Tilman Fertitta - Billionaire Houston Rockets Owner & Restaurant Entrepreneur

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What's going on, everyone?

Casey Adams here. Welcome back to the Rise of the Young podcast.

On today's episode, we have the first ever billionaire on the show, Mr. Tillman Ferrari Fertitta. He's an American businessman and television personality. On the show, billion dollar buyer. He's also the chairman, CEO and sole owner of Landry's Inc. One of the largest restaurant corporations in the U.S. also, he happens to own the Houston Rockets, which he bought in 2017 for $2.2 billion.

And I'm excited. I sat down with Tillman.

We talked about his book coming out. We talked about not only how he started at the age of 23 with $6,000 and built that up to a multi billion dollar empire, but we talked about the habits on how he got to where he is and more so how he stayed there. You know, he talks about the foundations and the principles of how he became a multi billionaire. And I'm super excited for this episode. It is by far one of my favorite interviews I've ever done. And I'm excited for you to listen today. So before we get started, make sure you check out his book, Shut up and listen, coming out September 17th. All the information will be down below. Make sure you buy it, pre order it, because it is a bible for business. And that being said, make sure you subscribe, leave a rating and review and let me know what you think about this episode. Literally the first billionaire on the show.

Let's get into it. What's going on, everyone? KXIE Adams here. Welcome back to the Rise of the Young podcast. On today's episode, we have Tilman Fertitta here with us today. And for those who may not know, Tillman is the CEO of Fertitta Entertainment Laundries, Inc. And you must know the owner of the Houston Rockets and much more. So Tillman, first off, I just want to say thank you so much for coming on the show, man.

Hey, we're looking forward to it.

It's kind of fun, for sure, man. So first. First things first. This show is called Rise of the Young. There's a lot of young entrepreneurs and people who are starting between the ages of 18 and 25. And after doing some research on you and watching some of your interviews, one of them with David Meltzer, you always say to young people, you said, God gives us a certain gift, and you have to realize what gift God gave you. I'd love to really start this off to ask you, with all the success you've had, what gift do you believe that God has given you?

You know, honestly, he gave me a business brain where it's just in my DNA that I just understood how to do deals, how to finance deals, learned how to operate, and just kind of what makes me different, which has made our company different is understand development, operations, marketing, sales, the financing, the economic side, everything, which is unusual because I'm not a talented guy.

Yeah, yeah.

You know, I took guitar lessons for four years when I was probably 11, 12, 13, 14, and I still can't play a song, and I can't draw. I'm not an artist, so I can't. I'm not a handyman around the house. If you asked me to go change the oil in my car, I'd have to take lashes. I mean, but he gave me a business brain, and that's what I mean. All of us are given different talents. Find that talent. And it's not always about making money. If you love music and that's what you enjoy every day, as long as you have a cool room and a good, fresh tv, hey, enjoy life.

Yep, absolutely. And one of the things I definitely want to start off with and mention is your new book coming out, Shut up and Listen. I saw the title, and I'm really looking forward to reading it myself. But why did you choose to call your book Shut up and Listen? First of all, I'd love to hear your thoughts on that.

You know, I haven't changed, but every day I get up is successful, as I've been fortunate to be. Every day is a learning process, and I still listen. But I meet so many young entrepreneurs today, and I'll give them advice, and they don't listen.

Okay.

And so it's just kind of fitting the world today if you would just shut up and listen and do these few things. I'm telling you, you really are going to be more successful, because as smart as kids are today, history does repeat itself. And if you kind of follow history, you'll be a lot smarter.

That makes Sense, for sure. And one of the things as well that I know, I've heard you speak on that, I think a lot of young people listening, this is really important. You talk about the 95 and 5% rule and how important it is to focus on the 5% of things that may not be doing good. Can you define more so what that is to you and why it's so important?

It is to me. It's paying attention to the details. And I don't care if you're reading a document or you're walking. Let's just use a business, a restaurant. For instance, if you pull in the parking lot and there's a bunch of cigarette butts or dirty bottles or the pavements all broken up and they haven't put a new blacktop on it, and you walk to the front door and there's some dead plants or the windows are all smudged and you see a couple of burnout lights, well, chances are when you go into that restaurant, if they're not doing that part, they're probably not doing their part in the kitchen. It's not a clean kitchen. If I go to a restaurant and I see a dirty restroom, that means they probably usually have a dirty kitchen because the people who have a dirty kitchen have a dirty restroom.

Got it? No, absolutely. One of the things I do want to, I would say, bring to attention as well. So in 2017, you bought the Houston Rockets for $2.2 billion. And I want to ask you, from a business perspective, after achieving all of this success and all the things you've ever dreamed of, buying a sports franchise and a sports team, what was that experience for you? Because I know they always say that the small 30 group of people that have the opportunity to own an NBA team, what's that been like for you these last two years, being the owner of the Houston Rockets? From a business perspective, but more so as a lifestyle perspective.

No, for sure. You know, first off, and I'm the sole owner, which isn't. There's not many solo owned teams in the league.

Absolutely.

So I feel very fortunate for me and my family. You know, it's. It's the greatest. And this is really going to shock you because you probably look at me and say, well, gosh, he's not that old. I'm one of the 40 longest season ticket holders in the history of the Houston Rockets.

Wow.

And so I've been a fan for years. And to be able to own a team in your hometown is the greatest thing ever. And I grew up watching them Since I was in junior high school. And there's truly nothing any better. Patrick, step in here for a second. My son Patrick, he's a big sports fan, just like me. This is Casey.

What's up, Patrick?

Earlier.

Okay. Tell him what you say every day. You know, you have to. It's the greatest thing ever.

Yeah.

You know, we're all living the dream as a family. I mean, we would talk about it for years. If we had the opportunity to do anything, it would. It would be to own a sports team in the city that we love and the community that we live in. And a sports team is a great thing for a family. You're able to enjoy it together. And, yeah, we wake up every day.

And we're fortunate and we're able to be sad together when we lose. Trust me, it's not all fun. But even to own the team in your Hometown, of the 96 football, basketball, baseball teams, there's a small amount that people get to own that they grew up with. So very fortunate.

And I wanted to bring up to attention as well. So I'm 19 years old, and like I said, there's a lot of young people listening on this show. Just as a question, growing up, did you expect. Was one of your goals to own a sports team, or was it something that came along with the success that you accumulated?

You know, I always had the dream. You know, when I started, just, I've always been a dreamer and always said I'm going to do whatever it takes to get from point A to point B. And when I was in my 20s, I wanted to have a jet by the time I was 35. I got my first jet when I was 35. I won my first Cadillac doing direct sales of Shackley vitamins when I was 21. And so I've always had goals. But it's kind of funny if you would ask me four years ago, gentlemen, you're so successful. You were the second youngest gal in the Texas Business hall of Fame behind Michael Dell. You've taken a company public on the New York Stock Exchange. You've taken your company private. You've hosted presidents in your home. What's the one thing that you're worth? A billion dollars. You're on the Forbes 400. Is there anything in your life that you didn't get to do? I would have said, probably own a professional sports team. That's the one thing that I wanted to accomplish in life that I didn't accomplish.

That's amazing.

So I'm done. But I'm not going Anywhere, Casey.

Absolutely. For sure. And I want to start with this as well. So one of the next things you talk about, the Tilmanisms, one of the things that's in your book, and I picked four that I wanted to run through real quick to get some more insight on, because you have these sort of power statements, and one of them being you say, never become partners with someone who has the same skill set as you. And I'd love to hear from your experience the importance of that. But why you make sure that people understand that.

Well, let's just say that y' all decide to start. It could be lawyers or once again, you know, I'm going to keep it simple just because everybody would understand. If three guys work at a restaurant and all three of them are chefs and they go start a business, is that real smart? Or is it better to get one that understands the financial side, one that understands the back of the house and the kitchen, and one that understands the front of the house? Or if you're three lawyers going into business, you're going to have more diversity, to have more clients. If you're not all litigators or you're not all family law, or you're not all this, okay, so it's going to business with people who have a different skill set. Just like I tell people, you know, I tell people that all the time.

Got it? No, absolutely. And what about the one where talking about lifestyle, you speak on the lifestyle and keeping it simple and never changing, of picking up the trash whenever you see it? And that's something that I truly believe in as well. But you say, never put your lifestyle ahead of the growth of your business. And I'd love to know the importance of that from your journey, because it's something that I know is definitely true, and I'd love to just hear your opinion on that.

Well, you know, I always grew my business, and a lot of people start making a few dollars, and you'll notice this in people, and they start going out and spending the money. And their business that was going like this starts slowing down because. Because their personal lifestyle is taking all the money out of the business. And I always complain around here that I'm poor because I build stuff and make the company bigger. And that's why my company today does over 4 billion in revenue and over 700 million in EBITDA, because I'm always putting stuff back in. Now, do I grab me a few crumbs here and there to live? Okay. Yes. Yeah. But everybody's laughing at me in here. But I've always grown my business. Okay, got it. Always grown my business.

Absolutely. And what about the one, and I think this is really important, you say take no out of your vocabulary. And I'd love for you to give some insight on not only no as a word, but more so the habits that you utilize within that sentence. I'd love to just know that perspective of you.

Well, it's kind of weird because society today is. It's so easy to say no. Like, let me give you an example. You go check in a hotel and it's 11:02 in the morning, and you say, I'd like to order some scrambled eggs. And they tell you, oh, I want to order breakfast. We stopped serving breakfast two minutes ago, sir. But you can order a salad or a hamburger. And you go, Casey says to the room, all I want is a couple of eggs. I know they're in the kitchen. Take them, break them, throw them in the skillet, toss them around for about two minutes, and just send them up to my room. That's just as easy as making a burger or a chicken salad or anything, El. But the word is no. Why not? Please the customer. Okay? Always please the customer. And that's just one example that everybody just says no. Hey, do you have one of these shirts in the back? I need it in a medium. No, we're out of it. I don't think everything that's on is out here on the showroom floor not wanting to go to the back and see if they have it. Okay? Take no out of your vocabulary. You're checking in a hotel. No, sir, there's no in rooms over there. You know, it's just. I believe you always try to please the customer, no matter what business you're in. If you're in my business, if they're in your business, don't use the word no. You don't have to say, yeah, but just find a way to get around it.

Okay? Got it. That makes absolute sense, too. And one of the. I think the top one you said, you say be the bull. And I want to know some more context on that, because I think it's definitely something powerful that I know out of the tillmanisms that we'll get into. In terms of what's in your book, what does be the bull mean to you?

Well, this is. I believe that you have to be opportunistic in business. And how you're opportunistic is at certain times when the economy slowing down or whatever, put yourself in a situation so you have the capital to grow because that's when you're able to really take advantage because you're the bull and you always want to be the bull. So you can eat the weak. Okay. Because I love to eat the week when times are not good. That's when I've grown my company and built all my net worth is in bad times, not in good times. And I see, you know, the economy's been great for 12 years now it's going to take a dip. So I'm getting really hungry because I'm going to be eating a lot of the week out there.

Totally. And I want to kind of bring some context about the young people that are listening. Because I know based on the interviews that I've saw with Meltzer, you started with a $6,000 loan at 23 years old. And I'm 19 right now. A lot of people listening are 17, 18, even 19 my age. And going from that to a multi billion dollar empire that you've built, what would you say to an 18, 19 year old that's just getting started in business? What would be one of the first things you'd want them to know as they start their journey?

Okay, the first thing, and it's really simple. Believe it or not, you can set yourself apart from everybody else. Okay. And I don't care if you're going to work for a company or if you're an entrepreneur. You can outwork everybody and it's so easy. But people don't want to separate themselves. They want to. You can't have a great lifestyle while you're trying to build your company. Okay? Because you've got to do whatever it takes. And if you have to work till 9 o' clock at night to deliver something and you tell somebody, I'm going to deliver it on Wednesday, then make sure you deliver it on Wednesday. It gets back to everything, comes back to hospitality and service, no matter what business you're in. And I just feel like we always outworked everybody here. We outsmarted everybody and we did whatever it takes to get from point A to point B. And if you're at a company, it's the same thing. I'm going to work a little later, I'm going to come in a little earlier. I'm going to take more projects than everybody else. I don't care who you are, you can separate yourself from everybody else.

Got it? Absolutely. And I want to bring out, you said restaurants there because I know you've built a massive restaurant empire and one of my favorites. I want to point out. Definitely. Mastro's the butter cake. One of my favorites. What. What's been one of just when it comes to restaurants and building all of these different companies and organizations, from a culture perspective of just managing and being a part of just multiple organizations, what would you say has allowed you to stay focused and build company culture? Of. I know that you have over 60,000 employees worldwide. How have you been able to maintain an image and a brand and just a company that's based around culture? And how would you restart if you had to all over again?

Well, I can honestly tell you this. If I had to start all over again, I honestly believe that I could get there again. I really do think you could take everybody. Not everybody, because I think some people have gotten lucky with tech because they were working for the right company or whatever, but the people that have built big companies, sticks and bricks or whatever. I think the same people would do it again because I think it's a work ethic, it's being the bull, it's hospitality, and it's all the above. It's whatever industry. I might do it again in a totally different industry, but I just feel like that it's easy to separate yourself from everybody else. You just have to decide you want it more. And it's no different than a great athlete. I decided that I wanted it more. I decided that I wanted to be on the Forbes 400 when it came out the first time. When I think I was in my 20s, did I want to be on that list? Because I can't be an all pro athlete. I'm not going to be a rock star. I'm not going to win any Oscars or Grammys or Emmys. Okay. So how else can I do what God, my God given gifts was business? I can get on the Forbes 400, okay? And that was always my goal. Now I'm number. I think coming out next week, I'm like 130something.

That's amazing. So looking back to, like, when you were in school, like, what was your mindset towards school and your career coming after high school, college? Because I think a lot of people and young people especially, they're. They're in high school, they're about to graduate. They don't know what to do. Do they go to college? Do they start their business? And with the current 2019 economy, what would you say to someone that's indecisive on what they want to do based on how you've seen your career go?

Well, it's. It's a kind of a Different world, even more so today. I don't want to tell. I always think that everybody should get their degree. Okay, I did not finish and get mine. I have three years. I have still 30 hours to go. I was such an entrepreneur, I started making money. Like I said, I won my first Cadillac at 21. Okay, but I just, I knew how to make money. And so I started making too much money while I was a senior in college. And therefore I just, oh, I'll go back and get it next semester. Well, then you're making more money. I'll go back and get it the next semester. I was making more money, you know, when I was 22 years old and that 23 was really at 21, when, when I got that first $6,000 loan. Okay, but, but it's. If you've got to know yourself and it goes back to those God given talents of do I really know what I know how to do? And if I'm a great artist or a great musician or I know how to develop an app, that degree isn't going to do anything for me. But if I want to be a doctor or a lawyer or finance, to be an investment banker, then I need to go get my college degree and maybe go get my master's or my doctorate or whatever. So you have to decide what your God given talent is and let that be your roadmap. But the roadmaps out there for all of us.

Got it. And speaking of roadmaps, I know that obviously with your book coming out, Shut up and listen. That's been the roadmap that you've created. And I want to ask you, when did and why did you decide to write this book? Because I know it's coming out September 17th, very soon as of this podcast dropping. And I'd love to ask you just what was the point of it? Why did you do it? You have so much going on. Why write a book?

You know, that's a great question, Casey. You know, I had the television show Billion Dollar Buyer. I've done a bunch of things and Harper Collins came to me and people have come to me and said, why don't you write a life story? And I said no, because when I write a life story book, I want to do a tell all book and go after a lot of people. I'm still out there doing a lot of deals. So I couldn't do that. But they were very smart. They said, we want you to write a true business book. What were your tools to be successful? And so it kind of fit in that small box that. Well, that makes sense. I don't really have to go after anybody or tell a bunch of stories. I'm going to tell you how I started with one restaurant and I'm worth $5 billion today, and own a professional sports team by myself and own this whole company. This is probably the single largest one shareholder company in the United States. I don't have one partner. So that's it. I mean, that's the magic.

Yeah. And speaking on that real quick, I want to be respectful of time, but just being independent and not having multiple owners, what would you say to somebody? Do you recommend that when starting a business or do you believe in the right partnerships are worthwhile? Because I'd love to just get your perspective on that. As someone that's young, that's listening, that may be thinking, hey, do I be independent or do I find a partner that can help complement my weaknesses?

No, I think that finding the right partner is good. Just make sure they have different skills than you have. But my deal's a fluke. And when people say, oh, my God, I want to be just like you. So I said, and I tell people all the time, don't use me as your model. Just try to be worth 100 million. Don't worry about a billion at the stage. Yeah, the hardest, don't say, I'm going to be a billionaire, because it's the hardest thing to do, is make the first million, then the first 10 million, then the first hundred million. After you get to 100 million, then worry about a billion because then it starts falling into place. If you're still willing to work hard, because I've been worth 100 million now for 25 years, okay. But I decided that wasn't enough for me. And remember, this is sport to me. This is my basketball game every day, this is my football game, is to go out and compete, to do deals, to move up on the Ford 400 list. But I am getting to that point where what in the hell is the Difference if you're 130 or 92 at this point, I'm not going to beat Jeff Bezos at Amazon. It's all right being in the top 200.

I got it. And really last thing, too. Just wrapping up here. Just when you look at everything you've done and accomplished, you know, owning a sports team, people see that and it's like the pinnacle of success, right? You ask yourself, what else can I do to fulfill myself? And you buy a sports team, what's next? Like, looking forward along your journey. What is the next thing that you believe is ultimate fulfillment to you that can overall lead to your legacy and your purpose here?

You know, I think you want to be philanthropic for people, that a lot has been given, a lot is expected, and I believe that. And I tell my kids, you know, a lot of kids that were raised in families and they're the next generation or the next generation, they kind of go into a shell and get lost. And I tell my kids, you can take what I've had and only make it bigger. And that's what y' all should do. And it's a lifestyle to always try to be successful, always try to be a good employer and a good citizen, Be philanthropic, be a good person.

Got it? No, I love it. And I definitely look forward to reading the book and following your journey, and I definitely appreciate your time. I know we have to wrap it up here, but last thing, with social media and the book coming out and all the different interviews that you're doing, where's the best place that people can follow along your journey, learn more about the book, get more access to it, and overall, get more into the mind of Tillman.

You know, I think if you went on social media, if you went on my Instagram and see the different videos and stories and people I've been around over the years or go to my website, I mean, I've been out there a long time and there's a lot of stuff out there on me. But more than anything else, for a young entrepreneur, this is the best thing they can read is right here. And I promise you, anybody that buys this book, please, I want to hear from you. And if you don't think this book is good, I'll buy it back from you.

I love it. I love it. So like you said, everyone listening. Tillman said it himself. Buy the book and get two copies. Give one to your friend. If you do not like it, he'll buy it back from you. That's a promise you made here on the show. But I'm telling you, I just want to say thank you so much for your time. And I truly believe that the people listening, if they truly go back and listen to this again, they'll be able to pick out some gems that you've been able to instill in yourself as well as others along your journey. So I just want to say thank you so much for coming on the podcast today. I definitely look forward to reading the book and having my audience do the same as well.

Hey, Casey, thank you so much. See you soon. I appreciate it.

Thank you so much for listening to today's episode of the Rise of the Young podcast with Tillman Fertitta. Make sure you go get his new book, Shut up and listen. Make sure you subscribe, leave a rating and review screenshot your phone, post it on your story. Tag me.

Tag.

Rise of the Young and I'll talk to you guys soon.

Legacy of Monsters. An Apple original series. The world is on fire. I decided to do something about it on November 17th. This place, it's not ours. Believe me, the most massive event of the year arrives.

If you come with me, you'll know everything.

I promise.

Oh, my God. Go, go, go.

Monarch Legacy of Monsters. Streaming November 17th only on Apple TV.