Entrepreneur | Part 4 – Real Estate Terms With Michael Burer

Audio Transcription

Get ready to enter the Thrivetime Show! We started from the bottom, now we’re here. We started from the bottom and we’ll show you how to get here. We started from the bottom, now we’re here. We started from the bottom, now we’re here. We started from the bottom, now we’re on the top. Teaching you the systems to hear what we got. Cullen Dixon’s on the hooks, I’ve written the books. He’s bringing some wisdom and the good looks. As the father of five, that’s where I’m excited, you’re excited. We’re talking about gross rent multiplier. Now we are joined here today though with none other than Michael. There is no real estate topic. Too obscure a bureau to help us deal with this. Now a lot of times once you get into a business or a certain industry you start using jargon. So for instance, you might start to kind of turn everything into an abbreviation. You kind of start to, instead of saying let’s keep it on the down low, you might say, let’s keep it on the DL. If you’re in the R&B community, you just, let’s keep it on the DL. Now, in real estate, they do the same thing. Instead of saying gross rent multiplier, they start to say GRM. Now, Michael is so into real estate, he just started to say, grm. And we don’t even hear the, grm. That’s gross rent multiplier. He’s just so into the know that he’s broken it down to that level of abbreviation. It saves time. It’s not funny. I’m just having a good time because San Diego just makes me happy. It makes me smile. It makes me laugh. Joyful. Alright, so let me read the definition to you here. And then Michael can provide an ample example to see if my mind can handle it here. It’s a method investors may use to determine market value. This method calculates the market value of a property by using the gross rents, an investor anticipates the property will produce at the end of year one multiplied by a given factor. Walk me through. What does this mean, my friend? So this is a way of looking at the value of a building. It’s typically found in multi-family type of commercial real estate. And it’s a way of comparing the relative income stream from one product, the gross revenue from one building to another. So you’re trying to… when would you want to do that? When would you want to compare like that? Well, you’re comparing values. So maybe when you’re buying it or you’re looking at selling, you’re comparing the value of one building relative to the other, you could look at the GRM, the gross rent multiple that one building produces versus another. Does this get talked about a lot in your office? In multifamily settings, yes. Multifamily, it does. OK. So this is, if you’re getting the multi-family real estate, this is when you would start to talk about this. It’s more often found in that. Why? Industry standard, industry practice. OK. Michael, I wanted to share with you how much I appreciated you. And so I pinned this last. I pinned it. I didn’t write it. I pinned it. That’s kind of a, as an author, as an artist, as a guy who’s sort of a diva about my craft, I decided to use the word pinned to express this. I pinned this little phrase for you, and I hope that it forever changes at least your afternoon. Michael, even if I found a $100 bill on the ground and I gave it to you, I could not appreciate you any more than I appreciate you right now. I like the hundred dollar bill. Alright Thrive Nation, we are joined today here with Michael, there is no real estate term to obscure Burer, to talk about something that you’re passionate about, you’re excited about, you probably looked it up on the website so I know you want to know. It is called the ground lease. Now, I’m going to read the definition and he’s going to provide an ample example about what this actually means. So here we go. Ground lease. A lease of the land only. Usually the land is leased for a relatively long period of time to a tenant that constructs a building on the property. A land lease separates ownership of the land from the ownership of the buildings and improvements constructed on the land. This doesn’t even make sense to me. Why would you want to just lease the land? Why don’t you just buy the land? How can you lease the land? Well, so this is if you would Basically, you separate the ownership between the land and the the building that’s on it. So for example if you were gonna Piece of dirt and you wanted to lease it to Somebody who’s gonna build a restaurant there They instead of coming up with the capital necessary to buy the dirt They could just lease it on a long period of time and then build their building they wanted. That doesn’t even make sense though. What if you built a building and you didn’t own the land underneath it and then the person who owns the land decides that they don’t want your building on it anymore? I mean, how does that work? Well, so typically you would have a long-term lease, you know, 30, 40, 100 years. An unbreakable deal. And it’s a long-term lease, so it becomes effectively like you own the land if it’s a long enough term. Why would you do this, one? And then, two, what’s an example of where this might be common? It’s certain states it’s more common in. It’s very common, for example, in Hawaii. Why? Just the history of how legal title and land worked in that state. So people in Hawaii just don’t want to sell the land? In some areas, yeah. In Mexico, this is very common, too, right? In Mexico, you can’t buy the land, right? You can’t. The rules have changed there and you can now. In my face. Okay, well Mike, I appreciate you sharing this with me, but I want to know like if I’m a landowner right now and I own a piece of land, at what point would I ever want to consider leasing my land, leasing the ground and not selling it? Well, if you wanted to, it’s a very secure investment. So if somebody builds a building on your land, and now you have the security for that lease, are those improvements. Meaning if the person stops paying you rent, you can take over the lease and now you have control of those buildings. And why, if I am somebody who is thinking about buying land, why would I want to lease the land instead of just buying it? It requires less capital. So instead of coming up with all the money to buy the land, you could just lease the land and it’s a way of effectively financing your position. Michael, even if I bought you an entire box of those strawberry Pop-Tarts, I couldn’t appreciate you anymore right now for coming in here and talking about ground leases at the fabulous Dell Hotel. I’ve never been outside except for today. And today I’m joined with Michael. There is no real estate topic to obscure Bure. To talk about a topic that I know you want to talk about because you clicked on it here off the coast of San Diego at the beautiful Dell Hotel. So here’s what we’re talking about. We’re talking about income capitalization approach. Now this is something that he’s qualified to talk about and so I’m going to read the definition, but then he’s going to explain to us kind of why you need to know this. So here we go. A method to estimate the value of an income-producing property by converting net operating income into a value. The cap rate is divided into the net operating income divided by capitalization rate. What are we talking about? So there’s three primary ways of valuing a building. There’s a sales comparison approach where you look at comps, what do other buildings sell for. You could do a replacement cost analysis, what is the cost to rebuild this. Or you could look at the income capitalization approach, basically where you capitalize the income stream. So if the building has a $100 income a year and you bought it at a 10 cap, then that would be worth $1,000. So you compare the cap rates, I could buy this, and the cap rate represents basically the yield on your investment, how much you would expect to get in return for your investment. Now you mentioned the big three, and you do this every day, and I’m kind of like, whoa, can you go over those three again one more time just so I can fully grasp it? Yeah, so you have the income capitalization approach. Income capitalization approach. The sales comparison approach, so where you’re comparing, this one sold for $200 a foot, this one sold for $210 a foot. The sales comparison approach, okay, and the third? And replacement costs. Replacement costs approach? Yeah. Okay, and so in your mind, which one of these do you use more often? Again, it depends on what you’re doing. You kind of would want to look at all of them and decide which is going to be more relevant. Probably the most two important though would be the sales compare… to determine market value, the most important would be a sales comparison and an income capitalization approach. If I’m a typical business owner, which one of these three am I going to use more often? If I’m a typical small business owner. Well, again, depends what you’re doing, but probably to determine value would be the income capitalization and the sales comparison approach. So if you’re saying, hey, I can buy this at a seven cap, this building at a seven and a half cap, that gives you some idea of is your sales price in line with the markets. I want to share something with you right now that I’ve been sitting on, and it’s something better. Without your supreme knowledge of income capitalization approach, without that, without what you’ve just done, I believe that we would probably still be thinking that Y2K was going to happen. How about that for appreciation? Boom! Alright, Drivers, my name is Clay Clark. I’m your host with the most, the man with the plan, the most humble person you’ll ever meet. And I’m here off the coast of San Diego talking about, talking about index lease, index lease with my main man, Michael, there is no real estate topic to obscure beer. I’m going to read the definition. He’s going to provide us an ample example that you and I can handle to explain to us what this means in layman’s terms, not lame man’s terms. I know you were thinking about that sort of thing, but here we go. A lease in which the rental amount adjusts accordingly to change and or movements in a price index, commonly the consumer price index. What are we talking about? So typically when you enter into a lease, say a five year lease, every year the rent is going to increase. Sometimes that would increase at say 50 cents a square foot. Sometimes it may increase at a percentage, so maybe it increases at 3% per year. Another way of doing it though it would be based on an index, so usually an inflation index, like the consumer price index. And so that lease, if that index goes up due to inflation, then your rent on an annual basis would increase. Is the consumer price index the same thing as the inflation index? Consumer price index is one way to measure inflation. The most common way to measure inflation. Okay, and can you explain to the thrivers out there who maybe aren’t aware of what it means to devalue dollars and how inflation works, can you give us just a third grade level of what the word inflation means? Inflation means basically money becoming worth less over time. Why? That’s a longer answer. I’m going to give you my understanding. You tell me if I’m wrong. Government spends money they don’t have. They print money. And the more money they print, the less it’s worth because there’s more money out there. It can cause a lot of inflation. Okay, what’s another reason that causes inflation? People, just a perception that the money is worth less. Okay. Helium can also cause inflation. It can. That’s something I just, I put in my notes here, I just thought about that for about an hour. Now, hey, in all sincerity, I appreciate you very much for being here, and if your hairstyle exactly matched mine. That’s the only way I could possibly appreciate you more. Thank you so much. All right drivers, we are here in sunny San Diego and I am here with Michael There Is No Real Estate topic to obscure beer to talk about a topic that I know that you’re passionate about that you need to know about. It is called insurable value. Now I’m gonna read the definition and he’s going to tell us a little bit about it and what it means in the context that you and I and other business owners need to know. So here we go. Insurable value. The value of the portions of the property that are physically destructible. What does that mean, my friend? So this is the value you would declare to your insurance carrier for them to replace in case the building was destroyed. So this is the building, maybe the contents of the building, the mechanical equipment in the building, but easily not the land. Let’s say that I own a restaurant and my restaurant’s worth a million dollars. If it’s in San Diego, it’s gonna be worth about four million dollars for the property. But let’s say I have a four million dollar property, I guess, in San Diego. You’re saying it’s not the value of the land? Yeah, and it’s not the market value. So your building may be worth four million dollars. Yeah. If you were going to go sell it, but it may cost you six million to replace it. So that would be the insurable value, which is completely separate from what it would cost to buy it today. How do people sometimes get that wrong? How do sometimes people confuse it or mess it up? Is there anything you see common in the world of commercial real estate where people have the insurable value messed up? Well, sometimes they understate that value. Why? Either because they don’t have all the right numbers or because maybe purposely they want to reduce their insurance costs, but it’s dangerous because if you ever have a claim, then you’re going to be underinsured. I put in all my insurance forms and I’m worth $4. There you go. It’s very strategic, very affordable, very economical. Now, last night we had a brainstorming session with the crew. We were like, how are we going to show this guy how much we appreciate him? And so each guy got a chance to write a little phrase for you. I want to read this one to you. Ben, one of our trusted Thrive advisors, videographers, wrote this. He says, even if you could share with me the secrets of picking a perfect March Madness bracket, I could not appreciate you more for being here. Thanks, Ben. That’s right. All right, Thrivers, I am Clay Clark, and this is Michael Bure and we are in sunny San Diego with the man, the myth, the legend, the man they call Michael there is no real estate topic to obscure Bure. When I say they, it’s mainly me. No one’s ever called me that before but it’s starting to catch on. There’s people, you’re starting to hear people get excited about this nickname. So I’m going to go ahead and talk, today we’re talking about this topic of interest only loan. The interest only loan. And so what I’m going to do is I’m going to go and read the definition and then he’s going to explain this little context as to what it means and why you need to know about it. So here we go. The interest only loan. The definition is a method of loan amortization in which interest is paid periodically over the term of the loan and the entire original loan amount is paid at maturity. What does that mean? So what this means is that more commonly in a loan, with each payment, you would make an interest payment and also a payment towards the principal, reducing that outstanding loan balance. But with an interest-only loan, you’re only paying interest. So that loan balance is not decreasing over time. That’s a room service right there. We keep it real here at Thrive. We don’t interrupt. We’ll go over this. I hope it’s good stuff. Now, at Thrivers, as you can tell, when the vehicle has to be moved, when the light has to be turned on, we just keep on thriving. We just keep winning. It’s like Charlie Sheen is in this episode. And that’s interest only loans, what would make a person want to do an interest only loan if you’re not even paying off the original loan amount? So you do an interest only loan if you’re trying to minimize your monthly payment. You want to increase your cash flow on a monthly basis. One way to do that is an interest-only loan happen within the context of commercial real estate? When do you often see this happen? With a property that is value-add, it needs to be repositioned in some way. Maybe there’s low occupancy, so there’s lower cash flow. You would do a short-term loan that is interest-only until you’ve got it stabilized, and then you would switch to a more permanent loan. You said value-add, and I want to make sure everyone gets this. That would mean that you’re buying a property. Let’s say that it’s half leased, and you’re going to add value to it by improving it. And in the hopes of selling it at some point at an increased value, is that what value add means? What does value add mean? That’s exactly right. So you’re going to go in, you’re going to reposition in some way, either cosmetically, mechanically with the equipment, by leasing up or changing the tenants in the building. All of those things would create value that are going to allow you to sell it ultimately at a higher price. Well, first off, it’s not possible to add any more value to you. That’s something that’s true. But I really want to say this from the bottom of my heart. If I had a cruise ship and I named that cruise ship after you, if I painted it, hand-painted it, I’m out there hanging on the side of the boat, hand-painting the USS Michael Beer. Yeah, if I did that, hand-painted that over a period of like a year, I still would not adequately show how much I appreciate you being here. Boom! My name is Clay Clark. I’m your humble host here at Thrive15.com and I am joined with the man with the plan, the co-host with the most, the dude with the positive attitude, the kind of guy that men are frustrated with because every woman in the world thinks he is beautiful. Ladies and gentlemen, we are here with Michael. There is no real estate topic too obscure. We are talking about this topic that I’m excited about, he’s excited about. It’s called Landlord Paid Tenant Improvements. Some people call it LIPTI. That was actually a girl I dated back in third grade, LIPTI. No, I’m just kidding. Anyway, so we’re going to talk about LIPTI, as you call it in the biz. I’m gonna read the definition. You can tell us what it means. And then if you know of somebody named Lipti, you can tell us that story. So, you gotta stay focused. He’s so distracting. Here we go. So, I’m gonna read the definition. The total cost outlay of necessary tenant improvements paid by the landlord netted, netted against any contribution made by the tenant. What are we talking about? Well, as a tenant, when you go in and you’re gonna lease the space, you wanna get the space probably improved per your specifications. So as an office tenant, you may need, it built out with office, private offices in certain areas, maybe a kitchen in a certain area. If you’re a retail tenant, you need specific requirements. And the question is, who’s going to pay for those improvements? Is it going to be the landlord or the tenant? And there’s a lot of negotiation that can happen around this point. Often, a landlord will be willing to pay for those improvements, especially if there’s some credit that the tenant has. If the tenant has good financial history, the landlord may pay for those improvements. And it will allow for the tenant to get into the space with a smaller financial outlay. Let me give you a thrivers example, you tell me if I’m wrong. When I released my first office space, I remember the people said, what do you do? And I said, well, I’m a DJ. And they’re like, you know, so I said, no, no, no, no, I’m an entertainer. We’ll get to the next building. I said, I am in the, I own a, I’m in the wedding business. I’m in the special events business. Nobody wants to lease to me. Finally I say, look, I’m sort of a new business, I’m looking to lease space, that kind of thing. I’ve been in business for four years, five years. They look at my financials. Finally when they looked at my financials, they said, this guy, we’ll lease him some space, but we’re gonna give you very little TI. And I’m like, TI the rapper? You didn’t know the rapper? I’m a hitman with DJ. You know the TI, you give me a very little TI, what does this mean? And they said, no, no, no, tenant improvement. And they said they’d give me like a dollar a square foot, which is like they would take the space they leased me and paint it for me, or I could put new carpet in, or whatever. Now the next lease I did, they gave me a lot more TI, a lot more tenant improvement. They said, hey, you’ve been in business a long time, you have a great reputation, we’ll now give you X amount of dollars. Then the final one I did, they gave me even more. So I want to know, if you’re in business and you’re just starting out, and you have a credit score that’s, you know, in the 700s, it’s pretty decent. If you’re not familiar with credit scores, it’s a pretty decent credit score. But you’ve never started a business before. Is it reasonable for a landlord to give you some tenant improvement to say, hey, we’re going to give you a little cash to build out? Is it normal? Is it not normal? It all depends on the market, but probably not a lot. Really? If you have a lot of history in that business. If you’re willing to sign on the lease personally, a personal guarantee, and you have some personal assets that you’re backing that lease obligation up with, then you could get more of improvements. Let’s talk about that. So you mean if you’re saying, hey, if my business goes to crap, you can take my house or my car or my stuff. That’s what you’re saying when you say personally guarantee it. Right. Okay. That’s more of a financial risk that’s on the line, but you can get a benefit from that by maybe getting more dollars from the landlord. I want to make sure if you’re watching this, you’re processing this. If you have this thing called the LLC, Limited Liability Corporation, or you’re some kind of incorporated business, in theory you want to protect yourself from being liable should your business bomb. But if you want a lot of tenant improvement, so let’s talk about this. Let’s say you open up a restaurant today and you need $40,000 to build out that space you go to the landlord and you said I’d like some tenant improvement He says I’m not gonna do it why your business is new But if you personally guarantee it and you put that $200,000 of home equity over here up for it or something then we might be able to talk But you’ve got it You got to understand that like this tenant improvement is based upon your credibility your reputation a lot of these factor your credit score Right. I mean so you can’t just expect to have it and the other thing it’s based on is rate, the rate you’re paying. So you may have to get over the credit hurdle, but also what you’re paying. You may pay a dollar per square foot for a TI allowance of five bucks, but maybe you want to pay, maybe you’re willing to pay a dollar and five per square foot and get a couple more dollars in TI’s. You know, last night, the Thrive team, we had a chance to go out with the Thrive mentor, Paul Pressey. He’s a coach for the Lakers. And they get these guys got a chance to go out and meet Chris Paul player for the Clippers as Lakers versus Clippers I got a chance to meet coach rivers coach doc rivers got a chance to think I’ve got photos with Jeremy Lynn got a chance to Talk to Jeremy Lynn a lot of neat stuff’s going on. You know, that would be like way up here And then down here. It’s like, you know, that’s like Yeah, I don’t know what’s down here. I Appreciate you somewhere in the middle of that. I’m touched. Hello my name is Clay Clark. I’m joining you here from the beautiful, beautiful locale of sunny San Diego. With Michael there is no real estate topic two of Skier Bure. And we are talking about one of the topics that’s really, it’s hard to not get emotional when you talk about this topic. It’s called landlords. I’m going to read the definition, and then he’s going to tell you what it really means. Here we go. The definition is the lessor or owner of the leased property. What does that mean? Landlord is simply the person or individual or company that owns the property, and it implies that there is a relationship with a tenant, some kind of contractual relationship where they’re leasing the property to a tenant. I have three questions for you on this that a lot of business owners ask me all the time. They’ll say, why would I want to ever lease something when I could just buy it? I mean, couldn’t my landlord just come in and cancel my lease and tell my business to move and you would say? No. You have your, depending on the contract of course, but you have a contract that gives the tenant certain rights and allows them control of the building or that space for a specific period of time. If you own a business, let’s say you’re getting started. Let’s say, in my case, I started a DJ business and a photography business and a party rental business and all these different businesses. Was working a little bit as a consultant in the insurance business. At what point do you say, well, you know, you’re already paying this much in lease, you might as well go ahead and buy the thing. I mean, when do you want to become a landlord or become an owner as opposed to having to, you know, write checks every month to the landlord? Well, the key difference is when you have a lease, when you’re a tenant, you have usually a shorter-term commitment. Your outlay, your financial obligation is a lot less. So you have more flexibility. If you own it, you have committed probably a significant amount of capital to that specific building, and you are locked in in a way that as a tenant you are not. There’s a little burger restaurant that’s on the East Coast and I want to go and show this example with you. I met this guy at a speaking event and he and his wife not only started a business, a franchise, but they went out and bought the building to start and found out burger business wasn’t for him, didn’t really like it. He thought he would like it, love the food, thought it’d be great and then he’s kind of tied to it. And then he’s going, man, these payments are killing me. The business isn’t in business anymore, and now I’m trying to lease it out. So in your mind, is it even wise for someone to try to become an owner or a landlord when they start a business? Or would you recommend people lease and then kind of stair-step into it? Or what’s kind of your – I mean, there’s no specific hard rule here, but what’s your thought? You’ve been leasing space to people for years. What do you think? I think the benefit of leasing is you have the flexibility. If you’re starting a business, you’re in the business of whatever, selling cupcakes, selling burgers. You’re not in the business necessarily of owning real estate, and that’s a very different business. And so when you lease space, you can let your landlord worry about the building and maintaining that and running that, and you can focus on your building. And so there’s a lot of advantages to leasing. I want to encourage you, if you’re watching this, just to think about that for a second. You want to focus on whatever your core business is. You don’t want to spend your time focusing on dealing with air conditioning and landscaping and all that. I would just encourage you, if you’re thinking about starting a business right now, I would encourage you to put buying the building as a thing you want to do down the road, but maybe not now. That’s just my objective, that’s my perspective after working with businesses for years. You can make your own decision. Michael, I appreciate you being here and really it’s hard to put it into words, but I did. It’s hard to put it into words, but I did. Amazing. How did I do it? I don’t know. So here we go. It’s hard to be humble when you can put things into words like this. So here we go. Let me just read the words I wrote down last night. There might not be another human in this world that appreciates the profound and emotional description you just gave about landlords. I’m speechless. All right, Thrive Nation, we are here today joined with the man with a plan to host The Most. The guy that almost makes you cry when he talks to you about real estate. It is Michael. There is no real estate topic to obscure Bure. We are talking about a topic called lease. We are talking about this word called lease. Now, I am going to go ahead and read the definition and he is going to bring a little bit of clarity, some context from his career as a CFO of a billion dollar real estate company and a one heck of a low post basketball player. So let me go ahead and read it off to you here. A contract that creates the relationship of landlord and tenant. A contractually binding agreement that grants a right to exclusive possession or use of property usually in return for a periodic payment called rent. My friend, what does that mean? Well, it’s simply the agreement between the building owner and the tenant regarding the space. And so it’s going to cover a variety of terms, but most often, what are you going to pay for the space? How long do you have access to the space? What can you do in the space? And there’s a lot of other clauses that could be involved. I have a little confession I’d like to make here. Thrive is sort of a therapy for me. Sometimes I just share things I would never share with anyone, and I just share it with thousands of people. So here’s something I want to share. Years ago, we leased some space in Tulsa. Other wedding vendors would say, hey, I want to be there too. And I would say, sure, you want to be here? This is how much it costs a month. They said, sure, I’ll pay that much per month. So they said, how much is it per month? And I said, well, I pay $7,000 a month, so for you it’s going to be $1,500 a month. Plus, I’m going to refer you all the time. It’s going to be great. There’s that synergy. Brides are coming in to see you. Event planners are coming in to see you. They’re coming in to see me. This is a great thing, synergy, there’s an energy in the middle. Feeling good, right? I’m feeling it. But then, you know, my wife, my wife who’s so incredible and hot and smart and just hot, but she says, hey, maybe we should have them sign a lease agreement. And I’m like, my word is my bond. What would I need to do? I’m not going to mess with a broker. I’m just going to handshake, write it on paper, I agree, you agree, let’s do this thing called a lease verbally. My wife says, I don’t know if that’s a good idea. I said, baby, I have it under control. Well, first guy doesn’t pay me, second guy doesn’t pay me, third guy’s like, I want to pay you, but I’m going through a thing, got this thing going on right now with this girl, but there’s this thing going on with this dude, and I got this thing. Anyway… That’s right, yeah, a written agreement. Yeah, so talk to me about why do you need a lease? And when you have a lease, how enforceable is that thing? Well, as a tenant or the landlord, you both want the agreement in writing, so you know exactly what your obligations and your rights are. Yeah. And it’s very enforceable. It’s a contract, and you go to court, and you can get forms that are kind of pre-approved or standard in your area by your local real estate organization that will spell out all the kind of terms that you want to consider as you negotiate this document. So not just rent, how much you’re paying, or the length of the lease, but all the other kind of terms that you would want to consider as you negotiate this document with your landlord. I feel like it makes sense to pay whatever you might pay to a broker to help you through this process. I believe that. But you agree or am I wrong? As a tenant, brokers can help you a lot in finding the right space, educating you about the market, what you should be paying, and then ultimately negotiating with your landlord. So there’s a lot of benefits to having a broker. Let’s say that I own one property and I’ve got an extra 2,000 square feet I want to lease out and I am NOT the CFO of a billion-dollar real estate company. Let’s just say I’m not. Let’s say I’m not. I mean, this doesn’t pertain to you, but other people. Would you recommend me hire a broker just to help me get the initial agreement set up? Or do you think you should just go to Office Depot, find a standard agreement, hit print, boom, you’re good? There’s a lot of benefits to having a broker if you’re going to be marketing the space. If you have a vacancy, they’re going to be making sure it’s out in front of potential tenants. So a lot of benefits to always have a broker involved. Even if you’re going to use a form agreement later on, they can help you understand what’s a market term, what are the market terms. Your wife is an incredible lady and my wife’s an incredible lady. I was just kind of trying to figure it out, how we’re related or potentially related. It’s very complicated and I don’t know. Right about the time I started to almost figure it out, I just stopped. But I do know that both of our wives appreciate eating healthy. And so I wrote this one here, this little note of appreciation for your wife and my wife. It’s kind of a way to weave in that healthy lifestyle they’re trying to get us on. So here we go. Michael, I appreciate you much in the same way that I appreciate organic coconut milk with my cookies. Coconut milk, they get the milk out of a coconut. It’s amazing JT you know what time it is 14 it’s It’s Tivo time and talk to him, baby Tim Tebow is coming to Tulsa, Oklahoma June 27th and 28th. We’ve been doing business conferences here since 2005 I’ve been hosting business conferences since 2005 what year were you born? 1995 dude I’ve been hosting business conferences since you were 10 years old, but I’ve never had the two-time Heisman Award winning Tim Tebow come present, and a lot of people, you know, have followed Tim Tebow’s football career on the field and off the field, and off the field the guy’s been just as successful as he has been on the field. Now the big question is, JT, how does he do it? Hmm, well, they’re gonna have to come and find out because I don’t know. Well, I’m just saying, Tim Tebow is going to teach us how he organizes his day, how he organizes his life, how he’s proactive with his faith, his family, his finances. He’s going to walk us through his mindset that he brings into the gym, into business. It is going to be a blasty blast in Tulsa, Russia. Also, this is the first Thrive Time Show event that we’ve had where we’re going to have a man who has built a $100 million net worth. Wow. Now, we’ve had a couple of presenters that have had a billion dollar net worth in some real estate sort of things. But this is the first time we’ve had a guy who’s built a service business, and he’s built over a $100 million net worth in the service business. It’s the yacht driving, multi-state living guru of franchising. Peter Taunton will be in the house. This is the founder of Snap Fitness, the guy behind 9 Round Boxing. He’s going to be here in Tulsa, Russel, Oklahoma, June 27th and 28th. JT, why should everybody want to hear what Peter Taunton has to say? Oh, because he’s incredible. He’s just a fountain of knowledge. He is awesome. He has inspired me listening to him talk, and not only that, he also practices what he teaches, so he’s a real teacher. He’s not a fake teacher like business school teachers. So you got to come learn from him. Also, let me tell you this, folks. I don’t want to get this wrong, because if I get it wrong, someone’s going to say, you screwed that up, buddy. So Michael Levine, this is Michael Levine. He’s going to be coming. He said, who’s Michael Levine? I don’t get this wrong. This is the PR consultant of choice for Michael Jackson, for Prince, for Nike, for Charlton Heston, for Nancy Kerrigan, 34 Grammy Award winners, 43 New York Times bestselling authors he’s represented, including pretty much everybody you know who’s been a super celebrity. This is Michael Levine, a good friend of mine. He’s going to come and talk to you about personal branding and the mindset needed to be super successful. The lineup will continue to grow. We have hit Christian reporting artist Colton Dixon in the house. Now people say, Colton Dixon’s in the house? Yes! Colton Dixon’s in the house. So if you like Top 40 Christian music, Colton Dixon’s going to be in the house performing. The lineup will continue to grow each and every day. We’re going to add more and more speakers to this all-star lineup, but I encourage everybody out there today, get those tickets today. Go to Thrivetimeshow.com. Again, that’s Thrivetimeshow.com. And some people might be saying, well, how do I do it? What do I do? How does it work? You just go to Thrivetimeshow.com. Let’s go there now. We’re feeling the flow. We’re going to Thrivetimeshow.com. Thrivetimeshow.com. Again, you just go to ThriveTimeShow.com. You click on the Business Conferences button, and you click on the Request Tickets button right there. The way I do our conferences is we tell people it’s $250 to get a ticket or whatever price that you can afford. And the reason why I do that is I grew up without money. JT, you’re in the process of building a super successful company. Did you start out with a million dollars in a bank account? No, I did not. Nope, did not get any loans, nothing like that. Did not get an inheritance from parents or anything like that. I had to work for it. And I am super grateful I came to a business conference. That’s actually how I met you, met Peter Taunton. I met all these people. So if you’re out there today and you want to come to our workshop, again, you just got to go to thrivetimeshow.com. You might say, well, when’s it going to be? June 27 and 28. You might say, well, who’s speaking? We already covered that. You might say, where is it going to be? It’s going to be in Tulsa, Russell Oklahoma. I suppose it’s Tulsa, Russell. I’m really trying to rebrand Tulsa as Tulsa, Russell, sort of like the Jerusalem of America. But if you type in Thrive Time Show and Jinx, you can get a sneak peek or a look at our office facility. This is what it looks like. This is where you’re headed. It’s going to be a blasty blast. You can look inside, see the facility. We’re going to have hundreds of entrepreneurs here. It is going to be packed. Now for this particular event, folks, the seating is always limited because my facility isn’t a limitless convention center. You’re coming to my actual home office. And so it’s going to be packed. So when? June 27th and 28th. Who? You! You’re going to come! I’m talking to you. You can get your tickets right now at Thrivetimeshow.com. And again, you can name your price. We tell people it’s $250 or whatever price you can afford. And we do have some select VIP tickets, which gives you an access to meet some of the speakers and those sorts of things. And those tickets are $500. It’s a two-day interactive business workshop, over 20 hours of business training. We’re gonna give you a copy of my newest book, The Millionaire’s Guide to Becoming Sustainably Rich. You’re gonna leave with a workbook. You’re gonna leave with everything you need to know to start and grow a super successful company. It’s practical, it’s actionable, and it’s TiVo time right here in Tulsa, Russia. Get those tickets today at Thrivetimeshow.com. Again, that’s Thrivetimeshow.com. Hello, I’m Michael Levine, and I’m talking to you right now from the center of Hollywood, California, where I have represented, over the last 35 years, 58 Academy Award winners, 34 Grammy Award winners, 43 New York Times bestsellers. I’ve represented a lot of major stars and I’ve worked with a lot of major companies and I think I’ve learned a few things about what makes them work and what makes them not work. Now, why would a man living in Hollywood, California in the beautiful sunny weather of LA come to Tulsa? Because last year I did it and it was damn exciting. Clay Clark has put together an exceptional presentation, really life-changing and I’m looking forward to seeing you then. I’m Michael Levine, I’ll see you in Tulsa. James, did I tell you my good friend John Lee Dumas is also joining us at the in-person two-day interactive Thrive Time Show Business Workshop. That Tim Tebow and that Michael Levine will be on. Have I told you this? You have not told me that. Oh, he’s coming all the way from Puerto Rico. This is John Lee Dumas, the host of the chart-topping EOFire.com podcast. He’s absolutely a living legend. This guy started a podcast after wrapping up his service in the United States military, and he started recording this podcast daily in his home to the point where he started interviewing big time folks like Gary Vaynerchuk, like Tony Robbins, and he just kept interviewing bigger and bigger names, putting up shows day after day. And now he is the legendary host of the EO Fire podcast, and he’s traveled all the way from Puerto Rico to Tulsa, Oklahoma to attend the in-person June 27th and 28th Thrive Time Show two-day interactive business workshop. If you’re out there today folks, if you’ve ever wanted to grow a podcast, a broadcast, you want to improve your marketing, if you’ve ever wanted to improve your marketing, your branding, if you’ve ever wanted to increase your sales, you want to come to the two day interactive June 27th and 28th Thrive Time Show Business Workshop featuring Tim Tebow, Michael Levine, John Lee Dumas, and countless big time super successful entrepreneurs. It’s going to be life changing. Get your tickets right now at ThriveTimeShow.com. James, what website is that? ThriveTimeShow.com. James, one more time for the Ford Enthusiasts. ThriveTimeShow.com. I’m not to be played with because it could get dangerous. See these people I ride with this moment. We are we. Thrive Time Show two day interactive business workshops are the world’s highest rated and most reviewed business workshops. Because we teach you what you need to know to grow. You can learn the proven 13-point business system that Dr. Zellner and I have used over and over to start and grow successful companies. When we get into the specifics, the specific steps on what you need to do to optimize your website, we’re going to teach you how to fix your conversion rate. We’re going to teach you how to do a social media marketing campaign that works. How do you raise capital? How do you get a small business loan? We teach you everything you need to know here during a two-day, 15-hour workshop. It’s all here for you. You work every day in your business, but for two days you can escape and work on your business and build these proven systems so now you can have a successful company that will produce both the time freedom and the financial freedom that you deserve. You’re going to leave energized, motivated, but you’re also going to leave empowered. The reason why I built these workshops is because as an entrepreneur I always wish that I had this and because there wasn’t anything like this I would go to these Motivational seminars no money down real estate Ponzi scheme get motivated seminars, and they would never teach me anything It was like you went there, and you paid for the big chocolate Easter Bunny, but inside of it. It was a hollow Nothingness, and I wanted the knowledge you’re like oh But we’ll teach you the knowledge after our next workshop And the great thing is we have nothing to upsell. At every workshop, we teach you what you need to know. There’s no one in the back of the room trying to sell you some next big get-rich-quick, walk-on-hot-coals product. It’s literally, we teach you the brass tacks, the specific stuff that you need to know to learn how to start and grow a business. I encourage you to not believe what I’m saying, but I want you to Google the Z66 auto auction. I want you to Google elephant in the room. Look at Robert Zellner and Associates. Look them up and say, are they successful because they’re geniuses, or are they successful because they have a proven system? When you do that research, you will discover that the same systems that we use in our own business can be used in your business. Come to Tulsa, book a ticket, and I guarantee you it’s going to be the best business workshop ever. And we’re going to give you your money back if you don’t love it. We’ve built this facility for you and we’re excited to see it. And now you may be thinking, what does it actually cost to attend an in-person, two-day, interactive, Thrive Time Show business workshop? Well, good news, the tickets are $250 or whatever price that you can afford. What? Yes, they’re $250 or whatever price you can afford. I grew up without money and I know what it’s like to live without money. So if you’re out there today and you want to attend our in-person, two-day, interactive business workshop, all you got to do is go to Thrivetimeshow.com to request those tickets. And if you can’t afford $250, we have scholarship pricing available to make it affordable for you. I learned at the Academy at Kings Point in New York, octa non verba. Watch what a person does, not what they say. Good morning. Good morning. Good morning. Harvard Kiyosaki, The Rich Dad Radio Show. Today, I’m broadcasting from Phoenix, Arizona, not Scottsdale, Arizona. They’re close, but they’re completely different worlds. And of our special guests today, definition of intelligence is if you agree with me, you’re intelligent. And so this gentleman is very intelligent. I’ve done this show before also, but very seldom do you find somebody who lines up on all counts. And so Mr. Clay Clark is a friend of a good friend, Eric, Eric Trump. But we’re also talking about money, bricks and how screwed up the world can get in a few and a half hour. So Clay Clark is a very intelligent man. And there’s so many ways we could take this thing but I thought since you and Eric are close, Trump, what were you saying about what Trump can’t what Donald who’s my age and I can say or cannot say. Well I have to first of all I have to honor you sir I want to show you what I did to one of your books here there’s a guy named Jeremy Thorne who was my boss at the time I was 19 years old working at Faith Highway I had a job at Applebee’s, Target, and DirecTV. And he said, have you read this book, Rich Dad, Poor Dad? And I said, no. And my father, may he rest in peace, he didn’t know these financial principles. So I started reading all of your books and really devouring your books. And I went from being an employee to self-employed, to the business owner, to the investor. And I owe a lot of that to you. And I just wanted to take a moment to tell you thank you so much for allowing me to achieve success. And I’ll tell you all about Eric Trump. I just want to tell you, thank you, sir, for changing my life. Well, not only that, Clay, you know, thank you, but you’ve become an influencer. You know, more than anything else, you’ve evolved into an influencer where your word has more and more power. So that’s why I congratulate you on becoming. Because as you know, there’s a lot of fake influencers out there too, or bad influencers. Yeah. Anyway, I’m glad you and I agree so much, and thanks for reading my books. Yeah. That’s the greatest thrill for me today. Not a thrill, but recognition is when people, young men especially, come up and say, I read your book, changed my life, I’m doing this, I’m doing this, I’m doing this. I learned at the Academy, King’s Point in New York, acta non verba, watch what a person does, not what they say. Hey, I’m Ryan Wimpy. I’m originally from Tulsa, born and raised here. I went to a small private liberal arts college and got a degree in business, and I didn’t learn anything like they’re teaching here. I didn’t learn linear workflows. I learned stuff that I’m not using and I haven’t been for the last nine years. So what they’re teaching here is actually way better than what I got at business school. And I went what was actually ranked as a very good business school. The linear workflow, the linear workflow for us in getting everything out on paper and documented is really important. We have workflows that are kind of all over the place. So having linear workflow and seeing that mapped out on multiple different boards is pretty awesome. That’s really helpful for me. The atmosphere here is awesome. I definitely just stared at the walls figuring out how to make my facility look like this place. This place rocks. It’s invigorating. The walls are super, it’s just very cool. The atmosphere is cool. The people are nice. It’s a pretty cool place to be. Very good learning atmosphere. I literally want to and steal everything that’s here at this facility, and basically create it just on our business side. What was your first impression of the conference? Once I saw what they were doing, I knew I had to get here at the conference. This is probably the best conference or seminar I’ve ever been to in over 30 years of business. You’re not bored. You’re awake, alive the whole time. It’s not pushy. It’ll try to tell you a bunch of things. I was looking to learn how to just get control of my life, my schedule, and just get control of business. Planning your time, breaking it all down, making time for the F6 in your life, and just really implementing it and sticking with the program. It’s really lively, they’re pretty friendly, helpful, and very welcoming. I attended a conference a couple months back, and it was really the best business conference I’ve ever attended. At the workshop I learned a lot about time management, really prioritizing what’s the most important. The biggest takeaways are you want to take a step-by-step approach to your business, whether it’s marketing, what are those three marketing tools that you want to use, to human resources. Some of the most successful people and successful businesses in this town, their owners were here today because they wanted to know more from Clay and I found that to be kind of fascinating. The most valuable thing that I’ve learned is diligence. That businesses don’t change overnight. It takes time and effort and you’ve got to go through the ups and downs of getting it to where you want to go. He actually gives you the road map out. I was stuck, didn’t know what to do and he gave me the road map out step by step. We’ve set up systems in the business that make my life much easier, allow me some time freedom. Here you can ask any question you want, they guarantee it will be answered. This conference motivates me and also gives me a lot of knowledge and tools. It’s up to you to do it. Everybody can do these things, they’re stuff that everybody knows, but if you don’t do it, nobody else is going to do it for you. I can see the marketing working. It’s just an approach that makes sense. Probably the most notable thing is just the income increase that we’ve had. Everyone’s super fun and super motivating. I’ve been here before, but I’m back again because it motivates me. Your competition’s going to come eventually or try to pick up these tactics. So you better, if you don’t, somebody else will. I’m Rachel with Tip Top K9, and we just want to give a huge thank you to Clay and Vanessa Clark. Hey guys, I’m Ryan with Tip Top K9. Just want to say a big thank you to Thrive 15. Thank you to Make Your Life Epic. We love you guys, we appreciate you and really just appreciate how far you’ve taken us. This is our old house. This is where we used to live two years ago. This is our old team and by team I mean it’s me and another guy. This is our new house with our new neighborhood. This is our new van with our new marketing and this is our new team. We went from four to fourteen and I took this beautiful photo. We worked with several different business coaches in the past and they were all about helping Ryan sell better and just teaching sales, which is awesome, but Ryan is a really great salesman. So we didn’t need that. We needed somebody to help us get everything that was in his head out into systems, into manuals and scripts and actually build a team. So now that we have systems in place, we’ve gone from one to ten locations in only a year. In October 2016, we grossed 13 grand for the whole month. Right now it’s 2018, the month of October. It’s only the 22nd, we’ve already grossed a little over 50 grand for the whole month and we still have time to go. We’re just thankful for you, thankful for Thrive and your mentorship and we’re really thankful that you guys have helped us to grow a business that we run now instead of the business running us. Just thank you, thank you, thank you, times a thousand. So we really just want to thank you, Clay, and thank you, Vanessa, for everything you’ve done, everything you’ve helped us with. We love you guys. If you decide to not attend the Thrive Time workshop, you’re missing out on a great opportunity. The atmosphere at Clay’s office is very lively. You can feel the energy as soon as you walk through the door. And it really got me and my team very excited. If you decide not to come, you’re missing out on an opportunity to grow your business. Bottom line. Love the environment. I love the way that Clay presents and teaches. It’s a way that not only allows me to comprehend what’s going on, but he explains it in a way to where it just makes sense. The SEO optimization, branding, marketing. I’ve learned more in the last two days than I have the entire four years of college. The most valuable thing that I’ve learned, marketing is key, marketing is everything. Making sure that you’re branded accurately and clearly. How to grow a business using Google reviews and then just how to optimize our name through our website also. Helpful with a lot of marketing, search engine optimization, helping us really rank high in Google. The biggest thing I needed to learn was how to build my foundation, how to systemize everything and optimize everything, build my SEO. How to become more organized, more efficient. How to make sure the business is really there to serve me as opposed to me constantly being there for the business. New ways of advertising my business as well as recruiting new employees. Group interviews, number one. Before we felt like we were held hostage by our employees. Group interviews completely eliminates that because you’re able to really find the people that would really be the best fit. Hands-on how to hire people, how to deal with human resources, a lot about marketing and overall just how to structure the business, how it works for me and also then how that can translate into working better for my clients. The most valuable thing I’ve learned here is time management. I like the one hour of doing your business is real critical if I’m going to grow and change. Play really teaches you how to navigate through those things and not only find freedom, but find your purpose in your business and find the purposes for all those other people that directly affect your business as well. Everybody. Everybody. Everyone. Everyone needs to attend the conference because you get an opportunity to see that it’s real. Everyone needs to attend the conference because you get an opportunity to see that it’s real. attend the conference because you get an opportunity to see that it’s real.