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Lessons - From $40B Fund to Child Rescue Missions | Paul Hutchinson - Sound of Freedom Producer · Success Story with Scott Clary

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  In this lessons episode, explore how integrity and abundance shade business strategies
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  that create lasting success. Discover how aligning incentives builds true win-win outcomes across
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  stakeholders, understand how customer empathy leads to smarter decisions and stronger products,
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  and uncover why creativity over competition becomes the foundation for long-term growth.
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  When you were building up your firm, how does that translate into the strategy that you
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  deployed? When I want to know the secret sauce, you said you were giving exceptional returns while
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  living in integrity, living in alignment, understanding that's win-win-win across the board for a
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  lot of people that's ideal circumstance that they can only hope to achieve. So how does that
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  actually translate into business strategy for you? So I'll take it on each piece. So first of all,
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  John and I, in the beginning owning 50% of the company each, realizing we don't have the background,
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  the education, et cetera, to really run a company like this. So finding people who have really
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  done something amazing in their life who are super qualified in the right areas that we needed,
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  bringing them on board. Perfect example is a guy by the name of Kelly. Kelly came into our office,
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  we were pretty small, we had three or four employees, and he said, hey guys, I really want to be a
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  part of what you guys are creating, what you're doing. And we said, hey, we're not hiring right now.
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  He goes, no, no, I don't even need to get a pay me anything. I will take a place in that court.
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  He says over there in that corner right there, I'll bring my own desk and I'll eat what I kill,
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  right? I'll come, I'll bring you guys deals and stuff. And if you fund them, then you can make me,
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  well, Kelly is now building a 14, 15,000 square foot home, right? Kelly is a multi-multimillionaire
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  today because we weren't so selfish with, okay, this is only a, the game is locked, nobody else
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  can have any equity. No, we made a lot of people millionaires as in the process of building the
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  fund and bringing on lots of new partners, right? So that's number one. And, and seeing the value
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  that he was bringing and not being in a position where we're like, okay, we're going to take his stuff
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  and try to keep it. No, we see his value and give him value and return for his value in a beautiful
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  way, right? So there's number one, number two, we already touched on this a little bit with the,
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  with the tenants, we would say, okay, we're going to put ourselves in their shoes. We're not going to
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  be a scum lord and come in and try to, you know, rape the money, the, no, we're going to say,
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  how can we create value? Yes, we're going to make sure that the pricing is ratcheted up to the point
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  where it's really competitive, but more important than that, before we ratchet up the pricing on
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  everything, we're going to make sure that people really see the value in living there. And then from
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  the bank standpoint, we become one of the, before the 2008 crisis, we saw that crisis coming because
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  of one of the partners that I had that saw that come on early. And we were able to get into a position
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  where we were one of the first 20 funds in the country to be qualified on the top level purchasing
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  platform with all the GSEs with Freddie, Fanny, HUD, FDIC. So when a bank had 30 days to live,
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  we would get a phone call. We would go in the bank president by then is willing to negotiate.
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  He's like, okay, 30 days from now, he's out of a job and his shareholders have a big fat zero if he
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  doesn't get some massive liquidity. So we go in, look at their portfolio, say, okay, we're going to
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  take that that 1000 unit apartment complex off your hands. I know you're into it $100 million. We're
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  going to pay you $35 million cash today. Give you the liquidity you need to stay in business. It's a
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  win for the bank. The bank stays in business. They have that liquidity. It's a win for us because now
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  we have the team to be able to create the value and manage it the way that it could. It's a win for
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  my investors because we have smart leverage on it and we can create that return. And I can go
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  through that with a lot of other companies as well. The attacking anxiety and depression company,
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  a perfect one that I did in my early 20s, right? We had a program, an audio and a workbook program
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  that helped people change their negative habit patterns of thought that we're creating anxiety
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  and depression in the first place. And it was a $250 program. It cost us $30 to make. But it
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  costs us like $200 and advertising just to get a client with our infomercials was kind of breaking
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  even there. But we had a valuable product for them. And then we created a personal coaching program.
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  Now here's the thing. On the outside, this looks like this isn't going to work. These are people
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  who can't even work a job because of their anxiety or depression disorders. They can't even leave
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  their house. And I'm getting them to max out their credit card for $2,000 personal coaching program.
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  And I can do that sleeping well at night. Why? Because I had a 100% money back guarantee.
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  We have 97% success rate. If 12 weeks later, after lining them up with a personal coach and
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  having them get the help that they needed, if they weren't living a normal life, if they weren't
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  working a normal job, I would give them their $2,000 back. And that was less than 3%. The other 97%
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  now they're earning $2,000 or $3,000 a month. Now they can pay back that credit card. It's a true
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  win for them. And it's a win for my employees. They're making good income. And the people who
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  went through our program, we gave them a job as personal coaches in helping others. So I could
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  create a true win, win, win. And that company I sold for $20 million when I was 29 years old.
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  Right. And now it was a public company with restricted stock. That's a whole different story. But
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  it was, it was something where we created a true win, win, win for everybody across the board
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  without anybody having to lose because the customers were paying $2,000 for something that was
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  worth $20,000 in terms of their actual value in their life. I love this. And one thing that I've
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  noticed that you heavily focus on this allowed you to adopt this mindset is the trust in the product,
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  the absolute trust in the product. If it's an investment opportunity, if it's if it's if it's
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  self-help course or or teaching session, as a as a as a as a founder, what is your framework
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  for okaying the product that you can take to market? Here's what I'm going to say. It depends on
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  your customer and what they're looking for them. And and a true win, win, win has to come from that
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  standpoint. I'll give you this example. Okay. You're you're up in northern Alaska and you meet
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  a guy who has a whole bunch of firsts and you want to buy a bunch of firsts, right? And you don't
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  have cash. He only wants to trade and you give him a a Picasso painting, right? He's got he's got
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  a bunch of firsts. There may be retail. They're worth $5,000, right? You give him a $20,000
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  or Picasso painting. You've actually done him a disservice. Why? He can't do crap with that.
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  It's going to end up in his woodshed, right? But you give him a $200 gun that he can go and shoot
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  some more or some traps or whatever else. Now you've created a true win, win, win. You've got
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  $5,000 worth of firsts that you can go fur or you can go sell whatever else. He's got even done
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  that he can actually use. And so you don't have to necessarily say, okay, I'm in it. I'm doing
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  a good deal because I'm giving him a $20,000 painting. No, you're not, right? So find out
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  and this goes back to really putting yourself in your customer shoes, right? With the with the
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  apartment complexes, who are our tenants? Are the people that play tennis? You know, do they need
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  gold tile rods? No, they don't, right? They want the English as a second language. They want the
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  bookmobile. They want Taco Tuesday. They want they want a safe place that can have their kids.
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  That's that's a true win for them. And I can do that and spend a lot less money than putting
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  gold tile rods in. See what I mean? And it's a true win for them. And so, so that's really the the
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  litmus test is saying, okay, if I can truly put myself in your shoes as my investor, as my
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  employee, as my tenant, as my customer, put myself in your shoes and feel it from a heart standpoint.
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  What is it that you really need? And how can I create value for you in your life in this transaction?
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  That's a true win. Last last question on on on on this part of your life. Because I think it's
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  again, fascinating how you look at all these different commercial problems that entrepreneurs
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  are trying to solve for. What in this win-win-win abundance mindset environment? What's your view on
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  competition? I think competition is healthy. I really do. Now, I don't play in a competitive world.
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  I play on a creative plane because so many people are like, okay, I've got to crush my competition
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  to get ahead. And understand that as long as that competition is healthy and it's encouraging you
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  to play on a competitive on a creative plane, then that's good. If it's if it's tied to fear,
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  if it's tied to hatred, tied to crushing others and whatever else, then then that's not that's not
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  healthy. However, these are the kind of things that motivate us to be the best that we can be to
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  create something of value. And and and it doesn't have to be in a place where we're crushing others.
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  I like to use this example in playing on a creative plane instead of a competitive plane. So
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  there's an island. There's 10 families on this island. And there's 10 men and they go they go
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  fish in every day to get enough fish for their family. And they're competing. Oh, I caught
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  three fish today. I caught two. I only got one there. That's great. You know, that's motivating them.
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  But then two of the guys start thinking on a creative plane outside of this whole competition
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  thing. They're like, okay, well, can we do to make this easier and better for everybody? And those
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  two guys come up with this idea of a net. And so at night, when everybody else is watching the
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  fire and everything else, they're out there with their wives are so in this net. And sure
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  enough, this thing works. They go and they catch enough fish for the entire island. Now the problem
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  we have at this point is 80% unemployment, right? Because now you got eight guys that can't fish. Now
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  what do they do? Right? A dysfunctional system would either have these guys try to compete and
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  make a better net or a dysfunctional system would tax those two men 80% of their fish.
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  A well-functioning system would encourage those other eight men to do things like one would get
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  better at building boats and one would get better at building huts and one would get better at
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  educating the children. And lifestyle as a whole for the entire island increases because of the
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  creativity of those two guys that put together the net. Today, we live in a world just like that.
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  And yes, if you consider that competition of saying, hey, how can we create a better
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  maustrap? How can we create a better net away to fish? Then that's super healthy because we're
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  in this world of expansion and creation. But understand that if you, if somebody moves your
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  cheese, if you ever read that book, who moved my cheese, right? If something happens in your
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  industry where somebody creates a net and your job is no longer needed, understand that that's
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  the world that we live. And you can think on a creative plane and say, how can I continue
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  to add value to the world in a way where I can have financial security for my family coming back
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  to me because of the value that I'm adding. Thanks for tuning in. If you found this valuable,
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  don't forget to hit that subscribe button so you never miss an episode. And if you want to dive
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  deeper into this conversation, check out the links in the description to watch the full episode.
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  See you in the next one.