CW 620 – Mike Fernandez – Humbled by the Journey- Life Lessons for My Family and Yours

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Welcome to the Creating Wealth Show. This is your host, Jason Hartman with episode number 620. Episode 620 and you know what that means. It is a tenth episode today where we go off topic and discuss something of general life, success, interest. And I think you'll find the guest today to be very inspiring and it will make you appreciate living in a capitalist country. I know that our listeners from around the world in 164 countries, most of them live in, you know, pretty capitalistic oriented countries and have big opportunities for social and economic mobility. And I think this story will inspire you quite a bit. I am quite literally standing on a beautiful golf course at the Wynn and Encore Hotel and Resort here in Las Vegas. I am at one of my Mastermind Group meetings today and just stepped out for a few moments to record this intro for you to say hello. So of things. Before we get to our guest number one, I got an exciting announcement. We've got a new Venture alliance member and that is Mike. Mike, welcome to the Venture alliance and we're glad to have you. A couple of our Venture alliance members have already done deals with you where they should be getting some nice returns. And that's what the Venture alliance is all about. It's about doing deals together. And my goal is to make everybody's Venture alliance membership free, if not a lot more profitable than free. Hopefully you can pay for your Venture alliance membership many times over with the contacts you make and the deals you have access to. And along those lines, I want to congratulate Jeff and Shannon. Some of our newest Venture alliance members just joined several months ago right after attending our trip to Newport, Rhode island and Providence, Rhode island. And I think you went to Martha's Vineyard as well. Right. I can't remember now. Anyway, I'm sure you're listening to this. They just did a deal to acquire a property and should hopefully, you know, if everything goes as planned, make about three or four times their membership fee back. I'm hoping so. We will see how it goes. And that is the idea of the Venture alliance, for it to be better than free, hopefully very, very profitable. Additionally, before we get to our guest, I wanted to mention we've some fantastic content that we covered at the Meet the Masters event last weekend and we're going to be sharing some of that with you listeners. Of course, you got to attend to get it all, but we will share a couple of highlights with you. And for everybody that came out, thank you so much. It is really, I have to tell you, it is very, very heartwarming when at the beginning of the event on Saturday morning when I was talking about the dogs that don't bark and how that applied to investing and politics and taxation and monetary and fiscal policy in so many areas of our lives, I asked the crowd who has attended one of our events before and you know, probably 80% of the hands in the room went up. So I just love it that so many people find our events and our content and our podcast so valuable that they keep coming back year after year. So thank you for that. It's very inspiring and really motivates me and motivates the rest of our team to keep doing what we're doing and helping people invest and making it as easy as possible for you to be independent of the vast Wall street conspiracy, the modern version of organized crime. So let's get to our guest today without much further ado. If you want to join us in Dubai, the Venture alliance is going to Dubai next month. Check out venturealliancemastermind.com and also the Meet the Masters online course, audio and video format@hartmaneducation.com and of course for properties and a bunch of other great, great content. Jasonhartman.com let's hear a very inspiring 10th episode story before this next plane goes overhead and it's too noisy. So let's get to our guests. It's my pleasure to welcome Mike Fernandez to the show. He has an amazing story. He is founder of MBF Healthcare Partners and Simply Healthcare Plans. He's author of Humbled by the Journey, Life Lessons for My Family and yours. Mike, welcome. How are you?

Jason, thank you for having me on the show. Thank you so much.

Well, it's good to have you and give our listeners a sense of geography. Where are you located today?

Well, I am sitting in sunny South Florida. It's beautiful, blue skies. There's one or two white puffy clouds over the bay. And it is terrible out here. The weather's got to be 74, 75. Would hate to see the Northeast right around that.

That's for sure. Well, Mike, your story is really amazing. I mean, you immigrated to the US from Cuba back in 1964. You were 12 years old and became a billionaire in the private equity and healthcare businesses. Congratulations. That's an incredible story. It really is. Tell us a little bit about it.

Well, it's been a great life. I grew up in a small town in Cuba, the easternmost province of the island, very far away from the capital. I was, I, my family, my mother, my dad, my sister and I were literally thrown out of the country on Christmas Eve 1964. Had no idea where we were going to land. My father did not have his wallet, not a penny, not even a peso in his pocket. When the plane landed that we were on, we were in Mexico City. We stayed in Mexico until we received a US visa and in May of 1965, we arrived in Miami, where we were rapidly relocated by the Catholic church to New York, where I spent my early years grammar school, finishing grammar school, middle school and high school. Then I went to college for literally one semester before I was drafted into the Army. I spent three years in the US army, and when I left the army, I moved to Miami, became a door to door salesman, had to help feed the family, and was lucky enough to be able to tap on certain talents that God gave me and my natural gift that my parents gave me to think of others and give back. So over that time have been blessed with the ability to create a number of companies and thousands of jobs and opportunities for people just like me as well as people just like you, Jason.

So when you left Cuba, or I should say when you were kicked out of Cuba, it was just five years after Castro took over in 1959, they kicked you out. I mean, what happened? How did that happen? Many people try to escape. But that's fortunate. You got kicked out, right?

Well, it is, but it's also very sad. My dad was a very small businessman. In 1960, 61, the Cuban government began to confiscate all private property, including homes and businesses. My father owned a sandwich shop. That sandwich shop was no more than 10ft by 6ft. So he was not a tycoon, he was not a leader of industry. He was a small little guy trying to make a living selling sandwiches, but he was very independent. So when they confiscated his business and told him he was now he would now be working for the government, he refused. And at that point I was asked, which at the time I thought it was really cool. I was asked to stay away from school. So I could not attend school for two years. My sister was also not allowed to go to school, and we had to give up our home and move in with family until in 64, they escorted us out of the country. We read and hear and watch movies. At times, Cubans leaving the island by raft or by legal means. But then there's many of us who have been asked to leave because it was a way for the government kind of lower the heat and the pressure cooker. Anyone who could potentially be of trouble or could oppose them. In those early years, it was best for the government if they used to leave the country. And if you were not going to leave, they were going to take you out.

Wow, Amazing. That's just incredible. Okay, so I just got to ask you, since it's a current event now, what are your thoughts on. I mean, I visited Cuba about, I don't know, maybe 10 years ago. I was there. I went legally. We got special permission as part of Young Entrepreneurs Organization and chartered our own jet from Miami and flew to Cuba. It was fascinating to me to go there. And most Americans, you know, they've always had to go there illegally flying from Mexico or Canada or something or some other way. But what are your thoughts, thoughts on the current state? You know, I want to hear the rest of your story. But, you know, with Obama easing, easing relations with Cuba and so forth, are you for or against that? Because interestingly, Marco Rubio, he was against it, which kind of surprised me.

I am somewhat disappointed. I've been a fan of Marco Rubio and he is a personal friend. But the reality is that I am pragmatic. I used to be a hardliner when I was younger. As I got older, I realized that the embargo was in fact, not helping anyone but the Cuban government, because it became an excuse for the Cuban government for anything that could go wrong on the island. It was the fault of the US embargo. The reality is that we lost 58,000Americans in Vietnam. I was serving in the army at the time. We had diplomatic relationships with Vietnam within 15 years of leaving Vietnam. And today we do business with them and have been doing this for now for another 25 years. Cuba as much of a tyrant, the Brothers are in running that system. The reality is that the worst thing that we can do is keep a little information on the island. I think we have to change our focus away from hurting the government towards helping the people. And that includes exchange of information. And I think that book has already been written. The history of Cuba and the failure of their system has been written. We as Cuban Americans in the US need to turn the page and move on.

Right, right. You know, I'm not for much that Obama does, but I am for opening up Cuba. I think the embargo hasn't worked. And you know, I think the way we'll win them over is just by showing them, you know, the great life in America and, and the greatness of capitalism and free markets and free people. And I think that will ultimately just put pressure on that, you know, regime for it to, to, to melt away. So, you know, I hope it happens that way at least. But. Interesting.

Well, I will tell you that I haven't agreed with President Obama on any issue except for this one.

Yeah, okay. Okay. We're like in that respect. So tell us more about your journey. So you, you came to the US in, in 1965 and you were I guess 14 or 13 or 14 by then. What did you go to college in, in the U.S. or did you, did you bypass college and just start, you know, working for someone and buy business? Or what happened?

I had one semester of college and I received my graph quotas and then I went into the army and by the time I got out, I have no one to blame but myself. I had no discipline to stay in school, but I also had the need to help my family. So I went to work and I went to work as a door to door salesman for an insurance company. And that led to the building of an insurance brokerage firm that by age 27 I was able to sell for three and a half times the commission strain, which was about a million dollars a year. So I thought I would retire at age 27 and had substantial amount of capital in the bank, certainly more than I ever thought I was going to have. Within two weeks I was back at work and it became a way of maybe validating my life that I can do something that is productive. My children, of which I have five of them, kidney that I have major add. And that's why I go from starting one company to another. And we have been blessed to have been able to live the American dream and at the same time been able to give hundreds of millions of dollars back to our nation and Those in need mostly for children's costs on education and healthcare.

That's fantastic. What a fantastic story. I'm not sure I'm clear though. What happened after the Army. So you, you said you were three years in the army, right?

I spent three years in the army.

And then that I'm looking for that first step into business and, and kind of like how that evolved because I think that's just a critical piece for people who want to achieve success and you know, learn, learn from your success. So, so what happened after the army exactly?

Well, after the army, not having many marketable talents, I became a door to door salesman for an insurance company. And I learned how to accept rejection. I learned how to accept failure, but not be defined by failure. So my first week I knocked on over 500 doors. I had just moved to Miami, I mean no one in this city. And I had nothing to show for it. And I could have quit. I was down and I was depressed and I thought, my gosh, I cannot do this. And then I began to focus on the fact that being a salesman is not a bad job. A, you're unemployed every day when you get up. But also you can work as little or as hard as you want to do and your income potential is unlimited, as much as you want to make. So I was able to create a series of businesses from that experience. So I started as an insurance salesman, built that company, sold it, the insurance brokerage operation. In 1981, started a software company. Imagine 1981 is when IBM PC first came out. And I was way ahead of my time and almost failed. Actually I failed, but I never filed for bankruptcy. I did have to sell my house, my car, my boat. I moved in with my parents, with my wife and two children because I would not file for bankruptcy because that's not what my dad told me I should do. Today I still do business with the same vendors as I did back in 1981. The same printers, the same bankers as I did back then. That company ultimately succeeded and I sold it. Then I started another company that I sold to a health care conglomerate, UnitedHealthcare. Then I began starting other companies, leading healthcare. And today we have owned companies that are every everywhere from the vitamin manufacturing business to infusion distribution companies that this one's based in Boston and they service nationwide as well as insurance companies. And one of my greatest joy has been starting a company with Magic Johnson that focuses on providing health care to people with hiv, aids. And that has been a wonderful success.

Yeah, that's what I was looking For.

For.

Is that initial story of the learning how to handle rejection, knocking on doors. That is awesome. I mean, what an awesome story. You know, what do you say to people who, you know, there's. There's. I mean, I don't know. I. I suppose this has happened throughout history, but, Mike, there are so many people seemingly nowadays that are. That bash America and find everything wrong with it. And certainly there are many things wrong with it. I mean, let's not, you know, let's not be Pollyanna about it, but, you know, is there really any other place in the world that offers such upward mobility potential to those who want to work, who are willing to take risk, who are willing to take rejection? You talked about how you learned to handle rejection. I mean, that's just amazing. Your story is incredible.

There is another place in the world. I have traveled, as many of us and your listeners have throughout the world, and there is not a country that will give us an equal opportunity to try. This country gives everyone an equal opportunity to try. It doesn't guarantee success, but allows you to get up every time that you fall down. I was recognized a couple of years ago, and they went through a list of the 20 or so companies that I have sold, and I felt somewhat of a fraud, and I went on stage to receive the award. And while they were talking about me, I began to write everything down that I failed that. So I got up to the podium and I said, let me tell you what real life is all about. Real life is failing in a marriage because you work too hard. Real life is having the bank knock on your door because you're behind on your payroll. Real life is what makes you who you are today and is what defines your backbone. So people look at you and they say, my gosh, everything he does, he does well. Absolutely not. I have failed at least five times. Everything for everyone that I've succeeded. And you have to move on. This is the greatest country on earth. I was talking to someone a couple of weeks ago, and they asked me, have you ever felt discriminated against because you have an accent, because you're tan, because you don't have blonde hair and blue eyes? And I said, look, I felt it at times, but I was not about to let them define me. So therefore, I had two choices. I could feel smashed and inferior by the fact that I was being talked down to, or I could feel challenged. And I chose to feel challenged, and I was going to prove them wrong, and I did. I have never been held down. Don't allow anyone to Define me. And I said, when it comes to failure, it is a necessary companion on the road to success. And that's it there, unless you fail.

I love that everything you said is fantastic. Don't let other people define you. And when they try to view that as a challenge rather than something to complain about or gripe about or use as an excuse, which so many people, you know, why do people do that, do you think? You know, there seems to be like this. This class warfare going on in the political arena and this entitlement attitude that is just growing and pervading our society. And I think it's very dangerous. You know, what words would you have for people who view things that way? You chose to view it in a positive way as a challenge and obviously turned it into success.

Jason was. When you come from a country where you lost it all, when you are 9 years old and you've seen a man executed by a firing squad. My sister was seven at the time. When you come to a place that allows your father to get a job as a sort of cook, and within two to three years, he owns a home because he worked two jobs and sometimes three, this is the best country in the world. The best way that I can define those people that use it as an excuse, because I don't have a better word for it. It's your choice. It's a matter of choice. You cannot let them hold you down. Only you can hold yourself down. And you have to look beyond that criticism. There are times in which I've been treated that way, but it never slowed me down. And it's a question of defining yourself. It's not allowing someone else to do it for you. And there are no excuses in life. Said to my father, who left everything behind in order to give my sister and I democracy and freedom of speech, that I could not do it because somebody told me that I couldn't do it bad. I just could not live up to that. We live in a great land, and there are challenges, and challenges are good. It kind of weeds out the strong from the weak. But this is a country that allows everyone the opportunity. I don't have a college degree. I am not the smartest around in my companies. I just happen to work harder than most of my competitors, and that's why I've excelled at something.

What is your super formula? I believe that's what you call it, your super formula, you know, to create this big success in your companies.

Well, you know, it's. It's a personal. From my experience, when I in My life, I've learned a few things. Number one is ask is for sacrifice. And sacrifice, if it's not, if it doesn't hurt, it's not worth doing. So if you want to get ahead, you got to sacrifice. I've been criticized by some of my children when they were growing up, you never go to a basketball game in school. I had to work in order for them to have a roof over their house, over their head. And so you got to sacrifice. Sometimes it's painful. As I said before my marriage, I had to sacrifice that because you just could not bear the weight of the amount of work that I was doing to get my family ahead in life. You in superb urgency, a sense of urgency. I actually learned that in the army when I jumped out of an airplane and the parachute only partially opened. I had to open the reserve chute. I opened about 300ft above the ground. And it took me about three or four years to realize that was one of the greatest blessings I've ever received because it told me that I wasn't going to be around forever, that life is a landmine and all it takes is one step for it to blow up. So I never had a three year business plan. A always had a seven day plan. And I felt that if I focused on the micro short term results, the macro longer term results were a lot easier to achieve. The team super foster passion, you know, love what you do and execution. E it's the details that matter. It's the execution of the smallest details and our results. You put the small super with the R. First few words, few letters will lead you to the results that you need. And you have to be willing to pay the price. It is not easy, but it is worth it. And whether you succeed financially or you succeed emotionally, it's a fantastic trip because it allows you also to give back so much to other people.

It sure does. It sure does. So what kind of deals are you looking at? Deals in Cuba? I mean, when Cuba opens up, will there be, I mean, you know, we don't know if it'll completely open up, but you know, are you looking at and thinking about real estate deals in Cuba, opening businesses in Cuba? I mean, how do you think that this might all play out?

You know, I, I all of the business that I've done, my children are all born in this country, have been raised in this country most of my life. So I have no intention of doing business in Cuba. I personally think that if there's a change in Cuba, the best place to invest in real Estate, maybe Miami. Because I think you'll have the Cubans from Cuba coming here and the Cubans from here going there.

Right, right. Okay, good point. So the Miami real estate market will be more impacted than the Cuban real estate market is what you're saying.

I think long term you have both, but then you have a culture that needs to be changing Cuba. You have a system that has punished people for thinking out of the box. You have a system that when you're born, you're given a birth certificate and a rationing card for the next five years. That rationing card defines what you will be as a child. People in Cuba need to think, need to open up, and I think they will. So the challenge is you're looking at a country, and you've been there, Jason. You're looking at a country that the infrastructure hasn't changed in almost 60 years. Imagine a house that hasn't been in 60 years or cars that haven't been around since 1960. There's a lot of years, 10, 15 years before Cuba would be a good place for investments, I think.

Yeah, well, very interesting. I'm glad you pointed that out so people don't become over excited about it. Yeah, yeah, Good, good stuff. Well, please give out your websites and tell the listeners where they can learn more about your amazing story and buy the book.

Well, the it's Humble by the Journey is our Facebook page. So if you look at Facebook, Humbled by the Journey and my name is Mike Fernandez and I am a blessed son of this great adoptive nation of ours.

Fantastic. Well, Mike Hernandez, thank you so much for sharing your fantastic story and I wish you continued success.

Jason, thank you very much for having me on the show.

I've never really thought of Jason as subversive, but I think just found out that's what Wall street considers him to be.

Really? Now how is that possible at all?

Simple. Wall street believes that real estate investors are dangerous to their schemes because the dirty truth about income property is that it actually works in real life.

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Stocks and other non direct traded assets are a losing game for most people. The typical scenario is you make a little, you lose a little and spin your wheels for decades.

That's because the corporate crooks running the stock and bond investing game will always see to it that they win. This means unless you're one of them, you will not win.

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Want to be able to sit back and collect checks every month just like a banker, Jason's Creating Wealth Encyclopedia series is for you. This show is produced by the Hartman Media Company. All rights reserved. For distribution or publication rights and media interviews, please visit www.hartmanmedia.com or email mediaartmanmedia.com Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate or business professional for individualized advice. Opinions of guests are their own and the host is acting on behalf of Platinum Properties Investor Network, Inc. Exclusively.