Entrepreneur | Part 2 – Real Estate Terms With Michael Burer

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Audio Transcription

Get ready to enter the Thrivetime Show! We started from the bottom, now we’re here. We started from the bottom and we’ll show you how to get here. We started from the bottom, now we’re here. We started from the bottom, now we’re here. We started from the bottom, now we’re on the top. Teaching you the systems to get what we got. Cullen Dixon’s on the hooks, I’ve written the books. He’s bringing some wisdom and the good looks. As the father of five, that’s where I’mma dive. So if you see my wife and kids, please tell them hi. It’s C and Z up on your radio. And now, three, two, one, here we go. We started from the bottom, now we’re here. We started from the bottom, and that’s what we gotta do. Obscure Bureau. We are joined with a landscaper, a seagull, boats, people. We’re here at the Hotel Dell in San Diego. We are talking about cam cap. I’m gonna read the definition and he’s gonna tell us what it means in layman’s terms that my third grade mind can handle. So here we go. Michael, the maximum amount for which the tenant pays its share of common area maintenance costs, the owner pays for any cam expenses exceeding that amount. What is a CAM cap? So in many commercial leases, a tenant will pay a couple different components of their rent. They’ll pay base rent, which is a set amount for a month, and then they’ll pay CAM, or a portion of the maintenance for the building. You can negotiate a cap on that. So you can say basically, I’m not going to pay more than a certain percentage per year of common area maintenance. The percentage could be a percentage of my base rent, or a percentage increase year over year, but it’s some kind of cap on the common area maintenance. I want to throw an example of what not to do here. Years ago I leased space, I don’t want to put anyone under the bus, but 5800 East Skelly and I was there leasing space and like the amount per month was like $6,000 a month maybe and then the next year it’s like $7,100 a month and $7,200, $7,800. Pretty soon when I sold the business to the guy, by the time that he bought it for me to the time we finished leasing there it was just way up there. They’re like, well the cost of you know insurance went up, or the cost of the air conditioning went up. There was no cam cap. Had we had been smart, would we have negotiated a cam cap? Absolutely. So especially if it’s an older building where you know the landlord is going to spend a lot of money on redoing the air conditioning, you don’t want to get stuck with that cost, so you want to negotiate a cap on those types of expenses. Had we been smart, should we have negotiated a sound cap in this set, you think? Absolutely. Okay, now Michael, I appreciate you insulting me too, it’s very, very, very touching. But now I want to read you this, I want to read you this, this is something I’ve thought about last night. I was trying to write a haiku, you know, and I forget the rhyming pattern right, where it’s like five, or the space where it’s five syllables, seven syllables or something. How do you write a haiku? I was trying to do it. With no knowledge of how to ride a Haiku. Thank you. So I ended up writing this instead. The amount of appreciation that I have for you cannot be contained by this room without walls. Beautiful. Beautiful. All right. Boom. Fuck, fuck, fuck. All right, we are joined here in sunny San Diego, where we could really be out riding a banana boat right now, but instead we have chosen to be here with Michael, no real estate topic is too obscure, Burer, to talk about this little thing called capital expenditures. Now I’m going to read the definition, and when I finish reading the definition, I’m going to ask this guy to go ahead and give us an ample example that my mind can handle. So here we go. Property improvements that cannot be expensed as a current operating expense for tax purposes. Examples include a new roof, tenant improvements, or a parking lot and such items are added to the basis of the property and then can be depreciated over the holding period. Distinguished from cash flows, from cash outflows for expense items such as new paint or plumbing that can be expensed in the year they occur. What did I just say? What does that mean? What’s an ample example of what capital expenditures are? So capital expenditures are improvements to the building rather than just reoccurring maintenance. So for example, if you put a new roof on or you put a whole new air conditioning system into a building, that would be a capital improvement of the project. Versus if you just have the HVAC tech come out and service the air conditioning, that would just be an expense that you would immediately write off. Okay, here’s an example. My air conditioner, you’re saying, HVAC stops working. I’m like, this is, it’s hot in here. I did that on the Thrive set this year. And we spent like, it a little bit reminded me of a gangster rap record label. We had spent about 30 G’s on it. Like 30 G’s on the roof. It was very, very gangster rap-ish. How many G’s we spent there. We spent a bunch of money and we fixed it and when we got done it was exactly the same way it should have been. We didn’t improve it. It wasn’t any colder. But you put a whole new system in. A whole new system. Does that count as an expenditure? That would be a capital expenditure. Really? Yep. Okay. Another one here. Years ago I’m in the office and it’s raining. I’m noticing rain coming in. Rain, and I’m going, rain shouldn’t be in, I’m in the office. Rain’s coming in. Yep, yep. Fry’s the computer. Replace the computer. Is that a capital expenditure? Well, the new computer would be a capital expenditure. If you just pat, and talking about the roof, if you just patch those holes in the roof, that would be though an expense. But if you put a whole new roof on, that would be a capital expenditure. Yeah, I just patched. Just patch? I’m the kind of guy who’s just going to patch. I’m going to patch that roof until it’s thatch. Just an expense. All right. Well, Michael, I appreciate you being here. Really, really more than words can express. And I just want to confess that you are a beautiful man. I appreciate that. Boom. We are here in sunny San Diego, joined by birds, joined by landscapers, joined by the ocean view. Talking with Michael, there is no real estate topic too obscure, Bure, to talk about this beautiful topic of capital gain. Now we could be out there really doing a variety of outdoor tasks. We could be on the beach right there. But we’re not. We’re here for you, teaching you this here. So I’m going to go ahead and read the definition of capital gain, and Michael’s going to provide us with an ample example that my third grade mind can handle. So here we go. Taxable income derived from the sale of an asset. It is equal to the sales price less the cost of sale. Adjusted basis. Suspended losses. Excess cost recovery. And recapture of straight line cost recovery. What does that mean? So capital gain typically refers to when you’re talking about your income, your taxable income. And it’s distinguished from your ordinary income. Capital income would be any type of profits that you make from a long-term from an investment. So if you buy a stock at a hundred dollars, you sell it at two hundred dollars, you made a hundred dollars of capital gains versus your salary you get would be ordinary income. Let me kind of ask you, as it works out here. There’s a guy I know and he’s a burly man, a very, very strong man, a high-integrity man, the kind of man that you would want your kids to watch if you for some reason wanted a man to watch your kids. This guy, he took some money and he bought a pot machine. A pot machine? Yeah, a soda machine. What do you call it out here? What do you call it? We’re going to be geographically sensitive to you people. Soda. Soda. We got a soda machine. I wouldn’t know what that was. If it said soda machine in my office, I would just sit there and look at it. What is this? But anyway, so there’s a soda machine, pop machine, and he puts money, he puts like $2,000 into this thing. And he puts the little sign on there, and it’s basically like, it’s almost like a note to the employees. Screw you guys, it’s like a dollar a can, let’s say. And at the end of the year, you know, he buys the pop for 40 cents, sells it for a dollar, and he brings in $10,000 by selling pop to the employees. Does this burly man need to report that as capital gain? No, that’s ordinary income. Really? Yeah, but if he sold that pop machine for $5,000, that profit, that would be capital gains. Okay, let’s do another example. Say a guy like myself, really it was myself, so me, I bought a house. Camera guys can’t laugh, this is a serious subject here. People want to know so I buy a property Off and I buy it is buying this church. You got a great deal By the way, the church sells to me for no kidding like thirty five thousand dollars house is worth like a hundred and something So Braxton one of our thrive mentors and I we team up we buy the house. We flip the house. We fix the house The guy is supposed to fix the house Screws up there guys supposed to screw it fix it screws up long story. So we make some money but not much money. He’d make about $25,000. 25, now we had to go there and whip him into shape and harass him and get to work, guy, tile guy, come on. But we did end up making $25,000. Is that a capital gain? In most cases, that would be a capital gain. In what case would it not be? There’s some tax rules that if you’re flipping the houses, that it could be considered ordinary. So if your holding period isn’t long enough. So typically you have to hold an asset for a year for it to be considered capital gains. Okay, I’m gonna do another example. Just one more, I wanna make sure I’m getting clarity on this. A guy, let’s say a guy looks just like me, he is me, again. And I bought a party rental company from a dude, we’ll call him Todd, for the sake of example and just for real life, his name is Todd. I actually bought it from Todd. I buy it from Todd and then I run it and I sell it for more than I paid for it. Capital gains. Okay. So again, can you repeat capital gains just so I can really get at what that means? So capital gains is really the profits that you get on an investment versus the income you get from a business, the ongoing revenue you get from a business. So in real estate, the rents you collect from the tenants, that’s ordinary income. But when you sell the building and make money, that would be a capital gain. Or if you lost money on the investment, that would be a capital loss. I wanted to think of a way to tell you how much I appreciate you being here. And so I started to write something. I threw it away, wrote something else, crumpled it up. I really was getting frustrated. So this is what I’ve come up with. I appreciate you so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so much. I’ll get it together. I do this to appreciate you. I appreciate you too, Clay. We are here today with you because you are Michael. There is no real estate topic to obscure a beer. We are joined in this hallowed Hotel Del in beautiful San Diego. And we could be out, you know, you can be out on a porch swing just kind of going back and forth, but we’re not. We’re here, we’re choosing to be here sacrificing to talk about something you know about, capital market. I’ll read the definition and if you can go ahead and tell the Thrivers what it means, that’d be great. Got it. Here we go. Capital market, the supply and demand for resources to invest in real estate and other investments. In your mind, what does capital market mean? Capital market is a general term that refers to all of the money that’s in the market, particularly in the real estate market, debt and equity that’s going after investment opportunities. So when would you talk about this? I mean, you’re the CFO of a big billion dollar real estate group there. When does this term come up? So in an improving capital market, for example, you would expect to have a lot of lenders out there offering more competitive terms for debt. This is sort of a broad thing. This is like a big, we’re talking about the big economy here. Hey, the overall capital market is good, it’s bad. This isn’t the kind of thing you normally talk about inside your own small business. Right, but if everyone’s getting out of the market at the time, the capital market is poor. Now, Michael, words can’t really express how much I appreciate you. I just hope that this giant picture of a beluga whale can. I love beluga whales, what can I say? Alright, we are joined here in sunny San Diego with Michael. There is no real estate topic to obscure beer. And we are talking about this beautiful topic called capital tax. I’m going to read the definition. You can give us an ample example of what we’re talking about. Any tax on a change in capital value, as distinguished from a tax on income. What? What are we talking about? So we’re talking about a tax rate that’s applied to capital gains. So the profits on an investment in capital items versus a tax that would be on just regular ordinary income. So there’s different tax rates that the government applies. Some apply to your regular income, ordinary income, but if you’re an investor and you buy a building for a hundred thousand dollars, you sell it for a hundred and fifty, there’s a different tax rate, a capital tax rate, that’s applied to that profit. Let’s say I’m a schoolteacher, I’m buying my first investment property right now. It’s the first time I’ve ever bought one, and I’m going, I’m worried about the taxes, I’m worried about the capital tax, I’m worried about what I’m going to pay. A lot of people don’t invest because they get worried about the tax ramification of it. When is the capital tax assessed and how do you know what it’s going to be? It’s usually assessed on the sale or when you realize the gain. So when you sell it, then that’s when they’re going to tell you about your capital tax? That’s when you would recognize the profits and that’s when you would realize the tax. So before you sell it, you probably want to talk to an accountant to find out what the taxes would be, right? Absolutely. And then when you do sell it, if you want to avoid paying taxes and you want to put it into some more property, can you do that kind of thing? You can do something. It’s called a 1031 exchange and there’s certain very specific rules that you would need to follow to qualify, but effectively you can roll over or defer that gain for a subsequent period. Okay, awesome. And Mike, I hope that makes sense to all the thrivers out there. I know that personally, you know, some of these terms can get confusing, especially when you hear them in succession. And so I really appreciate you bringing a lot of clarity there. And I just want you to know, I kind of jarred this down in a napkin last night. I was kind of like having this epiphany, you know, and I thought, I’ll go ahead and tell them. No, I shouldn’t. Yeah, I should. But I’m going to read it to you here. I appreciate you as much as a third grader appreciates a good bouncy Alright, we are here with Michael. There is no real estate topic, period, on the planet to obscure beer, talking about capitalization rates. We’re in San Diego, we could be over here. If we were just to hop on the other side of this railing, for instance, we could be having a good old time, but we are here having a good old time talking about capitalization rate. I’m going to read the definition. He’s going to give us an ample example of what it means and here we go. A percentage that relates to the value of an income producing property to its future income expressed as net operating income divided by purchase price also referred to as cap rate. When people say what’s the cap rate, what does that mean? Well, it’s describing the yield that you would expect to get from a property, or how much money you think you’d get from the property. So if the property cost $100 and it had a six cap, you’d expect that you’d get $6 per year for an income. So it’s a way of comparing two different assets. This is a 10 cap, this is a six cap, this is an eight cap. It’s measuring the yield. It’s a percentage. It’s a percentage. Okay, it’s a percentage. So if I have a 22 cap, one, you’re going, that’s crazy, probably not real, but that’s 22%. Right, exactly. If you’re watching this and it doesn’t make sense here, we really want to make it just crystal clear. And if you already get it, I apologize for belaboring it, but what you’ll find as you get into the world of real estate investment is people will constantly say, what’s the cap rate? What is the cap rate? They say it all the time. And so when do you see this terminology get thrown around from your job working in real estate. When you’re buying, selling, when you’re valuing a building, you talk about the cap rate. This term is used more than almost any other term. You hear it all the time, don’t you? Yeah, definitely. You hear it quite a bit. And, you know, as the market is improving, you would expect the cap rates to fall. In a declining market, you would expect cap rates to rise because investors would need a higher yield. Oh, boy. You’re getting deep for a second. You said in a declining market, so when the economy is getting worse, what would happen? Cap rates would go up. Why? Because investors would need a higher yield or more return on their invested dollars in order to purchase that same building. OK, now if you’re watching this and you don’t get it, just put that in reverse, rewind it. I just want to make sure we totally get this idea. Now, Michael, I appreciate you being here. Really, but there aren’t enough unicorns in the world that I could give to you as a gift to express how much I appreciate you being here today. I appreciate it. There’s no unicorns in the world. I don’t know that we can agree on that. Boom. Alright, today we are joined in sunny San Diego with Michael, there is no real estate topic to obscure Bure. And we are talking about this little thing called cash flow. I’m going to read the definition and he’s going to give us a kind of ample example that my mind can handle as to what it means and what it means to you in your business or the business you’re thinking about starting. So here we go. Cash flow. The net cash received in any period taking into account net operating income, debt service, capital expenses, loan proceeds, sales revenue and any other sources and uses of cash. What does that mean? Cash flow. So that’s what we really all care about. How much cash am I putting in my pocket at the end of the day from a particular investment? How much cash am I putting in my pocket at the end of the day? Right. First is you distinguish it from net income. So net income doesn’t include, for example, capital expenditures. You put a new roof on the building, you’ve got to capitalize that, and that does not affect, it’s not something you can expense or deduct from your income, but it certainly is a deduction from your cash flow, how much money you’re actually pulling out of the business or the real estate. Let’s say I’ve got a profit and loss statement, or a statement that shows how much money is coming in, how much money is coming out. Is that summarizing my cash flow? No, the statement of, your income statement is just going to take your profit, your revenue minus your expenses. But your expenses don’t include certain things. For example, they don’t include the principal payments you would make on a loan. They don’t include items that you have to capitalize, improvements to the project. So those would be on a cash flow statement and would certainly be a reduction in how much cash you’re taking out at the end of the month. So cash flow, very important, that’s the whole point. That’s often the point, yep. What is the, when you’re in real estate at your level, where you guys have a ton of properties all over the world, how often is the discussion of cash flow brought up? Well it depends on what your investment goals are. Sometimes you would choose to invest in something that had not a lot of cash flow because there may be more residual down the road, but it’s often a key component. What does the word residual mean? The return at the end of the investment. Okay. So it’s an end event. Do you ever have people that confuse you for just Captain Awesome? Only you. Well, Michael, I wrote this down and I almost shuddered to be like, oh, if I were to say this to him, how would it affect the relationship? And I was kind of like, well, you got to be candid. You know what I mean? So I’m just going to say it here. Here we go. I appreciate you like a jelly donut appreciates its sweet strawberry filling. Nice. Real good. I’m sorry to laugh. I just get very emotional, and I do a laugh or cry. Hola. My name is Clay Clark, and I’m joined here today with Michael. There is no real estate topic to obscure, beer within about 30 miles of Mexico. San Diego, got a beautiful view back there. If you’re curious as to where we are, we’re at the Hotel Del. And sure, we could be at the San Diego Zoo. We could be at a Padres game, but we’ve chosen to be here talking about cash on cash rate for you. Now Michael, I’m going to read the definition and then if you can go ahead and bring an ample example that the Thrivers can handle, I would appreciate it if you do so. Bring a little clarity. A return measure that is calculated as cash flow before taxes divided by the initial equity investment. Can you go ahead and try to sift through all the audio clutter and tell us what exactly cash on cash rate means. Cash on cash is the cash proceeds that the investment is producing divided by your initial investment or the amount of money you put into the project from the beginning. At what point as an investor do you start to talk about this kind of stuff right here, this cash on cash rate? Is this something that is brought up a lot when you’re trying to get funding? Definitely when you get funding, when you’re evaluating the investment, what kind of return am I going to get on the project, you look at the cash on cash to evaluate this investment versus an alternative investment. And I just want you to know, I am looking at you. I just went diving outside about a year, and I can’t, my eyes don’t process the sun’s rays very well. It is bright and sunny San Diego. Now, I was at one of our survivors, he got married recently, I was at his wedding, and I was at his wedding, he’s coming down the aisle, and this idea came to me, and I wanna read to you what came to me at the wedding. Let’s hear it. Michael, I appreciate you, but even with 17 suborbital satellites, I couldn’t communicate the magnitude of how much I appreciate you if I tried. Glad to help. Boom. All right, we’re here with Michael. There is no real estate topic. Too obscure. Burer talking about a topic that I know you’re interested in. Clothes. Clothes, you say? Like clothes you wear? No, no. Like real estate clothes. Like closing a deal, maybe. Michael, I’m going to read you the definition. I’d like to see if you can provide an ample example that my mind can handle. Here we go. Clothes. The third stage of four-stage transaction management process pertaining to the bringing the parties together and consummating an agreement. The acronym CLOSE represents the contingencies, legal instruments, obstacles, signatures, and execution involved in the CLOSE stage. Layman’s terms, what’s a CLOSE? You said it, it’s just the end of the transaction. When it’s all over, when the deal’s over, you’re the proud owner or you just sold an asset, you’ve closed on the deal. How much, in the real estate world, do people get excited when you close the deal? I mean, is that a big deal? You want to ring the bell when you close. Do you remember the first time you closed a big deal? Yeah. I’ll go into too much of the specifics of the actual property, but I mean, what would, how big was the property? Was your first, in your mind, big deal? It wasn’t that big, but it was a great investment to see it all the way through, and a pretty exciting process to finally have that big close. I think a lot of entrepreneurs, we’re impatient. We’re highly motivated. We’re impatient. We’re highly motivated. We’re impatient. How long does it take, usually, in a commercial deal? If you’re doing a deal that’s a $10 or $20 million deal, how long does it take from the time that someone goes, I think I might want to buy that, to the time it actually happens, usually? It can be a long process, sometimes four to six months, even. Really? Yeah. Wow. And that’s just typical. Yeah. Four to six months. Depending on the deal, I mean, it could be faster, two to three. But you’re seeing a deal take a year? Sure, deals will go on and off. Yeah. So how do you handle the fact that you have all these deals going on, and at any point, one might close? I mean, you just kind of push each one forward a little bit every day? You got to determine where you got to spend your time, and which one has the greatest prospects of success, and dig in on that one. But your firm with, you know, billion dollars of properties, you probably always on the verge of closing something or you’re always working multiple deals, right? Absolutely. You try to be okay. The Well, Michael, I appreciate you for being here. And I just wanted to tell you, did you see that? That was my appreciation flying all around. Alright Thrive Nation, we are here with Michael. There is no real estate topic too obscure. Burer. And we’re talking about commercial real estate. Specifically we’re defining this. What does it mean? So I’m going to read the definition. He’s going to provide us an ample example that my mind can handle so that we can learn a little bit more about this incredible definition. So commercial real estate, that’s any multi-family residential office, industrial or retail property that can be bought or sold in a real estate market. What does this mean? So commercial real estate is pretty much all real estate with the exception of residential real estate. So single-family homes, duplexes, that will be residential. Everything else that you think of, an office building, a shopping center, an apartment, those are all commercial real estate. What is not commercial real estate? Single-family home. That is a large bird. Look at that bird. There he is. He’s just hanging out. He’s interested in commercial real estate. He’s a thriver. Unbelievable. So if anybody here is, let’s say you have a home that you work out of your home. Is that considered commercial real estate? Nope. That would be a single family home. OK. Residential. Michael, I was walking down the beach, sitting in San Diego here, walking down the beach. And I kind of thought of this big thing I want to read to you. On a scale of one to Gandhi, I appreciate you at a level of 76.2. That’s it? That’s it. That’s it. And it’s not a funny deal. I’m so touched. I appreciate that. And the way I process intense emotions is with laughter. All right Thrive Nation, we are here with Michael. There is no real estate topic to obscure Bure. And we are talking about common area. It’s a real estate term you need to know. We’re in sunny San Diego and really we have chosen to set the day aside to be here to talk about this concept of common area. So Mike, I’ll read the definition and if you can provide me an ample example that my mind can handle, I’d appreciate it. Got it. For lease purposes, the areas of a building and its site that are available for the non-exclusive use of all its tenants such as lobbies, corridors, and parking lots. What? You said it. So this is the area of the building that is not specific to a tenant, not part of their usable area, but is often included in their rentable area. All the tenants can use it. So the lobbies, the elevators, the stairwells. But you pay for it on your lease. Often you do if it’s a lease that’s based on a rentable area. In my building, I talked about this in one of our other episodes, but in case the thrivers haven’t seen it, I know with one of my businesses, I lease to, let’s say, 4,000 square feet. I’m getting a bill that’s much larger than what I thought I agreed to. And they say, oh, we’re charging you for the lobby. Is this common? It is. So you pay for your pro rata share or your percentage share of the common areas in the project in a multi-tenant building. Does that help the lease income for you, though, when you have a property like in Hawaii? Because you guys have properties all over the world. When you’re in Hawaii and you have an unbelievable lobby or a beautiful, does that help? I mean, that helps you a lot, right? I mean, even though people aren’t going to use it individually, it might be worth it if you’re trying to put on a show or wow clients or create a certain prestige, right? Yeah, if you have those amenities. It’s just really an industry practice on how you determine the rentable area is you include those common areas of the building. Michael, I wanted to read you something touching and I process a lot of times intense emotion with laughter. So if I laugh at any point it’s just because of how intense my appreciation for you is. I wrote this last night about 6 p.m. I was kind of looking into the ocean there. It says, if you stack all the appreciation I on top of each other, it would extend to at least Saturn. Thank you. Boom. Boom. All right, we’re here with Michael. There is no real estate topic to obscure. Beer talking about one of his favorite subjects, a subject that Steve’s deeply passionate about, a subject we can all connect with. It’s called CAM. Cam Newton? No, CAM, Common Area Maintenance. I’m going to read the definition, he’s going to tell you an example, and here we go. Common Area Maintenance. Charges paid by the tenant for the upkeep of areas designated for use and benefit of all tenants. Cam charges are common in shopping centers and tenants, that’s business owners who are leasing space, are charged for parking lot maintenance, snow removal, and utilities. Give me an example of what CAM is or how I might see it on my bill if I’m a typical business owner. So this is the cost of running the project often. So it’s the security, it’s the landscaping, and often landlords would charge this back in addition to the base rent. Each tenant would pay their percentage share of those costs to run the whole complex. Talk to me about triple net leases for a second. I hear a lot of thrivers are emailing, I get a lot of questions are saying I’ve got a triple net lease, what does this mean? How does this affect how much I pay in common area maintenance? So triple net lease. Talk to me about what that means and how that relates to common area maintenance. So there’s different types of leases. Gross leases means that the tenant doesn’t pay any reimbursements or any common area expenses. That would be a gross lease. At the other end of the extreme, you have triple net leases, where the tenants are paying all of those operating costs. 100% of them. And those are more typically found in retail leases, but although it varies based on the geographical area. Okay. I appreciate you bringing some clarity there. I’m kind of a poet, and a lot of my stuff’s not published, and a lot of people don’t appreciate it yet, because I’m ahead of my time. But I wrote this for you last night, and it’s touching to me. I hope that it’s touching to you in a way that’s appropriate, where it doesn’t actually touch you. Counting the appreciation I have for you would take about as long as counting the digits of pi. JT, do you know what time it is? 410. It’s T-Boat time in Tulsa, Roseland, baby! Tim Tebow is coming to Tulsa, Oklahoma, June 27th and 28th. We’ve been doing business conferences here since 2005. I’ve been hosting business conferences since 2005. What year were you born? 1995. Dude, I’ve been hosting business conferences since you were 10 years old, but I’ve never had the two-time Heisman Award winning Tim Tebow come present. And a lot of people, you know, if I followed Tim Tebow’s football career on the field and off the field, and off the field, the guy’s been just as successful as he has been on the field. Now, the big question is, JT, how does he do it? Well, they’re gonna have to come and find out because I don’t know. Well, I’m just saying, Tim Tebow’s gonna teach us how he organizes his day, how he organizes his life, how he’s proactive with his faith, his family, his finances. He’s going to walk us through his mindset that he brings into the gym, into business. It is going to be a blasty blast in Tulsa, Russia. Also this is the first Thrive Time Show event that we’ve had where we’re going to have a man who has built a $100 million net worth. Wow. Who’ll be presenting. Now we’ve had a couple of presenters that have had a billion dollar net worth in some like real estate sort of things. But this is the first time we’ve had a guy who’s built a service business and he’s built over a hundred million dollar net worth in the service business. It’s the yacht driving, multi-state living guru of franchising. Peter Taunton will be in the house. This is the founder of Snap Fitness, the guy behind nine round boxing. He’s going to be here in Tulsa, Russel, Oklahoma, June 27th and 28th. JT, why should everybody want to hear what Peter Taunton has to say? Oh, because he’s incredible. He’s just a fountain of knowledge. He is awesome. He has inspired me listening to him talk. Not only that, he also practices what he teaches, so he’s a real teacher. He’s not a fake teacher like business school teachers. So you’ve got to come learn from him. Also, let me tell you this, folks. I don’t want to get this wrong, because if I get it wrong, someone’s going to say, you screwed that up, buddy. So Michael Levine, this is Michael Levine. He’s going to be coming. He said, who’s Michael Levine? I don’t get this wrong. This is the PR consultant of choice for Michael Jackson, for Prince, for Nike, for Charlton Heston, for Nancy Kerrigan, 34 Grammy Award winners, 43 New York Times bestselling authors he’s represented, including pretty much everybody you know who’s been a super celebrity. This is Michael Levine, a good friend of mine. He’s going to come and talk to you about personal branding and the mindset needed to be super successful. The lineup will continue to grow. We have hit Christian reporting artist Colton Dixon in the house. Now people say, Colton Dixon’s in the house? Yes, Colton Dixon’s in the house. So if you like top 40 Christian music, Colton Dixon’s going to be in the house performing. The lineup will continue to grow each and every day. We’re going to add more and more speakers to this all-star lineup, but I encourage everybody out there today, get those tickets today. Go to Thrivetimeshow.com. Again, that’s Thrivetimeshow.com. And some people might be saying, well, how do I do it? What do I do? How does it work? You just go to Thrivetimeshow.com. Let’s go there now. We’re feeling the flow. We’re going to Thrivetimeshow.com. Again, you just go to Thrivetimeshow.com. You click on the Business Conferences button, and you click on the request tickets button right there. The way I do our conferences is we tell people it’s $250 to get a ticket or whatever price that you can afford. And the reason why I do that is I grew up without money. JT, you’re in the process of building a super successful company. Did you start out with a million dollars in the bank account? No, I did not. Nope, did not get any loans, nothing like that. Did not get an inheritance from parents or anything like that, I had to work for it. And I’m super grateful I came to a business conference. That’s actually how I met you, met Peter Tong, and I met all these people. So if you’re out there today and you want to come to our workshop, again, you just got to go to Thrivetimeshow.com. You might say, well, when’s it going to be? June 27th and 28th. You might say, well, who’s speaking? We already covered that. You might say, where is it going to be? It’s going to be in Tulsa, Russia, Oklahoma. I suppose it’s Tulsa, Russia. I’m really trying to rebrand Tulsa as Tulsa Ruslim, sort of like the Jerusalem of America. But if you type in Thrive Time Show and Jinx, you can get a sneak peek or a look at our office facility. This is what it looks like. This is where you’re headed. It’s going to be a blasty blast. You can look inside, see the facility. We’re going to have hundreds of entrepreneurs here. It is going to be packed. Now, for this particular event, folks, the seating is always limited because my facility isn’t a limitless convention center. You’re coming to my actual home office. And so it’s going to be packed. So when? June 27th to 28th. Who? You! You’re going to come! I’m talking to you. You can get your tickets right now at ThriveTimeShow.com. And again, you can name your price. We tell people it’s $250 or whatever price you can afford. And we do have some select VIP tickets, which gives you an access to meet some of the speakers and those sorts of things. And those tickets are $500. It’s a two-day interactive business workshop over 20 hours of business training. We’re going to give you a copy of my newest book, The Millionaire’s Guide to Becoming Sustainably Rich. You’re going to leave with a workbook. You’re going to leave with everything you need to know to start and grow a super successful company. It’s practical, it’s actionable, and it’s TiVo time right here in Tulsa, Russia. Get those tickets today at Thrivetimeshow.com. Again, that’s Thrivetimeshow.com. Hello I’m Michael Levine and I’m talking to you right now from the center of Hollywood California where I have represented over the last 35 years 58 Academy Award winners 34 Grammy Award winners 43 New York Times bestsellers I’ve represented a lot of major companies and I think I’ve learned a few things about what makes them work and what makes them not work. Now, why would a man living in Hollywood, California in the beautiful sunny weather of LA come to Tulsa? Because last year I did it and it was damn exciting. Clay Clark has put an exceptional presentation. Really life-changing and I’m looking forward to seeing you then. I’m Michael Levine. I’ll see you in Tulsa. James did I tell you my good friend John Lee Dumas is also joining us at the in-person two-day interactive Thrive Time Show business workshop. That Tim Tebow and that Michael Levine will be at the… have I told you this? You have not told me that. He’s coming all the way from Puerto Rico. This is John Lee Dumas, the host of the chart-topping EOFire.com podcast. He’s absolutely a living legend. This guy started a podcast after wrapping up his service in the United States military, and he started recording this podcast daily in his home, to the point where he started interviewing big-time folks like Gary Vaynerchuk, like Tony Robbins. And he just kept interviewing bigger and bigger names, putting out shows day after day, and now he is the legendary host of the EO Fire podcast, and he’s traveled all the way from Puerto Rico to Tulsa, Oklahoma to attend the in-person June 27th and 28th Broad Time Show, two-day interactive business workshop. If you’re out there today, folks, if you’ve ever wanted to grow a podcast, a broadcast, you want to improve your marketing, if you’ve ever wanted to improve your marketing, your branding, if you’ve ever wanted to increase your sales, you want to come to the two-day interactive June 27th and 28th Thrive Time Show Business Workshop featuring Tim Tebow, Michael Levine, John Lee Dumas, and countless big-time, super successful entrepreneurs. It’s going to be life-changing. Get your tickets right now at thrivetimeshow.com. James, what website is that? Thrivetimeshow.com One more time for the 40’s Enthusiasts! ThriveTimeShow.com These people I ride with, this moment we own it. Thrive Time Show two day interactive business workshops are the world’s highest rated and most reviewed business workshops because we teach you what you need to know to grow. You can learn the proven 13 point business system that Dr. Zellner and I have used over and over to start and grow successful companies. We get into the specifics, the specific steps on what you need to do to optimize your website. We’re going to teach you how to fix your conversion rate. We’re going to teach you how to do a social media marketing campaign that works. How do you raise capital? How do you get a small business loan? We teach you everything you need to know here during a two-day, 15-hour workshop. It’s all here for you. You work every day in your business, but for two days you can escape and work on your business and build these proven systems so now you can have a successful company that will produce both the time freedom and the financial freedom that you deserve. You’re going to leave energized, motivated, but you’re also going to leave empowered. The reason why I built these workshops is because as an entrepreneur I always wish that I had this. And because there wasn’t anything like this, I would go to these motivational seminars, no money down, real estate, Ponzi scheme, get motivated seminars, and they would never teach me anything. It was like you went there and you paid for the big chocolate Easter bunny, but inside of it, it was a hollow nothingness. And I wanted the knowledge, and they’re like, oh, but we’ll teach you the knowledge after our next workshop. And the great thing is we have nothing to upsell. At every workshop, we teach you what you need to know. There’s no one in the back of the room trying to sell you some next big get rich quick, walk on hot coals product. It’s literally, we teach you the brass tacks, the specific stuff that you need to know to learn how to start and grow a business. I encourage you to not believe what I’m saying, but I want you to Google the Z66 auto auction. I want you to Google elephant in the room. Look at Robert Zellner and Associates. and associates, look them up and say, are they successful because they’re geniuses or are they successful because they have a proven system? When you do that research, you will discover that the same systems that we use in our own business can be used in your business. Come to Tulsa, book a ticket, and I guarantee you it’s gonna be the best business workshop ever and we’re gonna give you your money back if you don’t love it. We’ve built this facility for you and we’re excited to see it. And now you may be thinking, what does it actually cost to attend an in-person, two-day interactive Thrive Time Show business workshop? Well, good news, the tickets are $250 or whatever price that you can afford. What? Yes, they’re $250 or whatever price you can afford. I grew up without money and I know what it’s like to live without money, so if you’re out there today and you want to attend our in-person, two-day interactive business workshop, all you got to do is go to thrivetimeshow.com to request those tickets. And if you can’t afford $250, we have scholarship pricing available to make it affordable for you. I learned at the Academy at Kings Point in New York, octa non verba. Watch what a person does, not what they say. Good morning, good morning, good morning. Harvard Keohl’s Academic Standard Radio Show. Today I’m broadcasting from Phoenix, Arizona, not Scottsdale, Arizona. They’re closed, but they’re completely different worlds. And we have a special guest today. Definition of intelligence is if you agree with me, you’re intelligent. And so this gentleman is very intelligent. I’ve done his show before also, but very seldom do you find somebody who lines up on all counts. And so Mr. Clay Clark is a friend of a good friend, Eric Trump. But we’re also talking about money, bricks, and how screwed up the world can get in a few and a half hours. So Clay Clark is a very intelligent man, and there’s so many ways we could take this thing. Since you and Eric are close, Trump, what were you saying about what Donald, who is my age, and I can say or cannot say? Well, first of all, I have to honor you, sir. I want to show you what I did to one of your books here. There’s a guy named Jeremy Thorn, who was my boss at the time. I was 19 years old, working at Faith Highway. I had a job at Applebee’s, Target, and DirecTV. He said, have you read this book, Rich Dad, Poor Dad? And I said, no. And my father, may he rest in peace, he didn’t know these financial principles. So I started reading all of your books and really devouring your books. And I went from being an employee to self-employed to the business owner, to the investor. And I owe a lot of that to you. And I just wanted to take a moment to tell you, thank you so much for allowing me to achieve success. And I’ll tell you all about Eric Trump. I just want to tell you, thank you, sir, for changing my life. Not only that, Clay, thank you, but you’ve become an influencer. More than anything else, you’ve evolved into an influencer where your word has more and more power. That’s why I congratulate you on becoming. Because as you know, there’s a lot of fake influencers out there, too, or bad influencers. Anyway, I’m glad you and I agree so much, and thanks for reading my books. Yeah. That’s the greatest thrill for me today. Not a thrill, but recognition is when people, young men especially, come up and say, I read your book, changed my life, I’m doing this, I’m doing this, I’m doing this. I learned at the Academy, Kings Point in New York, acta non verba, watch what a person does, not what they say. Whoa. Hey, I’m Ryan Wimpey. I’m originally from Tulsa, born and raised here. I went to a small private liberal arts college and got a degree in business, and I didn’t learn anything like they’re teaching here. I didn’t learn linear workflows. I learned stuff that I’m not using and I haven’t been using for the last nine years. So what they’re teaching here is actually way better than what I got at business school, and I went what was actually ranked as a very good business school. The linear workflow, the linear workflow for us and getting everything out on paper and documented is really important. We have workflows that are kind of all over the place so having linear workflow and seeing that mapped out on multiple different boards it’s pretty awesome that’s really helpful for me. The atmosphere here is awesome. I definitely just stared at the walls figuring out how to make my facility look like this place. This place rocks. It’s invigorating. The walls are super… it’s just very cool. The atmosphere is cool. The people are nice. It’s a pretty cool place to be. Very good learning atmosphere. I literally want to model it and steal everything that’s here at this facility and basically create it just on our business side. Once I saw what they were doing, I knew I had to get here at the conference. This is probably the best conference or seminar I’ve ever been to in over 30 years of business. You’re not bored. You’re awake, alive the whole time. It’s not pushy. It’ll try to sell you a bunch of things. I was looking to learn how to just get control of my life, my schedule, and just get control of business. Planning your time, breaking it all down, making time for the F6 in your life, and just really implementing it and sticking with the program. It’s really lively, they’re pretty friendly, helpful, and very welcoming. I attended a conference a couple months back, and it was really the best business conference I’ve ever attended. At the workshop I learned a lot about time management, really prioritizing what’s the most important. Biggest takeaways are, you know, you want to take a step-by-step approach to your business. Whether it’s marketing, you know, what are those three marketing tools that you want to use to human resources. Some of the most successful people and successful businesses in this town, their owners were here today because they wanted to know more from Clay, and I found that to be kind of fascinating. The most valuable thing that I’ve learned is diligence. That businesses don’t change overnight. It takes time and effort, and you gotta go through the ups and downs of getting it to where you wanna go. He actually gives you the road map out. I was stuck, didn’t know what to do, and he gave me the road map out step by step. We’ve set up systems in the business that make my life much easier, allow me some time freedom. Here you can ask any question you want, they guarantee it will be answered. This conference motivates me and also gives me a lot of knowledge and tools. It’s up to you to do this. Everybody can do these things. There’s stuff that everybody knows, but if you don’t do it, nobody else can do it for you. I can see the marketing working. It’s just an approach that makes sense. Probably the most notable thing is just the income increase that we’ve had. Everyone’s super fun and super motivating. I’ve been here before but I’m back again because it motivated me. Your competition is going to come eventually or try to pick up these taggets. So you better, if you don’t, somebody else will. I’m Rachel with Tip Top K9 and we just want to give a huge thank you to Thrive 15. Thank you to Make Your Life Epic. We love you guys. We appreciate you and really just appreciate how far you’ve taken us. This is our old house. Right, this is where we used to live two years ago. This is our old neighborhood. See, it’s nice, right? So this is my old van and our old school marketing. And this is our old team. And by team, I mean it’s me and another guy. This is our new house with our new neighborhood. This is our new van with our new marketing, and this is our new team. We went from four to 14, and I took this beautiful photo. We worked with several different business coaches in the past, and they were all about helping Ryan sell better and just teaching sales, which is awesome, but Ryan is a really great salesman, so we didn’t need that. We needed somebody to help us get everything that was in his head out into systems, into manuals and scripts and actually build a team. So now that we have systems in place, we’ve gone from one to ten locations in only a year. In October 2016, we grossed 13 grand for the whole month. Right now it’s 2018, the month of October. It’s only the 22nd, we’ve already grossed a little over 50 grand for the whole month and we still have time to go. We’re just thankful for you, thankful for Thrive and your mentorship and we’re really thankful that you guys have helped us to grow a business that we run now instead of the business running us. Just thank you, thank you, thank you, times a thousand. So we really just want to thank you, Clay, and thank you, Vanessa, for everything you’ve done, everything you’ve helped us with. We love you guys. If you decide to not attend the Thrive Time workshop, you’re missing out on a great opportunity. The atmosphere at Clay’s office is very lively. You can feel the energy as soon as you walk through the door. And it really got me and my team very excited. If you decide not to come, you’re missing out on an opportunity to grow your business, bottom line. Love the environment. I love the way that Clay presents and teaches. It’s a way that not only allows me to comprehend what’s going on, but he explains it in a way to where it just makes sense. The SEO optimization, branding, marketing, I’ve learned more in the last two days than I have the entire four years of college. The most valuable thing that I’ve learned, marketing is key, marketing is everything. Making sure that you’re branded accurately and clearly. How to grow our business using Google reviews, and then just how to optimize our name through our website also. Helpful with a lot of marketing, search engine optimization, helping us really rank high in Google. The biggest thing I needed to learn was how to build my foundation, how to systemize everything and optimize everything, build my SEO. How to become more organized, more efficient. How to make sure the business is really there to serve me, as opposed to me constantly being there for the business. New ways of advertising my business, as well as recruiting new employees. Group interviews, number one. Before, we felt like we were held hostage by our employees. Group interviews has completely eliminated that, because you’re able to really find the people that would really be the best fit. Hands-on how to hire people, how to deal with human resources, a lot about marketing and overall just how to structure the business, how it works for me and also then how that can translate into working better for my clients. The most valuable thing I’ve learned here is time management. I like the one hour of doing your business is real critical if I’m going to grow and change. Play really teaches you how to navigate through those things and not only find freedom, but find your purpose in your business and find the purposes for all those other people that directly affect your business as well. Everybody. Everybody. Everybody. Everyone. Everyone needs to attend the conference because you get an opportunity to see that it’s real. Everyone needs to attend the conference because you get an opportunity to see that it’s real. you


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