The Coming Economic Crisis | Confronting Barbara Corcoran in Person.

starting a business and being blind and

ignorant and dumb is an advantage very

first day I met them I said they're

cocky and I knew they had a vulnerable

heel I said I'm going to come and I'm

going to get the artificial intelligence

has changed so many businesses you have

a limited window to influence your kids

to cause them pain make sure you have a

post-op with your wife why are you so

jaded I'm jaded

I mean I've been hearing recession talk

all year round okay now it's going to

happen in the next quarter what he

pitched was he pitched the

Trump factor I watched these grown men

analytical Financial types fall for it

so how do you feel then DeSantis versus

Trump versus bide well I think bike

needs some vitamins whatever Kevin

O'Leary said that you're not going to

quote Kim yeah

[Music]

welcome back to another episode of the

meet Kevin show today we are honored to

have Barbara Corcoran in person in New

York City Manhattan Barbara this is

welcoming thank you thank you this is

the place that started everything tell

us about it for you oh you mean my

career oh yeah I love New York City I

think sometimes I look around the city

and I think I could have never built a

great business if I wasn't in New York

City it was a town that the moment I

walked in as a poor kid from New Jersey

that the whole city welcomed me it was a

town that thrived on change even though

they make a big deal about where you're

educated lip service the fact of the

matter is New York doesn't give you oh I

forgot you know don't go say whatever

you want Barbara

New York doesn't give a darn about where

you were from they just wouldn't know

what you could do for them lately you

know that was my value and that's what I

brought to the city and it would have

never happened anywhere but New York now

Kevin O'Leary says he wouldn't be caught

dead living in New York City he can't

afford it

Kevin just doesn't have the bucks he's

been looking at apartments and asking me

for good deals for probably 12 years and

then when I give him a good deal he says

well not right yet he just doesn't have

the cash he's a big fan of diversifying

no more than five percent into one

security or more than say 10 15 in one

sector is he making a mistake should he

be like you and all in on real estate

Hey listen I have my own opinion on that

I believe people that put that theory

forward are probably doing what they say

but do I believe it no I have noticed

that the wealthiest people in the world

do what they do well and I do real

estate well I do investing well I get

good returns I know how to pick

properties so why would I want to be

better at the stock market that I know

nothing about or any other industry for

that matter even though I've invested in

150 businesses on Shark Tank all

different kinds of businesses and I put

my money there that's the limit of my

money my cash investment and that all of

the other money I make I put into real

estate and that's why I have gotten rich

I would have never gotten Rich if I had

tried to diversify as Kevin says no

again Kevin is wrong wow wow now my

father-in-law who helped me get started

as a real estate broker myself you

married the right girl hey there it is

so my father-in-law he always said

I sell real estate I don't sell real

estate because he was a big fan of

serving his clients but keeping all the

real estate he could get his hands on

and Building Wealth through investing in

real estate he believed that you made

your money investing in real estate uh

versus solely your income what's your

take for something of course you know

investing in real estate is a wonderful

magic trick what happens is you become

rich very rich very slowly and you can't

spend the equity well you can you can

mortgage out I've taken mortgages out of

my buildings for spending money but the

fact of the matter is it's a guarantee

you're going to get rich you just hold

the course didn't you find your

father-in-law got very wealthy doing

that before you proposed to his daughter

good point no the question then is

that's not as maybe sexy as putting it

all on a call option expiring this

Friday and getting rich overnight you

find that sexy I don't I'm just saying a

lot of viewers you know they want to get

rich quickly you just have to get rich

slow that that's not as exciting though

oh it's much more exciting do you know

how good it feels to look at your

portfolio and look at it six months

later and realize your rent roll has

increased 12 and your mortgage is the

same and you don't need any roof on the

building and you've put that cash in the

bank no it's great if you own real

estate you measure it by the day almost

by your rent roll and to realize that

the economy always makes friends go up I

never met a landlord abort rents down it

just doesn't happen so I just look at my

properties and realize they're my future

they're just going to become bigger

money makers as they go you know that's

thrilling not winning on an option you

lose it the next day no I don't believe

that

starting with your own home would you

rent where you live or buy where you

live well I would always buy where I

lived and I always have bought where I

live but I have a son who's 28 who has

an investment company in real estate and

he will not buy he says he makes more

money if they invest in another kind of

real estate drives me crazy you know I

love owning and you know people

intrinsically love owning it's not an

intellectual decision they like to know

that they're the king of the universe

they decide what's going to go on here

they're going to decide what they're

going to spend not somebody else wow you

know when it comes to people getting

started people are always worried about

the recession or inflation or what's the

FED going to do should they just start

in real estate and not worry about all

that noise or is there something to time

I think this great virtue in starting

anything it doesn't have to be real

estate starting a business and being

blind and ignorant and dumb is an

advantage I mean I think if I was well

educated and understood the economy and

listened to the reports on recession

when I was starting out or later

building the business into something

large I don't think I'm I would have

done as well there is greatness in just

having a hyper focus on who you want to

become and what you want to build and

just going for it listen to all the

noise out there 90 of it never comes

true I mean I've been hearing recession

talk all year round okay now it's going

to happen in the next quarter I don't

pay attention to it I mean it just gets

psychologically in your way and it

doesn't change anything right it really

doesn't it's always the next quarter

recession's either always coming or here

too much information so much of it is a

headline uh getting in every way and

it's effective but it really does hurt

people psychologically about the

attitude you're investing absolutely

would you say that a lot of at least it

seems this way a lot of people want to

start businesses but they get caught up

not just in the fear of the market but

also sphere of reliability this fear of

employees this fear of making mistakes

and that may be

puts them in quicksand where they never

actually get started what would you say

to people who feel like that it's the

hardest part of building a business is

getting a start wow you're better off

getting any old start doing it all wrong

getting out in the street and actually

having a business because then you find

out what's wrong with it but people have

been educated to make business plans to

analyze things deductive reasoning and I

guess there's a place for that and the

more educated someone is the less likely

I believe they are probably going to be

successful as an entrepreneur that's the

opposite of what you would expect well

it's exactly what I expect on Shark Tank

I never invest in kids that have money I

mean I know it's a precious attitude

toward it but if they have money what

are they reaching for they've had the

fancy vacations the nice cars mom Paws

there always has a backdrop they never

make money for me you give me a poor kid

who has something to prove something to

struggle about something they don't even

know anything about and they find a way

I'm just a believer that too much

education can really hurt people not

that I'm not for education but when it

comes to building a business I think

what you have to do is rely on

experience to just get it going sounds

like that leap of faith faith versus an

analysis paralysis maybe yes like when

you got married or did you analyze the

financial statement no

exactly okay so you follow your gut and

you just went for it right how's it

doing by the way well yeah it's great no

it's actually it's fascinating I was

going to actually ask you about uh about

raising children it was one of my later

questions that's better than asking me

about my marriage oh why no okay now you

have to tell me both yeah I was just

teasing you up I've been married 38

years and it's a I think it's a constant

struggle in endurance I think you just

have to I I think you just have to stay

with it I mean most of my friends have

dropped like flies their husbands are

gone not me I stay with my bill I know

what I got and I look around at all the

other husbands and I think do I want any

of them more than I want billed no so I

settled back back down to Bill I think

marriage is a great thing to say with

isn't that always an issue that people

have though they sort of see The Grass

Is Always Greener somewhere else only if

they're a fool oh wow I mean you have to

concentrate on the important things in

life what's really your core of value in

a relationship and if you could stay

focused on that and not get distracted

by all the noise around you in people's

opinion around you you can stay focused

on having a rock solid marriage I think

I think that actually relates also to

entrepreneurship because a lot of people

get caught up in they want to start a

business and then other people have

their opinions oh no you shouldn't do

that oh it's a bad time I remember when

I became a real estate agent in 2010

people checking me out at Trader Joe's

Oh Real Estate oh that's that sucks what

a terrible business to get into people

coming up to me in-laws oh other very

unless you know you should get a real

job why would you get into real estate

yes well it gave you a sense of shame

but it depended upon how stubborn you

were and how ambitious you were and how

competitive you were with yourself as to

whether you're going to do it or not so

the question is did it really bother you

no because you stayed the course right

it's almost motivated me in a weird way

I felt like uh I'll show you yeah

exactly can I tell you that attitude of

I'll show you is Paramount to building a

business because in the worst times when

everybody allows you to throw in your

hat and give up uh generally a good

entrepreneur has that thing kicking like

oh yeah I'll show you so if you have

that you're meant to be a business or

yourself that's that's uh funny to say

that I just had a service provider uh

that I thought was providing this this

incredible Service uh I mean we don't

have to go in the details of it but

something happened that I thought was

very disappointing almost disrespectful

but I never like to blame uh the other

person I thought to myself okay let me

make some phone calls and see what they

actually do and then I realized

I could get a special license and

basically we could bring in-house what

they do we could save money we can grow

the business more so that that crisis

turned into this interesting opportunity

and I personally I think that's uh that

resonates with what you're saying yeah

but you're taking a couple of things for

granted number one you're taking for

granted that you weren't happy with the

service and you're empowered to do

something about it secondly you put the

time and the energy into checking it out

thirdly you had the self-confidence

thing I could do it better that's a lot

of three steps that a lot of people

don't have so if you make a bundle on

that it's worth it you deserve it and if

you do very very well on it you deserve

it even more that's what I think that's

great advice for somebody getting

started oh sure you gotta just get going

you know most people who are successful

in entrepreneurship and I deal with so

many different people starting

businesses that's my trade frankly as

much as real estate is my trade and I

have to tell you uh that is the best

advice you just handed out so say it

again what did you say well I forgot no

no just do this this idea of yeah well

if maybe you feel slighted or something

how could you improve on it and take

control yourself oh yes improve on

something maybe provide a better service

let me tell you something that happens

with me with my Shark Tank businesses

when Eddie was on Shark Tank they

discovered so even if it's a half-baked

business they have great sales and they

think they're incredible every

entrepreneur thinks I'm a brilliant

person now look at all these sales but

what happens is I wait about three to

four months until the first catastrophe

happens there's always going to be one

and they're looking to me for a solution

and I help as best I can but that's not

really why I'm there I'm there to listen

to their attitude about what went wrong

and there's only two kinds of

entrepreneurs and I just demolish the

ones that are in the wrong category but

the good ones take the responsibility on

themselves the bad ones blame it on the

controller blame it on the the patent

didn't come through say somebody stole

my idea they blame everything you know

the shipment didn't come through it was

faulted they have all these reasons but

the great entrepreneurs say okay it's

done what do we do now that's what what

they do they move forward so blaming and

casting doubt as to whether you're

responsible is a sure sign that you

won't succeed in business I could just

get rid of those people in my mind right

away I have my office every entrepreneur

I've invested in are all my walls

beautiful frames the minute I see them

playing victims I just walk over my wall

and flip it upside down why because when

they call me I sometimes get them mixed

up because I have so many and I look at

the walls and I go oh that one the

victim and I spend about a minute on the

phone versus giving them an hour of my

time wow that it really relates to

something I've heard before this idea of

if you point the finger three fingers

point back at yourself oh I haven't

heard that one yeah I heard this other

finger story when I was a kid oh no

is that for this podcast

so that's fascinating so really

one thing that I found of early

entrepreneurs or people maybe who are

students who want to get started is

sometimes they have this sense of the

world owes me rather than they should

provide the world something first oh

they should they should keep their

parents money in their pocket and not do

a thing this I I wonder how do people

overcome that I I don't like to use the

word but it's the best definition for

that entitlement that the world oh if

you want me to work harder pay me more

that attitude how do you you know the

right way to look at any position you

have is who's paying me money to learn

and if you take a job take a position

just to learn you're in the right course

when someone has an attitude of

entitlement you cannot change it I used

to think you could I used to lecture

people and say well another way of

looking at is blah blah but that's

ingrained when kids feel entitled uh

they really don't see them as the center

of the universe they see the universe as

a center and they're dancing around and

saying what can I get for it it just

doesn't working it cannot change them

I've tried and a pretty pretty

formidable when I'm working on somebody

but I have never been able to move some

somebody one inch on that not at all so

if somebody's if somebody has that

mentality probably not somebody you want

to hire but if somebody maybe doesn't

even realize that they have that

mentality and that's what's holding them

back how could they change how could

they maybe see okay this is how I've got

to change and maybe I suppose another

way to phrase it is how could you

convince them to provide value to the

world first I think what you could do is

strip removal their money and their

privilege put them in a poor apartment

somewhere give them five roommates and

say good luck buddy but parents aren't

willing to do that parents uh with with

wealth or just some affluence make it

their charge to help their children out

but I think I think they don't realize

that kids have to struggle to build

confidence and so if you're always

helping them out they never become

confident individuals they just are

unable to do it so in a parent's attempt

to protect your child to give them

special tutoring to help them get into

the right school to do all this helpful

stuff each of those actions I I think

diminishes that child and if they get

lucky and finally are successful they're

not going to give credit to themselves

I'm meant more miserable Rich Kids

working for their father's firm or some

friends firm and they're not proud of

what they do and the reason is because

they don't feel they did it themselves

the best you can do for a kid is to let

them drop a little you know that's how

they learn what their bottom is and

where their vulnerability is really

that's that's really incredible and it

almost hits deep I have a seven-year-old

I have a five-year-old we're expecting

two more yeah and that's a lot wow this

can be interesting the next year I bet

yeah do you want to be able to make a

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program I've always had this this Vision

that oh I I want to build a business and

then maybe get to work with my children

in the future in the business how nice

but they might want to go off on their

own so I'll just have to have more

children so I have a higher odd of some

of them sticking around why would that

be important that they take over your

business I I don't know I guess I just

want to spend time with them and be with

them you might change your mind by the

time by the top team we'll see you know

and so tell me about that is that the

wrong way to look at it I don't agree

with it myself okay when I was building

my corporate Group business my son was

five when I sold it half the reason I

sold that business is I looked at him

looked at all the guys I knew that were

working for their parents companies very

successful anyone would judge they're

successful and they did a lot of good

things for the parents company but they

never felt satisfied or proud and so I

decided to sell my business half to make

sure my kid didn't go into my business

now ask me what business he's in

real estate investor you mentioned it

earlier investing so go figure but he

built it himself that's his own thing

he's very proud and that's a world apart

from if he had been the son of the big

broker that ran the big firm right

totally different attitude uh you've

just changed my outlook you should you

should try to think I think with kids

really what you could create as

obstacles I mean don't break their legs

and see if they could heal themselves

but I think not to jump in let them find

their own bottom when they're having

their bottoms and it's a very hard thing

to do as a parent because you love your

children more than anything yeah that's

really incredible uh insight and your

poor kids you're not going to give them

the time of day now now I'm just saying

that's it I've got to just get out of

the house

oh my gosh okay

um so that's really incredible and

enlightening thank you for that

um so in that case I mean that I guess

that also associate I think about what

motivates me because people ask me they

say well what motivates you you could

you know retire why keep making videos

try traveling for YouTube with startups

this that or whatever why and it's not a

number for me it's it's I want to build

uh that feeling maybe of I think you

mentioned it's success feeling like you

built something even if there's failure

along the way yes I guess robbing that

from a child is probably the worst thing

the worst thing you build it little by

little if you really look back at your

own life and think where you grew it's

always over hardship even disappointing

heartbreak I mean it's a terrible way to

learn I'm not all for it but it is the

way you learn but I'm not at all

surprised to hear that you're not

motivated by counting the money of how

successful you are because I have found

that people that are after the success

never really get it but people who are

after doing an exceptional job or being

better than the next guy or competing

always get there that competition oh for

sure it's key but I mean I'm sure when

you build your business competition was

was core especially in Manhattan here I

mean this is the epitome of competition

how did you no I see when I started in

the real estate business I always felt

that I called it the toxicity of

Relativity

what's that mean comparing myself to

other people oh somebody else is better

than me and so to some extent it was

motivating but on the other hand it also

felt toxic oh they got the listing over

me yeah and as much as I wanted to think

okay well what could I do better it

always somewhat there was this little

thing in the back your mind like you you

almost you don't want to say but you

feel resentful you're like oh why them

and not me right

how do you overcome that I mean I think

the resentment uh has to be dropped

right away I mean a part of it is

because you're competitive by Nature so

somebody beats you at a particular

challenge like getting the listing of

something a chunk of your business

you're going to look at them and resent

them I went further than resentment I

hated the guts so you have that problem

too okay of course anybody who

worthwhile does you hate their guts

simply because your nature is to be

competitive it's not fair to be that way

but it is that way you know I had a

great Advantage when I was young in the

business I was probably only a business

maybe a year I was 24 I went to a board

meeting of all the real estate Kings of

the industry all rich men who inherited

their Empires from their fathers the

rich fathers who inherit from their

grandfathers and then I come clunking in

but this is what I noticed the very

first day I met them I said they're

cocky and I knew they had a vulnerable

heel I said I'm gonna come and I'm going

to get them because they're cocky the

minute I see a Cockiness in any

institution they're going to lose money

the minute I see it cocky in any any

competition position they're going to

lose money so I saw that they were

vulnerable because they were so damn

sure of themselves whereas I was

insecure so I had to run twice as hard

to prove everything and that's what got

me to where I was how did you deal with

the criticism then and even today I mean

social media it's so easy for people to

criticize oh I don't ever read my social

media you don't accept the compliments I

have them washed out because I don't

want to be depressed I answer all my

social media but only the positive

things I ignore everything else because

you know why I don't really need it but

can I tell you ignoring criticism or as

you put it just a short while ago

ignoring uh your your tendency to watch

what the other guy is doing and feel

envious you cannot watch what the other

guy is doing you just cannot it's poison

you're spending your time your money and

your energy on somebody else like giving

them your wallet no you said I'm happy

they do you're happy you do and I hope

you hope you do poorly and let's focus

on what I'm doing that's funny that you

see that Kathy Wood uh ETF manager yes I

had dinner with her in Tampa and I asked

her how do you deal with the criticism

because she's the definition of what

people like to either applaud or

criticize I'd love to hear this answer

sure her response was why would I allow

any negativity to take away my energy

she's so right she said it's succinctly

which I was trying to say five minutes

ago in 40 words or more

but it's so true she's right

that's quite empowering so what what do

you say to somebody now in in the

economies obviously you know wherever it

is right now it's yeah who you ask

everybody's doomsday yeah ever exactly

and I think that's a lot you mentioned

it earlier it sells the news right oh of

course it is yeah anything it was funny

as soon as the debt ceiling uh started

looking like a deal was set together the

Bloomberg headlines are well now what if

the further on the right or the further

on the left start protesting and then

procedural artist is always a negative

what if the dollar collapses oh like

everything you throw more up on the

screen yeah so how has somebody getting

started coming out of let's say college

or that they've got maybe a thousand

bucks two thousand bucks

just start a business go work for

somebody learn what's the best thing to

do or both

um you know it depends on the individual

for me I had 22 jobs before I started

okay so I was well versed in what a job

meant have a scrap how to make a a tip

better than the next girl uh how to just

prove yourself as a hard worker so I had

all that time and all that people

studying that I got I had terrible

bosses I had a few nice bosses so I came

in at 23 into my own business I looked

young but I wasn't young inside I had

been around the block a few times you

know so I think getting a job of manual

labor where you have to really move your

legs and your feet I think is essential

to learn about business and the best way

but what most kids do today I know the

peers of all my kids when they were

growing up was where could I get a good

summer internship I think it's a total

waste of time you're protected you're

not really working you're sort of

working no get out there and get a job

make a buck and that creates your

confidence just like that so I forget

where I was going with this answer what

was it is getting started as you've got

your first thousand oh yeah so learning

it sounds like so I think before you

take your first thousand bucks and run

out and start a business I think by far

you should get a job just to see what it

works like and how hard it is to make a

buck when you work your ass or for a

dollar you see that thousand dollars as

precious I got a thousand dollar loan

from my boyfriend to start my business

I'm telling you I looked at every penny

of that thousand like it was gold and I

made it stretch three months if I hadn't

I couldn't have stayed in business but

just you have to cherish every penny if

someone can't lecture you on it you have

to learn it by working for a penny and

see how hard it is you know wow yeah now

you mentioned

doing that manual work yes and and

working with people now everybody seems

to care about artificial intelligence

and not dealing with people is that a

mistake oh I don't think everybody cares

about Earth I wouldn't go that far Fair

it can be a lonely path artificial

intelligence has changed so many

businesses I know even in my shop we've

spent so much time writing content now

we are editors we don't brag anymore we

just give it give the job away and then

we edit what we read you know it's so

much easier it's changed everything but

what you can do is put a human being in

a room with a artificial intelligence

new person or a machine and create a

team there's never teammanship and where

do you get the greatness out of people

where do you climb mountains and

accomplish things you never thought you

could accomplish where do you dream and

actually see the dreams come true it's

not there it's with individuals human

interaction and joining hands and

getting excited and criticizing each

other and the whole shooting match

that's what makes a team and you can't

do that so short of that is wonderful

I'm a little concerned about it hurting

a little bit of the new higher reason

every industry because people are

thinking they could farm that work out

right but I believe you have to make a

team of people to begin with and the

easiest time to do is when they young

you know so we'll see where it lands

itself it's very interesting isn't it

though it's fast nobody has the answer

no nobody does yeah what would you say

that's the best way to hire is is do you

hire somebody who has maybe no

experience you can bold them I love it I

love hiring an experienced people when I

was building my career no one wanted to

work for me in my industry because I

want to work for the big companies in

town I don't blame them they had a lot

to offer you know they had a lot of

money they weren't going to go out of

business in two months if they didn't

make it so I kind of got that Viewpoint

so I had to forget about it to do

effective hiring because otherwise it

stood in my way but I have to say

through those years I built my business

on inexperienced people I had Housewives

coming in who had never worked a day in

their life and they had raised the kids

and I had to figure out are they sales

people are they Killers can I close a

deal how do you do that with a housewife

you know I had my methods for

discovering that all right and then once

I started my media business I hire all

kids right out of college it's the

easiest way to go you have a chunk of

beautiful ambition and beautiful

potential and you get to decide how you

might mold it how thrilling is that it's

it's pretty close to Playing God so it's

it's a thrill you know what if you have

somebody experience their attitudes come

with them uh they can sell a little

better on coming in because they use

they lean on their experience to sell

you you know I like I like pure

potential it sounds like you're probably

not a big fan of remote work

my people are in the office two to three

days a week and that's about right if

they chose that they only wanted to be

in the office never I oppose that I'd

have them in one day a week yeah but

they work so much as a team but they

could still work remote what do I care

as long as the work gets done you know

that's a good point yeah that's a good

point so now how could that potentially

affect this

real estate transition that we've seen

we've seen so many people during covid

move to Austin and South Florida

you know away from it they were free no

kidding

could some of that reverse now could we

see it maybe we can go back to

California or New York no I mean when

people leave New York City for different

crisis reasons I've seen over the years

in this business they always come back

but this is different it was pulling up

the shade and letting people know they

had options okay and then accommodated

to by your boss who lets you work at

home so your option didn't disappear no

people now feel more free to live

anywhere they want and it has hit at the

core of many of our major cities of

course but we have so much coming into

the cities I'm not worried about it you

know I'm not thinking oh New York's not

going to fill up those spaces in the

apartment Market there's still not

enough Apartments to go around you know

no it all worked out but it's been a new

freedom for people and they've taken

advantage of and I think it's been

wonderful if People's spirit and it's

been so good that people had a pause

button to actually sit and think what

about this Rat Race I mean is this

really where I want to go you ever hear

the expression that Lily Tomlin she said

even if you to win the rat race it's

still around you're still around I

couldn't remember the punchline okay

yeah you heard that one I only heard the

other day I thought well that's a great

one yeah I better memorize it better oh

that's all right so would you invest

outside of New York or do you generally

prefer just New York or would you would

you go to South Florida and invest in

say residential real estate you're

talking about as an investment you

yourself or somebody listening would you

diversify away from maybe where you live

I took all my money except my existing

Holdings of buildings that I've bought

over time I haven't sold those because

once I buy a building I fall in love

with it especially in New York when it's

made so much money and I can refinance

it and take cash out tax-free oh yeah

let's not forget about that yeah

um but I have to say in the last four

years I've invested uh predominantly in

Pittsburgh and Washington wow uh not New

York at all because they've changed the

laws in New York you cannot improve your

property and hope to get added rent it

used to be you put a roof on a property

got renovated property make it a

stunning place to live and you could

raise the rent not anymore New York

changes all Albany is out of their mind

they chased away investors like me out

of New York City you can't make money in

New York City right now but they will

change again I see the pedals swim both

ways and I'll return with a lot of money

to New York but in these other cities

it's incredible they love real estate

people the laws are friendly to real

estate people they have educated people

the population is growing the cities are

beautiful I I just do better financially

Pittsburgh and DC yeah no Pittsburgh and

Washington I've missed wow okay

Washington State then yeah oh wow okay

so you're traveling over there is this

predominantly multi-family or single or

both what I like I like the sweet spot I

like three units to 15 units somehow I

know I should if you put a lot of them

together you can have a high rise but I

like having my little buildings all

around you I like to see them you know

what I found is that when you get into

too large of real estate that

opportunity to add value goes away you

got the big funds coming in they pay

competition is fierce yeah everybody's

ignoring my pieces more yeah my son

turned me on the smaller parts yeah he

makes this is Whole Living buying those

properties and he's right because he

doesn't have competition and people are

scared right now so you can get good

deals oh yeah you can low bid enough low

bidding and you get a few that except

this is how I started my career

my vision

was I am

driving around with a Prius

meet Kevin the no pressure agent he's a

great fellow of you thank you providing

more value

yeah

right on your car too yeah and then what

I did what's the location there this was

California yeah Santa Barbara that

little market out there yeah and then

what I did is because I wanted to

provide more value for my clients

because I know how important it is to be

quick to be unique and to be in person

yes

I had a little trailer where I keep my

for sale signs so when I signed a list

whatever so when I signed the list I

have to hand you I'm sorry I hadn't vote

on that one that's a good one I could

have had them in the back of a taxi yeah

see because now when you sign a listing

the sign is in the yard the minute you

leave and the client looks and he goes

nobody's done that pretty Snappy you'll

tiger you so I also became a licensed

contractor and a licensed lender so when

I set a listening presentation I could

tell the client

we can list it at say 4.99 yeah or we

could put twenty thousand dollars in and

we can sell it for six hundred thousand

dollars it's a hard 20 to get from a

client though they don't like to spend

money on the list they don't yeah so I

lent it to them because I was a licensed

lender you dirty w i put the deed or I

put a deed a second on the property

which I underwrote the value of the

property anyway yeah right oh you're

doing and I was a licensed lender so I

could legally record a deed uh you know

what you're you were like you were like

those late night hosts who say and not

only that you get this and two you get

an extra two months you're calling me

ShamWow now

the broader economy I have to ask you uh

Federal Reserve inflation interest rates

how much does that really concern you it

doesn't doesn't concern you you know

what I haven't learned about business I

mean myself and also my entrepreneurs I

lecture this to them and I think they

believe me they seem to practice as I

tell them not to read anything

go out for lunch on everything that's

happening and do what they do best which

is to do more of what they're doing well

and you want to know I have learned no

matter what went on the economy now I've

lived through so much in this town this

town has its highs and slows the stock

market crashes 9 11 everything I Barrel

through everything simply because I was

not that informed and I was determined

to get there there's no substitute at

all when you're building a business and

you know you've done it successfully of

your own pure intuition and

determination and ambition to get to the

finish line and if you have that all the

rest of the stuff is noise I'm not

saying it's not credible one way or the

other but what does it have to really do

with what you're going to do today yeah

that's a very good point I suppose then

to to an entrepreneur watching we have

to ask ourselves

when you wake up in the morning does it

really matter what the Federal Reserve

is going to do in two weeks or do our

clients matter and the value we're

trying to provide to that well you can

certainly answer that the only thing

that matters even more than your clients

is how much you value yourself when you

wake up in the morning how much you

value your time and how hard you're

going to drive if you got that in order

everything else your clients respect you

the money comes in everything works out

because you're in control of yourself

how important do you think it is to

people comment this on my channel they

say I I change my mind often and that

has been defined as a flip-flapper oh

flip-flop especially with someone else's

money well no yeah yeah so how important

is that in uh entrepreneurship to be

able to Pivot it's very important and I

really I don't think of it as pivoting

because that sounds like you do a

150 degree turn of one adjustment yeah

yeah what I think is its ability to

listen I change your mind all the time

because I listen hard I might have a

great idea I know it's going to succeed

but then I listened to cool people who

kind of know a little bit more about

that space I have a different

perspective and then I change my mind

based on what they said it doesn't mean

I said oh boy was I wrong but I

incorporate by listening hard so I think

pivoting if that's the factual word is a

result of listening hard in its best

case scenario and changing your business

a little at a time in its worst case

it's like I lost that money I went

through my burn rate I have nothing left

let me borrow more and let me go in a

different direction there's two

different headsets on that isn't there

yeah it's a really good point Kevin

O'Leary said that you're not going to

quote Kevin I I spare me

I know but he agrees with you okay then

let's hear it he says flip-flopping is a

requirement in entrepreneurship no I

would not say Flipline no adjusting is

key adjusting is too expensive so what's

the difference between the two it's like

a 10 adjustment versus a 180 is what

you're saying it's asking the question

how could I do this a little better the

refinements yeah but flip-flopping is

interesting let's give up this Market

let's go to that market that costs a lot

of money okay I like that that's a

really good point

there was a rumor that at one point uh

when it came to real estate here you

were asked by Donald Trump to put

together a report that you potentially

disagreed with some valuations on on

this building actually

tell us about it yeah that was

interesting he asked me to every

developer in town wanted this building

to retrofit make it a beautiful

condominium every developer from Larry

Silverstein to the mack Lowe's to Donald

Trump who was the lessest the least

developer in the space and he was smart

enough to come to me and say I want you

to pitch General Electric with me and

get me this building I want you to

appraise what I'm going to get for it

considering my trump Factor now I knew

the Trump Factor was his old ego factor

and it wouldn't have an effect on

anything but I did I did a careful

assessment used my best agents and I

came up with the price of 568 a square

foot I remember it because when it was

finally sold it came in I'm not making

this up at 568 a foot all the units sold

and now of course I think it's probably

trading I haven't kept up with three

thousand a foot but not day that was

incredible and what was fabulous about

him as a Salesman I watched the other

developers pitch and they pitch their

resumes their successes what he pitch

was he pitched the Trump Factor

like the Trump Factor whatever those

guys say I'll give you that plus what

would you say if I were 30 more enough I

say no maybe ten he goes okay 10 maybe

20. but they they fell for it I watched

these grown men analytical Financial

types fall for it and I learned a very

important sales lesson which was uh

flies wow it's much more

important than fact and boy can he sell

because he's not afraid to make stuff up

so how do you feel then

DeSantis versus Trump versus Biden

well I think bike needs a little I don't

know some vitamins whatever maybe maybe

a new lease on life I mean when he makes

his fist on era I'm like please just

make it harder please make it harder

he's like I tell you oh no I tell you no

um but the Santos is like another

younger version of trump I think you

know yeah that's my own impression I'm

not very politically weird and Donald

Trump has the power to sell and so I

take him more seriously than anybody out

there who's a contender we're down to

just the last four minutes here the

um I I really want to Circle back to

Children uh this idea of uh entitlement

how would you handle raising children in

the situation that that I've presented

to you my my world my life how do you

let them fail and how do you make sure

that they don't grow up as entitled and

spoiled children mostly because when I

started my uh when I started hiring for

my media business

the

somebody betrayed me who ended up being

um the biggest motivating force to for

me to to create what I've created now

which was so wonderful thank you note I

do I owe them but thank you generally

I've always found that every time I feel

slighted I feel like I should send them

a thank you like a Mrs Fields cookie

card well only if you succeed if it puts

you under you don't want to send them

well I suppose that's true

um but I I don't want to my children to

be like

them that person that like you don't

have to fear that I worry about that no

you don't have to fear them being a

creep because you aren't and I'm sure

your wife isn't either children in the

end become what they see but they see

two different groups of people they see

their family and that's going to have a

great influence on them but what

influences a child most I think is a

peer group they can't care more once

they hit the young teenage years about

what their peers think they want to wear

the same clothes they want to spend the

same money on their loafers they want to

go to the same cool places they see

their fancy houses so the peers

influence children most so you have a

limited window to influence your kids to

cause them pain or to allow them to feel

pain so

um for example when my kids want a fancy

clothes I said no now would it seemed

mean maybe but I could have certainly

brought in the same fancy labels that

everybody else had but I said no maybe

on your birthday when they wanted a

phone maybe when you hit double digits I

always made them wait wait so they

created desire

and I think that helps because you're

not matching the Joneses you don't mean

to but in the end you wind up doing it

if you live in an athlone area

everybody's got nice stuff and you you

give nice stuff to your kids you know so

that's a good thing but more importantly

than any of that is look for where they

struggle no kids are perfect they always

have a struggle with bullying they have

a struggle with acne they have a

struggle with whatever let them struggle

it doesn't mean that you don't jump in

and say them in the end but give them a

little line to struggle and see what

they do with it kids surprise you can

could surprise you what they are able to

be resilient about if you give them the

space to be resilient but wealthier

parents you know catch kids all the time

right away oh but I could do this oh but

I could do that why don't I do this hey

how about if Uncle Harry does and you

you do it out of love so it comes from

such an intuitive spot where you want to

help them but I think just hold it back

and what are they going to die in six

months if you don't jump in no they're

going to be alive you know I think just

give them a little leeway to see what

they can discover in themselves yeah

Barbara this has been wonderful is there

anything that you'd like to add or shout

out or pitch where can people follow you

what what do you what I would say is

make sure you have a post it up with

your wife I think you're going to get

very wealthy one day you want to make

sure in case anything goes wrong with

the marriage that you have a post up and

that's what I have to say now if you

want to find me I'm an old social media

platforms it's very easy why are you so

jaded I'm jaded yeah no I've been

married twice I'm older than you by my

age 90 of the people I knew who were

happily married or not

so I'm saying just make sure that part

of your life is in order financially wow

I bet you know I just work twice as hard

I don't well you should I don't have a

freedom I don't have a post nap and I

just work twice well then work twice as

hard because you might one day have to

give half of it away which leaves you

whole

okay pleasure thank you my pleasure

absolutely okay