Investing Questions PT1

Count money, man, money, that riches.

I'm trying to told, trying to told them I'm a beast, bud.

What's up gang?

Welcome to the broadcast.

Stop an area here.

Get ready to do the new day.

What's up gang?

Welcome to another episode of The Grindcast.

Get ready.

It's a new day.

You know what that means in the background, we got perm back in the house in the studio.

Been a while, but I'm back.

Looking like run DMC's at the smaller version now, you know.

Yeah.

Looking like you can break dance.

So I think we're going to pop up a couple interviews here today.

We're going to do some interviews.

A little bit about investing.

Investing.

Because there's been a lot of talk around the whole cryptocurrency and all this stuff going

all right now and Bitcoin and all that.

So investing is a big thing.

So I know you wanted to do some investing talk.

Kind of.

Yeah.

You know, a lot of people want to invest in a lot of things.

I want to know, like, what do you invest in first?

And it be, is it money or is it more time?

So I think you invest, you know, it depends on where you're at, but you invest time.

If you don't have a lot of money, you invest, you invest your time first and then the time

brings the money.

But I like the word investment around that because time is money.

Right.

And so when you're investing your time into something, you have to look at it as you're

most investing something more precious than money.

But a lot of times, you know, everybody starts usually unless you're handed down something

you're starting with no money.

So the only thing that you have is time.

And so what happens is the more money that you gain over time, if you're smart with it,

then you can buy time for yourself or you can multiply it.

So in essence, there's only so much one person can do.

Yeah, right.

We both got 24 hours today.

But if I need 48 hours, it's impossible unless I hire somebody that's can go to work with

me.

Now we got 48 hours.

Well, I buy that with my money in order to create more time.

Or if I want more time, let's say I was on the grind to get all this money and now I want

more time.

Now I can hire somebody to give me more time.

So I pay that person, frees me up to not have to work as much in the business in that sector

or whatever.

And then it creates more time.

So I would say time comes first and then depending on where you're at, and we'll get more

in tune with talking about this is, what do you do with that money if that's the route

that you go?

How do you invest that money?

Okay.

Another one to someone.

So this one is it worth to invest someone initially and they have what it takes to be successful.

So basically, if they don't have what it takes to be successful, is it worth you investing

your time in the Zoom?

If they don't have what it takes, it's probably, probably not.

There's always a rule of, you know, there's always an exception to the rule, but I look

at attitude and effort.

What is a person's attitude like and what is their effort like?

And then I look at what is their talent level like?

So if their talent level isn't great, it's average, but they have a great attitude and

great effort, then yeah, we'll roll with that person.

And the results will come over time.

If the results don't come in the first month or first couple months or whatever, that's

normal.

That's okay.

I'll stick with somebody that shows up on time, puts in the effort, got a good attitude

and all of that stuff.

For time, if they're bringing a good attitude and good effort and we're into this thing

and they're still not getting results because that means they're level of potential skill set

in that area of their life may be pointed in the wrong direction.

So for example, if I bring the right attitude and the right effort, no matter how hard

I try, I will not be the center on a basketball team for the LA Lakers.

Okay, because I'm 5'7", not 7'7", or 6'7".

You know what I mean?

So effort and attitude ain't always going to get it.

You know what I mean?

Or if I was trying to run the 100 meter dash and be in the Olympics, you know, I'm fast

locally, but I wasn't a 4'240, you know, 4'a flat type of person.

So no matter how good my attitude and effort is, I'm probably not going to reach, you know,

technical levels at that.

And so I think that if the person has attitude and effort in their solid, I would work with

that person until they get to a point where I've put in all the time and they're not getting

the results.

Then I owe it to both of us to kind of point them in a different direction.

It's not a cold, hard thing of, I don't care about you, you know, get out.

It's just, how can I help that person point that positive attitude and effort in the

right direction now if the attitude and effort is off my patience with that person,

even if they have a higher skill set is going to go down.

Now if the talent levels off the charts, it buys them more time with me to work on that

attitude and effort.

But I think what typically what most people do is they get frustrated with people too

soon.

Because that's called development.

You know, if you invest into somebody, it takes time.

You don't just flip it.

You don't just invest into you today and I get all the return back next week.

Sometimes when you're dealing with people, you invest into them today and you don't get

to return for another year.

Yeah, for sure, for sure.

Here we go.

So basically you're saying that coming back to that question, as soon as they come in,

you just make sure that you take a run with them.

And regardless of the fact that no matter you hope it and you put, you give a shot.

Okay, perfect.

Yeah, I give a shot.

Love it.

Now, but sometimes people don't look the part in they are the right.

That's what I was going to say.

Sometimes people are, they look the part in they are not the part.

Correct.

So often.

Right.

You know what I mean?

I've had them and I could give this example for everything from fighting to business.

And sometimes person look all yoked up and all jacked up and they're soft.

Or in the business, they dress sharp.

They smell good.

They talk smooth and they can't make it.

And then sometimes you got somebody that looks a little out of shape or they're skinny

or whatever and they put a weapon on to do with all the muscles or don't look that put

together, but they crushed that person in business.

So I try not to judge too much a book by its covering and let the action speak for itself.

Love it.

Love it.

No, third question.

Here we got.

Now, you got these.

Now, what's the better investment?

Would you say a car or jewelry?

I think rule, if it's just a broad thing, I say jewelry because typically jewelry, if you

buy the right jewelry, will hold its value, you know, like diamonds.

You know what I mean?

If you hold them for 10 years and they're decent diamonds, they should go up.

Right.

Never go down.

You ain't going to lose it all.

Correct.

You know, I ain't going to go way down or gold over time is going to go up.

So, but cars are going to go down unless you just don't drive them.

You know, some people buy them old school cars and they fix it and they just let them

sit there for 20 years.

Those can go up.

But I don't think we're talking about that.

So, cars are going to depreciate.

Now, a difference in this is if your business, you can attract more talent because of a

nice car.

Now the car becomes a better investment than jewelry.

So, for example, if I buy a car for $50,000 and because of that $50,000 car, I'm able

to recruit an attract talent into my business that now makes me $150,000 a year because I can

tie it to those six or seven people that like that car.

That's how that conversation got started.

Now that $50,000 investment, I flipped to $150,000 investment, even if it goes down gradually

over time, the income's going to go up over that car.

And so, and you know, I know in our business, it's unfortunate.

But people look at you from the outside in.

I mean, it's like, well, why do you have to have that?

Well, because it's going to be hard for me to explain to you the amount of success that

we're having.

If I pick you up in a 1992 Honda versus pulling up in a Bentley or a Benz or something

like that.

And so, people look at you from the outside in and that's the world that we're in.

And so, I think if you're earning money on the car, I think the car is the better one.

If it's not a business and you're on a salary and you're not going to do any better based

on that car, the jewelry is the better investment.

All right.

Let's get it to five ways that you can invest into your people.

Ooh, five ways.

Okay.

Five ways.

Yep.

Setting aside one-on-one time to teach them the business, that's a way you can invest

into your people.

Putting it to a schedule.

Putting it into your schedule.

Consistently, even if it's once a month or once a week, depending on what's going on in

your life, I think investing money into your people.

You can invest money into your people depending on what your people are.

Other people can be a lot of different things.

I remember my younger days I invested into buying a due to car because he was helping

me move things around and he didn't have a car.

So that would be investing into your people.

So I think investing into your people depends on what business that you're in, but I think

investing money in resources into those people is a way that you can invest into your people.

I think investing into yourself is a way to invest into your people is the third one

because if leadership is like being a parent.

So if you don't take care of yourself, you're going to be a bad parent for your kids.

You know what I mean?

So the best thing you can do, this is what I try to tell people, and I'm no marriage professional

or counselor, but I think if you want the best thing you could do for your kids, sometimes

people get married and they give all the time to their kids and then let the marriage

fall apart and then it affects the kids.

So one of the best things you could do for your kids is to take care of your marriage so

the kids don't have to deal with the separation.

And so I think if you invest into yourself as a leader, you become better for your people,

that is an investment for your people.

I think investing into them mentally, physically and spiritually, you know, here in this business

we hire three different pastors that mentor some of our people spiritually and counsel them

and stuff like that.

Forever, I had to work out for the staff, you know, stuff like that.

So I think investing into your people mentally, physically and spiritually, guiding them

in that direction is a huge investment.

I think into your people.

And then the last one I would say, because these are off the cuff, we didn't plan on

this.

You know, I didn't look at saying, oh, here's going to be my answer.

So I think introducing them at the right time to the right people.

So for example, you know, mentor, mine told me before, you could leverage two things in

life.

You could leverage money and you could leverage people.

So for example, you know, I was getting, I was leaving today with with Tress and he's

on the phone with this big CEO of a hospital and they just so happen to be local to this

area.

And like, oh, oh, before you leave, I want you to talk to this person and he connects

us over the phone.

And now we're going to meet up in person.

Well, that's, that's an investment into me from Tress of saying, all right, let me link

these two people up together.

And so what I get to do is leverage my relationship with him to make another connection that maybe

we end up helping a bunch of other people together.

And so if, if I have a relationship or a connection to somebody like when some of our top

dogs were just getting started, I remember exposing them, grabbing them and taking them

to, to Saray Smith, taking them to Marcus's house, introducing them to some of my mentors,

letting them see the vision.

Here's a swimming pool in a man's house.

Here's a basketball court in a man's house.

Here's a workout facility in a man's house.

And oh, by the way, you're going to be in the same business and this is my dog.

You don't have to wait.

I had to wait years to talk to, you don't even, you don't even, you don't even write

a piece of business yet.

I'm going to introduce you to this person.

That's an investment of my relationship.

My credibility of giving that person that leverage.

So those would be the five things.

Let's go.

I think there was like, I think about that big part.

I like it.

What investments do you make at home?

What type of investments do you make at your guys' house?

Time.

I invest time into my family, into my wife tonight is date night.

So that's an investment at home.

We're going on a date tonight.

For us, an investment for the kids, scheduling time, planning out the time, you know, to get

at home.

And then I invest humbling myself and my ego because I pretty much let that, my wife

make most of the calls at home because I used to, we did good this way because I used

to hate a lot of times when she would try to tell me what to do with the business.

Yeah.

Oh, yeah.

You know what I mean?

You ain't seeing, you ain't dealing with the people I got to deal with.

And you know, but she still gives me good advice sometimes in that area.

And I'm just keeping it real.

She don't even listen to these things that much.

So it's not like I'm going to get getting any points from this.

I'm just keeping it real.

So she don't really cross over into my world.

She's like, just do your job.

You know what I mean?

And she supports me.

She don't nag.

She don't complain.

Let's me grind.

Let's me work.

I appreciate because a lot of women don't do that stuff, but they want the perks of the

job.

So I try not to do that in the home because she's the one managing the home.

She manages, I don't pay a bill.

I don't call a person to fix a tree.

You know, I'm not handy, you know what I mean?

So she's handling the home like it's the business managing the kids.

So I kind of, you know, get home and let her kind of run the show.

And I've invested into myself to humble myself to sometimes just get to a place where

I can not sweat the small stuff.

And I think that's an investment into our family, into the house, into the relationship

where, you know, I used to want a beef over every little thing.

You know what I mean?

Anything that wasn't perfect my way.

You know, I'm competitive.

So I wanna go 10 and 0.

Right.

You know what I mean?

And everything I do, I wanna win.

And so I've had to learn the investment

into the home and to the relationship is like, man look,

you gotta go, you gotta understand,

this is a team a little bit.

Now I ain't going two and eight.

You know what I mean?

I ain't gonna lose all the time.

Of course we can't, but sometimes you got it.

But I'm cool with going 500 or you know,

I'm gonna understand and words like let some stuff slide.

This ain't, we ain't gotta fight over something small.

And I think that's an investment

that I've been able to make at home.

That's a great answer brother.

Let's see.

Thanks, Jose.

I love it buddy.

Since he gave everybody my nickname.

Since we are speaking about investing,

do you invest into the stock market,

I'm sorry, the stock market.

And if you do, I'm sorry, and they still, what on?

So you crack me up.

Let me tell you why you crack me up.

You crack me up.

Because I called you by your first name,

and he says that's his nickname.

Yeah, because here's the funny thing.

We're supposed to keep it on.

You know, let's get off the cup.

Let's get off the beaten path a little bit.

We're supposed to be on a hot set.

And everybody's supposed to almost guess my name.

So what's funny is people will be around us for years

and not know your real name.

Absolutely.

And what's great is when we go to professional settings.

Yeah, okay.

Like in the streets, this is normal shit going on.

But professional settings.

Yeah.

When we all introduce ourselves.

Hey, how you doing, man?

What's your name, Simon here?

What's your name, Tammy?

What's your name, Natalie?

How you doing?

What's your name, Perm?

Hey, Perm.

And they always end up saying, what?

They always end up saying, excuse me.

And the funniest shit to me is when he comes back

and says it again, he comes back with the Perm.

Perm.

Yeah, there wasn't a mistake, which you heard.

Perm.

They're like, all right, yeah, Perm.

You say, yeah, it's been a Perm.

Doesn't give the first name, doesn't attempt to explain it,

just perm like you should have knew.

So when I said the real first name,

you said I gave your nickname.

That's hilarious, because that's more like your nickname.

Because your real name is, your real name is Perm.

So I do invest into the market.

I'm sorry, go ahead.

I do.

I do.

I've taken the approach of not taking a shit ton of risk

in the stock market.

And I've learned these things from multi-millionaires

and billionaires.

So they say, man, if you want to be a millionaire,

get around some other millionaires.

Well, I've been a millionaire for a while.

So if you want to be a billionaire,

you better listen to some billionaires.

You better listen to somebody who works a couple hundred million.

I ain't got a couple hundred million, not yet.

But I know a bunch of people that got it,

and they're good people when I pick their brain.

What I've learned from a lot of these people,

if you own a business, you're already taking a risk.

That is your risk.

And so I've learned to make my business my Wall Street.

So I'd rather take the risk in this business

where I'm the controller of Wall Street.

Correct.

You have how I'm gonna get that return?

Versus throwing it to somebody else.

I don't know what they're doing in their personal life.

And Ron can happen.

Stock market crash can happen.

I hear, bro.

I don't need to take a bunch of crazy risk in the market.

I want to get returned so my money,

because if your money's sitting there doing nothing,

it's better than losing it.

But after you don't lose it,

it's actually losing you money because inflation's happened.

Every year, the cost of living's going up.

And so I like to make money that beats inflation,

but doesn't give me an extreme amount of risk.

Because the risk we're taking is in the business

and I can control it.

So that's my stock market.

Now I do invest into the market.

I did a podcast with my dude,

shout out Jason Staley, Schneider Downs,

up dog, my former roommate,

and I have over a lot of money with them still in there.

And I do that because I trust him.

And I don't know how many people would do that for me,

but I really a lot of it, I just do it because I love him.

I just like, man, I just want you to have this

because I love you.

And but he don't lose.

We don't make 100% returns because I'm not gambling the house.

But that's where I put some money.

But it's probably not even 20%.

It's not even close to, I don't think, 20%

of my overall investment portfolio is in the market personally.

That's me personally.

And so when I do, I let it go with him.

But if I had to do it myself,

I've learned to just bet on the smartest people in America.

So who's the smartest cats in America?

Who is controlling America

and who are the smartest people?

So for example, back in the day,

you would look at like, all right, Google or Amazon or Tesla

or like all these people that are just crushing it,

Bezos and it's like, man, look,

let me bet on these four cats that are super smart.

And I bet you over time those things pop,

would be my thing.

And I have dabble, I'd be fibbing if I told you otherwise,

but not a lot.

I mean, dabble, small.

Into the new, into the new crypto deal.

Dabble.

When I say dabble, not a ton, a couple of geez,

I mean, nothing major.

And they're just to see what's cracking.

But I don't hate on people when they do that

because some people may need to take that type of risk.

I don't need to take that type of risk.

And the risk, like, oh, well, mine,

I made 100% returns.

I made 100% returns too last month

because I put a contest up and the money came back double.

And I control it.

I ain't got a trip over nothing.

I don't even got to look at it.

You know what I mean?

So that's my investing strategy.

Here's another one about it.

But I go into real estate.

I know you are.

That's my outside of the business.

So that's what I didn't want to talk about.

And you're around me a lot.

You know more of my business than anybody.

I should have you sign something.

For sure.

If we wasn't so tight and so close,

you know what I mean?

It's like, I trust you with my life.

But real estate is you know where I put the majority

of my stuff.

So if I said 20% is invested over here,

probably 60, 70% everything is invested into the real estate.

More controllable over time.

It's brick and mortar.

Like I can see it.

I can touch it.

Some of this stuff I can't touch.

It's just like, what if the government just said,

I just want to go on.

But can't just pick up my house.

You know what I'm saying?

People are always going to need a place to live.

And regardless of what's going on real estate,

you should be able over time to win because if the banks

aren't loaning, then you have more renters.

So people want to rent.

So if you own real estate, they're renting from you.

Now, if banks are loaning and the interest rates are low,

you can buy real estate.

And it's really not costing you as much money

because it's so low to buy the real estate

for what they'll loan it to you for.

It's another good play.

And then when people are paying the rent,

they're actually paying the mortgage down for you

and it don't cost you a dollar.

So whatever the worth is of that thing over time,

it's going to be paid down.

You just got to be patient.

And over time, people here real estate,

well, what I've learned is it takes a lot of money

to make a lot of money in real estate.

You can't get into real estate and bring 20 grand

and think you're going to start making a shit ton of money.

In my experience, okay, and what I've learned.

So I'm sure maybe there's somebody out there

in the middle of nowhere that's figured out a way to do it.

But for me, if you usually, you know,

a good number is like, man, if you could get 10%,

that is that point of, because when you get over that,

you start taking an extreme amount of risk.

I remember one of my billionaire friends,

I brought my returns one year of what I got in the market

and you know who this person is.

And that year, I remember I got like 15% on my money

and he was like, that's too much.

I thought he was going to be proud of me.

You know what I mean?

He was like smart, bro.

He was like, he was like, that's too much, Simon.

Because if you're taking that much, 15,

you could go down 50 because the risk is too high.

And that was his philosophy, okay?

And so I've coupled that philosophy

with other philosophies.

I'm not married to that philosophy,

but I think in a cash basis, cash basis,

not principal paydown because people are paying a rent,

not the cost of the housing market going up over time.

So that's going to increase your value,

not all the tax deductions and all of that stuff.

I'm talking about cash money.

Cash money, the salt and base.

If you throw up, if you want to buy,

I'm building for a million dollars,

you typically need 20% down.

So now you need 200 grand, okay?

To get a million dollar building,

then you finance the other 800,000, okay?

That 200 grand, if you get 10% on that money,

that's 20,000 a year.

That ain't that much,

but you had to come up with a couple hundred grand

to get that popping and have the credit

to get a million dollar building.

And so over time, that will accrue more wealth

because the paydown will go down

and the cost of the building or whatever can go up

and all that stuff.

And so over time, you could generate wealth that way.

But if I wanted to make a bunch of money in it,

even if I'm flipping homes,

you need chunks of freaking money a lot of times

to do that stuff.

And so, but if that's not your business,

like you're not a builder,

you're not a like Buffett is a real estate investor.

That's where he should take his risk,

because that's his damn business.

That's what he eats, sleeps and shits.

You know what I mean?

So yeah, he should be mixing up stocks and all this stuff.

Cause from the time he wakes up to the time he goes to bed

in the last 50 years,

that's what he's been working on.

That's his business.

He should be all up in the market.

That ain't my business.

This is my business.

This is where I'm all up in the market.

So unless that's your business,

it's gonna be tough to really make a bunch of bank doing it.

People say, oh, you know, I'm gonna do real estate.

Okay, well, where's the money at?

That you're gonna do the real estate

because you need a bunch of money to make a bunch of money.

In real estate, typically,

unless you start them, you know,

unless you're talking flipping homes

and you still need chunks of money in order to do that stuff.

And then don't forget, once in a while,

you mess up or take a loss

or somebody does something wrong.

Now you need extra money to fix something

or you need attorneys, you know, and stuff like that.

So long-winded answer,

but I'm passionate about that subject.

Count money, man.

Money, man.

That grits us.

I'm trying to talk, I'm trying to talk to my beast,

but what's up, gang?

Welcome to the grind cast.

Simon Areas here.

Get ready as a new day.