Bill Faeth

Look, folks, thank you so much. All right, I think we better bring the big guy back to the stage. Yes, folks, are you ready for some.

More Bill Faith, the man that needs no introduction.

So get on your feet before you fall asleep for all you hungover people. And let's welcome Bill Faith.

That is my product placement for the day. Chris, make sure you zoom in on my Diet Coke. I've been trying to get a product placement deal with them for about five, five and a half, six years now. And then, Mano. And Mark, I'm going to be charging you for this when we, when we get done, man. How about one more round of applause for the women. On the flip side of what Sarah said and Rachel talked about, I've been the guy out front in my relationship and I understand the frustration sometimes for my spouse, my wife. I try to give as much credit as possible because I'm the one that's on Instagram. I'm the one that's up here. She was here last year. She was very, very nervous, actually. I think I don't know where Kristen Sjogren is, but Kristen and Bria were, like, down in some champagne before they came on last year. It's very nerve wracking. The one thing that my wife and I didn't have together was unity. And we have a tremendous marriage. Just had my 25th wedding anniversary last week. I'm proud to say that I've never slept in a hotel. I've never slept on the couch. We've had fights just like everybody else, but we've figured them out before we go to bed. That's kind of one of the rules that we have. We don't want to go to bed angry with each other. She's my best friend. But what I found out in late 2015 is that we really weren't unified with our goals financially and in life. And if you're an alpha male out there that's married and you're working 15 hour days and seven days a week, we don't really stop a lot of times to understand that we believe we're doing the right thing, to set our people up, our family up for the future. But what happens is we're not aligned. That really our wives want us at home and our kids want us at home. And so I had this combination of events that transpired in my life. Remember what I said yesterday morning when I talked about, I think that we all have three or four opportunities that present themselves in front of us. And the question is, do we jump through that hoop so John Baird and the gentleman that I introduced yesterday taught me how to build a plan, how to build a financial plan, how to correlate that to a life plan. And I wish he was here today because he said something that was very profound to me in our mastermind group. And so we had hired him, we had left eo, took my three guys, the overachievers went into, we started Spark on our own, brought in four other high powered gentlemen. When I say high powered, way more successful than I was at that time. Entrepreneurs. Because we wanted level up. And then we hired John Barrett to come in and be our chairman. And he walked in the very first day and he put all of his binders down, really slammed them down on the table. One of our guys was late. He kicked him out of the meeting. He said, if you're ever fucking late again, you will not be allowed back in Spark. He didn't own it. We owned it. And we were paying him $100,000 to chair us. Why? Because none of us is OCD. Add every acronym you can imagine. Entrepreneurs. We were all married, we were all uber successful, but we had no accountability to anybody. He literally had turned around a company that was losing 160 million, turned it into 285 million dollar profit. He was an angel investor. He's worth well over $100 million today. And he said, I know you guys want to be just like me, don't you? And we're all sitting there nodding our head yes, we want to have your financial success. He said, no, you do not. And then he told us how many times he had been divorced and that his oldest son hasn't spoken to him for six or seven years. And he explained to us how the sacrifice to grow businesses and make more money impacted his personal life. So this session has nothing to do with str, but it has everything to to do with it. In the same sentence, I sit in the camp of Dr. Rachel. I have no desire. We should not be measuring the length of our dicks by how many properties we have in our portfolio. Because those of you that have 100 or have 50 or have 200, you work way more than I do, I promise you. And it's about how much money you're making the least amount of time. That's why I invest into luxury properties. It takes me the same amount of time to manage a $1,500 ADR as it does a $200 ADR. And I have intentionally architected my outcome and I have intentionally built my portfolio to achieve the goals that I have set with my wife. So I'm going to go through some slides. This is going to be a completely different type of a session for you guys. I know we have some spouses that are here. If you do not have your spouse here, told a few of you last night, what I would highly recommend that you do is go through this process, take notes, finish it when we're done, then go home and have your spouse go through this as well. So it's going to take Kris, what, one, two weeks to be able to get all of this processed, to be able to give you the recording. So take pictures of the slides. I'm going to do a little bit of whiteboarding, but I want you to go through this as an individual. When you get home, do not share your results because then I want your spouse to go through the same thing. Then you can come together and share it. Emil and Sarah, you guys know exactly what I'm talking about. The Duffelies know exactly what I'm talking about. Lori knows. We've done this before, twice actually, in my mastermind group. This is what I do in my couples retreats. This is the most powerful thing, in my opinion that has fundamentally changed my life. And it was not a super. Marketing and sales is my superpower. This is something that I had to learn from John Barden and go through it in a process. It took us three months as the males to go through this and then we brought our spouse in to implement. In a six hour meeting. I'm gonna give you guys the CliffsNotes version and as detailed as I can in the next hour, everybody with me on this, how do you. And I want you to think about this. How do I make decisions today if I don't know what my desired outcome is? You can't. You're not making decisions that are gonna benefit you. 10, 15, some of you that are in your 20s, 30 years down the road. And I know when I was in my 20s and 30s, I wasn't thinking about the R word, which is retirement. Now I'm four and a half to five and a half years away. It's way more prominent. I did not think about it until I was 42 years old. I'm 49, I'm going to be 50 in a month. So I've had to retrain my mindset with the help of John Bardon over the last seven years and it's fundamentally changed everything for me. So to accomplish your long term goals, you really have to distill that down to the priorities. Every single Day. Who in here had been to one of my couples retreats before? Raise your hand. I know. I don't know where. There you go. They're up there. What do I do every Friday? You remember date night? It's Faith, Celia. It's Faith. Friday. Every Friday. If you're in my mastermind group, you're in my war room accelerator. One on one coaching, whatever it is. The only time you will never, ever get a hold of me is on Fridays from noon to 4 o'. Clock. And it's not date night, it's audit time. So my wife and I will typically go to. She gets to choose everything we do and for her it's usually going to be either tacos or Italian. A bottle of wine and then I bust out the iPad pro. And we're going over the success and failures of that week, financially, relationship wise, between me and her and also with our kids. Because these are not mutually exclusive, life and business. And a lot of us think and we're trained to compartmentalize them and separate them. They have to live together organically. Everybody follow me so far? Cool. All right, we're going to dive in. I got 51 minutes. This is going to go relatively quick. Your goals must be measurable. So what do you want for retirement? Anybody? Shout it out. Travel the world. Financial freedom. Everybody wants financial freedom. Who can define financial freedom? What does it mean if we don't document it? We really don't know. Because what you want for financial freedom is going to be completely different than you. Retirement is going to be completely different for every single person in this room. So I want you to think about the personal side and then I want you to think about the business side and how they're going to cohabitate and feed. Feed each other. Does that make sense? So on what date are you going to retire? How much debt are you willing to have? How much cash are you going to do? What do you plan to do in retirement? So I have strategically built my STR portfolio to seed my retirement. If you've seen the Montana property that I just purchased a month ago, that is cog number four of five that I have to have for retirement. I've got the beach, I've got the lake, I've got the North Carolina mountains. I've got Montana. I am missing golf. Haven't played golf for six years. Last time my wife played golf was when my 17 year old, before she was born, she was six months pregnant and she won the club championship. Six months pregnant. She hasn't played golf for six months, 17 and a half years. We plan to play golf in retirement. We will buy a house either in Palm Springs, Scottsdale or somewhere probably down in the Naples or Fort Myers area. The question is, is when are we going to buy it? How is it going to work out financially tied into when we will retire? So there's things called triggers or levers that happen to be able to reach retirement. A lot of us don't really focus on these levers. For me and my wife, we are talking about this every single Faith Friday because we have it mapped out. So if I'm going to buy a $300 bottle of wine at a dinner, her and I have a discussion about that. And we want to know where we're tracking in that week and that month to hit our financial goals to make a decision. If we're going to do it. Am I going to buy. Is my next property going to be a $300,000 property? I a million dollar property or a three million dollar property? We have to make that decision and it's got to tie into our plan. If I don't know the outcome, I can't architect from today into the future. Does that make sense to everybody? So let's get started. Take pictures of this. I'll get out of. I will retire by how old will you be? What date? For me, when I started it was May 11th of 2032. I will retire on May 11th. Excuse me, 2036. I will retire on May 11, 2029. I've been able to move that date up significantly because of going through this process. As I told you yesterday, I've hit my financial goals. I still have to sustain them into retirement, but I still have life events that I have to get through to be able to officially retire that impact our life. So I will need how much annual income to retire. Does anybody know that? See some people nodding your head? A lot of people don't know how to forecast that. Well, let's take your lifestyle right now. Let's figure out outside of your investments, just what's your mortgage, car payments, how much do you spend on travel, all those types of things. I look at my wife and I in our plan, we're going to travel a lot. So we have actually created a plan of where we want to go, how we're going to travel. Is it Southwest Airlines, is it first class? Are we willing to stay at a three star resort, a five star resort? Are we going internationally? We're thinking about these things that we haven't done. I've been To Machu Picchu. I've been to the Galapagos when I was in my early 20s playing the South American PGA Tour with golf. My wife has never been there. Those are two things that are on our list in retirement that we'll do. We're going to Italy and doing a three week European vacation next summer with our kids. Very expensive. I have to factor that in to my plan. Now does that make sense? Cool. I'm comfortable with how much debt when I retire? Thirty percent. I can sleep at night. Thirty percent. I don't want to be at 50%. I don't want to be at 70%. I'm kind of comfortable 10, 15 years ago. I'm over here on the left hand side. I got Robert Kiyosaki standing right next to me. I'm leveraging all the debt that I have and I'm reinvesting leverage, reinvest, leverage, reinvest. Now over here on the right hand side, I'm going to be 50 in a month. I'm going to retire in five years. Hey Dave, this is my buddy Dave Ramsey over here. I want to get debt. So I've lived a lot of my life right in the middle between the two. The worst thing from a financial standpoint that you can have, especially when those of you guys have a portfolio, Is to have 30 to like 60, 70% debt on your properties. And a lot of you, that's what I talk about when we're auditing, you know, our existing portfolio and looking at our cash returns on equity. Think about the risk that you have if you, if you all had, if you had six properties and you had 50% debt on all six properties versus cashing out some of those properties and paying off others. You keep your debt stabilized at the same dollar amount. But you have debt free properties and then you have leveraged properties. And if you have the layered system that Jeff has talked about yesterday, you have more protection of your cash and your liquidity that way as well. All strategic components that we want to implement. I will generate my income via. How are you going to generate income in retirement? Most people, the old school American way is Homer Simpson retires from the factory and he has a pension that he's going to collect. My mother, before she passed away was a schoolteacher in California. She got 80, 80 or 82% of her highest three years of income averaged out until she passed away. It was like $4,500 a month. Most of us don't have that today. That stuff's going away. We can't rely on Social Security. So there's also good debt and bad debt. What do you need from an income standpoint? That the income ties directly into how much debt you're going to be comfortable with? Do you need $2000-001000-00500,000? What's that lifestyle going to look like for you? And then the last one, my biggest hurdle to get to retirement is what for almost all of you, it's going to be yourself. And what I mean by that, it's just going to be the mindset. It's going to be the way that you're looking at this. You might sit here and think, bill, you're crazy. You're meeting and going over this stuff every single week. Absolutely, because I've seen the value. Do you remember what I shared with you yesterday? Remember, I'm an open book. I almost went bankrupt in 2010 when this place was flooded. My net worth in 2015 was about 1.2 million. Right now it's about 19. It's because of this, because I knew what I needed to do to be able to set myself up for the future. I had a plan. I had a measurable plan because if I can't measure it on that weekly basis, then I don't know what my progress is. And I defined what financial freedom and retirement means to me. All right, here's the next one. Retirement costs. Where are you at currently? Cash, annual income, stocks, annual expense, debt. Then down below, we have the STR stuff, I think STR or. And if you notice, I've got STR and re. So that's all real estate, essentially multifamily, commercial, midterm, long term, whatever that is. How much equity do you have? Annual cash flow and annual expense. It's pretty simple. I want to keep this very simplistic. Then over here on the right side, what are you comfortable with in retirement? This is why we have to forecast. Now we need to break this down. This is where you have to think and start really doing some planning of what you want your life to look like in retirement and at what age, because a lot of people retire early these days and they don't really have enough financial Runway to make it to 70, 80 years old. You need to factor in inflation that's been kind of crazy in the last two years, you know, post Covid. So you got to really look at your standard cost of living. That's going to be your mortgage, your food, your car payments. You look at your travel. I've never met anybody in having these discussions that didn't want to travel as much as they can in retirement. One thing I'll tell you, do a lot of that shit now. Don't wait till you're 60. Don't wait till you're 70. You don't know if you're. We don't know if we're going to make it that long. You should be living your best life today. It's another reason I don't want 200 Airbnb notifications coming in on a check in today. I'm cool with like 20 life events. My mother came and lived with me and she retired from Southern California to the villages. She came and lived with me and my wife stayed in one of our guest bedrooms. Got to a point to where we couldn't take care of her, had to move her into a assisted care facility. She said, I don't have any money, I can't afford this. I've got to stay with you. We found out later she really just wanted to be with us. She knew she had money. It cost me $8,000 a month roughly. It was like 7,800. But then I had to pay for Ubers and stuff when I couldn't get there to go get her prescriptions and things like that because I was traveling and I was busy and at the time I was not in the financial position that I'm in today. So think about that. That's $96,000 a year to. When I put her in that facility, I was making probably between 400 to $500,000 a year. So think about what's $500,000 post tax. Right? I wasn't doing cost segregations and accelerated depreciation at that point. And then I add on this hundred thousand dollar expense for a life event that I didn't plan for. My father in law is not in the best of health. We know that his wife is not going to be able to take care of him. He has less than a million dollars in old school retirement. So who do you think is going to take care of mother in law? If father in law passes before mother in law does, me and my wife do. So that life event impacts our cash flow that we need. It's also impacting how and where we're investing. Does that make sense to everybody? Where my two daughters go to college impacts what I do with my $2 million house here in Nashville? Am I going to sell it? Do I get to like go on the road like Justin and just, you know, travel and buy a sprinter and live in the van? Or can I live at all my rentals or do I have to have a home base here? And here's why this is really fucking important and why you have to know what you're going to do in retirement. Because if I'm retiring in five years, when should I be buying my home base? Now, today. So that way I, all my renters are going to pay for it and I can be debt free when I go into retirement. Where 99% of people wait to start executing retirement when they're ready to retire. It's too late at that point. So I just closed in Montana a month ago. Where do you think I'm actually looking to buy right now? I've actually been looking for about three or four months. And it's in this area because my daughter wants to go to Belmont University. My oldest daughter, she wants to stay here. She doesn't want to play soccer, she wants to become a surgeon. Where's Rachel? I need you to talk some sense into her for all my doctors out there. And we know she's going to stay here. My youngest daughter, we don't know yet. She wants to become Bria Faith and Kristen Sjogren and become a designer. So she's going to do architectural design someplace. So that means if I'm going to buy a place now, it has to cash flow and it needs to be able to gain equity in case I need to sell. If we're gonna move someplace else. Because one thing we've committed to is we will move with our children wherever they want to go. But I learned from a gentleman that was in my mastermind group that we had John Barden run that you also need a place that your kids want to come back to. We want them to want to come home for Christmas. We want them to bring their families when they get married and they have children. And to us, well, shit, if I only have, I go from a 7000 square foot house to an 1800 or 1500 square foot house, are they going to want to bring their families? What happens when they have kids? So these are things that we're wrestling with and trying to plan now before we get to retirement. Because if I wait till retirement, then I need to utilize that property. And who has to pay for it? I do. So that becomes an expense on my personal P and L. Has any anybody ever heard that term, anybody run personal P&LS? Because we should every single month, just like we should be running P Ls on every one of our properties every month. And that's something that hasn't been Talked about. And even my mastermind people, they hate it, right? They don't like doing. They have to have their benchmarks in by the 10th of every month. I do a property right along with them. You don't. If you have a P and L, that's a profit and loss. If you don't have a P and L in your business, then you really don't know the strength or the health of your business. I had built two $30 million plus companies before I met John Barden. And I didn't look at P&LS. I kind of did remember what Mike McAllowicks was talking about yesterday about looking at your bank account, you know, once a month and do I have money or I don't have money? That was me. Thank God. I had money most of the time. But one time I had to borrow 13,000, somewhere between 13,000 to $14,000 from my and my wife's personal savings. And I didn't tell her. And I had to borrow it to literally deposit on a Wednesday so I could make payroll on a Friday. I knew I had the credit card receipts to be able to pay it back by Monday. She didn't know about that for six years. Six or seven years. Why do you think I didn't tell her? You think I was stealing? Do you think that I was, you know, just trying to hide it from her? I was trying to keep her from worrying, but it wasn't the right thing to do. Once we got aligned, we share everything. Then the next step is if you want to grow and you want to scale, can you get a number two? That guy up there, Chris. Thumbs up or thumbs down, you can turn around and look at Chris. Who has more access in my life to everything, you or my wife? He does. Because she's been able to choose what she wants and what she doesn't want to know. So he has access to everything. That's what's given me scale to be able to achieve this plan. When he came to work for me five and a half years ago, my life was completely different. A VA can't 10 VAs. 20 VA's can't replace him. Today my life is where it is at today because of the plan and because I found the best number two I could ever find. I can't emphasize how important that is. For those of you that want to scale to those 20 units or 50 units or 100 units, the number two is the most important thing. And I'll tell you that. Because that first 30 million dollar company that I built I was the number two. I was a sweat equity in that. There's nothing more important. You got to get your shit right today or there isn't going to be a tomorrow. I love this quote because a lot of us wait, a lot of us procrastinate. We don't start today. The small victory today in my opinion is filling out the rest of these sheets. Here's the plan. I plan on buying my next short term rental when and you can replace short term rental with anything, anything that's going to be income producing. I plan on buying my next short term rental in what market and by what date? That's a goal and that's something that we can measure and we can track. If I say I'm going to buy, I'm going to buy a house in the next year, let's be a little bit more specific than that. That's that 30,000 foot level. Let's put it down. I'm going to buy a house prior to October 31st because I'm a high income earner. I'm going to spend X amount of dollars. So we're getting into the budget part, right? I'm looking to buy X amount of price and I'm looking at the delta of land value and dwelling value because I also need that cost segregation benefit. You follow me? Let's be very specific and intentional when we're going through this process. My budget for this purchase will be write down the dollar amount. I will need X amount of dollars for the down payment, furnishings and design and I'm going to add on to that a little bit. So now I have traveled twice post close to Montana. I live in Nashville. What happens when you're a remote host nationally like I am now? I'm flying United. I can't even get there on my beloved Southwest Airlines cheap, right? Literally my ticket cost to get down to Gulf shores averages about $145 round trip. I flew first class the first time that I went there and it was 1300 bucks in the dead of winter. Now coach is 13 to $1400. That has to be factored in rental cars, food, the 17 trips to home Depot every single day because I forgot screws or I have the wrong, you know, hex, you know, whatever. I don't even know what to call that stuff because my wife does all the work. I currently have X amount of dollars allocated for the purchase. Is it enough? Has anybody here honestly ever come in under budget ever, ever? Bullshit. Bullshit. Stand up. She's fucking lying. No, I'm Just kidding. It's really hard. 99% of the time we're coming in over budget. So that's where I believe in the 20% delta. When you are saving to make a purchase, you should overestimate your expenses in everything by 10% and you should save an additional 10% before you're ready to pull the trigger that gives you the 20% Delta. Are you ready to buy? What's your credit score? Do you know what your DTI is? Where's Brian? Where's Parker? Where's all my lenders out here? How important is it to know this stuff? This goes back. Does everybody know your dti? Raise your hand if you know your debt to income ratio, like legit to the exact percentage. Very few of you less than 10%. How many of you know your credit score? Everybody needs to know your credit score. You should look at you all. But you should open up your bank accounts every morning and then you should go to. John uses credit Sesame. I use credit Karma. How many of you, when you are building out a property, you're going through that design and furnishing side. That's usually when we spend the most amount of money on credit cards. Right? Right. For the majority of us. And you could go and you could spend 10,000 or 15,000 or 20,000. Do you wait for your statement at the end of the month to pay it off? Most of you do. John, who's in construction, who can spend 200 grand in a week? I just literally. I took a screenshot yesterday and sent it to Sjogren and I said, hey, here's a $70,000 charge I had to put on my personal Amex because we don't have a credit card for this conference. And I've got to reimburse myself because our debit card at our bank only allowed 1500 bucks. Why wild horse isn't going to run that 80,000 times. What happens if Experian or whatever TransUnion pulls my credit and Amex shows a $70,000 charge today? If they just happen to pull today, I'm going to go from like 788 down to about 560. I pay my credit cards off between three to five times a week to keep my credit score up. Specifically when I'm in buying mode. Right. I just bought my Montana property through Brian Buchholz at Huntington Financial. Actually the best lending experience I've ever had in my life. Shout out to Brian if he's in here. I'm paying my credit card off every single day and I'm Way over qualified to buy that house. But I'm still obsessed with my credit. I know John is too. You pay yours off daily, sometimes when you have twice a day, even when you have bigger projects. So if I literally could show you my amex right now, which some of you here in front will be able to see this. I don't know if it. So can you guys see that negative $70,000 because I saw that impending and I don't want it to be on there ever. So literally I paid it off and I have negative $70,000. This will probably clear tomorrow, so I will look forward and look. Oh God. Oh, shit. I didn't know this. There's another one for 103,000 for the event. This ain't fucking cheap. So I paid 70 yesterday. Now I got $103,000 pending. Kris, what the fuck are we doing? Those recordings, we're not giving them to you for free. We need all of you to buy them. Just kidding. So now I'm going to have to make another payment today for $103,000 because that could drop me down legitimately from like close to 800 into the 500. So managing the credit on a daily basis for somebody like me is absolutely critical, especially when I'm in buying modes that make sense to everybody. Awesome. We talked about the cash I need to improve manage my credit score in the next X amount of months and years. So somebody came up to me on day number one and said they like improve their credit score like 150 or 200 points from the last time that I saw them. Don't remember who that was, but kudos to you. We all need to stay above 725. That should be the ultimate goal, right? That's in my opinion, if you're hovering in the high six hundreds or whatever you need to. And like one thing that John, John and I discuss this like almost weekly, right, about managing our buying power, managing that stuff. So one thing that a lot of us don't do is we don't open up new credit cards. Go open up a new credit card. Get another, add another 25,000 or $10,000 in available credit. You'll get a very small ding. You might lose three, four or five points for like a month, but then boom, you're going to have more available credit. Keep your percentage of credit card debt under 3%. That's why I try to keep mine down to zero. I only have about 100, just under under $100,000, like $89,000 of available credit on Credit cards because I only use three cards, right. I could easily get it up to 150, 160, but I'd have to have multiple cards for that. They don't count the unlimited on the Amex Platinum, unfortunately. So pay that off. Keep it under 3%. My biggest hurdle to overcome is this is the most important thing to document on this sheet. What is the biggest hurdle for you specifically from a financial standpoint? Just going to give you a second to write it down. If you can't identify this, I would have an open conversation with somebody here at lunch or come and see me and let's figure that out because we, to be able to make progress, we have to identify this and what happens. We as human beings, we turn ant hills into mountains. And I promise you there's going to be a way to get, get around or to jump over that anthill. Goal setting. You remember yesterday when I talked about what's the one small thing that you're going to accomplish yesterday? Anytime you start something new that's important to you, you should go through this cycle. Anybody in here know who Russell Brunson is? Yeah, Russell lives by this and he actually does a one day, a seven day, a 30 day and a 90 day. I've been fortunate to spend a lot of personal time with him and learn a lot. And he's built over a hundred million dollar company. I don't know who keeps. Hey Jeff, how are you doing today? I'm just on stage in front of a thousand people. Yeah, this is my contractor from Gulf Shores. Anybody need a contractor in Gulf Shores? Jeff Davis Construction, everybody. Can you mind if I call you back in maybe about 30 minutes? How's the cabanas going at my house by the way? Are they all done? Awesome. Well, send me some pictures. I'll talk to you a little bit later. Have a great day, buddy. Bye bye. That's my contractor in Gulf Shores. Only reason I answered that call, not to be disrespectful. It's kind of what we talked about. Continuing to try to level up and stay ahead of the competition. That property, I told you, if you remember here last year and I showed you that beach house, Emil knows it for sure. Some of you have stayed in it. The $357,000 last year, I'm down like 30,000 just in January and February. He's putting in $12,000 worth of like Las Vegas style Miami beach cabanas on the back of my pool that I planned for when I actually built the house and installed the pool. So I poured the concrete in advance. I didn't go to the expenditure during COVID because I didn't need to. It's the same house I wanted to add the pickleball court to, and I wanted to do both, but I couldn't get my insurance company to cover the pickleball court. So what I did is I identified something that nobody else has. And the Duffelys know you have one on the street behind me. If you look down between West Lagoon and West beach and you can see all these houses and almost a ton of them, probably what, 80% have pools, but nobody has shade. Nobody does. So I'm making a $12,000 investment to create two 12 by 12 cabanas. Literally really nice cedar wood around it, drapes, misters power to it. All this type of stuff that's gonna give me a huge edge in marketing for people that are coming down there. Does that make sense to everybody? I will get a return probably in the first year on that. That's the only way I can see that I can make up that delta of what I've lost in the worst January and February since I've been invested down there. Sorry to get off topic, but I wanted to kind of reiterate that that was part of my goals. When Bria and I were planning as we were learning how to ski in North Carolina between Christmas and January for 2023, we knew what was coming. We were living it already. You know, down at the beach. Our mountain properties were crushing it. Everything was great. Now the mountain properties are not crushing it. And meaning the ones like on Beach Mountain, if anybody's in western North Carolina, Banner Elk still crushing. And that's a whole nother example of when Kenny and why I use STR Insights because a lot of people think that like that whole Boone Beech Mountain, you know, Banner Elk markets, all one market. It is not. There's like seven markets there, just like we talked about. Fort Morgan, Gulf Shores, Orange Beach. That's three markets. And there's a huge difference between east beach and West Beach. Inside of Gulf Shores. These are things that we have to know. So back to the cabanas. We planned this in December, took a little bit longer to get the materials that we needed to implement. And now we're a little bit late to get this implemented. We had a 30 day plan to get this done by the end of January. So we're literally like 60 days behind. So that gets moved down into that 90 day plan as I miss that 30 days. Cause that. That make sense to everybody. So what are you going to do today? I asked you to write down one thing that you were going to accomplish yesterday. Hopefully you did accomplish that. What's the one thing today then? I want you to roll and expand on that into the 30 days. Then that should roll and expand into the 60. And that should roll and expand into the 90. You see the sequence that we're building here? Then that should roll and expand into your annual plan. And then what happens with the annual plan? The annual rolls and expands into the three, four, five year plan. Now we're able to distill that outcome down to the daily decisions that we're looking at today. What are you doing today? I don't see very many people writing. I'm watching you. What are you doing, Jose? What are you doing today? Putting you on the spot because I love you. You're going to create a plan for VAs? How many are you planning to hire? One. Okay, so are you gonna like join OnlineJobs? PH today? Are you gonna join Michael Sjogren's VA program? So he's creating a plan to hire VAs and he just said that he's going to join Michael Sjogren's VA program. Where's Michael? Is Michael in here? Because, Mike, I need fucking commission. I don't know how much you charge for that, but Jose Cornejo, I need that affiliate commission, you know, coming in. So that's one win. You have to do that today, right? You know how much it costs? You do? So you're all good with that. So at lunch, Jose is going to walk up there and sign up, right? And you're going to show me the receipt when you get done. You got to talk to me first. Okay? So he's going to talk to me first, then he's going to sign up. Now we've got a hurdle in there. You see what he just did? He was committed. Now he's put a block or a hurdle in between that. What do we need to discuss we can talk about in front of everybody. Okay, that's a great plan. Jose says we need to figure out a way that we can bring Michael's mastermind and my mastermind together. And you know what? I think that's a great idea. We'll figure. I'll talk to Michael. We'll figure out something about that. So please write down the one day goal. This is about stacking people. Anybody in here been an athlete? What's the most important thing when you're an athlete? To get better. Repetition, repetition. You know, you're a soccer guy. We have any other soccer people in here? What's it about? It's about reps. It's about touches. Especially with kids. That's all they talk about is touches. And what did you say your son, Jose's son here plays on a national level? My oldest daughter plays on a regional level. My oldest daughter, no question, would be on a national level. But she does not get touches because all she does is read and study in her bedroom. And I struggle mentally with my wife. How do I pull my daughter out and say go get touches, go practice when she's like a 4.5 GPA and 33 ACT? I can't. But if you don't get the touches, if you don't get the reps in, you're not going to build muscle memory. If you don't build muscle memory, you're going to. Then you have to think about it. If you have to think about it, then we put hurdles in place. Does that make sense to everybody? So this is the most, this is way more important, the one day goal. You have to accomplish that today. If you don't accomplish that today, it's going to be five times harder to accomplish the 30 day goal. If you don't accomplish the 30 day goals, you're fucked for the 60 or 90 day goals. Does that make sense to everybody? Can I get an amen on a Wednesday? Awesome. When you get home, go through this with your spouse. We talked about that a few minutes ago. This is kind of taking your personal goals, aligning it with your spouse, but really this is about for unified success. We now involve our children in this. Not to the level that me and my wife go through this every single Friday. And you know why we do that every single Friday? Because we are auditing and holding ourselves accountable for those seven day goals. It's funny because one of the things that I think is the most powerful thing is to have accountability groups. And it's the biggest struggle for people to commit to because they're afraid to really hold other people accountable. My wife has no problem holding me accountable. I have no problem holding her accountable. And folks, if you've never heard me talk about this before, that's much more than just finances. This has to do with mine and her relationship. Not only from us as spouses, from an intimacy standpoint, to sex standpoint, to literally how we interact in front of our children. Because our children, especially with two young, impressionable daughters, are learning most importantly from me and how I engage with my wife and what their belief is going to be when they grow up. It's the same thing with our guests, in my opinion. I've got a guest right now that right before I came on that started staying at a beachfront property in Gulf Shores. And they didn't complain, but they sent me a message, hey, there's a 20 foot tall bulldozer on the beach pushing water and sand up. We can't access the beach. And they told us that we have to go like three blocks down to the left to get the beach. And we just rented your beachfront property. The only reason we rented it is you were beachfront. Now I have, you know, what I wanna say is, you know, I can't fucking control what happens on the beach. You know, they weren't there yesterday. They were down, you know, 200 yards. That's my initial thought process. What can I do about that? Nothing. Would I be a good host if I replied to the guests that way? So what I go back and I think about is how would I react if that was my 17 year old daughter sending that message? Honey, I am so sorry. I know you went down there and you just wanted to be on the beach. Let me do this for you. So it's the same thing with our relationship with our spouse. I was in the absolute heaviest industry for six and a half years. And it's not the restaurant industry. I took one restaurant in Southern California and turned it into six and 18 months and that was a pain. But I was in the limousine space, the great ground transportation space. And I had three gentlemen that were sitting up here in the front yo yesterday that flew in from all over the country just to come and see Mike Michalowicz. Because I preach profit first to them. I still have a mastermind. I still do all the stuff in that ground transportation space. But literally that's kind of what happened going into 2015. My wife came to me and said, you know, hey, Gentry is going to be nine years old and we haven't taken a vacation in five and a half years. I didn't notice I was home, but I was still working seven days a week. I've got literally the Kardashians in New York, I've got Zach Brown Band in la. I've got, you know, frickin Microsoft, you know, doing stuff in Seattle at 24 hours a day. When you're in this global ground transportation space, it never stopped. My wife said, I know you're home, but you're not here. I'm working. It doesn't count when we're sitting on the couch and we're looking at messages. Because you have 127 properties and replying to guests, it doesn't count when you're not present. What I have seen not only in myself, but the students that I've worked with, the friends that I've gone through this process with, that when you can get into this unification with yourself on what you really want out of life and then share that with your spouse, that's when everything changes. That's why I travel as much as I travel today. That's why I have intentionally architected my portfolio. Because if I go back a few slides where I look at what is my str real estate or my retirement going to income be I'm essentially retired today. My portfolio has one more property to fill out. I don't want to make any more money. You know why I don't want to make any more money? Because I don't want to have to put in any more time. I don't want to have to hire 10 VAs to do my stuff. Unlike you, I'm literally managing my owner as my Airbnb right now with pier, I do 95% of it. I want to spend more time with my daughters. I'm financially free today. I wasn't in 2015. You guys can accomplish the exact same thing, but it is very, very hard to do by yourself. I'm a pretty strong willed, a pretty intelligent individual, but I could not do it by myself. It's one of the reasons why I've created the cheat code. To be able to find the best properties in the country, to be able to generate the most revenue and spend the least amount of time managing and hosting. That's my super team. That's who I rely on today. It's made my life five times easier. Who's your super team? If you don't have one, talk to the super team. I mean, I look at John right here. Come up here real quick. John, can you give me a handheld mic, please? Because this is something that's super important from the investment side that I want you guys to truly understand. Can you grab me a handheld mic? The guy's not there, so. John, come over here. John. Yeah, grab. He's got one for you. Is it working?

Yeah, it's on.

So we didn't get enough time in the super team deal that we did yesterday. Right. But I look at John, John's uber successful as a host, a developer, construction company, all those things. He's the one driving the Lambo around Nashville. You see that Red Lambo around. Heartbreaker. You should have brought the yellow one that says broke. Is it broke? Broke, Broke on the light. He's got a complex, as you can see. But if you really paid attention yesterday, the first thing that John and I worked on together was a vacation, right?

Yep, yep.

28 days.

28 days.

The next thing that we worked on was the pfs.

That's right.

And there hasn't been a lot of discussion about personal financial statements. Who has a personal financial statement ready to go right now?

Completely filled out.

Completely filled out. Updated, like up to date today. Look around, keep your hands up. Very few, like 30 out of 450 down here, that's less than 10%. You need to have that ready to go. I want you to. You went through it super fast yesterday. What did they need today from a banking statement? Then? Go to Parker, go to Easy street, go to Brian, go to anybody when we break for lunch and ask them, do I need this stuff like ready to go today? Because before he tells you, I want you to understand this. I say this a lot and I really want to reiterate this. You are on audition. The second that you pick up the phone and talk to a banker or that you walk in, you better have your shit ready to go on Google Drive, Dropbox, whatever. Or walk into that bank with a flash drive and ready to hand it to them right then and there. Because people get different rates because they are evaluating what with us, the relationship there and the risk. So if you walk in unprepared, they are looking you up and down and you will be a higher risk than if you walk in like John and I.

If you have at this point, three years of tax returns gotta be ready and it's gotta be accessible, not anything of, well, I've gotta go contact my so and so and then they gotta dig it up in files and everything ready to go. Tax returns, you've gotta have your credit score understood of where you stand. That's gonna be very influential on your rate. You're gonna have to have a Performa. Who here is doing a Performa? You have to know these numbers, have to understand those.

And we would recommend three Performas. Yep. Good, better. Best quantify it with comps. Quantify it with Air DNA or STR insights. Don't just walk in there and say, here's my Performa, air DNA. 90th percentile says 100 G's and. And I'm going to do 125. That doesn't work. Show two or three comps. And show them three Performas, bank statements.

What's your liquidity look like? Banks are wanting to see cash right now. That's what they're going to be giving that confidence that you're going to be able to perform. And to do this, I would also be ready with historicals. What have you done in the past? Are you ready to go? We don't need a story to go along with the performa. There's just a story about. This is the historicals of what I've done. This is what I've accomplished here.

Awesome. That's phase one. Phase one, right. What goes into phase two?

You're going to be looking at.

This is phase two is the beginning. For those of you that are looking at multifamily, any type of boutique, hotel, multiple units, you're going to be looking.

At business tax returns. You're going to be looking at P and L statements on current business. You're going to need to get it prepared for balance sheets. They're going to be taking a much harder look into yourself on a global scale larger than what your current business is.

Awesome, thank you. If you want to learn more about that, go see John up at the super team booth at lunch.

Thank you.

I appreciate it. One of the things, one of the things that is super important is for us to understand when we are going in and how many of you are. Before I go down this path, how many of you are looking to acquire in the next 12 to 24 months another property? Like, look, everybody wants to expand, everybody wants to scale, right? So that's like step number one is the plan here and what is that next piece? How does that fit into the puzzle of your overall plan that you have for that this outcome that you're going to architect? Step number two is being financially ready and what we call being bankable, right? So phase one is very basic. As he said, the personal financial statement, three years tax returns. You need to have the contract for the property that you're going to be under the contract. You need to have good, better, best performas. And I'm not talking these shit free performers that you Google and you just find available, you know, in the images and that type of stuff. You better be able to show noi, as Mike talked about, you better be able to show, you know, your dscr, your debt coverage ratio on there. And you've got to show that for at least three comparable properties, in my opinion. Now when you put that package together and you walk in and you plop that down on somebody's Desk. What do they think? Wow, Bill's got his shit together. Oh, by the way, you own this and you're doing that. So then you look at your entire portfolio. If your portfolio shows up on your credit report or it goes on your tax return, then you need to have that ready to show to the bank as well. That's kind of getting into step number level two. Level two, John, they're also looking for cash flow. You know, statements, they're looking for bank statements, they're looking for cash flow. This is not just in your portfolio. This is going to be, if you're an Entrepreneur Without a W2, this is going to be in your prime businesses. So what happens if you just came up, what happens if you had a really bad 2020, a good 21 and an even better 22? Has anybody filed 22 yet? Like one person's filed 22, so a couple of you have filed 22. If you haven't filed 22 and you're in buying mode now, then you're going to need an audited P and l from your CPA. And if you made a lot of money in 2022 on your rental portfolio and that goes into your 2023 filing for 2022, most of them aren't going to look at it for at least the next year until you filed your second tax return. Correct. So we need to plan for those things. As all of you that raised your hands are looking for scale. Does that make sense? That's why the plan becomes critical from the outcome all the way down to what we're doing today with that one goal. So in your seven day plan, if you were not, if you don't have level one, if you don't have three years tax return saved in Drive, Dropbox, whatever you get, Microsoft users save your stuff into, what is it, OneDrive or something like that, three years tax returns, update your personal financial statement. I would also make sure that if you are ready with a template to be able to build out that good, better, best with your comps, that's the bare minimum that you need to have ready to go. Then you can plop in the contract, then you can do your research on the comps, then you're ready to go. And the last thing I want to share with you when you're going through the acquisition process and just so everybody's clear, like when you come to me, yes, I use STR Insights. Yes, Kenny's in my mastermind. Yes, I do a podcast with him. No, I'm not an investor. I use it because I'm a national investor and that is the number one tool to be able to identify market submarkets and properties. But I also use Air DNA, Rabu and Mashvisor to compile that data and get multiple eyes from a data resource When I'm actually diving in at the property level. Does that make sense to everybody? Yeah. Awesome. What are you doing today? That's what I'm going to end with. Just that one day goal and then the seven day. If you don't have that level one done, I would add that to your seven day. If you don't know how to put that stuff together. Please go see my super team up on the third floor right now as we get ready to break for lunch because we're going to show you how to do that. And there is superteam.com if you guys are strsuperteam.com if you guys are looking to scale, I'm going to ask you one question. You want to do it alone or do you want to do it with the super team? Go to that website or come up and talk to us? Because that's how I'm going to share my team with you. Thank you, everybody. Have a wonderful day. Thank you for being here. I will be up on the third floor to answer any questions you guys have. Thank you.

I don't think that applause was enough.

Yeah, give him a big round of applause, guys.

There we go.

You are awesome. And where's Mr. Hodge? I saw him up here, but is he still around?

Who?

Mr. Hodge.

John Hodge.

Hodgie, stand up.

John, where you at?

We.

Oh, he's. Oh, okay. Well, we love John. Just pass that message on. But folks, amazing. Thank you, Bill.