Entrepreneur | Part 6 – Real Estate Terms With Michael Burer

Audio Transcription

Get ready to enter the Thrive Time 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 too, kid, what we got coming. 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’mma dive. So if you see my wife and kids, please tell them hi. It’s C and Z up on your radio. And now three, two, one, here we go! Started from the bottom, now we here. Started from the bottom, and that’s what we gotta do. All right, Thrivers. Not survivors, but Thrivers. People who have decided to move beyond surviving. I am joined today, here with Michael. There is no real estate topic too obscure, Bure at our undisclosed location here in sunny San Diego, the birthplace of Ron Burgundy. And we are talking today about net operating income. I’m going to read the definition and he’s going to provide us an ample example as to what this means, hopefully in a third grade level that my mind can handle. So here we go. The potential rental income plus other income, less vacancy, credit losses, and operating expenses. One more time because I was just choked up. The potential rental income plus other income, less vacancy, credit losses, and operating expenses. What does this mean, my friend? So this is basically the operating income before debt service. So you have your revenue from the building, all the sources of the tenants paying rent, less the expenses, the cost to maintain the building, insurance, taxes, repairs, maintenance. That will get you your net operating income. I feel like, because I worked in the commercial real estate industry for a while as a marketing guy, so I never signed leases or signed deals or really did anything that violated the laws of the real estate board people. But what I did was I worked with a guy who was a broker. And I heard all the time people are like, hey, what’s the NOI on that thing? What’s the NOI on that thing? What’s the NOI? And the whole time I’m like, what are they talking about? How often is this term NOI, is this talked about in your industry? A lot. I mean, NOI is what determines, is a key part of determining a building’s value. Typically when you’re talking to someone who’s in the know, do they usually say NOI or do they say Net Operating Income? Do people a lot of times throw it out there, NOI? NOI, definitely. You hear those acronyms quite a bit. Is there a lot of jargon in your industry on a day-to-day basis? There is, sure. Really? And in any industry there is, and I want you guys to know, Thrivers, as you’re watching this, it’s really important that you learn these terms because if not, it’s hard to participate in a conversation if you have no idea the vocabulary or the language that’s being spoken. But I want to know from your perspective, when typically does NOI get brought up? Is it brought up when you’re calling to buy a property? It gets discussed when you’re valuing a building. Maybe you’re going in trying to get a loan on the building. The banker or the lender is going to say, what’s the NOI on the building? What’s the income stream that’s being produced from the building that can be used to repay this loan? I want to appreciate you for being here. And it’s hard because a lot of times you’re like, how am I going to do that? And a lot of times I’m like, I don’t know how I’m going to do it. But that’s not now. Right now, I know how I’m going to do it. I’m just going to say it from the bottom of my heart, from the bottom of my soul, from just my bottom. He said I was trying to get his back in black. And we’re trying to get it. I’m glad you didn’t finish that one. Second, thriving, holding direction. OK, I was going to say aorta, but I can’t do that. I laughed too hard. All right, Michael, you know, at the end of each one of these episodes, I try to find a way to share my appreciation with you. And so I wrote this little, I wouldn’t call it a poem. I would call it more of a lyrical miracle. I just want to read this to you. From the bottom of my heart and from the bottom of my soul, I appreciate you talking about net operating income. Beautiful. Proof. you talking about net operating income. Beautiful. Proof. here with Michael. There is no real estate topic to obscure Burer talking with you about this topic of occupancy cost. And we’re going to have a little fun with this. I’m going to read the definition. He’s going to tell us what it means. If I have any questions, I’m going to ask him. If you have any questions, you can hit the little button right there where you can ask some more questions and we’ll give you those answers. So here we go. The actual dollars paid out by the tenant to occupy the space. It can be expressed in either pre-tax or after-tax dollars. What is occupancy cost, my friend? Occupancy cost is what the tenant is going to ultimately have to pay to lease that space. So you may have a landlord who says, hey, your rent is only $1,000 a month, and you may think that’s a great deal. But it’s important to, when you consider that, what are all the other costs that are going to be associated with leasing that space? It could include, you’re going to have to pay insurance, you’re going to have to pay electricity, maybe you’re going to be responsible to clean the space, a janitorial. A tenant wants to factor all of those in to determine the total occupancy cost of that lease. So if you’re thinking about leasing a space and they tell you it’s a thousand hours a month, again just to review, you’ve got to be thinking about what’s it going to cost to insure this building, what’s it going to cost for electricity, cleaning, landscaping, there’s just a lot of things you want to factor in before you know what it truly costs you. That’s right. And you can sometimes negotiate for the landlord to pick some of those costs up. I feel like a lot of times in business, I meet a lot of business owners, in particular I met one lady in Austin, Texas years ago. And this lady, it was sort of a bad deal. But we won’t, it’s not mocking, we’re just encouraging, we’re trying to teach. Mentorship is all about a pain-free way to learn. But she had leased a space and thought, well, it’s only going to be $2,000 a month. She was in the medical industry. But she didn’t think about all of these costs. I remember talking to her, and she’s like, my break-even point’s two times higher than I thought it would be. And it doesn’t matter what industry you’re in. You have to take the time to do this. And this will bite you if you don’t think about it, right? That’s right. That’s why it’s so important that you read and understand your lease before you agree to it. Would you recommend using a broker? I think it’s really important to use a broker and or possibly an attorney to review a lease. Why do people sometimes not use a broker? Maybe the landlord may say, hey, I’ll charge you less if you don’t use a broker. They may think that they understand the market or the lease themselves. But it’s important when you’re entering into a lease, which is a contract, for maybe a longer period of time, two, three, five years at a time. It’s important to get some good advice on what that total cost is going to be. If I were to hire a balloon artist to make a replica of you it wouldn’t truly demonstrate how much I appreciate you. Alright Thrivers, we are here today with Michael. There is no real estate topic to obscure Bure. We’re coming in hot. We are talking about this topic of percentage lease. How are we coming in hot? Because we’re in San Diego where the weather is always what mid-70s, 80s? Perfect. It’s warm, it’s Diego it’s like it’s like heaven. Don’t tell anyone about it here. Okay, I won’t it’s drivers if you’re watching this don’t click the share button on this one And we’re gonna read off the definition of this word here percentage lease and he’s gonna describe for us what it means So here we go a lease in which the rent amount is based on a percentage of gross sales made by the tenant. Sounds weird. What is it? So this is most often in a retail lease. A lease in a shopping center or some kind of retail establishment. This is where the landlord gets paid not just rent, a fixed amount every month, but they also get paid a percentage of the revenue from the business. What would be an example? Let’s say I owned a company that does, I bring this up because I don’t understand how this business model even works. Let’s say that I have a hair salon. Next to me there’s a store that does a shoe repair. Have you seen a shoe repair store? Sure. How many shoes do you have to repair to stay in business? I don’t understand how that works. But you have a shoe repair business, you got a tailor, you got those kind of shopping centers. Everybody watching this knows what I’m talking about. Those kinds of businesses are all together. You’re saying that the landlord would get a percentage of the sales of the tailor and of any business that’s in that shopping center if he agreed to this? If they set it up as a percentage lease. Is this common? It’s fairly common, especially in restaurant leases. Oh, really? And it’s a way for a tenant to have a lower, maybe, initial lease. So their outlay, their risk, their monthly nut on the downside is smaller. But the upside, the landlord basically is getting to participate. And so typically, they would get a percentage over a certain breakpoint. So they say, when my sales get to $100,000, beyond that, I’m going to give the landlord 5%. I know of an Italian restaurant where I met the owner. He’s a franchise. And he had said he started off and the lease payments were going to be astronomical. I mean, it was going to be, in his mind, it was, and this is all comparative, but he was going, it’s going to be like 15,000 a month, this huge space. Oh no. Well, the owner of the building had the space, it was already built out from a previous Italian restaurant that had gone out of business. And his thought was, I’ll come in there, utilize the kitchen and a lot of the fixed assets that are in the space, and I’ll be able to open up my own restaurant with a new logo, new name, new brand, new service, new food, and I’ll be able to make a killing. But he’s like, only if you lease it to me at a lower cost to start, and then we’ll do a percentage lease, so as my company grows, you’ll make more money. And it’s done well that way, so it’s kind of fun to see that. That’s one way you can be creative thrivers if you’re watching this and you can’t afford to pay a big monthly lease. Is that right? Yep. If the landlord believes in your concept, it’s a great way to get in on the ground floor with a smaller initial rent payment. Michael, even if I took this room and I filled the room with those those purple brand-new and the brand-new the really futuristic kind with purple lava lamps I don’t want to be in a room with you with lava lamps. Well, that’s that’s a different episode, okay? But if I did, that would not even, even that act of kindness would not adequately show my appreciation for you. Boom. Hello, Thrivers. We are here in sunny San Diego. Some people who are in the know just call it SD. You know those people? I do. Okay. We’re here in the SD, in sunny SD, talking with our fabulous friend, a guy who is near and dear to our hearts. It’s Michael. There is no real estate topic to obscure Bure about this topic of potential rental income. I’m going to read the definition and he’s going to come back and tell us what it means, give us some clarity, give us some specific nuances as to what this means. So here we go. The total amount of rental income for a property if it were 100% occupied and rented at a competitive market rates. Rented at competitive market rates. Let me read it one more time. The total amount of rental income for a property if it were 100% occupied and rented at competitive market rates, even if airplanes were flying above. So this simply is, for example, if you have a building, maybe you’re thinking about buying it, it’s only 60% occupied, and that produces, whatever, $100,000 in revenue. But you should look as a potential investor at what is the potential revenue this building could generate if it was 100% occupied. Based on the market rents, the amount of available space you have, what’s the total gross potential revenue that this building could generate? I feel like now, and when Raxton Fierce and I worked in real estate together for years, I did marketing and he did all the transactions. He was a broker. I just helped come up top and Google and made the phone ring a little bit. But we did about $23.5 million of leases over a couple year window of time. And one of the things that was interesting is you noticed a lot of landlords who are trying to sell a property, a lot of property owners who are trying to sell the property, were pretty optimistic. A lot of blue sky. A lot of hope about the potential rental income. They talk about it, they’d say, well this property currently only generates a million dollars a year but it could generate three if you put a little paint here, you put a little this here, you put a little… Do you see this a lot where people are trying to sell a property, try to really hype up the potential rental income? You’re right, so on the sales side this is something that the seller would probably be focused more on. It’s important to often subtract from this number a market vacancy. So it’s not really relevant to talk about a 100% occupied building if the market vacancy, the average vacancy in that market for similar buildings is say 20%. Really? Then you wouldn’t want to really be buying a building off of that potential income stream if the whole market’s not above 80%. As a CFO of a billion-dollar real estate company, do you have sort of like a checklist that you go through for each property before you buy it of all these kinds of things, or do you just off the top of your head know of all these things? You’ve got to go through a detailed checklist and underwriting before you buy a building. Really? I just, as an example, how big is that checklist? How many pages is that big thing? Some of it is we actually have a checklist, and some of it is just kind of customary things we go through, but several pages. Really? Now how much time do you spend on the due diligence side of buying a property, looking at things like the potential rental income before you buy something, versus how much time are you actually just getting it done? I mean, is it like most of the time is spent doing that due diligence? Due diligence on the front end is key to a successful real estate deal. Knowing what you’re buying. You know, often said that you make your money on the buy. And so you’ve got to know what you buy, and that’s all through the Duda Lipson special. Well, Michael, I appreciate you being here and talking to us, despite the aviation that’s flying over. I mean, it’s tough. San Diego, I mean, you have beautiful weather. You have planes flying over all the time. It’s a tough climate for which to really talk about these kind of things. But I wanted to share with you how much I appreciate you. And I thought last night, I thought the only way I could do it would be to give you my David Robinson starting lineup. Like the actual, you know, it’s still in the case. I haven’t taken it out. It’s just in the packaging, you know. And I thought, well, that’s too much. So I’m not going to do that. But if I could just… What’s the next best thing? Well, I just want to give you this pin, this paradisepoint.com pin. I appreciate it. Woo hoo! All right, my name is Clay Clark, your humble host, and I’m here with Michael. There is no real estate topic to obscure viewer. Talking about a topic that you’re excited about because you’ve clicked this or it’s something you know you need to know. Either way, we’re going to give you the answers that you need to know to make your business grow. We’re talking about principal. I’m going to read the definition, and then I’d like for you to go ahead and share with us what it means. Principle, the portion of a loan payment used towards reducing the original loan amount. So when you are a borrower, you have a loan that you owe money on, you’re going to make monthly payments. And that’s going to be comprised of two things, an interest portion, which is the lender’s profit on that loan. And then the principle, which is the repayment of the loan or how the loan gets repaid. I know we’re in a time right now in 2014 where interest rates are super low. I also know back in the 70s when Jimmy Carter was president interest rates were like 18%, 19%, 16% so it’s hard to answer this but typically I think people pay a lot more interest on a loan than what they are aware of. Yeah I mean if you don’t look at it, it’s very possible. I think it’s like most people when they buy a house or a property they don’t realize they might, in theory, pay for the property one and a half times if put after interest. Or more. Or more. In your world, do you focus a lot on the principle? Do you focus on that kind of thing or do you focus more on the cash flow when you’re buying a building? In the commercial real estate world, do you focus on the cash flow and how much money comes in versus how much goes out? Or do you focus on concepts like the principle more. How does it all fit in? It all depends on the investment objectives of the investor. But cash flow can be important. The risk of the asset can be important. But all of that can factor into what the right investment is. But the principle is important to look at. How much am I going to repay this loan over the loan term? How much is going to be owed at the maturity date of the loan. Now you’re a grammatically incredible. You went to Boston College, is that right? Mm-hmm. And you graduated from there. You also have your MBA, is that true? Mm-hmm. Where’s your MBA from? University of San Diego. And you also have another degree too. What’s your other degree in? A law degree. Really? That’s a lot of degrees. You have a degree in black belt, karate. Absolutely. Okay. Well here’s the other thing. The word principal, is this the same word that the principal’s office? Like if you get in trouble as a kid? You don’t want to go to that principal’s office. Have you ever been to the principal’s office? That’s a long time ago. I choose not to talk about that. Final thing I want to ask you, not that you’ve ever gone there, but I want you to know this because I think it’s important for the Thrivers to know where we’ve come from. Back when I went to school, the principal could literally beat you. I’m not making that up. I can get whacked with a thing. I remember Mr. Blackburn, you go in there, bam, he would hit you with the thing. Could you do that in San Diego or was that just crazy laws we had where I grew up? You can’t hit no marks. Really? If there’s no marks you can do it. All right. I was just curious. Okay. But anyway, anything that I just said is 100% true. It really did happen, Mr. Blackburn. And I ain’t mad at you. He beat it out of me. So, but here, I’m going to go ahead and I want to share with you how much I appreciate you. And it’s hard. It’s a burden I bear. But I wanted to read this to you and see if it matters to you. If I wanted to adequately show you how much I appreciated you, I would put you on the next U.S. Olympic curling team, and I would give you a gold medal. I’ll take the gold. Boom. Boom. All right, survivors. Today we are talking with a man that we can trust about a topic of big interest to you and me, a topic called real estate investment trusts. We are joined here with Michael. There is no real estate topic to obscure Bjerke to talk about this topic of real estate investment trusts, also known as REITs. Do you call them REITs? REITs, yeah. Really, you do? All the other ones, you can’t say them? You got to say, you have to say R-E-I-T for every other type of abbreviation. That’s what you can say. Who makes these rules? It rolls off the tongue. It rolls off the tongue. REITs. All right, so we’re talking about REITs. So here we go. The definition of a REIT is an investment vehicle in which investors purchase certificates of ownership in the trust, which in turn invests the money in real property and then distributes any profits to the investors. The trust is not subject to the corporate income tax as long as it complies with the tax requirements for a REIT. Shareholders must include their share of the REIT income, the REIT’s income, in their personal tax returns. Sounds exciting, sounds memorable. What are we talking about? So a REIT was created through designation in the tax code. Normally a company pays corporate income tax, and then they would distribute out their profits as dividends, and those would be taxed as dividends for the individual investors. A REIT does not pay taxes, but has to follow certain rules, and those include distributing usually 90% of their net income out to the owners of the company, and then those individuals would report that income on their income tax returns and pay the tax. So basically it’s a way to invest in real estate for a company and they don’t pay corporate income tax. Well overhead it might be your jet or just a San Diego airplane vehicle of some kind that’s flying over. I apologize for the distraction but let’s still just try to stay focused here. I want to ask you this here. I want the program observer to put a diagram on the screen. Let’s say that I’m a dude and I’m 25 and I’ve got $10,000 saved. And I know 10 other dudes who have $10,000 saved. And we say, let’s go in together and form a REIT. And we’re going to go out there and invest in properties together. Because the $100,000 that we each have, or the $10,000 we each have, that’ll add up to $100,000 down. And we can go out together and maybe purchase a small oil strip center or something. Is that when you’d form a REIT? No. The rules for a REIT are pretty complex and it’s pretty costly to form a REIT. Really? So usually large companies would do it. You can have a private REIT or most common you can have a public REIT. In a public REIT you would be traded on a stock market and an individual investor could buy shares in that stock just like you would buy shares in General Motors or Microsoft you could buy shares in a in a company that owned for example office buildings in California So you couldn’t just you shouldn’t a bunch of dudes get together in former reeks. That’s expensive Yeah, so what how big does the fund need to be before it makes sense? You know very big I mean needs to be a big pretty 50 million Yeah, you know there are just certainly smaller REITs, but most REITs are very big, multiple billion dollar REITs. 3 million. Too small. 100 million? Yeah. At what point does it make sense? 7 million? It kind of depends on the growth prospects and what the business plan is, but usually the bigger the better because the costs are not insignificant. But for an individual investor, owning a REIT is a great way to diversify. If I was going to buy $10,000 and want to invest in real estate, I could maybe go out and buy a single family home or a small strip center. But with $10,000, I can buy a REIT and own a little bit of a lot of buildings all over the country. And that diversification should lower your risk. And all joking aside, how big does it need to be before I should even consider a REIT? I met a guy the other day, for example. He said that his businesses are doing really well and he’s invested in real estate. He’s about 30 million dollars of assets that he has built up and he was asking me all sorts of questions because he knew I was in real estate before as a marketing guy and I was like look buddy I have no idea. I don’t want to injure your your career here I don’t know. What’s the threshold where you should get serious maybe looking into it or talking to an attorney about it? No, individual investors probably would never come in a scenario where they’re gonna form a REIT. I mean REITs have lots of rules. You have to have at least a hundred different owners in a REIT to form a REIT. The compliance costs are significant. So you would want to, you know, it could cost several tens of thousands a year just to maintain a REIT status. Really? Well, I’ll tell you what. I wanted to share with you how much I appreciated you I forgot my tablet, you know, stone tablet, forgot my chisel, and so I can’t. Boom. Boom. Michael Buehrer, how are you, my friend? All right. We are here with Michael, and there is no real estate topic to obscure Buehrer. And we are talking today about absorption. Now, Michael, we’re in San Diego. You could be out longboarding or surfing or whatever it is you guys do here, but instead you’re going to talk about absorption. So I’m going to read the definition and I want to get some examples from you. So here we go. Absorption is the amount of inventory or units of a specific commercial property type that become occupied during a specified time period in a market usually reported as the absorption rate. Michael, what does this mean in layman’s terms that my third grade mind can handle? So this would be comparing the occupancy of a set area, a geographical area usually, compared to a previous period. So if more space was leased than when vacant in that market during that specified time, there would be positive absorption. If the amount of vacancy increased during that time period, then the absorption would be negative. the flying of this plane perfectly to continue this concert. Was that your jet? That was my jet. Yes, I’m a little late. I got to get back. All right. So now real quick, when would you actually in context, like when would you typically talk about this? What time, when would you normally have this, when would this kind of term get brought up in the office? So if you’re a real estate investor, you’re thinking about going into a specific market, you would want to see positive absorption usually. That’s a sign that the market’s healthy, that there’s more people wanting to lease space in that area than are vacating at the end of their lease. Awesome. Well, Michael, I appreciate you more than I can verbally express. So I appreciate you so much. Thank you, my friend. We are here with Michael. There is no real estate topic to obscure beer in sunny San Diego, sipping on margaritas. Really, I mean, we’re living La Vida Loca. And I am excited to be talking about an incredible term here, the add-on factor. I’m going to read the definition, and I’d like to see if you can give us an ample example that my mind can handle. I know it’s challenging, but here we go. This is the ratio of rentable to usable ratio. What does that mean? So, I think it’s more commonly called the load factor. Load factor. So, if you have a commercial building, you have space that you physically occupy, but also in the space there’s common areas, there’s common area restrooms, there’s maybe elevators, the mechanical rooms where the air conditioning is at, all of that space is added up and then spread out over all of the usable square footage, all of the square footage that the tenants actually are in. And so they, so you may have a hundred square feet that you’re renting, you think, but the landlord is going to charge you on maybe a hundred and ten square feet because he’s adding in all of these common areas. And so that percentage between what you’re, the usable, what you’re actually in, and what you’re actually paying rent on, is called the load factor. Let me give the Thrivers an ample example. I want to see if this is accurate in your mind. I remember leasing space at 5800 East Skelly. I’m there leasing space, and when I was there, I remember I leased, I think I agreed to lease 6,000 square feet. And I’m kinda doing the math, and I’m like, okay, this is what my bill should be and I get a big old bill and I’m thinking how did that happen? and I talk to the lady, and I’m like that’s it, I’m gonna bring the thunder and she’s oh you’re gonna there’s common area space, there’s the elevator, there’s a nice hallway there there’s a little bit of the restroom, we take the lobby we divide it by all the tenants is that kind of what you’re talking about? That’s exactly what I’m talking about. So it’s common practice you know tenants may not think it’s completely fair, but every landlord is going to do it. Are you one of the guys who is trying to trick people like me into paying for these things? It’s just the way the industry works. So you’re not tricking us. Someone has to pay for it. That’s right. It’s the way the industry works, the way they allocate the square footage in a whole building. And this really is applicable in a multi-tenant building. So it doesn’t come into factor if it’s a single-tenant building. But if you have an office building, an industrial building, mainly office, and all that common area space is divided up amongst all the tenants in the building. You know, the one thing we’ve tried to get as many planes to fly over as possible to add to that luxurious ambiance. It’s kind of airfield meets luxury. That’s right. Now, a final question I have here for you. Do you ever, you know, because you guys have properties in Hawaii and Phoenix and all over the place, do you ever secretly like get into the lobby of one of those places on the weekends and kind of, you know, check in, maybe you and your family, you just kind of sleep there and then, you know, the tenants are secretly paying for your space? Never happened. But maybe not a bad idea in Hawaii. Well, I don’t believe him. But thank you for being here, my friend. We are here in sunny San Diego with Michael. There is no real estate topic to obscure Bure. Talking about, I mean, this is a topic I know you’re passionate about. It’s one that’s close to your heart. It’s adjusted basis. Adjusted basis. Now, the original cost basis of a property plus capital improvements, less total accumulated cost recovery deductions and partial sales taken during the holding period. That’s what that means. I don’t even know what that means. I just said those words. I don’t know what that means. It’s just like a weird out of body experience. Walk me through what the… give us an example that the Thrivers can handle. What does this mean? So, that’s a lot of words, but it’s pretty simple. You buy a building for a hundred thousand, maybe spend another twenty thousand on tenant improvements, maybe ten thousand, you put some new air conditioning in, and your adjusted basis is going to be a hundred and thirty thousand. So you add all that together. So it’s whatever you bought it for plus all the stuff you put into it? Yes, less any depreciation that you take. Ok, let’s say I’m a thriver and I’ve decided, I talked to one of the thrivers here today. This guy’s decided he’s going to flip houses. So he bought a house, I don’t remember the total, I want you to say you bought it for $100,000. Yep. And then he, any of the money he puts in to fix it and adjust it, or fix it and modify it and improve it, all that together? Once he adds all that up, that’s his adjusted basis. And how often do you talk about this kind of term in real estate? Well, you talk about it when you’re thinking about selling it, what’s your profit going to be. You would use your adjusted basis, typically, to see what the net profits would be. It could also be a tax term, because you want an adjusted basis. If you’re considering your depreciation, how much gain from a tax standpoint there would be. Michael, I appreciate you being here. And really, if I could write it across the sky in calligraphy it wouldn’t adequately express how much I appreciate you being here. Glad to be here. JT, do you know what time it is? 410. It’s Tebow time in Tulsa, Oklahoma 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? 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 hundred million dollar net worth. Wow. Who’ll be presenting. Now we’ve had a couple of presenters that have had a billion dollar net worth in some like a real estate sort of things. Yeah. But this is the first time we’ve had a guy who’s built a service business and he’s built over a hundred million dollar 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 Nine 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 has, he 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 get this wrong because 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, Holton 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 could 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 the 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 27th and 28th. You might say, well, who’s speaking? We already covered that. You might say, where’s 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 Thrivetimeshow 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 to 28th. Who? You. You’re going to come. Who? You. 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 going to give you a copy of my newest book, The Millionaire’s Guide to Becoming Sustainably Rich. You’re going to leave with a workbook. You’re going to 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 at the… Have I told you this? You have not told me that. 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 traveling all the way from Puerto Rico to Tulsa Oklahoma to attend the in-person June 27th and 28th Thrive Time Show 2-Day Interactive Business Workshop. If you’re out there today, folks, 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 2-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 before it’s over. ThriveTimeshow.com. Even if I got three strikes, I’ma go for it. This moment, we own it. And I’m not to be played with because it could get dangerous. See, these people I ride with, this moment, we own it. 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 systems that Dr. Zellner and I have used over and over to start and grow successful companies. 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 gonna 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, and they’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. And 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, acta 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 I have a special guest 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. Mr. Clay Clark is a friend of a good friend, 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 Thorn, 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. But not only that Clay, thank you, but you’ve become an influencer. 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, 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 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 at Kings Point in New York, acta non verba. Watch what a person does, not what they say. Hey, I’m Ryan Wimpey, 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 using 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. Like we have workflows that are kind of all over the place. 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 model it and steal everything that’s here at this facility and basically create it just on our business side. 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 waiting live the whole time. It’s not pushy. They don’t try to sell 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. Biggest takeaways are, you know, you want to take a step-by-step approach to your business. Whether it’s marketing, you know, 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, allowing me some time freedom. Here you can ask any question you want. They guarantee it’ll be answered. This conference motivates me and also give me a lot of knowledge and tools. It’s up to you to do it. Everybody can do these things. There’s 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 motivated 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, a few years ago. This is our old neighborhood. See? This is, uh, nice, right? So this is my old van and our old school marketing. And this is our old team. And by team, I mean it’s me and another guy. This is our new van with our new marketing and this is our new team. We went from 4 to 14 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 10 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 wanna 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 Place 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. I 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. the last two days that 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 has completely eliminated 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. It’s 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. Everybody. Everybody. Everyone needs to attend the conference because you get an opportunity to see that it’s real.