Focus on ONE Skill Or Stay Broke Forever | Adam Sosnick (SoSTalks) & Justin Colby 💵 EP119

0:05Ladies and gentlemen, welcome to the Money Mondays. I am here with our guest, Mr. Justin Colby. He's slipped over 3 ,000 homes, but he's doing real estate investing, podcasting, personal branding, speaking, and all the things in between. So we're gonna dive into all those different topics. But first, as you guys know, this podcast episode will be between 32 and 38 minutes. Why? Because the average workout is 45 minutes. The average commute to work is 45 minutes. So we're gonna keep this episode to under 38 minutes for your listening pleasure. How you can help us? Since I've been running this ad-free for like 115 episodes in a row because I want you to have an enjoyable listening experience.

0:41So like, comment, subscribe, share this, forward it to your friends from the past, present, and future. These are the type of episodes where you have a real entrepreneur that's done a real business. You're gonna wanna share these real podcast clips or the full podcast with your friends and people in your office and in your household. Now, we're gonna cover three core topics, how to make money, how to invest money, how to give it away to charity. But first, we're gonna have Justin Colby give a quick two-minute bio so we can get straight to the money. Let's go. So I've been an entrepreneur since I got out of college.

1:09Graduated in 2003 and went straight to door knocking sales. Turned that into a business to business door knocking sales company. Caught pneumonia because I was doing it in Boston, Massachusetts. Then turned that into the real estate empire I have today, but it didn't come without a cost. Lost my home to foreclosure. Rupo man took my car, sleeping on a couch and just decided what I wanted, which is the life I have today and who I needed to be to get it. to the last 18 years. I've been grinding it out, working, hustling, putting together systems, operations, and built what I have today. A lot to break down there.

1:43Oh, yeah. That's it. All right. So first on the make money side, what do you think holds people back from making money in real estate? Do they think they need to have too much money? They think they need really good credit. They think they need to have all the experience. Walk us through what holds people back in real estate. All that. I mean, at the end of the day, the biggest hurdle I think people think about, and it's a myth, is that you need to have money or you need to have credit. You can fix and flip homes today, right now in Miami or Scotchdale or anywhere you want with no money and no credit.

2:10I do it still to this day. I have money. I have credit. I still don't utilize them on transactional real estate. That is different when I buy apartments. It's different when I buy storage, etc. But the biggest myth I do believe on the transactional side is people think they can't get in. They can't flip homes. They can't do whatever because they don't have the cash. Not true. I've proven it time and time again. I've been coaching for 13 years exactly how to do it without any of your own cash and credit. Anyone can do it in any city sitting from the couch. I mean, this is an industry literally very similar to what we were talking about social media.

2:46Real estate you can do anywhere. You don't have to live in the city, which is another myth. Like, I don't know if my market's the best market. You don't have to live there. You could be on a beach in Fiji or Thailand living incredibly well and doing deals in, you know, Oklahoma. It doesn't matter. So that is another thing is people have to realize, like, this is as virtual of a business as you have ever wanted, especially if you're not fix and flipping. If you're transactionally wholesaling, you could do it absolutely anywhere. I wouldn't encourage fix and flipping virtually until you have some resume behind you, to say the least.

3:22so you just said something called transactionally wholesaling what the heck is wholesaling explain to the audience yeah uh that is a very transactional you don't need any money period anybody's money uh you don't need any credit there's no loans you are essentially assigning your interest in the contract over to another buyer so like this is very common in a lot of different industries most notably is the car industry assignments are very common there right but you are contracting a property with a homeowner and then that interest in that paperwork you are signing over to another buyer. So all the terms of that paperwork transfer over to the other buyer and you take a fee in the middle to do so.

3:58And so to some extent, it's similar to being a realtor, even though a lot of realtors hate us. They think we're stealing their business. We aren't e-realtors. We go after different types of clients typically. But there's a fee in the middle. And it's because we put the deal together. We put it all together. We found the buyer. We lined up the seller just like a realtor would. And we collect a fee in the middle. so when someone out there listening they're thinking about making money in real estate they hear about airbnb fixing and flipping long-term rentals buying and holding all the different things that they there's so many options storage units commercial real estate oh my gosh yeah so many options how the heck can someone research or decide or figure out what the heck they go into first so this is another when you pose the question that's another reason people don't go out and go get it is because it's so overwhelming and all of our mutual friends are out there on YouTube and podcast, whatever.

4:54And to some extent, they all have some different version of a very similar content strategy, right? But the reality is if you just remove the minutia of overwhelming, like drinking from a fire hose, our business in real estate is no different than any other businesses on the planet. It is about going and finding and lead generating. That is it. You are trying to lead generate for motivated sellers. If you can find the sellers, everything else will fall in place. But you need to be a great marketer. You need to understand who your avatar is. And then you market to them. Direct mail, TV ads, PPC, TikTok ads are great for this right now.

5:30I mean, there's literally the same business model you would use for any industry right now you would use for this. And by the way, just a little known fact, everyone in my space talks about you need to go find a motivated seller. No, you don't. They are everywhere. They are on the MLS. That is what it is, is people trying to sell their home. Those people are motivated. They're already actively trying to sell their home. Call the agent. Find a way to negotiate a price that works for you as an investor. From there, you have a free deal. You assign that deal for$2 ,000,$5 ,000,$10 ,000. You have an infinite return on your investment, which is your time, and you found the motivated seller.

6:08So what if someone is thinking, you know, I want to go bigger. I want to go buy a fourplex. or a 16 unit or a commercial building that's a million bucks or four million bucks or five million bucks and they want to syndicate a deal yeah what is investment syndication so that's where you create a fund right and so you syndicate based around the investment and there's a lot of different structures so i don't want to i'll talk main idea generically but you know there's a fund that you put your money in and that fund typically will give you a preferred return uh and some funds take ownership and equity which would give you the same ownership and equity and then then some funds are just a debt fund.

6:43It really depends on who set up the fund, what they're doing. But that gives you an opportunity to be in people's world. So Grant Cardone has done this brilliantly, right? There's a lot of people who have done syndications. He's just probably one of the bigger names. And so I have owned several different funds. I don't do long-term syndications currently. I actually would rather almost self-syndicate, meaning, hey, Dan, we have an apartment building in Oklahoma you want to come in have ownership have the tax write-offs have all the upside have everything let's put you in the operating agreement you're now an owner with me so currently I like almost self-syndicating just one by one kind of hand-to-hand combat if you will a larger you know fund syndication brings in you could have hundreds if not thousands of people invest into the fund so what if someone's like you know what I don't really know real estate or maybe I want to do it later.

7:39I'm still researching. I just want to invest into a fund. I want to put in money into this$20 million fund, for example, that's going to go buy storage units. That's right. What ballpark should I be hoping for for return if I'm putting in 100K into a real estate fund? Teens. If you can get to teens, to high teens, I think that would be a good fund. Like 13%, 18 %? Yeah, I think that would be a solid fund. I think if, and that's really what you're trying to target is a return on your investment. So if you're going to go into a syndication, most syndications just want to give you a prep on your investment, right?

8:07And so if you have someone offering somewhere in the teens total IRR, like you could get into the 20s, especially if it's a debt or equity fund, depends on, again, there's so many of these. I'm going to speak in generalities. People that can't spell IRR, what is that? Internal rate of return. And so I just think there's, I like the idea of investing in real estate passively for those that aren't day to day in the grind or don't want to be. right the dan fleischmans of the world are not going to go out there and comp an apartment that might be a great investment for dan no idea he's like colby what colby here's some fucking money i don't know seriously here um because that is the right way to do it is just give me a return on my money and i want it protected so like i own blue chip stock only you do speech after speech about diversity like investing but i'm not a stock guy right i love amazon i love tesla i love facebook right i throw my money at them because it's safe as secure as it can get and i'm out I don't look at it.

9:06Right. Same thing with crypto. We talk a lot about crypto when we're sharing stages. You go deep into that. I love crypto. Love it. I don't day trade it. I just I just throw money at it and say, let's keep going, guys. Right. Like and so for me, real estate is a lot more of the I enjoy it. I love the art of it all. But it is never passive. That's another thing I would tell people. People are like, oh, I want to get into real estate because it's passive. it isn't until you get to scale where you can be hands-off because there's enough revenue coming through the machine that will pay for the property management and overall management of everything but until you can get to scale and scale is the minimum 100 doors none of it is sexy on the way to 100 doors it's just not right you will not make as much money i literally have an apartment right now, 32 doors, that apartment is going to make me roughly$40 ,000 a year.

10:00I'm bald because of this apartment. Not really, but like, it's just a pain in the butt. Like that's not a sexy return. But if you have 20 of those, now we're talking about a nice little day, right? So I just also want people to understand, like, I think everyone should be, everyone should be in real estate. It should absolutely be some level of diversity within your portfolio. Should everyone be actively transacting in it like wholesaling or fix and flipping i love it so i'd say is something fun to do the challenge i see is tv is really romanticized fix and flipping yeah so many shows so many shows and when you speak to the actual people that you and i know the numbers aren't totally of course add up right and so you go there's a lot more loss in the world than there is profits so i'd really rather people like the burr model is probably my favorite to suggest for a newer person is that buy it you rehab it you rent it or you buy it renovate it rent it and refinance i love that model because then you are effectively kind of doing that whole ecosystem of the sexy part and you're buying it and rehabbing it but then you're asking for a bank to take your money back out right usually the bank will give you 75 of that number so you want to be all in for about 75 maybe 80 if you have the right bank you can own an asset for no money in so talk about a brilliant way to invest I'm gonna make an initial investment within six to nine months I'll have a hundred percent of my investment back I might only be making$200 a month which will not change anyone's life but it's an infinite return because there's no money in the deal anymore that is a model I really can lean into when talking to like newer individuals do you mean like buy a place for$750 ,000 for example throw 70 grand into it now you're in for 820 for example and then get it to be worth a million 1.1 and then try to refinance 750 ish that's right and then you'll have a family that wants a nice home in a nice area five grand a month and live there that's exactly right all right guys i'm going to talk to you about the dummy tax so the dummy tax is let's say that dan wants to do a fourplex and i'm going to remodel fourplex and justin colby is going to buy a fourplex on the same exact block both these fourplexes are one million dollars i'm going to go google search general contractor Dr.

12:17Miami. He's going to text his friend. Hey, Robert, how's your kids? I need you to work on this fourplex I just bought. I need you there tomorrow morning at 7 a.m. How much budget should I spend on$1 million fourplex? Hey, bro, it's going to be 80 grand. I need you to stay within the budget, obviously. Tell your wife I miss her and her and my wife should hang out soon. All right. Where do I buy supplies for fourplex? All right, bro, this is what we're going to do. like Justin's going to go through every single detail from the front door to the back door to everything upside down the plumbing the details ring security cameras remodeling the marble the everything that I'm going to go pay full retail for he's going to get a wholesale or at cost he's going to get shipped in one week it's going to take me three months and by the way I found the exact same general contractor but you know he's busy because he's working on Justin's place and he's going to take a half a year for me and do it for him in one or two months you see the difference the dummy tax is i'm trying to figure things out as i go i'm maybe paying full retail or paying for things that i don't necessarily need i'm gonna go get like i'm gonna get like eight marble chandeliers and he's like nobody cares right i'm gonna get and he's like you can get chandeliers too but i'm gonna buy them for 400 bucks each i'm gonna spend 4 000 each yeah like all the little details justin's gonna do more efficiently because he's done it 3 000 freaking times 3 000 times and so whether it's my first time second time third time i'm never gonna catch up to Justin Colby in this example.

13:45And so the dummy taxes that you can avoid is one, research. Two, hire a mentor or coach or get courses. Justin Colby teaches. There's people that have amazing podcasts like him, et cetera. Go learn from people that are out there. Three is do what I do. I co-invest into deals, right? I invest in real estate funds. I invest in fix and flips. I invest in people that I've known for years that I like and I've watched them go through the hard stuff. Can they have failures along the way or lose a little bit of money sometimes? Sure. But if they've done it 3 ,000 times, I'm guessing 3 ,001 is going to be okay.

14:15And the one-off chance that it's not, I'm sure 3 ,002, 3 ,003, 3 ,004, 3 ,005 is going to be great, right? And so economies of scale also is they're going to buy supplies cheaper. They're going to buy everything cheaper because I'm going to go pay for lumber for one house. He might be flipping nine houses this month and pay for lumber at wholesale. You see the point? And so I like to co-invest into deals. And so for you guys, just research, try to understand everything you can before you dive into fixing and flipping and remodeling before you're just like i'm gonna buy a house and i'm gonna buy a fourplex and i'm gonna remodel it's gonna be great it looks romanticized on tv like justin was just mentioning but do as much research you can listen to the podcast buy the courses go to masterminds hire the mentors because it'll literally change your life forever just learning all the tips and tricks okay someone's finally made some money right yeah now they got it they've done six houses they got their swagger now they're in the game maybe they even quit their job because they got 12 grand a month of rental income coming in they're doing it yeah what is the turning point where they should feel comfortable to actually bring people into deals with them so i don't love so here you know it's funny after i don't know how much money i've raised over time over real estate but a lot i don't love when people don't quite have the experience to bring people in for sure because now you're creating a friendship that dan and i can be the closest friends of all time and then the one deal the one deal right that takes 14 months instead of nine months and it becomes a loser and you go sorry dan and then now the taco nights aren't as fun for me and dan and it's like this so i i'm really cautious there i'm not saying you can't but if you do it i would say be extremely prudent make sure they're well aware of like you're an investor there is risk of loss if we lose together you will eat 50 of that loss and i will eat 50 of the loss in paperwork in writing notarized on documents because the one time i didn't years ago i found myself in a three-year lawsuit and i would say that because i've raised a lot of money but i keep it very straightforward of like it is transactional you're looking for a return if there is a loss we share that's it so I I think it's it's up to them I have a private client right now that just did this with a friend he wants to be a little more ambitious I'm pulling him back and saying hey your guy has the checkbook I get it but like do one or two with him let him create the certainty that this is going to work for you guys and then let him lean in to like hey let's open this up then it's like all right as long as the paperwork's there um I would have a lawyer do it because the last thing you want to do is have a discrepancy of what does the loss mean to everybody because that's where it gets sticky is when it's all going great everyone loves each other of course the one deal that is an actual loss then you have to deal with it so i would tell people wait as long as you can and then i would also then say if you were going to do i wouldn't always do it on flips and how i would structure it on flips if if you're going to do it anyways and not listen to me that's what people do um i would give him a return let's just say i give dan a 10 return and or 25 of the profits that way he has an opportunity that is more enjoyable for him that like if we hit a good deal he's going to be making more money by having the profits so you have kind of a a lever that gives you both opportunities and then do it more in the burr model than the fix and flip model because the burr model at least you have the opportunity to fix and flip or keep it as a rental because you're renovating it either way so you need to underwrite to a burr because that way if dan and justin found a deal that the contractor took too long the city stopped us whatever whatever we can say hey let's just hold this together it's not ideal but at least it's not a loser now storage units yeah i have become mentally obsessed with them the last couple years i don't have any i'm part of two funds that i invested into that have storage units so i have exposure that way but it doesn't feel the same as like you know getting in there exactly and so i like it because there's no bathrooms and there's no tenants that's why i like it i'm like i love that concept especially at scale yeah right because we see some of our mutual friends like bobby castro's got 700 million dollars apartments and brad sumrock's got 11 000 units and vena jetty's got over a billion in commercial like we have friends that have got one billion dollar plus of apartments but also hear some of the stories of like i couldn't get i couldn't get the tenants out and especially if it's california you know those type of things so they've built up generation of wealth in this business so obviously the greater good is definitely there but i have been thinking about man storage units are really interesting to me because i i am not going to be active in it i don't want to like hear about tenants and situations and plumbing and blah blah so talk us through the storage unit side you mentioned that you've done a little bit of that What are your thoughts on it?

19:14I have one unit I would love more. It was brought to me by a storage unit. He's a partner. I'm a partner in the deal, obviously. But that's his main business. And so he basically came to me and said, hey, I'm looking at buying several. I could raise some capital. Do you want to be involved? And I was like, absolutely. But the idea of why I want more is because of what you're talking about. Like, it's a pretty straightforward business. You want to there is a CapEx side of that. You want to create the valuation really fast to go as high as it can really fast. and then you kind of just are going to end up sitting there.

19:45So things like security systems, paint, a gate around the complex, those are like your rehab, right? I mean, that's really the extent of it. You essentially don't have any tenants. You do in the sense of you have a client that pays you every month, but if they don't pay, you lock their stuff and then sell it in 30 days. It's the most easy transaction. It's so spreadsheet-driven that anybody that is good at spreadsheeting math like at a little bit can look at something and say, that's a good ROI. It's that simple because you don't have the variables you would with a single family home or an apartment.

20:20You just don't. There's not the human component of it. And so I love them. If I had more time in my life, I would probably focus more on that, but I've invested so much energy time in the residential space. I'm there. Right. But, um, I would say most people like a Dan Fleishman watching this, listening to this have some intrigue in storage it is a great place to put your money stuck in my i'm thinking about right now yeah like i just like storage the storage unit industry is so unique because you have the big box storage units that we're all aware of those massive ones right it's hard for us little guys to kind of do that unless we build them but you can build them so one of the things that my partner and i were looking at is we were looking at a old is it a toys rs in vegas oh really but then you build so you pop the top of the toys rs yeah take it to five stories as long as the the zoning can happen and then you build an internal storage facility and everything's inside the store right so there's a door just like a store and then all the storage facilities are inside and it takes a boatload of money i think it was like a 20 million raise we were going to have to do if we wanted to do it.

21:29But oh my God, it is just, it prints money after that. And it's all inside because Vegas has that extreme heat and whatever. And so outside storage isn't ideal. No one ever canceled their storage units. They just forget it. And then you lock it and then sell it. And it's just, I love it. But there are different verticals, right? Like the really kind of small mom, pop stop people, you want to, like you and I would only really want to be looking at 50 ,000 square feet or more. It would be where we would want to be investing or buying or whatever. But there's a lot of these like 20 ,000 square foot spots in Tulsa, Oklahoma, that you could go make four or five grand a month.

22:08And maybe that may not feel like a lot of money, but like... Compounds, yeah. You go get fucking 100 of those things. Right. Right? And it's like really not. And you don't have to even do everything I just talked about. Like those little ones that are 20 ,000 square feet, no real need for security. They are smaller. you guys all know the ones we're talking about like usually kind of on the side road of the freeway like it is just awesome right and so i'm like you i have this like want and more to do it i just got to find the time so what do you spend the time on which what are you into the most right now so last year i bought four apartment complexes um but they're all burnouts essentially Like they're all like vacant and just destroyed.

22:52Yep. And so a lot of my time right now is turning those, right? Because they are great upside opportunity if done right. Are there tenants or they're not tenants? No, there's no tenants right now. Got it. So all the equity I raised is equity, no debt, meaning I don't have to pay monthly. And it's all for the upside. So again, you call a day and say, hey, dude, I know you need a tax write off because you're going to own it with me. You want the upside. You want a resume that has commercial on it. we'll have an exit in about five years i can't pay you monthly in a loan style debt but i'm going to give you the equity that gives you all the other stuff in fact i'll give you a pref and i'll give you 10 on your money while it's accruing and then when we refi out with the bank i'll make sure you get a minimum that your interest that you're owed plus whatever appraisal we can get i'll give you as much as your principal back so your principal or i'm sorry your interest plus your principal on the refi there's a chance you get 50 60 70 80 90 of your principal back on the refi if it's done right and you're in it and have all the upside all the tax right it's all everything so i like the vacant model the downside of the vacant model there's no money coming in right so when things go bump in the night you're like oh man there's like you just got to stroke a check for that there's nothing to do there's no money coming into the the company right but there's there's pros and cons to both right i think i think the next one i'll buy will be performing to some level because when the bumps go in the night you go oh no okay daddy's got to go right cut that check right but the upside is also that like we can really incentivize the value so we're taking a general area that probably would have a two million dollar type of apartment and because of how we're building the units we're going to get it to like 3.5 million which will then lift up that area and then my thought is if we can start to control more of that area we'll kind of have this resource of a like a localized like economy that we built that lifted the values because the town of Birmingham city of Birmingham they're going through a massive gentrification the city's putting like 50 million dollars in to create this entertainment district and our apartments are right there like a mile away okay so it's strategic in that sense of like if we can just value add this whole area that's the game so there's one question that I ask on almost every episode and i've never gotten the same answer before you go build up thousands and thousands of units and then 5 000 units and 8 000 units 10 000 units and maybe 50 years 100 years from now however long until finally sadly it's time that justin colby passes away but you've got 10 or 20 000 units you've accumulated what percentage of your net worth do you leave to those kids oof something i think about daily you and i are younger parents right our kiddos are young still so i think about it i was just so i have a philosophy you only fly first class it happened again last night flying home from phoenix flying first class i happen to be sitting next to the coach of ryan surhant cool and so next you know now like we're talking about ryan coming to begin this event that we're so that will be a big surprise i don't want to be leaking it, but he has, anyways, I say all this to say, um, one of the flights was a financial advisor.

26:07He was in his seventies. He looks at me and we're having a great conversation and, you know, we're just talking about life and money and blah, blah. And he says, I'm going to give you the best advice I could ever give someone. Invest in current living. And as I just said that to you, I got shivers. Invest in current living. He was like, I can't tell you how many incredibly wealthy people I have managed their money, been there financial for, including myself. And at the end of their life, they could care less about all of it. And all they wanted were the memories. All they wanted were the moments, the experiences.

26:44We have a mutual friend, Kent, like he just talks about collecting moments. And the older I'm getting, the more I'm like, fuck it. I don't, it's not about what's left behind like I don't want entitled children I don't want the the trust fund baby not saying they're bad but more often than not they become entitled they don't know how to work like you know how to work and I know how to work and I'm leaning towards like I'm gonna let you work for it and if there is a payday at the end of this thing you're not gonna see it until you're a lot older and so that's where I'm leaning I don't I don't have a set number and whatever and you're going to get it all.

27:18And I think it's more of a, like, I'm going to teach you how to work. You're going to go get a job and you're going to go to college or not. I'll probably say, do whatever you want to do. And, um, yeah, you'll get it later on in life just because I just, I want to invest in my life. Right. And, and with them, I want them to be along that journey while they're young and into their teens and twenties. Like I want to take family occasions with my 25 year olds and, you know, pay for them and do that kind of stuff. Like I'll pay for that while I'm alive and they're alive you guys want to go stay at the four seasons and wherever the hell great daddy's got it i'm all over this shit but like leaving him that kind of money i'm not the biggest proponent of it at this point i just it's really hit home invest in current living all right so you've got your event coming up april 18th and 19th yeah do me a favor look at this camera and explain why should people go to your event or why should they tell their friends to go to your event The name of it, the concept of it, all of it.

28:16Creators Cashflow Conference right here in Miami, April 18th and 19th. It's an event that your boy, Dan Fleischman, will be speaking at. This is for anyone and all people who are creators. Many of you guys are out there creating content already, whether it be Instagram, TikTok, podcast, or otherwise. But you're not creating a business out of that same content. So it's an expense to your bottom line and not a revenue generating activity. Many of you are brilliant. your mind and your heart are in the right place and you have something to give the world. But in exchange for the value you're giving the world, you should be looking at it as a business and creating income from it.

28:54So all of you out there right now that want to see Dan Fleishen, myself, Dean Graciosi, Ty Lopez, Coach Stormy Wellington, and I think a couple of special guests, other speakers that we just talked about, we are going to be live in person here, April 18th, 19th. And there is a virtual option as well that if you can't make it to Miami, you can actually get the virtual option. It's going to be in the move studio where we're recording this right now. I'm so fired up because as someone who's finally figured out how to monetize my brand, monetize my content, I want to empower all of you. It doesn't matter if you're doing YouTube, TikTok, podcasting, create that value for others, but then create it for yourself by monetizing it and not just making an expense.

29:37CreatorsCashflowConference.com. Awesome. All right, guys, make sure to check out Justin Colby across all social media. Check out the event that's coming up this weekend. It's really exciting. The timing of it's perfect. This episode is designed right to come out for your episode, for your event with Drew. By the way, where can people find Drew? Where can they find his entire social? Maybe they want to rent out a podcast studio when they're in Miami. I would tell anyone, if you're going to be in Miami, make sure you're doing your podcast here. The Move Miami, go to social media, go to Instagram, go find Drew at The Move Miami.

30:10He and I are putting this on together because he understands how to create a profitable business around what we're already doing, the lights, the camera, the action, the content. There's a revenue stream right here for you that he's gonna teach you how to do it yourself. You have a studio, may not be this big, but you can find four people who will probably pay you to use your studio that now make your studio free or revenue. So again, The Move Miami right here in Miami. if you're here make sure you're renting i mean drew got so busy he had multiple studios now he's getting the keys to a bigger studio like it's just it's been amazing to watch what he's wild it's the best podcast studio in the country all right guys check out themoneymondays.com have discussions with your friends family and followers from your past present and future about money we can't keep thinking that it's rude to talk about money we have to have these discussions with your friends and family about bills taxes accounting debt loan lease a car buy a car there's so many questions that we have talk about it it's important it will change our society if we can have open discussion about money appreciate you guys visit us at themoneymondays.com check out justin kobe across social media drew's the move and everybody in between and check out the cash flowing conference coming up this week ladies and gentlemen welcome to the money mondays i have a guest here that i've known for many many years from live events from the podcast space for mutual friends and everything in between.

31:29But as you guys know, on the Money Mondays, we cover three core topics. How to make money, how to invest money, how to give it away to charity. So what I wanna do, as you guys know, is I'm gonna have Adam do a quick two-minute bio. But first, what I wanna talk to you guys about is, it's super, super important and why this podcast exists, is you have to have discussions with your friends, family, and followers about money. We grew up thinking it's rude to talk about money. I think that's ridiculous. We gotta talk about loans, finances, taxes, leases, understanding why groceries are so expensive, what's inflation like we have to be able to talk about money because it's real life it's part of your daily life is paying bills paying your car note paying rent what if your friend borrows 300 bucks how do i ask for it back these are things that go on in our real lives and no one talks about it we just graduate 18 years old and they throw us out into the world and even in college they don't teach us about money and so that's why i'm proud of this podcast because the amount of discussions that happen due to the people that are on this podcast like my friend adam over here so i'm gonna have him do is give a quick two minute bio so we get straight to the money so uh i love the fact that i'm being interviewed by you because when i first met you it would have been 20 i want to say 2018 ish at that event and i was yeah an event here in miami and i was interviewing you the one hotel about money exactly for one hotel and there and i was just starting my show first time i met roger rojas by the way same day that's his brother right there my friend geo that's what the worlds are colliding and i just i had the 20 year anniversary with iri about a party we threw when I was in the nightlife world.

32:55It's a very fortuitous meeting right here. But yeah, I'd started a money show in 2017, right around that time. Gio right there, Roger's brother was the producer. And I was breaking into the money game. But prior to that, it's so funny how you evolve as a content creator, as evolve as just a human, you know, living your life. But I grew up here in Miami and if you asked any of my friends if Adam would be talking about money my Instagram is sauce talks money my show you know sauce money like I'm on PBD like we're talking business and money they'd be like that broke mother what but I grew up here in Miami I was a jack of all trades nightlife kid tried to I was doing stand-up comedy I'd try to become a sports agent.

33:46I tried to become a real estate agent. I was doing sales. I was a substitute teacher. At 25, I was my brokest friend, crashing on couches, making no money whatsoever, but establishing great connections and understanding the value of relationships. So I'll never forget. I grew up here in Miami. A lot of people are like, have you ever talked to people from Miami? They're like, so where are you from? I'm from Miami. It's like, where are you from? Miami. It's like, where are you from? Yeah, I moved here from Cleveland like four years ago it's like you're not from miami bro right so i i would i grew up in miami in the 80s and i was the black like my family was the black sheep that moved out of detroit minneapolis into miami but uh i always had great relationships and then i said one of my good friends mikey if he ever sees this he's like what's up adam i just made 70 grand whoa i was like this is 2006 yeah 2005 2006 yeah i'm like oh you made 70 grand he's here that's pretty cool he goes this year i made 70 grand this paycheck it was like my wolf of wall street moment where i was like you show me a paycheck 70 000 i quit my job i work for you yeah so that's literally what i did and uh it's so funny when i saw that scene in wolf of wall street i did that so uh i moved out of miami got a job in boca um i was a nightlife guy with my good friend keith menon and I was working with Alan Roth and Tommy Pooch.

35:13I was doing all this in my mid-20s. Irie was throwing our DJing the parties that we threw just 20 years ago, literally. And I said, I got to go to Miami because I just was not focused. I was just making no money. I was sort of going nowhere. And I got a job as a cold caller at a startup financial firm and moved up to Boca, got focused to all the young men out there it's play the long game um you know for your first 20 years of your life don't screw it up don't go to jail don't get a DUI don't get arrested don't die your next 20 years try to make some freaking money and then there's a you know two more phases after that we'll talk about as far as far as philanthropy but went up to Boca worked at a company I still 18 years later run the firm the sales at the firm my first year I made five $5 ,000 Dan Fleischman$5 ,000 the whole year the whole year but they told me stick it out you got this create relationships keep calling you know you'll make six figures at the most I've ever made in my life up to this point at age 26 was$20 ,000 I was not a money guy whatsoever boom I stick it out um grind and the next year make 100 grand oh my god it was the coolest thing I've ever had sure but you know people say like you know fast forward 10 years later i'm 35 i became a millionaire you know playing the long game they said how cool is it to become a millionaire i go let me one of the coolest thing i'll ever had in my life the coolest feeling i've ever had in my life i was 27 years old and i had 10 grand in the bank for the first time in my life and i thought it was the coolest kid in the world and i was dating a girl at the time and i remember going to the uh atm to pull out a couple hundred bucks and i accidentally dropped the receipt yeah and i I was like, oh, babe, can you grab that?

37:06And it was like, you know, 13 grand in there. She's like, oh, I was like, that's right, baby. Baller alert. So I stuck it out. I became an expert at this very specific thing in finance, wholesaling, insurance products. And every year my income grew and grew and grew and grew. And I developed a reputation. That's why I met Patrick Bet-David at an insurance conference in 2012. We curated a relationship. And then he kind of inspired me to start doing content. You were one of the first guys I ever literally interviewed, literally, at that event at the one. And then in 2020, after like probably six months of sort of negotiating with Pat, kind of figuring out what that would look like, I became the first talent that Valuetainment and Patrick by David signed.

37:53I moved to Dallas and we started the PPD podcast and the rest is history. But to this day, that 10 grand I had to my name was the coolest feeling I've ever freaking had. So everything else here is just icing on the cake. So fun fact, that Wolf of Wall Street line is one of my favorites ever. Yeah. I did podcast number one for the Wolf of Wall Street. With Jordan Belfort. Yes. I kept pushing him to you got to start a podcast. And so I got to be episode number one. Okay. This episode is about you. Yeah. It's about us, Dan. It's about us. So on the make money side, talk to us about what do you think holds people back from making money?

38:30is it mentally emotionally their environment what do you think holds people back from actually going out there and finally making real money so uh everything is about having about who knowing who you want to be and having a system so you know if you go to college the easiest thing you can do is uh understand the roi of your major pretty simple all right if you're going to become as a career as an editor what do editors make right what do lawyers make just kind of understand what an engineer makes. What are you going to make in your field? If you're an entrepreneur, that's a totally different thing.

39:04You might make nothing. You might make millions. You don't know. So it's sort of rolling the dice. As far as making money, the best advice I can give is this. I told you the story. I went from being a broke jack of all trades to becoming a specialist at one thing. You know, should you be a generalist or should you be a specialist? So I can tell you conclusively being here in Miami um I meet so many people that do several things and you don't know what's real and what's not real you'll meet a guy he's like what's up man I just want to let you know like I'm a crypto guy but also I'm a promoter at the club and also this weekend we're taking the yacht out I'm a yacht captain also I do a blackjack game at my house every single night I'm djing every Wednesday night at Bayoli if you want to come by uh when a Friday nights I'm going to be over at 11.