Latest / Earn Your Leisure / EYL #112 Big League feat. Darrell Freeman Sr.

Transcript

EYL #112 Big League feat. Darrell Freeman Sr. · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 0:23
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 0:28
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 0:31
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 0:35
  Speaker 1: are here illegally, your next you will be fined nearly
• 0:39
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 0:43
  Speaker 1: never return. But if you register using our CBP home
• 0:46
  Speaker 1: app and leave now, you could be allowed to return legally.
• 0:50
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 0:55
  Speaker 1: border and families will be protected.
• 0:57
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 1:01
  Speaker 3: All right, guys, welcome back. Ey L is still in Atlanta,
• 1:06
  Speaker 3: enjoying our time out here. And this is a this
• 1:08
  Speaker 3: is a very special episode for a few different yes, yes, yes,
• 1:12
  Speaker 3: so dal Freeman really, dal Freeman Senior, this is gonna
• 1:19
  Speaker 3: be an interesting conversation because so if your loyal listeners
• 1:22
  Speaker 3: are your leader, you know that we interviewed Swimming Husky.
• 1:27
  Speaker 3: Shout out to the whole team. So those guys have
• 1:30
  Speaker 3: a unique pizza operation that they're running, and they're from Nashville, Tennessee.
• 1:35
  Speaker 3: But now they have they have a shop in Memphis,
• 1:38
  Speaker 3: they have a couple of shops in Atlanta. They just
• 1:41
  Speaker 3: opened the Sacramento shop and that we were talking about.
• 1:44
  Speaker 3: You know that they're more than just restaurant tours there.
• 1:47
  Speaker 3: They have the real estate played behind it and all
• 1:49
  Speaker 3: of that. So when we did the episode, I guess
• 1:53
  Speaker 3: one of the guys have must forwarded to yeah, mister
• 1:58
  Speaker 3: Freeman and turns out that he's at one of their
• 2:00
  Speaker 3: mentors and business partners.
• 2:02
  Speaker 4: I just learned as well.
• 2:03
  Speaker 3: So that started the conversation of like, yo, yah should
• 2:08
  Speaker 3: interview him.
• 2:10
  Speaker 2: Was like he's the old Okay.
• 2:13
  Speaker 4: So it's like all.
• 2:14
  Speaker 3: Right, so keeping in the Nashville We've interviewed a few
• 2:18
  Speaker 3: people from Nashville.
• 2:19
  Speaker 4: Now out there we got snoop.
• 2:22
  Speaker 3: Right now, go to the plane part two.
• 2:29
  Speaker 2: You want to talk about first.
• 2:30
  Speaker 5: So this is the first time somebody flew into the
• 2:32
  Speaker 5: interview now commercial like literally like, hey, I'm leaving Tennessee
• 2:36
  Speaker 5: with my plane to fly to Atlanta right now.
• 2:38
  Speaker 4: He did. That's the first he did. He did.
• 2:40
  Speaker 3: He flew, he flew himself private plane to the airport,
• 2:45
  Speaker 3: did the interview, and then he's going Ferrari shop.
• 2:48
  Speaker 4: So it might be for this.
• 2:51
  Speaker 3: Dal Freeman so serial entrepreneur, founder of Zecon Zikon Computer
• 2:59
  Speaker 3: computer Services and is an IT company. He actually sold
• 3:03
  Speaker 3: to BG Staffing. I started in nineteen ninety one, sold
• 3:06
  Speaker 3: it in twenty seventeen for twenty three million dollars three million,
• 3:10
  Speaker 3: twenty three million.
• 3:11
  Speaker 4: You break it down for you, okay.
• 3:13
  Speaker 6: Twenty nineteen million cash making their stock and a three million.
• 3:17
  Speaker 3: Dollar okay, came to twenty twenty three million, has two
• 3:21
  Speaker 3: thousand dollars in it that you startarted with. That's a good,
• 3:25
  Speaker 3: great return, I know.
• 3:27
  Speaker 6: I mean there's a stock broke in here somewhere that
• 3:31
  Speaker 6: put those numbers.
• 3:33
  Speaker 3: Don't let that go over you, please don't, please don't.
• 3:36
  Speaker 3: He's also the co founder of Relyant Bank. He is
• 3:39
  Speaker 3: a real estate investor, big time real estate investor. He
• 3:44
  Speaker 3: is the co founder of Pinnacle Construction partners. He also
• 3:50
  Speaker 3: is a chairman of S three asset recycling solutions company.
• 3:55
  Speaker 3: Anything I'm missing, Troy uh. He has a two dollars
• 4:00
  Speaker 3: general he competed, he completed, not competed, completed ten iron
• 4:05
  Speaker 3: Man races.
• 4:06
  Speaker 4: Yes, I mean, and and he's a his stock investor.
• 4:13
  Speaker 2: So I think we got it all.
• 4:16
  Speaker 3: I'm trying to hit the table. So yeah, his reputation
• 4:22
  Speaker 3: precedes itself. So first and foremost having me thank you
• 4:25
  Speaker 3: for joining us. I was just about to say thank
• 4:26
  Speaker 3: you for joining us, no problem. So let's jump right
• 4:29
  Speaker 3: into it because this is an interesting conversation. I was
• 4:31
  Speaker 3: telling you, we've never had anybody that has sold their business.
• 4:35
  Speaker 3: We've had a couple of people that's been offered, you know, buyouts,
• 4:39
  Speaker 3: but they haven't taken it. So you've actually built, You
• 4:41
  Speaker 3: built a business, and then you sold the business, and
• 4:43
  Speaker 3: now you're in the process of actually helping other people
• 4:45
  Speaker 3: in teaching them that game.
• 4:47
  Speaker 4: Right, So can you.
• 4:49
  Speaker 3: Walk us through that that first process, because it's a
• 4:53
  Speaker 3: long process. From nineteen ninety one to twenty seventeen, that's
• 4:55
  Speaker 3: a long process. But how did what was that steps
• 4:58
  Speaker 3: into building that business and then selling that business?
• 5:01
  Speaker 6: So I started the company in the office the size
• 5:04
  Speaker 6: of a closet, with two thousand dollars in savings, my
• 5:07
  Speaker 6: wife's credit cords.
• 5:08
  Speaker 7: You're still married to it. Rights lost a couple of
• 5:11
  Speaker 7: credit cards a long way, but we got them back.
• 5:15
  Speaker 6: So it went from one person to about three hundred people.
• 5:20
  Speaker 6: And the main things that when you're building a business,
• 5:24
  Speaker 6: you want to build stability, You want to build you
• 5:28
  Speaker 6: want to get customs with long term contracts.
• 5:31
  Speaker 7: You want to create a history of.
• 5:33
  Speaker 6: Performance, and you want to build a business around people,
• 5:38
  Speaker 6: not around yourselves, around yourself. And so what happens most
• 5:41
  Speaker 6: of the times is the entrepreneur builds the business around
• 5:46
  Speaker 6: his or herself. And so I built the business from
• 5:51
  Speaker 6: nineteen ninety one to somewhere in two thousand and six
• 5:54
  Speaker 6: or seven. I built it from ten thousand and sales
• 5:57
  Speaker 6: to about sixteen million in sales. But I recognized that
• 6:01
  Speaker 6: I couldn't take it any further because I didn't have
• 6:04
  Speaker 6: the skill set. Oftentimes entrepreneurs are the CEOs because they
• 6:08
  Speaker 6: started the company, but they were really not qualified to
• 6:12
  Speaker 6: be the CEO. So I really wasn't qualified to be
• 6:14
  Speaker 6: the CEO. But since I owned off the stock, I
• 6:17
  Speaker 6: was the CEO. But I recognized one day when I
• 6:20
  Speaker 6: built this team of great people and the sales were
• 6:25
  Speaker 6: stagnant for a couple of years, I recognized it wasn't
• 6:28
  Speaker 6: the people that I built around me, that it was
• 6:31
  Speaker 6: me that was the problem. And so I fired myself.
• 6:37
  Speaker 6: So in building a business, don't build it around yourself.
• 6:40
  Speaker 6: Build it around people. Get loan, you know, be it
• 6:44
  Speaker 6: for long, long term contracts. Build it around people, established
• 6:49
  Speaker 6: long streams of revenue. So I fired myself and I
• 6:55
  Speaker 6: hired a CEO of a company that was one of
• 6:58
  Speaker 6: our competitors, and he had been with a company that
• 7:03
  Speaker 6: had gone from zero to over one hundred million, and
• 7:08
  Speaker 6: so I offered him the presidency of role at my company.
• 7:13
  Speaker 6: And so now you got this nice little package that
• 7:16
  Speaker 6: is not built around you that people are starting to
• 7:20
  Speaker 6: look at and say, man, I could buy that team
• 7:22
  Speaker 6: and that company. It's not Darell Freeman. It's actually a
• 7:27
  Speaker 6: company that stands on its own. So he took it
• 7:30
  Speaker 6: from sixteen million to about.
• 7:32
  Speaker 7: Forty million a year a year.
• 7:35
  Speaker 6: Okay, sixteen I'm sorry, sixteen million a year in revenue
• 7:38
  Speaker 6: to about forty million a year in revenue. Our conversations
• 7:42
  Speaker 6: would go like this. I would say, why don't we
• 7:45
  Speaker 6: try this? I was a chairman. He would say, he
• 7:48
  Speaker 6: would say back to me, when I tried that at
• 7:51
  Speaker 6: the other company, this is what happened.
• 7:55
  Speaker 7: So he came to the table with.
• 7:57
  Speaker 6: A bunch of experience, right, And so I built a
• 8:01
  Speaker 6: company around people got long term contracts. I had an
• 8:06
  Speaker 6: outstanding accounting department, because you need to have numbers. They
• 8:11
  Speaker 6: need to be they need to be numbers that are
• 8:15
  Speaker 6: all your TC's across all your ic to be dotted
• 8:18
  Speaker 6: every year. Even though I didn't have to. I got
• 8:21
  Speaker 6: a certified audit. I got all our numbers outed it
• 8:24
  Speaker 6: every year.
• 8:26
  Speaker 7: And so.
• 8:27
  Speaker 6: When we got to about forty million, we got it
• 8:33
  Speaker 6: was like a We got to forty million, but we
• 8:34
  Speaker 6: couldn't get any higher. And I recognized at that time
• 8:39
  Speaker 6: I had the forty million dollar team. I didn't have
• 8:42
  Speaker 6: the hundred million dollar team. It is before when I
• 8:45
  Speaker 6: was leading it, I had the sixteen million dollar team.
• 8:49
  Speaker 6: But for me to go from the forty million dollar
• 8:51
  Speaker 6: team to the hundred million dollar team, which was my
• 8:53
  Speaker 6: goal goal, I wouldn't need to replace those team members,
• 8:58
  Speaker 6: but those team members like family to me, and so
• 9:02
  Speaker 6: I decided at that point, as opposed to bring it
• 9:06
  Speaker 6: in a whole new team, that it was time to sell,
• 9:11
  Speaker 6: it was time to exit. And it was a perfect
• 9:14
  Speaker 6: point because many of our contracts were at the beginning
• 9:18
  Speaker 6: stages where they had their most value, and we had
• 9:21
  Speaker 6: a long history of stable customers that we had built,
• 9:25
  Speaker 6: and we had built it even though I'm an African American,
• 9:31
  Speaker 6: I did not build a black company.
• 9:34
  Speaker 7: I built a quality company. And so.
• 9:38
  Speaker 6: When you do that in the marketplace and you create
• 9:42
  Speaker 6: cash flow and consistent ebitdah, people recognized Green. So I
• 9:50
  Speaker 6: approached a a banker here in Atlanta and said, we're
• 9:55
  Speaker 6: interested in selling, and we talked about the business and
• 9:59
  Speaker 6: what it needs. You know, what needs to change in
• 10:01
  Speaker 6: the business, et cetera. Accept and I said, hey, I
• 10:03
  Speaker 6: can make those adjustments. And so we put the business.
• 10:06
  Speaker 6: We went through a process with the banker. Now, choosing
• 10:10
  Speaker 6: the banker is that's a very important decision because you
• 10:14
  Speaker 6: want to choose the best banker for your industry. So
• 10:16
  Speaker 6: I chose the best banker for the information technology staffing industry.
• 10:20
  Speaker 6: A banker that was selling two or three businesses a month.
• 10:24
  Speaker 6: I mean they were they knew who the buyers were,
• 10:27
  Speaker 6: they knew who was who would be interested. They knew
• 10:29
  Speaker 6: how my business should look.
• 10:30
  Speaker 2: And so how does that search process work?
• 10:32
  Speaker 5: Right, Like, if I'm a person that has I want
• 10:34
  Speaker 5: to sell the company, how do I know, like this
• 10:37
  Speaker 5: is the best person in the industry.
• 10:38
  Speaker 7: So I interviewed them.
• 10:40
  Speaker 4: Okay, I interviewed them.
• 10:42
  Speaker 6: So I wanted to see who was the best in
• 10:44
  Speaker 6: the business. So I called a couple of VC funds,
• 10:46
  Speaker 6: uh VC people and they said, well, if we're buying
• 10:49
  Speaker 6: a company, we normally will buy it from here. And
• 10:52
  Speaker 6: so we found a guy by the name Alan Bugler,
• 10:54
  Speaker 6: Child's advisor here in Atlanta.
• 10:57
  Speaker 7: He was terrific.
• 10:57
  Speaker 6: I mean he you know, he brought he brought the
• 11:01
  Speaker 6: So we put the package together. He brought the players
• 11:05
  Speaker 6: to potential buyers at the table, and we met with them,
• 11:08
  Speaker 6: had drinks with them, talk with them.
• 11:09
  Speaker 7: The first time.
• 11:10
  Speaker 6: The first offer was like fourteen million dollars, and I said, guys,
• 11:14
  Speaker 6: here's the other thing.
• 11:15
  Speaker 7: You gotta know what your value is. I knew that
• 11:18
  Speaker 7: wasn't the number.
• 11:19
  Speaker 2: You walked in with it in your mindset.
• 11:21
  Speaker 3: So how do you value Because all right, so if
• 11:24
  Speaker 3: you if you're making if the company is making forty
• 11:26
  Speaker 3: million a year gross gross, right, right, So how did
• 11:31
  Speaker 3: you decide? Because I always heard this like like was
• 11:33
  Speaker 3: it ten times the net that you're bringing in? Is
• 11:36
  Speaker 3: that like a rough hand.
• 11:37
  Speaker 7: No, So it varies, but it varies by industry.
• 11:41
  Speaker 6: So in the staffing business, at that time, business was
• 11:44
  Speaker 6: businesses were selling for anywhere from five to seven times
• 11:49
  Speaker 6: ebitdah and that uh, income before taxes, interest, appreciation and
• 11:58
  Speaker 6: some other.
• 11:59
  Speaker 4: Okay, that's happening.
• 12:02
  Speaker 6: So where they where they they.
• 12:04
  Speaker 7: Kind of level out.
• 12:05
  Speaker 6: You know, what the business is worth if you take
• 12:07
  Speaker 6: out if you take out what you paid in taxes,
• 12:10
  Speaker 6: what you paid out and depreciation, what you paid out
• 12:13
  Speaker 6: I think I said taxes, what you put out an interest,
• 12:16
  Speaker 6: and so it kind of puts the business on a
• 12:19
  Speaker 6: level playing field. So you strip all those things out
• 12:21
  Speaker 6: and find out what the actual cash flow of the businesses.
• 12:24
  Speaker 6: And so in our business, I sold it for about
• 12:28
  Speaker 6: five six times ibad.
• 12:31
  Speaker 7: Uh and so that's what it was true. That's a
• 12:33
  Speaker 7: lot of business was selling for.
• 12:34
  Speaker 6: Now I am now in the recycling business information technology
• 12:39
  Speaker 6: recycling business business. The multiple for ebadad sales for in
• 12:45
  Speaker 6: this business is eight to fourteen times, so it has
• 12:48
  Speaker 6: a chance to be way more valuable right than the
• 12:51
  Speaker 6: first one. And so that's how you so you took me.
• 12:54
  Speaker 6: You determine what your ebadat is and then you know
• 12:57
  Speaker 6: in the marketplace what we're trades at. And one way
• 13:01
  Speaker 6: you can do that is you can go to the
• 13:02
  Speaker 6: stock market and find an IT company. You look at
• 13:04
  Speaker 6: their stock and see where it's trading at the market cap,
• 13:07
  Speaker 6: and then you look at their ebadah. Then you can
• 13:10
  Speaker 6: capulate the multiple from that because what the market cap
• 13:14
  Speaker 6: is what the company is selling at.
• 13:16
  Speaker 3: So so you sold, all right, so five times what
• 13:20
  Speaker 3: you were kind of bringing in that for layman terms
• 13:25
  Speaker 3: kind of similar to that, similar to that, So you
• 13:28
  Speaker 3: knew you had that twenty million dollar number. So when
• 13:31
  Speaker 3: they came in fourteen the first offer, what was your
• 13:34
  Speaker 3: response like, was it a negotiation or what? Just like
• 13:39
  Speaker 3: fled out no good, okay, yah good? And how many
• 13:42
  Speaker 3: other offers came before that twenty million?
• 13:45
  Speaker 6: Officers came in different ranges And so sometimes people they
• 13:49
  Speaker 6: may offer you that, they may say, well, hey, we'll
• 13:51
  Speaker 6: give you fourteen million cash cash, we'll give you four
• 13:55
  Speaker 6: million of our stock and another four million in earnout.
• 13:58
  Speaker 6: So all I can about was cash, because if I
• 14:02
  Speaker 6: took your stock and they didn't do anything, and if
• 14:05
  Speaker 6: your stock is private, it's worseeness to me. Right, And
• 14:11
  Speaker 6: if I took four million in earnout, earnout means I
• 14:14
  Speaker 6: got to perform for a certain period of.
• 14:16
  Speaker 7: Time to get that. Well, I didn't want that.
• 14:21
  Speaker 6: I wanted the majority of the sale to be cash.
• 14:26
  Speaker 7: And so so the.
• 14:29
  Speaker 6: Nineteen million cash and a million of stock that was
• 14:33
  Speaker 6: publicly traded that actually doubled when I had it.
• 14:39
  Speaker 4: So and then we want to three million earnout.
• 14:42
  Speaker 2: Yeah, that's the part I'm thinking about. So the earn
• 14:44
  Speaker 2: out part, are you still working?
• 14:46
  Speaker 5: You sell the company, but you're still working, and you
• 14:48
  Speaker 5: have like things you need to meet, goals you need
• 14:50
  Speaker 5: to meet to reach the three million.
• 14:53
  Speaker 6: I'm gonna now, I'm gonna take you back to when
• 14:55
  Speaker 6: I fired myself and hire the person the earnout. So
• 14:59
  Speaker 6: it was nineteen million cash on April third and a
• 15:05
  Speaker 6: milligan stopped. Then a three million dollar earnout that was
• 15:09
  Speaker 6: over a two year period based on the company's performance. Right,
• 15:16
  Speaker 6: And so since I had a team in place, I
• 15:20
  Speaker 6: didn't have to go and do that performance. Because we
• 15:23
  Speaker 6: had a team in place that was running the company.
• 15:26
  Speaker 6: And when the when BG Staffing bought my company, I
• 15:31
  Speaker 6: explained to them that I had a CEO and a
• 15:35
  Speaker 6: great management team and that they ran the company that
• 15:38
  Speaker 6: I didn't. And so they put some targets out there
• 15:41
  Speaker 6: for us to hit, for the team to hit get
• 15:44
  Speaker 6: to the three million.
• 15:45
  Speaker 2: I have one hundred million dollar team, definitely the US.
• 15:48
  Speaker 7: They hit the numbers. I got the three million.
• 15:51
  Speaker 6: Now what I also did when I sold the company,
• 15:53
  Speaker 6: there was a there was a group of people that
• 15:54
  Speaker 6: had been with me for a long time.
• 15:57
  Speaker 4: Ask about that.
• 15:59
  Speaker 7: They built me for a long time.
• 16:02
  Speaker 6: And I had a good friend of mine who started
• 16:04
  Speaker 6: the company with me back in nineteen ninety one, who
• 16:06
  Speaker 6: had retired a whole bunch of years back. And so
• 16:11
  Speaker 6: I called them all into a room and I said,
• 16:14
  Speaker 6: you all have been with me for a long time.
• 16:15
  Speaker 6: I remember I just got the wire. And I said,
• 16:18
  Speaker 6: here's a check. Here's a check for you, a check
• 16:20
  Speaker 6: for you, a check for you, big checks that they
• 16:24
  Speaker 6: ain't never seen before. And then one individual has two
• 16:31
  Speaker 6: he had two small kids, and I said to him,
• 16:36
  Speaker 6: I said, I know why.
• 16:37
  Speaker 7: You're working, because he was my age. You know why
• 16:40
  Speaker 7: you're working.
• 16:40
  Speaker 6: You got two small kids. You're working because college fund,
• 16:43
  Speaker 6: et cetera, et cetera. I said, what I want you
• 16:45
  Speaker 6: to do is you go home to your wife and
• 16:48
  Speaker 6: you find out from her what it's going to take
• 16:50
  Speaker 6: to send your two kids to college. These kids for
• 16:54
  Speaker 6: eight ten years old. You go home and find out
• 16:57
  Speaker 6: what's going to take to send them to college. I'm
• 17:00
  Speaker 6: back tomorrow and let me know what that number is.
• 17:02
  Speaker 6: He went home, He came back, tell me what the
• 17:05
  Speaker 6: number was. I told myself, go in his office and
• 17:08
  Speaker 6: cut the check for that number. When you build a
• 17:12
  Speaker 6: business around people, you got to take care of your people,
• 17:15
  Speaker 6: and you got to realize that the people that are
• 17:17
  Speaker 6: on your team, they.
• 17:19
  Speaker 7: Are the ones that make the company valuable.
• 17:22
  Speaker 4: It's not you.
• 17:24
  Speaker 6: So you see all you see a bunch of companies
• 17:26
  Speaker 6: today where they built the companies around them themselves.
• 17:32
  Speaker 7: You can't grow that way. When everything has to flow
• 17:35
  Speaker 7: through you.
• 17:36
  Speaker 6: It's hard to grow, and it's not you're not building
• 17:40
  Speaker 6: value because if you want to go sell it, they
• 17:43
  Speaker 6: know that if you if you get hit by a
• 17:46
  Speaker 6: bus tomorrow, you that the party's over. But if you
• 17:49
  Speaker 6: build a team that has value.
• 17:53
  Speaker 5: Can we go back just for a second, because I'm thinking,
• 17:55
  Speaker 5: and I guess in twenty twelve, when you decided, like,
• 17:57
  Speaker 5: in order for this company to grow, I need to
• 17:59
  Speaker 5: set back to find myself. What's that process like? Is
• 18:02
  Speaker 5: it like a you have to like weigh these things
• 18:04
  Speaker 5: in the mirror. It's like, because I don't imagine this
• 18:07
  Speaker 5: is like an ego check or it's a humbling experience.
• 18:09
  Speaker 7: That's That's the other thing. You don't need to have
• 18:12
  Speaker 7: an ego as an entrepreneur. You have confidence, but you
• 18:16
  Speaker 7: don't need to have an ego. So I knew, now.
• 18:20
  Speaker 6: Mind you, at sixteen million a year, I had a
• 18:23
  Speaker 6: great lifestyle. I had a plane, but it wasn't I mean,
• 18:26
  Speaker 6: I had.
• 18:26
  Speaker 7: A little plane. It wasn't a plane I got now,
• 18:31
  Speaker 7: but I had a little plan.
• 18:32
  Speaker 2: I was thinking, like I had a car but okay,
• 18:35
  Speaker 2: But but.
• 18:36
  Speaker 7: It was a comfortable lifestyle.
• 18:39
  Speaker 6: But for the people around me to grow and to develop,
• 18:46
  Speaker 6: I needed to grow that company to help them grow
• 18:49
  Speaker 6: and develop.
• 18:50
  Speaker 2: You got you.
• 18:52
  Speaker 6: You know people that have been with you for ten years.
• 18:54
  Speaker 6: One start out as a junior accountant. For me to
• 18:56
  Speaker 6: need a CFO, I need to grow that company so
• 18:59
  Speaker 6: she could grow into that role. And so growing a
• 19:04
  Speaker 6: company for me was more so about the people than
• 19:08
  Speaker 6: the money. When when I sold the company, now I
• 19:13
  Speaker 6: told you I started with two thousands and savings.
• 19:17
  Speaker 7: My payroll was two My payroll was a million dollars every.
• 19:21
  Speaker 2: Two weeks in ninety one.
• 19:24
  Speaker 6: No, fifteen, sixteen, seventeen, it was a million dollars every
• 19:31
  Speaker 6: two weeks. It was about the people, and so we
• 19:36
  Speaker 6: ran a company that was about the people. I'm doing
• 19:39
  Speaker 6: the same thing with Street Recycling Solutions. It's about the people.
• 19:44
  Speaker 3: So when you walk away with the twenty million, a
• 19:47
  Speaker 3: couple questions I have about.
• 19:48
  Speaker 4: That, it's good, I assume.
• 19:51
  Speaker 7: So I'm gonna do it again way more.
• 19:54
  Speaker 3: I believe. I believe what is the strategy to mitigate taxes?
• 19:58
  Speaker 4: Is that? Or you just have because it's like ordinary
• 20:01
  Speaker 4: income right now?
• 20:01
  Speaker 6: No, it's not ordinary income. It's uh, it's tax capital games.
• 20:05
  Speaker 6: It's like a stock cap. Okay, but you do. But see,
• 20:11
  Speaker 6: you go through all that math in your head when
• 20:14
  Speaker 6: you set the number twenty million, and whatever the number
• 20:16
  Speaker 6: you set, you set that number in your head, and
• 20:18
  Speaker 6: then you go through. You meet with your turney and say,
• 20:20
  Speaker 6: this is what the deal looks like. You meet with
• 20:22
  Speaker 6: your accountant. This is what the deal's look deal looks like,
• 20:25
  Speaker 6: and then they tell you at the end of all
• 20:28
  Speaker 6: of that, what you're going to have. And then you
• 20:30
  Speaker 6: go to your wife and say, Okay, this is what
• 20:32
  Speaker 6: it's going to be, and you realize that you're set.
• 20:36
  Speaker 6: Like if you can't go out and do stupid stuff,
• 20:39
  Speaker 6: but if you go out and make reasonable investments, you're good.
• 20:43
  Speaker 6: Your kids are good. And if you make reasonable investments,
• 20:47
  Speaker 6: their kids are good. And so it wasn't a big
• 20:51
  Speaker 6: It wasn't a and for me, unlike somebody who gets
• 20:56
  Speaker 6: a big contract to play some sport, I had accumulated
• 21:01
  Speaker 6: over the years all the things that we had wanted,
• 21:04
  Speaker 6: you know what I mean, I didn't I didn't have
• 21:05
  Speaker 6: to go out and buy another house. We already had
• 21:07
  Speaker 6: a house. I need to go out and buy a
• 21:09
  Speaker 6: car if we already I mean, all the things that
• 21:11
  Speaker 6: we had wanted, all the we had ran it. We
• 21:13
  Speaker 6: had lived a pretty simple lifestyle. I mean, I had
• 21:18
  Speaker 6: to plane this big, but I could have afforded a
• 21:21
  Speaker 6: plane this big, but I didn't. And so that's the
• 21:24
  Speaker 6: other thing is stay in your lane. You always stayed
• 21:28
  Speaker 6: in our financial lane, even though our lane may have
• 21:30
  Speaker 6: been this big we lived in this part. So even
• 21:35
  Speaker 6: today I stay in my lane. People said, well, why
• 21:37
  Speaker 6: don't you buy jet? I ain't in my lane.
• 21:41
  Speaker 4: Yeah I got.
• 21:42
  Speaker 6: If I brought a jet I got, I might have
• 21:44
  Speaker 6: to think about the few costs I might have to
• 21:47
  Speaker 6: think about it.
• 21:48
  Speaker 7: The plane I got, Now I have to think about it.
• 21:51
  Speaker 3: And you stayed on what after you sold the company's
• 21:54
  Speaker 3: we still with him?
• 21:58
  Speaker 4: Yeah?
• 21:58
  Speaker 6: So I had a two year out, so to sign
• 22:00
  Speaker 6: a two year contract with them to be on their
• 22:04
  Speaker 6: team for two years. It turned into it's a It
• 22:09
  Speaker 6: turned into it turned out to be a great relationship
• 22:12
  Speaker 6: because their CEO and me similar attitudes towards people. That
• 22:19
  Speaker 6: the company is built on people, and so it's a
• 22:21
  Speaker 6: great partnership. So when they when the two years were over,
• 22:24
  Speaker 6: they said, let's do it again. And then three years came,
• 22:27
  Speaker 6: they said, let's.
• 22:28
  Speaker 7: Do it again.
• 22:28
  Speaker 2: Is it the same CEO that you brought in?
• 22:30
  Speaker 6: No, this is the CEO of the company that bought
• 22:32
  Speaker 6: my company. O. Now, the cool part about the people
• 22:36
  Speaker 6: that were.
• 22:36
  Speaker 7: On the people that were on my team.
• 22:40
  Speaker 6: Most of them are still there and they've taken on
• 22:44
  Speaker 6: more responsibilities.
• 22:45
  Speaker 7: So when this company went out and.
• 22:46
  Speaker 6: Bought other companies, they asked my CEO to run those companies.
• 22:53
  Speaker 2: Let's been ton, let's spend ton.
• 22:56
  Speaker 7: So so it's all about having the right people on
• 22:58
  Speaker 7: your team.
• 22:59
  Speaker 5: When when you had and correct me if I'm wrong,
• 23:02
  Speaker 5: did you you own the land that the company was
• 23:04
  Speaker 5: on or you know, because that's that's that's the other
• 23:09
  Speaker 5: play to it, because it's like, yeah, you stall the company,
• 23:11
  Speaker 5: but you're still on the land.
• 23:12
  Speaker 6: Yes, And so Zach Clark spent a number of years.
• 23:18
  Speaker 4: You know.
• 23:18
  Speaker 6: Well, first of all, at the beginning, I couldn't buy
• 23:20
  Speaker 6: anything right right, right right. We were paying our office
• 23:23
  Speaker 6: space one hundred and fifty square feet. Our rent was
• 23:25
  Speaker 6: one hundred and fifty dollars. Then I moved to the
• 23:27
  Speaker 6: National Business Incubation Center, where we stayed.
• 23:29
  Speaker 7: For five years.
• 23:31
  Speaker 6: Kind of a low rent incubator, help us grow kind
• 23:34
  Speaker 6: of place. Then when we left there, I bought a building, yeah,
• 23:39
  Speaker 6: in North Nashville over the other projects. And people are like, well,
• 23:44
  Speaker 6: why would you buy all? That's because I wanted to
• 23:46
  Speaker 6: be an inspiration to the people in this neighborhood and
• 23:50
  Speaker 6: so and.
• 23:51
  Speaker 7: Plus I bought the building. It's our building.
• 23:56
  Speaker 6: I'd rather have a place that I own in my
• 24:00
  Speaker 6: neighborhood or our neighborhood, then be renting at some twenty
• 24:05
  Speaker 6: five story office building in the middle of downtown.
• 24:09
  Speaker 7: I want to own it.
• 24:11
  Speaker 6: Where I grew up my family, there was five groups,
• 24:13
  Speaker 6: five families, my mom, her sisters.
• 24:17
  Speaker 7: We were all renters. I don't want to rent. I
• 24:21
  Speaker 7: don't want to rent. I don't want to read nothing.
• 24:24
  Speaker 7: I don't want to read a car. I don't want
• 24:27
  Speaker 7: to rent nothing.
• 24:28
  Speaker 6: And so, yeah, we bought the building, and then we
• 24:31
  Speaker 6: outgrew that building, but I kept it, and.
• 24:33
  Speaker 7: Now it's least we bought another building.
• 24:36
  Speaker 4: I kept it.
• 24:38
  Speaker 6: The company that bought my company stayed in it for
• 24:40
  Speaker 6: a year, paid me rent for a year, and then yeah.
• 24:44
  Speaker 2: That's amazing, that's incredible.
• 24:46
  Speaker 4: Love it. That's it. That's the key.
• 24:49
  Speaker 6: But I'll tell you a funny story about that building.
• 24:51
  Speaker 6: So they stayed in it for a year, and then
• 24:55
  Speaker 6: I decided it wasn't a good decision.
• 24:58
  Speaker 7: I decided I was going to sell it.
• 25:00
  Speaker 6: So I bought it for six hundred thousand, put three
• 25:04
  Speaker 6: hundred thousand dollars in it. So now I got nine
• 25:07
  Speaker 6: hundred thousand in it. I decided in twenty seventeen, after
• 25:11
  Speaker 6: two thousand twenty eighteen, seventeen eighteen that I was going
• 25:16
  Speaker 6: to sell that building. I put on them work for
• 25:19
  Speaker 6: two point four million, and a guy came and said,
• 25:23
  Speaker 6: I'll give you two million for it, take it or
• 25:25
  Speaker 6: leave it.
• 25:27
  Speaker 7: I didn't like the way he talked to me. I
• 25:32
  Speaker 7: told him to get lost.
• 25:35
  Speaker 6: He talked to me as though I needed to have
• 25:37
  Speaker 6: the that I need, like I needed the money, like
• 25:39
  Speaker 6: it was a desperate And then I got there thinking about, man,
• 25:43
  Speaker 6: all these years I've been buying real estate, why should
• 25:46
  Speaker 6: I start selling now? So now, my daughter on vacation
• 25:50
  Speaker 6: at our home in the Bahamas last week, she came
• 25:52
  Speaker 6: up with a new mission statement, which is the Freemans
• 25:55
  Speaker 6: ain't selling nothing no more real estate wise, that's our
• 25:59
  Speaker 6: new mission stake. We ain't selling nothing. State was because
• 26:05
  Speaker 6: real estate you think about when you have kids and
• 26:07
  Speaker 6: they have kids, and they have.
• 26:08
  Speaker 7: Kids, it's easily you could easily pass it down.
• 26:11
  Speaker 6: So yeah, so where was that Chrumbin was located the
• 26:15
  Speaker 6: corporate office now in our sellite office.
• 26:17
  Speaker 7: We didn't own those spaces all right.
• 26:18
  Speaker 5: So in that process, and I'm thinking, when does the
• 26:22
  Speaker 5: Pinnacle Construction Partners come in?
• 26:23
  Speaker 2: Because if you're buying the real estate and maybe you're building.
• 26:26
  Speaker 5: It was that the vision like I'm going to have
• 26:28
  Speaker 5: a construction company in the event that I body spaces.
• 26:31
  Speaker 6: No Pinnacle construction company came out of a large there
• 26:36
  Speaker 6: was a large convention center being built in Nashurally. I
• 26:39
  Speaker 6: can't think of the year that it was two thousand
• 26:42
  Speaker 6: and seven, two thousand and eight. And so me and
• 26:44
  Speaker 6: a friend of mine named Michael Carter, we pursued that
• 26:47
  Speaker 6: opportunity with another company, and the other company thought that,
• 26:53
  Speaker 6: you know, they thought that we started the company just
• 26:56
  Speaker 6: to be a part of that build process, to be
• 26:59
  Speaker 6: to be like the minority partner. And I said, I'm
• 27:01
  Speaker 6: not starting any businesses to be a minority partner, just
• 27:06
  Speaker 6: to be a minority partner. So we didn't win that deal,
• 27:09
  Speaker 6: but we hired a great CEO to run a company,
• 27:13
  Speaker 6: and then.
• 27:14
  Speaker 7: We didn't win that, But we want a whole bunch
• 27:16
  Speaker 7: of other things.
• 27:17
  Speaker 6: And so that business has been in business since two
• 27:19
  Speaker 6: thousand and seven and it's located in our building.
• 27:25
  Speaker 3: So yeah, So the Slim and Huskies play, like you said,
• 27:28
  Speaker 3: we talked about this with them. But Ray Krop and
• 27:31
  Speaker 3: the founders when he said that McDonald's when he felt, well,
• 27:33
  Speaker 3: somebody enlightened him, like McDonald's isn't a burger company, it's
• 27:38
  Speaker 3: a real estate company. So can you talk about that
• 27:40
  Speaker 3: just a little bit more like as far as how
• 27:42
  Speaker 3: you enlightened the guys and how that's your play where
• 27:44
  Speaker 3: it's like, even if you sell a business, you still
• 27:45
  Speaker 3: own the real estate and then that company will have
• 27:48
  Speaker 3: to pay you, so you still make money even if
• 27:51
  Speaker 3: you sell.
• 27:51
  Speaker 4: So you talk about that a little bit.
• 27:52
  Speaker 6: Yeah, So when I met the Slim and Huskies, guys,
• 27:56
  Speaker 6: first of all, brigant, process driven, way more process driven
• 28:05
  Speaker 6: than me. I mean, these guys are about the nuts
• 28:09
  Speaker 6: and the boats, the t's and crossing the t's and
• 28:12
  Speaker 6: dotting the eyes.
• 28:14
  Speaker 7: These guys are solid. And so when I met him,
• 28:17
  Speaker 7: we started talking.
• 28:18
  Speaker 6: I said, guys, you know, yes, you're in the piece
• 28:20
  Speaker 6: of business, but you're really in the real estate business,
• 28:24
  Speaker 6: whether you know that or not. And so why don't
• 28:28
  Speaker 6: you know, why don't we schedule some time to visit
• 28:30
  Speaker 6: my home in the Bahamas, will fly down on my plane,
• 28:33
  Speaker 6: talk about your strategy and where it is, and you know,
• 28:38
  Speaker 6: come up with a real estate play.
• 28:39
  Speaker 4: And so.
• 28:41
  Speaker 6: We did that, and so now we own three buildings
• 28:45
  Speaker 6: and we've signed long term leases with the operating company.
• 28:48
  Speaker 6: And so now they're running from themselves. I mean, and
• 28:52
  Speaker 6: it's a great play in the event somewhere down the
• 28:56
  Speaker 6: road fifty years, one hundred years, that they sell that
• 28:58
  Speaker 6: company and they still own the real est. They don't
• 29:00
  Speaker 6: have they don't have to sell the real estate. They
• 29:02
  Speaker 6: just sell the company and continue to get the rental income.
• 29:05
  Speaker 6: So they're making money twice, making money on the pizza
• 29:10
  Speaker 6: like McDonald's making money own the hamburger, and they're making
• 29:13
  Speaker 6: money on the real estate like McDonald's making real estate.
• 29:16
  Speaker 6: So when you see a McDonald's franchise z that don't
• 29:19
  Speaker 6: own the real estate, I mean, they're just McDonald's is
• 29:23
  Speaker 6: sending them supplies for burgers to sell so that they
• 29:27
  Speaker 6: can pay McDonald's rent.
• 29:29
  Speaker 7: I mean that's I.
• 29:31
  Speaker 3: Mean that they have to pay the defeat, which is
• 29:35
  Speaker 3: like a million dollars something like that, just to open
• 29:37
  Speaker 3: the franchise, and they have to pay the rent.
• 29:40
  Speaker 6: And then McDonald's every so many years can come to
• 29:42
  Speaker 6: you and say, hey, we really don't like this location
• 29:45
  Speaker 6: no more. We're gonna shut this location down. You are
• 29:48
  Speaker 6: a business, but if you don't own the real estate.
• 29:50
  Speaker 6: I mean, but if you own the real estate, you
• 29:51
  Speaker 6: can say, okay, McDonalds, y'all, you all can go. I'm
• 29:54
  Speaker 6: gonna put something else in here. That's why I like
• 29:57
  Speaker 6: owning everything everything.
• 30:01
  Speaker 3: So talk about that triple net lease. What is a
• 30:05
  Speaker 3: triple net lease?
• 30:06
  Speaker 6: A triple net least, I'll give you, as I told
• 30:09
  Speaker 6: you guess before when I walked in. I don't talk
• 30:11
  Speaker 6: about anything that I hadn't done. So triple at least
• 30:15
  Speaker 6: triple at leases. So a tripple at least is For example,
• 30:20
  Speaker 6: I owned a couple of Dollar General stores. Right, I
• 30:25
  Speaker 6: owned the building. I don't own the operations, own the
• 30:27
  Speaker 6: building and the land. Right so I signed at the
• 30:31
  Speaker 6: time the leases were twelve years. That twelve years remaining
• 30:35
  Speaker 6: with option for another twenty years after the twelve and
• 30:40
  Speaker 6: so in that lease agreement it says that Dollar General
• 30:43
  Speaker 6: is responsible for the maintenance. So if there's something goes
• 30:47
  Speaker 6: wrong with the building of waterline break.
• 30:51
  Speaker 2: Erness, what's up?
• 30:52
  Speaker 5: You ever walk into a small business and everything just
• 30:54
  Speaker 5: works like the checkout is fast, the receipts of digital
• 30:58
  Speaker 5: tipping is a breeze, and you're out the door before
• 31:01
  Speaker 5: the line even builds odds are they're using Square. We
• 31:05
  Speaker 5: love supporting businesses that run on Square because it just
• 31:08
  Speaker 5: feels seamless. Whether it's a local coffee shop, a vendor
• 31:11
  Speaker 5: at a pop up market, or even one of our
• 31:14
  Speaker 5: merch partners, Square makes it easy for them to take payments,
• 31:17
  Speaker 5: manage inventory, and run their business with confidence, all from
• 31:21
  Speaker 5: one simple system. If you're a business owner or even
• 31:25
  Speaker 5: just thinking about launching something soon, Square is hands down
• 31:28
  Speaker 5: one of the best tools out there to help you start,
• 31:31
  Speaker 5: run and grow. It's not just about payments, it's about
• 31:35
  Speaker 5: giving you time back so you can focus on what
• 31:37
  Speaker 5: matters most ready. To see how Square can transform your business,
• 31:41
  Speaker 5: visit Square dot com backslash go backslash eyl to learn
• 31:46
  Speaker 5: more that Square dot com backslash, go backslash eyl. Don't wait,
• 31:51
  Speaker 5: don't hesitate. Let's Square handle the back end so you
• 31:54
  Speaker 5: can keep pushing your vision forward. This episode is brought
• 32:01
  Speaker 5: to you by P and C Bank. A lot of
• 32:02
  Speaker 5: people think podcasts about work are boring, and sure, they
• 32:06
  Speaker 5: definitely can be, but understanding a professional's routine shows us
• 32:10
  Speaker 5: how they achieve their success little by little, day after day.
• 32:15
  Speaker 5: It's like banking with P and C Bank. It might
• 32:17
  Speaker 5: seem boring the safe plan and make calculated decisions with
• 32:20
  Speaker 5: your bank, but keeping your money boring is what helps
• 32:23
  Speaker 5: you live a more happily fulfilled life. P and C
• 32:26
  Speaker 5: Bank Brilliantly Boring since eighteen sixty five. Brilliantly Boring since
• 32:32
  Speaker 5: eighteen sixty five is a service mark of the PNC
• 32:34
  Speaker 5: Financial Service Group, Inc. P and C Bank National Association
• 32:39
  Speaker 5: Member FDIC.
• 32:42
  Speaker 8: You just realized your business needed to hire someone yesterday?
• 32:46
  Speaker 8: How can you find amazing candidates fast? Easy? Just use
• 32:50
  Speaker 8: Indeed stop struggling to get your job post seen on
• 32:54
  Speaker 8: other job sites. With Indeed sponsored jobs, your post jumps
• 32:58
  Speaker 8: to the top of the page for your relevant carendidates,
• 33:00
  Speaker 8: so you can reach the people you want faster. According
• 33:03
  Speaker 8: to Indeed data, sponsored jobs posted directly on Indeed have
• 33:07
  Speaker 8: forty five percent more applications than non sponsored jobs. Don't
• 33:11
  Speaker 8: wait any longer, speed up your hiring right now with Indeed,
• 33:15
  Speaker 8: and listeners of this show will get a seventy five
• 33:18
  Speaker 8: dollars sponsored job credit to get your jobs more visibility
• 33:21
  Speaker 8: at indeed dot com slash pod Katz thirteen. Just go
• 33:27
  Speaker 8: to Indeed dot com slash pod Katz thirteen right now
• 33:32
  Speaker 8: and support our show by saying you heard about Indeed
• 33:34
  Speaker 8: on this podcast. Terms and conditions apply. Hiring Indeed is
• 33:39
  Speaker 8: all you need.
• 33:41
  Speaker 6: Proof get damaged. They're responsible for paying that. They're also
• 33:47
  Speaker 6: responsible for paying the taxes. So if the taxes go
• 33:51
  Speaker 6: up from ten thousand dollars this year to twenty thousand
• 33:54
  Speaker 6: next year, they're responsible for the taxes, and they're also
• 33:58
  Speaker 6: responsible for paying the insurance.
• 34:00
  Speaker 7: Triple net leaks. They're going to pay for the maintenance,
• 34:03
  Speaker 7: the insurance, and the taxes. You're going to get every
• 34:06
  Speaker 7: mind it's a check.
• 34:07
  Speaker 4: So why would somebody do that?
• 34:09
  Speaker 3: Because it's like to my brain, at least the landlord
• 34:11
  Speaker 3: is not what is The landlord is not responsible.
• 34:13
  Speaker 7: For anything nothing. I'm not responsible for anything.
• 34:16
  Speaker 4: Why would the tenant? Why would a tenant do that?
• 34:17
  Speaker 6: The market allows that, I mean they they they all
• 34:21
  Speaker 6: their stores are triple that least. So when you look
• 34:23
  Speaker 6: at the Walgreens or Dollar General, a lot of them
• 34:27
  Speaker 6: have triple net least triple that leases.
• 34:29
  Speaker 2: Those locations have to play into that in that process well.
• 34:32
  Speaker 6: And so in the case of Dollar General, they picked
• 34:35
  Speaker 6: their locations where they want to be and oftentimes they
• 34:37
  Speaker 6: don't hire a developer to go build a building right
• 34:41
  Speaker 6: where they wanted, and then an investor like me will
• 34:45
  Speaker 6: come and buy the building from the developer. So Dollar
• 34:50
  Speaker 6: General owns a bunch of they don't I'm sorry, they
• 34:53
  Speaker 6: have a bunch of stores that they least they don't own.
• 34:57
  Speaker 4: M hm.
• 34:58
  Speaker 6: So there model is not like McDonald's.
• 35:03
  Speaker 3: Like even Walmart. Don't think Walmart owned they did you
• 35:06
  Speaker 3: think about this? They just leased to space.
• 35:08
  Speaker 4: Least to space.
• 35:09
  Speaker 6: So for example, uh Me and some French coach founded
• 35:13
  Speaker 6: the bank. We started the process in two thousand and four.
• 35:15
  Speaker 6: We opened a bank in two thousand and six. The
• 35:19
  Speaker 6: first two buildings that we built for the bank, we
• 35:21
  Speaker 6: owned them. And so I mean we put that as
• 35:25
  Speaker 6: a part of the perspectives that the board, some of
• 35:28
  Speaker 6: the board members will owned the buildings. So we owned
• 35:33
  Speaker 6: the buildings for the first several years. And then once
• 35:35
  Speaker 6: we went public that that transaction, we needed to sell
• 35:40
  Speaker 6: the buildings because it looked like we were we had
• 35:43
  Speaker 6: both our hands and.
• 35:45
  Speaker 7: You know we were.
• 35:46
  Speaker 6: It didn't look well to the public guy because now
• 35:49
  Speaker 6: we became a public company. You know, you don't want
• 35:52
  Speaker 6: to be on the board and getting a check from
• 35:55
  Speaker 6: the bank for rent and so. But initially we before
• 35:59
  Speaker 6: when we were private, we own the buildings, two of
• 36:02
  Speaker 6: the buildings.
• 36:03
  Speaker 2: So the CEO of the Dollar Generals that you own
• 36:06
  Speaker 2: is Rod McDaniel.
• 36:08
  Speaker 6: No, no, no, no, se I don't remember, yeah, because
• 36:12
  Speaker 6: I'm thinking think about this. Yeah, I own two dollars
• 36:17
  Speaker 6: general stores. I do nothing with operations, Okay, I'm not
• 36:22
  Speaker 6: responsible for anything, nothing but going to the mailbox on
• 36:27
  Speaker 6: the thirtieth to get the checks. When you sign a
• 36:31
  Speaker 6: trip on at least you're responsible for You're not responsible
• 36:33
  Speaker 6: for responsible for anything. So there's the CEO of Dollar General,
• 36:37
  Speaker 6: some man or woman in Nashville that's running one hundred
• 36:41
  Speaker 6: dollars general stores and they're sending a checkout to each
• 36:44
  Speaker 6: Dollar General store owner every month.
• 36:47
  Speaker 7: But they're doing they're managing the operations.
• 36:49
  Speaker 4: Yeah.
• 36:50
  Speaker 5: No, So I was saying from the standpoint of like
• 36:52
  Speaker 5: when you did that Donald Generaldsdal and even the slim
• 36:54
  Speaker 5: Huskys things. The people that you're working with are guys
• 36:57
  Speaker 5: that you've been mentoring, Yes, right, and so, and one
• 37:01
  Speaker 5: of the toughest things to do in starting a business
• 37:04
  Speaker 5: is getting funding and so like yeah, it is you
• 37:07
  Speaker 5: kind of you know, streamlined that process by creating Aliant Bank, yes,
• 37:12
  Speaker 5: and so like now when you have your mentors and
• 37:15
  Speaker 5: they want to start a business, it's like, hey, I
• 37:17
  Speaker 5: got a place for you guys.
• 37:19
  Speaker 2: Can you talk about like the thought process behind that or.
• 37:21
  Speaker 6: So starting the bank, it was starting the bank was
• 37:26
  Speaker 6: a unique opportunity. A friend of mine named Farzane for
• 37:28
  Speaker 6: those in the van or came to me and said, Hey,
• 37:30
  Speaker 6: we're looking at starting the bank. Would you be interested
• 37:33
  Speaker 6: in being and being involved with it? And I said,
• 37:35
  Speaker 6: I said yes, And I said, this is how much
• 37:38
  Speaker 6: capital you need to have to put into the bank
• 37:40
  Speaker 6: to help get the started. And at the time, I
• 37:43
  Speaker 6: think it was two hundred thousand dollars in investment from
• 37:46
  Speaker 6: all the members and minimum. And so I did that.
• 37:50
  Speaker 6: But the the cool part about that is when you
• 37:54
  Speaker 6: have influence or ownership or co founder of a bank,
• 37:59
  Speaker 6: you can make certain things happen. Now it's got to
• 38:03
  Speaker 6: I mean, people have got to be credit worthy. But
• 38:05
  Speaker 6: so much in banking has to do with relationships and
• 38:09
  Speaker 6: who you know and understanding the process of how loans
• 38:12
  Speaker 6: are done. And so since I've been at Relife Bank,
• 38:16
  Speaker 6: they've never told me no every So when I was
• 38:20
  Speaker 6: go out and do deals. I knew that I knew
• 38:22
  Speaker 6: how to structure the deal to how the bank would
• 38:26
  Speaker 6: like it, and we go out and do deals. And
• 38:28
  Speaker 6: then with my protege, it's like the slim and husky guys. Uh,
• 38:32
  Speaker 6: just walk the walk them into the back and say, hey,
• 38:35
  Speaker 6: these are good people. These guys are good people. They're
• 38:38
  Speaker 6: going places, they're smart, they know what they're doing. Let's
• 38:42
  Speaker 6: give them a shot.
• 38:44
  Speaker 5: So after that happens, it's like a border approval and
• 38:47
  Speaker 5: things like that happen.
• 38:48
  Speaker 6: So Uh, each bank, each bank works differently, but depending
• 38:52
  Speaker 6: on the size of the bank, you can have an
• 38:53
  Speaker 6: executive loan committee. So maybe me, you, the three of
• 38:57
  Speaker 6: us on the loan committee, and then you got the
• 39:00
  Speaker 6: the loan officer. She will bring the loan to us
• 39:04
  Speaker 6: and we will review it and decide whether we're going
• 39:07
  Speaker 6: to fund it or not. But since I am pour
• 39:10
  Speaker 6: owner of the bank or co founder of the bank,
• 39:13
  Speaker 6: I know exactly what they're looking for.
• 39:16
  Speaker 7: And I also have one of the things.
• 39:18
  Speaker 6: One of the five seeds of credit or five seas
• 39:20
  Speaker 6: of banking to get a loan is character. And if
• 39:24
  Speaker 6: I vouch for your character, you may have some deficits
• 39:27
  Speaker 6: in your credit. You may not have any cash or
• 39:29
  Speaker 6: not enough collateral, but if somebody will vouch for your character,
• 39:32
  Speaker 6: that will go a long way. And here's the thing
• 39:35
  Speaker 6: that here's what I tell small business people all the time.
• 39:41
  Speaker 6: Even if you don't have a banking you don't have
• 39:43
  Speaker 6: a loan with a bank, or you don't need a
• 39:45
  Speaker 6: loan with the bank, what you should do, at least quarterly,
• 39:48
  Speaker 6: you should have three bankers that you take out the
• 39:51
  Speaker 6: lunch just to get to know them and just explain
• 39:56
  Speaker 6: to them what your business is. Even if you don't
• 39:59
  Speaker 6: need any money, explain to them what your business is
• 40:03
  Speaker 6: so that you all can get to know each other.
• 40:06
  Speaker 6: Because people do business with whom they like, and for
• 40:09
  Speaker 6: them to like you, they've got to know you. So
• 40:12
  Speaker 6: banking is very personal. That's why that's why you know, uh,
• 40:17
  Speaker 6: John can called the bank and say, hey, John, Hey,
• 40:19
  Speaker 6: I want you to this is John. I want you
• 40:21
  Speaker 6: to know my friend Jim is coming to the bank
• 40:23
  Speaker 6: for a loan. This is his relationship. And so I
• 40:29
  Speaker 6: tell I tell you know, young folks who are if
• 40:33
  Speaker 6: you're not trying to get a bank relationship, if you're
• 40:35
  Speaker 6: not trying to get a loan, take some time and
• 40:38
  Speaker 6: build a relationship.
• 40:40
  Speaker 2: That's right.
• 40:42
  Speaker 3: So what what was the process of you actually like
• 40:45
  Speaker 3: developing that bank, Like was just a bunch of cars
• 40:47
  Speaker 3: coming together and say okay, we want to build a
• 40:49
  Speaker 3: bank by an existing bank and just renamed it.
• 40:52
  Speaker 4: Like I'm sure there's a lot.
• 40:53
  Speaker 6: Of yeah, it's it's uh So I wasn't the brains
• 40:57
  Speaker 6: behind the bank. I would say I was in. I
• 40:59
  Speaker 6: was an investor in the bank. You know, I went
• 41:03
  Speaker 6: through the entire process of getting the charter raise, helping
• 41:07
  Speaker 6: raise the money, putting the money in, helping to hire
• 41:11
  Speaker 6: the management team. Because to start the bank, you know,
• 41:14
  Speaker 6: you got to go to the state and let it
• 41:17
  Speaker 6: give them a business plan, and then you got to
• 41:19
  Speaker 6: tell them who you're going to hire, and then you
• 41:21
  Speaker 6: gotta tell them how much money you're planning to raise.
• 41:23
  Speaker 6: And then you got to go hire those people. Even
• 41:24
  Speaker 6: though you don't have any money. You got to go high.
• 41:26
  Speaker 6: You got to raise a little bit of money, see
• 41:28
  Speaker 6: money to hire the hire the team. And then you
• 41:31
  Speaker 6: go back to the state and say, hey, I've hired
• 41:33
  Speaker 6: this management team. Here are our processes and procedures. And
• 41:35
  Speaker 6: then the state will say, okay, we like your team,
• 41:38
  Speaker 6: we like your processes. You said you're going to raise
• 41:40
  Speaker 6: twenty million dollars, go back up and raise, get the
• 41:43
  Speaker 6: twenty million dollars, put it in an escrow, and then
• 41:45
  Speaker 6: come back to us.
• 41:46
  Speaker 7: And all the.
• 41:47
  Speaker 6: Time you're paying those people that you've hired, but you
• 41:51
  Speaker 6: hadn't opened the bank yet. You go back to the
• 41:54
  Speaker 6: state and say, hey, we've We've got the money we
• 41:56
  Speaker 6: said we're going to raise.
• 41:58
  Speaker 7: It's in the escrow.
• 41:59
  Speaker 6: And then the state said, okay, we'll give you a
• 42:01
  Speaker 6: charter to start the bank in our case January six,
• 42:05
  Speaker 6: two thousand and six. And then it's not that simple,
• 42:08
  Speaker 6: but that's kind of yeah, but it takes money.
• 42:12
  Speaker 4: Yeah, that's the fact.
• 42:14
  Speaker 3: So outside of everything else that you need to know
• 42:17
  Speaker 3: your your stock investor as well. Yes, he was telling
• 42:20
  Speaker 3: us that you you brought Apple at a crazy price
• 42:22
  Speaker 3: years ago.
• 42:24
  Speaker 2: Screenshot.
• 42:25
  Speaker 3: It's really so can you can you talk about that?
• 42:28
  Speaker 3: As far as I know you said your value long
• 42:30
  Speaker 3: term investor, but how important is it to diversified and
• 42:33
  Speaker 3: not put all your in one basket? And yeah, can
• 42:36
  Speaker 3: you talk about like what inspired you to purchase Apple
• 42:39
  Speaker 3: into two thousand and seven?
• 42:42
  Speaker 7: I got on my phone, Yeah, I got you got
• 42:45
  Speaker 7: I got it in my mind.
• 42:45
  Speaker 6: It was two thousand that was on will on vacation
• 42:48
  Speaker 6: and they won't vacation in France, and what you said
• 42:50
  Speaker 6: it wasn't sleep. And I was up on the computer
• 42:54
  Speaker 6: buying stock. But I like buying stock in companies that
• 43:01
  Speaker 6: I see in use all the time. You all talked
• 43:04
  Speaker 6: about this. I mean, if you if you're on your
• 43:07
  Speaker 6: Apple phone all the time and you don't own Apple,
• 43:11
  Speaker 6: that's a problem.
• 43:12
  Speaker 7: I mean, if you mean, if you.
• 43:14
  Speaker 6: If you got Amazon boxes stacked all over your house
• 43:17
  Speaker 6: and you ain't you don't own Amazon, that's a problem.
• 43:20
  Speaker 6: And I don't own Amazon's. But if you using if
• 43:23
  Speaker 6: you got Nike shoes and niked its like in that.
• 43:27
  Speaker 6: So I try to buy companies that that I see
• 43:29
  Speaker 6: people using all the time. I mean, like Facebook. I'm
• 43:33
  Speaker 6: an investor in Facebook, then I'm investor in We talked
• 43:38
  Speaker 6: about uh, some diffidence stocks.
• 43:40
  Speaker 7: But I try to.
• 43:41
  Speaker 6: Buy things that I see people using all the time,
• 43:45
  Speaker 6: and so I may do a little deep do this
• 43:47
  Speaker 6: little research.
• 43:48
  Speaker 7: But if I see people own the Apple all the time, was.
• 43:52
  Speaker 3: That your was that your best because you said you
• 43:54
  Speaker 3: brought the fight? Was that your was that your your
• 43:58
  Speaker 3: greatest stock?
• 43:59
  Speaker 7: Investment was crime was I told you I put two thousand.
• 44:04
  Speaker 4: Stop stop.
• 44:07
  Speaker 3: Probably have a five dollars cost basis in Apple, because
• 44:10
  Speaker 3: I mean, is it that one something now? But that's
• 44:12
  Speaker 3: that's not true price because it's split a few times
• 44:15
  Speaker 3: so apples that you can really say it's like almost
• 44:18
  Speaker 3: four hundred and fifty dollars probably if you would have
• 44:20
  Speaker 3: taken taken away to split. So to have five dollars
• 44:24
  Speaker 3: cost basis at four hundred and fifty dollars value.
• 44:27
  Speaker 7: I have it, my wife has it, my four kids.
• 44:30
  Speaker 5: Have it right, right, So that's part of the story
• 44:33
  Speaker 5: to it was like you didn't just buy it, just
• 44:36
  Speaker 5: got the memory. You said it was three thousand years
• 44:38
  Speaker 5: in the photo. It was like, Yo, you bought something
• 44:40
  Speaker 5: for you, you bought something for your wife, you bought
• 44:42
  Speaker 5: something for your four kids.
• 44:43
  Speaker 2: It's like, and you've gone through two splits, not just one, because.
• 44:47
  Speaker 6: It's just I've gone through a bunch of splits, got
• 44:52
  Speaker 6: through a bunch of splits. So generational yeah, So and
• 44:56
  Speaker 6: that's how I look at every transit I do. I
• 45:01
  Speaker 6: look at it through a generational lens. So the first
• 45:04
  Speaker 6: thing I asked you guys when I first came in here,
• 45:06
  Speaker 6: what's your plans? I look at a generational lens because
• 45:12
  Speaker 6: at some point you need to exit. You need to exit,
• 45:19
  Speaker 6: and so being an entrepreneur. Being an entrepreneur is like
• 45:22
  Speaker 6: being at a crap table and you're doing well. You
• 45:25
  Speaker 6: got all your chips stacked up real high. Everybody sees
• 45:29
  Speaker 6: your chips. It's, oh yeah, man, those guys are doing great.
• 45:33
  Speaker 6: Got a new range rover.
• 45:39
  Speaker 4: That you know.
• 45:41
  Speaker 7: Those guys are doing great. The chips are stacked up.
• 45:44
  Speaker 7: But until you do this, you hadn't really won.
• 45:50
  Speaker 6: Because you have seen people at the crap table whose
• 45:53
  Speaker 6: chips are stacked up, shout out whose chips are and
• 46:01
  Speaker 6: they didn't do this, and the open here or two
• 46:06
  Speaker 6: thousand and eight hit, but something happens. So that's why
• 46:09
  Speaker 6: you got to plan the exit.
• 46:11
  Speaker 3: So let me ask you this as far, especially like
• 46:13
  Speaker 3: for being a black business own. A lot of times
• 46:15
  Speaker 3: people feel like there's two sides to the coin. And
• 46:18
  Speaker 3: like if we if we always sell our businesses, we
• 46:20
  Speaker 3: don't have the legacy brands of the Walmarts and we
• 46:24
  Speaker 3: can't build those names sold. Did they well, they're publicly,
• 46:31
  Speaker 3: but they took a bunch of chips off the thing
• 46:34
  Speaker 3: they did, but they but they still the kids still
• 46:38
  Speaker 3: have a large state sold. So the big question is
• 46:43
  Speaker 3: how do you feel about that? Like because like I
• 46:45
  Speaker 3: have no problem with about it, I said, there is
• 46:47
  Speaker 3: I've heard that from other people like that, especially black businesses,
• 46:50
  Speaker 3: that maybe it's not the best idea to sell because.
• 46:55
  Speaker 6: Okay, it ain't personal. Yeah, and I didn't have a
• 46:59
  Speaker 6: black you can't you can't have. I had a great business.
• 47:01
  Speaker 6: Can happen to be owned about black guys and so
• 47:06
  Speaker 6: and as a as a father for happily merrit man.
• 47:12
  Speaker 6: When you look at you talked about diversification. When you
• 47:14
  Speaker 6: look at your nest egg and it's ninety percent in
• 47:17
  Speaker 6: one company, that's dangerous. Yeah, that's dangerous. And so my
• 47:24
  Speaker 6: chips were stacked and I didn't want something to happen.
• 47:28
  Speaker 6: I didn't want to go out and hire another team
• 47:30
  Speaker 6: to take me to one hundred million.
• 47:32
  Speaker 4: And so.
• 47:34
  Speaker 7: Business is not personal, and we got to quit thinking of.
• 47:37
  Speaker 4: It that way.
• 47:39
  Speaker 6: You want to do a great job, you want to
• 47:40
  Speaker 6: hire great people, provide them great opportunities, but at some
• 47:43
  Speaker 6: point you need.
• 47:44
  Speaker 7: To exit because most of us go out of business.
• 47:50
  Speaker 7: Let mean, think about it, think about it. So people
• 47:53
  Speaker 7: came to me and said, man, I can't believe you
• 47:54
  Speaker 7: sold your company. Why did you sell it? I said,
• 47:58
  Speaker 7: twenty three million.
• 47:59
  Speaker 2: Dollars, twenty three million reasons.
• 48:01
  Speaker 7: But here's the deal. Some people came and said, why
• 48:04
  Speaker 7: did you sell it?
• 48:05
  Speaker 6: And then some other folks came and said, how did
• 48:09
  Speaker 6: you sell it?
• 48:10
  Speaker 4: Difference a difference to difference.
• 48:12
  Speaker 7: It's a difference.
• 48:14
  Speaker 6: How did you do it? That's my question. How did
• 48:17
  Speaker 6: you do it? Not why did you do it? It's
• 48:20
  Speaker 6: very obvious. I started a company two.
• 48:23
  Speaker 7: Thousand dollars twenty three million dollar evaluation? What would you do?
• 48:28
  Speaker 4: What we're talking about?
• 48:30
  Speaker 2: That's not even a question that.
• 48:31
  Speaker 4: We're talking about.
• 48:32
  Speaker 7: But I had I had one lady. She was all
• 48:35
  Speaker 7: over me. She said, well, why did you do it?
• 48:37
  Speaker 7: He's black owned company, and blah blah blah. I just said,
• 48:41
  Speaker 7: twenty three billion dollars. Do you not understand?
• 48:51
  Speaker 2: So and so?
• 48:54
  Speaker 7: Here one more thing.
• 48:55
  Speaker 2: Yeah.
• 48:56
  Speaker 4: So when.
• 49:00
  Speaker 6: I got you, when the company was a sixteen million
• 49:01
  Speaker 6: dollars and I realized I wasn't the person to take
• 49:03
  Speaker 6: it to the next level, and I need a search
• 49:07
  Speaker 6: to find the best person to run the company. He
• 49:10
  Speaker 6: was a white guy. So how the white guy run
• 49:13
  Speaker 6: this company. Now, my CEO at the time was black,
• 49:16
  Speaker 6: my CFO was black. VP yourself is white. So I
• 49:18
  Speaker 6: had a diverse team of folks. But people ask me,
• 49:22
  Speaker 6: why did you hire the white guy to run your company?
• 49:26
  Speaker 7: Because he's the best, he's the best.
• 49:31
  Speaker 6: If you got a chance to hire Bill Gates to
• 49:33
  Speaker 6: come run your company, we just said, now, I'm not
• 49:37
  Speaker 6: gonna hire Bill because he's white. No, hire the best people, period.
• 49:42
  Speaker 6: And if you do that, and I tell white people this,
• 49:46
  Speaker 6: and I tell Black people this, If you hire the
• 49:48
  Speaker 6: best people.
• 49:49
  Speaker 7: You're gonna get diversity. That's gonna happen.
• 49:54
  Speaker 6: Look at look at sports. They go out and find
• 49:57
  Speaker 6: the best people. That's why you got diversity. You're finding
• 50:00
  Speaker 6: guys from all Overseas coming to play ball here. You're
• 50:04
  Speaker 6: gonna get diversity. So I had a diverse team because
• 50:08
  Speaker 6: my focus is on quality. So a couple of stupid
• 50:11
  Speaker 6: questions over the years for me, why'd you hire the
• 50:13
  Speaker 6: white guy because she's the best.
• 50:15
  Speaker 7: And look what happened. We won a championship.
• 50:23
  Speaker 6: And you still trying to figure out how you gonna
• 50:25
  Speaker 6: make your next move.
• 50:30
  Speaker 4: You have it. So the four phases of business.
• 50:33
  Speaker 3: This is interesting, you said, the idea, the startup phase,
• 50:36
  Speaker 3: the run and grow, and then the sell. So because
• 50:40
  Speaker 3: I think a lot of times most people they just
• 50:42
  Speaker 3: start a business and it's like they don't really have
• 50:45
  Speaker 3: any plan of like like when you met up, you're
• 50:48
  Speaker 3: like what you're playing? Like how you playing on selling this?
• 50:50
  Speaker 3: Like and a couple of people have actually asked me
• 50:52
  Speaker 3: that before. So do you think every what's your advice
• 50:55
  Speaker 3: for business owners that's just starting? Oh maybe just already
• 50:58
  Speaker 3: like as far as like real evaluating and having those four.
• 51:02
  Speaker 7: With the end in mind? Okay, star with the end
• 51:05
  Speaker 7: of mind, where do you want this to be?
• 51:08
  Speaker 6: If you build a house, you got a vision of
• 51:10
  Speaker 6: what you want that house to be, start with that
• 51:11
  Speaker 6: in mind. Sto with what you want that business to be.
• 51:15
  Speaker 6: Start with you know, uh, who don't want this business
• 51:19
  Speaker 6: to what company? Don't want this company to be? Like oftentimes,
• 51:23
  Speaker 6: what we do is we create jobs for ourselves, our businesses.
• 51:29
  Speaker 6: It's a job for us. I mean if we don't
• 51:32
  Speaker 6: go to work that next day, nothing happens. Most of
• 51:37
  Speaker 6: us start businesses. Most businesses just have one person working for.
• 51:42
  Speaker 7: The owner.
• 51:43
  Speaker 6: So start with. A friend of mine named Scott Source says,
• 51:47
  Speaker 6: start with how soon. Can you replace yourself and hire
• 51:52
  Speaker 6: a bunch of good people. Start with that. Start with
• 51:55
  Speaker 6: the understanding that you ain't the best person for the job.
• 51:58
  Speaker 6: Start with the seven bigger people in the world. I
• 52:00
  Speaker 6: guarantee that somebody better than you to do it.
• 52:03
  Speaker 7: Start with that's build it around the people. Start with
• 52:10
  Speaker 7: in my company, I would never sit at the end
• 52:12
  Speaker 7: of the table at the board table.
• 52:15
  Speaker 6: Strut with shrinking yourself so small that the people around
• 52:18
  Speaker 6: you can perform that you don't overshadow them. Strut with
• 52:22
  Speaker 6: stretching them and pushing them out front. And they ain't
• 52:27
  Speaker 6: got to always they ain't got to be in the
• 52:28
  Speaker 6: meeting and saying oh yeah. Under Daryl's leadership and under
• 52:31
  Speaker 6: Darl's leadership, stuck my team knew not to ever do that.
• 52:36
  Speaker 6: It was all about them.
• 52:39
  Speaker 5: Yeah, So can we can we go? And that that's
• 52:42
  Speaker 5: a lot of valuable advice. Can we talk about three? Yeah,
• 52:48
  Speaker 5: because if I'm listening to you to say that, I'm thinking, like, so, what's.
• 52:50
  Speaker 2: The vision for this?
• 52:51
  Speaker 4: Because this is.
• 52:56
  Speaker 5: So we're growing this business and obviously the evaluation so
• 53:01
  Speaker 5: obviously that the playoff is gonna be bigger when we
• 53:03
  Speaker 5: sell this.
• 53:04
  Speaker 7: So you asked me before we started, you know, not
• 53:10
  Speaker 7: to hit the table.
• 53:10
  Speaker 6: Sorry, you asked me, why do I invest in businesses?
• 53:16
  Speaker 6: And I have a philosophy, and that philosophy is I
• 53:24
  Speaker 6: bet on the jockey, not the horse. I bet on
• 53:32
  Speaker 6: a jockey because there are some people who are winners,
• 53:37
  Speaker 6: regardless of any regardless of the situation you put them in,
• 53:41
  Speaker 6: They're gonna find a way to win.
• 53:45
  Speaker 7: They gonna find a way to win. There's some folks
• 53:47
  Speaker 7: that you know, you're like, man, oh, he won again,
• 53:53
  Speaker 7: he won again.
• 53:55
  Speaker 6: So I bet on the jockey, not the horse. Street
• 53:59
  Speaker 6: Recycling Solutions. I met this young African American CEO. At
• 54:03
  Speaker 6: the time, he was twenty eight. They had four hundred
• 54:06
  Speaker 6: thousand dollars in revenue, four employees, and I said, man,
• 54:12
  Speaker 6: he's good.
• 54:15
  Speaker 7: And I could mentor him. He knows the industry.
• 54:20
  Speaker 6: He had a seven thousand square foot warehouse seven thousands
• 54:24
  Speaker 6: small for recycling. So I invested about twenty percent of
• 54:28
  Speaker 6: the company. I went back and bought another thirty one
• 54:31
  Speaker 6: percent of the company. I went back and bought another
• 54:34
  Speaker 6: now owned sixty four sixty five percent of the company.
• 54:37
  Speaker 6: He owns a percentage and a couple other guys, but
• 54:40
  Speaker 6: I'm the majority shareholder of the company. I needed to
• 54:42
  Speaker 6: get majority on the ship so that when I spoke
• 54:44
  Speaker 6: in the boardroom people would listens different.
• 54:55
  Speaker 7: But he was good, and so today in mentoring him.
• 54:59
  Speaker 6: Over the last years, it's gone from four hundred thousand
• 55:02
  Speaker 6: dollars in sales.
• 55:03
  Speaker 7: To now it's about two and a half three million
• 55:05
  Speaker 7: dollar company.
• 55:07
  Speaker 6: From seven thousand square feet that we were renting, you know,
• 55:10
  Speaker 6: I would have never rented.
• 55:11
  Speaker 4: I came.
• 55:13
  Speaker 6: We're no longer renting. We bought a seventy five thousand
• 55:16
  Speaker 6: square for.
• 55:16
  Speaker 2: Whose seven thousand and seventy five thousand.
• 55:19
  Speaker 6: Seven thousand to seventy five thousand. Our warehouse is bigger
• 55:24
  Speaker 6: than the football field. We have signed four or five
• 55:29
  Speaker 6: fortune five hundred companies to be our customers during COVID.
• 55:35
  Speaker 6: Since March, the company has no debt outside of the
• 55:42
  Speaker 6: debt for the real estate, no operational debt, and lots
• 55:47
  Speaker 6: of cash. He is killing it and everybody needs it
• 55:54
  Speaker 6: recycling and medical equipment recycling.
• 55:57
  Speaker 4: In my mind when I was, I.
• 55:58
  Speaker 6: Was everybody every corporation needs that. And he's the only
• 56:01
  Speaker 6: one in that space that looks like him. So why
• 56:05
  Speaker 6: can't I push him to the time.
• 56:09
  Speaker 4: So where are you at now as far as your career.
• 56:12
  Speaker 3: I know you have the charitable foundation, your family foundations.
• 56:17
  Speaker 3: At this point in your life, are you more focused
• 56:20
  Speaker 3: on still building businesses or helping people or combination of Like,
• 56:25
  Speaker 3: what's your what's your twenty year plan?
• 56:26
  Speaker 4: Starting up today?
• 56:27
  Speaker 6: I told you that I have several port of jays,
• 56:33
  Speaker 6: and I tell all of it.
• 56:35
  Speaker 7: If I can't help you add a megan or two.
• 56:39
  Speaker 6: Or three million dollars to your personal fans and statement,
• 56:42
  Speaker 6: or if I can't help you make a million dollars
• 56:43
  Speaker 6: or two million dollars, I shouldn't be your mental We
• 56:47
  Speaker 6: should just be friends. We should just be drinking buddies.
• 56:50
  Speaker 6: So my goal is to create a bunch of millionnaires.
• 56:54
  Speaker 6: That's my goal. I got a friend and ask you
• 56:56
  Speaker 6: who created?
• 56:56
  Speaker 5: So?
• 56:57
  Speaker 7: He created? He created so many millions we can't even
• 56:59
  Speaker 7: count them. Include think myself.
• 57:00
  Speaker 6: He helped with me. My goal is to create a
• 57:03
  Speaker 6: whole bunch of millionaires. That's my goal. The other thing,
• 57:08
  Speaker 6: as a race to charity, we've donated my wife and
• 57:11
  Speaker 6: I we've donated at least a half a million dollars
• 57:14
  Speaker 6: to various charities. Next year, I'm gonna step my charity
• 57:19
  Speaker 6: game up and why does why does that mean something?
• 57:26
  Speaker 6: I want to be winning and giving. I want to
• 57:29
  Speaker 6: be winning and giving because I grew up poor and
• 57:32
  Speaker 6: I know there are a bunch of people that need help.
• 57:35
  Speaker 6: And so why do I keep investing in businesses to
• 57:38
  Speaker 6: help help to make money and help people grow. But
• 57:41
  Speaker 6: also it gives me more dollars to give the charities.
• 57:47
  Speaker 6: It gives me a chance to be more charitable. And
• 57:50
  Speaker 6: so I got a friend named the Costa Jenkinson. I
• 57:53
  Speaker 6: talk with the Costs all the time, say hey man,
• 57:55
  Speaker 6: my charity games, I gotta I gotta kick it up.
• 57:58
  Speaker 5: So you you had a obviously illustrious career, a lot
• 58:02
  Speaker 5: of success, but there has been some failures, and so yes,
• 58:06
  Speaker 5: can we talk about the American Addiction Center and some
• 58:09
  Speaker 5: of the business biggest lessons we've learned from.
• 58:11
  Speaker 6: That American Addiction Centers took that company public and with
• 58:16
  Speaker 6: a group of folks in two thousand October twenty fourteen.
• 58:20
  Speaker 6: Very tough space it was. It was in vogue during
• 58:24
  Speaker 6: that period of time, and then as insurance companies changed,
• 58:27
  Speaker 6: as reimbursements change, it was devastating to the business. And
• 58:32
  Speaker 6: so in that transaction, I think I lost between one
• 58:35
  Speaker 6: and happened two billion dollars, and so that's my point.
• 58:41
  Speaker 6: You gotta get in and get out. But we had
• 58:45
  Speaker 6: a bunch of opportunity. There were a bunch of opportunities
• 58:47
  Speaker 6: back then when things are in vogue to get out
• 58:51
  Speaker 6: and so, but it's a tough business and there ended
• 58:54
  Speaker 6: up being a bunch of addiction center companies that went
• 58:58
  Speaker 6: out of business, and so I learned a lot from that.
• 59:01
  Speaker 6: I have learned more from when the businesses stuff've been
• 59:04
  Speaker 6: involved with or not doing well. I learned more during
• 59:08
  Speaker 6: that period of time than when they're doing great. Because
• 59:11
  Speaker 6: when everything is great, you don't have to look under
• 59:13
  Speaker 6: the covers, you don't have to check the engine they're
• 59:16
  Speaker 6: doing it's great. But when things aren't going well, you
• 59:19
  Speaker 6: got to dig in and find out where you're losing money,
• 59:23
  Speaker 6: find out where you're not efficient. And so the Magic
• 59:26
  Speaker 6: Addiction Centers was a great concept, but I lost a
• 59:29
  Speaker 6: ton of money, didn't hurt them.
• 59:35
  Speaker 4: It's out good you have it, ladies and gentlemen.
• 59:39
  Speaker 3: It's been a pleasure of How can the people follow
• 59:41
  Speaker 3: you on social media know you got a YouTube series
• 59:43
  Speaker 3: when you actually interview people on.
• 59:45
  Speaker 7: When do you guys come up in the plane with me.
• 59:51
  Speaker 6: So I have a cockpit conversations where I take people up.
• 59:55
  Speaker 6: We're successful, We talk about business concepts. We may talk
• 59:57
  Speaker 6: about real estate, we got every checking. Take people up
• 1:00:00
  Speaker 6: who are in corporate America, C level folks, talk about
• 1:00:03
  Speaker 6: how they got to where they are. Just some inspirational stories.
• 1:00:07
  Speaker 6: That gives me a chance to fly my plane and
• 1:00:10
  Speaker 6: interview great folks. And then I'm on Instagram Dell Les Freeman,
• 1:00:13
  Speaker 6: Sor and I also do a thing called OG free
• 1:00:18
  Speaker 6: Game Friday.
• 1:00:21
  Speaker 9: I saw that og free Game Friday, and that's you know,
• 1:00:28
  Speaker 9: I don't I've learned a lot because people have poured
• 1:00:32
  Speaker 9: a lot into me.
• 1:00:33
  Speaker 7: This is not a I mean, I'm not a real
• 1:00:36
  Speaker 7: smart person.
• 1:00:37
  Speaker 6: I've had some success, but it's because of people who've
• 1:00:40
  Speaker 6: taken interest and said, hey, I'm gonna help you. And
• 1:00:43
  Speaker 6: so I used the Internet and I used to copy
• 1:00:46
  Speaker 6: conversations to whatever they poured in me. That has some
• 1:00:50
  Speaker 6: value to be able to put it back out into
• 1:00:52
  Speaker 6: the space. So it's just what I like doing it.
• 1:00:57
  Speaker 6: And I admire what you all are doing because us
• 1:01:01
  Speaker 6: you're bringing some real nuggets and you bring some real
• 1:01:04
  Speaker 6: meaningful information appreciate that.
• 1:01:09
  Speaker 5: Yeah, I appreciate I told you that when we met downstairs.
• 1:01:11
  Speaker 5: I'm like, I've known people my whole life and they
• 1:01:14
  Speaker 5: know what we're doing and have never reached out to
• 1:01:16
  Speaker 5: say anything. And you heard one episode, and like, I
• 1:01:18
  Speaker 5: can guarantee once a month you're gonna send me something inspirational,
• 1:01:21
  Speaker 5: whether it's you in the cockpits or it's you on
• 1:01:23
  Speaker 5: the island.
• 1:01:24
  Speaker 7: To give you the real stuff.
• 1:01:25
  Speaker 4: Next time, I think you handle Man.
• 1:01:27
  Speaker 2: Now we're gonna be we're gonna be in the picture together.
• 1:01:29
  Speaker 6: That okay to come down to the island, man, Yeah,
• 1:01:32
  Speaker 6: we gotta take my plane down.
• 1:01:34
  Speaker 4: We gotta come read the boat either.
• 1:01:37
  Speaker 2: Bamas, yeah, bahamas, I got a pictures.
• 1:01:40
  Speaker 3: I wouldn't expect anything. I wouldn't expect it. I wouldn't
• 1:01:43
  Speaker 3: expect any paradise island.
• 1:01:46
  Speaker 4: I'm on my way.
• 1:01:47
  Speaker 7: Not paradise.
• 1:01:49
  Speaker 4: That sounds accident boom. I've been.
• 1:01:53
  Speaker 7: Island is nice.
• 1:01:54
  Speaker 4: We're gonna take it, Okay, I've been. I've been a
• 1:01:56
  Speaker 4: nasal sound.
• 1:01:58
  Speaker 7: And you look at me when and you fly with me,
• 1:02:01
  Speaker 7: you gotta take your shoes.
• 1:02:02
  Speaker 2: Off straight to the clip.
• 1:02:08
  Speaker 4: You're gonna we're.
• 1:02:08
  Speaker 7: Gonna drive the car right up to the plane.
• 1:02:10
  Speaker 4: I'm ready, man, I'm ready. If we didn't have market Monday,
• 1:02:14
  Speaker 4: I would be right now.
• 1:02:18
  Speaker 3: I don't tip me with a good time. I appreciate it.
• 1:02:24
  Speaker 3: I definitely appreciate it. I'm sure the audience appreciates it
• 1:02:27
  Speaker 3: as well as uh. You know, it's always good to
• 1:02:29
  Speaker 3: get first hand information from people that have experience and
• 1:02:33
  Speaker 3: have done it. And you know, there's no better way
• 1:02:36
  Speaker 3: to learn than to actually learn from somebody as opposed
• 1:02:39
  Speaker 3: to like doing it in theory, like you actually did
• 1:02:41
  Speaker 3: it in real life. So a thank you for joining us,
• 1:02:44
  Speaker 3: and thank you for just being generous, because it's another
• 1:02:46
  Speaker 3: form of charity as well. It's like, you know, being generous.
• 1:02:48
  Speaker 3: You don't have to fly to give free information. So
• 1:02:52
  Speaker 3: that's that's a form of mentorship and definitely a way
• 1:02:54
  Speaker 3: of giving back.
• 1:02:55
  Speaker 4: So appreciate that. Thank you, Thank you, Thank you the mentor.
• 1:02:58
  Speaker 7: I'll tell you what, I'm humble.
• 1:03:00
  Speaker 4: Thank you, guys, thank you man, thank you, thank you.
• 1:03:04
  Speaker 2: Troy housekeeping it on shout everybody on pitcheon dot com.
• 1:03:07
  Speaker 2: Y'all know that's our product, paid program. Everybody that's been supporting.
• 1:03:10
  Speaker 2: We greatly appreciate it, y'all know.
• 1:03:11
  Speaker 5: T five members, y'all get access to eyl University, the
• 1:03:15
  Speaker 5: number one online school in the world. That is a
• 1:03:17
  Speaker 5: big facts of Shout out to the earners out of there,
• 1:03:19
  Speaker 5: and shout out to everybody that's been supporting the merch.
• 1:03:21
  Speaker 2: We are greatly appreciated. We got some new stuff on
• 1:03:24
  Speaker 2: the way.
• 1:03:25
  Speaker 3: Yes, So thank you guys for rocking with us. We'll
• 1:03:27
  Speaker 3: see you next week.
• 1:03:28
  Speaker 4: Peace.
• 1:03:30
  Speaker 8: You just realized your business needed to hire someone yesterday?
• 1:03:35
  Speaker 8: How can you find amazing candidates fast? Easy? Just use
• 1:03:39
  Speaker 8: Indeed stop struggling to get your job posts seen on
• 1:03:42
  Speaker 8: other job sites. With Indeed sponsored jobs, your post jumps
• 1:03:46
  Speaker 8: to the top of the page for your relevant candidates,
• 1:03:49
  Speaker 8: so you can reach the people you want faster. According
• 1:03:52
  Speaker 8: to Indeed data, sponsored jobs posted directly on Indeed have
• 1:03:56
  Speaker 8: forty five percent more applications than non sponsored jobs. Don't
• 1:04:00
  Speaker 8: wait any longer, speed up your hiring right now with Indeed,
• 1:04:04
  Speaker 8: and listeners of this show will get a seventy five
• 1:04:06
  Speaker 8: dollars sponsored job credit to get your jobs more visibility
• 1:04:10
  Speaker 8: at indeed dot com slash po d kat z thirteen.
• 1:04:15
  Speaker 8: Just go to indeed dot com slash po d kat
• 1:04:19
  Speaker 8: z thirteen right now and support our show by saying
• 1:04:22
  Speaker 8: you heard about Indeed on this podcast. Terms and conditions apply.
• 1:04:26
  Speaker 8: Hiring Indeed is all you need