Working Capital The Real Estate Podcast
Building Lasting Wealth Through Real Estate with Rod Khleif|EP11
Jul 14, 2020
In This Episode
Rod Khleif is an entrepreneur, real estate investor, multiple business owner, author, mentor, and community philanthropist who is passionate about business, life, success, and giving back. As one of the country’s top real estate trainers, Rod has personally owned and managed over 2,000 properties. Rod is Host of the Top-Ranked iTunes Real Estate Podcast which has been downloaded more than 8,000,000 times – “The Lifetime Cash Flow Through Real Estate Investing Podcast.” Rod is the author of “How to Create Lifetime Cash Flow Through Multifamily Properties” considered to be an essential “textbook” for aspiring multifamily investors.
In this episode, we talked about how he started in real estate, from his humble beginnings to greatest achievements, how he overcame loss and challenges, multi-family business, how he discovered the power of mindset in psychology wherein 80-90% of success on anything is in our minds which he talks about in his podcast and live events, helping and educating people in their focus and how to achieve goals. You’ll surely learn more from Rod in this episode!
- “Do not limit yourself.”
- “The goals are important, the goals will drive you, they’ll motivate you, and they’ll push you.”
- “Now is the time more than ever to find your passion, to find something you enjoy doing.”
- “You keep your eye on the goal, and if this one approach doesn’t work, change your approach.”
- “Goals don’t equate to happiness, progress equates to happiness.”
Resources and Links:
Text Rod to 41411 for free resource
Welcome to the working capital real estate podcast. My name is Jesse Fragale and on this show Has all things real estate with investors and experts in a variety of industries that impact real estate. Whether you’re looking at your first investment or raising your first fund, join me and let’s build that up Portfolio one square foot at a time. Ladies and gentlemen, I have rod cliff on the show today. Rod is an entrepreneurial real estate investor, multiple business owner, author, mentor, community philanthropist, who is passionate about business life success and giving back rod. How’s it going today? Awesome, brother. I appreciate you having me on the show. Let’s let’s have some fun today. Yeah, no problem. I know it’s probably been a couple of years since we last spoke on, on your podcast.
So how are, how have things been? I know we’re kind of in a crazy world right now. We are, we are in a crazy world right now. There’s a lot of fear out there right now. And you know, a lot of people, you know, fear of the unknown is probably the greatest fear that a human has. And there’s so much unknown right now. You know, I, I, you know, could I die from this? How long is it going to last? Am I going to be out of work forever? You know, there’s so many things happening right now. And so much fear. It’s easy to get sucked into it. I mean, you know, you, you, you’re glued to CNN and Fox and, and, and in of course, forgetting that the news isn’t there to inform us it’s there to startle us and, and, and, and, and keep us engaged.
Jesse (1m 28s):
So, you know, it’s, it is crazy right now for sure. Yeah, absolutely. Well, just for listeners, you know, when, when and where you’re ever listening to this, you know, we’re kind of in the midst of a, of COVID or Krone virus right now. It’s been a couple, I guess, a couple of weeks since we’ve had kind of extreme measures been put in a feds have recently cut rates twice. Now, I, I think I’m in, based out of Toronto Canada. So we’ve cut once, but, you know, I’m assuming we’re gonna follow suit, you know, maybe taking a, taking a step back from all of that right now, you know, rod, I know you, you know, a bunch of the listeners I’m sure know you, but for those that don’t maybe a little bit of kind of your background and, and real estate and, you know, for you, why real estate.
Rod (2m 12s):
Yeah, sure, sure, sure. Yeah. So I immigrated to this country when I was six years old, I was born in Holland, the Netherlands and came over here with my mother Ivanka and my brother Albert. We ended up in Denver, Colorado, where we live for 30 years and we, we struggled. We didn’t have much, in fact, you know, I remember wearing clothes from the Goodwill and the salvation army all the way through junior high school, because, you know, until I could get a job and get some decent clothes, but you know, my, we, we ate expired food. We drank powdered milk, you know, cause my mom thought milk was healthy and that’s what she bought. I remember going to the daily bread store, you know, and I’m sure that you’ve got listeners, Jesse, that have it harder than, than I did and maybe have it harder right now.
Jesse (2m 56s):
And especially in these crazy times, but I, I wanted more and my mom was a bit of an entrepreneur and she babysat kids. So we’d have more money. And with her babysitting money, she not only invested in the stock market, but she also bought the house across the street from us when I was about 14 for approximately $30,000. Now, when I was 17, she told me she’d made $20,000 in her sleep. And I’m like, what? Screw college I’m getting into real estate. So I’m going to make my money in real estate. So I actually became a real estate broker, right? When I turned 18, which you could do through education back then now, now you need to experience, they got smart and you actually have to have some experience before you can come and actual broker.
Jesse (3m 36s):
And, but I was a broker and I was going to be rich in real estate. So my first year in real estate, I may be made $8,000 my second year, maybe $10,000. But my third year I made well over a hundred thousand dollars. And so what happened between your two and year three? And that’s that topic is something. I talk about a lot on my podcast at my live events. And that is, I discovered the power of mindset and psychology and the importance of it. And that truly 80 to 90% of our success in anything is our mindset and psychology. And so, you know, fast forward to today, I’ve owned over 2000 houses, multiple apartment complexes in and in 2006, my net worth went up $17 million while I slept.
Jesse (4m 22s):
And, but there’s a punchline, you know, when, when that happens, you know, you know, if you do the math on, it’s like $8,300 an hour. And of course I did and I got a head so big, I could barely fit it through a door. And when someone gets a B you know, I thought I was real estate God. And when somebody thinks, you know, they’re all that God or the universe will give them a, you know, a SmackDown. Well, that was 2008 for me. I lost that 17 million whole lot more. I lost $50 million in 2008. And so, but what I love talking about is the mindset. It took to have 50 million to lose in the first place, but then the mindset, it took two to get back to the success that I enjoy today.
Jesse (5m 4s):
And I think it’s a really relevant topic because again, so many people are caught up in fear, regardless of when this episode airs COVID will still be around. I’m certain of it. I just interviewed a doctor on my show that says, it’s going to be three to five years and it’ll be in waves. And so who knows who’s right and who’s wrong, but, but even if it’s half, right, it’s still gonna be around. And so, you know, it’s so easy to focus on fear, but the thing that people forget is what you focus on, becomes your reality. Number one, number two, it’s going to grow. So, you know, if you focus on the negative, it’s going to get bigger. If you focus on what you want and what’s what, and the positive it’ll get bigger, you know, they asked mother Teresa if she was antiwar.
Jesse (5m 48s):
And she said, no, I’m pro-police right. And, and so, so, so, you know, one of the things that I take my students through at my live events and on my podcast is this kind of goal setting workshop on steroids. And if you’d like, I can take five minutes and describe it to your listeners.
Rod (6m 6s):
Yeah. That’d be great if you could. It’s important because for those, for those that aren’t aware, you know, you are kind of the godfather when it comes to real estate education in kind of in the education space. So not only do you do these podcasts, you know, you put a lot of information out there, live events, and I believe you’re in the California area where you were the lights on. I’m actually in Sarasota, Florida.
Jesse (6m 31s):
Yeah. That’s my backyard behind me. It’s a green screen, but that’s, that’s my backyard. I’m blessed to live, live on the water, but now it, it, yeah. So I forgot that there was a question there, sorry,
Rod (6m 43s):
I’m just kind of updating people that, you know, that you’re kind of in that education space. It’s not just a, that
Jesse (6m 49s):
Podcast. We’re about to hit 8 million downloads. It’s blessed to be the largest commercial real estate podcast, I think in the world now. And we do sold out live events, although who knows when we’ll have another one, I had to cancel the one coming up in Orlando. We were on track for probably 700 people there, but you know, it’s a new world, you know, this social distancing. And, you know, I think there’s going to be a lot of virtualization. Like, like we’re doing on zoom here right now, but that’s a topic for another day. But, but the, the, you know, the, the point that I want to make, and in, in all of this, in, in particularly in this fearful environment that we’re in is how critical it is to focus on what you want.
Jesse (7m 28s):
Because, you know, back when I lost that $50 million, I thought I was set for life, man. I had 800 houses. I had multiple apartment complexes and it just imploded. And I thought I was set for life. And so it would have been very easy for me to stay in fear and, and, and, you know, people jumped out of buildings in the 20, in the crash of, you know, the great depression for losing equipment, the equivalent of what I lost. And so, you know, it’s it’s. And so one, one of the things that I do to help people with their focus, and this is how I recovered and got back was, was paying attention to really what I wanted with clarity and, and, and knowing why it was an absolute must to get it.
Jesse (8m 10s):
And so if you’re listening and you have a chance to take some notes, I think you’ll be glad you did. So what I want you to do is I want you to pick an hour when you have a lot of energy. Okay. Not after a meal, make sure you’re well hydrated and, and sit down and write down everything you could ever possibly want in life. Okay. Start there. Not just the top 10 things, everything, you know, the houses, the boats, the cars, the jet skis, the planes, but take the lid off your brain. Imagine that if you write it down, you’re going to get it, which is not outside the realm of reality, because what, what it does, just making a decision like that, that you’re going to go after this. It triggers something in your brain called your reticular activating system. And that’s that filter in your brain that subconsciously filters out, you know, or, or how helps you hone in on what it thinks is most important to you.
Jesse (8m 55s):
And it happens subconsciously. And the greatest example I can think of is when you first buy a car, you know, when, before you bought it, you didn’t really notice that that type of car, but when you buy it, you see them everywhere. And were they there before? Of course they were, well, the same thing applies to your goals, but what’s critical here is that you take the lid off your brain. You do not limit yourself because that will tell you, you know, I lived in Denver and I, but I knew that I moved to Denver, but I knew I always wanted to live on the beach. I knew I wanted to be on water. I visualize Palm trees, the sand, the surf. I mean, I knew that’s where I was destined to live. 20 years later, I built this $8 million, 10,000 square foot mansion on the beach here in Sarasota.
Jesse (9m 36s):
You know? And, and, and that was unthinkable when I was 18. So the point I’m making, I’m not trying to brag. I just, one of the point I’m making here is, do not limit yourself. If you want a private Island, a jet, a yacht, whatever it is, write it down because that’s what starts the process. But write down how much money you want the bank in say three years, how much money you want in the bank in 10 years, how much cashflow you want from your investments? Be it multifamily real estate or whatever it is in say, three years in 10 years, write down, you know, of course all the stuff and don’t limit yourself, write down what you want to learn. You know, maybe you want to learn a foreign language. Maybe you want to, you know, I’m me. I’m going to learn how to play the drums. I’m going to learn also how to fly a helicopter.
Jesse (10m 17s):
One day. These are, these are things that I longterm things that I’m going to do. Also write down what you want to do. Maybe you want to write a book. Maybe you want to climb every mountain peak over 14,000 square feet. Like a friend of mine is doing, you know, whatever it is, whatever you want to do. I, I, I jumped out of a perfectly good airplane about six, eight months ago. I’ll never freaking do it again, but it was on the list and I got it done. So write down what you want to do as well. And lastly, write down who you want to help. We will do more for others than we’ll do for ourselves. So write down who you want to help. I bought my parents a house here on a canal in Florida. I bought them bottom. A car, took them on cruises, you know? Well, who do you want to help write that down? And then once you can guide guys, if you’re analytical, please don’t stop and analyze it.
Jesse (11m 0s):
Just keep writing until you can’t think of another thing. You can always scratch it out later. Now, once you’re done, I want you to put a time limit on each goal. Put how many years you think it’s going to take you to achieve it. And again, don’t overanalyze it, just put a one, a three, a five, even a 10 or a 20, recognizing that as human beings, we will overestimate what we can accomplish in a year and massively underestimate what we can do in, you know, in five, 10, 20 years. Like that house example I just gave you. So, so, so put a time limit on each goal. Then once you’re done, there’s a couple more quick steps once you’re done. I want you to pick your number one goal. I mean, that goal that when you get it, you’re like, Oh my God, this is freaking amazing.
Jesse (11m 41s):
That goal, write it down, put it on a separate sheet of paper. Also want you to pick your top three, one year goals, put those on a separate sheet of paper, by the way, I just thought of something. If you, if you go to my official Facebook page, rod Cleef official, I did, I did this whole workshop for an hour and 20 minutes on January. First of this year, actually on new year’s day. And it comes with a worksheet, the goal setting worksheet that I put together. So if you go there again, it’s radically for official, I’ll guide you through this with music and the whole thing, but anyway, back to the story. So, so, so you’ve got your number one goal. You also need to pick your top three, one year goals, put those on a separate sheet of paper and leave the room in between them.
Jesse (12m 23s):
Okay? You are now ahead of 99.9% of the piece, people on the planet that, that have not taken their goals to this level, but there’s a couple more steps. Okay? The goals are important. The goals will drive. You they’ll motivate. You. They’ll push you, but why you want those goals is the real meat. Okay? By the way, guys, all of this is fuel fuel for you to, to, to take action, to get up early, to stay up late, to focus on what you want, not the fear to, you know, maybe you’re comfortable to get uncomfortable because the comfort zone is a warm place, but nothing freaking grows there. Right? So, so, so write down for each one of those goals, why it’s an absolute must for you to achieve it?
Jesse (13m 4s):
Not a should a must. Okay. And you know, things like, so my family and I can have freedom so we can go do whatever we want whenever we want wherever we want, bring whoever we want, you know, whatever it is for you, write it down and use emotionally charged words. Words are very, very powerful words, like beautiful and incredible and amazing use juiced words like that. Cause they will move you once. You’ve got a little blurb underneath each of your goals. Why it’s a must take it one little step further and put some pain in there. Okay. What happens if you don’t achieve the goal? So I don’t live a life of regret, so I don’t feel like a failure. So I don’t fail my children.
Jesse (13m 44s):
And by the way, on the positive ones you might want to say so I can show my kids what success it looks like. So I can show my wife, her husband, what success looks like. So we can live the life of our dreams, but on the negative ones here, make it freaking painful. Here’s why, because as human beings will do more to avoid pain than gain pleasure. And you want to use this as the fuel. So I don’t feel like a failure live a life of regret, fail my kids, fail my, my spouse. I mean, make it painful. And, and you know, I will tell you, there was this nurse in Australia, her name is Bronnie ware and she was a hospice nurse. And she counseled patients at the end of their lives. She guided them, you know, into the next life or death. And, and she asked them a question and the question was, do you have any regrets?
Jesse (14m 28s):
And she wrote a book about it’s called the five regrets of dying. You know what? The number one regret was Jesse. It was not living the life. I could have lived living someone else’s life. Not living to my potential guys. We don’t want that. Okay. Oh. So this is why you use this pain use it. It’s a tool. Okay. And then the last thing, once you’ve got these goals written out, you must get pictures of your goals. You’ve got to use this to visualize the things that you want. I’ll give you some great examples of this best. One public than I know of right now is Jim Carey. When he was flat broke, he wrote himself a check for $10 million and he used to, he kept it in his wallet and he’d go up to the Hollywood sign. He’d look at it and you’d visualize cashing it.
Jesse (15m 10s):
And that’s how much money he made for dumb and dumber. I’ll give you a great recent example, Demi Lavato 10 years ago, posted on social media that she would sing at the super bowl. And she’s saying at this last Superbowl, I’ll give you some of my own examples. Back when I was 18, you know, I was going to be a real tour and, and sell people houses. And, and I thought that was the path to riches. And so I got a four door car, and this was a four door Ford Granada bench seat in the front ugliest freaking thing you’ve ever seen in your life. Oh my God, it was ugly. Well, I worked for this guy, worked with this guy actually that had a Corvette at two of them actually. And he let me drive one.
Jesse (15m 51s):
And by the way, that’s a critical piece. If you want a goal, experience it as much as you possibly can. Yes. It’s critical. Like, like I just went, you know, one of my goals now is I want to rent or own a yacht and go around the horn of Italy. I went to the Amalfi coast with my wife and it was just unfreaking believable. And I want to do that, go to Greece, Croatia, you know, all these beautiful countries over there, Turkey and, and by boat. And so that’s, that’s on my bucket list now is, is the yacht business. And so I went to the Miami yacht show about, I don’t know, three or four months ago. And I’d be asked my way onto some big yachts. I mean, freaking big yachts. And, and I sat in the captain’s chair and I laid on the bed and I visualized owning that thing because it freaking works guys.
Jesse (16m 35s):
So I know I lost some of you analytical ones, but I’m here to tell you big mistake, get pictures of your goals. Like, so the car example I had that four-door Granada. Well, I drove that Corvette and this was back before you could spell internet. I went. And so I had gone to ma went into a magazine and I got a picture of a Corvette out of a magazine. And I taped it to the underside of the visor in that bone, ugly Granada and within a year, because every time I sat in a car, I’d see that thing. And within a year I had a Corvette a year or two. Then I’ll give you a couple more examples, but let me preframe this to your listeners, Jesse, this is not me bragging because this crap doesn’t interest me anymore. But, but, but it’s great to hopefully inspire your listeners. Okay.
Jesse (17m 15s):
And, and so I, this was back when the TV show Magnum PI was out there and the actor’s name was Tom Selleck and he drove this Ferrari three Oh eight and this was like the coolest Ferrari ever at that point. And I thought that was the most amazing thing I’d ever seen. So I’ve got a picture of that actual Ferrari out of a magazine, put her on the visor of my Corvette within a year or two out a Maserati looked just like it. Last example, I’m the guy that always wanted a Lamborghini. I had the posters in my bedroom when I was growing up. It was the Lamborghini Coon Tosh back then, but I got a different model, but what’s interesting actually is my son collected models of exotic cars. And he had like 30 of them and he had a model of the exact same color and style that I ended up with.
Jesse (17m 60s):
So guys, the pictures works. In fact, let me show you something, since we’re doing this on video as well, this is my planner. Okay. It’s on today. Yep. In the back of this thing, there are pictures that have been in here for 20 years and I’m not exaggerating. Okay. First pictures of my gratitude pictures, my kids when they were young, because everything starts from a place of gratitude. These pictures have been in here 20 years either. Dog-eared you can’t really see it, but they are. Okay. So pictures of my kids, everything starts from a place of gratitude guys, but then the houses that I want what’s crazy is I just found a picture of my house on the beach. And that’s what it looked like. This was before I ever built it. Okay. That’s what it looked like. And then what’s even crazier. Look at this bottom picture.
Jesse (18m 40s):
I don’t know if you can see that wall behind the chairs.
Rod (18m 45s):
Yeah, it’s incredible.
Jesse (18m 46s):
And th th I mean, this is where I live now. I live in a compound now it’s six buildings. I’ve got a giant, main house. I’ve got, you know, beautiful two bedroom guest house. I’ve got a giant exercise facility and a media center with a theater room and a video studio. And I mean, just spectacular because God’s got us, I lost that other house, the mansion I built on the beach. I lost that. And because God’s got a sense of humor, I can see it across the Bay. I literally it’s right out my backyard here in Cecil areas. But, but, but I had these pictures and then, you know, stupid shit like watches, I’ve got a few hundred thousand dollars worth of watches and, and the Lamborghini before ever bought it, you know, rolls, Royce, Bentley, all these things that I got because I had pictures.
Jesse (19m 27s):
So guys get pictures. They freaking work and put them on your screensaver, put them on your wall, put them, you know, like I have them in the back of my planner. I’m a dinosaur. Yes. I use a paper planner. But, but because it works anyway, I’m done playing.
Rod (19m 42s):
You’re a, obviously from the vision boarding, is this something that you had always done since you were a kid? Or was this beautiful? There you go.
Jesse (19m 52s):
There they are. That’s my travel one. I love them. And I’ve got a gratitude one as well. You know, I didn’t always do it. I did the pictures. And then when that movie, the secret came out, I’m like, Holy shit, this is what I’ve been doing my whole life. And I gave away probably a thousand copies of that movie. And what was really cool is I interviewed, John asked her, I was going to say that I had him on the show, which was really great for me. Yeah. But anyway, I digress,
Rod (20m 18s):
I guess from, just from listener’s point of view, you know, where you are starting to, I mean, I think we’re all dating ourselves now. We’re starting to get to the point where some people that are listening have not been through Oh eight Oh seven Oh eight. And if they have, you know, it’s not,
Jesse (20m 32s):
They had a mortgage payment to make. Right. So what was that, what was that experience like? I’m sure. Kind of going from where you were to, I mean, I’m going to tell you, it sucked. It was no fun. I mean, I hit under a rock for a couple of months. I’ll be honest, you know, all you see it was one little eyeball poking out or, you know, I was licking my room, but, but then again, I reassociating with what I wanted, I re associated with why I wanted it. And of course I got it back so much faster because I had brought my new skillset, you know, I didn’t lose any, that’s why I call it a seminar at $50 million. Wasn’t a failure. It was a seminar I’d built 24 businesses, three have been worth tens of millions of dollars. Many of the rest were spectacular flaming seminars.
Jesse (21m 15s):
Okay. But I learned, I become better every single time. And, but listen, the big thing and, and, you know, people are thinking, okay, so what did you do? What strategy did you do to buy houses or apartments to get back in? Forget that yes. The how isn’t the critical piece. It’s the why it’s the, it’s the focus. Okay. Again, it’s, it’s so important to direct your focus, particularly in, you know, because we’re, we could very well go through something significant like that. I think it’s actually likely that we’re going to go through something significant like that again. And if you are looking at it like an opportunity, I heard a great quote by
Rod (21m 57s):
Jay Abraham, a brilliant marketer,
Jesse (21m 58s):
Which was that, that we are, we need to be focused on ethical opportunism. I thought it was brilliant. I loved it. And so if you’re looking at this crisis as an ethical opportunity, the biggest money ever was made in, I mean, fastest was made through that crisis. If you listen to my podcast, you know, I’ve got dozens and dozens of people that own thousands of doors, and you start to hear a pattern. Many of them started in nine, 10, 11, and 12. Okay. That’s a clue guys. Okay. So that’s coming again. So if you’re telling your investors, Hey, we’re getting ready. Okay. We’re we’re, we’re, we’re, you know, now’s not a time to be fearful. Now is a time to be excited.
Jesse (22m 39s):
You’ll be able to capitalize on the incredible
Rod (22m 40s):
Opportunities that are coming. Yeah. I’m kind of that Warren buffet approach, you know, when, when a calamity does hit, so for, for yourself, when you, you know, you’re, you’re out of a wait Oh nine, you’re starting to rebuild. You know, we’ve seen a proliferation online of, you know, so-called gurus of real estate. You have different people doing different things. It’s hard for younger people, especially to try to figure out who you can trust and which resources you could use. What are your thoughts on, you know, this kind of guru world we’re in right now, and it’s not just real estate.
Jesse (23m 12s):
Well, you know, I, I don’t, I don’t get caught up in it that much. I mean, I’m not a guru. Honestly. I talk about my failures. You know, you come to my live event, you hear about my daughter,
Rod (23m 22s):
Of course, in the first five minutes of our conversation,
Jesse (23m 25s):
Worst day of my life, you know, and, and, and, you know, we bought a thousand books
Rod (23m 29s):
Last year. We have 800 doors under contract right now.
Jesse (23m 32s):
So we’re actively buying that business to me is, is, is, is critical. But my passion is in helping other people. If you look behind my wall here, I have hundreds. You can’t even see them all hundreds of thank cards from people whose lives I’ve impacted. And, you know, I, and, and I think the reason my podcast is about to hit 8 million downloads is because, you know, I focus on, on mindset. I, I’m not focused, but it’s a piece of every, every week I do a clip called own your power. And it’s about owning your power. And it’s about commitment and responsibility and goals. And you’re wise and pushing through fear and eliminating limiting beliefs and on and on and on, I’ve done hundreds of them. And so even if you’re not interested in multifamily, I know you’ll get value from those clips, but because mindset is so freaking important.
Jesse (24m 20s):
And that’s what got me out in a way that’s our own nine and 10 is no. I built a company out of the ashes of that. I built this litigation support company. We have literally, thousands of families saved their homes. We had law offices in five States that we worked with and, and I sold that business last year. And it’s about to thrive again. And, you know, unfortunately, but, but I didn’t like the businesses why I sold it. But, but the point is now is the time more than ever to find your passion to find something you enjoy doing? Because when you do work as effortless, I put 12 hours Sundays in. And, and because I love what it is that I’m doing.
Jesse (25m 2s):
And, you know, in fact, I, as soon as I’m done here, I’m going to go deliver my boat to my boat mechanic. I bought a boat literally three weeks ago. I bought some jet-skis three weeks ago. I’m finally like, Hey, my wife’s like, listen, I know you love this, but you know, we need to have some lifestyle here as well. So, but I don’t know if I answered your question. That’s great. And in terms of
3 (25m 24s):
The workshop you do that, I assume that’s in Sarasota as well.
Jesse (25m 28s):
It was in Orlando, but it’s canceled. In fact, my next, my next, you know, we’re hoping that we’re able to be able to have one in August and in, in Dallas, but I gotta tell you, I just interviewed this guy and, and, and it was very sobering. And you know, this, this new landscape may be all digital. We’re going to livestream that event in may, and it’ll be, you know, it’ll be cheap, like 97 bucks. I really, you know, I’m all about adding as much value as I can, but, you know, right way if your listeners, if your listeners have an interest in multifamily, first of all, I’ve got some incredible resources. I, I wrote a book, a 200 page book, and I gave away literally 20,000 copies for free. And finally, my team’s like, Hey, knucklehead, let’s put this on Amazon and make some money.
Jesse (26m 8s):
So it’s on Amazon. It’s a bestseller in three categories, but in its place, I wrote a, a tool book and I’ll give it to your listeners for free it’s it’s fact. Got it, got it right here. It’s like 70 pages. It’s like a due diligence checklist on steroids from multifamily. And if they text the, my name rod to four, one, four, one, one, they can have a free copy of it. And it’s not a sales piece. It’s no fluff. It’s every possible question. You’d want to ask if you’re buying a multi, if you’re buying multifamily, it’s not for single family, but if you’re interested in apartments, you’ll really love that. I’ve actually, I’m pretty sure
3 (26m 41s):
Elmo did that on one of the weeks. Maybe it was the last time
Jesse (26m 44s):
We spoke, but yeah, that was great. But that’s what I wanted to get into a little bit, you know, multifamily is, is the space that you love in terms of, you know, let’s given the situation today. Maybe we’d back up a little bit in terms of, you know, multifamily for you. Is it still your focus? And when people do come to these workshops, obviously there’s the mindset and there’s kind of that component of it. We teach, we teach soup to nuts at the workshop, every piece of the multifamily business. I mean, from, from building your team, to establishing your investment criteria, to, to, you know, determining your market and why, and how to analyze a market, to creating a, a deal flow through relationships and outbound marketing through to, to incredible due diligence, utilizing tools like this tool book to, you know, how to hire.
Jesse (27m 39s):
I’ve got another book, I’ve got lots of free books I give away here, but, but, but you know how to hire a third party property management company, you know how to perform, you know, comprehensive due diligence, hire management company, how to finance a deal, how to raise all the money you need for the deal, how to fund it, you know, soup to nuts. So it’s, it’s drinking through a fire hose. And again, this whole framework may, may, may be changing. Now I’m going to do a live stream of it on May 1st and second are some Sherry second and third. And I bring in experts to, for panel discussions. I teach for a while. Then we have a panel discussion, teach again, panel discussion, at least that’s the framework where we’re pretty sure we’re putting together. This is again, this is, this is all evolving over the last couple of days, literally.
Jesse (28m 22s):
Cause I literally just canceled my Orlando event two days ago. So I mean, it’s, it’s, you know, where we were, you know, like everybody needs to be ducking and weaving and, and looking at your business model and seeing is it sustainable? And how do you, you know, focus on what you want, focus on the future. And, and if one approach isn’t working, you change your approach, try something new. If that doesn’t work, you change your approach, keeping your eye focused on the goal. That’s a Tony Robbins. He calls it the ultimate success formula. And that’s it. You, you, you keep your eye on the goal. If the one approach doesn’t work, you, you, you change your approach and, and, and try something new and you rinse and repeat until it works like that litigation support company.
Jesse (29m 2s):
In 2010, I thought it was going to go bankrupt. I almost bankrupted it. And then I just changed my approach and it turned into a $10 million company with 60 employees. And, and so, you know, that’s an example. And, and right now a lot of people are needing to change their approach, their needs. They’re needing to revisit, you know, what their goals are and what vehicles they’re going to use to achieve those goals. Are there going to be incredible opportunities in real estate? You better freaking believe in, of course, yes. I love multifamily because even in the depths of 2008, the decline in revenue was an in, you know, 10 to maximum 15% range. And we stress test our deals at 25% vacant.
Jesse (29m 42s):
So, you know, you know what I mean by stress test is, you know, what happens if this happens, will the property still make it? And so we, like I say, we look at 25% and, and we’re very, very conservative. That’s just one of the many things that we do. But, but anyway, I don’t know if I answered your question about the bootcamp, but it is drinking through a fire hose. Normally it’s three days, but because some, I can’t do all the mindset stuff that I’d love to do, it’s going to be two days. I believe I’m working the outline together. If I need to extend it to three, I will.
Rod (30m 13s):
Yeah, no, I think you hit the nail on the head in terms of kind of pivoting right now. We’re a, you know, in as listeners know my, you know, my day job is a commercial real estate broker, and we deal with a lot of office tenants and just seeing the different verticals, people are in getting impacted more by, you know, like event space, PR companies, a little bit different, you know, than, you know, lawyers or insurance. I’m going to tell you, it’s going to go a lot deeper than that. My friend, yeah.
Jesse (30m 38s):
I’m just telling you right now, cause it’s impacting everything. And, and, and I will tell you that it’s not just going to be events. It’s going to be, I there’s going to be very little, that’s not impacted because so many people are losing their jobs. I mean, literally it’s, it’s, it’s going to be an impact. And, and again, it’s not a time to fear. It’s a time to adjust and adapt and focus on what you want and make changes and learn and grow. I got this and, and, and, and, and really pay attention to who’s watching you. I got this awesome, awesome statement from Brendon Burchard, who I’ve worked with super good guy
Rod (31m 16s):
Packed the, his recent book. I was just,
Jesse (31m 19s):
It wasn’t a book. This was just a comment around handling the crisis. And it’s just, and let me read it to your listeners. I just think it’s so, so relevant. It basically says you can show your family that in times of chaos, you retreat into distraction and entertainment, or you choose to skill up, learn up man up, deepen relationships, progress, rather than pause or hide or hunker down on the couch all day. You still have goals and dreams and they are all watching. Love it, man. I just freaking love that. I wanted to share that, but let me share one other thing before I forget Jesse. Cause it’s so important as it relates to goals. You know, I talked about that, that house I built on the beach.
Jesse (32m 2s):
Okay. And it was magnificent. I mean, I’m in giant waterfall from the second floor into the pool. The pool was in magazines. You know, it had wine cellar, elevator. I mean, just unbelievable. I mean, to give you an idea of the house on the second floor, I had aquarium that wrapped around the giant staircase that went up through the middle of the aquarium and it was about 180 grand. So that gives you an idea of the house. Okay. So two months after I built it, I’m sorry, two months after I moved in my family’s inside sleeping and I’m in the pool at night and the pool is changing colors that might had fiber optic lighting. And there’s a waterfall from the spa waterfall from the second floor. Just, I tens of thousands of dollars with the Palm trees going out over the pool two months after I moved in and I got depressed.
Jesse (32m 47s):
Yeah. So I’m looking up at this Testament to my ego, this, this house I built to prove the world. I was good enough, which that’s the truth of it. So I did it, it was to prove the world that I mattered. And I’m looking up at this thing after I’ve and I should, I mean, I had achieved success times a thousand by societal standards and I’m depressed. I’m like, what the hell is going on? I mean, I was really bummed and that’s what I want to share with your listeners. There were several things happening. One was, I didn’t know what I was going to do next. Like the good book says without a vision that people perish, I didn’t have a vision for the future. Secondly, it’s important to remember that goals, don’t equate to happiness progress equates to happiness. You know, how you grow and progress is how you remain happy.
Jesse (33m 29s):
So it’s so important for you to acknowledge on a regular basis. What you’ve gotten done consciously acknowledge your progress. So you stay happy. But I think the biggest thing for me was I’d been totally focused on rod, you know, prove the world. I matter, prove I’m good enough. I was, you know, it was all about rod, rod, rod. And luckily I bought some books and, and I got Zig Ziglar, Dale Carnegie, you got a Tony Robbins book and I was going to be back. You know, I’m just going to be back. And I started reading Tony’s book and I’m like, Holy shit, this is really good stuff. So I went to his bootcamp and, and you know, I’ve spent the last 20 years following him around the planet to give you an idea of how impacted I was. But I found out that he fed families for the holidays and I’m like, that’s really cool. He’s done millions.
Jesse (34m 10s):
So I go back out, feed five families. And I’m blessed to say, now we have fed over 75,000 children for the holidays. The last 20 years, we’ve done tens of thousands of backpacks filled with school supplies. We’ve done thousands of Teddy bureaus for officers locally to put in their cars when they encounter a child that’s been traumatized. And the reason I bring that up is I was successful, but I was unfulfilled. And I know you’ve got people listening to your show that are hungry. They’ve got blood dripping from their teeth. They want this financial so bad. I’m here to tell you guys incorporate giving back now because you will get the success faster. Trust me on this. Okay. I don’t, it doesn’t have to be anything as grandiose as I just described, but, but yeah, we were put on this earth to give back.
Jesse (34m 54s):
We were put on this earth to contribute anything in this universe that doesn’t contribute gets eliminated. Okay. That’s a fact of life. So, so make sure you incorporate giving back in some fashion, I’m here to tell you it comes back to you tenfold and you will get that success you want faster and it will be more meaningful. So
Rod (35m 12s):
That’s honestly, that’s a incredible two points there. At least for me, the, the one. Well, first of all, I love the, the Tony Robbins piece. I think I read that when I was 13, 14, and I believe it, he started kind of during the holidays giving. That’s what we do. We, we, we frozen turkeys, big boxes of food.
Jesse (35m 31s):
The third family, I went to change my life. So we we’ve, we called a church for these five families. And my brother helped me. And we, we, we said, who really needs help? And this was a lady in this like studio place that she lived in with five kids. She came out, she saw the boxes of food. We bought the frozen Turkey, the toys we got for the kids. She started crying. Kids came out, the older ones, started crying. I started crying and,
Rod (35m 53s):
And that’s hooked me. Yeah. And the other thing you said, I think is incredible too. I subscribe to the definition of success. You know, not like you said, it’s not raising that trophy. It’s not hitting that goal. It’s really that March towards that goal. And I think that’s why real estate investors in general, I think they need a project they’re working on that’s when they feel fulfilled, they need to be going to, to achieve something. But it’s funny, you mentioned, I think it was the first or second fam real estate investment I purchased. And it was during a time I was in evicting a tenant. And during that time it was an unfortunate situation in a rough area, but I saw a child in the house and you know, the parents, God bless them more, probably not in the best position to raise this kid.
Rod (36m 36s):
And I remember at that time, as it was evicting them just going to weekly, going to the store, getting them food. And as I was evicting them kind of giving food to the family. And again, it’s, you know, it’s not to say, you know, to beat my chest. But that incredible feeling that you got is even as your, you know, your regrettably telling a family, you know, you can’t live in this space anymore, but having the opportunity to help in any way you can, you know, call it a lot of that. Yeah.
Jesse (37m 1s):
Going on right now, I’m telling you it’s going to happen. I mean, you know, these thousand dollar checks to the U S population, it’s not going to last,
Rod (37m 8s):
It’s not going to cut it. And we, you know, we’ve, we’ve told, you know, at the end of the day we have tenants and would love to get your thoughts on this. Actually, even from the real estate perspective, you know, I am anticipating that tenants are not going to be able to make some rent payments. I anticipate landlords are not going to be able to make some mortgage payments. You know, the feds can only put so much money into buying back, you know, at a certain point, you know, I, what do you, what are your thoughts on that?
Jesse (37m 33s):
It’s all conjecture as to timing. I will tell you, if you listen to the episode, I just did. That’s going to go, I’m going to do a special release probably tomorrow or Saturday of this episode on my lifetime cash flow podcast. And if you listen to that, I think it’s sobering. It’s not going to be what you want to hear, but I think, you know, again, it’s, it’s important to focus on what you want. And by the way, I’ve got a lot of free resources for your listeners. If they want them at my website, <inaudible> dot com. And also I’ve got the largest, if you’re interested, multifamily, I don’t know if all your listeners are, but if they are, I’ve got the largest multifamily Facebook group on the planet with,
Rod (38m 10s):
I just noticed that people just pop that up.
Jesse (38m 13s):
If you go to multifamily community.com, it’s a direct link to that Facebook.
Rod (38m 17s):
And that’s a hot rod cliff official, right?
Jesse (38m 20s):
And Radcliffe official is my personal, you know, my official page. And, and again, that’s, if you want to do that goal setting workshop, I’ll guide you through it. Just go to my January 1st post on that. It’s about an hour and 20 minutes, and I give you a free guide and everything to do it with me, a downloadable. But anyway, I am unfortunately bumping up against the time. Absolutely. So I don’t know if you got an, a last question or, you know what, the only last question,
1 (38m 43s):
And I’ll say, you know, aside from obviously the, the resources for your, your site, is there any, you know, one book or one resource
Jesse (38m 50s):
You’ve mentioned Tony Robbins, Zig Ziglar that, you know, you could recommend to a listener. Let me give you a whole, my love language is gifts that by the way, the five languages of love is probably one of the biggest, best sellers in the country. Get that book for sure. Yeah. I love languages gifts. So all my students get gifts every month. The slight edge is one about the little decisions you make every day. Turning pro Pressman is about it’s quit operating like an amateur operate like a professional. Let’s see, of course, anything by Kiyosaki. I love, but, Oh gosh. Oh, the one thing I just interviewed the coauthor of that, Jay Papasan, a fantastic book, the Gary Keller and Jay Jay wrote the owners of Keller Williams, you know, and, and I mean, I could go on and on, but every one of those is fantastic.
1 (39m 35s):
My guest today has been rod clique rod. Thanks for joining the working capital real estate podcast.
Jesse (39m 41s):
My pleasure brother,
1 (39m 44s):
Thank you for listening to the working capital podcast. My goal is to help individuals break into real estate investing as well as educate experienced investors. If you enjoyed the show, please share with a friend subscribe and give us a rating on iTunes. It really helps us. If you have any questions, want to learn more or likely to cover a specific topic on the show, please reach out to me via email@example.com. My name is Jennifer galley, and I’ll see you back here for the next episode of the working capital real estate podcast.