WEBVTT 1 00:00:00.000 --> 00:00:02.080 If you believe the shit that you're reading, 2 00:00:02.080 --> 00:00:05.360 if you're listening to poor people and advice it on how to be rich, 3 00:00:05.360 --> 00:00:08.560 you will stay poor. They have no idea. You don't need money to make money. 4 00:00:09.840 --> 00:00:12.080 The wealthiest people in the world see business as a game. 5 00:00:12.080 --> 00:00:15.040 This podcast, the game, is my attempt at documenting the lessons I've learned 6 00:00:15.040 --> 00:00:18.160 on my way to building acquisition.com into a billion dollar portfolio. 7 00:00:18.160 --> 00:00:20.000 My hope is that you use the lessons to grow your business 8 00:00:20.000 --> 00:00:22.800 and maybe someday soon partner with us to get to $200 million in beyond. 9 00:00:22.800 --> 00:00:23.840 I hope you share and enjoy. 10 00:00:25.440 --> 00:00:28.080 I want to break the myth that you need to go make a million dollars 11 00:00:28.080 --> 00:00:29.920 and that you need money to make money. 12 00:00:29.920 --> 00:00:34.400 I'm going to show you 10 different ways so you can make a million dollars 13 00:00:34.400 --> 00:00:38.240 and you can apply this to $1,000, $100, $100 million. 14 00:00:38.240 --> 00:00:40.480 The concept is what I'm trying to translate to you 15 00:00:40.480 --> 00:00:43.440 because you can do any of these things and add or detract the amount of zeros 16 00:00:43.440 --> 00:00:44.800 that you feel comfortable with. 17 00:00:44.800 --> 00:00:48.880 If you want to make less money, by all means, take more zeros off. 18 00:00:50.640 --> 00:00:53.920 The first thing that you can do if you want to make a million dollars 19 00:00:53.920 --> 00:00:57.040 is that you can sell something for a million dollars. 20 00:00:57.040 --> 00:00:59.360 And as crazy as what I'm saying sounds, 21 00:00:59.920 --> 00:01:02.800 you absolutely can sell something for a million dollars. 22 00:01:02.800 --> 00:01:06.560 If you go to an e-commerce store and they're doing a $100 million a year 23 00:01:06.560 --> 00:01:10.480 and you say, hey, if I can increase your conversion across your entire site, 24 00:01:10.480 --> 00:01:11.680 rewrite your emails, 25 00:01:11.680 --> 00:01:13.840 do you do your landing pages, etc. 26 00:01:13.840 --> 00:01:16.960 And I can get you a 5% lift site wide. 27 00:01:16.960 --> 00:01:18.640 Can I get 1% of that? 28 00:01:18.640 --> 00:01:22.080 So you make them an extra 5 million a year and you get one. 29 00:01:22.080 --> 00:01:23.360 Do you think you can do that? 30 00:01:23.360 --> 00:01:25.280 Yes, why are you going to be able to do so much? 31 00:01:25.360 --> 00:01:27.680 Not because of you, but because of who they are. 32 00:01:27.680 --> 00:01:28.400 All right? 33 00:01:28.400 --> 00:01:33.520 So you make a million dollars by selling someone else 5 to 10 million dollars of value. 34 00:01:33.520 --> 00:01:35.440 That's how you make a million dollars. 35 00:01:35.440 --> 00:01:36.640 Like, real talk. 36 00:01:36.640 --> 00:01:37.360 The second way. 37 00:01:37.360 --> 00:01:38.480 And you're like, I don't know how to do that. 38 00:01:38.480 --> 00:01:39.600 That's fine. 39 00:01:39.600 --> 00:01:40.880 But except that you don't how to do that. 40 00:01:40.880 --> 00:01:43.520 And then say, I want to learn how to do that and then go get the skill of doing that. 41 00:01:43.520 --> 00:01:44.640 And then you can go sell it. 42 00:01:44.640 --> 00:01:46.720 But you can't say that you don't have the money. 43 00:01:46.720 --> 00:01:47.920 And that's why you can't make money. 44 00:01:47.920 --> 00:01:49.120 That's why I'm making this video. 45 00:01:49.120 --> 00:01:52.320 The second one is that you can borrow a million dollars 46 00:01:52.400 --> 00:01:55.360 and then buy something and have someone else pay it back. 47 00:01:55.360 --> 00:01:57.360 It's fundamentally what real estate is. 48 00:01:57.360 --> 00:01:59.680 You borrow money to buy an asset. 49 00:01:59.680 --> 00:02:01.520 You put tenets into the asset. 50 00:02:01.520 --> 00:02:04.080 They pay off the money that you never had. 51 00:02:04.720 --> 00:02:06.800 That is what real estate is. 52 00:02:06.800 --> 00:02:07.440 Right? 53 00:02:07.440 --> 00:02:09.360 And if you can get the asset for free, 54 00:02:09.360 --> 00:02:11.360 which is going to be the next bullet I'm going to make, 55 00:02:11.920 --> 00:02:15.600 you can get a contract on something for less than it's worth. 56 00:02:15.600 --> 00:02:17.600 And then you get the bank to find it's the whole thing. 57 00:02:18.160 --> 00:02:20.720 So if you're like, but I don't know if they'll do that. 58 00:02:20.720 --> 00:02:22.720 They will if it's priced low enough. 59 00:02:22.720 --> 00:02:25.920 So if you have to go talk to a thousand building owners, 60 00:02:25.920 --> 00:02:29.120 then you will probably get one of them who's willing to depart for their thing 61 00:02:29.120 --> 00:02:30.560 for significantly less than it's worth. 62 00:02:30.560 --> 00:02:32.240 And a bank will loan the difference 63 00:02:32.240 --> 00:02:34.320 and you don't have to put any money down out of pocket. 64 00:02:34.960 --> 00:02:37.840 They'll also be willing to sell or find it's a portion of their house to you. 65 00:02:37.840 --> 00:02:39.280 So if you get a house for, let's say, 66 00:02:40.080 --> 00:02:41.760 let's say you have a hundred thousand dollar house, 67 00:02:42.240 --> 00:02:46.720 okay, and you get it under contract for $80,000 from them, 68 00:02:46.720 --> 00:02:49.280 saying that they're willing to give you the house for $80,000. 69 00:02:49.280 --> 00:02:52.000 And then you say, cool, I can give you $70, 70 00:02:52.960 --> 00:02:56.000 and then you got to sell or finance me the 10 over the next five years. 71 00:02:56.000 --> 00:02:57.200 And they say, sure. 72 00:02:57.200 --> 00:02:59.360 And now all of a sudden, you just got to get the bank 73 00:02:59.360 --> 00:03:01.440 and the bank finances 80 percent. 74 00:03:01.440 --> 00:03:03.760 And now you actually just made the difference if you wanted to. 75 00:03:03.760 --> 00:03:06.240 And you can take that number and you can do it at $100,000, 76 00:03:06.240 --> 00:03:07.920 you can do it at any of these levels. 77 00:03:08.240 --> 00:03:11.120 That's number three is you refinance something for more than you bought it. 78 00:03:11.120 --> 00:03:14.080 Number four is that you get a contract for something for less than it's worth. 79 00:03:14.080 --> 00:03:15.520 And then you sell that contract. 80 00:03:15.520 --> 00:03:19.040 And so for example, in the refinancing thing that I just went over, 81 00:03:19.040 --> 00:03:20.800 if I got that contract for eight, 82 00:03:21.360 --> 00:03:24.320 I could not even go through with the purchase and just sell the contract 83 00:03:24.320 --> 00:03:25.440 as somebody else for nine. 84 00:03:26.240 --> 00:03:29.040 And I make the difference between those two prices. 85 00:03:29.760 --> 00:03:33.840 Again, add as many zeros or as few zeros as you want to this example. 86 00:03:33.840 --> 00:03:35.520 But if you understand how it works, 87 00:03:35.520 --> 00:03:38.400 then you'll stop asking how to make six figures a year, 88 00:03:38.400 --> 00:03:42.080 because fundamentally the fact that you're attaching it to a year means you're thinking 89 00:03:42.080 --> 00:03:43.760 that you have to trade time for the money. 90 00:03:44.480 --> 00:03:45.920 And that's how poor people think. 91 00:03:45.920 --> 00:03:47.280 And that's why most people stay poor. 92 00:03:47.280 --> 00:03:50.640 Because they're trying to think about what they have to do over a year to make $100,000 93 00:03:50.640 --> 00:03:52.800 because they're not thinking in terms of value. 94 00:03:52.800 --> 00:03:54.160 They're thinking about themselves. 95 00:03:54.640 --> 00:03:55.920 So if you're going to be selfless, 96 00:03:55.920 --> 00:03:58.240 you have to think about the value of providing somebody else, 97 00:03:58.240 --> 00:03:59.440 not about the money you're going to get. 98 00:03:59.440 --> 00:04:01.120 They're time that you're going to spend. 99 00:04:01.120 --> 00:04:03.920 So if you can make somebody like the CRO example, 100 00:04:03.920 --> 00:04:05.680 conversion rate optimization example at the beginning, 101 00:04:05.680 --> 00:04:08.480 if I can make someone $5 million and it takes me 10 minutes, 102 00:04:08.480 --> 00:04:09.600 I can charge a million bucks for it. 103 00:04:10.240 --> 00:04:12.800 Why would I ask, how do I make a million dollars a year? 104 00:04:12.800 --> 00:04:15.600 I would try to do 100 of those every year, right? 105 00:04:15.680 --> 00:04:16.320 Doesn't matter. 106 00:04:16.320 --> 00:04:18.160 How many of those would I do as many as I possibly get? 107 00:04:18.800 --> 00:04:19.840 People think differently. 108 00:04:19.840 --> 00:04:21.840 If you want to have more than you have right now. 109 00:04:22.960 --> 00:04:26.160 Now, the next one you can do is that you can sell something that's really expensive 110 00:04:26.160 --> 00:04:27.200 and get a commission. 111 00:04:27.200 --> 00:04:28.400 Sounds really simple. 112 00:04:28.400 --> 00:04:31.840 If you sell a skyscraper that's $100 million skyscraper, 113 00:04:31.840 --> 00:04:33.680 you'll get 3, 4% of that deal. 114 00:04:34.240 --> 00:04:37.280 You'll get $34 million on a single transaction. 115 00:04:37.280 --> 00:04:39.360 If you sell a $20 million residence and you might be like, 116 00:04:39.360 --> 00:04:40.000 that's crazy. 117 00:04:40.000 --> 00:04:40.560 They exist. 118 00:04:40.560 --> 00:04:41.280 Look on Zilla. 119 00:04:41.280 --> 00:04:41.680 It's fine. 120 00:04:41.680 --> 00:04:42.480 Believe me, they exist. 121 00:04:43.440 --> 00:04:47.440 The realtor gets 5-ish percent of the transaction. 122 00:04:47.440 --> 00:04:49.360 That's a million dollars and they never own the asset. 123 00:04:50.000 --> 00:04:53.840 And so you absolutely can make a million dollars with no money down if you have skills. 124 00:04:53.840 --> 00:04:54.640 That is the point. 125 00:04:54.640 --> 00:04:55.440 That's the point I'm making. 126 00:04:56.000 --> 00:04:58.960 The next one is that you can find somebody who has an audience 127 00:04:58.960 --> 00:05:03.120 and buy whatever they're about to launch early and then sell it later. 128 00:05:03.120 --> 00:05:04.560 Now, that one does take some money. 129 00:05:04.560 --> 00:05:07.840 It's less, but the value of the thing later, that's how it balloons. 130 00:05:08.320 --> 00:05:10.400 This is how the entire NFT thing worked. 131 00:05:10.400 --> 00:05:13.680 Is that you have tremendous demand for a scarce resource. 132 00:05:13.680 --> 00:05:16.320 They have the scarce resource and then it balloons the price 133 00:05:16.320 --> 00:05:18.560 because there's so many people bidding against each other to get it. 134 00:05:19.120 --> 00:05:20.800 And so getting it early on those types of things, 135 00:05:20.800 --> 00:05:23.120 which is why if you buy into something pre-IPO, 136 00:05:23.120 --> 00:05:25.280 it tends to almost always go up simply by the fact 137 00:05:25.280 --> 00:05:27.360 that there's way more eyeballs that are computing for it. 138 00:05:28.000 --> 00:05:30.320 The next one is selling units of stuff. 139 00:05:30.320 --> 00:05:31.120 All right. 140 00:05:31.120 --> 00:05:33.360 If you wanted to make a million dollars, you got 52 weeks in a year. 141 00:05:33.360 --> 00:05:36.880 You got to sell something that's about $20,000 a week is what you got to make. 142 00:05:36.880 --> 00:05:37.120 Right? 143 00:05:37.120 --> 00:05:37.680 Over a year. 144 00:05:37.680 --> 00:05:38.560 So there's a million bucks. 145 00:05:38.560 --> 00:05:43.440 20 times 52 is technically a million, 40,000 for the internet trolls. 146 00:05:43.440 --> 00:05:44.720 But we're going to go with that. 147 00:05:44.720 --> 00:05:46.480 So if you got to make 20 grand a week, 148 00:05:46.480 --> 00:05:48.160 how many different ways can you make 20 grand in a week? 149 00:05:48.160 --> 00:05:51.360 Well, you can sell 20 people a $1,000 thing. 150 00:05:51.360 --> 00:05:54.400 You could sell two people a $10,000 thing. 151 00:05:54.400 --> 00:05:58.160 You could sell one person every four weeks and 80,000 other thing. 152 00:05:58.160 --> 00:05:58.720 Right? 153 00:05:58.720 --> 00:06:04.320 Or you could sell on a weekly basis 20 people who have a $1,000 lifetime value. 154 00:06:04.800 --> 00:06:07.760 And so for example, if you have a $100 month membership 155 00:06:07.760 --> 00:06:09.920 and the person stays for 10 months on average, 156 00:06:10.480 --> 00:06:13.280 then if you sell 20 of those every week over time, 157 00:06:13.280 --> 00:06:16.320 those will stack up and then you will cap $1,000,000. 158 00:06:16.320 --> 00:06:18.320 And the only way to grow from that new million, 159 00:06:18.320 --> 00:06:20.160 that's your new cap or threshold, 160 00:06:20.160 --> 00:06:21.920 is either you got to sell more units 161 00:06:21.920 --> 00:06:24.000 or you got to make the thing that you're selling worth more. 162 00:06:24.000 --> 00:06:24.560 That's it. 163 00:06:24.560 --> 00:06:25.840 And so right now, for example, 164 00:06:25.840 --> 00:06:28.800 if you've been capped at your current revenue level or your current income level, 165 00:06:28.800 --> 00:06:30.640 this is for small business owners or listening, 166 00:06:30.640 --> 00:06:33.360 you either got to sell more units in the same period of time, 167 00:06:33.360 --> 00:06:34.720 or you got to make the units worth more. 168 00:06:34.720 --> 00:06:35.200 That's it. 169 00:06:35.200 --> 00:06:36.080 If you've been stuck, 170 00:06:36.240 --> 00:06:37.200 there's the only two things, 171 00:06:37.200 --> 00:06:38.800 there's the only two levers you got. 172 00:06:38.800 --> 00:06:40.240 So you just got to figure out which one it is for you. 173 00:06:41.200 --> 00:06:43.520 The next one is that you can get people to give you 174 00:06:43.520 --> 00:06:45.520 their businesses for no money down. 175 00:06:45.520 --> 00:06:45.840 All right? 176 00:06:45.840 --> 00:06:47.920 And so good friend of mine actually did this. 177 00:06:47.920 --> 00:06:51.760 And he combined four different information businesses into one business. 178 00:06:51.760 --> 00:06:52.960 And they were all small businesses. 179 00:06:52.960 --> 00:06:54.720 They were all doing about a million-ish a year. 180 00:06:54.720 --> 00:06:55.680 I get small as relative. 181 00:06:55.680 --> 00:06:56.720 But it was like, 182 00:06:56.720 --> 00:06:59.360 and so he combined them all to be a $4 million top line, 183 00:06:59.360 --> 00:07:02.560 a million and a half bottom line business for no money out of pocket. 184 00:07:02.560 --> 00:07:03.200 He literally said, 185 00:07:03.200 --> 00:07:05.120 Hey, I know you don't want to do this business anymore. 186 00:07:05.200 --> 00:07:07.520 Just give it to me and I'll pay you the income that you were going to make 187 00:07:07.520 --> 00:07:09.120 for this business for the next two years. 188 00:07:09.120 --> 00:07:09.760 That's what he said. 189 00:07:09.760 --> 00:07:10.400 And they said, 190 00:07:10.400 --> 00:07:10.960 Sure. 191 00:07:10.960 --> 00:07:12.720 And so he combined all those businesses together. 192 00:07:12.720 --> 00:07:13.520 And then overnight, 193 00:07:13.520 --> 00:07:16.560 he owned an asset that was doing a million and a half a year in profit 194 00:07:16.560 --> 00:07:17.680 and four million in top line. 195 00:07:17.680 --> 00:07:18.960 And it cost him nothing to do it. 196 00:07:18.960 --> 00:07:20.480 So not only did it make a million dollars, 197 00:07:20.480 --> 00:07:23.680 he made something that made him a million and a half dollars a year per year. 198 00:07:23.680 --> 00:07:25.120 Now he has to pay the debt service back, 199 00:07:25.120 --> 00:07:29.280 which is the loan that those people said that he would pay them over time 200 00:07:29.280 --> 00:07:31.120 back from the profit from the business. 201 00:07:31.120 --> 00:07:32.880 But he owns the asset now. 202 00:07:32.880 --> 00:07:34.560 And so if he turned around and went to say, 203 00:07:34.560 --> 00:07:35.440 Hey, I'm going to go sell this. 204 00:07:35.440 --> 00:07:37.600 He could probably sell the thing for five million dollars put together. 205 00:07:38.240 --> 00:07:39.760 And so he got no money down. 206 00:07:39.760 --> 00:07:41.360 And he said he would sell it. 207 00:07:41.360 --> 00:07:43.120 And he could sell it for five million bucks. 208 00:07:43.120 --> 00:07:47.200 And let's say that if the seller financing all those was two times earnings over 209 00:07:47.200 --> 00:07:49.200 over time because at small numbers, 210 00:07:49.200 --> 00:07:51.840 the deals aren't very good for sellers, right? 211 00:07:51.840 --> 00:07:56.240 It might cost him two million bucks over the next however long. 212 00:07:56.240 --> 00:07:58.400 And he can flip the whole thing for five. 213 00:07:58.400 --> 00:07:59.680 And he makes the three. 214 00:07:59.680 --> 00:08:01.920 And he could still just choose to slowly pay him off over time 215 00:08:01.920 --> 00:08:04.960 where he could probably have an early sale bonus and pay even less. 216 00:08:04.960 --> 00:08:08.320 Like he made more than a million dollars with no money on a pocket. 217 00:08:08.320 --> 00:08:09.840 And he'd be like, I don't know how to do that. 218 00:08:09.840 --> 00:08:11.200 The point is not to teach you how to do it. 219 00:08:11.200 --> 00:08:13.280 The point is to get you to recognize that you don't know how to do it. 220 00:08:13.280 --> 00:08:15.680 And understand that the people who are making money 221 00:08:15.680 --> 00:08:17.200 don't constrain themselves by time. 222 00:08:17.200 --> 00:08:19.440 They're not thinking how do I make X dollars per hour, 223 00:08:19.440 --> 00:08:20.480 X dollars per year. 224 00:08:20.480 --> 00:08:22.720 They're thinking, how do I provide the most value to somebody 225 00:08:22.720 --> 00:08:24.640 so they'll give me a percentage of the value I provide? 226 00:08:25.520 --> 00:08:29.680 And so the reason a good buddy of mine was able to make so much money 227 00:08:29.680 --> 00:08:31.520 selling and flipping commercial real estate 228 00:08:31.600 --> 00:08:34.960 was that he realized that if he bought for very little money down, 229 00:08:35.520 --> 00:08:38.160 that he could basically take a hundred percent of the cash 230 00:08:38.160 --> 00:08:40.320 that someone would put as a down payment for commercial building 231 00:08:40.320 --> 00:08:41.760 and make it into a write-off. 232 00:08:41.760 --> 00:08:44.720 Which means that if you made a hundred thousand dollars, 233 00:08:44.720 --> 00:08:46.560 let's assume you're in the highest tax bracket, 234 00:08:46.560 --> 00:08:47.760 a million dollars a year. 235 00:08:47.760 --> 00:08:49.760 And you had four hundred thousand dollars in taxes. 236 00:08:49.760 --> 00:08:51.200 You could take the four hundred thousand dollars 237 00:08:51.200 --> 00:08:52.720 that you were going to give to the government 238 00:08:52.720 --> 00:08:55.360 and just give it to him and then he put it into a building. 239 00:08:55.920 --> 00:08:58.400 But because of the amount of leverage he was able to get in his deals 240 00:08:58.400 --> 00:09:01.840 because he would get them to sell our finance half of the down payment. 241 00:09:01.840 --> 00:09:03.760 So you only had to put 10 percent down on these buildings. 242 00:09:04.320 --> 00:09:05.760 So when you put 10 percent down on the building, 243 00:09:05.760 --> 00:09:08.000 he could take the depreciation on the whole building 244 00:09:08.000 --> 00:09:10.240 and hand it to the guys who gave him money. 245 00:09:10.240 --> 00:09:11.680 And so they got free buildings. 246 00:09:11.680 --> 00:09:15.360 They didn't even care about the return on the building 247 00:09:15.360 --> 00:09:16.880 because it was bought with free money. 248 00:09:17.840 --> 00:09:19.040 And so he figured that out. 249 00:09:19.600 --> 00:09:23.120 And so he was able to get these big buildings under contract 250 00:09:23.120 --> 00:09:25.360 under the terms that he knew his investors would like 251 00:09:25.360 --> 00:09:27.520 because it basically exited them from the tax system. 252 00:09:28.080 --> 00:09:29.840 And then he was able to make the difference 253 00:09:29.840 --> 00:09:30.960 on every one of those deals. 254 00:09:31.520 --> 00:09:33.360 And so it was because he understood the value 255 00:09:34.000 --> 00:09:37.360 that he was providing to the building owners who had owned the buildings for many, many years 256 00:09:37.360 --> 00:09:38.720 and wanted to get cash. 257 00:09:38.720 --> 00:09:41.600 He would lease it back to them after he bought it from them. 258 00:09:41.600 --> 00:09:42.960 And then he would flip it to an investor 259 00:09:42.960 --> 00:09:44.720 who wanted to get a tax right off. 260 00:09:44.720 --> 00:09:46.560 So he understood the needs of multiple parties 261 00:09:46.560 --> 00:09:48.000 and was able to make the difference. 262 00:09:48.000 --> 00:09:50.400 And if he does one of those deals and he makes four million dollars, 263 00:09:50.400 --> 00:09:51.760 how does he make a hundred thousand dollars a year? 264 00:09:51.760 --> 00:09:52.480 I have no idea. 265 00:09:52.480 --> 00:09:54.000 He probably wouldn't answer the question because he's like, 266 00:09:54.000 --> 00:09:54.800 why would I bother? 267 00:09:55.680 --> 00:09:57.520 And so that's the things people are asking the wrong question. 268 00:09:57.520 --> 00:09:59.360 And so you always answer the questions you ask. 269 00:09:59.360 --> 00:10:01.040 And so the point of this is to get you asked different questions. 270 00:10:02.000 --> 00:10:03.600 I'll show you the last one right now. 271 00:10:03.600 --> 00:10:05.120 Which is that you might be like, okay, well, 272 00:10:05.120 --> 00:10:06.640 I don't have any money, etc. 273 00:10:06.640 --> 00:10:08.560 And I give you a whole bunch of examples that don't require any money. 274 00:10:08.560 --> 00:10:09.440 But here's another one. 275 00:10:09.440 --> 00:10:11.360 It's that you can go find stuff that you really like 276 00:10:11.360 --> 00:10:12.640 and go promote that. 277 00:10:12.640 --> 00:10:14.640 So you don't have to go find and make your own products. 278 00:10:14.640 --> 00:10:17.040 You go find products that you really like from other companies 279 00:10:17.040 --> 00:10:19.040 and just become affiliates of those products. 280 00:10:19.040 --> 00:10:19.600 Right? 281 00:10:19.600 --> 00:10:21.840 And the nice thing is that I just recommend you be honest. 282 00:10:21.840 --> 00:10:24.400 They're like, hey, I tried a hundred fucking different soaps. 283 00:10:24.400 --> 00:10:25.520 This is my favorite one. 284 00:10:25.520 --> 00:10:28.880 And here's why people don't want to go through the time 285 00:10:28.880 --> 00:10:33.360 and the money of figuring out which soap is the best for your audience. 286 00:10:33.360 --> 00:10:35.520 And if you make the rack after you do that, 287 00:10:35.520 --> 00:10:38.000 they're like, oh, well, shoot, he just saved me time. 288 00:10:38.000 --> 00:10:39.200 He provided me value. 289 00:10:39.200 --> 00:10:42.400 And so then I'll go buy from him through his link or whatever. 290 00:10:42.400 --> 00:10:42.800 Right? 291 00:10:42.800 --> 00:10:44.800 And so you can affiliate other people's products 292 00:10:44.800 --> 00:10:47.520 and make money in that way without any money out of pocket. 293 00:10:48.320 --> 00:10:50.400 And then finally, arbitrage in general, 294 00:10:50.400 --> 00:10:53.760 which is a fancy word, but it just means that you sell 295 00:10:53.920 --> 00:10:56.320 the same thing between two different markets 296 00:10:56.320 --> 00:10:57.840 because they're priced differently. 297 00:10:57.840 --> 00:11:01.680 So the simplest example is if Bitcoin is $19,000 in Japan 298 00:11:01.680 --> 00:11:05.440 on the Japanese market, it's $19,100 in the US market, 299 00:11:05.440 --> 00:11:08.240 you buy the $19,000 Bitcoin over in Japan 300 00:11:08.240 --> 00:11:10.960 and you sell it in the American market for $19.1 301 00:11:10.960 --> 00:11:12.480 and you make a hundred bucks. 302 00:11:12.480 --> 00:11:13.920 That's all arbitrage is. 303 00:11:13.920 --> 00:11:16.000 And it happens with physical products. 304 00:11:16.000 --> 00:11:19.040 It happens with lending money between two parties. 305 00:11:19.040 --> 00:11:20.800 If you can get money for 1%, 306 00:11:20.880 --> 00:11:23.120 and you can sell the money for 6%, 307 00:11:23.120 --> 00:11:24.720 you make 5% is the difference. 308 00:11:24.720 --> 00:11:27.040 And you can put as many zeros as you want on that transaction. 309 00:11:27.040 --> 00:11:28.560 It works the same way. 310 00:11:28.560 --> 00:11:30.800 All of these are different versions of arbitrage, 311 00:11:30.800 --> 00:11:32.560 which is just same thing. 312 00:11:32.560 --> 00:11:34.960 Two markets, two different prices, you make the difference. 313 00:11:34.960 --> 00:11:37.200 And so if you're looking for ways to make money, 314 00:11:37.200 --> 00:11:39.360 look for arbitrage opportunities 315 00:11:39.360 --> 00:11:41.360 because that's where you can make tremendous income. 316 00:11:42.160 --> 00:11:45.520 So the next way to make a million dollars without any money 317 00:11:45.520 --> 00:11:49.280 is that you find something that is undervalued 318 00:11:49.280 --> 00:11:51.600 or that you believe will be undervalued in the future. 319 00:11:51.600 --> 00:11:53.840 And then you ask for contract to buy it. 320 00:11:53.840 --> 00:11:56.400 So I was talking to Caleb about this 321 00:11:56.400 --> 00:11:57.600 because he's like, oh, it's kind of like flipping. 322 00:11:57.600 --> 00:11:59.840 I was like, it's not because the difference between flipping 323 00:11:59.840 --> 00:12:00.960 is like you go to the garage sale, 324 00:12:00.960 --> 00:12:02.080 you buy something for a buck 325 00:12:02.080 --> 00:12:04.000 and then you find out that it's worth 30 online 326 00:12:04.000 --> 00:12:05.200 and you make the difference. 327 00:12:05.920 --> 00:12:07.600 The difference here is that when you get an option, 328 00:12:07.600 --> 00:12:08.800 it's like you go into the person 329 00:12:08.800 --> 00:12:10.800 who owns the garage and saying, hey, 330 00:12:10.800 --> 00:12:14.640 I would like the option to buy this thing for a dollar 331 00:12:14.640 --> 00:12:17.920 or rather two dollars if they're marketing it for a dollar 332 00:12:17.920 --> 00:12:19.680 for the next 30 days. 333 00:12:19.680 --> 00:12:20.560 That's what I would like. 334 00:12:20.560 --> 00:12:23.200 And I will pay you a penny for that option. 335 00:12:23.200 --> 00:12:25.040 And then you sign an agreement and they say, 336 00:12:25.040 --> 00:12:26.800 sure, you have that option. 337 00:12:26.800 --> 00:12:28.800 And then now you take that piece of paper 338 00:12:28.800 --> 00:12:30.320 and the agreement that you can purchase it 339 00:12:30.320 --> 00:12:32.480 at a fixed price over this period of time 340 00:12:32.480 --> 00:12:36.640 and then you say, hey, anybody who's got $30, 341 00:12:36.640 --> 00:12:39.120 I know you want this thing because you're willing to pay me 30. 342 00:12:39.120 --> 00:12:40.560 Why don't you pay me 20 for it 343 00:12:40.560 --> 00:12:42.000 and I'll just give you the rights to buy it. 344 00:12:42.720 --> 00:12:46.080 And then you sell the paper for 20 bucks 345 00:12:46.240 --> 00:12:47.760 and it costs you a penny 346 00:12:47.760 --> 00:12:48.960 and then the person who bought it from you 347 00:12:48.960 --> 00:12:50.720 makes the spread on the 10 because they're happy 348 00:12:50.720 --> 00:12:51.680 because they're going to get it for less 349 00:12:51.680 --> 00:12:52.880 than they probably would have paid for it. 350 00:12:52.880 --> 00:12:55.040 And you get rewarded for finding something 351 00:12:55.040 --> 00:12:58.240 that is worth more than you got secured the option 352 00:12:58.240 --> 00:12:59.680 to purchase it for it. 353 00:12:59.680 --> 00:13:00.640 And you made the difference. 354 00:13:00.640 --> 00:13:03.200 And in that instance, you made a lot of the difference, right? 355 00:13:03.200 --> 00:13:05.520 And you're like, how is that possible? 356 00:13:05.520 --> 00:13:07.280 I'm making these to break your beliefs 357 00:13:07.280 --> 00:13:09.600 about what is possible because it is a farce 358 00:13:09.600 --> 00:13:11.920 when you think that you have to have money to make money. 359 00:13:11.920 --> 00:13:14.160 You have to have skills to make money. 360 00:13:14.160 --> 00:13:16.000 If you can find an asset that's undervalued, 361 00:13:16.000 --> 00:13:18.000 like a house, like a building, like a WhatsApp, whatever. 362 00:13:18.000 --> 00:13:19.760 And if you're like, well, these are on all over the place, 363 00:13:19.760 --> 00:13:21.600 duh, that's why it takes skill to do it. 364 00:13:21.600 --> 00:13:22.880 That's why everyone's not a millionaire. 365 00:13:22.880 --> 00:13:23.760 I'm not saying it's easy, 366 00:13:23.760 --> 00:13:26.640 but I'm saying you don't need to have money to make money. 367 00:13:26.640 --> 00:13:28.160 That's what I'm saying here. 368 00:13:28.160 --> 00:13:32.000 And so if you go find a house that's worth $10 million 369 00:13:32.000 --> 00:13:34.400 and you can get it for seven, 370 00:13:34.400 --> 00:13:37.040 you can get the bank to pay you eight for the house 371 00:13:37.040 --> 00:13:39.600 because they'll do 80% loan to value, right? 372 00:13:39.600 --> 00:13:42.400 And so if you bought it for seven 373 00:13:42.400 --> 00:13:44.240 and the loan will be for eight, 374 00:13:44.320 --> 00:13:46.560 it's like refinancing out the money. 375 00:13:46.560 --> 00:13:50.480 So you make the spread from the bank with no money down. 376 00:13:50.480 --> 00:13:53.480 So Manny Coshman was able to make his first million dollars 377 00:13:53.480 --> 00:13:55.600 in real estate, if you've ever heard his story, 378 00:13:55.600 --> 00:13:57.480 was because this is literally what he did. 379 00:13:57.480 --> 00:14:01.360 He went from broke to a millionaire on his first transaction. 380 00:14:01.360 --> 00:14:02.480 The reason I'm telling you this 381 00:14:02.480 --> 00:14:05.040 is because if you believe the shit that you're reading, 382 00:14:05.040 --> 00:14:07.240 if you're listening to poor people and advised it 383 00:14:07.240 --> 00:14:09.320 on how to be rich, you will stay poor. 384 00:14:09.320 --> 00:14:10.360 They have no idea. 385 00:14:10.360 --> 00:14:11.760 You don't need money to make money. 386 00:14:12.600 --> 00:14:14.720 Real quick, guys, you guys already know 387 00:14:14.720 --> 00:14:17.960 that I don't run any ads on this and I don't sell anything. 388 00:14:17.960 --> 00:14:19.840 And so the only ask that I can ever have 389 00:14:19.840 --> 00:14:21.240 if you guys said that you helped me spread the words, 390 00:14:21.240 --> 00:14:22.720 we can have more entrepreneurs, 391 00:14:22.720 --> 00:14:24.440 make more money, feed their families, 392 00:14:24.440 --> 00:14:26.840 make better products and have better experiences 393 00:14:26.840 --> 00:14:28.400 for their employees and customers. 394 00:14:28.400 --> 00:14:30.640 And the only way we do that is if you can rate 395 00:14:30.640 --> 00:14:32.880 and review and share this podcast. 396 00:14:32.880 --> 00:14:34.200 So the single thing that I have to do, 397 00:14:34.200 --> 00:14:35.440 is you can just leave a review, 398 00:14:35.440 --> 00:14:37.400 but take 10 seconds or one type of the thug 399 00:14:37.400 --> 00:14:38.680 that would need the absolute world to be 400 00:14:38.680 --> 00:14:41.680 and more importantly, it may change the world to someone else. 401 00:14:42.400 --> 00:14:46.920 Another way to make a million dollars is to sell something 402 00:14:46.920 --> 00:14:49.720 that's expensive, that you never owned 403 00:14:49.720 --> 00:14:53.000 and be the salesperson like a 20 million dollar house 404 00:14:53.000 --> 00:14:55.400 and get a million dollar commission. 405 00:14:55.400 --> 00:14:56.240 That's how you do it. 406 00:14:56.240 --> 00:14:57.480 You never own the house. 407 00:14:57.480 --> 00:14:59.960 You literally find something that's very valuable. 408 00:14:59.960 --> 00:15:02.000 You go to the owner, you say you can sell it, 409 00:15:02.000 --> 00:15:04.960 you have the skill of sales and you sell 410 00:15:04.960 --> 00:15:07.360 that very expensive thing and you get a small percentage 411 00:15:07.360 --> 00:15:09.760 of the thing and the bigger the thing that you sell, 412 00:15:09.760 --> 00:15:11.440 the more money you will make. 413 00:15:11.440 --> 00:15:13.080 The same thing can happen for business. 414 00:15:13.080 --> 00:15:15.200 So when we sold prestige labs in Jim launch, 415 00:15:15.200 --> 00:15:16.880 we sold for 46.2 million. 416 00:15:16.880 --> 00:15:21.880 The bankers got $2 million for facilitating the transaction. 417 00:15:22.400 --> 00:15:24.320 They never owned anything. 418 00:15:24.320 --> 00:15:26.720 They signed an agreement with us, which cost them no money. 419 00:15:26.720 --> 00:15:29.160 And then they did work, which cost the company money 420 00:15:29.160 --> 00:15:31.280 but didn't cost the individuals money. 421 00:15:31.280 --> 00:15:33.080 They had skills, they applied those skills. 422 00:15:33.080 --> 00:15:34.760 They got paid $2 million. 423 00:15:34.760 --> 00:15:37.040 You can make money, lots of money, 424 00:15:37.040 --> 00:15:37.960 without having lots of money. 425 00:15:37.960 --> 00:15:39.880 And literally all you do to all of these examples 426 00:15:39.880 --> 00:15:41.480 and giving is you add zeros. 427 00:15:41.480 --> 00:15:42.880 Like it works the same way. 428 00:15:42.880 --> 00:15:44.080 You get an option to buy a company. 429 00:15:44.080 --> 00:15:46.040 What do you think are options traders? 430 00:15:46.040 --> 00:15:47.360 That's what they're doing. 431 00:15:47.360 --> 00:15:49.320 They trade options to buy companies. 432 00:15:49.320 --> 00:15:53.040 So they buy an option to buy a company, let's say, 433 00:15:53.040 --> 00:15:54.120 they get a hundred options 434 00:15:54.120 --> 00:15:55.040 because they have limits on them. 435 00:15:55.040 --> 00:15:56.200 It's not an unlimited option. 436 00:15:56.200 --> 00:15:57.720 They get a hundred options that they can choose 437 00:15:57.720 --> 00:15:59.320 to exercise, right? 438 00:15:59.320 --> 00:16:01.240 And so let's say that the stock price 439 00:16:01.240 --> 00:16:03.360 that they're getting the option for is $40. 440 00:16:03.360 --> 00:16:07.640 And at the time, it's $50 in the future 441 00:16:07.640 --> 00:16:09.640 when they secure the option in the past. 442 00:16:09.640 --> 00:16:12.360 And so they paid 1% of the total option, 443 00:16:12.360 --> 00:16:14.080 which should be 40 times a hundred, 444 00:16:14.080 --> 00:16:16.520 which would be $4,000, they pay 1% of that is 445 00:16:16.520 --> 00:16:18.400 typically the price for acquiring options, 446 00:16:18.400 --> 00:16:19.840 1% of the total purchase. 447 00:16:19.840 --> 00:16:21.720 So they pay whatever, 40 bucks for that. 448 00:16:21.720 --> 00:16:26.120 And then later, if it does go up and it's 50 bucks, 449 00:16:26.120 --> 00:16:28.400 they make the difference on the 10 times a hundred. 450 00:16:28.400 --> 00:16:31.560 It's the $1,000 they made on 40 bucks, right? 451 00:16:31.560 --> 00:16:33.720 That's how opt in trading works at a high level. 452 00:16:33.720 --> 00:16:35.040 There's a million other things I don't want to get into it. 453 00:16:35.040 --> 00:16:36.800 But the point is like they're doing that 454 00:16:36.800 --> 00:16:39.240 just on companies, right? 455 00:16:39.240 --> 00:16:41.520 So you can do that on a house, you can do that on a business, 456 00:16:41.520 --> 00:16:42.800 you can do that on a company, 457 00:16:42.800 --> 00:16:45.400 the concept of trading a future value. 458 00:16:45.400 --> 00:16:46.840 That's what it is. 459 00:16:46.840 --> 00:16:48.600 Another way that you can make a million dollars 460 00:16:48.600 --> 00:16:50.560 is that you can put a small amount of money 461 00:16:50.560 --> 00:16:51.840 into something that's extremely risky, 462 00:16:51.840 --> 00:16:54.680 which is the NFT crypto, et cetera, world. 463 00:16:54.680 --> 00:16:57.440 And then attach an audience to it. 464 00:16:57.440 --> 00:17:02.040 And so you create scarcity for a good or service or asset. 465 00:17:02.040 --> 00:17:04.200 And then you blow an audience on top of it, 466 00:17:04.200 --> 00:17:06.360 which then jacks the price up of whatever the thing it is 467 00:17:06.360 --> 00:17:07.400 that you're selling. 468 00:17:07.400 --> 00:17:08.520 So you have a scarce resource, 469 00:17:08.520 --> 00:17:09.880 so you have five of the thing, 470 00:17:09.880 --> 00:17:12.240 and then you get a million people to want the thing, 471 00:17:12.240 --> 00:17:13.840 and then you sell only those five, 472 00:17:13.840 --> 00:17:16.080 and then the price that you can charge for anything 473 00:17:16.080 --> 00:17:17.320 when you have a million people betting on it, 474 00:17:17.320 --> 00:17:19.120 if there's only five of them is a lot. 475 00:17:19.120 --> 00:17:21.080 So it's another way that you can make a million dollars, 476 00:17:21.080 --> 00:17:22.200 and that's on a digital asset, 477 00:17:22.200 --> 00:17:23.840 which costs you nothing to do. 478 00:17:23.840 --> 00:17:25.880 Another way is literally reverse engineering this. 479 00:17:25.880 --> 00:17:27.640 So this is a little bit more tactical, 480 00:17:27.640 --> 00:17:29.040 but I think it's important. 481 00:17:29.040 --> 00:17:30.480 It's that most people don't even know the math 482 00:17:30.480 --> 00:17:32.480 around making a million dollars, all right? 483 00:17:32.480 --> 00:17:35.080 And so in a big picture perspective, 484 00:17:35.080 --> 00:17:37.280 you can just sell something for a million dollars, 485 00:17:37.280 --> 00:17:38.600 and that may make you laugh, 486 00:17:38.600 --> 00:17:40.960 but like that is also a way to make a million dollars. 487 00:17:40.960 --> 00:17:43.560 Underneath of that, you can sell 100 things 488 00:17:43.560 --> 00:17:45.600 that are $10,000, right? 489 00:17:45.600 --> 00:17:47.360 Which is two a week. 490 00:17:47.360 --> 00:17:49.400 So two people a week for 10 grand, 491 00:17:49.400 --> 00:17:50.320 you have a million dollar business. 492 00:17:50.320 --> 00:17:51.600 Now you're not making necessarily a million dollars 493 00:17:51.600 --> 00:17:52.840 unless you have no employees, 494 00:17:52.840 --> 00:17:54.760 but you have a million dollar business. 495 00:17:54.760 --> 00:17:56.800 Underneath of that, you can also think about it 496 00:17:56.800 --> 00:17:58.480 from a monthly perspective, right? 497 00:17:58.480 --> 00:18:00.680 Which is, okay, if I have people 498 00:18:00.680 --> 00:18:03.280 who are paying me $200 a month, right? 499 00:18:03.280 --> 00:18:05.880 That's $2,400 a year, assuming they stay 500 00:18:05.880 --> 00:18:07.080 for that period of time. 501 00:18:07.080 --> 00:18:09.080 And in order for me to make a million dollars, 502 00:18:09.080 --> 00:18:13.600 I have to do 400 people who are paying me $200 a month, 503 00:18:13.600 --> 00:18:15.840 roughly, it's $83,000, but you get the idea. 504 00:18:15.840 --> 00:18:18.360 413 or whatever the number is. 505 00:18:18.360 --> 00:18:21.040 On recurring revenue, every single month, 506 00:18:21.040 --> 00:18:22.800 makes you a million dollars, right? 507 00:18:22.800 --> 00:18:24.960 You can sell 1,000 people, 1,000 dollar thing. 508 00:18:24.960 --> 00:18:27.240 And a good way to think about this is not even necessarily 509 00:18:27.240 --> 00:18:29.800 the ticket price, but the lifetime value. 510 00:18:29.800 --> 00:18:31.720 All right, I'm gonna get real with you guys right now. 511 00:18:31.720 --> 00:18:34.000 This is how I analyze every business that I look at. 512 00:18:34.000 --> 00:18:35.880 I look at sales velocity against LTVD. 513 00:18:35.920 --> 00:18:37.360 And you're like, what the fuck is that? 514 00:18:37.360 --> 00:18:38.440 I'll tell you right now. 515 00:18:38.440 --> 00:18:40.720 Sales velocity is the number of units sold per month. 516 00:18:40.720 --> 00:18:42.600 All right, so if you sell 20 people a month 517 00:18:42.600 --> 00:18:44.440 on your thing, your sales velocity is 20, 518 00:18:44.440 --> 00:18:46.360 the number of units sold, okay? 519 00:18:46.360 --> 00:18:48.560 And then you multiply that by the lifetime value 520 00:18:48.560 --> 00:18:49.800 of the customer, okay? 521 00:18:49.800 --> 00:18:53.200 And so for me, I know I have a long time horizon. 522 00:18:53.200 --> 00:18:55.920 And so even if something's $10 a month, 523 00:18:55.920 --> 00:18:57.640 and I know that this person over time 524 00:18:57.640 --> 00:18:59.800 is going to be worth $1,000 to me, 525 00:18:59.800 --> 00:19:01.400 then I know that at this sales velocity 526 00:19:01.400 --> 00:19:04.840 at 20 times the lifetime value of $1,000, 527 00:19:04.840 --> 00:19:06.480 I'm gonna be at $20,000 a month 528 00:19:06.480 --> 00:19:08.560 if I change nothing about this business. 529 00:19:08.560 --> 00:19:11.240 It'll increase quickly, and then it'll slow down 530 00:19:11.240 --> 00:19:13.600 as you start to reach equilibrium at the top, 531 00:19:13.600 --> 00:19:15.080 where you have 20 people per month, 532 00:19:15.080 --> 00:19:16.840 and $1,000 in LTVD. 533 00:19:16.840 --> 00:19:18.920 It just depends on how long it takes to get that $1,000. 534 00:19:18.920 --> 00:19:21.280 It takes you a year, you'll get to that balance point 535 00:19:21.280 --> 00:19:22.200 in about a year. 536 00:19:22.200 --> 00:19:23.640 If it actually probably takes two years, 537 00:19:23.640 --> 00:19:24.640 because you have a year to assemble 538 00:19:24.640 --> 00:19:27.040 about a month and then a year later, but doesn't matter. 539 00:19:27.040 --> 00:19:30.200 And so big picture, when you were thinking about 540 00:19:30.200 --> 00:19:31.880 how to make a million dollars, 541 00:19:31.880 --> 00:19:33.560 multiply the number of customers you have 542 00:19:33.600 --> 00:19:34.960 by the lifetime value, 543 00:19:34.960 --> 00:19:36.720 and that will give you your predictive index 544 00:19:36.720 --> 00:19:39.280 of where you will hypothetically max out. 545 00:19:39.280 --> 00:19:43.320 So right now you're stuck, right, at 10 sales a month, 546 00:19:43.320 --> 00:19:45.560 and the average person who pays you 547 00:19:45.560 --> 00:19:48.040 is worth $1,500 of lifetime value, 548 00:19:48.040 --> 00:19:50.600 and if you're stuck at 15,000 a month, 549 00:19:50.600 --> 00:19:52.200 because you got 10 people times 1,500, 550 00:19:52.200 --> 00:19:54.560 and you're stuck at 15,000, you're not gonna grow, 551 00:19:54.560 --> 00:19:56.160 because your lifetime value is 15, 552 00:19:56.160 --> 00:19:57.840 and you're selling 10. 553 00:19:57.840 --> 00:19:59.240 Unless you make them more valuable 554 00:19:59.240 --> 00:20:01.480 or you sell more of them, you're not gonna grow. 555 00:20:01.480 --> 00:20:02.720 And so if you want the million dollars, 556 00:20:02.720 --> 00:20:05.080 you have to figure out how to make that math work. 557 00:20:05.080 --> 00:20:07.680 So either you got to sell whatever that is, 558 00:20:07.680 --> 00:20:09.520 five times, six times more, on the front end, 559 00:20:09.520 --> 00:20:10.760 in terms of total units, 560 00:20:10.760 --> 00:20:13.280 or you have to make them worth five or six times more 561 00:20:13.280 --> 00:20:15.040 on the back end by selling more expensive stuff, 562 00:20:15.040 --> 00:20:15.880 by getting them to stay longer, 563 00:20:15.880 --> 00:20:17.720 upsells, crosshels, et cetera, right? 564 00:20:17.720 --> 00:20:20.320 And so reversing your way into a million dollars 565 00:20:20.320 --> 00:20:21.440 from a business perspective, 566 00:20:21.440 --> 00:20:23.440 it just comes down to number of units sold, 567 00:20:23.440 --> 00:20:26.080 and the lifetime value, that's it. 568 00:20:26.080 --> 00:20:28.480 Another way to make a million dollars with no money, 569 00:20:28.480 --> 00:20:31.600 is that you can combine things that make money 570 00:20:31.600 --> 00:20:33.400 for no money down, give you an example. 571 00:20:33.400 --> 00:20:35.000 So there's a company that we're looking at 572 00:20:35.000 --> 00:20:36.960 in our portfolio that's trying to come on, 573 00:20:36.960 --> 00:20:40.440 and they actually, the guy went through a course on M&A, 574 00:20:40.440 --> 00:20:43.200 he got four small guru businesses 575 00:20:43.200 --> 00:20:46.080 to give him their businesses, he's seller financed it. 576 00:20:46.080 --> 00:20:49.280 So let's say, I'll give you $200,000 for your business, 577 00:20:49.280 --> 00:20:50.760 your business makes $200,000 a year, 578 00:20:50.760 --> 00:20:53.240 and I'll give it to you over the next year, right? 579 00:20:53.240 --> 00:20:54.440 So you just give me the business, 580 00:20:54.440 --> 00:20:56.840 I'll keep running it, you get your $200,000 581 00:20:56.840 --> 00:20:58.840 and after the end of that year, I get it back, 582 00:20:58.840 --> 00:21:01.200 where you can spread the debt over two years, whatever, right? 583 00:21:01.200 --> 00:21:04.320 And so he did that, and he combined four different businesses, 584 00:21:04.320 --> 00:21:06.960 and he has a business now that does four million top line, 585 00:21:06.960 --> 00:21:08.600 a million and a half and bottom line, 586 00:21:08.600 --> 00:21:09.880 and he didn't build any of it. 587 00:21:09.880 --> 00:21:11.720 He just combined it by getting all of them 588 00:21:11.720 --> 00:21:13.800 to seller financed their own businesses to him, 589 00:21:13.800 --> 00:21:16.760 and now he has a business that does four and one and a half, 590 00:21:16.760 --> 00:21:21.120 which might be worth four, five million bucks combined, right? 591 00:21:21.120 --> 00:21:25.400 And so he was able to create that value because of skills. 592 00:21:25.400 --> 00:21:27.320 He didn't need money to do it, he needed skills, 593 00:21:27.320 --> 00:21:28.760 and it's exactly what he did. 594 00:21:28.760 --> 00:21:30.800 And in that instance, he didn't just make a million dollars, 595 00:21:30.800 --> 00:21:33.280 he made something that makes him a million and a half dollars a year, 596 00:21:33.280 --> 00:21:35.040 and he just has to wait a year to pay off his debts, 597 00:21:35.040 --> 00:21:36.840 and then he can start realizing that. 598 00:21:36.840 --> 00:21:40.240 But day one, even with the debt on the books, 599 00:21:40.240 --> 00:21:42.280 he has the asset that is now worth more. 600 00:21:42.280 --> 00:21:44.000 Now you probably want to show a run rate to that like, 601 00:21:44.000 --> 00:21:46.040 you know, it's stable and it's not going to all go to shit, 602 00:21:46.040 --> 00:21:48.400 but fundamentally, it is now a much more valuable thing 603 00:21:48.400 --> 00:21:49.440 than it was before. 604 00:21:49.440 --> 00:21:52.760 So when you combine small things into a bigger thing, 605 00:21:52.760 --> 00:21:53.600 things become more valuable. 606 00:21:53.600 --> 00:21:55.920 If you've heard the term a roll up in private equity, 607 00:21:55.920 --> 00:21:57.440 that's when they take lots of little things, 608 00:21:57.440 --> 00:21:59.360 they combine them together and they make it into a big thing. 609 00:21:59.360 --> 00:22:00.720 And the big thing is worth a lot more 610 00:22:00.720 --> 00:22:03.560 because of the effort it took to combine all the little things. 611 00:22:03.560 --> 00:22:05.320 And so a guy who's got a bigger check, 612 00:22:05.320 --> 00:22:08.240 Carlisle, I can't write checks for less than $100 million, right? 613 00:22:08.240 --> 00:22:11.000 It's not worth it to them, it's not worth the time. 614 00:22:11.000 --> 00:22:15.360 And so they let these small operators make the purchase 615 00:22:15.360 --> 00:22:19.120 more efficient for the big sellers and get the arbitrage. 616 00:22:19.120 --> 00:22:20.440 So at the smallest level, 617 00:22:20.440 --> 00:22:22.200 people will just give their businesses away for free. 618 00:22:22.200 --> 00:22:23.640 By the way, if you didn't know that, 619 00:22:23.640 --> 00:22:27.200 like every day, like 10,000 old people retire, 620 00:22:27.200 --> 00:22:28.400 and they just give up their businesses 621 00:22:28.440 --> 00:22:31.160 because their kids don't want to be plumbers or whatever it is. 622 00:22:31.160 --> 00:22:32.360 They just give up their businesses. 623 00:22:32.360 --> 00:22:34.720 So there's huge opportunity right now to do that. 624 00:22:34.720 --> 00:22:37.400 And so people can mop these up for basically nothing. 625 00:22:37.400 --> 00:22:38.520 They roll them together and they sell 626 00:22:38.520 --> 00:22:40.440 to the first kind of tier of private equity. 627 00:22:40.440 --> 00:22:41.680 Now those tiers of private equity, 628 00:22:41.680 --> 00:22:42.880 like the guy that was telling you, 629 00:22:42.880 --> 00:22:44.560 he's just mopping up the bottom here, right? 630 00:22:44.560 --> 00:22:47.080 He's got four million, five million bucks of top line. 631 00:22:47.080 --> 00:22:50.160 Now another guy is gonna take four or five of those guys, 632 00:22:50.160 --> 00:22:52.680 and mop them into $25 million of top line 633 00:22:52.680 --> 00:22:55.360 and six or seven million dollars of EBITDA. 634 00:22:55.360 --> 00:22:59.360 And he's gonna be able to sell that for 60 to 70 million. 635 00:22:59.360 --> 00:23:00.200 And then from there, 636 00:23:00.200 --> 00:23:02.240 there's a guy who's mopping up 25s 637 00:23:02.240 --> 00:23:05.320 and putting them together to be 125 million top line 638 00:23:05.320 --> 00:23:07.160 with 30, 40 million. 639 00:23:07.160 --> 00:23:08.920 And that guy's gonna get even bigger multiple. 640 00:23:08.920 --> 00:23:11.560 So you get the arbitrage on the multiple 641 00:23:11.560 --> 00:23:14.920 that is given to the business that you're buying. 642 00:23:14.920 --> 00:23:16.480 Like that's the arbitrage between the two things. 643 00:23:16.480 --> 00:23:18.360 Like the guy who gets it for free, 644 00:23:18.360 --> 00:23:20.080 he gets a huge arbitrage by percentage, 645 00:23:20.080 --> 00:23:21.560 but his absolute amount is lower. 646 00:23:21.560 --> 00:23:24.160 At the end, the arbitrage in terms of multiples, 647 00:23:24.160 --> 00:23:25.080 it's not as high, 648 00:23:25.120 --> 00:23:26.800 you're getting it on an enormous amount of money. 649 00:23:26.800 --> 00:23:28.440 And so everybody makes money down the chain, 650 00:23:28.440 --> 00:23:29.440 it's just on different ways. 651 00:23:29.440 --> 00:23:31.560 Here on the bottom, it's on the multiple on the top, 652 00:23:31.560 --> 00:23:33.760 it's just on the fact that it's such a huge amount of money. 653 00:23:33.760 --> 00:23:34.880 If you get one more, 654 00:23:34.880 --> 00:23:38.600 if you go from a 10x to a 12x on $100 million, 655 00:23:38.600 --> 00:23:40.400 well then you just make 200 million, 656 00:23:40.400 --> 00:23:42.440 even with that 10 to 12 difference, right? 657 00:23:42.440 --> 00:23:43.880 That's the idea. 658 00:23:43.880 --> 00:23:46.240 Another way to make money is that you lend money 659 00:23:46.240 --> 00:23:47.720 between two parties. 660 00:23:47.720 --> 00:23:52.120 So if you get access to money between one person, 661 00:23:52.120 --> 00:23:54.440 and he's like, I'll give you money at this rate, 662 00:23:54.440 --> 00:23:55.280 and these people are like, 663 00:23:55.280 --> 00:23:57.040 I'll pay you money at this rate, 664 00:23:57.040 --> 00:23:58.280 you hand the money to this person, 665 00:23:58.280 --> 00:23:59.520 you make the difference, 666 00:23:59.520 --> 00:24:01.600 and you can do that at every level of business, 667 00:24:01.600 --> 00:24:04.600 whether it's $100, whether it's a billion dollars, 668 00:24:04.600 --> 00:24:05.640 your arbitraging price, 669 00:24:05.640 --> 00:24:08.440 but now you're actually just arbitraging money. 670 00:24:08.440 --> 00:24:09.960 Another way to make a million dollars 671 00:24:09.960 --> 00:24:12.520 is to promote stuff that other people sell. 672 00:24:12.520 --> 00:24:14.000 So rather than you try and figure out 673 00:24:14.000 --> 00:24:16.880 how to like build a supply chain and build products 674 00:24:16.880 --> 00:24:17.880 and do all that stuff, 675 00:24:17.880 --> 00:24:19.200 you find stuff you like, 676 00:24:19.200 --> 00:24:21.120 and then you promote their stuff, 677 00:24:21.120 --> 00:24:22.800 and you just get money, 678 00:24:22.800 --> 00:24:24.400 and it costs you nothing, right? 679 00:24:24.440 --> 00:24:26.680 And all it did is cost you the time to build the audience. 680 00:24:26.680 --> 00:24:27.440 All right, and so if you're like, 681 00:24:27.440 --> 00:24:28.240 well, I don't have an audience. 682 00:24:28.240 --> 00:24:31.880 It's like, well, I didn't say that it was free. 683 00:24:31.880 --> 00:24:34.080 I said it wasn't costly money-wise. 684 00:24:34.080 --> 00:24:35.680 You can do that if you don't have money, 685 00:24:35.680 --> 00:24:36.520 if you have the audience, 686 00:24:36.520 --> 00:24:38.400 if you don't have the audience, get the skills. 687 00:24:38.400 --> 00:24:40.040 That's the point. 688 00:24:40.040 --> 00:24:42.200 And the last one is arbitrage of a different kind, 689 00:24:42.200 --> 00:24:44.240 which is arbitrage in between two things. 690 00:24:44.240 --> 00:24:45.960 And so think about it this way. 691 00:24:45.960 --> 00:24:47.400 So I talked about the option thing, right? 692 00:24:47.400 --> 00:24:48.480 That might seem like a little bit 693 00:24:48.480 --> 00:24:49.800 of morphist to some of you. 694 00:24:49.800 --> 00:24:50.960 But think about this. 695 00:24:50.960 --> 00:24:53.720 Imagine you look on Walmart.com 696 00:24:53.720 --> 00:24:56.520 and see a product that's selling for 10 bucks, 697 00:24:56.520 --> 00:25:00.280 and you go on Amazon and it's selling for 14 bucks. 698 00:25:00.280 --> 00:25:02.280 You can mark it and have the difference 699 00:25:02.280 --> 00:25:05.960 between those two prices and never touch anything, right? 700 00:25:05.960 --> 00:25:07.480 You can do that as many times as you want 701 00:25:07.480 --> 00:25:08.680 to make a million dollars, 702 00:25:08.680 --> 00:25:10.680 and it costs you no risk, right? 703 00:25:10.680 --> 00:25:12.600 Now, whenever you take on inventory, 704 00:25:12.600 --> 00:25:13.480 take on these other things, 705 00:25:13.480 --> 00:25:15.400 you incur more risk, but you have more upside. 706 00:25:15.400 --> 00:25:16.720 But the thing is that with scale, 707 00:25:16.720 --> 00:25:18.920 you can make anything big, right? 708 00:25:18.920 --> 00:25:20.400 So if you sell a million units of something, 709 00:25:20.400 --> 00:25:22.640 you tend to make money in general. 710 00:25:22.640 --> 00:25:25.560 And so I want people thinking in orders of magnitude, 711 00:25:25.560 --> 00:25:28.480 in terms of like not just how do I make $100,000 a year, 712 00:25:28.480 --> 00:25:29.520 but how do I make a million dollars 713 00:25:29.520 --> 00:25:31.160 on a single transaction? 714 00:25:31.160 --> 00:25:32.760 If you're like, I don't know how to do that, 715 00:25:32.760 --> 00:25:34.960 then solve for that problem. 716 00:25:34.960 --> 00:25:36.120 Like it's gonna take you to sit, 717 00:25:36.120 --> 00:25:38.200 and honestly, it might even take you less time, 718 00:25:38.200 --> 00:25:41.000 to learn what to do to make a million dollars, 719 00:25:41.000 --> 00:25:43.160 then it does learn what to do to make $100,000. 720 00:25:43.160 --> 00:25:45.040 Like the time it takes to learn the thing is the same, 721 00:25:45.040 --> 00:25:47.960 you just change the goal of what you're trying to learn. 722 00:25:47.960 --> 00:25:48.720 And so it ends up happening 723 00:25:48.720 --> 00:25:51.200 because people go up the entrepreneurial ladder, 724 00:25:51.200 --> 00:25:54.680 and they give themselves permission to learn the next level. 725 00:25:54.680 --> 00:25:56.560 When I'm giving you permission to learn the top level, 726 00:25:56.560 --> 00:26:00.800 day one, you can just go for learning the skills of the top. 727 00:26:00.800 --> 00:26:03.480 You don't have to learn how to make $100,000 a year. 728 00:26:03.480 --> 00:26:05.320 You can just go straight for learning how to make 729 00:26:05.320 --> 00:26:07.040 a million dollars on a single transaction 730 00:26:07.040 --> 00:26:08.040 and learn how to do that. 731 00:26:08.040 --> 00:26:09.880 And I'll tell you a quick story on this. 732 00:26:09.880 --> 00:26:11.880 So buddy of mine got into real estate, 733 00:26:11.880 --> 00:26:14.560 was flipping houses, didn't think there was a lot of money 734 00:26:14.560 --> 00:26:16.240 and it was like, oh, this sucks, this is so much work 735 00:26:16.240 --> 00:26:17.480 and there's all those, you know, 736 00:26:17.480 --> 00:26:19.360 fixing things and all this stuff, he didn't like it. 737 00:26:19.360 --> 00:26:22.760 So he ended up buying a 14 unit apartment building 738 00:26:22.760 --> 00:26:25.800 with someone else's money and he didn't have any, 739 00:26:25.800 --> 00:26:28.880 bought the apartment building and then sold it 740 00:26:28.880 --> 00:26:31.560 four months later for $500,000 more. 741 00:26:31.560 --> 00:26:33.360 And he made 500 grand in one transaction 742 00:26:33.360 --> 00:26:34.880 and he was like, holy shit. 743 00:26:34.880 --> 00:26:37.120 And so then he realized that the more expensive the building 744 00:26:37.120 --> 00:26:39.040 he sold, the more money he made. 745 00:26:39.040 --> 00:26:41.160 And so then he started getting into commercial real estate, 746 00:26:41.160 --> 00:26:44.120 which is even more expensive than residential on average. 747 00:26:44.120 --> 00:26:45.840 And so he's like, wait a second, 748 00:26:45.840 --> 00:26:48.640 I can buy something for 10 million 749 00:26:48.680 --> 00:26:51.360 and then I can flip it to somebody for 13 750 00:26:51.360 --> 00:26:54.560 and not even hold onto it for that long in a few months. 751 00:26:54.560 --> 00:26:57.160 And then all of a sudden, he started flipping 752 00:26:57.160 --> 00:27:01.000 30 or 40 of these a year with just him and a couple of VAs. 753 00:27:01.960 --> 00:27:04.400 And just like that, the man's making 754 00:27:04.400 --> 00:27:05.680 many, many millions a month 755 00:27:05.680 --> 00:27:07.560 and I would say many, many, many, many, many 756 00:27:07.560 --> 00:27:09.640 with a very small team because he learned a skill 757 00:27:09.640 --> 00:27:12.560 that he could do at scale because he's not actually 758 00:27:12.560 --> 00:27:14.560 selling a ton of units, just each of the units 759 00:27:14.560 --> 00:27:16.040 he sells is worth so much. 760 00:27:16.080 --> 00:27:19.880 And so he sends out 250,000 letters a year 761 00:27:19.880 --> 00:27:21.920 to make 40 deals. 762 00:27:21.920 --> 00:27:24.160 People were like, well, how can I find a deal like that? 763 00:27:24.160 --> 00:27:26.600 Knock on 250,000 fucking doors 764 00:27:26.600 --> 00:27:28.200 and that's how you find deals like that. 765 00:27:28.200 --> 00:27:29.960 But people dramatically underestimate the amount 766 00:27:29.960 --> 00:27:31.520 of effort it takes to be really successful. 767 00:27:31.520 --> 00:27:32.800 They're like, I still know 100 letters out. 768 00:27:32.800 --> 00:27:34.760 It's like, 100's not even a test size. 769 00:27:34.760 --> 00:27:36.240 It's literally just an irrelevant number. 770 00:27:36.240 --> 00:27:38.400 The statistical, like, efficiency of that number 771 00:27:38.400 --> 00:27:40.160 is so small, it's irrelevant. 772 00:27:40.160 --> 00:27:41.240 It doesn't even matter.