Transcription
Where's my applause? I get no applause. Come on. Where's the crowd at? Where's the energy? There we go. Thank you. Thanks. Thank you. You're far too kind. Far too kind. All right. You guys having lunch? All right. We're in the VIP room, mate.
>> Oh, we're in the VIP room. Got it. Cool. What's up, VIPs? Uh, all right. I'll be on this camera right here. Um, I guess I got the chat over here. So, uh, cool. We're in the VIP room. I see. Uh, let's let's hang out. Let me get my chat opened up. We got a little bit of time. I think about 30 minutes before we jump back into the main session. What do you guys think so far? What are you guys thinking so far? I see Mara. She's giving me two clap. All right. Thank. Thank you. Thank you. Very good. Very good. Awesome. What do you think about um the opening session and what we're really building and the difference of how the entire world, you and I, individuals, personals, personal personal households um and businesses are all trying to increase your revenue but not trying to build your wealth. What do you think about that? The difference of trying to increase your revenue versus build your wealth. It's a big shift, right?
How many of you guys are business owners? Anybody? Anybody business owners? I see Jay's driving one hand, left hand right in there. Good job, Jay. Okay. Do you know Do any of you guys like to grow your business? Do you guys drive to grow your business at all? I mean, the goal is to grow your business, right? But why? To make more money. Do you know there's only two ways to grow a business? How many ways are you trying to grow your business? There's only two. Anybody know what they are? Drop them in the chat. Only two ways to grow a business. Get more clients. Okay. So, so there's one. Get more clients. So, if I get more clients, then I make more money, right? More people my product. More people my service. Looks like is that Bruce Bruce Parson a dentist? Is that two on the wall behind? So, I need to get more clients. If I get more clients, I increase revenue, right? Anybody ever sold a business? Anybody ever sold a business? John John sold a business. When you sell your business, what is somebody buying? Now, it depends on the business, I suppose. In a typical service based business, one of the main assets they're buying is the customer base, right? The customers. Now, sure, if you're tech company or drug company, proprietary, whatever, but like you're you're typically you're buying the brand, right? You're buying what what they call goodwill, the customers. That's the asset, right? So, in a business, if I'm trying to grow my business, and I understand this now that I've reframed it from you for you, I have two ways to grow my business. One, I can get more customers, which means I increase my sales revenue. That's what everybody focus on. Did you know that's the hard way to grow a business? The hardest way, the easier way is to increase the value of the business by making your core asset, your customers, more valuable. How do you make your customers more valuable? You get them to buy more things or buy more often. That's it. It's so simple. If I want to increase, if I want to grow my business, I either one get more customers or two, make my customers more valuable. And I make my customers more valuable by either one, selling them different products like you bought this, might also bought this or give them more frequently. But listen to what I'm saying. If I want to grow my business, there's two ways. Increase the revenue by getting more customers. That's the hardest thing to do. or make my customer viable and I so that my my customers is my business is my assets. That's what that's what people buy in my business. That's what we're doing. Most of us are trying to go make more money. That's the hardest thing to do. But I can just take my biggest assets and grow those. It's way easier way easier. That's in my control. I can do that.
Now in a business, a typical service based business typically is worth about three to four times profits. So my good friend Cody, she sells like how how to buy more businesses. So these are like your brick and mortar mom and pop businesses. Anybody know Cody? Buy more boring businesses. Couple you guys. So you know this is this is your laundry mats, this car washes, this is your your dry cleaners, right? A service based business typically is going to sell three to four times. Meaning it has about a 30% profit margin. So it's worth three times that. So if I'm doing 300 grand a year of sales, my business is worth a million dollars. If I increase my sales from 300,000 to 600,000, that's pretty good, right? I've added I've added $300,000 of revenue. $3,000 revenue. That's amazing. But I added a million dollar of equity. Listen to that. I added a million dollars of equity. It's not the revenue. It's the equity. It's the asset. It's the collateral. Why does that matter? Well, one, if I sold the business, I get an extra million. That's pretty good. I don't have extra million 300,000 but now I can go tap into $500 $600,000 $700,000 of liquidity of capital that I can think more money with most small business owners never figured this game out. I'm trying to grow what's called the EV. Anybody know what EV is? Anybody know what EV is? If you guys are investors, you know what EV is? Enterprise enterprise. No, not expected. I already enterprise value. The value my wealth is what the what the company is worth, not the revenue. Just like us as individuals, it's my my balance sheet is what we're worth. Our net our net value. I call it scorecard. I call it scorecard. So that's the shift.
I see your hands up. Let's jump in just in cop. Can we can we bring him up? Is anybody doing that drill or Tanner? I didn't see. Sorry, you're hitting by the TV. Uh Justin, you got your hand up. What you got?
>> Yeah, I just want to say thank Mark. I have a marketing agency and I able to buy some like policies and that's my ass.
>> Okay. Did Did you ask something? I'm sorry. I didn't hear that. That's why I got dropped drift off.
>> Uh yeah. I just want to know like I want to start to acquire businesses because I feel like understanding marketing sales is a good thing for those businesses. Um, I have opportunity to posit the future to buy a paying company and uh, I guess what advice would you have? I'm 26 years old and I'll um, I want to just get after.
>> Yeah. So Justin, I'm gonna give you an answer that everyone else should listen to. One, um, most of the coaching is gonna happen as we obviously start getting through these um through these lessons. So um, level is going to be super high level, but what I'd say just sort of categorically first Justin about that. Statistically, nine out of 10 businesses fail.
>> Sure.
>> I think that going and buying businesses when I haven't proven myself that I'm good at owning and running businesses is setting myself up for disaster. If I was if I wanted to learn how to surf, which I'm telling you surf, let's say you want to learn how to surf, you never surf before. I wouldn't take you to Hawaii pipeline where we wave for 30 feet and breaking on shallow reef. I take you out to a sand bottom where I wave you like one foot and I start you there. So I think that buying businesses is set up for disaster. Now if I already have a business let's say for example I like Dustin I like service based businesses. Service based businesses don't require any startup capital. They require my labor. So I could buy a pressure washer at home for 202 bucks and go pressure washer and driveways and I can pick up another account for 500 bucks to pop that I can hire a couple kids to run the pressure washer for me and then I could buy the other pressure washer business to increase my customer base and then once I have a house to do the pressure washer I see if they want to paint their house and if I paint a house I can fix the roof. But I might try to like cut my teeth and figure out what kind of businesses can I get going so I could learn about business. How do I grow the business? How do I market the business? How I manage the business? How grow the customer? All those things versus buy business. took a business loan and I put my life savings into it and now all of a sudden my life savings are at risk. I put this loan at risk. I'm at risk now because the loan recourse loan and now I'm going to run a business out. So that that's my general answer. Now there's nuance to this. So like obviously if you buy a franchise a lot of times they give you like here's here's the package. Here's the manual and we'll train you. So you want to buy McDonald's and get work for a year before they even sell you one. So there's nuance to this Justin. So it's a broad question broad answer but those are those are my thoughts around it.
I appreciate that. Um, yeah, no, I've been doing advertising marketing business for the last 5 years and uh, yeah, I guess just knowing when it's time to branch out into that next thing. It's it's going very well. I think you can put in more systems and stuff like that to make it run better and uh go
>> and I don't know if there's a branch out.
>> So,
>> so you have you have a business now.
>> Yep.
>> Right. So grow the business.
>> Okay.
>> Like you know what I'm saying? Like so grow the business. Now advertising and marketing that's that's so broad.
>> Sure.
>> I might go buy a couple blimps and start I might go buy a couple planes and start driving banners around by the beach. They do that here by flight. I might buy bus stops. Like I I have I have a friend in Texas. He owns like a thousand um billboards. Like marketing is very broad. So you could go like there's a million directions that you could go. And so typically what I would do is like what is adjacent to what I have? What do I have some expertise that I sort of know? So like lot of like my balance sheet. What are my biggest expenses? Well, I'm paying this guy to do all my advertising. I'm buying all this inventory here. Maybe I should buy that business and bring it in. So now it's like adjacent. It can help me grow my customer base really quickly by bringing in a business that's similar enough that I feel pretty safe running and I can add a lot of time. I want to buy a business like I only want to invest in businesses that I feel can help.
>> Yeah, if I help them. So anyway, um anyway, hope that's helpful. Thanks, Justin. Let's jump to somebody else here.
>> Hey Claire.
>> Oh, sorry. I was muted. Hey there, Mike. Um, so I'm I'm uh I've been working a W2 job for a few years and I got that so that I could buy a house and I end up buying a house this last summer and I'm kind of just at the starting point with a lot of things like I've invested in Bitcoin and some other crypto vaults. I started an Amazon business that took me a year and a half to launch and it's just launching now but I put a lot into it. I'm trying because my W2 job just gives me just enough to live on. I've been spending my free time trying to like generate all these different income streams, but I'm kind of running myself thin, keeping track of everything. And I'm just kind of curious like part of me thinks I mean I gota I gota keep I gota sell the product that I made with Amazon and it did get me to start an LLC and I can use that LLC for like all the other kind of work I actually want to do which is music and different kind of like theatrical events which are not big money makers but in the long run it's it's what I want to be spending my time on art. So that's why I've got tried to get all these different entrepreneurial things going that I thought could make me money quickly so that I could actually just be an artist most of the time. So I'm just trying to figure out like how do I um create this like long-term wealth and freedom without it taking over. Part of me thinks I should just like invest in Bitcoin and um watch that grow and then borrow against that from a real estate.
>> The question is how do we get there? Like I'm only at the beginning. I'm not where I where I want to be. How do I get there is the question that we're as that we're after. Um, so what I believe one of the biggest success principles that I've built my life with is as a princip I learned from Tony Robbins which is success leaves clues. So that means you find other people that have achieved something that you would like to achieve. You find out the clues that they've left behind. What is the process they went to get there? And then do the same things. Now a lot of people misunderstand this and they they see oh look at this guy. Like for example in the content creation niche obviously you know my YouTube videos and I'm on social media. Maybe the biggest guy in this space is Alex Mosi. So I go, "Oh, I'm going to do what Alex Ramosi does." Or maybe the biggest podcaster is like Patrick Bet David. I'm going to do what Patrick Bet David does. But the mistake is it's not what he does. It's what did he do to get there. So I can't do what he's doing. I have to do the same path that he went on. Let me give you a better example. If I went to the gym, I went to the gym and there was some big dude over there lifted 400 lb on the bench. And I'm like, well, I want to get big like that. I can't go lift 400 lb. I'd kill myself trying to lift it. What I have to do is do what he did. I have to start 50 lbs and I have to work my way up to 400. So Claire, the answer that you're after, which is not the answer we all want, but we see the target and we have to build now we have to now we have to go down the path and we have to build that up. So you're in the right path. You at least you understand where you want to go. I would like to get my asset base built up enough so that my assets can pay for my life so then I can do my art and my music things I like. They don't make a lot of revenue. So I need my assets to pay for my life so I can do that stuff. So then the so then the goal the problem you need to solve is how do I get my assets built up enough that can do that. Now if I want to lift 400 pounds it might take me several years to build up that much strength to do that and for you to achieve that goal it might take you a few years as well. Um, but it's not we all have a path we all go through the process. We all put in the work and that looks like different things for different people. You know, what's the amount that you need? How much do you have to start with? Think about like think about if you want to come to my house you would use Google maps on your phone and you wouldn't say like oh take to Mark's office. You have to put in like a very specific street coordinate, street, address, street name, and they would ask you where you at. They put in a very specific address and then and then they would give you route options. So like, how much money do you need to chase your music? Is it not? I don't know. How about a million? No, no, no. What it is is $4,720 a month. That's the number. I started with two numbers. What's the minimum number that takes me not to be homeless? I don't want to be homeless. What's that minimum number? And then what's my ideal number? So for me not to be homeless, it's 4,74 or 14,000 or 40, whatever that number is, then cool. It is what it is. That's where I want to go. Where am I now? I have $0. I have a million dollar. I have $500,00. Okay. So now how do I take what I have my starting point, hell island, and how do I get to heaven island? And then you build up. So, it's going to take some time. You're in the right place. By tomorrow, I think I have a much better sort of route options, freedom, freedom to make up that account.
>> Yeah, that's really cool because um, you know, just considering how much I actually need in order to have that freedom, that's more important to me than having hundreds of millions of dollars or something. But just to
>> in million dollar, we need money to pay Linux every month. That's what we need.
>> Um, okay, thanks so much. Uh, hopefully you'll get those answers here. Um
>> yeah, let me just address a couple questions here in the chat real quick. Um, as far as Mike stand, I really say probably tomorrow because I have my tax strategist in in in here and probably everything's going to be answered there. Um, Ros says you have to reference borrowing against your assets Bitcoin or in this topic value of business you own. How do you actually borrow against these things? I mean, how do you borrow against things? I mean, we're in a debt based debt based economy. You can borrow against anything and everything. I can literally take my electric drill in my garage and go to pawn shop and get a loan against it. I can take my vehicle and get title loan against it. I can get a whole line against my home. Like so how do you get a loan against things? I mean, it's a pretty broad question. You can get loan against anything and everything. You can get a loan against your paycheck next Friday. You can literally get a loan against anything. Uh, I sold my business. I don't want to work anymore. I just want to I just want the money to work for me. Lori says, "Well, Laura, you're in the right place. I'm guessing by the time we get through to like lunch, well after lunch we're going to do the implementation plan. I think you're not everything you need. At least you know the numbers. At least you know the numbers. I don't know how much you need or how much you have. So those are the two no variables but you have the path. We'll have that figure about tomorrow. Um, Priscilla says, "What about when you start thinking about incorporating a family treasury or bank?" Uh, I don't know what you mean about incorporating a family treasury bank. I think what we're teaching is how to run like a treasury like a treasurer. What amount do I need to start running my wealth like a treasurer? 10 bucks. That's what you need. 10 bucks. Is that enough to be 100% living my assets and no more? Obviously not. But it's like I have to start with 20 pounds for 400 lb um, right away. Um, can I borrow against a lot that is paid in full worth 25 cash? Then most likely you're in Florida. It's waterfront. I'm sure there's probably people. It is pretty hard to get loans against land a lot of times because lands don't produce any cash flow. So it can be it can be kind of hard. You could create a lease out. You get hard money loans. Yep. Uh, I see someone said it's kind of going pretty quick here. Um, Barbara, I don't know if we can maybe for the rest of the VIP sessions, but is it possible we could use a webinar instead of a meeting? That way we have like Q&A. Might make a little more helpful for me.
>> Yeah, I mean for the VIP running it's okay that way we can just get to more um questions. Um, and maybe I can't control the chat so maybe we could scroll back up. Yeah. Right there. Uh, Grace Marie says, "Much, everyone want to break out session one, do the same thing." Can you borrow against Bitcoin for anything? Sure. I borrow, I say, "Hey, you give me 100,000 against my Bitcoin." They w to my account. I could use that money for anything. Can I use it for living expenses? Yes. Can I use it for a house? Yes. Do you invest part interest? Yes. Do you have to pay appreciation? Yes. What do I cover stock? Yes. All those things are concerned. We're going to walk through every single one of those for you. The last session today is risk risk. We're going to talk about a lot of that. Hey, Scott, I saw you had your hand up, Scott. Let's go to him, Tanner. See if uh what do you got, Scott?
>> Hey, thanks Mark. Thanks for this. Um, real quick question, real quick question. In in this wealth building OS system is real estate an absolute key component for this strategy for this structure?
>> No, not at all.
>> Okay.
>> Not required at all.
>> Okay.
>> No. No asset. No individual asset is a key component or necessary. This can be customized to any preference you have. For me, I like Bitcoin. Um, for other people, they like gold. Other people like real estate. Cool. The way I look at it though is it's not one or the other. It's not better or worse. It's how do I use real estate and Bitcoin together to get more of both.
>> Is it is it an accelerator then?
>> Accelerator. Of course, it's an accelerator because I have tons of access to cheap liquidity for real estate and I get tax appreciation.
>> Yeah. I don't get tax appreciation or leverage with Bitcoin.
>> Okay.
>> So, it's an accelerator if you use the right sequence or you don't have to. There's we're going to talk about it tomorrow. We're going to get through how we invest in layers in sequencing to get assets to the whole whole session is multiply. That's what's called multiple call. So, how do we accelerate using different assets together, but I don't need to use 10 different assets. I could just take two and just stack them on top of each other.
>> Yeah. Okay. Um, let's just go up to Andrew. Andrew, what do you got? Andrew
>> top left.
>> Thanks, Mark. So, during that last session, one of the things that I really was thinking about is business, right? Um, I've got a lot of equity, a lot of fixed assets and broadband infrastructure, things like that. I'm trying to figure out ways to unlock that. You know, I've heard of things like counter receable loans. We don't necessarily have as much of that. Equipment is obviously easy to take loans against. Are there any other interesting ways to to start to, you know, look at the actual business and taking things out without selling equity? Why without selling equity? Because ultimately you're valuing your future growth. Um, so that's the initial thought. You have I mean you have two things at your disposal, right? You you have credit and and you have debt equity, right? So this I like to break things down like most basic levels and we can dig in from there. Two ways to grow business. There's two ways to access you have credit and you have equity. So I can get business credit lines. I can do invoice factoring. I could do purchase order financing. I could get uh I could get uh loans against my merchant account processing. There's all types of credit facilities that are available to me as a business owner. Half a dozen. And I can just think of I think I just listed four. Um, and then there's equity options. So I might have a pro a small private brick and mortar service based business whatever. Maybe it's worth a million bucks. I might be able to find someone that wants to want to buy 25% million up front.
>> Right.
>> What is Michael Sailor doing? Michael Sailor is using both credit and equity both. Michael Sailor sells equity. That's the MSTR stock. He sells it at the market. The ATM so he sells the stock in the market. That's equity. And he takes on debt or credit. He uses both. So they're both tools. They can both be used differently. Now we can talk about all the ways that you can do debt credit. We talk about all the ways you can do equity as well. I don't know that helpful but it's it's a you can grow the business. So, let's say Andrew that I don't want to give up equity. Uh, shoot, man. But if I was able to stop thinking about your pie as a finite pie and how much the pie you're giving up, think about how big the pie is and how much pie you get. A lot of life comes down to thinking about what other people get instead of what you get. If I get if I had a million dollar business and I owned 100% of a million dollar, but then I sold 25% of it, but now it's $10 million business. Would I be better off?
>> Oh, yeah. Of course.
>> Of course. So, when you're thinking from a scarcity mindset, I don't want to give up equity. But, what if I made my company 10 times bigger?
>> I don't give up a check. We went from three billion to 50 billion. So, shoot, I'll give equity all day if I 50 billion. So, think of it from an abundance mindset. about it from what I have, what I'm trying to achieve and stop think about what other people get out of the deal. That's one of the biggest holdbacks that I see of people because they think about, oh, I'm going to deal so and so get this. Who cares what they're getting? What am I getting? Am I getting what I want? That's that's the core thing.
>> Okay. Um, we got one more. One more. Who do we got? Let's go top left. Alfredo,
>> thank you, Mark. Do you hear me?
>> I hear you. I don't know how Alfred top left, but he's there. Sorry.
>> Yes. Thank you. I I read one of your emails for velocity of money where you offer a strategy or a tactic in which against your stock portfolio you can ask for a margin loan um and also a loan and with that by for for instance dividend stocks or stretch or something similar um but then today in your presentation um earlier you said that um you should never borrow against assets for never above 35% loan to value but in that email you were kind of recommending 50% of the portfolio loan to value to buy stretch does it have to do with the volatility low volatility of the of the CRC for instance So first of all, I didn't say 35% or 50%. I was just giving you prompts so you can come up with your own. Um, the answer for what it should be depends on a bunch of different factors. So for example, how volatile is the asset? So for example, Bitcoin is a 50 vault. So I'd be I want to borrow much less than my home, which is like a five vault, right? So my home equity is not going to go down here because Bitcoin. So number one, I'd want lower to more volat. Number two, I understand Bitcoin moves in these big cycles. If I was at the very top of the cycle, I'd want to borrow way less and I could drop. If it was at the very bottom, I could borrow more. So even though it's a 50 ball asset, I want to be a little bit safer. Depending on where I am in the cycle, also depends on what rate I want to borrow or block I want to borrow. So these are not steadfast uh uh these are not guidelines I was giving you. Those were only prompts to get the general discussion going. Um, it also depends on other liquidity you have available to you. Do I have enough liquidity to cover margin calls? Am I okay with margin calls? So, for example, going back to big waves, I use the black surfer. Most people here on this chat don't want to go surf 30 foot waves in the pipeline over five foot shallow reef, but those guys do it every day. They 100 water every day. A lot of the big wave surfers can go do a two- wave hold down. They could be held under water for 60 seconds. None of you guys could. You don't want to do that, right? But they're okay with that. And so, like risk is in the investor, not the investment. So, I'll take a 90% loan on the top of the cycle. I don't care because look how much liquidity I have sitting here to cover margin call. Or shoot, I don't want to have a margin call. I have no extra liquidity. I'm going to take 30%. So, these are personal numbers for you that change over time because your situations change. So, uh, we're going to the rest of today, we're going to help you come up with better numbers. This next module we going to right now is really going to help. Uh, by the end of tomorrow, we get the laser coaching. This is really going to be much more helpful because you guys have a whole package. Right now, you're trying to guess the stuff that we're going to get to, but we haven't yet. Uh, we're also going to wrap this up on the next uh on next. I'm going I'm going to do it in a uh in a much we have a Q&A so you guys can drop your questions in. That way, we can try to answer them in a much quicker way. Uh, so we can get more of you because I feel bad that we get your questions answered, but we'll be back here at the end of the day and of course, we got more sessions next couple days. Um, so with that being said, let's go. Let's go jump into the next section uh which is liquidity. It's not just the amount of cash, it's how much credit or credit and total liquid we have. So, anyway, I'll see you guys later in a minute.