Today, I'll share my journey from growing up next to a trailer park and facing financial struggles, to now owning over $350 million in assets. I can now provide my children with a comfortable life in our 20,000 square foot multi-million dollar home, and we enjoy vacations on our private ranch.
Many people often ask me how I achieved what I have. I'm often surprised by their keen interest, but upon further discussion, I've realized that my story is more unique than I thought. What sets it apart is the fact that I came from a modest background without any financial support from my family. Despite this, I became a multi-millionaire by age 27, and my net worth exceeded $30 million by my mid-30s. For the past couple of decades, even now in my early 40s, I've been able to sustain my lifestyle through real estate investments, which has granted me the freedom to structure my schedule.
I've found that people are drawn to my story because it's not every day they encounter someone who has transitioned from rags to riches in such a relatively short time. Many individuals discuss this topic, offering classes, seminars, and books, but few have actually achieved what I have in the realm of real estate. It's worth noting that several "gurus" who teach these concepts primarily profited by teaching, rather than through their own real estate ventures.
My journey has taken a different path. I began by actively engaging in real estate deals, which eventually led me to a position where my experiences could provide valuable insights. When people approach me and ask how they can replicate my achievements, wanting to expedite their own success, I'm thrilled by the question. Seeking a mentor is the initial step anyone should take. A mentor should possess the life results one aims for and should also be someone compatible to work with. However, aligning personalities and goals can be a challenge, as self-perception might differ from how others see us.
Finding someone who has achieved the kind of life results you desire and with whom you can enjoy spending time is a challenge. Our self-perception is often subjective, and others might not see us the same way. It's tough to find people who align with us, not only in personality but also in goals and life ambitions.
When you do find such a person, learning from their experiences can accelerate your progress significantly. Instead of reinventing the wheel, you can benefit from their wisdom. This initial step is crucial and a valuable question to ask. Over time, I've come to realize the great need for this guidance, as many people are uncertain about where to begin.
However, I must emphasize that achieving your goals won't happen overnight or through quick, easy riches. It demands extensive effort and unwavering focus. You won't be able to juggle multiple tasks. Initially, you might need a day job to cover your bills while you start your real estate side hustle. Similarly, if your aim is a technology startup or other ventures, spreading yourself thin with various part-time jobs won't lead to a successful career or wealth.
Your side hustle should become an obsession. In my case, my real estate side hustle turned into my full-time career. If that's your aspiration, challenge every belief you hold. Many beliefs are inherited rather than self-formed, often coming from parents or teachers. To truly succeed, you need to reshape these beliefs.
My side hustle evolved into my full-time job within my real estate career. If this is your goal, here's what I can tell you: the first thing you need to address is your beliefs. Many of the beliefs you hold aren't truly your own. These beliefs have often been inherited from those around you – your parents, teachers, friends, co-workers, and bosses along the way.
In my life, I came to realize that being exposed to individuals who had achieved the results I desired led me to understand that the people I had grown up with didn't necessarily share the same outcomes I was aiming for. This isn't to say they were bad people – quite the opposite. They cared about and respected me, willing to assist me in every possible way. Yet, at the end of the day, they simply hadn't achieved the results I sought.
Consequently, I needed to overhaul my belief systems. Whether the subject was money, work-life balance, career, or education, these core beliefs ingrained by our upbringing needed to be reconsidered. An author who significantly aided me in this journey was Tony Robbins. You may have heard of him – he used to market books, tapes, and CDs on late-night TV. Now, in 2023, his work is accessible through apps, making it easier to acquire valuable information. His live seminars are also impactful, often leading to transformative experiences.
I recommend his work wholeheartedly. His insights on neuro-linguistic programming and altering your mental state are incredibly potent. Personally, what resonated with me was his teaching on beliefs. He helped me comprehend that my existing beliefs were steering me towards undesired outcomes. My earlier beliefs were somewhat like this: excel in school to secure admission to the best college possible.
And so, I achieved that by obtaining a full academic scholarship to the University of Texas. From there, I diligently worked in school to position myself for the best possible job in Corporate America. The plan was to secure a role, stand out, and climb the corporate ladder for recognition, eventually leading to promotions, increased income, and building a strong retirement fund. This typically involved a 401(k) or, if changing jobs, rolling it over into an IRA to establish a solid financial foundation for the future.
However, as I embarked on this trajectory, I began to notice that the successful individuals I encountered in Corporate America lacked the life balance and wealth I aspired to achieve. Their success often came at the cost of time and personal fulfillment. The notion of spending a 40-year career to amass a few million dollars by the end of it didn't resonate with me. I desired to reach that level of wealth in my 20s and didn't want to wait four decades to make it happen.
Furthermore, the idea of having to request a limited number of vacation days from an employer didn't align with my vision. I craved the freedom to explore the world while still young enough to truly appreciate it. This isn't to say that travel loses its charm in old age, but certain physical activities and experiences are better enjoyed when youthful. For instance, my wife and I shared an unforgettable experience in Montenegro last year. Amidst a scenic climb in the black mountains, we found ourselves swimming in a pristine glacial lake at the mountain's base. The same day, we reached the mountain's summit, trekking through snow and ice. We covered almost 30 miles, an adventure I don't envision enjoying as much in my 60s or 70s due to the physical demands.
This realization prompted me to let go of certain beliefs and associations. It became evident that the results my acquaintances achieved were not what I sought. Despite the emotional weight of parting with those who had aided me in my journey, I recognized that I needed to chart a distinct course. The process can evoke a sense of disappointment, as if you're abandoning those who supported you in your upbringing or career. Yet, many self-made millionaires and billionaires have undergone similar transformations. They too had to embrace a divergent path, relinquishing relationships that no longer aligned with their goals.
In my life, I've managed to maintain many of those relationships, but initially, I needed to create some distance. This step was crucial to prevent any negativity or skepticism from holding me back. There were those who would doubt and discourage, saying things like "That won't work" or "It's too risky." When people seek advice from me, they often expect a formulaic approach – "Follow these steps, buy a property like this, flip it, and boom, you're a millionaire." The concepts of mindset and beliefs, on the other hand, tend to elicit less excitement because they don't seem like shortcuts to riches. However, the reality is that if you don't alter the foundational beliefs guiding your life, it won't matter what deals you chase or partners you seek. You'll remain restricted by the limiting beliefs you've inherited.
Now, if you were fortunate enough to be raised around exceptional entrepreneurs who achieved precisely the kind of success you aspire to, you probably aren't watching this video. You'd already have the guidance you need. In my case, that wasn't my reality. Both my parents were educated, holding accounting degrees, with my mother even having a master's degree and a CPA license. My father engaged in substantial projects for the Department of Defense, Boeing, and Rockwell, including billion-dollar proposals. Despite their intelligence and love, they didn't possess the outcomes I sought. Surrounding influences were equally unhelpful. So, I always advise Step One: critically evaluate your beliefs and the steps you think constitute a successful life, even without external guidance. Then, discard those preconceived notions and seek out individuals who've achieved precisely what you desire. In my situation, I began by acquiring books, tapes, and CDs from late-night infomercials about real estate investing. My parents were skeptical, deeming it a potential scam to drain my limited college funds.
However, these materials felt like a step in the right direction. For instance, Carlton Sheets' program caught my attention. I vividly recall ordering it while devouring a large New Yorker Pizza. Despite my parents' concerns, I was intrigued. Carlton Sheets, an older gentleman in a Hawaiian shirt sitting by a pool with mock palm trees, discussed buying property with no money down and no credit. Remarkably, six months later, I purchased my first property and received over ten thousand dollars at the closing. This initial experience was a culmination of trial and error. I made every possible mistake with that property, yet somehow, it turned out fairly well in the end.
This experience demonstrated the value of deviating from the familiar path set by those you've grown up around. To me, ten thousand dollars represented a significant sum, especially as a college student. It marked a pivotal moment when I realized that following a different direction could yield remarkable results. This was exemplified by my first rental property, which introduced me to the intricacies of pricing, property readiness, and the practical side of what I was studying in my business classes at the University of Texas.
Unlike my business school peers who only encountered theoretical learning, I was applying these concepts in real-world scenarios. This hands-on experience was empowering, and it became clear that I didn't want a corporate career. While I didn't mind being an employee, I resonated with Robert Kiyosaki's notion of working to learn, not just to earn. As a result, I pursued jobs within the real estate sector. I entered the mortgage business, hoping that understanding financing would enable me to buy properties without large sums of money. This strategy indeed proved effective.
Subsequently, I joined a real estate investment group to learn from seasoned property owners who managed rental houses and apartment complexes. I examined their strategies, whether they began with capital or not. Although these ventures weren't exceptionally lucrative in terms of income potential, they enriched my understanding invaluably. I had other lucrative opportunities, such as an offer to inherit a successful financial planning practice from a retiring practitioner. Yet, I opted for lower-paying positions, working in areas like mortgage origination and real estate investment to gain practical wisdom.
It was a significant shift from my finance degree and initial job prospects, but I valued the opportunity to learn directly from those achieving the outcomes I desired. I vividly remember a mentor professor who significantly impacted my journey. Despite being a business school accounting and real estate professor at UT, he resided in a lavish home in West Lake Hills, a luxurious Austin subdivision. His lifestyle contrasted starkly with my modest upbringing in Pasadena, Texas. Witnessing his success underscored the importance of seeking out mentors who embody the results one strives for.
I vividly recall asking him how he managed to accumulate such incredible assets. As a professor at UT, I presumed his income wouldn't suffice for his lifestyle. He directed my attention to the Frost Bank Tower, an Austin skyscraper visible from his backyard. He revealed that he, along with H. Ross Perot, a prominent Texas businessman, were investors in that building. It struck me: how could someone balance being a university professor while also investing in downtown Austin skyscrapers? His response resonated deeply. He explained that teaching was his mission, an opportunity to impact young lives positively. Real estate was where he built his wealth. He introduced me to Robert Kiyosaki's "Rich Dad Poor Dad," which reinforced the "work to learn, not to earn" principle.
For those of you still following along in this video, I'd like to emphasize that as much as you might seek a secret recipe for instant real estate success, the foundational step is acknowledging that the beliefs you've inherited, despite good intentions, might not align with success. Risk for the sake of risk is unwise, but calculated risk, undertaken with the understanding that even failure won't deter you, is essential in transitioning from limited means to abundance.
During college, despite my academic scholarship, I worked to make ends meet, juggling expenses for necessities like food and the occasional beer. From worrying about affording food, I eventually progressed to taking six-figure family vacations, owning high-end watches, and even acquiring luxury cars. Yet, this transformation wasn't solely about real estate deals or knowledge. Rather, it commenced by dismantling my inherited beliefs, redefining my peer group, and surrounding myself with those who had achieved what I aspired to.
These mentors encouraged me to undertake unconventional ventures. For instance, there was Carlton Sheets, an older man in a Hawaiian shirt from a late-night video. I distinctly remember watching his video while indulging in pizza. He assured me that one could buy a rental property with no money down. This willingness to embrace unfamiliar opportunities marked the start of my journey.
Reflecting on my past, I hold fond memories of the risks I took during my youth that eventually led me to amassing wealth in my twenties from a starting point of nothing. It's intriguing to consider what might have occurred if I'd chosen the secure route: utilizing my full academic scholarship to attend the University of Texas, eventually getting my MBA, and possibly stepping into various lucrative positions, like the job offer from the Denton-based securities firm or Wall Street firms that I contemplated.
Instead, I opted for a different path, aligning myself with entrepreneurs and investors and working alongside them even for nominal pay. This transition marked a turning point, enabling all subsequent achievements. I continue to follow this approach today, a sentiment I share with my wife. We often discuss our backgrounds and aspirations for our children. I emphasize that our primary challenge isn't teaching them real estate, which I'm there to help with, but instilling the desire for it.
Raising children in a comfortable environment, including a 20,000-square-foot house and exclusive experiences at Disney World, has its merits. Yet, it comes with its shortcomings, such as the absence of struggle. My wife and I foresee a day when our children graduate from college and face a reality check. Although we wish to provide them with quality education and an exceptional childhood, we understand that they must experience challenges to develop resilience.
Observing older friends and colleagues, I recognize the pitfalls of over-providing for children. Economic outpatient care, as discussed in "The Millionaire Next Door," can diminish ambition. We make it clear to our kids that we'll facilitate their education, but afterward, they're on their own. They should anticipate no monetary support from us in their adulthood. We prioritize charitable causes over sustaining perpetual financial reliance.
For those who share a background similar to mine, growing up without financial privilege or in challenging environments, consider this not as a disadvantage, but an advantage. It breeds hunger and determination – the essential starting point for achieving success.
I've witnessed numerous individuals who, when I urge them to shed limiting beliefs and embrace new actions, willingly accept meager earnings and adopt frugal lifestyles. They do this to direct all their energy towards learning from those who can educate them about the strategies I've employed to build wealth in business and real estate. What I've noticed is that those accustomed to comfortable, cushioned lives are often either unable or unwilling to make such changes. The prospect of living on a tight budget or focusing intently on learning seems incomprehensible to them.
I once worked with a person who was just starting out. While reviewing his budget, I pointed out that he couldn't even afford a Netflix subscription at the moment. His reaction was one of resistance, stating that he had limits and boundaries. He questioned why he should go without Netflix. I was taken aback. The reality is, if you're fixated on watching others' successes, living vicariously through Instagram or exaggerated portrayals on TV, you're forfeiting your potential for success. If you choose to remain poor while fixating on others, it's your own fault stemming from your laziness and entitlement.
For those of you who come from a background similar to mine, one without financial privilege or marked by challenges, consider this not as a disadvantage, but as an advantage. Your hunger and drive set you apart. To those claiming that money doesn't buy happiness, it's worth noting that although money can't buy happiness, it can certainly provide a sense of security and facilitate opportunities that lead to contentment. Having experienced both poverty and relative affluence, I can vouch for the fact that money significantly enhances life.
The transformation begins with reshaping your beliefs. Books like "Rich Dad Poor Dad" by Robert Kiyosaki, "The Millionaire Next Door," and "Think and Grow Rich" by Napoleon Hill offer profound insights. Read, absorb, and let them reshape your mindset. To aid in changing your beliefs and amplifying your determination, "Unlimited Power" by Tony Robbins is a powerful resource.
Believe me, the more you delve into this material, the more mentors and like-minded individuals you'll start noticing around you. Just like when you purchase a new car and suddenly spot it everywhere, your focus dictates your perception. Seek mentors, business owners, and real estate investors. Attend workshops, join online groups, and network to find those who've achieved what you aspire to achieve.
Remember, changing your beliefs is just the beginning. Stay tuned for upcoming episodes where we delve into specific techniques, including how to purchase your first rental property or apartment complex, assembling your team, and finding mentors. The path may be less traveled, but it's the path that leads to realizing your financial dreams.