The Canadian Overnight Success Story (After 2,372 Previous Nights of Diligence) Explains How to Become a Real Estate Millionaire

Show Notes

Do you want to become a millionaire in the game of real estate? On today’s show, Canadian entrepreneur Stefan Aarnio explains his proven system for creating wealth in the world of real estate.

Stefanaarnio.com

Introduction – Ladies and gentlemen, family and friends and overall good-natured people of importance, on today’s show we are interviewing a man who at the age of 22 began to wonder whether his music career would ever take off and began to pursue a new career in the world of real estate investing. Stefan has been able to become a millionaire within just six and a half short years. Stefan, bought his first property in 2009 and is now the winner of the 2014 Rich Dad International Hall of Fame award. He’s been featured in Canadian Real Estate Wealth Magazine and Entrepreneur Magazine actually named him one of the Top 10 Real Estate Influencers to Follow.

Stefan Aarnio is the author of Self Made -Self Made: Confessions Of A Twenty-Something Self Made Millionaire: 5 Secrets That Transform Ordinary People Into Self Made Millionaires and he’s also on today’s show, Stefan, how are you sir?

  1. Stefan, most people who get involved in real estate do not succeed, let alone succeed at an early age, I would love for you to share with the listeners your background and how you first got started in the world of real estate investing?
    1. Went to countless seminars and was not having much success. Finally, got started splitting the deal with 5 strangers from a seminar that fortunately went well. Stefan held the mortgage, and used first time home buyer deal at the bank.
  2. Stefan, who first mentored and taught you the rules to the real estate investing game?
    1. Stefan spent all his money going to a Trump University seminar that came to Winnipeg.
    2. Stefan Aarnio has spent $300,000 on his education on things like mentorings, flying across the ocean, books, audio books, coaches

Company 1 – Buys, fixes and sells real estates

Company 2 – Business School Coaching for Real Estate Investors

  1. Stefan, can you explain your first big investment “win” in the world of real estate?
    1. My second deal bought a burned down house in downtown Winnipeg for $160,000. Thought the budget would be $150,000 and building value would be $450,000 would be done. The deal almost bankrupted all the investors. The renovation went up to $250,000. He didn’t know what a building permit was. Quit his job, finished the renovation. The home value is now close to $650,000 and now the passive income is about $2,000 and allowed him to have his own job and never got another job since.
  2. I’d love for you to explain to our listeners what you look for before investing in a piece of real estate?
  3. Stefan, what variables do you try to avoid when investing in real estate?
  4. What struggles did you have to overcome en route to building your success?
  5. Stefan Aarnio, I’ve met so many people who have lost absolutely everything as a result of poor real estate investing, from your perspective, what is the biggest mistake that you see people often make when investing in real estate?
  6. In your book, Self Made – Confessions of a Twenty Something Self-Made Millionaire you write that “Your Brand New Education is Obsolete.” What do you mean by this?
    1. NOTABLE QUOTABLE – “University administrators are the equivalent of subprime mortgage brokers selling you a story that you should go into debt massively, that it’s not a consumption decision, it’s an investment decision. Actually, no, it’s a bad consumption decision. Most colleges are four-year parties.” – Peter Thiel (The entrepreneur, venture capitalist, philanthropist, political activist, and author. He is a co-founder of PayPal, Palantir Technologies and Founders Fund. He was ranked No. 4 on the Forbes Midas List of 2014, with a net worth of $2.2 billion, and No. 315 on the Forbes 400 in 2017, with a net worth of $2.6 billion)
    2. https://goo.gl/images/guxJEj
    3. 2005 in Manitoba, Jazz was finally added to the curriculum. Modern education is so far behind.
    4. Stefan’s Business School Teaches a 5-Part Curriculum
      1. Sales
      2. Negotiation
      3. Marketing
      4. Capital Raising
      5. How to Build Wealth
  7. In your book, Self Made – Confessions of a Twenty Something Self-Made Millionaire, you also write that “Your first investment will suck,” explain what you mean by this?
    1. Your first investment and your first business is probably going to fail.
  8. In Chapter 18 of your book you write, “You will be abandoned at some point.” What do you mean by this?
    1. Entrepreneurs are the new rockstars. And human nature says people are going to leave you. People attack their liberator.
  9. In Chapter 26 of your book you write, “Singles win the world series.” I would love for you to share with our listeners what you mean by this?
    1. Moneyball by Michael Lewis – https://www.amazon.com/Moneyball-Art-Winning-Unfair-Game/dp/0393324818/ref=sr_1_1?s=books&ie=UTF8&qid=1542840363&sr=1-1&keywords=moneyball+michael+lewis
  10. Stefan Aarnio, I’m a voracious reader, and I’m always hunting for book recommendations. From your experience, what is the #1 book that every entrepreneur who is listening needs to read and why?
    1. Think and Grow Rich by Napoleon Hill
    2. Rich Dad Poor Dad by Robert Kiyosaki
  11. All successful people are very intentional and purposeful person, I’d love if you would share with the listeners what the first 4 hours of your typical days look like?
    1. Morning Schedule or Vampire Schedule
    2. Morning Schedule –
      1. 5am Wakeup
      2. Vision planning
      3. Working Out
      4. Scheduling
      5. Journaling
      6. Reading
    3. Vampire Schedule
      1. Uses this with his sales team that works at night
      2. He likes writing at night, so recently he has been doing all of the creative work in the middle of the night.
  12. Stefan Aarnio, as you look back over your life, you’ve obviously been very successful and I’m sure that you’ve made a few mistakes along the way, in your mind what is the best coaching and advice you could give to the entrepreneurs out there listening to this show?
Business Coach | Ask Clay & Z Anything

Audio Transcription

On today’s show, we discuss healthy Canadian entrepreneur, Stefan Aarnio became a millionaire in just six point five short years. Why humanity tends to nail honest people to the cross who try to help them and why singles win world series and home runs. Do not aid. Why get rich quick is not a movie.

Welcome back to another exciting edition of the thrivetime show on your radio and business podcasts download and ladies and gentlemen, family and friends. Good natured people of importance. On today’s show, we are interviewing a man who had just the age of 22 began to wonder whether his music career would ever take off. He began to pursue a new career in the world of real estate investing. Stefan Aarnio has been able to become a millionaire within just six and a half short years of starting in this new, this new career. Of his, he bought his first property in 2009 and is now the winner of the 2014 rich dad international hall of Fame Award. He’s been featured in the Canadian Real Estate Wealth Magazine, Entrepreneur magazine. Entrepreneur magazine actually named him as one of the top 10 real estate influencers to follow. What is a gentleman. He’s kind of a big deal and he is for real. Stephan, welcome onto the show. How are you, sir?

Clay? That was a tremendous interview. I gotta I gotta hire human. You killer on that. Thank you so much. And you know what rhymes with tremendous.

No. Tell me

Oranges. Just a thought. Just thinking about that

Oranges.

Just something to think about. Just something to think about. Okay. Now what I want to ask you this, you have achieved massive success at a very young age and a lot of people have at a very old age, been unable to get any truck, any sort of traction in the game of real estate specifically. So I’d like to ask you, how did you first get started in real estate investing?

Well, thank you for asking clay. So I was a musician and when I was 16 I wanted to be a rock star, so I said to my mom and dad, his mom and dad, I want to be a rock star. They said, that’s a horrible idea most good parents do. And uh, my mom to me, she said, you know what, Stefan Aarnio, I’m going to support you. Why don’t you go to music school and get a degree? So I went to music school, dropped out of that, dropped out of the business school, dropped out of computer science, finished with a major in English minor in music, and I had a Postgrad depression. It was 2008. It was lying on my mom and dad’s. My mom’s couch. Parents are divorced and a wide on the couch and I couldn’t get a job and I read a little book called Rich Dad Poor Dad and said, if you want it to be rich, you had to invest in real estate to get passive income.

I thought, wow, that sounds pretty good to me. So, you know, I ended up signing up for seminar after seminar after seminar. Of course there was a whole seminar crowd, people going to seminars and I wasn’t having a lot of traction and I ended up buying my very first property, clay with five other strangers I met at a seminar. We split the deal, six weighs $1,200 of cash each and I ended up holding the mortgage. I had a job putting chips on shelves at four in the morning for Frito lay. That was my job. So I ended up holding the mortgage and we had a little cash flow property and uh, that feel it went very badly at first, but that was how I got started. I got started splitting the deal with five other dudes I met at a seminar and I just squeaked my way in and I just never given up.

So you bought a property? We have Steve Currington, one of our show sponsors on the show. Uh, steven mortgage. He has a company called total lending concepts are one of the top mortgage companies in the Midwest. Steve Meet Stefan Aarnio. Hi Stefan. How are you?

Steve? Good to meet you.

Okay. So I’m going to ask you this now. And you guys probably will end up doing some deals together in the future, but I want to ask you this, what, what were the terms of the deals with [inaudible] it? Was there one guy you put in the majority of the cash or one guy that, that guaranteed the deal or how, how did that Kinda says there’s somebody out there who just is itching to get involved in real estate investing and they would like to know some of the details of that. Was it? Uh, I guess my questions would be how much was the deal overall and, and how did you break the deal up with the five partners?

They never do what I did.

Here we go.

Don’t do it like this. At home I was an ignorant person ignorantly. I have a much better way of doing it now. But back then the deal was I was going to hold the mortgage. We’re going to use my first time home buyer a deal to get this for five percent down at the bank, which isn’t really the best and cleanest way to do this. And then we just had a Napkin we signed where the six of us, we’re going to split this deal, we need to put in $1,200 of cash, we’d hire a manager who happened to be one of the partners and this little crappy house was going to make four or $500 of cashflow every month. And you know, in theory it sounds like a good ideal, uh, but in reality, you know, five, six guys splitting a little property like that, it was $115,000 purchase price with a little bit of cash flow. It’s not big enough for anybody to care. So. So that, that was a big have a big problem there at the beginning. But we used the joint venture structure where we were joint venturing on this property and I in and a very dirty way. And then I cleaned up my act later on and got it in a better way because the way that I started wasn’t a very good way

too small for people to care. How did that manifest itself? When you’re saying what kind of things did you see your partner is doing or not doing, are you doing or not doing as result of it being too small of a profit for you to care?

Wow. Well, that’s a great question. That’s a tremendous question. So what happened was we had two months of rent come in, two or three months, I can’t remember, and it was great. And then the third or fourth month the tenants, a couple of musicians just like

the property

already there, smoking drugs, cigarettes, burned in the carpet and beer bottles everywhere. He kicked in the doors, punched in the windows. It was trashed. And so I said the partners, hey guys, I got the mortgage here. Can somebody please fix this with me or does anyone want to put in more money? Well, nobody had enough money and it’s a care and nobody put any sweat equity. So now I’m like that 16 year old girl goes out and has fun with five guys one night and now I go to lifetime commitment. Call them, called the mortgage. You know, I’m here with a lifetime commitment. Mortgage means agreement. So yes, and I said to these guys like, Hey, can someone help me and you know, nobody could agree on how to, how to fix the deal. And so I ended up having to buy them out. I got some money from another investor. I bought everybody out and I held onto it for five years. I ended up selling it for one 69. So I made money. It cash flowed the whole time. I got a good tenant and the story ended well, but it wasn’t enough money for people to care.

I know this is probably a creepy and weird, but where, where was your first property? What city was it in? What city were you in?

Yeah, so, uh, I live in Winnipeg, Manitoba in Canada, and this deal was, there was 92 inkster in Winnipeg, which is nice. You answered. Winnipeg is like, it’s like a, a middle kind of sub, middle kind of area. Not like not the place that little pretty little girls wish they could grow up and live in, but it’s not a crack house.

I neighborhood. I have a confession to make. Sorry, Claire. I have a confession to make here. When you went to collect the rent from the musicians who were doing all the drugs in the house, it’s probably sad, but I admire your house before I even knew you knew who you were. I just a big guy. I love to invade people’s privacy. And so Stefan Aarnio, this is an audio clip of what are these tenants said to you when you walked in on their, on their drug-induced coma destruction so it will be queued up and see if this sounds accurate. As to what they told you when you discovered the abomination of the abominations that they had done to the house.

Like, I picked it wrong. We quit smoking. Quit drinking like I picked the wrong week when I’m fit. Image. Does that sound accurate?

Yeah. Band music was there too.

Okay. Now, uh, who first mentored and taught you the rules to real estate? I did this. The rules. Was it more of the rich dad advisors? Because we know we’ve had Sharon Lechter, the Co author of Rich Dad Poor Dad on this show. A. Actually, if there are listeners out there, they want to hear her podcast. We had her on I think five different times on our podcast. Sharon Lechter, who wrote the rich dad poor dad series, or did you have the specific mentor that pulled you aside or what did you get your specific nitty-gritty mentorship from?

I’ve met her a couple times. She’s cool, but I ended up going to laugh at this, but trump university came to Winnipeg in 2007, 2008 and I spent all my money. I was a broke guitar teacher at $10,000 of annual income at the time and I spent all my savings going to a Donald Trump weekend and it was a good weekend. I learned some things. I think it was two or three days and they wanted a $30,000 mentorship but I couldn’t afford it so I went up to the parking lot and I cried like a little girl because I wanted it so bad,

but I ended up goingo into. These guys are laughing, but man, that really sucked. Being a young guy, and I remember my parents said to me, you’re wasting your money going to that seminar. I felt like they were right. And um, after that I went to seminar after seminar after seminar. I haven’t flown all around the world. Guys. Training was so many people. I’ve spent over 300 grand and training in the last 10 years. So there’s a lot of different mentors and people in there and programs that have built what I know today and every year I’m probably spending at least 50 grand training myself every year going forward because I want to be the top one percent all the time.

Somebody out there right away. We just lost somebody there. A Marshall, you know, we just lost. Oh yeah, somebody just died off there going, wait a minute. This guy just dropped $300,000 on training during his lifetime. Uh, Steve, you probably, we probably just lost somebody out to. There’s somebody out there going, uh, I’m out. Yeah. Wait, you have to invest in yourself. So I want to, I want to clear this up. I want to, I want to be a shameless Stefan apologist. I, my entire life have probably spent a million dollars on my education in my lifetime probably. Now, let me explain to you how Michael Levine, the PR consultant of choice for Nike, for Michael Jackson, for Prince paid the guy, I think it was $25,000 to spend a day with him and interview him and it was worth it. Uh, I actually did a ton, a ton of marketing for free for the founder of skyy vodka before he became a client a. But he’s the founder of skyy vodka, one of the best inventors of our time. Maurice Kanbar. I mean, what I learned there, priceless. Drove down to Houston to meet George Foreman and to spend time with him, drove out to Oklahoma City, spent a whole day, a whole day paying people to fill in for me to meet the founder of hobby. I can go on and on. Can you explain to the listeners what kinds of things you’ve spent money on and why you think it’s worth the $300,000 so far that you’ve spent?

Oh, it’s totally worth it, man. You sound like a million bucks. So it makes sense. Like I hear a million bucks on the fault. I’ve spent over 300,000 in the last eight, nine, 10 years and it’s been through seminars, books, audio books, business coaching, mentoring, flying across the ocean. Two people that are mentoring me over in England, flying to America all the time. I’m Canadian, so I got to fly to America. Um, you know, you add all that up. That’s, that’s not even that much money. That’s like 30 grand a year, over 10 years. It’s not that much. Uh, especially when you consider, you know, the upside and you know, I’m, I’ve got two multimillion dollar companies now and a 300 grand is like, that’s what they charged for Ivy League education these days. And at the end of five years at Ivy League, you’ve got a big for a job, whereas you could spend 300 grand and become a millionaire, you know, like what’s, what’s the difference? I think I’ll go for this 300 grand is a millionaire all day long.

When you say you spent $300,000, you’ve learned these things, now you built to multimillion dollar companies. For the listeners out there who are very curious, what are those companies, those, those two businesses?

So, so one company is real estate, obviously, you know, my company buys, fixes and sells real estate portfolio and all that stuff. And then the other one is I actually have a training and mentoring company because after winning awards and after being featured in magazines and I’ve written five books now written and published five books and I’m on programs like yourself. People call me all the time asking you for coaching and mentoring and I’m at the beginning I thought it was a dirty business. I said, I want nothing to do with it. It’s a scam. But what ended up happening was people kept calling me, so I now offer a legitimate program and I’ve taken several people to full time real estate investor status and that’s something I do professionally now as a an educator and an author of several books. I have a business school where I trained people, which has turned out to be a very good business because if people all over the world who wants to learn to raise capital and do deals,

typically get your hair cut on a regular basis as little as possible.

Barbara, you go to or a certain hair place or tell us about your, your, your hair. Hi Team.

Yeah, I got a place down the road here I go to in Winnipeg.

Okay. And have you been to a lot of places before you decided to agree on that place?

Oh yeah man. I’ve been all over the place.

We have one. Hundreds of thousands of listeners. Is there you want to give a big shout out to your specific place? Do you like that place? That much? We can give him a big shout out.

Yeah. You go to this place called hunter and gun in Winnipeg.

Okay. And Hunter and gun. So a hundred gun. Winnipeg, a big shout out to you guys. Now I own a chain of men’s grooming lounges in Oklahoma called elephant in the room. And, uh, the reason why we built it is because there’s so many crappy hair experiences available. There are so many crappy haircut experience available. It doesn’t mean that everybody who cuts hair sucks, it just means that the vast majority of people that cut a businesses that cut hair, they have booth rent, a bunch of random contractor sitting random hours are pretty terrible. And in the world of business consulting, I would agree that the vast majority of business consultants are pretty terrible. I would also say, according to Gallup Marshall, you’ve seen the stats. Seventy percent of public school teachers and all employees don’t care. They’re labeled as disengaged. Seventy percent of school teachers, I’m sure up there in Canada, a, all of the teachers are giving out a’s. Great teachers. I probably 90 percent of them are engaged. But in America, 70 percent of teachers are terrible. Teachers are terrible. Coaches are terrible hair. People are terrible. Uh, so again, a lot of people immediately put up red flags. When you hear of somebody who has a coaching business, can you talk to me about the Jack that you have witnessed from Shady coaching businesses? Without, without naming names, but the kind of shakiness and jackass or that is common amongst coaching programs that are shady,

it’s a huge elephant in the room. Anybody can just call them a coach and hang up a shingle and just start coaching people and a lot of them aren’t dedicated to the craft of education or helping people or anything in 2016. Clay, I’ll give you an idea. I hired three coaches in 2016, made a bunch of money. I hired three coaches, so spend 50 grand on these three different people. Two of them were complete trash and garbage and I might as well have lit my money on fire. It was absolute garbage. They had no curriculum. They had nothing. They had. It was just. It was actually I just gave them money and just lost it. Like literally just lost my money and then one of them was so tremendous. He was a speaker coach I hired. He was so good. I’ve probably made an extra half a million to a million within 18 months off of his training, so I lost onto and I’m.

I’m an experienced buyer of coaching. I lost on two guys and one guy made so big it won everything for me, so I always have a coach hired and a lot of companies in my space, in the real estate space have a 95 to 97 percent failure rate, so people sign up and 97 percent of them fail. In my company, we keep the stats. About 47 percent of my. My students succeed. Half of the people do nothing. They sign up and do nothing because they do nothing. And then about 47 percent hit the goal that they set out to do in my program, but we do it way differently than anybody else

doing nothing is that when you do nothing, you get nothing but new. If you pay something and you get you do nothing and then get nothing, it seems kind of frustrating for someone who wants to do nothing but pay something, but you can’t just pay and have someone do everything for you because then would be stefan starting his own company over and over and over. So Stefan Aarnio I want to ask you this here. What was your first win in real estate? Before we get into your new book, what was your first? The first win where you go. Okay. Started from the bottom. Now I’m here. Started from the bottom, like drake up there in Canada. Don’t you know, uh, started from the bottom. Now you’re here.

On second deal and I go, man, I can’t believe I did it. I would never want to do it again. But my second deal, I bought a burned down house in downtown Winnipeg and it was a pretty rough part of town, you know, at the time there was prostitutes and drugs and needles and a pretty hard part of town. And my dad said, why the heck do you buy in that what? I was buying this property. So I bought it for $160,000. I thought it was going to take about. Oh Jeez, what did I think the budget was going to be? I think I thought the budget was going to be 150,000. And then I thought the building’s value is going to be about a 4:50 when I was done. So I bought this property and I’ve got an investor and I got, I think I got my grandma’s invest this, my grandma invested in it and I got some other people to invest and the deal is nearly bankrupted me and bankrupted all my investors because it dragged on and on and on.

I chopped the roof off this building play and I’m adding an extra floor to it and I’m putting it, putting the stairs on the outside. This is a crazy renovation I would never try to do again. But I was young and I was 22, 23 and I was aggressive. So I did it. That renovation went from 150,000 to 250,000 and I had no building permit at one point in the city came to me and said, you need a building permit. I said, what’s a building permit? So I don’t even know what a building permit was. But long story short, the building almost bankrupted me. I had to quit my corporate job to finish it. I was 90 days away from bankruptcy, quit my job and 45 days after quitting my job, finished it. The property today is worth about $650,000 and the cash flow on that, the passive income was what?

$2,000, which brought me out of a job at age 23 and I haven’t had a job since, so you know, it was scary. It was painful. It was horrible. I had sleepless nights. It was brutal. It rained everyday on my house with no roof. It was wood inside and it’s raining and raining and raining and so bad, but at the end of the day I haven’t had a job since I was 23 because this one deal has provided me enough passive income to not have to work and I’m 32 today, so that is great. I still own it and I recommend everybody. If you can get a building like that that pays for you to live, you should

do it different today, man. What’s. What’s the address of that? Can you share with us the address of that thing?

That one’s, it’s called the treehouse lofts. It’s in Winnipeg. It’s got a billboard out front called the treehouse swaps. It’s like del moral. So it’s kind of downtown Winnipeg and it’s still there. It’s a giant. It’s a three and a half story building and uh, the cashflow on it’s been great for the last however many years I’ve had it since 2010, so almost coming up to 10 years and it’s kept me out of the rat race away from working the whole time.

Okay. So all of us are checking out google. Search it. Now here’s the deal. Um, I in honor of your first big win, I have queued up the Canadian national anthem and to show respect for anybody out there in. Seriously, you’re, you’re, you’re, you’re, you still live in Canada right now. You still live there.

Still there today, man. It’s cold up here. I got a beer to keep me warm.

Marshall, I want to, I want to tee this up here because the American national anthem, what happens is it gets into a certain octave were nobody can do it, not even live in Carl, like some of the top singers in America. Can’t pull it off. You have top pop singers. They go in the studio, they, they bang out hits, but then they get there and, and, and uh, and they just, they just can’t seem to knock it out. So I’m gonna play the Canadian national anthem. Uh, the United States national anthem. Have you heard Carl Lewis sue the national anthem?

No, I just heard lady Gaga. Lady Gaga.

Well, let me queue this up. This is Carl Lewis. I’ve got a rendition of it. If you guys want to hear it. I know. I don’t know what in fact no one does but not. So here. This is, this is Carl Lewis singing the national anthem of the United States. And then we’ll play the beautiful Canadian national anthem. So Stephen just kind of marinate, just Kinda let it happen. Here we go. Here we go. This is Carl Lewis said in one of his movies that a man. Here we go. Here we go. Here we go.

Oh, here we go, Stefan Aarnio. This is what happens every game.

Can you see you see that part right there and that’s where America gets it wrong. Well, maybe they’ll make. Can we play it again here? One more time for you?

No.

Get do it. Nobody in our country can sing along and the rockets. Okay, let’s, let’s, let’s continue here. It gets, it gets better. This is Carl Lewis, a US Olympic athlete. Star multiple time gold medal winner. He says all sigma anthem. I got it. I got this. He’s singing at a New Jersey Nets basketball game. Let’s continue.

He says, oh, I’ll make up for it now. He’ll make up for it. Here we go. Oh, the land of the free.

Now let me queue up the Canadian national anthem. This is saying by Wayne Messmer and Chicago cubs gang in Chicago. Cubs game. Here we go. This is a beautiful national anthem. This is why the Canadian national anthem is superior and literally looks down upon the American national anthem Promo. I’ve seen it. Here we go. Here we go.

I want the Canadian national. Let me keep going. Can Be queued up real quick when you’re supposed to be singing the Canadian. Let me do Canadian national anthem. Let me try this one here real quick. Your stuff and I’m just telling me to fill it. I can do. Let me try this one. Try this one here. We tore down here. Let’s see if we get some good. I’m offering. Here we go. Come on. I’m looking for a good one. Big shots.

Everybody. Now everybody can sing along. Here we go. Here we go, dad. Yay.

On. Believable. Why can’t we change your anthem to your anthem? You have a better anthem.

No, dude. No, no, no. The American anthem is way better. You guys have the rockets. Red Bird and he got. Oh, it’s so good, man. American anthem is so, so much more cooler than that.

I’ll tell you what, gender neutral. Now I will trade. I will trade your anthem for Bieber. You give us bieber. I’ll give you our anthem. I was in charge, I wouldn’t make that decision. He’s thinking you can have to improve the gross domestic product quite a bit. Bringing bieber over here. I mean he brings a lot of hearings, a lot of money to Canada. Just. Okay. Let’s continue. In your book self made confessions of a 20 something self made millionaire. You talk about your brand new education is obsolete. Break it down. What do you mean by this?

Well, that’s, that’s a great question. Education nowadays we live in the digital age. I remember it was 2000. Oh Gosh, 2005, 2006. I’m in music school and back in the day, you know, Dj’s were starting to become a big thing, so I was in a rock band and I was playing guitar and drums and Bass and the kids at the time were listening to like more electronic music. So it was a transition to bands were leaving the stage and Djs were coming in at the time and I said to my professor, I said, why don’t we learn this electronic music that people were actually dancing to and listening to music school? And he said, well, we’ve said for somebody to be in the music school, we got to be able to study it. It has to die, we have to dissect it, we have to write papers about it as to get published in a journal.

And then from there we can decide to add it to the curriculum. They just give you an idea how backwards the school system is. Two thousand five in Winnipeg, Manitoba, because the University of Manitoba added Jazz to the curriculum. What Jabs hasn’t been relevant since 1960 when miles Davis invented the cool. So these guys are like 45 years behind what people are listening to. And so we live in a digital age now where you graduated from school, but the world is moving so fast, it’s changing so dynamically, you know, it doesn’t make sense to be learning jazz in 2005 and 2005. You’ve got it

music. But they won’t learn that for 30, 40 years. I don’t want to argue with you, but I do want to share with you something. How old are you right now? Is it okay if I play without your permission, your playlist? My playlist? Yeah. This is what he was using to Stefan earlier today. This is what he’s listening to.

Marshall lives underneath the rock knows no one and only adorns is home with miles Davis posters. That’s right.

No, but seriously, I mean, miles Davis. You’re correct. I mean they’re teaching it. How long after he was popular?

Brutal.

Brutal. Okay. So you’re saying now that what they’re teaching you in schools obsolete, obsolete. So what kind of stuff do you teach people that’s more concrete, more actionable, more doable, more real, more relevant five course curriculum that I teach people and it’s everything you need to go from zero to six and seven figures. So sales negotiation, how to negotiate. That’s nowhere in the school curriculum. They might say they teach you, but they really don’t. Sales, negotiation, marketing. Uh, we also teach a capital raising which every entrepreneur needs. And then the last thing is wealth. How to build wealth. And so I teach that curriculum to my students. Plus, you know, in the real estate side, you know, different things like costing out deals and all sorts of things need to be an entrepreneur, but a lot of those things are timeless, like learning to sell is timeless. Learning to negotiate is timeless. A learning the principles of marketing is timeless. All that stuff is timeless. Whereas the things that they teach in school, I remember I took a class, I got a d at at the, at the business school, I’m a business school dropout. It was mis information systems management. Well, that thing, by the time you print the textbook, it’s already obsolete because that stuff’s changing so fast and the guy teaching it is a failed engineer that somehow is posing as a business professor like I don’t even see how it’s legal to sell that kind of crap. That’s total garbage.

You just asked a question that is pretty intense. You just said, I don’t even know how it’s legal to sell that kind of crap, man. Now I’m gonna. I’m gonna. Real quick, give you a little bit of a justification from Peter Teal who I know. I know you know Peter Teal, he’s the guy, but one of the first investor behind facebook and he has a notable quotable that’s actually more rude, more intense, more offensive, and I would say maybe even more accurate than what you just said. More truthful. He said university administrators or the equivalent of some prime mortgage brokers selling you a story. You should go into debt massively and that it’s not a consumption decision. It’s an investment decision. Actually, no, it’s a bad consumption decision. Most colleges are just four year parties. I feel like. I mean that is. That’s intense. Peter Teal not holding back right there. I can’t tell you how many entrepreneurs I’ve met who are very, very successful, who have told me that they wished they had not gone to college, and the only exception I would say is if you want to become a professional that requires a degree, would you. Would you agree with that or do you think that I’m, I’m, I’m, I’m, I’m out of my mind and Peter teals out of his mind as well.

All the universities and colleges do is they require the government stamp. So engineering, architecture, doctors, nurses, those are all government protected things. So the government has a government thing signed up for that and if it’s government protected, the government is in there to save them and they have degrees and all this. But let me say this, entrepreneurs are coming hard and they’re coming to raid those professions because what’s gonna happen next is I say this in some of my videos, I did a video, went a little viral called why school sucks. He said, what’s going to happen one day is you’re going to cough on your iphone, your iphone is going to say you have the flu and Amazon’s gonna send a drone with medicine to your house. And the doctor just got cut out of the equation. So entrepreneurs like Jeff Bezos, entrepreneurs like Zuckerberg, entrepreneurs like me are coming like Viking raiders to raid the universities and rate all those government protected jobs. They won’t be government protected forever. Do you think entrepreneurs are going to come and raise them? So that’s just government being in bed with itself and that’s going to go away because capitalism will destroy that.

Do you know Patrick?

I haven’t heard that name. No.

I’m going to put a link to it on the show notes here in the Marshall. I’m going to copy the visual and real quick, uh, Stefan, if you want to google this or if our listeners want to google this, if you just type in Forbes magazine cover healthcare or since we’re going to edit this, if you go to thrive time show.com and you just click on the show notes for today’s show. You can see this. I’m Patrick. Soon Jew is a, he was on the cover of Forbes and what he’s doing is exactly what you were just talking about. I have a member of my family works directly him like on a daily basis was, you know, talked to him, worked with him for a long time and what Patrick was doing was you would do blood work. Okay. So a nurse comes in, does the blood work, they then upload the bloodwork into a computer and the computer tells you what you need.

Like, okay, you have a deficiency of this, so you need that. You have this kind of cancer so you need this. And it crawls the database indexes at all and says, based upon best practices, this is what you take. And they have found that the programs he’s riding are far more accurate than the average doctor. And the only reason that they have a doctor is because the doctor has to quote unquote sign off on it. So in these cities, we don’t have enough doctors to keep up with demand. He’s created this system where people go into the doctor, they see a nurse, they never see a doctor, they see a nurse practitioner or a nurse practitioner and nurse Assistant. The blood work is done. They put into a machine, the doctor comes in and goes, hey, great, this is what it says. Boom, next one. And all the is doing is basically doctors become a signature writer. And what you’re saying is closer to reality than I think what most people want to admit. You know, and you’re filled with so many knowledge bombs. But Stefan Aarnio, you talked about in your book self made confessions of a 20 something self made millionaire. You said your first investment will suck. Um, are you saying that all the listeners out there, we’ll invest in vacuums or what are you talking about

your first investment business? It’s probably going to fail. It’s probably not be very good. It’s kind of like losing your virginity man. The first time you, you lose your virginity, you only got one time to lose it. The sex isn’t very good and the first time you do a real estate deal, it’s not going to be that good of a deal. In the first time you opened a business, it’s going to be a very good business and you’ve got to play the numbers. You know, 90 percent of businesses fail in the first five years. Ninety percent of the survivors fail in the second five years. So you’ve got to be a guy who’s willing to go through, you know, 10 deals to get a good deal on 10 businesses to get a good business. So get ready for the sucking, then it’s coming for you.

So let’s say that I’m embracing it. I said, okay, you know what this is. This is true. This is so harsh but true. I move on to chapter 18 of your book, self made confessions of a 20 something self made millionaire and I read you wrote here, and it’s very mean, very mean, very accurate, very true, very mean. You wrote, you will be abandoned at some point. What do you mean by this?

That’s another entrepreneurship piece for all the guys out there and one of the entrepreneurs, entrepreneurs, the new rock star now and at some point a human nature takes over and people, if they don’t have any value to get from you, they will abandon you. And that’s investors. That’s employees, that’s contractors that, uh, you know, it can be girlfriends, boyfriends, whatever, man, human nature, you’re going to be abandoned at some point. So get ready for it. As soon as people can’t find value in you, you’re going to be alone.

What is your religious background? Are you a, uh, are you, are you, are you a Buddhist? Are you an urban Ninja? Are you into mysticism? What is your background?

You know, I go to a nondenominational Christian church here in Winnipeg.

Okay. And I realize I’m asking that is, I’m sure you’re familiar with this guy named Marshall. Is it right? Hey. Hey, suze. Some might call him Jesus. Um, I’m sure you’re familiar with this idea, but Jesus had, I believe Marshall, 12 apostles, uh, last time I checked and I believe that two of them you had Judas, who’s like a, if there’s any money involved here, I’d be happy to turn them in. One, one person. But then Peter was like, hey, I don’t know who he is. I don’t know who that, who that he is. I don’t know who you would ask him. What had happened was hey, through with, with, uh, talking to me and I was like, I don’t even know who you is. And so you had a Peter and Judas took 10 out of 12 of Jesus’s apostles could say we betrayed him or, or that kind of thing. And what’s crazy for two out of 12 out of 12 betrayed him. But, but what’s crazy is that of the 12 apostles, the people that the modern church was built on, 10 of the 12 of them died a violent death.

Hmm.

You know, I mean Martin Luther King Jr, I mean died, violent death. If you consider a gun wound, a violent death, a lot of people that stand for something get left alone. I think it’s a loan at the top, but I like it up there. It’s Kinda like A. I mean I do. Do you not agree with that as an entrepreneur that it’s. You can be lonely at the top, but we kinda like it up there. Do you agree with that idea?

I think humanity, when you try to save people, you try to help people like Jesus did. They nail you to a cross and crucify you and they think you’re coming to hurt them. Like Jesus is trying to help people. And the Romans nailed him to a cross and stuck a spear through him with all the criminals. Like think about that. So when I come and try to help a group of people in real estate are making money, they go, oh, it’s a scam. It’s a scam. The Sky’s falling. He’s going to hurt us. All these things. I think humanity is a pretty dark thing and when someone’s coming to help them, people attack their liberate or the person coming to save them. People attack him.

You know, this is interesting. Do you wanna hear something funny about our business conferences?

Tell me.

We don’t allow most people to come. So many people want to come to our workshops. Marshall, you see this, we live in our workshops about 100 people by the way, Stefan, December seventh and December eighth. Um, if you are available to come, you should really attend because they got nothing to up sell you. And it’s December seventh to eighth. We have a 20,000 square foot facility there in between my partner and I, uh, we have several hundred employees. And uh, on the eighth we have our big Christmas party at the historic, uh, Mayo hotel. It’s beautiful. M, a y o hotel. Um, and in Marshall we have hundreds of people from all over the world who come to our workshop and we’ve got, I believe, Grammy Award winning client. Charlie Javelina coming. He’s also a Nike Athlete. Yeah. And we’ve got, um, we’ve got Ken Schmidt, the guy who did the turnaround of, of Harley Davidson Davidson. He’s coming from he, he joined Harley Davidson 1985 to help them prevent.

He was hired to help them prevent bankruptcy and handled all their marketing. Turned them around until [inaudible] 99. We have, um, Michael Levine, Michael Levine, the PR consultant for Michael Jackson for prints for Nike. Did you get a new one today? Maybe potentially. Maybe Tom Peters, bestselling author. It looks like he is going to be there. There’s a lot of neat people, but the thing is we don’t allow it because of the conference starts at 7:00 AM and it’s so funny stuff and we’ll talk to them and say, what time does the conference start? And we’ll say, let’s just goes from 7:00 AM to 3:00 PM. There’s 45 minutes sprints than a 15 minute break and we do 15 of those and we serve lunch both days and stuff. We’ll go starts at seven. I’m out. But some people that’s doesn’t you get the you people on the phone, they’ll say, so do I guarantee you guarantee that I’m going to make all my money back.

We said let’s $250 to go, but if you’re not happy, it’s money back guarantee. But they go, but how do I guarantee that my time was worth it? And you’re like, there’s no upsells. We haven’t. How do I guarantee I’ll be successful? And like, well yeah, that’s probably not a good fit for you. So Marshall, I mean, do we not? We do. Do. We turned out people all the time. They can’t believe that they will want to attend people. We have the most reviews of any business workshop currently in America, but yet when people buy tickets, how often do we tell people? No, probably one out of three. Two out of three. I mean, yeah, there’s just not a good fit. So I mean, because I, I agree with you people. If we invited the crazy people to our conference, that’s what they want to do.

They want to nail honest people to the cross who tried to help them. It’s Matthew Five, 10, Matthew Five, 10 Steve, chime in as the mortgage guy. What does Matthew Five, $10, they’ll tell you, it’s all about a tattooed on my left, bicep underneath my website. True story, true, and it’s because a, blessed are those who are persecuted for righteousness, for theirs is the Kingdom of Heaven. That’s exactly what you’re talking about. Blessed are those who are persecuted for righteousness. Righteousness for theirs is the Kingdom of Heaven, because that’s what happened to Jesus. He was trying to save people and they persecuted him and they killed him and they put him on a cross. That’s what happens with a lot of people. That’s what happened with me. That’s what happened probably with clay. That’s what a lot of people talk about. When you say you get abandoned, that’s what it is. People. You’re doing the right thing.

You’re being righteous. You’re doing high, live behind a wall, and country clubs have walls. It’s to keep the most people out. Okay. So, uh, you talked in Chapter Twenty Six of your book. You said something that I have never agreed with more ever in my life. I read this and I go, yes, this guy is not a scammer. Let’s get them on the show. This is what it said in Chapter Twenty Six of your book. You said singles win the world series. I’ve never hit a home run in my entire life, but yet I have built my partner and I. We built 13 multimillion dollar companies. You know there’s an auto auction, a photography company, a men’s grooming business. There’s all different companies. We’ve started, but I’ve never hit a home run. I only hit singles. Can you please explain what you mean when you say singles win the world series?

Well, there’s a great movie called moneyball and it was written by Michael Lewis.

Great Book.

Both a great movie but a baseball team and they weren’t very good and they didn’t have a very good budget. I think there are in the major league baseball

what they do.

Go ahead.

Oakland athletics, Billy being the general manager I’m tracking with you.

There you go. Perfect. So they didn’t have a lot of budget for baseball players and the home run hitters were millions of dollars to hire. They didn’t have the budget, so they went and did the math and they started buying bases, so they said, well, for 30 grand we could hire a guy who could hit one base and for 40 grand we can hire this one base hitter, and they built the whole roster of one base hitters and they ended up winning the world series. So it’s a great story for business people because just like in most businesses the home runs are almost impossible to hit. Like the thing to hit a home run in baseball, the ball has to hit a pin size surface area on the back, which is almost impossible. So forget it. Let’s just get one base and then we’ll add up one base, one base, one base, one base, one base that’s going to add up to several points and overtime that’s winning the world series. So that’s my philosophy in business. My philosophy and real estate deals, we’re not trying to save the farm or not trying to do a grand slam or a home run. Let’s just hit single basis all day and that’s going to add up to something real nice.

I’m a business coach, I work with businesses all over the world and we have a wide range of industries. We have a lot of contractors, we have a lot of people that are doing startups, a lot of big businesses and one of the things I see with a contractors especially is that they have this one big deal coming down the pipe. They get interest and they want to bid it and then that could not possibly be good for them in any capacity because it’s going to tie up all of their cash and they’re going to end up getting terrible terms, but they wanted book that Swat Day on and they wanted it is because it’s a huge deal. It sounds they’ve never done a six figure deal. Do you think it is? Just talk about that deal right now. That is, can I have sexy deal? Tap all my money. So. So do you see this in real estate and why are those big deal so attractive and why do you have to. Why do you have to like stay away from those when you’re just getting started with investing?

It’s really good or really bad, like it’s like you were saying, if somebody goes and gets walmart as their first customer and they get all this financing and they get inventory in a warehouse and all this stuff, and then Walmart pulls the plug, you’re bankrupt in one shot. So you know, you’re either gonna it doesn’t work like that. You’re not just going win the game on one deal and you’re not gonna lose the game on one deal. I think it’s so much better. They dwelt there and flip a house, make 30 grand, slipped the host, make 30 grand, flip up like 30 grand. You’re not going to go build trump tower on the first deal. You know, if you go play monopoly while those cheap little crappy houses, and then eventually you get boardwalk. You don’t start out with boardwalk on day one. You’ve got to work your way up to that too.

And even trump built trump tower on day one. Uh, trump’s father had built up a very large portfolio of apartment complexes that he ran that were not terrible, not great. They were just average middle income middle America apartments in New York and when Donald took over the company, the company already had a great cash flow and a lot of assets that allowed him to do the deals that he was able to do it. His Dad had built that platform over a 30 year career in allowed donald to go for it. You know, and I just, I, I encourage everybody out there, just please recognize the truth of what Stefan just said. I’m stepping everybody out there who is saying, no, I’m on the fence. Why should I buy your book? You know, I’m hearing some things. It’s, you know, I know I spend $15 randomly at starbucks or at convenience stores buying crap I don’t need, but why should I invest the 20 bucks needed to by self made confessions of a 20 something self made millionaire. Why should people pull the trigger?

They don’t have to pull the trigger. So if you’re interested in going from zero to millionaire, if you’re interested in seeing what it takes and the mindset it takes to become a millionaire in five years or less, I think the books definitely be for you, but not for people who are. Whiners is not for Wimps, is not for people who think I have a magic wand or clay has a magic wand. It’s for people who are serious about building themselves into something and they really want to be something they’ve acknowledged. It’s going to take five years to be a millionaire. If that’s you, I think self made for you. But I’ll see clay. You don’t have to buy it. I’m just fine. I don’t need the money.

Final two questions for you here. A final two questions. How do you spend the first four hours of a typical day? Typical Day, you know, how, how do you spend the first four hours of your day?

Either one or two schedule schedule or having a vampire schedule? A night schedule. And I’ve been living on the vampire scheduled for some time, so it’s like the inverse of a typical day where all the good stuff with kicking the reading and stuff happens in the middle of the night. The morning scheduled though, you know, you got the wake up, you go to the gym, you got the breakfast, you got the journaling, you got the vision plan, the strategic planning, all that good stuff. That’s the morning schedule, which is really great. I recommend the morning schedule, but I’ve been living on the empire schedule where it’s like the flip reverse of that and it’s not happening between like midnight and four in the morning. So you know, those, those things with the journaling, the vision plan, uh, the reading, uh, if not the general stuff, you either got to put it in the morning at like 5:00 AM, 5:00 AM and you’re doing it like a vampire in reverse midnight schedule now. Why do you do the vampire schedule?

A couple things going on, a sales team that works at night. So I’m working with them so it stays pretty late. And then I’m also created this year. I wrote three books, I like writing and I do that at night, so the creative time at night, I just prefer it over the morning for creativity, but when I was just, I was not only gained like five because it was a day game, but now I’ve got an internet business and it’s kind of a global thing that’s our sort of don’t matter right now, so I flipped over to this weird night schedule and I don’t really love it, but it’s a really effective man. I mean, I can. I can do a lot of a lot of creative work in the middle of the night. That’s just how I roll

the nighttime. Now, let me ask you this here. You read a lot of books, a lot of great books, your books. I’m sure a lot of our listeners would love your books. If you had to recommend one or two books. For all the listeners out there, what would be one or two books that you would recommend for each and every one of our very entrepreneurial minded listeners’.

I’m thinking, grow rich. Got to read that. That is the Bible. I’m making money and what’s interesting is the road is not about making me. It’s all psychology, which I think is really good. Uh, I got to give it a throwback. The Rich Dad, poor dad. I think that’s a real magical book for dating someone out of the middle class mentality and putting them into the Richmond County and there’s hundreds and hundreds and hundreds of more books. That could be good. But those are two really big ones.

Well, I tell you what, marsh would like to end every show with a boom boom around here stands for big, overwhelming, optimistic momentum. Marshall, are you psychologically prepared to bring the boom? Absolutely. One hundred percent. Stefan, are you psychologically and mentally prepared to say the word boom with great enthusiasm? Okay, here we go. Marshall, here we go.

If you are like most humans that I know when you see two gas stations and one sells gas for a little bit less and they’re next to each other, you might go for the one that sells gas for less money. It, it makes sense. You know, every little bit can help you. I don’t really agree with that. I like to spend as much money as I possibly can on fossil fuels. It just something I’m into. But here’s what’s weird though. Sometimes we save a few pennies here and there and ignore opportunities to save huge money. I’m talking about life changing money. If you switch today as an example to medicare for your care, it could be a massive savings for you and your family. The typical savings for a family is about $500 a month. I repeat $500 a month. Ah, so. Okay. I have a quick question.

So when you said you could save like $500 a month, I mean, are you talking about actually being able to save $500 a month? Yes, that’s why I said the number. You could actually save $500 a month. Just think about that for a second. What would you do with all that extra money? Thrivers you can be buying a flat screen every single month. That’s 12 flat screens a year. $6,000 per year, or 12 flat screens per year. I have been trying to save up for 12 flat screens and it seems to be the most reasonable, prudent way to do it and yes, people love it. They love it because it works. It’s believers who share each other’s health care costs and now with over 400,000 people, a k, eight members of Medicare, again with over 400,000 members, there’s proof it works and it’s growing like crazy. It would be like having a seven foot tall third grader in your family. It’s like growing like a weed. It is. Taking off, find out how much you could save and why Medicare is so popular. Go to [inaudible] dot com, forward slash clay. That’s Medicare. E D, I share.com forward slash clay or call them at eight, four, four to five. Share for more info. That’s eight, four, four, two, five. Share.

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