How David Osborn Built A $100M Net Worth

Today I'm going to share with you a presentation that was given at one of our events about achieving a net worth of $100 million. This is a personal goal of mine, and so it's special to me to share this with you from someone that I know and trust, lives here in Austin, Texas, and has accomplished a very high nine figure net worth by the age of 50. My goal is to accomplish $100 million net worth over the next seven years, which is ambitious, but when you see that other people have done it and they have started from places that are less than what you have, it makes things seem really achievable. Someone sharing with you the exact strategies and the pathway to building an incredibly valuable net worth. All right, so this first part of David Osborne's presentation was such a mind changer for me and so many people who are in the audience where he talks about, you can't work your way and into $100 million net worth. You have to ask a completely different question. And if you can start seeing the world in this way, you will be fabulously wealthy.

Watch this.

There's no amount of hours you can work that will get you to nine figures. You can only scale who. You can't scale what. A multimillionaire comes to you, says, what do I have to do to get to the next level? A billionaire says, who? Who do we got to hire to get to the next level? You can't scale what? So I'm going to talk to you today about how to get to nine figures. I didn't know that was the term of the speech, but it's a good challenge. And I can tell you the first lesson I had going from 8 to 9, going from 10 million net worth to where I'm at today is that it's not about you. The only way you scale large is working through other people, through the who's. So then the question becomes, who do I have to hire right now that would take my business to the next level? So just pause for a second and write in your notes, like, what's a key hire.

You could make right now that would take your business to the next level? Think of it. The title could be a person you already have in mind. It could be a description.

See, it's all about the whole. There's no way you scale without the who. Right? I'm lucky enough to have about 70 businesses that run and generate income, about 150 lines of income on my balance sheet. Every single one of those businesses is run by an amazing who. My number One goal is to be the most insignificant person in my organization, the least talented person in my organization.

For me, it's easy. For you guys, it may be hard. You may have more talent than I have, but my goal is to be the least talented guy in every organization I run and then go find the who's. So I'll give you a silly analogy. I hope one day that I'm gonna meet.

Warren Buffett, because if I ever get, like, five minutes with him, I'll say, warren, I want to offer you a job, and I'm going to pay you $1 billion per year. $1 billion per year. Hopefully he'll say, doing what? He might just say, buzz off, son. But if he says, doing what, I'll say, your number one goal is to make me $2 billion. You're starting right away.

Right? That's how you think. Like, it's the who. So every single person that I meet, I'm always asking myself, how could this person fit in this world that I'm trying to create, this empire that I'm trying to build?

The answer to almost every question is, who? Not what, not even how, it's who. Because when you can partner with somebody, you can create more together. My old business partner and I built a $15 million business that would have never existed had we not worked together. If it wasn't for him, the business would have never happened, because it would have been a crazy idea in my head. If it wasn't for me, it would have been this tiny little business that made a few thousand dollars a month because I'm a big thinker. I'm the visionary. We needed each other. That's the question you need to start asking if you want to be really, really rich. It's not what, not how, but who.

Who.

So what's the first step? What's the first thing you need to do on this journey? Well, according to David, it is about carving your own path. It's about waking up from the Matrix and realize that if you don't have a plan for your life, somebody else is gonna give you theirs, and you're gonna unconsciously follow their plan instead of your plan. Here's what he said about it.

So in one of the movies that I love, that guys my age all love young guys may not know what it is, but there's this movie called the Matrix, right? And in the movie the Matrix, Morpheus is standing there in this ultimate moment in the movie, and he says, what do you want, the red pill or the blue pill? You're going to take the red pill or the blue pill. And all of us think, oh, we're going to take the red pill. We're going to wake up from the Matrix. So my belief is there is a matrix, but I don't know how to wake up from it. All I know how to do is create my own reality within it. So write this down. The implicit system is my friend. The implicit system is my friend. And if you'll give me permission today, I'm just gonna go a little bit deep with you. Right? Cause I don't know any other way to do it. The only way I've done it is the way I'm gonna share it with you. Okay? I do not deserve the success I have. I shouldn't have it. The way I've got here is the following, and I'm gonna list it out for you in kind of a deep manner. So when you take the red pill, what does that mean? Well, in the movie, he wakes up and he's got, like, hoses in his back. Doesn't look very attractive. But the way we all take it is like, yeah, I'm gonna be wide awake, baby. I'm all in for life. Oh, shit.

Just knocked my own tooth out. Yeah, I'm gonna be all in for life. I'm gonna be wide awake. I'm gonna, like, take life as it comes. I'm not gonna be anybody else's vessel. I'm not gonna be anyone else's slave. I'm not gonna be anyone else's servant. I'm not gonna run their agenda. I'm gonna run my agenda. Right? That's what it means. But my understanding of it and my experience of it is we fall back to sleep all the time. We're mostly asleep, right? So the question is, can you choose to be the playwright of your own play? Can you be the architect of your own house? So all I know how to do is wake up long enough to choose my destiny and then fall asleep back into my unconscious. Patterns that get me where I'm going, right? So I'm hiking in Bhutan, and the tour guide says. She says, man, I have this PowerPoint I got from this French marketing company, and they spent $5 million putting it together. And it's amazing, but they made me promise not to give it to anyone. So what do you think? My number? I'm an entrepreneur. What's my number one goal for the rest of the trip? Just to get that PowerPoint presentation. I had to have it. It was the secret. It was the Holy Grail. So I was kind sucked up, gave big tips, everything else, and I got the PowerPoint. So I'm going through it. It's like 50, 70 slides, way too many. But I get to this one slide, and it talks about the implicit system and the explicit system. All right? The explicit system is the part of your system that you think you are. It's the talking voice in your head, the one that gives you advice, the one that's like, what's this guy talking about? Why didn't we have a potty break? I really got to go potty, man. I shouldn't have drunk too much last night. Whatever it is, that's your explicit system. It's constantly chattering. It's the part of you that you actually think you are. And then behind that is the implicit system. And the implicit system is the subconscious mind. It's everything that really flows through your life, really defines you as who you are, how your mom and dad raised you, your family of origin, the country you were born into. All these different things wrap into the implicit system, the subconscious mind, to give it in perspective. This one slide said that the conscious mind works at the speed of a snail compared to the subconscious mind working at the power of a Boeing 777. That's how much processing power your subconscious, your implicit system has versus your explicit system.

A lot of times you can hear somebody share that is all about people, and you're like, yeah, well, great for you. I don't know any of these people. The first way that you start meeting these people is become the type of person that attracts and serves the people that you need. That requires a tremendous amount of self awareness, a tremendous amount of personal responsibility.

And.

And it's work, and it's constant. It's lifelong. This past year, I had to look myself in the mirror and say, I don't deserve $100 million net worth. I don't deserve the type of life that I want. I got to become a different kind of person. And that journey will never end because hopefully you'll be growing until the day you die. So let's talk about how you start becoming that type of person. David laid out some of the personality traits and the habits of the people who become the person capable of. Of bringing in the types of relationships, casting visions, and are worthy of $100 million net worth. How do you become that person? Start with these traits that David shares in this clip.

All right, so how do you be the who that attracts people to you? And I'm going to share it with you. Right here. Like, this is my flight plan. One thing I learned about flying private is you would think they're saying, hey, I'm going to New York, and they would just fly there, but they don't. If you ever ride up front and you listen, they're constantly making micro adjustments. They're going off path, they're going around weather, they're going around other planes, right? Pilots know this, I didn't know this, right. But they have a flight plan. They log and then they moderate and change it the whole way. So this is my flight plan for 2019. So whenever 2019 or 18 or any year rolls out, I'm stoked. I've got it all right here. This is my flight plan for 2019. It's locked and loaded. It's epic. It's amazing. It's my agenda. I can't wait to live it. I can't wait to live this agenda. All right, Last year, every year, I do an epic trip with my family. And the origin of this, by the way, in my 20s, all I did was work. Just to be clear, I think you have to have a work ethic. So when I said, I teased you guys about the number of hours I think you've got to work the 20 years and 10 years, like, I did that in my 20s, I would try to figure it out. Did a lot of stupid stuff, a lot of unnecessary work. But I worked really hard. In a way you just prove to yourself you can. And then in my 30s, I sort of started setting up my businesses, like learning, organizing them, building on what I had figured out, worked and kind of shedding all the chaff, the stuff that doesn't work. And then in my 40s, I'm 51 now. I'm starting to be the oldest guy in the room. It's not any fun. I'd rather be much younger, but I am 51, in my 40s. I took advantage of what I'd learned. I just kind of pounded and compounded my empire, built on it and started making a ton of money. So what I'm sharing with you is like just refined over 20 plus years. When I started, all my goals were business and money. My wife, then my girlfriend said, you know, dating you is like being in the backseat of your car. And I said, that sounds awful. Why would you put up with that? And she said, every now and then, you put me in the front seat, and it's so nice. And so when I married her, I endeavored to put her always in the front seat, which is why my goals Always start with family. I always start with the family. What I realized is in my 20s, I sort of stole the decade of, of my life from the juicy fun stuff. Now I had a blast working. I got significance from working. So I'm not going to say it wasn't fun for me. But I didn't do anything. I just worked 25, you know, 27 to 35 ish. So now I put all the family stuff first. I put all the epic stuff first. And I'm going to come back to this why in a minute. So last year I took my family to see the northern lights. It was epic, it was incredible and I loved it. And that's what I've got locked in for 2019. Like, it's just epic. I got three kids, two of them still at home. And my daughter's goal this year, nine year old, is to see the Grand Canyon. So I haven't figured out yet how, but we're going to do a wicked Grand Canyon trip. I don't know if we'll helicopter, whitewater raft or whatever. I got to figure out all the details. So I always start on this locked in life with the fun stuff, the family stuff, the purposeful stuff, the contribution stuff.

Why?

Let's go back to the why. Who do you need to build your business to the next level? You've got to attract the whole. How do you attract the who? By being somebody that other people look up to. My mentor, billionaire Gary Keller, who I've been around my entire life, taught us life balance from the beginning. Fitness, health, relationships, spirituality, contribution. I can tell you that that's the kind of person I want to be. So I'm attracted to. If I'd been in a company in my twenties that said your goal is to work 100 hours a week until you die. And by the way, if you need to take coke and drink and do whatever to get yourself there, you should do it. I might have done that. I was impressionable, I was ambitious. I was 20 years old. If I'd been on Wall street, maybe that's the life I'd lived. But instead I was with a guy that said you got to have balance. You got to have a way of living your life. So I built this in. This is locked and loaded. That's 2019. But I want to share with you 2018. This is a journal that's almost ending. And I want to share with you that I have my every quarter, I review it. So if I go back to the beginning of 2018. 18, right. That's cool. That's like, that was the backtrack. So there's 2018, first quarter, right? And then if I flip it forward, there's the next quarter. What I want you to see if you can see that maybe I hold it down there is this. This is a dynamic, living, breathing document. This is like my constitution with myself. And when I put on here, work out 240 times, I check off a Roman numeral every time I work out. I know that last year I worked out 216 times. I didn't hit my goal of 240, so I put it on here. I check it all the time, read 30 books, be on 10 podcasts, listen to 40 podcasts, take my family on an epic vacation, have three daddy daughter dates with my nine year old, watch 10 shark tanks with her. So all of this stuff is in here like it's an epic life. But when I started, I didn't follow through. Like when I started in 25 years ago, I just would write stuff down and I'd get 30, 40% of it done. And that was my style, that was my life. But I just rededicated. Rededicated. Rededicated. So I think the number one thing is to be massively, massively purposeful and have goals in all areas of your life.

So how does all of this translate into making a lot of money? Yes, it's about people and people are about who you become, but how does that translate into making a whack ton of money? In this next clip, David shares about how he thinks about money, how he strategizes, and exactly how he goes about achieving his goals that have made him so rich.

So he. You wake up from the Matrix, right? And you're like, I ate the red pill. So now I know this, I gotta choose my life, choose my destiny, and then I'm gonna fall back to sleep. So what is money? Effectively, give me what is money? What is money? What's the economic version of money? What do they say? It is.

A unit of exchange. Great, that's one. What else?

I can't. He said stored value and then this person over here said, really? It's energy, right? I just rushed it along. You see how I did that? So it's energy. Like money is just stored energy, right? So money is energy, you can use it to do stuff. Like I can use money to go back and forth from Breckenridge to meet you guys, provided that storm that's rolling in doesn't shut me out. So I can do that. That's just money. It's just a time machine. It just changes your ability to get stuff done. Right? So if money's energy, how do we earn money? What do we need to earn? Money? Energy, thank you. The same thing. We have to have energy. So if you need energy and you're working 100 hours a week and you're not going to the gym and you're not working out, you're not eating right, you're not looking after your body, what are you doing to your long term income producing possibilities? You're robbing yourself.

If you're married and you're working all the time and you're not looking after that precious relationship, the most important relationship, you have your wife or your husband or whatever. You know, your husband, if you're a guy, whatever it is today, if you're not looking after that relationship, what are you doing? You're Jeff Bezosing yourself. You're gonna lose $75 billion. It's not relevant, right? And then he'll marry someone else and in 10 years he'll be just annoyed at her, right? That's life. You gotta work on that relationship. You gotta work on your health, you gotta work on the relationship. What about if you're a guy that builds a billion dollar business and your kids can't stand you, what good is that? You, you gotta work on all these pieces, right? You gotta put them all in your goals, you gotta focus on them and just make them part of your agenda.

All right?

So energy, Life is energy. So do you work out, you get more energy or less energy?

More.

If you have a beautiful relationship with your wife, do you get more energy? Or husband, you get more or less energy. And if you have great relationship with your kids, you have more or less energy. See, it's all a selfish, selfless, reinforcing relationship way of nurturing your implicit system to give you everything you want. Because the more you get, the more you can get, right? Okay, so let's go back to the how. Because you're like, okay, I get it, you got a great life. That's nice. So let's go back to the how. The how is simple, you know, you gotta manage your energy, right? You know, you gotta be ruthlessly honest with yourself. We talked about that a little bit, like slap yourself in the face. Be real. What's working, what's not? Am I earning the money I need or not? Am I spending the time with my family or not? Am I working out like I need to or not? You get to sit down and just take a journal and just write down all your thoughts, like, where am I? What would improve my life physically? What would improve my life mentally? What would improve my relationship? You just write all that stuff down and that becomes your goals. Got your vision, by the way. I just worked on a vision to get to 250 million in net worth, 25 million income. Why? Because I got to have a vision. I don't need the money. I always said to my wife, I'm working for you, honey. I'm working to put food on the table. She said to me about three years ago, we don't need any more food on the table. So you keep telling yourself that, little man, but that is bullshit. Am I allowed to swear in here? Anyway.

She'S right. It was bullshit. All right, so what do I do? Why do I do it? Because I want to stay engaged. I want to stay in the game. I went on a vacation with my wife and my daughter and my son. We took like a 12 day vacation. It was awesome. But about day seven, you know what happened? I woke up, my wife's like, hey, can you go get me breakfast? I went and got her breakfast. I brought it back. Then my daughter woke up, she's like, hey, dad, can you go get me something to eat? I'm hungry. So I went and got her something to eat. I thought, this is retired life. I just sit around, I'm like, everybody tells me what to do. I don't want that. I want to keep building businesses. So I immediately got motivated, went back to my life and said, how do I get to 250 million in net worth and 25 million a year? Not because the money makes a difference, it doesn't. It makes no difference. But it's the game, it's the engagement. And then I threw in a little twist on my goals. Could I give away $100 million while making it to 250? So that's interesting. So now I've recreated the game and I'm keeping myself engaged while having fitness, health, relationship, nurture, contribution, all of this stuff, right? And I'm adding all of that in. Okay? So now you got your goals and you've got your energy. I cannot overemphasize to you how important energy is. Like, you got to manage your energy. You've got to have a lot of energy. If you're pitching people, you got to have that energy to pitch. If you're leading people, you got to have that energy to lead, right? So you got to nurture that. All right, so how do you then contain it? And you got two Things you got to add to your life to really drive yourself where you want to go. One is your peers. You have to hang out with winners. Winning is contagious. All right, so then it's your peers who you hang out with really, really matters. Why did Ryan and I hit it off? Because we both care a lot about making an impact on the world around us. I know everyone in this room cares about making an impact on the world around you, otherwise, you wouldn't be here. But what I want you to know is the biggest impact you can have on the world around you is by having an impact on yourself. And go back to what I said. This is not. It's not complicated. Is it easy? No. But the way you win is get your unconscious system, get that aircraft carrier, that 777, aligned with your mission and your outcome and where you want to go. That's how you win. It's not the little voices. It's not the talking. It's not the little stuff. You got to align the core of your being in where you want to go. And you do that by writing down the things that inspire you. Every single thing you hear that inspires you, that you think you want to do, you write it down and you make it a goal. And you fill your life with things that inspire you. And you cut out all the chaff. The stuff that doesn't. And the same goes through of running a business. When I started off, I did everything. I was assembling the cubicles, putting together the computers, doing the recruiting, hiring the managers, and I had, like a mini nervous breakdown. Like, one. One day, I just, like, my body broke. I couldn't work any more hours. I couldn't do more stuff, and I broke. And I got shingles from stress. I was, like 31 years old.

In the healing process, I went to a bunch of seminars, read some books, chose my mentors, my coaches. And a guy said to me, look, here's the secret of life. He's the richest guy I know at the time. Yeah, Gary was broke back then, so he said, look, you write down the seven most important things you gotta do every day, and you do the top three. You write down the seven most important things you gotta do each day, and you do the top three. That's it, guy. I think he was a student housing guy. I think his net worth was 50 to 80 million. I'm not sure, but richest guy I knew at the time came back because I'd had this breakdown, like in the past. I did everything equally. Like, I only did Everything that came along in order of arrival. Then I started prioritizing. Boom. Like just doing the most important stuff. Things got so much better, I started having more fun and getting better results.

All right, in this last clip to wrap everything up, David shares his step by step, his thought process of how anyone can go about carving a path to a nine figure net worth. So this is for you. If you're like, just tell me what to do and what my future is going to look like. Here's what David says you need to do in order to have $100 million net worth.

There's no way you can get to be a nine figure investor unless you build businesses. Real estate's a great investment. I love real estate. You can invest in real estate all day long and you can be 10, 15, 20 million a year guy when you're done. But if you want to actually, you know, manifest giant wealth, you have to build a business. You have to roll out a business that has a multiple at exit. Most of you guys probably already know this. So that's the game we're playing to get to nine figures. When you're young, you can take massive amount of risk. And when you don't have kids, you should just be all in all the time. Nothing I like better than seeing a 20 something year old that quit their job to go all in for their business. Because what you're really getting, whether you win or lose, is the knowledge, all right? And then as you get bigger, then you've got to like nurture the dollars. It's all about the dollars. The dollars, you know, have to earn a fair rate of return, right? So you have to take those dollars and invest them wisely. Warren Buffett's rule number one is lose any capital. Rule number two is, see rule number one, okay, that's with your investment dollars, but on the other side, on your aggression dollars. You go all in when you see something that wins. I was sitting with Richard Branson on Necker Island. Not because he's my friend. I'm not name dropping because he's my buddy. I paid 50 grand to go to his island for a week. It was nice. And I was sitting with him and he said, people said to me, I got lucky. He said, I got out of the record business right when it was dying and I got into the airline business. He said, and they're right. I did get lucky. He said, but you've got to put yourself in a position to get lucky. And that's what I would say to you. If you're all Entrepreneurs, you got to get out there and pivot, pivot, pivot until something works and then just go all in for it. And I got lucky early. I got at Keller Williams early. I had no idea who it was. There's less than 1,000 people in the company. Now there's 190,000. I had a mentor that was a billionaire. You know, at that time he was worth negative net worth because he hadn't built, you know, Keller Williams yet, Gary Keller. But today he's arguably a billionaire. And I just went all in. I was 20 something years old. I had nothing to lose. My mom was a realtor at his company. She was a legend, an amazing woman. And I just went all in because I didn't have any other option. And then it struggled, struggled, struggled. Back then, a lot of them were failing. But we started having a breakthrough and I just kept going all in and all in. And so I ended up the largest franchisee more by default than anything else, just because I went all in. But I could see it was working. So I just read Blitzscale. Anyone read Blitzscale? It's a pretty interesting book. And he says what the new companies do is they come in and they pivot, pivot, pivot until they find something that works and then they go all in, right? So pivot, pivot, pivot. When something works, go all in.

You need people, you need the right mindset, you need to become the type of person that is worthy of $100 million net worth. And then you have to have a business that is going to grow and going to scale that you can have a big exit around. That is specifically what we help entrepreneurs do here at capitalism.com, we do it in our events, we do it in our training courses, we do it with our mentorships, we do it with our NFT community. It is all about building businesses and having a multimillion dollar exit. You can come to the next event that we have where we have these types of speakers and these relationships in the same room. If you go to capitalism.com Capcom you can attend the next event and be in the audience where all of these opportunities and all these relationships are being brought to you. My, my name's Ryan Daniel Moran. I'm the founder of capitalism.com I help entrepreneurs have multimillion dollar exits. I hope you enjoyed this video. I hope you hit that subscribe button. I hope you have an awesome kick ass day. Thanks for watching. See you next time. And now a quick word from Jared, one of our members in the 1%.

I was bankrupt and crippled to making a million dollars in a year. And then I grew that business and kept growing it. So like my whole world changed financially very quickly. It was amazing how fast it was able to transition and like turn once things got rolling. Ryan and capitalism.com pretty much taught me everything I knew about E commerce and specifically branding was the biggest thing that I think capitalism really does well and they focus on teaching their students about building, building a brand and just teaching business to people. Like everything he teaches is stuff that he's done. You know, it's not like from theory that you're going to learn. So it's like all stuff that he's done. So I think the biggest thing that capitalism.com helps you with is that you're getting to learn from somebody who's done the exact thing that you want to do, which is the most important thing in the world. Like that's how you fast track your results. So if you want like the fast lane and to get your results really quickly, you go to capitalism.com and you have them show you what to do so you don't make all the mistakes and you get there really quickly. And it was the best money I ever spent because I went from bankrupt and crippled and all this other stuff to a million dollar a year business in one year, which is exactly what he teaches. And I was like, holy crap, this stuff works. So I was a, it was a very healthy exit and was able to let me focus on many other things in my life and not have to worry about that stuff anymore.

If you found value in this podcast and you're ready to go Deeper, here are three resources where we can help you. One, you can grab my book 12 months to 1 million on Audible or Amazon. It has over a thousand reviews and it's the playbook to building a seven figure business. Second, you can join our community of entrepreneurs who are following a plan to build a 1% net worth by building businesses and investing the profits. You can get plugged in@capitalism.com 1. And third, if you're looking to go deeper and build a seven figure business that you can sell, you can work closely with us inside the capitalism incubator and you can get on the waiting list and find out what we do over at capitalism.com Inc. That's capitalism.com Inc.