How to Achieve Infinite Time & Money Freedom | Capability Amplifier EP#113

I mean, as a lot of people know, dentistry and a lot of medical professions have a high suicide rate. There's a lot of stress. Even though we're helping people, they're seen as professions that tend to make more money. They tend to be in the top 5% of income.

Let's talk a little bit about your direct deposits that we're looking at the screen right now.

So that's what's allowed me to go play tennis with billionaires on islands and get paid along the way. I thought, what would my life be like if I had what used to be millions of dollars? Now they pay $5,000 a week for the rest of your life and you can give that to somebody else that you love after you pass away and they can have $5,000 a week for the rest of their life.

Alright, this is Mike Koenigs and this is another episode of Capability Amplifier. I am here today with America's number one freedom coach, the cash flow king, Mr. Eric Francom. And Francom, by the way, means freedom. Very cool.

It does. Hello, it's good to meet you.

All right, so here's what we're going to do today, Eric, I'm first going to just introduce you do it right, which is I think the best way to begin this is what does infinite freedom mean to you? And for most business owners, it means selling your business and having enough capital to invest and generate long term passive income and to have total financial and time freedom. I know that's a big part of what motivates me and it also motivates really every business owner. I know. If you're part of strategic coach, you know that that's what everything's about. It's about freedom, time, money, purpose and relationship. So today my guest is going to talk about infinite freedom. Now, he has been called America's number one freedom coach and he has a very, very unique investing strategy that recently quadrupled his net worth by four times in just two years. And that's what he's going to share with us today. And more importantly, he's going to describe how he is able to set himself up for an exit without golden handcuffs from his last business. And as I mentioned in the very beginning, his name is Eric Francom, which literally means free man. So what I'd like to do today is just introduce my friend, Mr. Eric Francom. How you doing, man?

I'm great. How are you, Mike?

This is good. I've been really, really looking forward to this interview. I know you have two.

Me too.

All right, good So I think the best way to get rolling is. Oh, I know one other thing. We put together some great goodies to give away, which are your infinite time freedoms, the infinite financial freedoms. We also have a bonus video too. But beyond that, let's just talk about freedom and what that means. So maybe to get things rolling, you know, how do you get started? What does freedom mean to you? And we'll just dive into this before we get into the big meaty content.

Let's do it.

All right.

So I started off as a dentist in my career, and I have had anything but freedom. I graduated with a whole lot of debt, and then I took on a lot more business debt. And it really felt like there was a lot of pressure on me. I felt like I didn't have the freedom to massage the relationships with people in my life, including my wife and then my children. And it got so bad that at the Christmas break, I had two days to fly out to go see my kids and my wife at their, at her parents house for Christmas. And I had to fly back home the week in between to take care of the office and then fly back just to spend the two days of New Year's. And that's about the biggest vacation that I had for the year. Right, right. So anything but freedom.

Yeah, yeah. And that's. And a lot of people might be looking at going, oh, yeah, you know, that sounds like a really tough life. But the, the truth of the matter is this is the typical grind that many founders find themselves in and they'll grind out for like 30 years. No vacations, very frustrated, resentful spouses. They've taken on all the debt, carrying around student debt, and the pressures just eventually get to them. And I know you had shared something with me earlier when we were getting prepared about waking up every day. What were you doing every day when you were waking up?

When I first got that business, trying to have the make everything go the way I wanted it to, I was throwing up in the morning because I was so stressed out. I was so nervous. I felt like I wanted to get a whole career's worth of debt eroded in a short amount of time, which just isn't possible. And so I doubled down. I put more and more hours in, which added more stress, which made me less of myself and more cranky around my wife. And it was harming our relationship. And again, I knew there had to be a better way. They say that entrepreneurs are the ones that will speak, that will work a hundred hours a week so they don't have to work 40. But there is a better way. And I wanted the work to be more purposeful, the work that I wanted to do. So I was at a dental conference, and Tony Robbins happened to be there, and he was speaking about how he doesn't have to work. And I was listening, and he said, I work harder than I ever did when I did have to work, but it's for a higher purpose. And he's able to work on helping people. He's able to feed literally millions of people. And I thought, there's a lot more for me than just what that. What I'm doing. And so that's where the progression from not being free to infinite freedom began.

Yeah. And I think maybe to put a pin in this to, you know, if you fast forward to now, I remember the way we met is I got a text from a client, Tom Burns, who had met you where and what had happened? What was the setup?

Oh, it was such a great opportunity to go to Necker island, which is Richard Branson's private island where he lives. And I got an invite through an investor friend of mine that he said, you know, we have a spot open. We're going in 10 days. I'm sure you wouldn't be able to do it. And I said, you know, I have white space in my life. I'm able to work from wherever and create what I'm doing from wherever. And I was actually able to go on such short notice, I was able to, you know, put up the money, because, as you can imagine, a room in a island like that isn't very cheap, but it was very rewarding. And I was able to be around a lot of other successful entrepreneurs that had attained some level of freedom in their lives and spend time with billionaires and in the hot tub and to play tennis and just go kiteboarding and just live the adventure of my life that I'd wanted, while also attaining even more freedom and having investments that were making money while I was on that trip.

Right, right. And I think that's one of the reasons why I wanted to have you on today is I think your story is both very common and typical of just about every founder that's out there. And you escaped. And before we get into the escape, there's a couple things that I wanted to do. One of them is I want to go through, because I always like to begin everything with as much proof as possible. You've got some proof stories, some examples. We're going to deconstruct a couple of the deals you get into or you've gotten yourself into, which are representative. The kind of deals that you're working with and getting people into now. And then we'll go through a few of your freedom, we'll call them. You know, it's really your. Your time freedoms and your money freedoms, your financial freedoms. But before we do that, I think there's also some stats that are super relevant. One of them is an ADA stat that you shared with me, and the other one is suicide rates. And these are specifically for dentists. But I think anyone in the professional industries, and for that matter, many if not most entrepreneurs face this as well. So enlighten us with those.

Yeah. So, I mean, as a lot of people know, dentistry and a lot of medical professions have a high suicide rate. There's a lot of stress. Even though we're helping people, they're seen as professions that tend to make more money. They tend to be in the top 5% of income. And that's not what brings freedom and happiness. And the statistic by the American Dental association says that only 4% of dentists can retire at the age of 65 years old and have the same lifestyle that they did while they were working. And you shouldn't have to be in the top 4% just to live a normal life in retirement.

Yeah.

And so I've created infinite freedom to be able to guide people to that freedom much earlier, like in their 30s, like I did. Yeah.

And I think one of the things that we also grabbed for this, and we'll put them on, if you're watching the video, are two really important graphs. One of them is the US Money supply, which I've been spending a lot of time lately researching and looking at Fiat. Obviously, I'm very interested in investing. That's part of what brought us here, is we're both invested in some of the same deals. And so, number one, the U.S. money supply between 1959 and 2018. Well, more specifically, let's just cut to the chase. 80% of U.S. money supply right now has been created over the past couple of years. It's basically during the lockdown. And then the second graph that's worth looking at is US Dollar purch, which is just all about inflation. And the bottom line is, what I wanted to illustrate here is even if you're a good saver, even if you're a good investor, if you invest in traditional retail instruments or.

Traditional equities, there's almost no way statistically you can stay ahead of the inflationary curve. And this is why we often Hear that the quality of life for our children is going to be lower than ours. We kind of peaked in. And you know this. I don't think it's, it's possible for the average person, even an extraordinary person, to really change a government. I'm not a big fan of government as any anyone who knows me knows. But you've broken the mold. And I want to begin with the proof picture before we get into the how you got there. And then we're going to get into the how you got there got there, which is, you know, packaging and selling your business and some of the big rules and lessons. So let's talk a little bit about your direct deposits that we're looking at the screen. Right?

So that's what's allowed me to go play tennis with billionaires on islands and get paid along the way to go be able to coach and help and teach other people. This is the deposit of an actual investment. And on the right you can see where some had just been circled. There are several different investments. This is just three of about 20 investments that I have.

And these are monthly deposits. So this is monthly cash flow that you see on a regular basis, $20,833. Another one is $8333. And this came from selling your business, investing and quadrupling your net worth in two years. And that's what you've been doing ever since. So anything else that you want to add about that that's important?

Absolutely. Well, the important thing is I was working so hard grinding it out as a dentist with multiple practices and I now actually make more money today through the passive investments, through allowing my money to go to work like soldiers for me. They're going out to do the work and I'm guiding them, I'm vetting to make sure they're in the right. But this is very possible for other people as well. One thing that I had to circle down there is the bottom. I have about the same size of investment for that 12,000 recurring investment is the 61 cents. And that's the difference of a checking account and a cash flowing investment.

Oh, that's, that is an awesome, awesome thing. So I didn't realize that that's your interest earned FDIC $0.61 versus 12,000 plus the other one. So that, that is, that's a great contrast. I did not realize that until just. Okay, so let's talk a little bit. And again, I structured this for this express purpose because part of what's made you so successful is you're out of the box thinking about investing. And that's one of the reasons why, you know, you're. We call you the cash flow king, but also a freedom coach. America's number one freedom coach. And just deconstruct. I asked for four deals. So we'll build these, but I want you to go through them. I know you cannot say specifically what most of the investments are because you've either got NDAs or they're limited in terms of the partners. And that's part of what people pay you for is access to deals like this. But let's break down four, and then we'll get down into the rule set.

Let's do it. All right, well, this is how. This first one is a great example of cash flow. But not only do I have the cash flow, but equity in a company. So with $100,000 investment, that turns into monthly payments of $2,083, and that will take place for five years. And I also get equity of the company. In this particular instance, I got the same amount of equity as I lent them the $100,000.

Okay, so that basically this is a modified debt deal. Plus, would it be called a convertible debt deal or is it. It's really better than convertible debt because you get paid and you have guaranteed equity.

Yes, absolutely. And like you said, it is a little better than convertible because I'm getting my money back. It doesn't just convert into the equity, but I get the equity in addition to the original principal that I loaned them.

Yeah, plus you get your principal back on top of that, which is extraordinary. And can you at least tell us just a little tiny bit about what approximately what kind of deal.

This was?

So this is an example of an e commerce company who is adding a software platform that's built to complete compete with Shopify. And it's a very big lucrative market that is really desirable for investors. And because the growth is so substantial and so $100,000 investment here can lead to a cash flow of $2,083 a month. Plus after about three to five years, this can increase. We showed two to five times, but it could be 10 times, 20 times. This could be a home run ball. And then we get our original money back plus the interest earned on it and playing with the house's money for that large equity play.

That's awesome. And I know who's behind this. And what's great about it is this is not only a well vetted deal. I know the founders, you know the founders, and they have a big foothold in the world of E commerce already, they've got a huge audience, a huge platform. So this is just as much as much a platform. Invest, investment. I love it. It's. It's really good. And I regret because I got. I had this put in front of me, and I didn't pull the trigger when I had a ch. Because I didn't understand it at the time. I didn't get enough data. I didn't do my research. I wish I would have had you summarizing it for me at the time. All right, you ready to do another one?

You bet.

Okay, what do we. What's our next one here? Freedom. Infinite freedom. Formula number two.

This is how I can tell you to get a way to get free cryptocurrency while getting paid to do it.

Okay.

So for a conglomerate that does E commerce and has different existing companies that are creating their own token, they.

Needed the money to be able to have the token into a vault. And that vault can come out as a reparative algorithm to use big words, to prevent the price of the token from dipping.

So basically it was a combination of staking and creating a liquidity pool at the same time.

Exactly.

All right.

Exactly. And so to make sure that they have reserves and the. That investors don't get scared and just dump it, then to have an agreement with them that I won't sell my tokens for a year. They will give me the original principal back with interest, and within one year, I get my original interest back, and I have the token that was sold for about half of the price that they listed it to the public, and that grows. And after one year, I can sell that token or trade it however I want to. So unlimited potential on a strong crypto plate that I literally got paid to do.

Okay, good. So I'm going to just repeat what I heard there. You put 100 grand in. You're getting 16% interest. No, it's better than that, actually. It's closer to 20%, right? Yes, 20%. That's what the 16. $1,666 per month is, plus you got $100,000 worth of tokens at today's valuation.

In one year, you get your $100,000 back in addition to the interest you're paid. Your 20% plus, is that an additional $100,000 in crypto in addition to the original.

So it's 200,000 in market value of the day that I bought it. And plus, however much it's grown and staked, the staking on it is even higher than 20%. Yeah.

And because you and all the other investors have been securing the liquidity pool. And I happen to know, for the record, one of the insider reasons why this is such a good deal is because this crypto is backing up an extremely, well own brand that's been around for, I'll say, decades. Okay. So there's, it's one of those super smart things. And usually.

You know, doing, you know, getting involved in a.

Cryptocurrency can be extremely risky. But part of the way you de risk it is the interest payments plus, you know, getting your principal back. So this is as close to a sure thing as I've seen in a long time.

It really is. Especially when it comes to crypto. You get in and back out with your money, move on and play with the houses. Crypto.

I love it. I love it. Okay, so let's look at Infinite Freedom formula number three.

All right, number three. So this is a particular investment that has some advantages where they had some government bonds to attract the hard technology that they're building and whatnot. And so they were giving, they were given a building to be able to use and they charged rent to all of their clients. So they have free money that they're making from that and they're able to use their clients fees to cover all of their expense. So they have about four years of cash on hand to be able to. Okay. Formula 3 is a company that I invested in that has some unique advantages. They have expertise to be able to build hard tech companies. They also were given a grant to use a large naval yard by the city and state of New York to be able to build and bring and attract tech to New York. And so they are able to rent that out and make money from rent as well as membership fees for the companies that they're helping to build. Then they take a piece of that company as it grows, and as those companies become public, then these guys, for using their information and their knowledge, their expertise, are able to get a large part of that exit. So with their projections, this is more conservative projections, $100,000 investment into that company would have about a 29 times return. So $100,000 investment within about three years could turn into $2.9 million.

I love that. And, and just to get into a little more detail, because again, we talked about this one a little bit, part of the attraction here is the deal is de risk because there's government money providing a grant and they are getting fees from the startups, which in most cases came from Investors so they've got a guaranteed cash flow. They're really not taking any risk at all times two and they're getting a piece. So then it's a multiples deal. But they're super careful about who gets into this place in the first place. That's the other way they're de risking is the level of vetting they're doing. Is there anything else that I missed?

That's it. Now they're replicating themselves, but they're letting other people take risk with the real estate and they're coming in in more of a franchise model so that if something did go bad, they can unplug and go home with no loss. They have enough money on hand to run their company for three or four years. So they really don't need investors. The only people that can invest at this time is I have access to a deal where some of the founders are selling some of their shares so they can turn it into cash flow that they haven't had to this point.

Got it. And then how about there are some cool tax advantages also. So talk about what the tax advantages are. And is this one of the deals where you can write off your investment year one as well or is it a later stage thing? Because I know you're involved in a couple deals like that so you can.

Defer your taxes and it can reduce your taxable burden because it's in what's called an opportunity zone. And so if it's in an opportunity zone for long enough then it can have capital gains tax wiped out entirely down to zero.

Yeah, so but that's a longer game if I remember correctly. It's more like a 10 year game versus I think it's the next one we're going to do that. You can actually write it all off the same year, right?

You can. So this one, even though on Formula 3 you don't get it all right at once up front, but you do get some of the benefit even if it's not for the full 10 years.

Okay, so next one is going to be a short gameplay which I'm excited about because I, you and I got presented with this deal simultaneously and you, you, you get probably two to three Rockstar deals like this a month right now put in front of you that you're bringing other folks into. But I have, I'm going to have a tax challenge this year and one of the deals that I saw can give you anywhere from 1 to 2x your investment.

Off of taxes year one because of the way they're structured so it literally means if you got a tax problem, you take what you'd normally give to the government, you place an investment, you get to write it all off and you have the upside. And in some of these cases, you get dividends, like monthly cash flow on top of it. So show us one of those.

Absolutely. Well, this freedom formula number four is exactly one of those type of investments where you can invest with a company that invests that money into real estate and the way that they can accelerate the depreciation, you can actually get a $75 reduction of your taxable burden for every dollar that you invest with them from the first year.

That is finger licking good, my friend.

Yeah, and it's a great investment by itself, too. You're not doing it just for the tax advantages, but it also is expected to grow where you can get dividends and then your principal returned within about two to three years. And then you have equity in the company going forward, basically in perpetuity, where you're getting payments and residual payments that the multiple of your original cash is still going to play for you, but you can invest that cash in something else and get an additional tax deduction.

Great. And so to some of our listeners, viewers, this might be old news to you, to me, because I'm really learning right now. I'm immersing myself as many deals as I can. When I saw this. I'm going to just repeat the benefits. Let's say you invested 100 grand. In some cases you can deduct $200,000 from your taxes year one, plus get dividends, which a lot of the deals, the ones I've seen of yours so far, vary in general, anywhere from like 12% to 25% in some cases even a little bit more per year. Plus you get all your principal back in two to three years. And as long as that fund exists, you continue to receive dividends. Am I missing anything here?

Sounds too good to be true, but that's exactly how it goes. And then if they do sell the fund, then you have another large cash out at that time.

Good. And from what you had told me, part of the reason these happen is there are often opportunities that come along where the principals need money now, they need it fast. So they're going to go to some known partners that they know like and trust and they know that they can raise money super quickly and get the fund closed. And that's why these are not deals that are ever going to show up in retail. And you really have to have insider relationships. And in most cases, 5, 10, even 20 year relationships to gain access to them. Is that. Am I more or less accurate?

Absolutely. This is how the wealthy invest. And you're not going to find a deal like this on your Fidelity or Schwab. They just don't exist on publicly traded platforms like that. But, but having well vetted deals in this private equity that are top quartile deals or top decile deals really are how the wealthy invest and how they multiply their wealth so quickly while also reducing their taxable burden. Because it's not about what you make, it's about what you keep.

Okay, so we're going to move over now into some of the infinite freedom formulas, which are time freedoms as well as financial freedoms. And this is the basis of your upcoming book. Book. It's what you speak about when you speak on stage or you speak on webinars. Hint, hint, anyone who's listening or watching, if you want Eric, make sure you go to ericfrancom.com and learn more about both working with him, but also hiring him to speak. But what we have here, we're going to pick a few of each and there's bonuses where you can get Downloads with all 10 of each, plus a bonus video where we go in detail. But I think this would be a good step to explain how you got your money in the first place and what the setup was because that these will make more sense within that context. So do you want to just give us a little backstory on going from dentist to investor to being.

A freedom coach?

Absolutely. So I was a dentist, as you say. I ended up buying my own dental practice and I grew it. And as I was having a hard time with my freedom, I built more practices to try to get me out of that rat race, so to speak. So I used the analogy. It was like I was running a marathon. And I thought my solution to get through the marathon better would be to sprint faster.

Yeah, run. Run three marathons at the same time. Maybe that would be better. Okay.

I don't recommend the strategy, but that's.

How I got there.

And this is how, you know, I've been through this. So I can help other people to do it much quicker and with much less pain than I did. But as far as I had to optimize my practices first and then I did sell them. So I had four producing practices that I had built and I sold them to a private equity company. And so I had some money on hand to be able to go invest with. I thought I was going to hang on to that money and just live off of some of the rental. I had a couple of rentals and I thought, we can live off of that while I create what my next chapter is. Or I'll go back to practicing, you know, possibly as a dentist. But as I, I invested that money, I realized how valuable it could be to have those soldiers work for me. I invested a small fortune into the top investors in the country to help me to become a better investor, to help, to locate these deals, to help understand these deals, and to I, I took the best from each of these investors to create a platform that can help accelerate the freedom for other people and at just a small fraction of the cost. So I was able to optimize my practice and sell them. And when I sold the office, I thought I could live a lifestyle that would be smaller than what I had been living on, But I could do that. And I had achieved what I had set out to accomplish. I had financial freedom. That's why I thought I'd stop with four practices and sell them rather than grow them to 50 and continue on. So now that I had that financial freedom, I found out how to do it right. If I'd known this five years sooner, I could have done it much faster and much bigger. But I've been able to convert that small passive income into large passive income by leveraging the real estate and putting that money into passive income deals and to allow them to pay for the needs that I have for my business interests, for my education, coaching, and to be able to create this platform to share it with the world.

It's great. I think again, one of the reasons why I wanted to have you on today is because I think you're living what most founders and entrepreneurs dream of doing, which is take that business, de risk it. Because we walk around with practically all of our net worth tied up in the equity of our business, which could be destroyed by one government regulation, some crazy IRS agent, an angry former employee, some lawsuit out of nowhere, a trial, a lawyer who just decides to harass you. I mean, there's just so many moving parts and you got to de risk get your cash out and through, you know, just kind of like a little miracle, not be tied with golden handcuffs and then from there take that net worth and become, you know, well over a deca millionaire in a, in two years as a result of that. So having said that, let's pick. It's up to you. I'm going to let you pick some of your top time freedoms and some of your top financial Freedoms that got you there because really they're broken down into two chunks. Chunk number one is how to produce more value, produce more income and position and sell your business. That's step one. And then step two is how to optimize your money and your investments and be able to do deals that produce cash flow equity, but way, way above traditional retail investments. You know what most people would consider traditional investments. Fair enough, Fair enough. Okay.

Well, you know, I was watching an ad for Publishers Clearinghouse and they said, yeah, we all wish we had that lottery. But I thought, what would my life be like if I had what used to be millions of dollars? Now they pay $5,000 a week for the rest of your life and you can give that to somebody else that you love after you pass away and they can have $5,000 a week for the rest of their life. So what would your life be like if you did that? I thought, and that's exactly where I'm at now, or you know, I've exceeded that. And I say that not to boast, but to show people that this is very available to everybody and what would your life be like at that point. So building something that's worth selling is a very fast way to get revenue, to be able to capital, I should say to be able to invest. But it doesn't have to be somebody that owns an asset. People that earn and save can do that as well. And the knowledge is more powerful than the money. I was talking to Kevin o' Leary in a small group and he said, I would rather be a small investor than a big wage earner any day of the week. So no matter where you're at in your journey, putting some money aside to be able to invest in good investments, not ones that barely keep up with inflation if at all, but good ones that can multiply, is going to put you right on your freedom to being able to live your lottery lifestyle.

Very good. I, I haven't heard that one before. Lottery lifestyle. So let's hit some of your freedoms, educate us, entertain us.

So just like it's better to be a small investor than a large wage earner, it's also better to know how to invest than to have money to invest. Because you can actually do zero dollar deals. And I've done deals where I didn't put any money out of pocket and I've been able to make a substantial amount of money by using somebody else's money. And they win and I win for facilitating the deal and so does the person who used that money. So it's a win, win, win.

Yeah, no, that's a really smart arbitrage kind of deal. And I know which one you're talking about.

So that's number seven, infinite education. And just I'm curious if you had to guess right now what you've invested in your education. Just learning what you know, not including mistakes, okay. Not including.

Big business disasters that you paid for along the way. And by the way, you're only 39 years old, so you're a young guy to be at where you are. I mean, it's, it's frankly pretty amazing. I'm a little jealous. But where, what do you think you've invested in yourself, in your education?

You know, it's been over a million dollars, but it has been the best investments I've ever spent, more than even investing in some of these powerful companies. And that knowledge that I have is not just for the time of that investment. It's forever. It's perpetually, it attracts more knowledge. I learned things that I've been able to network into other mentors and groups of colleagues that also have strong information and knowledge. So I will always have infinite quest for freedom. And when you have more time and resources to pay for that in that increased education, it doesn't just grow linearly, it actually grows exponentially.

Yeah, you're right. And part of that again, in knowing you and watching you, what you've got right now is a access to a lot of deals, a lot of good deals that are basically pre vetted. And in some cases, I don't want to give away some of your little secrets here. I think I'm going to wait because I was actually excellent, I was going to let one slip that's really, really smart. So let's, let's hear another one. What's another time freedom?

Well, one thing for those that are selling their business to be able to get the time you want to be able to sell at the top. So when you are selling a business, you can sell it for a multiple time, multiple of your profit a lot of times called EBITDA and a lot of times dentists and other professionals and other business owners, they sell after they've slowed down. They've taken a couple days of the week off and their business isn't really worth anything anymore. So they don't have a golden goose or a basket of eggs at the end of their transition to retirement. So we really want to convert, you know, your golden eggs into a goose that lays golden eggs in perpetuity. So make sure you sell at the top optimize. And that's something that we can help to do, is to optimize, get you in front of some buyers, get your practice or your business sold, and to turn that into compounding interest.

It's. It's great. I know.

In two instances, really three, if I'm super honest. I was past my peak with a few of my business because I get bored fast. I'm a horrible operator, I'm a great startup guy, great launch guy. But I was burned out, I was tired, and I frankly, I wasn't going to tell the buyer this. I was ready to just start the whole thing on fire and walk away and just be done with it. Thankfully, I didn't. But.

That'S a pattern. And now that I know that, I know I'd never make the mistake again. But I can't agree with you more. That was something that really resonated, by the way. That is time freedom. Number number eight. All right, give us another one.

Well, let's go to time freedom number 10, infinite growth. By having, again, the time to network, educate, and live the experiences that you have. You're living your dream life now. You don't have to wait until retirement. Sometimes we tend to sequence our lives to where we're not going to enjoy ourselves until retirement. And a lot of times people get to where their bodies can't do the things that they really wanted to do. Maybe they have, heaven forbid, health problems or whatnot. Not. But you can have that freedom now. You can have the experiences which rejuvenate us, which gives us more creativity and the ability to create the things that move our soul and to make a difference not only in our lives and our family's lives, but in the world while having such a fulfilling time along the way.

Yeah, I think that's a classic illusion especially young entrepreneurs have, is they're like, it's about the money. It's about the money. It's about the money. And the truth of the matter is.

Where most founders are motivated by experiences and, and obviously freedom. So. All right, keep. Keep it rolling. What's another one?

Well, now we're going to go into the financial freedoms.

I'm gonna. I'm gonna stop you there. There is one more. And. And I. I want to go back to number nine. Okay, let's talk a little bit about that one, because this describes you quite well. And in knowing you like I know you now, I think it is one of the key factors that gave you the ability to do number 10, to have the. The infinite growth but in order for infinite growth to happen, something else had to happen first. And this was. You had told me earlier this was accidental. So now he set it up for you perfectly. Go for it.

I had time, freedom and money. Freedom. I had sold my practice and I was going to be associated with that practice for a time, which happens a lot of times in the sale of a business. Business.

Golden handcuffs.

The golden handcuffs.

But what's the worst thing you can do for a lion? How do you make a lion not a lion? You know what the answer to that is?

I would say you cage it.

That's right.

And make it not a lion.

Totally. Totally. So putting an entrepreneur in a cage, which means making them an employee, is the worst thing possible. It's happened to me twice. I lasted the first time, one week. The second time, one hour. One hour. One hour. Someday I'll tell you that story.

And I didn't do it. It wasn't me. I will tell you that. Okay. It was. What happened next. It was like I, I met, I met the. I met the lion, the gatekeeper, the lion keeper. Back to you. Take it away. What's number nine?

So, yeah, avoiding the golden handcuffs is something that I, in hindsight certainly would have learned this lesson and would love to help others to. To have the same freedom that I did by not having those golden handcuffs. Meaning you don't want to sell Your practice for 25% of the purchase price and get that money now and all of your purchase price being based on increasing the business when you don't even have control over the business.

Yeah.

So you want to be able to have that control. Take the money. I would take less money to have it now. Put it into investments like this. Let them multiply, let them grow. Let you have the freedom to create what you want, live the lifestyle you want, build the relationships that you want. Want. So a lot of companies that are buying say, well, we'll give you something better than money. We're going to give you stock in our company and they're basically buying you with your own money.

What a horrible idea. Okay.

Yeah. So you don't want to. A lot of people could think of it this way. Well, if I had 75% of the value of my business, would I invest it into this company or would I divvy that up into diversified, Diversified, non correlated investments like I show people how to do?

Totally. Yeah, that's, that's something that my attorneys told me when I did that exit, which was, well, one of them anyway was, you know, they wanted to give me a lot of stock. I'm like, nope, I just, I only want cash. If we want to talk about stock, that's after this deal. So this is that. And that is not. This was the conversation. So. And again, in knowing you like I know you, here's what I believe happened was because you got to walk away with less plus freedom, you went out, you, that motivated you to create a new identity for yourself as an investor. You learned these skills, you surrounded yourself with amazing people, and you walked into it with an enormous amount of faith and trust in yourself.

And that's hard because going from being a founder and a business owner to becoming an investor and learning these things and also dealing with the lack of clarity or lack of courage or.

All the variables, it'd be easy to sit and bury your talents, right. And just bury the money and then live on a little bit instead of going out there and learning how to de risk, which you've really learned to do. And I think that's a perfect transition into the money freedoms. You ready?

That's the key. Absolutely, yeah. I mean, Warren Buffett, right, He said there's only two rules. One is, is don't lose money. And number two is don't forget rule number one.

Yeah, yeah.

To paraphrase, good. So cash flow is king. That is such a powerful concept. There can be people that sit on millions upon millions of dollars, but don't have a rich lifestyle. They're not able to travel, to see their grandkids the way that they want to, or to do the things they've dreamed of because they don't know when they're going to need that money. And they don't want to see their nest egg go away. But by converting that into a cash flowing income, they can have generational wealth where they have 10,000, 20,000, or what they need to to live. An example would be a tale of two doctors that I know that were brothers. They were both in the military. Well, the first brother was in the military, I should say. And he got paid less as a doctor and he retired earlier, but he had $10,000 a month that he knew he could spend every month, and he spent all of it. And he had good retirement and benefits. Where his brother retired much later, he had to work more years, but he got paid more. He had more money that he was sitting on, but he didn't live the same lifestyle. He was hoarding that money because he wasn't afraid of. He was afraid of how long he was going to need that money for. So I want to turn as many people as hear the sound of my voice into that, the example of that first one where they have the best of both worlds. If that other doctor had turned his nest egg into cash flowing investments, he could have lived the life that he wanted to, as well as his kids and grandkids.

Okay. And I want to frame this at least through the lens I look at, which is passive income, cash flow. And, and really what I'm, I'm hearing here, and, and, and I'll be the first to say, like I had for a while, a subscription based software business. A lot of people thought, oh my God, that's mailbox money. It's like free cash flow money. No, it wasn't. It was a really complicated, expensive, risky business that could have broken at any time, and it did all the time. This is where you're actually getting residual passive income. And what I've seen from your portfolio, because you've been super transparent with me, you've got a bunch of investments that are producing regular monthly cash flow, and you're getting involved in more of those all the time. And you're creating leverage without putting yourself at tremendous risk, which is. That is an art form, quite frankly. So I love that example. Anything else you want to add to that?

It's just been a life changer for me and it will be for generations.

Yeah.

You know, one thing that it's affected my life is I had my dream boat, the Malibu wake setter. I'm a wakeboarder and surfer. And I didn't want to bring that kind of money to a boat, but I put the money I would have for that boat into an investment which pays me monthly. And instead I was able to. I could have got a payment for that boat, but I did a boat club membership where I have access to 20 brand new boats. And I have places all across the country that I can use. And I'm still making $5,000 a month. So I feel like I'm getting paid to go boating at this point, in a sense.

Good. And I'm gonna, I'm gonna translate into the, the way I understand it. So you had the boat, you sold it, you took the cash, you invested it into a cash flow producing investment, and you take a portion of that money and invest it into your boat club. So you have all the benefits of boats now. You have 20 boats instead of just one, without the liabilities and all the pain of maintenance, et cetera, et cetera. And you have the principle, the cash. You have the cash principle. And the ongoing residual passive cash flow income. Right, exactly.

So I did sell my boat and. Yes. And now I have one in perpetuity while getting paid to do it. So it's a much better situation than don't have any debt. And it wasn't paying me anything to just depreciate before.

Yeah, I love that. Okay, let's do another one of your financial infinite freedom principles. What you got?

You know, negotiating and vetting deals is such an important thing. You can find deals all everybody has deals. It's finding the ones that have a protected floor and a high upside. So you can de risk things by negotiating. It's important to be able to get your money back in a short amount of time. And there are negotiated terms that you can have where there are some deals I've gone into years later than somebody else when the company's valuation is higher. And I've been able to negotiate for that same price that the previous person did right before that company. That fund took a company public and had a distribution where I got the same distribution and all of the same upsides that somebody that had been away from their money for two years. And I'll receive my money back a few years quicker.

Yes. And I will say there's two, two big takeaways I have from that. One of them is a term sheet isn't a contract. And a lot of younger, less experienced investors assume that the paper is the paper. And it's like, no. When you're dealing with a sophisticated investor who's a sophisticated negotiator, you can talk about something different. And that deal is really indirectly how you and I met. So we invested in the same deal and the big benefit. I think what we connected on is we both realized we love deal structure. Like, the deeper you get in this, it just, it's mind blowing. It teaches you so many things about life. And to me, it's sort of like a new form of philosophy. So what are some of the other de risking strategies that you been using that have given you basically, you know, not only less risk, more equity, less cost, better deals right up front.

All right, number five, after cash flow, build generational wealth. You need to make sure that your daily and monthly bills are taken care of. After you have that, you have excess that you can actually use to help other people. You can build generational wealth. You can put your money in other investments that if you don't need the access to or cash flow, they actually pay a little bit of a premium. On average, about 4% extra if you don't need access to that money at that time. So one thing I like to, I like to use the analogy of a financial oxygen mask is they tell us in the airplanes to put our own mask on before we help the children. And the Good Samaritan is another example that I think of. If he didn't have a surplus of time and money and resources, he wouldn't have had nearly as much power to help the man he was trying to help help. But he paid him and he had to go on his way.

Okay, can you give me an example of one of your generational wealth strategies that.

You love, you think is going to give you some long term generational wealth advantages? I'm just super curious what you picked.

Well, the biggest thing is by not having to harm the goose to get the golden eggs, you can have that for generations to come. You can have money.

You're talking about principles, specifically talking about the principles. Okay.

Leave as much in principle as you can and take the dividends to live off of. And then you can allow that and just massage and take care of that golden goose and allow it to, to grow. So I, once I have my cash flow investments that pay for what I need, then I can put them into more growth investments which are a little bit different and tend to have a higher return than the cash flowing investment.

Okay, give me an example. I want an example.

So an example would be the cash flowing deal that pays monthly into the bank account like you had seen, whereas it had a counterpart that also has a growth component. So the equity could grow. There are investments that are just growth components and ones that are just dividend components. And investing in the ones that are for growth tends to be the ones like the example number two, the formula number two where $100,000 could be turned easily into $2.9 million in a matter of three years. So once your basic needs are covered, then investing in the larger return potentials are my recommendation.

Great. And I think what I like about your portfolio, what I've seen of you, is you've been doing some hybridized versions. You get your cash flow, you wind up with anywhere from like 100% to 300% of your money back over a period of time in the form of dividends. They're monthly followed by a balloon payment. In some cases you get all of your principal back and you still have equity in the business, which can grow over time. And then there's a long term liquidation event. Is that best way to summarize this?

It seems too good to be true. But it is great for the investor. And the companies have the hardest when they're growing. Raising money can be one of the more challenging things they have. So it's really a big win for them too.

Yeah. And I think what I've seen of these, now that I've been exposed to them, is the reason why these too good to be true deals come up is because the value of the cash now, because these, the way you're doing your deals are basically syndications. So you'll go out and a deal will come along. It might be really early on, but the, the company might already have customers waiting. They just need capital to finish something. So they'll go to a group of you, which can be 10 to 100 people and say throw down. Now you're going to get all these extra perks because they need their 5 or 10 or $25 million quickly, oftentimes in under a month. Well vetted, experienced team with customers, proven technology and assets to back that up. Right. So it de risks it like crazy. And again, if you aren't part of these circles, if you aren't part of these syndicates, there's just no way you're going to get access to IT and.

Vetting the top ones to make sure you're getting a good one. Because a lot of people put deals out there. Yeah, it's important to get the right ones for sure.

Okay, so do you have any. I know you want to do one more and then let's get to sending people off to learn more about you and get some of the bonuses that we prepared as well.

Yeah, let's do it It. Okay, so what does this all mean? How does this translate to, to freedom? Well, the flow of money is a flow of energy and it can be very rewarding to invest in things that make the world a better place. You can make a lot of money and make a difference in the world at the same time. One example, one of the companies that I'm invested in is creating high end robotic arms. I have a nephew that was born, I believe his umbilical cord got wrapped around his hand and he was born without most of his hand. The technology that they have to allow these fingers to move almost like Luke Skywalker at this point, to move independently, each finger is going to change his life. There's another example. During COVID they, there was a company I'm invested in that was able to create respirators which nobody could get a respirator. And they were able to do what was thought impossible and created A respirator for a low price point to be able to save thousands upon thousands of lives. So it is important to enjoy what you're investing in and to invest in things that you enjoy.

I love it. I couldn't agree more. And I think that's why we like each other and we decided to start working together. So let's talk a little bit about some of the goodies that we've put together for our listeners and our viewers. One of them is all 10 of the time freedoms and then all 10 of financial freedoms. So we've got documentation, we've got a bonus video, and then there's more where people can learn about how to work with you. Either hire you as their freedom coach and also engage with the king of cash flow, which is getting vetted deals put in front of them. That, and get part of some of your syndications. Is there anything else they need to know about you?

It's just amazing how quickly this can happen. You can get invested into a deal and within weeks half have that monthly cash flow coming in. It doesn't take long.

Yeah, it's, it is very, very impressive. And I, I have to say I avoided this because I was so busy building and growing and controlling my business, I thought it'd take a whole bunch of time. I didn't understand it. And I'll say if I had a regret, it's that I didn't focus on cash flow producing passive income sooner nor take advantage of investments because again, I was just afraid and I didn't take the time to learn the vocabulary. And the other thing is I didn't have access to a coach like you who could teach me this stuff. So I think the last thing I'll leave before I pass it on to you for any kind of summary is.

If you're not involved in this, now's the time to do it. If you already are, now's the time to get access the, to, to better deals, learn more and see the structure because this is an ongoing moving target. But it, it isn't that hard. It, it has more to do with the people you're around, the community you're in, than going to the equivalent of the Harvard training school. Because a good mentor is going to hold you by the hand. They're going to give you some vetted deals deals. They've already got their, their own skin in the game and they're not going to steer you wrong. They're not going to put their reputation on the line if they're good people, people.

All right. Well, the things that I like to ask my clients are, what will you do with an extra $20,000 a month? Who will you be able to help? Who will you spend your time with? And what is your biggest purpose? Your biggest purpose that trading your time for money is holding you back from.

Yeah, those are good. Those are good questions. I love that.

Well, I think the.

You know, an extra 20 grand for most people, unless you've got some bad habits or some really big expenses, you can live a very comfortable life on that. Absolutely. And there's no doubt about it, just with your time investment, the leverage you have. And what I've been learning more and more as I've been asked to be on boards, for example, is having a level of financial freedom opens up that white space where magic happens. And, you know, I like to say that my goal in life is to create rich playmates.

And, well, you're one of them, which is fun. And. And that is. That is my purpose. I know you didn't ask me that question specifically, but I'm thinking into feeling into who I know our listeners and our viewers are, who are primarily founders. And what they seek is more freedom and more purpose and more impact and also a greater sense of community and connection and being around people who are smarter than they are, who really greet that and welcome it. So I hope that I'm answering that question for most of our folks, but I think, again, I'd encourage you to go to ericfrancom.com free. That's where you get the bonuses. Also, ericfrancom.com applies where you can learn more about actually working with you. So this is your chance. Any other ask before we wrap this up?

Just look forward to helping other people to find the same freedom that I have. And I just can't tell you how it's changed my life. And I want to help change the lives of as many people that want this, too.

Awesome. All right, well, let's say goodbye. This is Capability Amplifier. This is Eric Francom, king of cash flow and America's number one freedom coach. Thank you so much for watching. Make sure you like you comment and send me a message if you've enjoyed this episode and you want more like it. In the meantime, head on over to Eric Seitz. Thank you so much for watching and listening. Bye. Bye.