my manager QUIT (and the bank DENIED me!)

So that's what I'm dealing with. It is not drama and clickbait. This is actually stressful for me right now because we need to move into this building.

Fantastic. Steven said I need to make more establishing shots. So this is what you get today. So you might think I'm joking, but. But in reality, when I'm prepping like this for even a few minutes in the morning, usually I'm using my phone to listen to something. Either a sermon or a video or a podcast or something. And so I am sacrificing by having my video as the camera so that you all can get your entertainment for the day. So I hope that watching me put my gel or whatever this is, what is it called? Fiber in my hair is entertaining enough. Okay, so for the past couple hours I have completely forgot to record. I'll fill you guys in in just a minute. But it's almost 9:30 and that's when we have our franchisees. Mastermind. Mike Minutes. Mastermind. So let me knock that out and I'll fill you in on what all went down. It has to do with the bank and it is not good. And everyone thinks it's clickbait. All these things. It is not clickbait. These things are really happening. And right now this is a big stress for me and I'll explain more why. Just let me get this Mastermind knocked out and we'll connect again.

I'm not paying more for another person because they want a stick $600 incredible plan and then someone else just wants to get by with a $200 plan. That is very generous compared to most because if you're doing 50%, you could probably get away with like $150 as your bonus. The reason, the only reason this is considered a benefit is because it's a non taxable event for the employee and you can still write it off. That's why it's a benefit. And that is how you do Mike Minutes. Mastermind. One of the best decisions I made this past spring for the franchise was to start these Mike Minutes. It has been extremely helpful for me and I think for a lot of the owners, for us all to stay connected every single day and for them to be LS questions directly to myself. Even though they have Lee for Franchise Advisor and Chuck for Franchise Advising, we have a Facebook group, a lot of them have a lot of chats together. It's still good for me to keep direct connection. As I've always said, even as a company grows, if the founder starts to just disappear A lot of stuff can happen bad inside the organization and, you know, murmurings and all the rest of it. So it's really, really been good. And this morning, for example, we got Mike Mint Masterminds. It's a Google Doc, a Google form, and we got 10 different of the owners that submit their questions. And it's a lot of fun. All right, so I want to be really honest about this whole loan process thing. Yes, the $3.3 million loan. Some people are like, you don't need to have the building. Other people are like, you're just making up a bunch of drama. Okay, let me explain what just happened, because the underwriter has now told me why this whole delay has happened. But get into it. But I gotta actually get ready because on the other side of this wall is Anytime Fitness. It's another business that I own. I spend usually about 30 minutes a week over there. But right now, unfortunately, our all star office manager is leaving and going to Michigan. And so I've got to find somebody else. They line up a bunch of interviews. I'm gonna go knock those out, and maybe I'll show you a little bit around the gym. But let me explain a little bit about this whole loan thing, because we finally have a reason for the holdup. All right, I gotta change shirts, though. Okay, so now that we've changed, let's talk about this bank thing. So the underwriters from the sba, here's what's actually happening. Okay, you know what? All good things happen on whiteboard. So what are we gonna do? We're gonna do a whiteboard presentation today. Okay, so this is how. This is the problem right here. You got me, Mike Andes. Below me, I got four different S Corporations. Okay? So these are S Corps. Now, underneath these S Corps, I have LLCs. And this is the way that I kind of protect my real estate and different companies from ever hurting each other. Because if something bad happens over here, I do not want it to affect over here. So I do have different S Corporations. These are holding companies underneath me. And then below these, I have LLCs. Okay, this is kind of how it looks. Now, here's the problem when we look at this loan. Two of the major S Corps I have are the franchise. And then over here, I have what we call Augusta Lawn Care Corporation. Okay? Now, in the past, Augusta Longer Corporation has been very profitable and very consistent in its profitability, because underneath this, I only had one location. Okay, let me. Forgive me. So erase all this. This did not happen until this year. Now, in 2020, 1, because I made a lot of money in terms of capital gains because I made a bunch of money in the stock market and things like that. This, this is what happened. We were like, okay, great, we need to make this company make less money because it's going to get taxed out to wazoo. Last year was our most profitable year. The Augusta Lawn Care Corporation. The local shop did over $300,000 in distributions, almost $350,000 in profits. It was going to be a tax wazoo. So what did we do? We added two LLCs of locations that I started last year out of state and put them as LLCs underneath LLCs, underneath this S Corporation. What that did is absolutely crush the profit margins because they're brand new. So we're ramping them up. Lots of costs and expenses go into it and you lose money. So it caused the profitability to go way lower than what had been in the past. Been a nice, very consistent going like this. All of a sudden that happened. And so big red flag to underwriters. That one I can explain away, right? And unfortunately my tax returns are very, very long and complicated. So I had to like show them the numbers. And this is what I've been doing for the past 24 hours all last night is digging all this stuff up for them and showing because like bankers are not tax accountants and they're definitely not the irs. They do not know how to look into a tax return that's 300 pages long and find this stuff. So I have to break it all down for them. Now. The franchise. The franchise, the franchise. Now the fact that they don't like is growing really quickly, but the profitability has not been achieved yet. They don't like that. They don't like massive growth with unprofitability. So you might be asking, well, how do you have an unprofitable franchise? Like where's the money coming from? Well, in 2021, so this is last year. This is really the tax year that they're looking at. I made a lot of money in capital gains because of the stock market. Now I took all of that capital gains and pumped it back into the businesses, okay, Especially the franchise. And that was just like my own personal money. It's on my, this tax return. My 1040 is where you get all of your gains, your capital gains. So the thing is they don't care about capital gains when it comes to a loan. They only care about the revenues and the profits of the businesses because that's the long term, 10 year term that they're putting on a loan. They don't care that I made a whole bunch of money in the stock market last year because this money flowing from me in the form of capital gains in the stock market into the business is just a balance sheet activity. It doesn't show up on the income statement. And so those are just owner's contributions and coming into the businesses. So it still looks like the businesses are losing money. Now as a whole, I'm just fine. I made a bunch of money in the stock market, put it into my businesses, but doing so allowed us to invest and have a loss on the income statement. And so they do not care about me making money and doing this. They care about the fact that this business lost money and is still growing very quickly. And this business all of a sudden grew a bunch because we added two LLCs and dropped in profit margin because because of doing that. This is what I'm trying to explain right now and this is why it actually is a bad situation. I wrote a long document explaining all of this and then I have dozens of documents in terms of graphs and charts showing all of this and showing that hey, this is a one time expense, like things like that we had to buy infrastructure for the franchise and developing the software and all the stuff we invested into it is one time. I don't need to do that again. This is not going to happen again. This is going to be a consistent profitability going forward as usual. And Even things like P4P, like that's a one time investment that's eventually going to stop and it will become profitable. So that's what I'm dealing with. It is not drama and clickbait. This is actually stressful for me right now because we need to move into this building. We need to for several reasons. The first reason why we have to move in this other building is because it's going to be a much better training experience for our franchisees. This is the biggest reason why I'm doing this is because when they come here for four days, cause we just moved it from three days to four days training. Now when they come here for four days, I don't want it to be in this room. As nice as it is learning on that board, I want it to be where it's like we're learning. And I look out the window and I see, see what we're talking about right now. The reason that guy's running across the lot is because of P4P. Oh yeah. When we were just downstairs there, you saw them answering the phone. At command center like this, the same way that we're talking about. So it's extremely important to me that we get this building. The second reason why we're getting this building is because from a financial perspective, our rent is going to be over $11,000 per month next year, and that's only going to go up in 10 years. My mortgage on this building will still be $14,000. My rent will probably be 25,000. So this is a long term play. I know in the short term it doesn't make sense, but I believe in two to three years I'll look at this and be like, that was a very good move for the brand, for the franchisees and financially. But right now it's extremely difficult because on a $3.3 million building project, if I get an SBA loan, I gotta come up with $330,000. I've already put more than $330,000 into the building project. If I have to do a conventional loan that's 25% down, literally we're talking about 800,000 plus dollars being pumped into just the down payment on the building project. I don't want to put that much cash into a building project that's going to be wrapped up for 10 years. I don't want to do that. And furthermore, because of this situation, and no commercial lender is going to touch this with a conventional loan because this does not look good on paper. So the only way I'm going to be able to get this is by convincing them of where the businesses are going, why what I'm doing, and why 2021 looks the way it does in my tax returns. So there it is, all open for the public to see what's going on and why this is actually pretty stressful for me. So let's go ahead and go to the gym and interview some people about being an office manager.

Now we're talking efficiency at its finest.

So also, I was thinking in like you're saying, to get a cabinet that can lock, we can put the supplements in it, but then we can make it more of like a break.

We'd have to get everything out here though, like all the supplements and all the rest of it. Hey, what's Mike over Anytime Fitness. Blaine, check this out. You might have come here in the past. Come a little closer. Come on in. Check this out. So in the past you might come here. It's eight, nine o' clock at night, no one's in the office. You don't know what to do. I want to have Some of these beautiful, beautiful supplements. And you're like, what do I do? I can't pay anybody. This is the solution right here. You take out your phone, whip it out, open up the camera, you scan this bad boy, and now you can check out even if no one is here. So this is a beautiful thing. Whether you need some weight loss tablets, collagen, a weight loss bottle to get some protein. Protein powder. That's all here now. And you can check out without anyone being here. Staffed in the office. Check it out today. Whip out the camera and get chopping. What time is Laverne coming on Monday?

The water fountain.

Sweet. That'll be good. They're good. They came in yesterday and saved my bacon on one of our rentals. It flooded. The whole thing came up through the toilet, and it's gross. I know. It's just this. Or like, I've been trying to make one operating phone. You think it'd be simple, man. Right. This one's corded, right? Because Ethernet to the modem. And so a lot of those, that. That dock is part of that system in there. But you're right. One of them is wireless. One of them is cordless. Wait, when you say corded, you mean like.

Like, it's like, old fashioned.

Oh, no, that's. That's stupid.

No, that's why I was like, are.

We okay with this? No, no. Back out of that. Yeah, no kidding.

I can't hear you.

Oh, no, your thing came out.

I know. It came out, like.

Oh, right before. The screw's still in there, though.

Yeah, the screw's still in there. I just haven't fixed it since the interview.

Sort of minds the flaw on that chair. Yeah, I know. $154.

Okay. Do you want me to do that one?

Sure. We'll just throw this one in the cabinet.

Okay.

These two will go in the offices, and these will be back in case. Just ringing.

We can put them out there for, like, just never standing.

Put them out in the middle of the club like, hello, this is Anytime Fitness.

In the back room in case.

We'Re working back there.

100%, actually. That's not bad. Yeah. Yeah, let's just do it like it was sprinting everywhere. That's not bad. Yeah.

Do we ever get the assisted pull up?

Yes.

So what he told me is that the assisted pull up is pretty much screwed and we might need to replace the entire thing.

Wait, what's wrong with it getting stuck?

It's, like, sticking. So then it's like.

Is it actually sticking or is it Just.

It actually sounds better.

Right here. See this? That needs to be tightened right here. This is a loose right there. But then even like this garbage. This is what I don't like about Advanced Pro is like when they greased, they knew they to clean up all this gunk. Let it work though. It's so much better though. I didn't like the ridges before.

Yeah.

Like this part.

Yeah.

As long as that can stay on it. Those are beasts to get on. But it's because they can't come. They need to be a piece put on so that our piece to take off.

They don't just slide around.

Okay, cool. Yeah, whatever we need from Advanced Pro in terms of fixing stuff. Let's get them a list together so that the treadmill and then even like consistently I see where they. When they do stuff like the greasing, they don't wipe up the old stuff like that. At the bottom of that they just add more of it. Just add more like clean the stupid stuff up. Alright. So I finished up at Anytime Fitness today. We're actually doing two vlogs instead of the regular one per day. Why? Because it's too stressful trying to get all the footage from the morning edited in the afternoon and then put up the next day. It's too much stress on the editing and the media team. So what are we gonna do? We're going to record two vlogs today and try to get ahead by one day. So there's a little bit of a gap couple days. So now I'm actually going to be headed to the headquarters property and I'm going to mow the entire thing with a massive exmark mower.

So fun fact. And that is because I have two houses. The bad thing about that is I only have one place to do my laundry. So what ends up happening is I forget all of my clothes at one place. So for example, today usually I'd get in my gym clothes, but I don't have any clothes here.