Real Estate Expert: How You Can Make REAL Money with These 3 Tips - Paul B. Smith

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<v Speaker 1>Welcome to the Big Success podcast, cutting edge conversations on business and personal success, as well as how to level up.

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<v Speaker 1>Here's your host, number one business coach in the world, brad Shokers.

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<v Speaker 2>You know, when it comes to explaining wealth, you go to a guy that lives in Monaco, who has built multi-millions in real estate and lives the lifestyle.

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<v Speaker 2>I met Paul at the Las Vegas Grand Prix Formula One and we got to chatting about real estate and I thought, oh my God, I need his knowledge on the podcast.

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<v Speaker 2>I need you to understand what he says about how you create wealth.

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<v Speaker 2>His early career was running big companies, everything from the Cadbury's, roundtree, schwepp's all of that fast-moving consumer goods.

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<v Speaker 2>He started in the automotive industry with Ford, now big real estate guy, and when I say big I mean massive.

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<v Speaker 2>Read the book, dive into the podcast, paul's few on success and how it happens for you financially.

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<v Speaker 2>Let's get to it, paul.

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<v Speaker 2>I got to ask your definition of success.

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<v Speaker 2>What is it I've got to?

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<v Speaker 3>I believe that most people believe they are successful when they've got more economic success, more lifestyle success than their parents, and I think that is the normal definition of success, my specific personal definition of success.

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<v Speaker 3>I'm going to give you a little theory of mine.

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<v Speaker 3>We you and me, people like us only do things for two reasons.

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<v Speaker 3>One is lifestyle, so whether it's hanging out, the formula one or you know whatever and the other one is legacy, and success for me is this my grandchildren's grandchildren's grandchildren know my name.

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<v Speaker 2>Grandchildren.

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<v Speaker 2>How many generations is that?

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<v Speaker 2>They're like nine generations, I guess.

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<v Speaker 3>Yeah, because one of the things I do kept this secret from you is I collect rare coins, right?

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<v Speaker 3>So one of my coins is from Alexander III, but it owns Alexander the Great and more than 2000 years later, we're still talking about it and, for goodness sake, the guy died at the age of 30.

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<v Speaker 3>So he had, he had.

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<v Speaker 3>No, I'm 60 this year, so I've already lived twice as long as Alexander the Great, and I will be very impressed if people are still talking about me in 2000 years time he had a good nickname.

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<v Speaker 2>It did help him.

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<v Speaker 2>You didn't get blessed with, you know, a name that stands out like Brad Sugars.

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<v Speaker 2>You got Paul Smith.

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<v Speaker 3>Yeah, that's a flesh out.

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<v Speaker 3>Yeah, so we'll keep.

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<v Speaker 2>Well, that's where we got to have Benedict in the middle.

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<v Speaker 2>There you go.

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<v Speaker 2>So where do you feel in your life?

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<v Speaker 2>You chose success, the young boy schooling later in life.

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<v Speaker 2>Where did you choose to be successful?

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<v Speaker 3>Very easy for me.

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<v Speaker 3>I realized it would be for most people.

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<v Speaker 3>When I was 14 years old, I was diagnosed with something called Crohn's disease.

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<v Speaker 3>I spent more than one year in hospital and, in particular, two different aspects to it.

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<v Speaker 3>On a personal basis, I had three operations, and all three.

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<v Speaker 3>Well, I had many operations, but three of them were life threatening.

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<v Speaker 3>I'm not particularly religious, but I was brought up as a Catholic, and when they think a Catholic's going to die, they give him something called the last rights.

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<v Speaker 3>I was given the last rights when I was 14.

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<v Speaker 3>So I was old Damn, you're going to die.

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<v Speaker 3>But that's a beautiful thing because I don't know about you, brad, but I'm of an age now where you know I'm not saying I'm, I believe I'm still young but you know, this year I'm 16.

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<v Speaker 3>And people around me have started dying and my observation on life is this People only become uninhibited and clear about what they want when they are told you're going to die, you know, in two months and three months and six months, everything fades away and becomes irrelevant Now.

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<v Speaker 3>The news for all of us human species is that we're all bloody, going to die we don't know when and I decided to cut the crap and I decided to literally live every day as if it was my last.

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<v Speaker 2>Yeah.

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<v Speaker 3>Like literally.

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<v Speaker 2>Yeah.

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<v Speaker 3>Because none of us knows how long we've got.

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<v Speaker 3>But when you, I tell you what it does help give you that clarity and that focus when you've had a near death experience.

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<v Speaker 2>Well.

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<v Speaker 3>And I ain't recommending it, I'm just saying that's when I got that.

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<v Speaker 2>You know, age age helps, like we're talking wealth today.

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<v Speaker 2>Right Age does help People like you know why is Warren Buffett one of the richest people in the world?

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<v Speaker 2>Because he's been doing it 60, 70 years.

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<v Speaker 2>That's why he's compounded for 70 years.

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<v Speaker 2>Most of us don't learn investing until we're in our 40s or so, and then our compounding rate is only 30 years, and some people die in their 50s.

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<v Speaker 2>They only get 10 years compounding, but before we get into wealth.

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<v Speaker 2>How?

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<v Speaker 2>What's your formula for success?

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<v Speaker 2>Like, how does success happen in your mind?

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<v Speaker 3>Hmm, Okay, so I'm a great one for the Warren Buffett cause.

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<v Speaker 3>And when people say I do quite a lot of social, I'm still quite active on social media, cause I'm still a I'm not one of these retired wealth of people, I'm an active party.

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<v Speaker 3>So, cause I think you know what the hell are you going to do all day?

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<v Speaker 3>Yeah, so I do what I love doing, and very often people say you know if, if you're really that rich, why are you still working that hard?

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<v Speaker 3>Yeah, and they'll say things like that, or you know whatever.

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<v Speaker 3>And my view is, with regard to wealth in particular, you only discover what it is that you want to do when you don't have to do anything.

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<v Speaker 3>And if you wake up every morning and think, well, what shall I do today, that's not really a great way to plan your life.

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<v Speaker 3>So for me, it's a combination of total enough to freedom to do whatever the hell I want, together with the plan, and, in particular, my plan is to help as many other people on the planet become wealthy as possible.

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<v Speaker 3>That's my life's mission, if you like.

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<v Speaker 3>That's, that's what I'm, that's what I'm trying to do.

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<v Speaker 2>Yeah, I remember when I wrote the vision for action coach, of world abundance for business, free education.

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<v Speaker 2>People like you know you're, you're a little crazy and it's like you can retire.

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<v Speaker 2>Why don't you just retire?

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<v Speaker 2>Because I would, you know.

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<v Speaker 2>We see what happens to all the movie stars and rock stars when they got all the time and all the money on their hands.

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<v Speaker 2>I like having something to do.

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<v Speaker 2>So if you look at, then, the relationship between failure and success, how do you view that relationship?

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<v Speaker 3>Oh Christ.

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<v Speaker 3>Well, I tell you what a few years ago.

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<v Speaker 3>Now I'm in my third year in Monaco, and that has been, people say to me did you move to Monaco because of taxes?

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<v Speaker 3>Well, not really.

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<v Speaker 3>I wouldn't move somewhere I didn't want to move to just because of the bloody tax.

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<v Speaker 3>So I'm an absolute firm believer in the fact that your network is your net worth.

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<v Speaker 3>It's just they're the same thing and the more and more like super wealthy people I meet here, the more and more I understand that really successful, really wealthy people, they're not afraid of failing, they're not failing.

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<v Speaker 3>Hang on, explain that to me All right, I'll do it in two ways.

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<v Speaker 3>Maybe might.

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<v Speaker 3>So they're afraid of not failing.

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<v Speaker 3>Because I've got a really good friend of mine, a guy called Jonathan, and he does crazy stuff.

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<v Speaker 3>He, you know, sales across the Atlantic solo both ways with, just like it.

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<v Speaker 3>You know a bagel in New York and he comes back again and stuff like that, and he's in his sixties, by the way, and he says, if I don't keep pushing it to the edge, how the hell do I know where the edge is?

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<v Speaker 3>So that's number one.

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<v Speaker 3>But number two I don't know if he'd be so well known over there in the States, but a guy that I know pretty well over here is Stelios.

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<v Speaker 3>He's the easy jet guy.

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<v Speaker 3>So he's a, you know, multi-billionaire, very successful business guy.

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<v Speaker 3>And my wife and I would just chat into it.

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<v Speaker 3>We're a member of the same couple of clubs and we were just talking to him and we just said to him how many successful businesses you've got, because you never stop.

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<v Speaker 3>He's got easy jet.

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<v Speaker 3>He's got easy storage.

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<v Speaker 3>He's got easy office.

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<v Speaker 3>He's got easy hotel, he's got easy everything.

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<v Speaker 3>And his answer took us back a bit.

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<v Speaker 3>He said well, to any substance I've got 50.

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<v Speaker 3>I said what do you mean any substance?

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<v Speaker 3>He said well, you know proper businesses that make more than a million quid a year.

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<v Speaker 3>And the follow-up question for that was oh okay, so in order to get 50 successful ones, how many businesses did you start?

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<v Speaker 3>And he said 250.

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<v Speaker 3>So, in other words, if you look at it differently, if he wasn't afraid not to fail, he started five businesses.

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<v Speaker 3>For every one that's succeeded, thank you.

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<v Speaker 3>And he then took the mickey out of me I used a slightly ruder word than that, but I'm trying to keep it clean and he said but you got it easy.

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<v Speaker 3>I said what do you mean?

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<v Speaker 3>I got it easy.

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<v Speaker 3>He said well, you're in real estate.

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<v Speaker 3>How can you possibly lose in real estate?

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<v Speaker 3>I mean, what could possibly go wrong?

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<v Speaker 3>I said well, trust me, there's plenty of things can go wrong.

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<v Speaker 3>But his head was in a place that almost real estate, wasn't a proper business because it wasn't risky enough.

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<v Speaker 3>And I get that if you compare it to well, doing what he did, starting an airline from nothing.

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<v Speaker 3>And so that's what I mean when I say and these are my words, not theirs but the more successful, super wealthy and by which I mean billionaire plus level people, the more that I discover that they're afraid not to fail If that makes, because you know, if they didn't fail four times, they wouldn't succeed once.

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<v Speaker 2>Love it, love it.

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<v Speaker 2>You know the big success podcast.

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<v Speaker 2>We're gonna be back with Paul Smith and we're gonna dive into wealth and real estate when we come back.

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<v Speaker 4>In 30 minutes a day for 30 days.

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<v Speaker 4>30x business will take you through the exact hard won business principles that Brad Sugars has personally developed over the past 30 years as an entrepreneur, investor and business advisor.

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<v Speaker 4>Join Brad and his team and 100 other entrepreneurs who want to start building a successful business today.

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<v Speaker 2>All right, you're back.

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<v Speaker 2>Big success podcast.

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<v Speaker 2>Paul Smith wealth.

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<v Speaker 2>Let's imagine I'm 20s, early 20s.

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<v Speaker 2>What should I be doing to get myself rich in my lifetime?

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<v Speaker 3>Oh, this is gonna sound really, really boring, but the first absolute, fundamental thing you gotta do is make sure that your income exceeds your expenditure.

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<v Speaker 3>No, I'm with Dickens on this.

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<v Speaker 3>I don't know if you're familiar with Mr McCorber from one of Dickens' novels Income 20 shillings, expenditure 20 shillings and sixpence misery.

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<v Speaker 3>Expenditure 19 shillings and sixpence happiness.

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<v Speaker 3>So you gotta get the right side of the line, you gotta start regulating, and that's just basic financial discipline, because I don't know about you, brad, but I know so many people.

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<v Speaker 3>They start on 20 grand, they get to 30 grand, they get to 40 grand, they get to 100 grand, 200 grand, and their lifestyle just moves with their costs and they're always fair.

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<v Speaker 4>So number one discipline number two and I'm probably gonna say it every one of us sweet now.

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<v Speaker 3>wherever you live, you gotta get really good at tax, Because I've just done a series on social media and stuff who stole my millions.

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<v Speaker 3>Okay, and here's the gist of it, in like one or two sentences.

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<v Speaker 3>The average salary in the UK is like 40 grand and similar in the States.

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<v Speaker 3>Call it $50,000, something like that.

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<v Speaker 3>You work for, let's say, 50 years, from 20 to 70, something like that.

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<v Speaker 4>So let's do it in dollars.

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<v Speaker 3>Let's say you earn two and a half million dollars throughout your life, what do you die with?

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<v Speaker 3>I'm virtually nothing.

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<v Speaker 3>I'm talking about the average person.

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<v Speaker 3>I'm not talking about you, obviously.

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<v Speaker 3>And if you then analyze who stole all my money?

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<v Speaker 3>I don't care where you live, it's tax and unless you get really good, I'm paying the correct amount of tax with all the benefits and the schemes and the systems that you can use.

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<v Speaker 3>So in the States, whether it's a 401k, or in the UK, whether it's a SaaS or you've gotta know the basics.

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<v Speaker 3>But just take that as a specific example.

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<v Speaker 3>You're in your twenties, you're a good young man all women and you've decided you're gonna start putting into a pension because you're responsible.

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<v Speaker 2>Yeah, my 20 and 21 year old daughters.

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<v Speaker 2>Literally they're Roth IRA and I pushed them to do it, but I know that's gonna make sure they're okay.

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<v Speaker 3>All right.

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<v Speaker 3>Well, here's the thing In the UK.

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<v Speaker 3>Let's say you did that virtually and the average pension pot of the average person in the UK is just a little bit over 120,000 pounds by the time they retire, which is scary.

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<v Speaker 3>Have a guess at the tip I don't know if you'll know this or not have a guess that the typical fees that a typical pension scheme will take off you in order to amass your 120k.

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<v Speaker 2>Geez, I don't know, it's gonna be enough percentage points that I'm gonna be crying about it.

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<v Speaker 3>Yeah, it's about 140k.

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<v Speaker 2>So more than you get you paid in fees.

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<v Speaker 2>That's insane.

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<v Speaker 3>Yeah, I thought stuff like this on social media and I get hate from all the financial institutions, obviously, and I've published videos called the Great Pension Scam and whatever.

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<v Speaker 3>Right, okay, now let's say by some miracle.

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<v Speaker 3>You're completely exceptional and you've amassed a pension pot of a million quid.

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<v Speaker 2>Yeah, a million quid Now that would be exceptional what happens?

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<v Speaker 3>Well, in the UK you've got this arcane system called an annuity and almost everyone where they retire they buy a financial product.

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<v Speaker 3>They give away their million pounds and they buy an income stream and they'll maybe buy an income stream of 3%, 4%.

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<v Speaker 3>So on their million they'll get 30 or 40k a year, something like that.

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<v Speaker 3>Yeah, so they can live off of it, yeah, yeah, and when they die it's gone.

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<v Speaker 3>So the biggest asset that they've got, and that's just tax.

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<v Speaker 3>So when I say you've got to learn your tax system in the United Kingdom, you can very simply put it in don't put it into a normal pension scheme, put it into something called a SAS, small, self-administered scheme and I write about this stuff all the time.

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<v Speaker 3>A SAS is a trust.

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<v Speaker 3>It's exempt from inheritance tax.

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<v Speaker 3>There's there's.

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<v Speaker 3>No bugger can get their hands on it, apart from you and I set mine up for free, zero rounds.

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<v Speaker 2>I even look at it here in the States.

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<v Speaker 2>I see all these people burdened with college debt and it's like if, if if you think, if you think smart enough in the beginning.

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<v Speaker 2>Firstly, I don't see there's ever gonna be a return on the college other than who my kids get to meet when I send them to the right colleges.

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<v Speaker 2>If they make good connections Then that friendship group will serve them later in life.

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<v Speaker 2>But even the simple five to nine account where I fund that account now for my five-year-old daughter, it sits and earns Tax-free Returns till she goes to college and then pays for college and I'm assuming it'll have a lot more than she needs.

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<v Speaker 2>So it'll not only pay for a college, it'll pay for a room and board and you know like.

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<v Speaker 2>But you're right, tax, mortgage interest and tax are the two biggest expenses in your life for sure.

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<v Speaker 3>And then number three, because I'm a property guy by a bloody house, yeah, okay.

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<v Speaker 3>And and People say to me, because I bought my first property in 1982 so 42 years ago in London and I paid 9,000 pounds for it and I did it up myself all those years ago because I was only 17 when I bought it and Less than two years later I sold it for 32,000 pounds.

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<v Speaker 3>So, and it works in the UK because it was my home, it was tax-free, so I essentially I turned 10 grand into 30 grand off.

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<v Speaker 3>I went and people say to me over, paul, you could do that then.

00:17:15.108 --> 00:17:18.522
<v Speaker 3>You can't do it now because the average house in the UK is like 300,000 pounds.

00:17:18.522 --> 00:17:24.482
<v Speaker 3>Yeah, and I said you know what, it's even easier now than it was then because I was 17, I couldn't get a mortgage.

00:17:24.482 --> 00:17:27.411
<v Speaker 3>I had to save up that cash by working bloody hard.

00:17:27.411 --> 00:17:30.788
<v Speaker 3>Now you can get a 95% mortgage.

00:17:30.788 --> 00:17:32.092
<v Speaker 3>You need a 5% deposit.

00:17:32.092 --> 00:17:35.909
<v Speaker 3>So what's 5% of 300,000?

00:17:35.909 --> 00:17:37.031
<v Speaker 3>It's 15 grand.

00:17:37.031 --> 00:17:40.057
<v Speaker 3>And that's 40 years later.

00:17:40.076 --> 00:17:50.028
<v Speaker 3>And and here's a little one for you we in the UK not that I live there anymore, but I'm still quite close to connected to it they got the the budget coming up in March.

00:17:50.028 --> 00:17:51.532
<v Speaker 3>You know the but the fiscal.

00:17:51.532 --> 00:17:55.509
<v Speaker 3>We're gonna wreck the economy a different way that we haven't thought of before.

00:17:55.509 --> 00:18:03.366
<v Speaker 3>And I guess what they're thinking the government is election year same as it is First time owner scheme Yep.

00:18:04.843 --> 00:18:11.210
<v Speaker 3>Yeah, first time homeowner scheme and they're now actively talking about a 1% deposit mortgage.

00:18:11.210 --> 00:18:41.708
<v Speaker 3>Okay, next thing, and I'm going back to Trump.

00:18:41.708 --> 00:18:44.122
<v Speaker 3>Trump, I'm going back Buffett again.

00:18:44.122 --> 00:18:48.512
<v Speaker 3>I don't know why Trump came out my mouth, but Trump's on my mind at the moment for various reasons.

00:18:49.500 --> 00:18:55.573
<v Speaker 3>Buffett says the average millionaire's got seven streams of income and I've seen that attributed to many, many different people.

00:18:55.573 --> 00:19:11.294
<v Speaker 3>So in my view, if you're like a regular person working a regular job as dangerous yeah, because Artificial intelligence, you know all the things, all the threats to your you good old white collar job you can't rely on that.

00:19:11.294 --> 00:19:21.893
<v Speaker 3>So I would say you have to have a second stream of income and I'm not one of the people that says you should start some sort of crazy side hustle or drop shipping on Amazon or whatever.

00:19:21.893 --> 00:19:27.119
<v Speaker 3>Just just if you're working full-time and and that's like you know what you do.

00:19:27.119 --> 00:19:48.652
<v Speaker 3>The way I normally talk to the people that I train, educate, support is by all means choose property as a second income stream, but you know fine stops and shares and you know that sort of stuff if that's what you want to do, but do not quit your day job until your Second income stream is at least three times what you're earning in your primary income stream.

00:19:49.682 --> 00:19:57.151
<v Speaker 3>Why three times, because if you've been, you said you're in your 40s, so you've.

00:19:57.151 --> 00:20:01.683
<v Speaker 3>You've built a whole career of Doing whatever you're doing.

00:20:01.683 --> 00:20:17.297
<v Speaker 3>You've got good experience at it, and I Hate it when I see people saying you know, midlife crisis, I'm 40 years old, I've decided to tell the boss what I really think of him and I'm gonna be a property investor.

00:20:17.297 --> 00:20:18.309
<v Speaker 3>I think that's insane.

00:20:18.309 --> 00:20:23.179
<v Speaker 3>Yeah, I just think you gotta keep your income so you got your borrowing capacity.

00:20:24.827 --> 00:20:26.979
<v Speaker 2>So you've got all of that stuff that you have to do.

00:20:26.979 --> 00:20:33.480
<v Speaker 2>You know, I I read that about Warren Buffett's and seven income streams and seven properties is seven income streams.

00:20:33.480 --> 00:20:37.239
<v Speaker 2>I don't need seven businesses, or you know, I'm the crazy one.

00:20:37.239 --> 00:20:38.710
<v Speaker 2>I've got 11 companies.

00:20:38.710 --> 00:20:42.759
<v Speaker 2>So I'm I'm crazy with your easy-jet guy of having lots of companies.

00:20:42.759 --> 00:20:50.368
<v Speaker 2>But again, I've been through 50 something companies and Most of them were successful.

00:20:50.368 --> 00:20:51.029
<v Speaker 2>I sold them.

00:20:51.029 --> 00:20:54.357
<v Speaker 2>But if, if, okay, so let's leap ahead.

00:20:54.357 --> 00:20:55.059
<v Speaker 2>I'm getting towards retirement.

00:20:55.059 --> 00:21:02.178
<v Speaker 2>Maybe I've done some of the basics right, but if I want to get there faster, do I what?

00:21:02.178 --> 00:21:02.819
<v Speaker 2>What should I be focused on?

00:21:06.642 --> 00:21:06.923
<v Speaker 3>Sure.

00:21:06.923 --> 00:21:17.818
<v Speaker 3>Well, if I give you a UK answer than a general answer, almost everybody in the UK certainly that's got any kind of sensible middle management or senior management job and they're earning a few quid.

00:21:17.818 --> 00:21:25.999
<v Speaker 3>They've all got a reasonable pension pot and what I teach a lot is to take that pension pot and take control of it.

00:21:25.999 --> 00:21:50.791
<v Speaker 3>So put it into your private pension and it's a very straightforward thing to do here in the in the UK and you can then use that private pension to start investing in commercial property If you, if you set it up in the right way, you can use that pension pot to actually lend money to your development companies and you can fund residential property.

00:21:50.971 --> 00:21:57.096
<v Speaker 3>So most people are sat on this Pretty significant war chest of money that they don't even know about.

00:21:57.096 --> 00:21:59.192
<v Speaker 3>So that's number two.

00:21:59.192 --> 00:22:02.396
<v Speaker 3>I Think this is true of most places in the world.

00:22:02.396 --> 00:22:03.884
<v Speaker 3>So this is a more generic answer.

00:22:03.884 --> 00:22:17.971
<v Speaker 3>Most people in most of the Western countries I'm familiar with They've got this mission to pay down their home mortgage and get it paid off, and that creates what I call lazy money.

00:22:17.971 --> 00:22:20.117
<v Speaker 3>So they've got house.

00:22:20.117 --> 00:22:24.573
<v Speaker 3>That's not an asset, it's a liability because it they're paying for it.

00:22:24.573 --> 00:22:30.531
<v Speaker 3>Even if there's no mortgage, they're still paying for upkeep and Well utilities.

00:22:31.646 --> 00:22:32.449
<v Speaker 4>And most of them.

00:22:32.489 --> 00:22:38.686
<v Speaker 3>Got hundreds of thousands of dollars or pounds or euros or whatever locked up place For.

00:22:38.827 --> 00:22:42.244
<v Speaker 2>Christ's sake, grow a set, take it out and go and buy someone else with it.

00:22:42.625 --> 00:22:48.255
<v Speaker 2>Yeah, or I recommended to an older person the other day Sell your house, go rent something.

00:22:48.255 --> 00:22:54.444
<v Speaker 2>Use all of that money to go and buy seven or eight properties Because they had enough money there to be seven or eight deposits.

00:22:54.444 --> 00:23:00.979
<v Speaker 2>Control seven or eight properties, pay rent in the one that you're gonna live in because they were gonna downsize anyway.

00:23:00.979 --> 00:23:05.301
<v Speaker 2>Like, come on, dude, don't, don't be crazy with this thing.

00:23:05.301 --> 00:23:08.184
<v Speaker 2>All right, we're gonna get back and we're gonna took scale in wealth.

00:23:08.184 --> 00:23:09.548
<v Speaker 2>We'll be back in a moment.

00:23:09.548 --> 00:23:12.056
<v Speaker 2>Remember, click that bell so you get the announcements.

00:23:12.665 --> 00:23:17.017
<v Speaker 5>Paul and his wife and eco have started run, purchased, sold and own a number of businesses.

00:23:17.017 --> 00:23:25.209
<v Speaker 5>They own residential and commercial property, have an estate agency project management company and own a firm of solicitors Specializing in property.

00:23:25.209 --> 00:23:30.951
<v Speaker 5>To learn more about Paul Benedict Smith, please visit touchstone Education comm and you're back.

00:23:31.251 --> 00:23:33.376
<v Speaker 2>Paul Smith wealth through property.

00:23:33.376 --> 00:23:42.772
<v Speaker 2>Let's go into BRR by renovates, remodel and reach, refinance or redraw down on that thing.

00:23:42.772 --> 00:23:44.876
<v Speaker 2>It's a strategy that you love.

00:23:44.876 --> 00:23:46.440
<v Speaker 2>Why do you love it so much?

00:23:49.186 --> 00:23:57.340
<v Speaker 3>Okay, because you master that you can have an infinite amount of property, which sounds like a crazy statement to make.

00:23:57.340 --> 00:24:04.897
<v Speaker 3>The first year I got serious about that Was a particular niche within the buy ref.

00:24:04.897 --> 00:24:18.163
<v Speaker 3>We call it but, or I call it buy, refurbish remortgage, but yeah, buy, remodel, redraw down BRR, and I don't really care at the end whether you sell it or you put a tenant in it, it doesn't matter because you've created that value.

00:24:18.163 --> 00:24:27.657
<v Speaker 3>Yeah, the first year that I got serious about it Very, very briefly, up until the age of 40.

00:24:27.657 --> 00:24:30.184
<v Speaker 3>I was doing a big corporate job but I was doing property on the side.

00:24:30.184 --> 00:24:35.020
<v Speaker 3>Best thing ever happened to me I got made redundant when I was 40.

00:24:35.020 --> 00:24:36.105
<v Speaker 3>So what the hell do they call that in the state?

00:24:36.105 --> 00:24:40.130
<v Speaker 3>I got let go, got fired Yep, fired.

00:24:40.130 --> 00:24:44.500
<v Speaker 3>Best thing ever happened to me because I suddenly had to think on my own.

00:24:44.500 --> 00:24:45.242
<v Speaker 3>I to get on my own two feet.

00:24:45.242 --> 00:24:52.903
<v Speaker 3>So essentially, 20 years in big corporates, 20 years as running my own businesses.

00:24:52.903 --> 00:25:02.138
<v Speaker 3>I did it for the very first time in Potentially quite an interesting way that everyone might be into.

00:25:02.138 --> 00:25:03.803
<v Speaker 3>I didn't buy a regular house.

00:25:03.803 --> 00:25:12.501
<v Speaker 3>I bought a nursing home when it was a nine bed nursing home, and I bought it Because I've been a property investor for 20 years.

00:25:12.501 --> 00:25:15.576
<v Speaker 3>At this point I knew what I was doing and I bought that property for just a touch over 400,000.

00:25:15.576 --> 00:25:30.769
<v Speaker 3>I spent about 100,000 on it and it revalued when I finished because I turned it from a nursing home Basically a business that had gone bust, yeah, and I turned it back to a family house, which is what it was.

00:25:30.769 --> 00:25:32.798
<v Speaker 3>It's a 200 year old property.

00:25:32.798 --> 00:25:33.580
<v Speaker 3>I've still got it.

00:25:33.580 --> 00:25:48.696
<v Speaker 3>It's in Scotland and when it revalued I looked at the numbers and I thought, jesus Christ, because I'd spent, round numbers, half a mill and it revalued at 1.2 million and I did that project in four months.

00:25:50.810 --> 00:25:58.765
<v Speaker 3>Now I my previous corporate job and this is going back to I can't remember if it'd be 2000 or 2001, but it doesn't really matter, let's call it 20 odd years ago.

00:25:58.765 --> 00:26:12.923
<v Speaker 3>I was the managing director of a multi-billion pound company With thousands of employees and they were paying me 400,000 a year, basic.

00:26:12.923 --> 00:26:24.487
<v Speaker 3>You know, quarter of a century ago, yeah, and I just made tax-free 700 grand when somebody else did all the work, because I didn't do any building work In four months.

00:26:24.487 --> 00:26:30.867
<v Speaker 3>So if you annualize that, I just earned 2.1 million dollars and no effort.

00:26:30.887 --> 00:26:31.830
<v Speaker 3>I was on holiday.

00:26:31.830 --> 00:26:32.894
<v Speaker 3>I went to Africa.

00:26:32.894 --> 00:26:47.805
<v Speaker 3>I just I climbed Kilimanjaro and so I just thought, shit, this beats working for a living.

00:26:47.805 --> 00:27:00.402
<v Speaker 3>And and because I did have in my head, well, you know, maybe I'll just do this for a bit and then I'll go back and get a proper job working for someone else, and then I just thought, no, what the faintest chance.

00:27:00.402 --> 00:27:10.534
<v Speaker 3>So the next year I'm struggling to remember, I think I normally say we did roughly 50, we be me and the wife we did, I think, 48 properties the next year.

00:27:10.534 --> 00:27:12.239
<v Speaker 3>It's like one a week.

00:27:12.239 --> 00:27:25.092
<v Speaker 3>And then it just went boom, and he, because it does, yeah, and Well, you get so much equity, you've got a place at somewhere and it's a system and I'm an engineer fundamentally.

00:27:25.112 --> 00:27:28.202
<v Speaker 2>My first degree is mechanical engineering.

00:27:30.130 --> 00:27:38.279
<v Speaker 3>Engineers have got this concept called repeatability, which essentially means you do the same thing, you get the same result.

00:27:38.279 --> 00:27:47.249
<v Speaker 3>So when you get an engineer to understand the system, they'll just keep doing it.

00:27:47.249 --> 00:27:58.195
<v Speaker 3>Now there is a downside to trying to teach an engineer something, which is this and I am an engineer, so I can say this you can always tell an engineer, you just can't tell them much.

00:28:00.829 --> 00:28:08.015
<v Speaker 2>So let's go then to the scale side of this thing Good to great, doing those properties, doing that stuff.

00:28:08.015 --> 00:28:11.017
<v Speaker 2>Then you hit the scale segment.

00:28:11.017 --> 00:28:18.814
<v Speaker 2>Tell us what are the main lessons you had to get to go from doing the good size to doing the massive things.

00:28:18.814 --> 00:28:21.897
<v Speaker 2>How did you have to shift your mindset as well, I guess?

00:28:23.171 --> 00:28:27.761
<v Speaker 3>Okay, well, here's where I said I was lucky at 14 in all sorts of ways.

00:28:27.761 --> 00:28:38.316
<v Speaker 3>I was lucky again at 40 because most entrepreneurs have never run a two and a half billion pound business like I had and had thousands of stuff.

00:28:38.316 --> 00:28:44.960
<v Speaker 3>The main challenge of scale for most people in most businesses is easy is people.

00:28:44.960 --> 00:28:48.452
<v Speaker 3>So it's easy to tell you what it is.

00:28:48.452 --> 00:28:58.040
<v Speaker 3>But what I'd already had is 20 years of man management experience drilled into me in big blue chip environment.

00:28:58.040 --> 00:29:08.260
<v Speaker 3>So I was in that luxurious position where I could just merge entrepreneurial traits that I clearly had, but I'd suppressed them for 20 years with big systems.

00:29:09.029 --> 00:29:12.339
<v Speaker 3>So you go across that and people talk about crossing the desert.

00:29:12.339 --> 00:29:15.733
<v Speaker 3>I don't know what you would call it A lifestyle business.

00:29:15.733 --> 00:29:22.537
<v Speaker 3>To me that you could probably have two or three people and you can probably make a million pounds a year profit.

00:29:22.537 --> 00:29:25.494
<v Speaker 3>That's what I would call a lifestyle business.

00:29:25.494 --> 00:29:33.154
<v Speaker 3>But then you got across the desert and you've really got to get to a minimum, I would say, of 50 employees.

00:29:33.154 --> 00:29:53.117
<v Speaker 3>It depends on your sector, but for real estate I would say 50, because you probably want a project management division, you probably want some sort of we would call it a state agent, so a realtor so there's, and we own a firm of solicitors as well, so we've bought all these companies over the years.

00:29:53.417 --> 00:30:03.823
<v Speaker 3>Yeah, the ones you need to do the work you buy and it's yeah so and I see so many companies hit the wall and the founders just give up.

00:30:03.823 --> 00:30:10.154
<v Speaker 3>They don't come to people like action coach to help them across the desert and cross the desert on their own.

00:30:10.154 --> 00:30:11.073
<v Speaker 3>And what happens?

00:30:11.073 --> 00:30:27.219
<v Speaker 3>If you go try and go across a desert without a map, you generally die of thirst because you know what you're doing and the person that will take it from zero to a million is typically often not the same person that will take it from a million to 50 million or a hundred million.

00:30:27.219 --> 00:30:43.538
<v Speaker 3>You need a completely different skill set and the biggest challenge I would say facing most entrepreneurs I mean, you'll know better than me because you deal with more businesses than I do the biggest challenge isn't really the staff.

00:30:43.538 --> 00:30:46.615
<v Speaker 3>In my experience, it's getting the owners to let go.

00:30:46.615 --> 00:30:58.520
<v Speaker 3>And I'm going to come back to Formula One again here and I'm going to give you a specific analogy because we were talking off air before about, you know, lewis Hamilton and Farah.

00:30:58.769 --> 00:31:01.759
<v Speaker 2>Just for everyone's benefit, where we met was at the Vegas Grand Prix.

00:31:02.732 --> 00:31:03.556
<v Speaker 3>So that's how we met.

00:31:03.556 --> 00:31:12.392
<v Speaker 3>Yeah, and Lewis Hamilton is currently with Mercedes for another season and I would regard him.

00:31:12.732 --> 00:31:15.951
<v Speaker 4>other people might disagree, as one of the best all-drivers of all time.

00:31:17.991 --> 00:31:35.512
<v Speaker 3>But even though he's the best driver of all time, or one of, he's still one of a team of 2,000 people that takes to put that car on the road and what he doesn't do is go into the factory at Brackley and start telling people how the home cylinder balls.

00:31:35.512 --> 00:31:37.479
<v Speaker 3>He doesn't know how to hone a cylinder ball.

00:31:37.479 --> 00:31:48.900
<v Speaker 3>So you, if you are mad enough to believe that you are the best person on the planet to do everything, everything your utterly delusional in my view.

00:31:48.900 --> 00:32:03.816
<v Speaker 3>Yeah, and I'm across this as harsh, but I genuinely believe, if you are stupid enough to think that you could because I hear people say this all the time I don't know if you do, bro, oh, I have to do it myself, and no one else can do it properly for us.

00:32:05.150 --> 00:32:06.253
<v Speaker 2>We do hear that a lot.

00:32:06.253 --> 00:32:08.294
<v Speaker 2>We do hear that a lot.

00:32:10.492 --> 00:32:16.573
<v Speaker 3>So I believe, from a business point of view, letting go is the biggest challenge of scale or getting to scale.

00:32:19.150 --> 00:32:19.791
<v Speaker 2>Take me to.

00:32:19.791 --> 00:32:25.530
<v Speaker 2>Then actually, let's do this quick fire round Go One word.

00:32:25.530 --> 00:32:29.414
<v Speaker 2>One word answers how do you succeed at goals.

00:32:32.910 --> 00:32:33.151
<v Speaker 3>Training.

00:32:34.069 --> 00:32:35.453
<v Speaker 2>How do you succeed at this?

00:32:35.453 --> 00:32:37.779
<v Speaker 2>Follows on nicely, then at self development.

00:32:39.472 --> 00:32:40.797
<v Speaker 3>Dedication discipline.

00:32:41.710 --> 00:32:43.297
<v Speaker 2>How do you succeed at enjoying life?

00:32:43.297 --> 00:32:45.941
<v Speaker 2>I know you'll have a good answer for this Dreams.

00:32:45.941 --> 00:32:51.597
<v Speaker 2>Yeah, how about?

00:32:51.597 --> 00:32:53.201
<v Speaker 2>How do you succeed at relationships?

00:32:56.034 --> 00:33:03.596
<v Speaker 3>Oh, if I give you one sentence, not first time, Got it.

00:33:03.910 --> 00:33:05.173
<v Speaker 2>How do you succeed at health?

00:33:05.173 --> 00:33:13.212
<v Speaker 2>Daily Like it Like it a lot.

00:33:13.212 --> 00:33:20.392
<v Speaker 2>Final question what's the best quote you ever got or the best piece of advice you ever got on the subject of success?

00:33:23.430 --> 00:33:25.075
<v Speaker 3>What else have Mandele said?

00:33:25.075 --> 00:33:28.915
<v Speaker 3>Everything is impossible until someone does it.

00:33:30.839 --> 00:33:31.300
<v Speaker 2>I like it.

00:33:31.300 --> 00:33:32.298
<v Speaker 2>I like it a lot.

00:33:32.298 --> 00:33:34.777
<v Speaker 2>The Paul Smith followers stuff.

00:33:34.777 --> 00:33:35.882
<v Speaker 2>Click the show links.

00:33:35.882 --> 00:33:36.865
<v Speaker 2>Do all the stuff.

00:33:36.865 --> 00:33:38.009
<v Speaker 2>Subscribe to the podcast.

00:33:38.009 --> 00:33:43.557
<v Speaker 2>We're going to be back next week with more of your success and that's the big success podcast for today.

00:33:43.557 --> 00:33:50.520
<v Speaker 2>Hopefully, you took a lot of notes, learned a whole bunch and, if you need to go re-listen to it, we dropped a lot of information right there today.

00:33:50.520 --> 00:33:59.637
<v Speaker 2>Big success is what it's all about and, by the way, if you haven't subscribed, hit that subscribe button so you're here with us every single week on the Big Success podcast.

00:33:59.637 --> 00:34:00.440
<v Speaker 2>I'm Brad Sugars.

00:34:00.440 --> 00:34:01.060
<v Speaker 2>That's BS.

00:34:01.060 --> 00:34:03.096
<v Speaker 2>Big success is what we're shooting for.

00:34:03.096 --> 00:34:05.758
<v Speaker 2>Check the show notes for all the links.

00:34:05.758 --> 00:34:08.617
<v Speaker 2>Make sure you follow through, keep learning, keep coming back.

00:34:08.617 --> 00:34:12.880
<v Speaker 2>Oh, and, by the way, share this with any of your friends who you know are up for success.

00:34:12.880 --> 00:34:15.518
<v Speaker 2>I'll see you next week on the Big Success podcast.

00:34:17.052 --> 00:34:22.677
<v Speaker 1>You've been listening to the Big Success podcast with the number one business coach in the world, Brad Sugars.

00:34:22.677 --> 00:34:32.260
<v Speaker 1>To learn more about how to achieve business and personal success, as well as how to level up or listen to past episodes, visit wwwbradshuggarscom.