BTM128: International Airline Pilot Builds Property Management Empire with Steve Rozenberg

Automatic TRANSCRIPT

This is derived aaliyah and you're listening to the before the millions podcast episode one twenty eight room. Are you ready to be the master Mr Architect of your life. Are you ready to design your business and invest in needs that create the lifestyle you've always dreamt up to are you ready to learn from entrepreneurs and Dan millionare's who have achieved a certain level of success. Hey this is Derek Location Independent entrepreneur and you're listening to the before the millions podcasts. I am Gina Lofton. I am an investor investor and you're listening to the before the millions podcast hey there my name is heather haven would marketing coach and global entrepreneur and you are listening onto the before the podcast hey this is mark with the host of the seven minute mentor podcast global entrepreneurs and all around Geek and you listen into the podcast I am MC lobster the cash low Ninja and you're listening to before the millions baht cost you're listening to the before the millions podcast asked whether you're looking to invest cash flow or built an online business that allows you to be location independent you come to the right place. Mr Hollywood would himself presents the before the millions podcast now your host to ray what is going on. BTM tribe welcome to another installment another week in this beautiful year of two thousand nine hundred nine super excited for us to get to the meat and potatoes news of today's show. I've been planning for q four and I hope you're planning for you for hope that you're you have the mindset that Q. Four is going to be your best quarter yet. I know that a lot of people of Uku for as a as a break as time to where they can kind of ease up on the pedal but what's funny is while everybody body else's doing that we could be killing our business so use Q. Four and maybe your most profitable quarter yet so actually this morning for the podcast I created rated tire content calendar and I have already installed the episodes for the rest of the year so I know every single subject matter in every single episode and every single guess guess that will be featured for the rest of the year while I was doing that and I was getting ready to prep this episode. I was listening to this episode. which is something I often do before before I record court the actual intro but I was listening to this episode and I probably record that this episode back in April? Maybe even in March as I was listening to this episode men. The sounds really really really familiar like like just had this conversation like this is crazy and what it ended up being was that one of my mastermind members sent me an interview of our guest today Mr Steve Rosenberg. He sent me an interview of him on the bigger packets podcasts that eared maybe about a week or two ago and that interview unreal was based a little bit more on checklists and using systems things that you guys on a big Fan of but this interview this interview just so happens to be more about Steve Story Story and how from being airline pilot which is a whole entire story in itself and Steve Is GonNa get to that but how he went from being an airline pilot to owning about thirty thirty five units so get this Steve Thirty five units and these units are doing terrible. He believed that he was getting into some some great investments just because they were low income high cash flow properties and he started to realize a lot of problems that he did not account for so naturally Steve did not want to manage fantasies properties. He didn't want to deal with this headache him his business partner. We're like we're done with this. We need to find a property management company to take over the stuff for us well. His business partner went off off and actually tries to find a property management company to manage their thirty five or so units turns out. Nobody wanted to manage them. So imagine terrible tenants worst neighborhoods with zero structure. Things are just going crazy and at this point it looks like Steve and his business are are done right like there's going to need to be a reset it for one reason or another. Stephen is business partner decide that they're going to buckle down that they're going to actually forget this out if nobody wants to manage their property property for them they're going to figure it out so they started figuring out the process they started figuring out how to put systems in place how to put a structure in place how to have checklists right. They started having having people in the right positions to help when they need it right and essence they turn these terrible properties that were literally draining them like at one point Steve's wife told him but he needed to go ahead and quit. This wasn't working out. He's not he's not a good real estate investor and they turn these properties that were literally draining them to break even properties so again the ultimate success in that they started turning these properties. It's a cashpoint properties or profitable properties but break even but here's where the story gets interesting had had many friends in the industry and the friends that they had believed that their business was going under that they were tanking but they would still see Stephen his business partner around and wondered hey like we've got you guys who were going down. What's going on what Steve Tote them was that there were certain things that they started implementing to help their business to sustain their business that all the problems that they used used to have they didn't they didn't have them as much anymore but the funny thing about Steve's friends were that they started having those same problems that Steve used to have and they asked these straight up like hey can you can you can show me how to do this? Can you manage this for me and initially Steve was reluctant to that idea right. He wasn't a property manager. He didn't want to be in the we heal trying to find a property management company for his own property but after a while he came around to the idea and once he came around to the idea once he decided that it was something that he wanted to do he went to go find a mentor. He asked that mentor canvas be a business cannot. Can I grow this. Is this possible like let me show you what I've done. Let me show you the structure I bill. Do you think that it's possible that I can build a business from this and the mentor look bit his business model and he said Okay it's scalable. It's marketable and there's an opportunity in the space so yes you can build a business from this and he hired that mentor and he's been able to build a multi-million dollar property management business from that day forward. That's the story that we're GONNA talk about here on today's episode then in the strategy portion of today's episode. We're actually going to talk about exactly where Steve is finding business so you wanna stick around for that because it's mind blowing how we use the Internet today to get new business speaking of if you haven't already connect with me on instagram that is my social media platform of choice also if you haven't already join us on facebook join us in our facebook group and the link to both of those will be in the show notes if you're wondering where some of the bonus episodes are going and have been going it's in our facebook group so that's not not to say we still have one this episode on the packers every once in a while but if you want some extra content join us on facebook. Let's get to the tip of the week and then we'll get straight into the show the tip of the week so I am my third time through this book called Super Coach and I just want to kind of give you guys is one of the lessons in this book and this is actually less than one in this book there ten lessons in this book and this book is not for coaches by the way it's called super culture because it kind of shows you you how you need to start a coaching yourself and what I often see in many of us and I coach a many students and a lot of us have the same mccranie issues and it's it's often that are thinking is what gets the best of US so in this book they talk about living life in two different dimensions right so we have the horizontal dimension which which is you know from the time you were born to the time that you die and then there's the vertical dimension which is everything between that right. What's your relationship with that actual journey so the author of the book he tells a story and the story is of his daughter's friend and how she comes to him for advice because she's a dancer and and she's looking to advance in her career? She's looking to advance at at the dance company that she's at so I believe that she's trying out in front of a panel panel. Ultimately he's GonNa make the decision on whether or not she's able to advance well. According to her things don't go the way that she expected them to go and it wasn't like things got really bad but she just didn't get the center onto the vibe that she was actually going to get in or she was going to show is gonNA look so she approaches the author and she's scared and she's furious and she's like man like I need to figure got a plan because I don't think I'm GonNa get in like. I don't think this is happening for me so well. She tells the author is is hey. This is what I'm thinking. I want to take a crash course with you and I want to. I want to figure out how to negotiate. I want to figure out persuasion. I want to figure out how to influence like maybe I can change their minds. Maybe I can undo what's already been done right so that was that was her her her first option. That's kind of what she presented to. The author and the second option was like in this is more like a backup option. She was like maybe I should run a smear campaign right saying like these people aren't good at what they do. They don't know how to judge so on so forth and and kind of get them get them removed from their positions so maybe new panelists can come in and they can actually bring her aboard that was that was option number two and that's a little bit outlandish but again these are options an option number three is like maybe it's a sign. Maybe this is not for me. Maybe I shouldn't be a dancer. I maybe I should find a different career options and maybe I should start looking at some of these other options so again she goes drew her thoughts and these are her three options in her mind and many of many of us would have created a similar set of options. Maybe finding that way to take that extra step to get in or actually looking for run alternative methods like we would we would create some sort of options depending on what the outcome was so. She's living her life thinking about these options because again on the Horizontal Dimension Listen We believe that we can improve our expensive life by changing our circumstance. That's when things will be better right but on the vertical dimension. It's all about changing our relationship with these circumstance because for the next two weeks while she's waiting to hear back. She's living her life torment. She's living her life planning the these options option. He's living her life making decisions simply based on her thoughts without any evidence yet without any confirmation. She's making actual decisions. She setting things in motion. How many of us can relate and these decisions? They're not minor decisions. They're the type that are ultimately changing the trajectory of our life. I mean just imagine like a smear campaign. If you went through with that like what what are the repercussions what happens imagine changing your whole life trajectory because a few people told you that you're not qualified for this like she's planning these things over the next two weeks rather than living in the living with the circumstance that she's currently in and and changing her outlook on the circumstance and this story goes to show that we think that we're experiencing reality but in reality were actually experiencing our thinking thinking and what made it even worse is that night one of her friends with the inside Scoop Texter and told her that hey you didn't get in and he was joking. Of course he was actually saying ended in a way to make sure that she was super surprised the next week when she found out that she actually made it. Luckily the author of this book he had been a coach for a while and he told her that it's not best to make rash decisions while you're in this kind of state like while you're drowning in the negative. It's like your worst time to make any type of decision like your decisions everything that you do around that negative state is going to be terrible. Do Not Trust your thinking in that state because imagine she would have went through with any of because imagine if she would've went through some of those options the head of the company ended up loving her and she ended up loving the head of the company the same person she was going to smear if she would have spent those two weeks enjoying her life living in that vertical dimension changing her relationship with the circumstance knowing that no matter what happens she's exactly where she needs to the B. She's who she needs to be to get to where she wants to go. Because in this instance she went back to the author and she was like you know what I don't. I don't think it would have been a great use of my time learning the art persuasion and learning how to do a similar campaign learning all these things that she was literally changing course like she was literally about countless hours days weeks doing a ton the things that didn't really have anything to do with the things that truly wanted to do all because of her vertical thinking now. I'm not saying that we don't have real problems. We're not facing real problems everyday but nine nine times out of ten. It's circumstantial nine times out of ten. We think that we have a reality problem but in reality we have a thinking problem again. This book is called Super Coach. If you decide to pick it up I would love to hear from you and your thoughts on the book. Let's get to the show and now your feature presentation Steve. How's it going today? It's good how you doing man. Thanks for having me on your show. I appreciate it yeah. I'm doing well no problem at all. I'm excited to kind of get into your story. The let's give some context talk about your your younger your formative years. Maybe you were up to win. Tickets back beer sure yeah it's it's definitely an interesting story oriented and I would venture to say it's probably not the average or the normal so born raised in Los Angeles grew up there played sports did pretty well as an athlete in football and other stuff Mike my passion was always wanting to learn to fly airplanes as a little kit you know you look up in the sky and you see these planes up in the air and you're like how do they do that and that was Kinda my question and from playing sports and playing football and doing bodybuilding and stuff like that over the years I I've learned to be very very disciplined and work as hard as I could see it accomplishing whatever I needed anti and so I took that same attitude towards flying and I was very persistent in in my career of learning airline pilot and I took it to where the average age to get hired as an airline pilot is normally about thirty five years old. I got hired at twenty five I I will say it's not because I'm the smartest person in the room is definitely not I think because I didn't know that I couldn't do it because nobody said I could not do it because I didn't anyone in the industry so I just did what I thought I should do which was attack everything connects and just go at it and because of that it by the time I became became an airline pilot. That's when I had people ask me. How did you get tired so soon like nobody gets to the thirty five and I was like I don't know I just did it? I I'm not sure so. Oh my my point is that I was buried very diligent in this career and unfortunately as many people remember a day happened in history that affected my life forever and it's nothing that I did but I was I was a direct derivative of it that that was nine eleven so the day nine eleven hits changed my life in my my my trajectory forever and the reason it changed my life is when you're an airline pilot on September tenth. I had the best job in the world. I was flying airplanes. I was traveling around the world I was. I don't know maybe twenty nine thirty years old. I was top of the World September thirteenth got served notice saying that basically by job that was GONNA be furloughed. I was going to be out of work and on the street with two hundred thousand other airline pilots by the way everything that you just did for the rest of your for the first part of your wife studying focusing and being so focused really has no value to us and you probably won't ever get a job what you just did because we don't even know if the airline industry levert persists so if anyone that's ever transitioned Kinda got hit in the face and and you know not knowing it this this was a huge hit because is like I tell people when you're when you're in an industry that changes any balls for example the stock market or the DOT com or oil industry so you can kind of see the trend happening you know layoffs are coming in the oil industry because the price of oil and their derivatives of that well with nine eleven hit there was there was there's no indication basically when September tenth best job in the World September thirteenth thanks for playing you may not have another job or career and the hundreds of thousands of dollars you you have in loans and savings are gone so it was it was a very interesting time and it's it's a very humbling time will tell you to have that ripped away from you and you think I didn't even do anything wrong. I had no no control. I didn't do anything but yet I'm a victim of this. Which is Inter? I don't know if you've ever had that or your listeners out but it's very interesting yeah it is and I think about your story Stephen. When you knew P- almost essentially grown your whole life to become what it is that you always want it to be first and foremost most people don't do that? Most people have a dream of being something or starting something or doing something and that never actually comes into fruition right but they had this dream of of being a pilot and you achieve that dream usually dream is such a young age. You know it's one of those things that you know. It's funny as a kid. We're told we can be whatever we want to be right. Yeah child and you say you can be president. You can be an astronaut. You can do whatever you WanNa do but at some one point when we go from child to teenager to adult you if you're an adult and you said for example like you did. Hey I'm going to quit my job and I'm I'm going to be an investor. Everybody would say you're stupid. You'll never work. You'll fail so it's interesting because what happens when you're you're told you can do whatever you WanNa do but as you become an adult now you're told you can't do it and it's because all the negative pressure that it basically what quote Unquote Society tells you you shouldn't shouldn't do now you go we have maybe I should but obviously you broke through broke the mold I broke the mold not because I really wanted to I tell people I I never wanted to own real estate. I never wanted to own a company never wanted to speak around the US or internationally that was not in my plan. My plan was to be an airline pilot but circumstances happened and I think because because of my personality in the fact that I I I'm not wanting to get pushed around or told what to do in in dictated my life. I thought okay I've gotTa Take Control and I've you gotta do something. and I've got to make this happen on my own because it's obviously not going to happen for me. 'cause the safe secure job that I thought I had was actually the most unsafe unsecure unsecure job anybody could ever have as funny. I want to touch on that because well first and foremost you know often when people say that you you can't can't do that. You know there's there's you shouldn't do that that stupid. You know often projecting veer their inner is their inner thoughts during emotions. They can't do that and therefore if if you were to try something that they couldn't do first off. It's going to give them a feeling of shame or a feeling of resentment or so when often to my son you can't do that. They can't do that and in fact you should probably try and go see if you can do that because that's when that's when things opened up especially when it comes to entrepreneurship now when you talk about you having your dream job at the eight of twenty five and it's almost like you're getting a call on September thirteenth and your whole road ends and people often talk about the fact that you know people paint paint this picture like all like you know you become like a airline pilot and if you do that while you're not going to have transferred skill and that that's always like the random pie-in-the-sky China sky like job like if you do you're not going to have a transfer school well. That's not random pilot sky job for you. See that's really what you do when it comes to having transferable skills when it comes to the very next steps for you. I mean thirteenth your whole life change. What was what was your life like in the next few weeks it was it it was very surreal and people that remember nine eleven you know kind of remember that check it is to tell me what it's almost like? The Sun is the moon in the mood is the son and it was you know being in the industry of being an airline pilot when that happened all eyes were on us all focus on us and and people that remember next thing you know we had the SARS epidemic we had the the foot and mouth disease. I mean it was like the locust we're GONNA come next. I mean there's anything you can imagine that was going to put airlines. Out of business was on his way airlines. Were going out of business over the next couple of weeks. They were they were going into bankruptcy in abrogating their contract so that they can wipe out all the pilots pensions and and retirement so you have guys working for airlines that were already retired getting their annuity pension and basically they went into bankruptcy court they wipe those is out in these guys that were retired. Basically we're like sorry you're no longer getting your engine that you worked thirty or forty years for is now gone swipe so it was very very very surreal and I and I'll tell you one of that one of the most interesting for me. Turning points was in the end the several days after that that maybe the next week or so for people that remember nine eleven all of the planes wherever they were at that moment were told that they had circle in land over over any airport they were at or they'd be shot down. This is when nine eleven was actually happening. I'm so every plane wherever they were at the circle land right there well so all these planes are scattered all over the world right park dead basically so after that they win basically air travel started opening up again and they started allowing the planes to fly they needed pilots to be redesignated to all these different cities around the world to pick these planes up to reposition and I'll tell you what the the moment that I will never forget. Was I forget what airport I was in Denver. JFK I don't remember but I remember walking through a terminal and I will tell you if you've ever been a big airport terminal. That has nobody in it. It's this huge cavernous echoing building of silence in very very eerie ends I remember walking through this building looking out at the tarmac hundreds of planes that are hard jigsaw puzzle dead. Basically it looks like a graveyard airplanes and I remember thinking to myself at that moment. My life will never be the same again like I don't know what I'm going to do but it will never be the same but I remember also saying I will never allow myself to be put in this position again because this happened because I got lazy and I got complacent and you know I can say yeah. I had the best job in the world had a career we can say that to make ourselves feel better but the reality was is. I was not being a good steward of my life in my career for my family and in a way I thought to myself you know what this is what I get for taking my off the ball and if it if it happens once you know shame on you shame on me and I thought I would never allow this to happen again because I did this to myself so that was it again it was that I mean you know to to me. It's like come out come out swinging and even though it was just a couple of days after I already like there's no way this is going to bring it out. There's no way I'm GonNa stop and so that was that moment that I thought okay. I've got you know the one thing that you learned being a pilot. Is You have emergencies that happened right and you gotta work the Prom aw you bet assess the probably gonna work probably gotta eat. You know the things that will kill you so that part of me has been ingrained in me from all the years of flying and so I decided okay I gotTa Work Patrol. I what is the problem. How do I create the solution? In that really is is what got me out of that position. I believe I I truly believe that is awesome and so I mean walk us through that progression so the next few years like talk talk to us about these these these these businesses that you start thinking about building or some ice presenting these ideas were you getting some of these. You know the these earlier earlier notions that you wanted to do something or build something or create something that was gonna that was going to serve or help these people around the world when when the start happening you know it's a great question so what happened with me. Is You know I started looking for okay. What could I do and I remember looking in the want ads thinking I'll do whatever takes dig ditches uptick digits? I don't care I'll do whatever it takes us rob and I remember looking in the want ads and I was like I'm not even all if I drive a truck truck drivers certificate. I'm thinking I can fly Boeing seven thirty-seven but I can't even the truck is crazy and I started thinking okay. What can I do so I started looking up things that people get wealthy house wealth created? What what do you do to make money? What what is a side job? I just really started looking. I felt like I was so far behind the curve because I had wasted twenty nine years of my life doing something that may not ever exist anymore more so I kept I kept coming back towards real estate real estate popping up with people that are rich people that make money passive passive income just whatever was there was somehow tied back to real estate so I thought okay may maybe it's this real estate. Maybe this is it. I've always thought to myself you know as you know yours talk to people in a rural properties I always want to get into rental properties and I thought I would have always wanted rental properties it kind of seemed to coincide with being an airline pilot. Take time off acid income not a lot of work not necessarily a job. I say so what I did is I started reading everything I could about real estate. I started reading a book a week because I felt like I was so far behind the curve. I felt like I felt like I was in a competition and I was losing. I had to do everything I could to catch up to. Oh my peers that were doing deals so I just wanted to understand a whole dynamics of real estate and I felt like I had walked through looking glass and I was in this New Society of words and Burgers and cash on cash arline. I was just I was just soaking this up. You know the Rich Dad poor dad books all those things I was just reading consuming and so I started getting into learning about wholesale and and it wasn't wholesaling back then this is two thousand three I forget what the term was but it was just basically auctioning. Contracts is what it was and so I liked the idea because I could make money. I was a pretty good negotiator Talker in general I just need a little direction about understanding what I was negotiating and so I started doing that in as I did it again. I started taking classes. I got word. I paid paid had a couple people you know ten thousand dollars to train me how to do it and I was just I was all in three weeks. After the Guy Basically says yeah you should be fine. I get high I deal. I closed my first deal. I mean it's like twenty grand on my first deal. I don't think it meant like okay like I didn't know I knew nothing which was probably helpful because if I knew something I probably would have said this will never work you know and so I just kept moving forward like I would not. I would not stop I was I was fiercely competitive to make this work because what what was my other option I was still we're still furloughing from the bottom up and just say no. I got within thirty people of getting followed from the airline I was working at I never got furloughed furloughed but I got pushed out and had to go clan of New York for a couple of years but I never did lose my job. However when it did is it made me realize just how unsecured that was in? I needed to work faster because any other attack or terrorists something I would have been gone. I knew I was hanging on by the skin of my teeth so I I started doing real estate. I started flipping properties and I started doing pretty good. I mean I was I was doing quite a bit of these properties flipping them and making quite a bit of money. didn't really know what to do with the money but I was making the money and I wanted to own real estate. I didn't WanNa flip because flipping job or wholesaling whatever you WANNA call it. That's a job right. I have to show up. I've got to put time in. I'm going to work and I gotTA negotiate. I gotta find a buyer. That's that's basically work and even though I it was I was very highly paid. It was still it a high paying job. I already had a job. I didn't need another job. I wanted wealth so I joined a local investment group that it was tied to apartment complexes and I met met a person there and long story short. We ended up partnering on an Apartment Complex Together. we bought the apartment complex and turns out this gentlemen Pete New big. He's still my business today and we bought the complex. We ended up selling it about three years later on exit strategy we took all that cash that we made aid and he comes to me one day and I think during that time I may be bought one or two rental properties and he says hey I got this. I got this idea you know and he said we should start buying a couple of houses in partner together and see how that goes and I said okay that'll work. Okay I got this. I found these great deals. I think we should get so here. He knew that I was is pretty good at negotiating deals and all that it was kind of the grass is greener here already owned a bunch of armed conflicts. He wanted to learn what I was doing. In the wholesaling world. I wanted to learn what he was doing in the apartment so we kind of treated abilities so here. I was pretty good negotiator and he's like hey we negotiate these deals. We combine them together and let's just instead instead of giving other people well. Why don't we keep it? We make our own while my sounds good to me so he says hey I found these deals they. There's a bunch of them out there. They're easy to get there called low income. I cash flow properties on my okay. I don't know what that means but I like the high cash alward. He goes a bunch of a might well. Maybe we should just by he goes. Why don't we buy a couple? I'm like why buy a couple by many as we can find if they make sense. Let's do it on paper. Thirty forty percent cash on cash return vying for thirty forty fifty thousand rented for nine hundred a month. Might this is a no brainer like how stupid stupid or other people not buying these deals we should buy as many as we can until before other people figure this out right we think we've stumbled upon the secret that nobody knew in one year or a year and a half we by twenty properties low income houses and then these people started calling us called tenants. Let's and they wanted things like keep your rent who and they had this and they had that on my what is the deal like this Susan part of the books I read about acid income and so next thing you know we have ten. It's moving out. We have maintenance so all the money that we thought we are supposed to make were going right out the window we had we started getting an eight month. Average tendency our make ready costs for three times the amount because when when the tenants would leave they always like take parting gifts with them so they would take air conditioning your debts in wiring and plumbing and plants and you know we would walk back to the shell of a property pretty that was only rented for six months and then we'd have to put all the money that we made back into the property and it was this cycle and so we're like there's got. We've gotta got to do something better this. This isn't working so it all of our wisdom of our genius that you would think we buy another fifteen of these things thinking we're halfway through the hill we might as well just buy more and get economies of scale and this'll be much better like gasoline on fire that just exploded in our faces and it went from bad to incredibly worse. Now we had thirty five of these houses horrible tenants horrible situation could not get them rented could not keep keep tenants coming out of pocket for these properties and we were like this is that we we are in a bad way and so one point we said okay you know what in my wife. Mike actually was the one who said basically you guys suck it buying houses. You are no good at buying rental properties. You need to stop this. Well be being who I am. I'm thinking I can fix fix this. I know that I can fix this. Just need to figure it out. The android figuring out was stopped buying crappy homes so finally I'm like okay. Let's just stop this and let's look at this logically and we said okay. We have three options we can we can we can sell them. We can buy property nanager. Are we can hire a property management company or we can manage them ourselves. We didn't WanNA manage them ourselves. We couldn't sell them because it was two thousand nine nine and nobody could get alone so I thought okay. Let's get a management company so my business partner says hey I will contact management company and I let me do some interviews is an all vote will hire one will be done with this. I'm like perfect so he calls me up like a week later. He's like man. I got some bad news. I'm thinking did we buy. Did we buy another one and didn't know our what did we do. He says nobody wants them. I'm like what do you mean. Nobody wants he goes. Nobody wants the properties. They said they'll never make money and they're always going to be this hard work and for these seven eight nine hundred dollar rentals is not worth their time and I'm like but you you told me these were great deals like I bought these because you told me that and he's like yeah I miss I messed up so I'm like okay Our only option now is back to the first option we didn't want to do which is we have to figure this out and self Banja though he and I sit down for about six months in and we plum accompany creating infrastructure and policies and procedures the way he and I as investors would want our properties run and so what we ended up doing what is this week started creating these policies procedures structure to make it run like profitable business really for self-preservation. This was never to create a company. This was so that we didn't go bankrupt and so we ended up happening was after about another six months of property stabilized he never actually made money but we stopped losing money and and what happened was is we have other investors that we knew locally here in Huston approaches and said Hey. We thought you guys were going out of business. Wh What's going on. It looks thank you guys have turned the corner. We said well. The quick answer is is we're running like a business now and we told them we had this problem. This problem this problem this I would fix it and they were like you know what that's the same album I'm happy. Could you manage our house at first. We're like no frigging way. We just saw their own problems. We don't want your problems like I'm not doing this in. This is not a way that I want to spend my day solving your problems but then we thought you don't maybe there's a business here. Maybe there's maybe they're maybe you can turn this into a business so the first thing we did is we were taught business coach and we said look here's what we have out. This is what we did in the past. This is what we'd be bald. This is where we think and this is what we think we could do. Do we have a business and he says well you have scale ability marketability and you have opportunity so by definition initiative. You have the ability to create a business what you morons do with it. From here is anyone's guess because you do not know anything about business and you will run into the ground so at that when we hired our first business coach that day so now we have a business coach on a business that we don't even know what we're doing and that was June of two thousand twelve just to give you some reference so December one of two thousand twelve business partner we did was called. Burn our boats basically my business partner parter quit his job. We had our first full time employee at our company and we've kind of pushed chips all in so he flash forward to today today we man's about a thousand properties I've got operations in Houston Dallas and Fort Worth about a full brokerage of realtors I speak at as a speaker on the subject around the US around Australia other places on subject matter of owning property. He is property management all that kind of stuff. I've got to podcast shows. I've written seventy books about an autobiography. That's coming out and a lot of that is just I had to change my mindset in where I'm going with all this is the biggest thing I've learned is what got me to the point of being an airline pilot is not what is going to get to the point of being successful vessel in anything else and I had to change my mindset to become a different person. I had to think differently. I had to be open to ailing which has an airline ballot. You don't want to fail because you'd be on the news. I guess endearing but you know you don't you don't WanNa you know nobody ever wants to fail but in business it's okay to fail so I had to learn this new new dynamic about being a business owner business operator and that was a that was a big change for me to realize that I had to start you know I I went from pilot to failed investor to the bottom of a property of a business nothing about in created a now. I hope a lot of people at Mentor people I help offices businesses. I'm because of so much education time that I've spent in kind of all the failings ailing so I've had to be honest with you. I can totally totally resonate with Steven. You're not thinking about the fact that I think about just your outlay like your your before the million story even even even when you got where you guys have gotten to president it's been it's been simply amazing just to be able to walk through that progression in seeing how a lot of your trials and tribulations I I mean you would think that those things end you. Those are the things that you'll often see that would allow entrepreneurs were exacting. That's bothering us that exact thing that you're having having trouble with. Its that exact problem that you're facing that you normally use a solution not only for yourself but for others and that's what you're able to do when you got your property management company which is amazing when you think about kind acquisition as a property management company and where we are hearing twenty nineteen what what's what's the number one source for climate position question for you guys today right L. The number one source for client acquisition is I would say the Internet and one thing I'll say that I have learned the difference on. I think is very important. is even though I own a property management company. I've learned the distinction distinction that I am not a property manager. I own a business and that business is really a sales and marketing company sells and markets different gadget and you may that Exxon made that but every company is a sales and marketing. It's got it's got its fundamentals and principles of how to run a business so I tell people I'm just a business owner. I'm not a property manager. I just know the fundamentals of business you invest money in marketing. You Get a return you get conversion. You get clients you run it through operations you get and you're you know that the whole dynamics of owning a business so but going back to your question I would say right now. Internet is definitely our biggest inbound source of that and I'm glad you purpose that because you know and that's why we have the show like we're learning about these different lifestyle designed businesses and there are different business models and most of the entrepreneurs are in the real estate realm whether they're investors if turned flippers they're they're they're realtors. They run property management companies such as yourself. I think there's something him to be taken away from the shell you know learning what what runs a business what makes a good business in how we can implement different strategies that other people are we're using it may be in a completely different sector from us and going back to the fundamentals. You're going to need a marketing are when you think about the sources of traffic you guys you guys are pinpointing your efforts. UC is receding returns are these through those pay traffic campaigns like on facebook or instagram or things like that or is it more so with with the old tried and true places like email marketing things of that nature. That's a great question and let me just say I think the most important part of a company is the marketing department because if your phone's not ringing you're going out of business. You just don't realize it yet again so I it's not an or an aunt and I have learned. I've done a lot of studying a lot of homework on marketing and understanding and it's the no I can trust right if I talk about me. I'm selling if I if I talk about about you and what your issue is how I can help you on educating. It's the if I can get people to know like and trust me on the educator. When you're the educator understanding on stage or you have been does or you have google reviews that is what establishes that no lie can trust on the Internet so if you look us up online we think five hundred reviews on Google right right? I bet over three hundred video blogs on our on our company page. I'm constantly doing baseball videos in other things personalizing humanizing myself now do all the facebook ads. We've chance your question we track every single dollar we spend and we put it out in metric. KPI BECAUSE WE WANNA know are we getting return on marketing. We don't just blindly do it. I think people just hope and pray right. They throw money out there. They hope they return and they really have no idea. I mean a marketing guy every week gives me a KPI sheet telling me what the best return was working not saying. I have to do anything with it but it's good to know where's my money going and what is working best and just because you're getting leads doesn't mean you're converting them and just because you get leads and you convert them. If they're low dollar clients yeah and you don't get repeat business from them. They not might not be good either so it's not only. I don't think it's it's not just tracking the marketing. It's tracking the secondary marketing of where it goes after that that's my thoughts are no yeah you're definitely right and I think about what creates a good business especially in this stanage because brick and mortar businesses back in the day they advertise in a completely different way and today I I look at all the property mentioned couplings look at what's working what's not working and even how I came across your company. Steve and I'm just like social media plays a I think about my company. My my my educational platform before the millions and I do think that social media was just an afterthought like something you had you would you would think about doing like once you know your business established and things of that nature and the warn more. I got engrained into what I did. What I saw that was successful? It wasn't an astronaut and it's not an after PA and it's one of those things where it's it's almost almost like it is the marketing arm of your business like the Internet I mean you. You said you said it best the Internet. It's like everything combined this in the marketing business so I love that that's what you guys is focused and that's where that's where the returns are quite frankly so what were some of the things started noticing that you started the podcast start speaking on stage I I will say that you are not using social media as a tool. It's just a matter of time until you go out of business in my opinion because people go online because they don't want to see the Commercial Coca Cola. They want to see how the Coca Cola hangs out with his kids. They want that personal touch now. That is the new way of marketing in my opinion in the way going back to your question of how evolved into doing this. I always learned that. If you solve people's problems you will be considered the expert the more problems I can solve the more I will be regarded as an expert so with that being said by goal is really to solve a problem if you don't have a problem I can't have a solution and there's there's no reason for us to to do business right so I have to understand. What is your problem? How can I solve it and now events and a and what happened was is the local radio station said Hey we'd like to have you on as a guest and I say no problem I came on? They loved the the airline pilots stories and background and they liked my my analogies algae's in obviously real estate experience. They kept asking me to come back more and more and they said Hey why don't you just get your own show because you you pretty good at this and I was like I'm the Guy Mike absolutely okay. So then I had a show then I got to radio shows then it turned into these podcasts. I've been on entrepreneur on fire. I've been in some of the largest podcast shows Australia. I've I've been on a bunch of these podcasts shows in as I've been doing it. I'm just gaining momentum and then someone said hey could you speak at an event for me. Absolutely I'll be there then I had to learn how to become a speaker how to speak in front of crowds not just not just five people thousands of people two thousand people large experience so it's it's an education process and it's an evolution that I constantly still learning how to become a better stage presenter in these are things that I'm constantly learning constantly bettering during myself because again what got to this point with. Let's just say I have a five million dollar company. If I want to twenty million dollar company I have to become a twenty million dollar leader not a five million dollars a year until the think differently as a twenty million dollar a year later than I do a five million dollars so I have to keep evolving otherwise the business this league pass me up or I will be the constrictor of the business. I love and I have two follow up questions before we run out this this round when you think about the fact that you're speaking on podcasts that are nationwide and you're speaking in groups on groups that are on other continents but your your business is based based in Texas in three cities in Texas lying to us what the what the I guess what the plan is what the vision is speaking on such a large platform income explained to us that at a great question and and you know and just to reiterate this a lot of these speaking's have been in the last probably two or three years so I I did a tour at margin Australia Australia did about six or seven cities throughout Australia New Zealand. I speak around the country about once a month in some other city city speaking either real estate or flippers wholesalers or whatever and it's just kind of evolving and I couldn't honestly say that I have have an know what the plan is for that except for branding and being known as the expert in the industry and I've noticed more I do that the more doors keep opening for me and I've been asked to be involved in some pretty large projects with some freedom clincial people because I and couldn't say that there is a plan. I wish I could act like I'm a smart guy but I'm really not I have a passion I think I have a good way to convey my message. As far as the the property management our plans to expand it across Texas and then a very likely on a national level so that's the plan on the property management side and that's why being the the expert in a deal and being the GO-TO guide being known is so vital you want to make sure that you are building some type of personal brand along with Your Business Nisa. It's almost as if it's essential at this point so when we re talking to this young college student or this person who's just starting that the beginning of the entrepreneurial journey and they're you're trying to figure out or maybe the maybe they've been doing this for a while or any recommendations that you kinda followed along your way you know what I say is. It's Z. Don't talk yourself out of stuff. Just start doing educate yourself to me. Education is the key. Get educated know what you're doing and just do it so many people want to plan and prepare and I'm not saying that's wrong but there's the grave you're with great ideas. That never got the gate right so the thing is if you want to be successful action is actually the key. It's not being the smartest snapping the most prepared. It's a matter one foot after the other in taking action in not letting things you look. You'RE GONNA get punched in the face. Things are going to happen. You're going to fail things are bad. Things are GonNa it happened in you. Never had or thought should or what happened in. That's just part of the journey and I think it's a matter of the keyword I would say is taking action in that really is the key I I. I'm the kind of guy that I get up at four in the morning and go to the gym why not because I like it because I don't have any time in the day to do it. Anything else and people asked me how how do you get up at four. I set my alarm and I wake up like I could never do that. Via you never will cause that attitude tells me you don't have it in you so you don't have to and I don't care if you do or not but don't say that you can't you choose not to you make a choice every morning. When that alarm clock alarm clock goes off to get up or not get up it be Jewish you beat it and so to me? That's a conscious decision. People like to feel good. They like to have those. You're okay you're working hard. I deserve a break. Nobody deserves a break. You don't deserving. I didn't deserve to have planes into a building and change my career forever. I don't complain about it. I took action and difference. I've noticed is you know even in the airline pilot industry there was a lot of people that were complaining and Oh me and this isn't fair. It's like you know what I'm like. It's not fair but what are you GonNa do like take action so that's just me I'm not saying everyone has to be that way. I'm kind of as you can tell them kind of old route Ho kind of guy but to me it's really a matter of taking action and being accountable for your actions and getting educated lifestyle design acceleration hanks. What is your favorite before the millions book Kennex Annex by Grant Cardo in love? They look actually just read that book for the second time. I needed to start out twenty nineteen just because I knew that it was it was a type of go ahead for this year so I love that book everything about that guy. Just I love everything about the guy at my team use our own. I'm friends with some people over there. I just I I resonate with hardworking people. Yeah that's amazing. What what is your favorite lifestyle design APP? This can be a business APP or tool. I'm too heavily in and that's Evernote Asana love about those awesome awesome awesome. Those are those are Morsel Organization type absentee naps and things like that awesome. What do you enjoy most about the way your lifestyle is currently designed the excitement rush? What do you mean well? You know you're constantly doing stuff making deals. I'm traveling. I'm speaking you know people see me on facebook. You spoke on instagram. They're like men your everywhere as an airline island. I fly Australia twice a month flying the plane so I'm in Australia cricket match. I'm working with real estate offices. I'm I'm constantly doing stuff and to me. It's the it's the momentum I loved the momentum that are building and people know it and people that know me and see me. They're like man you you do not stop. I'm like I'm not going to stop. I'm going to keep going and going until I figure this out. I don't think there's an end but it's a matter of going going the what were the sacrifices that you knew you had to make before the millions to get to where you are today time and money either sacrifice time with my family and added sacrifice not making any money to do this who was essential intial to your growth before the millions in why that's a good question I mean I would say my wife being there and in kind of giving me the encouragement to keep going and being patient with me to not give up an understanding when I'm working deals you know Saturday morning or Friday night or whatever my own reading nonstop I would say her next the next time she tells you to sell you so last one not least why do you think so. Many of us are stuck before the millions even though we have every intention of getting to the millions well that's a simple thank seventy percent of the words that go through or ahead negative self-talk. Everything is negative. We always that's why people like watching the news is because they say will shed. Some life is worse than mine. I must not be that that your brain gravitates towards negative vibe so for you to say. Just you knew sent this earlier. You know if all of a sudden I try something fail. My friends and I grew up with in Los Angeles us. You know they still live in the neighborhood are GonNa go see I contacted never work. He failed new. It is so it's a lot of us. Have that negative self talk to say. Why should I even try? I'M NOT GONNA make it yeah. You're so right and we just need to flip that switch is and will I mean our future. Selves will thank US FOR IT Steve. This has been amazing. You drop so many value owns Leonard. Thank you for your time. Thank you for the value that you've not only provided for me and my audience because we've got I've got so much value but the value provided to everybody that you shouts on a daily. Ab basis renew where he will like you. If anybody wants to reach out to you on a little bit more about what you off working or they can. They can find me on facebook. Steve Rosenberg R. E. N. B. E. R. G. MY company on Facebook Empire Industries or they can just go to our website empire industries. LC LC DOT com and they can see everything there instagram so I mean up I'm out there. You Google me. You'll find me I love it. I love it. We'll see this isn't isn't an

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