Wealth Formula by Buck Joffrey

In 2008, when I finished my surgical residency, my net worth was about negative $75,000—not bad considering that number included education until I was 33 years old! As you know, 2008 was also the year of the great meltdown of the financial system. Doctors that I knew who had been practicing for decades with the intent of retiring soon, suddenly realized that they couldn’t! Half of their money had evaporated within days! Why? The short story is Wall Street greed. You see, Wall Street has created this really profitable game for itself. Here’s how it goes. You work hard to make money. You entrust your money in Wall Street through your wealth manager with hopes that your wealth will grow. Of course Wall Street charges you a lot of fees and wins whether you win or lose. They also make big bets with your money so they can make even more money for themselves. When they win, they win big but you don’t get to see the money. When they lose, they are too big to fail so they get bailed out by you—the tax payer. Pretty nice gig if you can get it right? How do they get away with it in the first place? Why do we do we as professionals keep coming back for more? After all, doing the same thing over and over and expecting a different result is the definition of insanity, right? What kind of financial education did you get growing up? What did they teach you about personal finance? Chances are, you weren’t taught anything about investing. The educational system teaches you nothing about personal finance. And when we get out of school, what replaces the classroom? How do make up for what we haven’t learned? Where do we turn to for answers when we need to learn about real life? What replaces the curriculum when you leave school? The answer?…CONVENTIONAL WISDOM! The problem is, conventional wisdom is not always right. For a lot of years conventional wisdom was that the world was flat. Conventional wisdom, believe it or not, might not even be unbiased. It might have been perpetuated by big money, big banks—wall street. Think about it. What is conventional financial wisdom? Let the experts invest your money in a diverse portfolio of stocks, bonds, and mutual funds. Why is that conventional wisdom? The only time my dad invested in the stock market was the during the dotcom crash and he almost lost his shirt. How many people do you know have gotten wealthy BECAUSE they invested in stocks, bonds, and mutual funds? Do you think the most wealthy families in the worlds, like the Waltons and Rothschilds invest in mutual funds? Of course not! Then why do most high paid professionals believe that investing in mutual funds is the responsible thing to do? Because it’s conventional wisdom. But here’s the problem: CONVENTIONAL FINANCIAL WISDOM IS THE CREATION OF SPECIAL INTERESTS! It came form Wall Street. It has been hammered into you as gospel and to stray from that line of thinking—well, it’s like heresy. I can’t tell you how many times I have heard from very smart, highly trained professionals confess to me that they feel sort of guilty or unnerved about investing in “alternative assets” like real estate. Does that sound like you? Even your family gets on your case—they tell you that you are going to lose all your money and that you are not being responsible. I’m hear to tell you that if you don’t believe in trusting your money to Wall Street, that you are NOT an irresponsible heretic. I am living proof that wealth can be created outside of Wall Street. In my humble opinion, I will go as far as to say that it is a hell of a lot easier to become wealthy investing outside of Wall Street. But where do you start? I’m asked this question all the time. And there is no simple answer. There is a lot to learn. This is podcast number 100. We’ve covered all sorts of investments, tax strategies, and even asset protection. But…we’ve never before put it all together in one place in a COMPREHENSIVE format taught by some of the smartest financial minds in the world—something that can be studied and maybe even mastered. That is…until now. I am really proud to present to you a labor of love on which I have spent the last 6 months and over $150,000 to create. I have created a course called Your Roadmap to Real Wealth and you can learn more about it at WealthFormulaRoadmap.com The course was produced by my friend Pam Hendrickson who spent nearly 20 years producing courses for Tony Robbins to prepare for this moment—ok maybe Tony wasn’t just a warm up for me. But..the point is I wanted the best of the best to make this happen. And that’s what I got! Just look at some of the names on this faculty: Rich dad Advisors Tom Wheelwright and Ken McElroy. Tom’s tax firm has helped me legally save literally millions of dollars of taxes in the past few years. Ken McElroy is the guy I learned real estate from and who I consider the Michael Jordan of multifamily real estate. Speaking of real estate, how about the real estate guys, Robert Helms and Russell Gray—friends of mine and some of the best in the business at teaching real estate. We’ve got Marco Santarelli—the turn-key rental guy and, if notes are your thing, how about Jorge Newberry, founder of American Home Preservation. Then there is Mauricio Rauld, my SEC attorney teaching you what you need to know about investing in private placements. We’ve even got my own asset protection and estate planning attorney Kevin Day to teach you why I sleep well at night knowing what I know and being structured the way I am. And finally, we’ve got the legendary Dean Graziosi teaching us about the millionaire mindset and the meaning of true wealth. How about that for all start line up? Of course, it wouldn’t be my course if I didn’t give you everything I personally know about personal finance and investing so I’m part of the faculty as well. Along with the course, I am also happy to announce the Wealth Formula Network which will now be the home to the Wealth Formula community. This is where I will be spending my time so I can really focus on helping people who are truly committed to take it to the next level. Again, the course is called Your Roadmap to Real Wealth and it may very well serve as the foundation for the rest of your investing life. Check it out at WealthFormulaRoadMap.com   Shownotes: [00:07] Introduction [14:29] Question 1 [23:19] Question 2 [30:45] Question 3 [41:00] Question 4 [43:36] Question 5 [45:45] Question 6 [32:53] Outro

Before I had a clue on how to invest, I thought I could just figure it out on my own. How hard could it be? After all, it’s not brain surgery right? And to a certain extent that is true. The math is quite easy. And yes, there is a simple equation. Wealth=leverage(Mass x Velocity). But the problem is, you have to believe the numbers that you plug into that equation in order for you to invest with confidence. And…to be clear, apart from concepts like Wealth Formula Banking, there really is no guaranteed return on investment in just about any opportunity. You can do all the math and due diligence you want, but at the end of the day, you have to take some leap of faith when you write that check. The first time I bought an apartment building, I did all the math right but there were many things I did wrong that caused me to lose about $300K—that was an expensive education. And boy…did I learn. In fact, I’m happy to say that I never lost money on another apartment investment since then. A big reason for that is my discovery along the way that investing is a team sport. You’ve heard that before I’m sure. But it’s really important. In fact, I call this tribal investing. You see, with the concept of tribe, there is this idea that we can all benefit from the collective strengths of our community. Yes…learning is best done through mistakes. But…they don’t need to be your mistakes. Borrow the battle scars of others in your tribe! Tribe also suggests an orderly community—one in which there are checks and balances. It is way that people create order out of an otherwise chaotic world. The same can be said for your financial tribe. Your want to have people that have your back and you want people with whom you invest to take your money personally. You want them to feel personally responsible for your money and also worry about their reputation in the community if they don’t perform—that’s where checks and balances come in to play. Listen, the best investors in the world lose money. There is no such thing as a deal that can’t go south and even the most skilled and experienced deal sponsors will on, occasion, lose money for their investors. But if someone is in your tribe, the hope is that they believe what they are telling you to be truth and do not take the responsibility as your fiduciary lightly. That’s why it is important to constantly expand your tribe. You need to be able to trust people before you can trust their deals. Some of you occasionally send me opportunities and want my opinion and more often than not I send a one liner back to you that says, “I don’t know them”. That’s not to be curt or unhelpful. I just don’t look at anything unless I have some kind of connection with the sponsor group. On the other hand, knowing an operating group well and believing in them can sometimes convince me to get past some of my own dogmas. As you may know, our accredited investor club bought into an offshore resort development last year. I don’t normally invest in resort property and I normally don’t invest in developments. But the strength of this team and associated brands along with their character made me look deeper into an opportunity I would have otherwise never considered. That property is Mahogany Bay Village and Beach Club and the lead developer, Beth Clifford, is my guest on Wealth Formula Podcast this week. If you have ever considered investing in developments or resort property, make sure you listen to this show as Beth will explain, from the investor’s perspective, how one should approach these kinds of projects. Beth Clifford, owner and CEO of Mahogany Bay Village and Caribbean Homes & Exports. “Doing what’s right, right.” This is Beth’s personal motto. Always do what you know deep down to be the right thing, and do it well. Beth has been involved in entrepreneurial business strategy and implementation for forty years. Just one in her impressive catalog of accomplishments was developing a software team who created the first automated credit scoring system in the United States, that went on to be the backbone of what Americans today know as the FICO score! After 14 years in the technology industry, Beth shifted her focus into construction and real estate development. This was a move in pursuit of her long-time love of building that was instilled in her during summer vacations as a girl with her grandfather, a home builder in New England. Since then, Beth’s experiences in development have spanned the United States and beyond, from small historical preservation projects, residential neighborhood developments, semiconductor and biopharmaceutical developments, and hospitality projects. Beth Clifford is a woman who personifies hard work, an unwavering vision, and above all — humility. When she entered Belize in 2005 her goal was to create or support the creation of 50 Belizean companies. To date, she has reached 18 and the work will continue until the goal is realized — and if you’ve been privileged to meet Beth Clifford, you should take that for fact. Shownotes: [00:07] Introduction [11:51] Beth Clifford’s background [14:38] Golden Handcuff [18:39] Beth’s take on investing in development [26:17] Mahogany Bay Village Belize [37:34] The projection of Mahogany Bay [42:49] Learn more about Beth Clifford and her work Mahoganybayvillage.com [45:42] Outro

When I first learned about the concept of cash flow investing, it was like a religious experience. In my case, I went around everywhere proselyting the virtues of cash flow investing to my friends. I was so excited about the concept that I couldn’t stop talking about it. In the process, I bored the heck out of a lot of people! But I couldn’t help myself. The idea is so simple and elegant, right? Buy things that throw off monthly cash flow. When you have enough cash flow, you can “retire”! Indeed, all of this is true. But… over the years, I figured out that it’s a little bit more complicated. It always cracks me up when I see someone have the cash flow revelation moment and the lights go on. They talk about their passive income goals and how they are going to retire in 5 years by buying real estate—even if they are currently broke! And the reality is that when you listen to a lot real estate podcasts out there, it might lead you to believe it is just that easy. Here’s the problem though. In order to create passive income, you have to have money in the first place! It’s math right? Remember, the Wealth Formula? Wealth= Leverage (Mass x Velocity). Let’s just focus on mass for a second. Mass means how much money you have to invest. If you have no mass, it doesn’t matter how much leverage and velocity you use. You still won’t be able to create wealth. This issue isn’t something that affects the broke either. I talk to plenty of high paid professionals who like the idea of replacing their W2 incomes with “passive” income. If you make $250,000 per year, that’s not an easy feat! If you average 10 percent cash on cash, you have to get $2,500,000 into the machine to create that stream of income. Doable yes but most of us are not that patient. What if you want to move quicker? What are your options? Well—for one, understand that you have many options. If you want to move quicker, you might have to broaden your investing horizons beyond the real estate box. We might have to look into buying or starting businesses that produce a lot more income. These businesses can either serve as mass to accumulate more real estate or, like in my case, can serve to be stand-alone “passive” streams of income. Of course all of this can sound intimidating if you are a hard working professional already slugging it out for 50 hours per week. Who has time for all of this? But understand that in order to create more income, you really only have two options. Either you have to buy it (like real estate), or earn it with your time. If you can’t afford to buy more, then you have to earn it and that will take more of your time. But taking more of your time doesn’t mean that it has to be another full time job you add to your current busy schedule for the next twenty years. You can also invest a certain amount of time up front just like you put down a lump sum of money to buy a rental house. Then, you can leverage technology. Sound intriguing? Well, it should! My guest on this week’s Wealth Formula Podcast is going to show us exactly how to do that. So…if you want to speed things up and get on the golf course, you won’t want to miss this week’s conversation with Udemy expert Jonathan Levi!   Jonathan is a serial entrepreneur, author, and lifehacker born and raised in Silicon Valley. He’s the author of the blockbuster Become a SuperLearner series, and the host of the award-winning Becoming SuperHuman podcast. His passions include learning languages, musical instruments, acro yoga, weightlifting, and cooking. He lives in Tel Aviv, Israel with his superwoman, Limmor.   Shownotes: [00:07] Introduction [08:59] Buck introduces Jonathan Levi [10:20] Jonathan’s journey [15:57] What is Udemy and how does it work? [17:40] Jonathan’s experience with Udemy [22:49] Is Udemy an option for YOU as a stream of income? [28:39] What are the more appealing courses from the buyer’s perspective? [33:30] How do I get started? (The Branding You™ Academy) [39:43] How to reach Jonathan Levi – jle.vi [42:45] Outro

If you’re heading into a dark cave for the first time, bring someone who’s been there before. That’s sound advice–not only for exploring caves, but also for investing your money. In fact, when it comes to investing money, it would be even better if you brought a geologist with you who had previously studied that cave extensively and had a map of it along with a great big flashlight! You see…the mistake most people make is that they believe investing is unpredictable. They are brainwashed into believing that by Wall Street. “Invest for the long term in a portfolio of stocks, bonds, and mutual funds”. What does that mean anyway? It means, “Give me your money so I can pull off a bunch of fees. And when you see your account go down by 30 percent in the next correction, it’s not my fault. It’s an act of nature.” Are we really that helpless when it comes to controlling our financial future? God help us if we are! I can tell you from my own experience that we are, indeed, not helpless. If you feel that way, you have not tried hard enough. You have not spent any time on financial education or trying to build your network–your tribe. After all, your network equals your net worth. Indeed, one of the most profound discoveries I made during my quest to understand the way that the ultra-wealthy invest is this–it’s not an accident that the rich get richer. The wealthy don’t rely on luck–they engineer their wealth. Wealth is created, it does not spontaneously appear. You can’t expect to get wealthy by simply hoping to get hit by it. Now listen, I’m not saying that the rich never lose money. They speculate sometimes and sometimes they lose. But the bets they make are asymmetric. Wins result in HUGE wins and losses are easily absorbed.  In order to make sure they have more wins then losses, they make sure they have insider information. I’m not talking about illegal stuff.  I’m talking about being deeply connected with people who intimately know an industry or an asset class that have tremendous track records. Simply put…when they bet on something, they are right way more often then they are wrong. When you find people like this, you tag a long! Anyway, Broadway musicals are completely foreign to me. Yet, they can be incredibly lucrative if you invest in the right one. Frankly, I didn’t even know you could invest in Broadway musicals until I met this week’s guest on Wealth Formula Podcast: Erica Schwarz. When it comes to musicals, she is a true expert and she is going to illuminate this industry for us and how we can profit from it. She will be our guide into this dark cave of Broadway! Make sure to check out the show. Erica Lynn Schwartz As the General Manager for the Emerson Colonial Theatre, Erica is proud to be reopening this historic theater that will provide a wide array of top quality programming for the Boston community.   With all new state-of-the-art backstage upgrades including a brand new rigging system, completely renovated dressing room wings (including new ADA accommodations) and all new accompanying electrical, A/V and technical equipment, the Colonial will not only stay true to its legacy of a pre-Broadway touring house, but will now also present concerts, comedians, speaker series and more.   Prior to her role at the Colonial, Erica was the Senior Director of Programming at the Adrienne Arsht Center for the Performing Arts in Miami, FL.  She was responsible for developing and implementing a comprehensive and coherent program of artistic presentations for the Center. Some of her most exciting engagements included a four night Sold-out presentation of LOUIS CK, launching the 2017 tour for BILLY CRYSTAL’s latest show and presenting THE ROOTS on New Year’s Eve. Prior to joining the Arsht Center, Erica oversaw the licensing, booking and touring division of Daryl Roth Theatrical Licensing, placing shows throughout the country and internationally.  She led a $25.5 Million Capital Campaign for MCC Theater’s new home on the West Side of Manhattan. During her time at Lincoln Center for the Performing Arts, Erica managed all productions at the newly renovated Alice Tully Hall and the opening of the David Rubenstein Atrium. She brought both buildings online – coordinating with construction, development, box office and production teams and produced a wide range of programming and planning including the two-week Opening celebrations, film premieres, fashion shows, etc. Erica made her Broadway Producing debut with Neil LaBute’s REASONS TO BE PRETTY (Tony Award nomination – Best Play, Drama Desk nomination – Best Play, Outer Critics Circle Nomination – Best Play). Additional credits include: STRIKING 12 (Associate Producer) nominated for Best Musical, Lucille Lortel Awards and 1001 (Producer).  She is an active investor in several Broadway shows – most recently IF/THEN starring Idina Menzel and the current smash-hit HAMILTON. Erica spent over 3 years with 321 Theatrical Management working on such shows as WICKED, THE 25th ANNUAL PUTNAM COUNTY SPELLING BEE and I LOVE YOU, YOU’RE PERFECT, NOW CHANGE. Prior to 321, she developed promotions, events and sponsorships at TMG – The Marketing Group for MOVIN’ OUT, DOUBT, Manhattan Theatre Club, and HAIRSPRAY. She is proud to have begun her career as the Artistic Services Associate for The Chicago Shakespeare Theater, winner of the 2008 Tony Award for Best Regional Theatre. She is a graduate of Northwestern University where she holds the honor of being named a Distinguished Alumnus in 2008.  In addition to her passion for all performing arts, Erica is an avid skier. She resides in Miami, FL with her husband and daughter. Shownotes: [00:07] Introduction [09:41] Buck introduces Erica Schwartz [10:25] Erica’s theatrical background [12:39] What does Erica’s job entail [14:16] The history of Emerson Colonial Theatre [16:42] How does the theatre business function [27:43] How to approach the theatre business [44:15] Find out more about Erica and the theatre business eschwartz@avalonroad.net [46:32] Outro

I don’t even watch the news anymore. The advent of the 24 hour news cycle combined with our reality television culture has changed what used to be “news” into entertainment. The fundamental problem with this juxtaposition of news and entertainment is that something that was supposed to be unbiased—just facts becomes something that has to have an angle. Plain old facts just aren’t that interesting anymore. They have to be layered in commentary—commentary that sells. The reality television culture that we live in dictates that anything on TV must be controversial. If it’s not controversial, it’s not interesting. Think about it. Why do people watch reality TV anyway? Because of the drama—we love to watch a car wreck when we can be safe from harms way. Reality television allows for dramatic stories of love, hate and betrayal. That’s what makes it addictive. Facts are not addictive. The irony of the times we live in is that reality TV culture has created a world in which there is, in fact, no reality. You see this from the highest office in the land—Trump says everything is fake news! Now, to be clear, I’m sure Donald Trump does not get the benefit of the doubt from the press but does that mean we throw out the baby with the bath water? In other words, if the news is fake, what’s left to believe. Listen—this is not meant to be written as a political piece by any means. I’m a guy with strong libertarian views but I’m certainly not one to cast aspersions on politicians. I just think we need to start to return to a fact based society. If we cannot at least establish facts, then how can we ever make meaningful decisions about our future? This kind of discourse is probably no more important than on the subject of climate change. A few weeks ago, I had on Alex Epstein—author of the The Moral Case for Fossil Fuels. A lot of you were not happy about that and some of you were quite happy that I had Alex on the show. I just wanted to hear his perspective. What was funny about that show is that Alex did not actually say that climate change is not real. His thesis was actually whether or not fossil fuels are good for humanity. He also didn’t say that alternative fuels were bad. But… it got people fired up on both sides—sort of like a reality show I guess. Anyway, I’m a facts guy and that’s all I’m after. And my guest this week on Wealth Formula Podcast is a pretty hard core alternative energy guy although one who manages to keep his rationality. You’ll learn all about the facts behind solar energy and alternative fuels and also how they might make sense to add to your portfolio. So…if you are looking for some reality, make sure to tune in to this week’s show with Stephen Honikman! Shownotes: [00:07] Introduction [11:37] Buck introduces Stephen Honikman [14:55] Stephen’s counter argument to Alex Epstein [18:54] The economic argument for alternatives over fossil fuel [24:29] Alternative vs fossil fuel – Dollar for dollar [35:22] Why solar? [38:38] Solar energy and tax [51:09] Investing in solar energy [01:00:47] Get in touch with Stephen: https://wisercapital.com    For Solar energy inquiries, email Stephen at: sch@wisercapital.com    For other inquiries, email Stephen at: sch@etachase.com

“Sexual transmutation is the most powerful tool in existence when it come to creation, invention, accomplishment, creativity, advancement, and achievement.” – Napolean Hill, Think and Grow Rich This is a quote from one of my favorite books. It’s in the chapter than no one talks about on sexual transmutation. If you have read the book, you know why. It’s kind of a weird chapter in the middle of the most mimicked book in Self-Help history. In a nutshell, Napolean Hill says that harnessing sexual energy is the most powerful and efficient means of accomplishing our platonic goals. It took me a little while to understand what he was saying, but here is how I interpret this. If you have ever been a teenage boy, you know there is a period of time, for most, where little else seems to matter than teenage girls. I certainly remember that. I’m not talking about anything necessarily seedy. I’m just saying that there is a certain obsession that accompanies that special time in life. It’s hard to think about anything else other than the girls you wish would be your girlfriend or, at least, give you the time of the day. Of course most people eventually find a way to balance these thoughts with other important details in life. However, it’s hard to argue that there is anything more powerful than that kind of obsession. Now hold on to that feeling of obsession that I’m talking about and now… take the sex reference out of the equation. Have you ever been so obsessed with something in your life that you can’t stop thinking about it? I have. When I was a kid growing up in Minnesota, ice hockey was on my mind ALL THE TIME and had it not been for a career ending back injury, I would have played college hockey and who knows how far I could have gone. The funny thing is that by Minnesota standards, I started playing organized hockey a little late. I was 9 years old. When I first started skating I couldn’t even stop. But four years later, I went from the worst guy in the park to one of the best guys on one of the state’s best teams. I was obsessed. I ate, breathed, and slept hockey. That made up for a lot of my other shortcomings. Over the years, I have felt similar obsessions at times in my life. For example, when I decided I wanted to be a doctor, I was obsessed with how I was going to get into medical school. And finally, as an entrepreneur, I have been obsessed with the creation of various businesses throughout my career. The one thing that drives obsession of all kind is the desire for some kind of accomplishment. When it comes to teenage boys, we know what that is. For the entrepreneur, it is something very different. The most successful entrepreneurs I know are not, in fact, driven by money. They are driven by the idea of creating something out of nothing and seeing it come to life. Money…is just a way to keep score. I use the example of entrepreneurship here but it really applies to just about anything. Napoleon Hill’s sexual transmutation is nothing more than a reference to the power of being obsessed with something. Olympic athletes, world class chess players, musicians, you name it. The highest achievers in the world harness that obsessive energy to do extraordinary things. My guest on this week’s Wealth Formula Podcast is a kindred soul. He is as much of a raging entrepreneur as I am and he’s one of the most interesting people I have ever met. DO NOT MISS this week’s show as I discuss the spirit that drives entrepreneurs with Jorge Newberry.   Shownotes: [00:07] Introduction – Obsession [09:53] Buck introduces Jorge Newberry [11:14] Jorge’s story [13:19] It’s NOT about making money [14:48] The entrepreneur gene [19:16] American Homeowner Preservation [27:09] Jorge’s next step [30:22] Note Buyer Bootcamp [37:33] How much do I need to get into this business? [41:08] Take the opportunity to receive 12% return on AHP before May 24th [42:22] Get your $200 coupon from wealthformula.com and attend the Note Buyer Bootcamp [45:13] Outro

Are you a great multitasker?  Are you sure about that? After all, it’s impossible to think about two different things simultaneously (I am a former brain surgeon, I know). So, what does it mean to be a multitasker anyway? Well, I think most people loosely define this term as being able to get a bunch of stuff done at the same time. But for those of us who do get a lot of stuff done at once are we multitasking or do we just have good time management skills? I have to tell you that I have always fancied myself a great multitasker as well. I have warn that badge with pride. In retrospect, however, I’m not really at my best when I multitask. I’m at my best when I “serial task”. In recent years, I have started to realize that multitasking might actually be SLOWING me down. How many times have you been working on something, shifted your thoughts to work on something else, and then come back to the original project—all within a few minutes? Do you not think that you are losing some efficiency when you transition your brain from one task to the other? Of course you are. It’s inefficient. You are losing precious time and energy. In fact, I have come to HATE the idea of multitasking. I still find myself doing it sometimes and it drives me crazy! Not only does it make you less efficient, but it also lends itself to what Zen Buddhists call “monkey mind”—the tendency of thoughts in your head to fling around like drunken monkeys jumping up and down and chattering nonstop.  Do you really think this is a good psychological state to be in? I don’t. Recently, I read a book from a guy by the name of Jay Papasan—he has cowritten several books with Gary Keller of Keller Williams fame. The book is called, The One Thing, and really crystalized for me what I had suspected all along. Multitasking is not good. In fact, it’s actually a consequence of simply not understanding what is important for you to get done in the first place. Multitasking is a bandaid for poor time management skills. And, if you want to underachieve in life, keep multitasking. Don’t get me wrong, there is certainly ways of getting multiple things done in short period of time, but there is a way to do it that will take your productivity to the next level. The One Thing is the best book I read last year because it defines what creates that increased level of productivity. Make sure to tune in to this week’s Wealth Formula Podcast where I interview author Jay Papasan. This conversation was extremely thought provoking. Don’t miss it! Shownotes: [00:07] Introduction [07:49] Buck introduces Jay Papasan [09:00] The motivation to write The One Thing [12:12] Common mistakes to setting goals and prioritizing work [16:25] The Myth of Multitasking [23:44] Meditation [25:09] The art of saying NO [32:00] A straight line to achieving your ultimate mission in life [37:30] Learn more about Jay – theonething.com [40:19] Outro

Funny thing happened over the last few weeks—I learned how much people love the idea of getting rich fast! I’m sort of half way joking about this but we had two funds—both Reg D 506c offerings so I’m legally clear to talk about them. Anyway, one was a highly speculative crypto fund. I emphasized several times that you could lose all your money but that you could also potentially make a lot. After all, I 10X’d in 4 months! Despite the risk associated with the crypto fund, I had soft commitments of over $2 million dollars within four hours of the presentation! The second fund was a value add real estate deal—double digit returns, real property, great tax advantages and recession proof. In many ways, what I consider to be the ideal core portfolio investment. 12 hours later, we had soft commitments of about $1 million dollars. Now don’t get me wrong. That’s still pretty good but it tells us a little bit about our own human nature doesn’t it? I also want to emphasize that it takes a lot of self-control for me, personally, to not preferably reach for the shiny object over the slow and steady one. Obviously I’m doing a crypto fund so I’m not against this kind of speculating. I just want to remind you, and myself, that we also need to focus on our core investing principles: real assets, cash flow, etc. Make sure you don’t ever speculate with money you can’t lose. Of course any investment comes with the risk of losing money but some are obviously less risky then others. For example, I have recently become quite interested in the self-storage industry. Frankly, I had no idea how it performed in recessions and it’s consistent track record over the last 3 decades. It also has some market indicators that suggest that this area of real estate is only going to get hotter and might be the best way to both maximally capitalize on an up market and survive in a down market. Much of what I learned about this area was from my guest on this week’s Wealth Formula Podcast:Lew Pollack, managing director of Reliant Real Estate Management. It may not sound sexy, but one thing I have learned over the past several years is that some of the most profitable businesses are the ones that kind of sound boring. Self-storage is a great example of that. Make sure you listen to the show! Shownotes: [00:00] Introduction [11:41] Buck introduces Lew Pollack [12:45] Lew’s adventure in self-storage [15:37] How does self-storage stand out from other asset classes [19:07] Why is self-storage recession resistant [21:45] Demographic driver in self-storage [25:50] Tax benefits [26:57] Cost segregation Analysis [19:19] Reliant Real Estate Management, LLC [33:24] Lew’s investment strategy [40:55] Outro: Email Buck@wealthformula.com for more information on this self-storage opportunity!

Ray Dalio, legendary Hedge Fund Manager and over-all smart guy has been talking about the coming “financial winter” for the last few years. He’s looking at the same things we talk about on this show all the time–near zero interest rates for a decade, ballooning asset prices, quadrillion dollar derivative markets, etc. Neither Ray Dalio nor I are doom and gloom guys–we were just talking about the facts. But then…something happened. America got TRUMPED. The stock market took off again and asset prices got even fatter. To top it off, the new tax bill created the biggest tax cut for corporations and wealthy individuals since 1986. The result–we ain’t going to be seeing winter anytime soon. We’ve got global warming! That is unless there is a black swan event like nuclear war for example. I saw Ray Dalio on TV the other day and he echo’d that sentiment. He said over the next two year if your money is on the sidelines, “you are going to feel pretty foolish.” the floodgates just opened to massive economic growth and optimism. So what am I doing? Well, I’m investing and trying to find solid opportunities for my investor club. I’m never sitting on the sidelines anyway. Something is always for sale. And if you want no correlation with the markets at all, there is always life settlements. But market exposure isn’t so bad right now. Put double digit gains in a product like Velocity Plus that allows you leverage your gains but take no downside and BOOM! You’re going to make some money. Anyway, we live in interesting times (isn’t that a Chinese curse?) So, for better or worse, make it work for you. Kenneth Ameduri has been doing just that as a professional investor an entrepreneur. On this week’s Wealth Formula Podcast, we will discuss everything from gold to cryptocurrency so make sure to tune in. Shownotes: [00:40] Introduction [08:11] Kenneth’s story [13:30] 2018 in Kenneth’s eyes [15:55] Politics and the economy [22:35] The precious metal market [24:45] The interplay between cryptocurrency and precious metal [31:57] Artificial intelligence technology [36:14] Investing in the booming of AI [38:21] Kenneth’s Crush The Street (https://crushthestreet.com)

The Chinese word for crisis and opportunity is one and the same. I know this from personal experience. My entrepreneurial career was launched because of a crisis. It was 2009 and I had my first job out of training at a company called Lifestyle Lift.  You may recall late night infomercials showing miraculous rejuvenation of aging faces. As it turns out, Lifestyle Lift was basically a facelift mill. Young surgeons like me would sign up and do 3-4 facelifts per day. Lucky for patients, I was actually a very good surgeon and my results were as good as anyone in the organization—which covered most states and hundreds of doctors. It was my first experience being a non-resident physician and the money was more than anything I could have made on my own at that point. I made over a half million dollars in my first year out of training. At first I loved it—this was a novel concept to me. I liked operating and the more I operated, the more money I made! Understand that as a surgical resident I made $50,000 in my final year of training and it didn’t matter how much I worked. After a while, though, I realized that there was a guy above me—the guy who owned the entire organization that was making A LOT more money than me and his fingers didn’t hurt from operating at the end of the day. Having recently read the Cash Flow Quadrant, I started to plot my own business. In reality, I had nothing going. How many people do you know talk the talk but never pull the trigger? Anyway, that could have been me. However, my big mouth got the best of me. I talked to the wrong people who relayed to management that I was plotting a rival business to Lifestyle Lift—which seemed like a pipe dream at the time. Anyway, management was not happy with me. They already were concerned about the rocky relationship I had with the office manager who they had hired from a near bye hair salon. I was not keen on the idea of this moron being my “boss”. She made me clock in and out for heavens sake! Anyway, despite being one the highest volume surgeons that Lifestyle Lift had with a virtually zero complication rate and patient satisfaction that was unparalleled in the organization—they fired me. I was shocked! I had never been fired before. I had never really failed before and this felt like failure. Anyway, I spent the next few days frantically figuring out what I would do. I had a newborn and no job. I had some money saved up but not enough to last that long. I had a choice. I could get another job and make $300,000 per year working for another organization. The problem with that was that I had this sickening feeling that the problem with Lifestyle Lift was not necessarily their fault. Sure I could vilify them—they were kind of an evil organization. There is no doubt about that. But most corporate organizations are kind of evil from the employs perspective aren’t they? The bigger issue I had to contend with was realizing, for the first time in my life, the entrepreneur’s curse. I am unemployable. I’m quite sure that had I taken another job that a similar scenario would have emerged. Somehow I would find myself in the middle of conflict with “the man” and I would probably get fired again. So I really only had one option—I had to start my own business. Now that was a journey itself that I won’t describe here. Suffice it to say that at one point, I was down to my last $2000 in the bank but ultimately turned this crisis into my first multi-million dollar business. Sometimes it takes a swift kick in the butt and free-fall to get you to act on something you were meant to do. Crisis equals opportunity. Without a crisis like getting fired, it’s hard to walk away from the warm comfort of the golden handcuffs. My guest on Wealth Formula Podcast had a crisis of her own a few years back—a life and death matter that made her realize that she had to make a change. The result: a multi-million dollar real estate organization and real wealth. Listen to this show because it could inspire you to make important changes in your own life. Shownotes: [00:40] Introduction [03:00] Crisis = Opportunity [14:42] Buck introduces Kathy [15:37] How did Kathy get started in real estate [23:25] Kathy’s take on our current real estate market [27:50] Markets with a bad reputation [32:12] Dealing with issues on your property [35:43] The Airbnb industry [38:09] Real Wealth Network: www.realwealthnetwork.com [42:42] Outro