anything at my 2-day boot camp. It’s kind of a duh, it’s a no-brainer ’cause you can — in fact, if you use the code RodFriend, you can get 50 bucks off and you can come for $97, okay, for 2 full days of training. It’s a no-brainer and actually go text RodLive to 41411 or you can go to multifamilyvirtualbootcamp.com but if you have any interest in this business, come spend a couple of days with me and I’m doing one this coming weekend but, you know, I’ve never had a complaint, okay? And that’s after thousands of people. Never had a complaint, and I do a survey after every event. The only — we’ll, that’s not true, I got a complaint the breaks are too short. I do 15-minute breaks ’cause I’m packing everything in, you know? I mean, I’m truly packing everything in so that’s the only complaint I’ve gotten.

 

Pancham: That’s great. This is awesome.

 

Rod: Just let me bring something else home. Listen, we’re all scared, okay? Everybody gets scared, this fear is rampant right now and remember you’ve got to focus on what you want and you know if what I think is true, there will be assets at 30 to 50 cents on the dollar. It could be the greatest opportunity of your lifetime. No, there’ll be businesses as well, they’ve already been so many business failures, it’s very, very sad. And you can focus on that or you can focus on the potential opportunity. I choose to focus on the positive that’s coming instead of the pain but, you know, you have to direct your brain. You’ve got to put on those rose-colored glasses ’cause it’s very easy to get sucked into the pain. Like I said, don’t get me started on the freaking media or the politics, good Lord.

 

Pancham: Right, right. Thank you, thank you for sharing that so my last question before we move on to the second section of the show is that do you have a morning routine that you follow? If so, what is it and do you attribute that to your success?

 

Rod: Well, yes, and it’s evolved over the years. Now, it’s very, very simplified. I get up in the morning, I sit in this recliner you can see behind me, you can see some of my thank you cards there, I’ve got hundreds of thank-you cards [inaudible 00:38:40] job from people whose lives have been impacted from my work and it’s just a huge blessing in life, I freaking love what I do, I really do. That’s my wife puts up with me working Sundays sometimes but my morning ritual is I sit in that recliner and I’ll just do gratitude. I’ll think about my amazing beautiful wife, I’ll think about my kids, I’ll think about my family, my students, my foundation, and I’ll just be grateful. But then I’ll do gratitude. I’ll even look at these vision boards, that’s my travel vision board, places I’ve gone or places I wanna go again and I’d be grateful for the things that I want as if I already have them and I know I lost some more of you analytical ones, “Oh, God, where’s the real estate content I came here for?” This is more freaking important, okay? Because when you focus on what you want with gratitude, I’ve even gotten emotional focusing on the things that I want with gratitude, they come into being, okay? There’s a reason, you know, I had $50 million to lose and there’s a reason I got back to, you know, some pretty incredible success again is because of that focus, guys, so please don’t discount it. I know it’s a little woo-woo and mumbo-jumbo to some people but that’s a mistake, and trust me, it’s a freaking mistake if you take that mindset about it, and I know it’s tough for super analytical people like a lot of your listeners to wrap their head around this but — ’cause it’s so esoteric but it freaking works, so sit there and be grateful for what you want as if you already have it and you will have it. And then the last thing I do is I do a declaration. “It’s gonna be an amazing day,” and it almost always is. That’s my morning ritual. And I usually — sometimes I’ll exercise. You know, one of my love languages gifts and I give lots of gifts to my students. In fact, if you haven’t read the book The Five Languages of Love, get the book. If you love anybody, get the book ’cause you need to give the love in a way they feel it, and so, you know, one of the books they get from me is The Miracle Morning, Hal Elrod’s book about getting up —

 

Pancham: I love that book.

 

Rod: Yeah, yeah, and journaling, praying, and exercising or meditating. Fantastic book. I’ve had him on my podcast. Super human being. So there you go.

 

Pancham: Great, thank you. Thank you for sharing that. So, your point on gratitude, I recently started, like I said before, I did an episode on it and how it changed me so far. It’s great. 

 

Rod: Let me expand on what you just said. I would recommend a gratitude journal, guys. I would just recommend taking, on the weekly planning process — yeah. He’s going to get something here for those of you on iTunes. Probably gonna show me his gratitude journal, right? There it is. Yep, there it is.

 

Pancham: Yeah, I actually —

 

Rod: Gratitude journal, yeah. Love it. You know, I did this — the very least when you’re planning your week. I mean, I recommend you do it daily. Just focus on what you’re grateful for because it’s the most powerful emotion we have in our lives. It’s impossible to be afraid and grateful at the same time. Impossible to be angry and grateful at the same time. So you wanna use this emotion. It’s so powerful. You know, I remember, I did a journal with what I was grateful for in my wife. Every day, I wrote in it. It was a hundred pages and every day I filled up a page with what I loved about her and what I was grateful for in her and there were days I didn’t freaking wanna write in there but not only did — it caused me to show up differently in the relationship. She saw a change in me ’cause I was focused on what I loved about her and I gave it to her for her birthday and you could imagine how well that was received, so, anyway, sorry, I just had to throw that in when you said gratitude.

 

Pancham: Absolutely, thank you for sharing that. So, we’ll be back after this message.

 

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Pancham: So, Rod, we are going to move on to the second part of the show which I call Taking the Leap Round, and these are the four questions that I ask every guest on my show. My first question for you is when was the first time you invested outside of Wall Street?

 

Rod: Eighteen years old when I bought my first house.

 

Pancham: Great. What fears did you have to overcome when you bought that first house when you were 18 years old?

 

Rod: Gosh, it was more limiting beliefs. “I’m too young,” “I’m not experienced enough,” “I’m not smart enough,” “I’m not analytical enough,” “Actually, I’m not good enough.” I had to overcome limiting beliefs. I was pretty fearless ’cause I was so disgusted with, you know, what I had dealt with growing up and not having what I wanted and seeing other people have what they wanted and I got picked on a lot in school so I had kind of a little bit of a chip on my shoulder to prove myself, to prove to the world that I mattered, that I was good enough and that drove me, so it wasn’t as much fear as it was I did have limiting beliefs, however.

 

Pancham: Got it. So, my third question, can you share with us one investment that did not go as expected?

 

Rod: I think I did —

 

Pancham: Yeah, you already did —

 

Rod: If you had an example of someone that lost more than $50 million, I wanna meet that person ’cause it will make me feel better about myself, okay?

 

Pancham: Yeah.

 

Rod: You know, I’ve had — listen, I’ve had tons of failures. I told you I call ’em “seminars” ’cause they’re not —

 

Pancham: Yeah —

 

Rod: — failures. Now, I’ve had — I’ve built 24 businesses. Several have been worth tens of millions of dollars. Most, however, had been spectacular flaming seminars, okay? So, you know, I’ve had tons of failures. I mean, businesses that I’ve tried and — ’cause I’ve got a shiny penny syndrome. Oh, shiny penny, let’s try that. No, there’s another one, let’s try that. 

 

Pancham: Totally relate to that. Thank you. Yeah, these are seminars. Real-world education. So, my final question for you, Rod, is what is one piece of advice you would give to people who are thinking of investing in Main Street that is outside of Wall Street?

 

Rod: Well, first of all, if you are investing in Wall Street, you are risking a lot right now ’cause I believe a crash is coming and that’s — I had an economist on my show that said that’s the first indication of the real crash is when the stock market crashes. If you’ve got money in the stock market, I’m gonna give you my opinion, okay? That’s all this is but I would get out immediately, okay? And get into cash flowing assets of some sort. Not stocks that pay dividends because when this market crashes, those dividends will dry up. Get into real hard assets, like real estate. I just told you how multifamily did through the greatest crash in our recent history and that’s why I believe in it so much. You know, that’s my advice about Wall Street. Get out, right now, because it’s coming. You can’t have 26 million people unemployed and literally 20 percent of the businesses have failed. Twenty percent have failed in this country permanently. I mean, I went to — my wife and I go to South Beach Miami. We love to go on Lincoln Road which is this shopping district —

 

Pancham: Right, yeah.

 

Rod: — and literally 30 to 40 percent of the businesses, the iconic restaurants that used to be there like Nexxt Cafe and SushiSamba and Balans, they’d all closed permanently. Not coming back. Retailers closed permanently. You know, to think that we’re not gonna have — regardless of the outcome of the election, to think that we’re not gonna have some serious pain in this country is naïve in my opinion, okay? ’Cause they can’t pay that stimulus forever. You know, Biden wins, he’s gonna throw another $4 trillion at it and if that’s the case, I think we’re gonna have hundred-dollar loaves of bread with inflation, but, regardless, it doesn’t matter, I think that Trump or Biden doesn’t matter, I don’t think they can stop what I think is coming. But, again, don’t fear it. Get ready for it. How do you get ready for it? Get in cash or have, you know, I teach my students, you know, have conversations with people with cash that when it’s really looking painful out there and the media is saying, “Oh, real estate is gonna be terrible forever,” which is what they’ll do which is BS, that’s when you pounce. That’s when you buy these assets that’s cents on the dollar, but you gotta pre-frame people so they’re not fearful at that time. So prepare for it. Yes, real estate takes money. Multifamily properties take money but it doesn’t have to be your own money, so you go out there and you build these relationships.

 

Pancham: Great. Thank you for that. Yeah, I actually interviewed someone, I don’t know if you know Jordan Goodman. He’s the moneyanswers.com man and he’s seen many recessions. He has been talking about personal finance for 40 years. His opinion was, again, I’m totally with you, I believe what you believe —

 

Rod: Well, a lot of — listen, I told you I did my YouTube thing. I got a lot of hate in the comment. “You’re an idiot,” “You’re a moron,” “You don’t know what you’re talking about.” Okay. Listen —

 

Pancham: Yeah, I was just going to tell you his opinion that there are people who think that there’s going to be a melt up because of all this printing that’s gonna happen.

 

Rod: Right, and, yes, there were be a melt up but put your common sense hat on for a minute. If —

 

Pancham: I agree with you, you don’t have to —

 

Rod: Take a look at what a million dollars look like compared to a billion. It’s massive. Look at a graph of a trillion dollars. They lay it out on graphs. It’s mindboggling how much money it is and to think that when you do that out of thin air that it’s not gonna impact some things. I hate to say it’s a bit naïve.

 

Pancham: Yeah, and, you know, you mentioned on the Main Street, we see the pain. So many businesses are closing, so, you know, the iconic things are shutting down. So, thank you, Rod. This has been awesome. Thank you for your time here. How can listeners connect with you? I know you already mentioned a few of those things. Is there anything else you wanna mention?

 

Rod: Sure, sure. I’ve got a lot of free resources at my website. Just go to realestatewithrod.com and it will take you over to my website which is my name but my name’s hard to remember, so realestatewithrod is easy to remember, go there, and, again, if you have any interest in this business, for God’s sakes, spend a couple days with me. I’ll be doing it again probably in February or late January and it’s $97 unless you wait ’til the last minute to buy. And I’m not selling anything. So it’s kind of a duh, really, seriously, if you have any interest. Even if you wanna invest passively. Why would you give your money to someone not knowing what you’re, you know, more about it? That goes for the stock market, anything like that. Get a basic understanding. Come spend a couple days with me so you don’t squander your hard-earned money investing with the wrong person. So there you go. But I’ve enjoyed this, buddy. Thank you for letting me pontificate.

 

Pancham: Thank you for your time here. You’ve added a ton of value and this is the stuff that I really talk about all the time. Eighty percent is the mindset and that’s cool. Thank you for your time.

 

Rod: My pleasure, buddy.

 

Pancham: Thank you, everyone, who tuned in today and listened to the incredible things that Rod had to share today. Rod has been an amazing guest and, you know, he shared a lot of things that I’ve really truly started resonating with and, you know, how psychology is really, really important and how, you know, you need to have a passion for — and the purpose that you are trying to get to and it’s the journey that you need to enjoy and, you know, when you reach that goal, you need to have a bigger goal. So, hope you learned something from it. Hope you’re going to implement some of these things in your life. Thank you for listening. If you have questions, e-mail me at p@thegoldcollarinvestor.com. This is Pancham signing off. Until next time. Take care.

 

Thank you for listening to The Gold Collar Investor Podcast. If you love what you’ve heard and you want more of Pancham Gupta, visit us at www.thegoldcollarinvestor.com and follow us on Facebook at The Gold Collar Investor. The information on this podcast are opinions. As always, please consult your own financial team before investing.

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