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Jun 29, 2022

Rich Fettke has a passion for helping people improve their businesses, grow their wealth, and live more fulfilling lives. He is the author of The Wise Investor, Extreme Success, and the audio program Momentum. Rich is also a co-founder of RealWealth. Since 2003, the company has helped over 60,000 members improve their financial intelligence and acquire cash flowing income properties — so they can live life on their own terms. As a licensed real estate broker and an active investor, Rich was selected as a Rich Dad Author for his expertise as a Wealth Mindset Expert.

In this episode we talked about:
* Rich’s Bio & Background
* Helping Individuals with Real Estate Investment
* Geographic Preferences
* Interest Rates and Inflation Overview
* Coaching
* Writing a Book
* Mentor’s View on Assets and Liabilities
* Definition of Real Wealth
* Thoughts on Being Self-made
* Wealthy People Mindset
* Resources

Useful links:
Book: “ Be Your Future Self Now: The Science of Intentional Transformation” by Benjamin Hardy
Book: “The Willpower Instinct: How Self-Control Works, Why It Matters, And What You Can Do To Get More Of It” by Kelly McGonigal
https://realwealth.com

Transcriptions:

Jesse (0s): Welcome to the working capital real estate podcast. My name is Jesper galley. And on this show, we discuss all things real estate with investors and experts in a variety of industries that impact real estate. Whether you're looking at your first investment or raising your first fund, join me and let's build that portfolio one square foot at a time. All right, ladies and gentlemen, my name's Jennifer gal. You're listening to working capital the real estate podcast. My guest today is rich. Feki rich has a passion for helping people improve their business, grow their wealth and live more fulfilling lives.

 

He's the author of the wives, the wise investor, extreme success and the audio program momentum, which is also co-founder of real wealth. Since 2003, the company has helped over 60,000 members improve their financial intelligence and acquire cash, flowing income properties, all things that we like as a licensed real estate broker and an active investor, rich has selected, was selected as rich dad author for his expertise as a wealth mindset expert. Rich, how are you doing today?

 

Rich (1m 3s): Really good, Jesse. Good to be here.

 

Jesse (1m 5s): So you're joining us from Malibu today. So jealous whether weather's good things are good.

 

Rich (1m 10s): Yeah. Life is good and awesome. Yet disconnected when my little two year old grandson yesterday. So feeling fulfilled.

 

Jesse (1m 17s): Beautiful. Well, I, coincidentally, my sister just had a baby last night, so

 

Rich (1m 23s): Whoa, nice congrats uncle,

 

Jesse (1m 26s): Uncle Jesse. So yeah, I got to get out there and, and see the little, the little girl. So I'm very happy and fortunate, so exciting

 

Rich (1m 35s): Times. Good stuff.

 

Jesse (1m 37s): So rich, thank you for coming on. Coming on the podcast. I, I, you know, I heard a couple episodes that you were on and I thought listeners would get, just get some good information from, from yourself and some value through the, the wise investor and some of the other stuff you do from a coaching perspective. And just generally speaking people on this that listen to this podcast, obviously real estate investing is a key topic, but in addition to that, you know, financial freedom, the idea of, you know, living to your full potential, whether that's interpersonally or in the workplace, it's all good stuff and thought, you thought we'd have you on to, to chat a little bit about that.

 

Rich (2m 19s): So I love all that stuff. Let's do it

 

Jesse (2m 22s): Beautiful. So for listeners, why don't you give us a little bit of a, of a background and yeah. Where did, where did you come from and how'd you get into this crazy world of investing in real estate?

 

Rich (2m 35s): Right? It's definitely getting crazier sometimes recently. Isn't it? Well, I, I grew up in Boston, Massachusetts moved out to California in 1995, up to San Francisco bay area. And I became a business and personal coach coaching was new back then. It was 1995 and that be getting involved in the coaching industry. I served on the board of a coaching association and then eventually got elected president at the same time that coaching was a buzz word in the media.

 

So it was really cool because all of a sudden I was, I had a TV special about me. There was a San Francisco Chronicle front page article on me and my clients on. So I was just feeling on top of my game. I got a book deal with Simon and Schuster. Everything was going great. And then in 2003, I was diagnosed with melanoma, which is the most deadly form of skin cancer. And there was a miss sec diagnosis that doctors told me that it had spread to my liver. And they said you have six months to live.

 

And at that point, yeah, it was like a kick in the stomach for sure. And lots of tears and despair and fear. And we had a 10 year old daughter, a three-year-old daughter. Yeah. It was a tough time. And my wife, Kathy was a stay at home mom. I was the breadwinner, if you will. And so she's like, what am I going to do financially? A fridge dies. And so she was also a coach and she had a small radio show in the San Francisco bay area. And she was interviewing people about different things, about, you know, getting the most out of a life and relationships and health.

 

So she decided to put her focus on interviewing people who are financially successful and no surprise to us. Most of those people were financially successful because of real estate investing. So she came home and she's like, I think I know what it is. I know what I can do here. I can get into investing. I met this mortgage broker. He said he can help me. And so that led her to seek out mentors for real estate, investing the misdiagnosis. It was over a three month period where I had to go in test after test. But finally after three months I got a pet scan, which is the most advanced scan and it showed me cancer free.

 

So they just think it's hemangiomas little clusters of blood vessels that showed up and looked like cancer that most of us have that somewhere in our body, but it was the impetus for Kathy to define this new way to create financial independence. So we started to invest together. We, we did a cash out refi from the property that we owned in California and went to Dallas, Texas area and in bought a bunch of rental properties there. And that led us on this path. And then after that, we started to have friends and family and people listening to Kathy's radio show saying, how did you, how are you doing this, this remote real estate investing thing?

 

And so we said, you know, let's form a group, a group that we thought would be maybe a couple hundred people eventually. And yeah, today that group has grown. And now it's over 64,000 members that we've helped create financial freedom. So pretty stoked on that. So that's where we are today. We've we help people at real wealth. We help people acquire cash, flowing rental properties around the United States, usually one to four units, sometimes multifamily larger stuff. And then we also syndicate mostly residential ground-up development.

 

Jesse (5m 53s): Very cool. So in terms of finding a or helping individuals with a estate investment, what does that look like? Is that in the form of walking people through the deal, is it in the form of education? How do you, how do you go about that?

 

Rich (6m 6s): So both we, so we we've always, in the beginning, Kathy was speaking at a lot of RIAs around the country and I mean around the bay area and she would be sick of it. You know, the, the, the gurus who come in and, you know, Hawk, their outdated programs for it, a lot of money and get to the back of the room. Now it's half price and all that stuff. So we're like, as we've talked about it, we're like, let's have a group where there's no back of the room sales. There's no gurus, let's keep it real. And this, again, this is back in 2003. And so basically what we do is we provide free education, but then I'm a broker.

 

So we refer our clients and our members to different brokers around the country that we've vetted and we've gone out to their markets and we've looked at the investment properties they have available. And then once they kind of pass our vetting criteria, then they become one of our preferred preferred property teams or brokers. So right now we have 15, 15 or 16 properties in the south Southeast and in the south, in the United States. And so we refer our members to these brokers. They help them acquire these rental properties with tenants in place, kind of a turnkey deal.

 

And then we received the way we monetize it is we receive a broker to broker referral fee, just like any type of typical agent to broker a thing for finding, for finding leads.

 

Jesse (7m 25s): Beautiful. So in terms of the geographic area, is there some place that you focus specifically, are you all over the states?

 

Rich (7m 32s): It's shifted, you know, it, depending on where the people are flowing and where the businesses are moving and everything. So the Dallas area was huge. Texas was big. We still refer, we still have a property team in the Houston area, but lately it's been Florida, you know, Florida has just been, have been on fire and we have five different property deans all over the state of Florida from the west coast to the east coast, to north, to south. And they offer everything from rehab to properties that they've fully rehabbed to new builds a lot of new builds lately.

 

Jesse (8m 3s): Yeah. You can't really go wrong with Florida right now. It seems.

 

Rich (8m 6s): Yeah, that's been good. And then, you know, there's Ohio, we referred to Detroit for awhile when that was a more solid market, North Carolina, Indianapolis. Yeah. Those are some of the, some of those key markets

 

Jesse (8m 21s): On the point with the markets right now, just bend your ear a little bit on we're we're interest rates and inflation is right now. It's obviously a hot topic. There's been a lot of, lot of money put into the economy, both in Canada and the us. Are you looking at real estate investments in, in kind of a different, from a different vantage point? Are you, are you dealing with the way you approach properties differently given the current environment?

 

Rich (8m 47s): Absolutely. And some things haven't changed who are still stick to the fundamentals were boring. Investors were buying hold long-term in it for the long run. We don't do flips or anything like that. I've got great friends who do that and make a lot of money at it. But our, we mostly help busy professionals who don't have the time to hunt for properties or manage properties or anything like that. So, yeah, it has changed, especially with interest rates, because obviously these, these properties used to cashflow four, five, $600 a month, and now they're cash flowing, you know, a hundred or 200.

 

But we also know, as you know, it's like, there's so much more than just cashflow as long as it's not negative, which we made the mistake, you know, back around 2008 is buying properties that were upside down or a negative cashflow. We learned that lesson. So we just recommend looking for properties that make sense from day one, as long as they have some type of positive cash flow and you've got reserves. And, but then there's so many people are looking for the tax benefit to the depreciation benefits. So that's a big one.

 

Jesse (9m 50s): Yeah. It's one of those things that we've for the longest time in, in the very hot markets, whether that's, you know, up here in Vancouver, Toronto, or New York, Boston, there was a point where, you know, we were all asking, can we, can we continue to go up? You know, something has to give in some aspect, either from affordable affordability standpoint, from renters or actual asset value, but it seems like perhaps the next year and maybe 24 months, we'll be that situation where we do see interest rates go up.

 

We see people evaluations come down to a certain extent. And then perhaps the, those really expensive markets become more affordable. You know, if I had a crystal ball, I'd be, I'd be, maybe I was going to say, it'd be in a different business. I'd probably be in this business, just doing a lot better.

 

Rich (10m 41s): It's going to be as cat Kathy. My wife does a lot of predictions and every year she does market analysis and predictions. And she's a, co-host on the bigger pockets on the market podcast. Yeah. And so I get to benefit from that from having her in the same house and getting her wisdom and all of that. And, and she would always say that at the beginning of the year, you know, I don't have a crystal ball. So last year I bought her a crystal ball for Christmas.

 

Jesse (11m 3s): That's great. Yeah. Well, we probably have crossed paths at some point. I was, I've been a guest speaker at BP con for the last two years. And I'm on a panel this year in, I think it's San Diego, we're doing this year, so

 

Rich (11m 17s): They're

 

Jesse (11m 17s): Oh, beautiful. I'll take a flight out to, to any sunny U S destination. So

 

Rich (11m 23s): No DOE Migos, awesome.

 

Jesse (11m 25s): Meet some like-minded individuals. And it's a, it's a bonus. So before we get into, into the book, I, I was curious, you mentioned before that you were talking about getting into coaching before coaching was a thing. You know, you see a lot of things online, whether it's real estate investing, I feel now it's NTFS and crypto, you see experts and gurus. And especially at the time were coaching was becoming more, more prominent, more than the mainstream. It wasn't something that was odd.

 

I think today, if somebody says they have a coach it's not seen in the same way, it was 10 years ago. Talk a little bit about what, what that was like when you started coaching and where it's at today, and maybe even a couple of tips or, you know, suggestions, you can give people that are looking at either getting into coaching or finding somebody, finding a mentor that, you know, that would be a fit for them.

 

Rich (12m 19s): Absolutely. Oh yeah. I can definitely answer that. Yeah. It's funny. Back then, I would tell people I'm a coach and of course they would say, oh, what sport? You know, I was a trainer and all that. I used to own a health club back in Boston. So it'd be like, oh, what sport to coach? And like, no, and I have to explain the whole thing and yeah, now I don't have to do that anymore. It's like people just get it. So I, you know, for me, it's interesting how, because coaching did become the buzzword. And when people who used to be consultants, all of a sudden are now coaches or people who are mentors are now calling themselves coaches. So I believe in pure coaching and the way that I went to the coaches training Institute, which is the largest accredited coach training program in the world and set, and it was one of the first, it was two and their methodology is very Socratic.

 

It's very much the clients or your clients are creative and they're resourceful. They're whole, you don't need to fix them. They have the answers, or they can find the answers. They can find the resources to learn. And that empowers them to learn to, to, to be better rather than sometimes I think coaching gets a little bastardized nowadays where people say, you can sign up for my $25,000 coaching program. And it's really just them teaching you something saying, do this, do this. And, but not really doing that pure coaching. And I have my own coach.

 

I talked to every Friday and I hired him from, he was trained by the same coaches training Institute, because I just want someone to draw out from me, my answers, someone to hold up the mirror and help me see what I'm not seeing to help me see a different perspective and to support me, hold me accountable, seeing where I'm limiting, thinking that little gremlin in my head to find out what that, what that gremlin saying to me, you know? So when it comes to looking for a coach, number one, I think it's fit. So anyone who says, ah, I can coach you.

 

I always ask them for a conversation first, before you pay for it or sign up for anything and just, you know, ask them to actually coach you and say, Hey, can you coach me for 15 minutes? And just to get a sense of their style, if they're all about them, if they're about their ego or if they're truly connected and, and seeking what you want and holding your agenda. So I think that's a big one. I know if you're looking for a mentor, who's I see a mentor as someone who's kind of been there, done that. Who can say, if you do what I did, you'll be where I am.

 

I think that's great too. So if it's a mentor, you're looking for hire a mentor. If it's a coach or hire looking for then a then look for a coach.

 

Jesse (14m 47s): Yeah. That's I mean, that makes sense. That distinction, I don't think maybe I'm wrong. I think people in general don't, don't make that distinction. I think that's definitely used interchangeably mentor, like mentors and coaches, but that makes a lot of sense.

 

Rich (15m 1s): Yeah. Yeah. All valuable, you know, it's like that, there's a mentor in the book I wrote and it's a parable, so it has a mentor and he, he's kind of like half and half, you know, obviously it's like the mentor in this book is like my future self who I want to be someday if I get no wiser and smarter. And, and so, yeah, and he's, he's more of a mentor because he's kind of guiding giving instruction to the protagonist, but obviously his coaching skills come into.

 

Jesse (15m 27s): So let's get to the book now. I mean, the, you know, there are a million different books out there on real estate investing, financial freedom. You, you chose a specific structure to write this book. That's a little different than most financial and investing books. Why don't you talk about, well, first, w why'd you write the book,

 

Rich (15m 48s): You know, 20 years later after my first book, it's a long run, but I, I think I've gotten adviser in the last 20 years and helping, helping 64,000 people with real estate investing. I just, I wanted to share that. And honestly, it was, it was my coach, my coach, I had sent them a copy of my first book when we started coaching probably 12 years ago and he loved it and he said, I love this book. And he goes, when are you going to write your next book? And I'm like, oh, I'm done. I've written my book. And that was an effort of love. And, but he kept nudging me every, every couple of months.

 

He would say something like, you know what, when you write your next book, and then we, for our business, I read this book called building a StoryBrand by Don Miller. And it's this, it's this structure about the way you tell your story to your customers for, for marketing and all that. And it's like, instead of the business being the hero, it's the, customer's the hero and the business is the guide. And so I started to get into this and I started to learn more about the hero's journey and the structures that stories go through both in movies and in books.

 

And, and it's kind of the same structure, the hero's journey, you know, Joseph Campbell and PennDOT basically. But I was, you know, so one day I said to my coach, you know, if I was going to write a book, I would probably write a story. I'd write a parable, that's something I would be into. And so he caught onto that and he just kept me, held me accountable to it. And then all of a sudden I got obsessed with the idea. I'm like, ah, cause it's a story to me, it conveys information into an emotional format. It, it elicits a change in people emotionally.

 

And I think that's when we take action. So there's tons of information out there. There's amazing, great books on finance and real estate. But a lot of times we will read the book and most people don't even make it past chapter two. It's like 86% of people don't make it past chapter two on a non-fiction book, amazing statistic. So I didn't, I didn't want my book to be one of those. I wanted something that would combine entertainment with education and that would elicit an emotional. So that's why, that's why I wrote a parable.

 

Jesse (17m 52s): Yeah. I think just, just as an aside, I've, I've tried to, I don't know if it's a, AndyFrisella the, what is like the 75 day challenge where you're, you're doing certain things, you're eating clean, you're

 

Rich (18m 3s): Eating hard

 

Jesse (18m 4s): 75 hard. And I don't know if it's fiction necessarily, but I kind of recently made a commitment to, and it's minimal just read 10 pages of fiction a day. And because I'm a big nonfiction guy, I read a lot of nonfiction, but I've just, it's, you know, HG, Wells and Dickens and stuff that I loved when I was a kid, I find that we've just kind of lost, you know, at least myself. But I know talking with friends, we've kind of lost the time of day because we want everything right now in, in the moment

 

Rich (18m 35s): Andrew

 

Jesse (18m 36s): And I, I think you're, you're absolutely right. When you, you tell it in a story format, it's usually more clear for people. I think it's like a visual, you know, turning words into a visual representation. For whatever reason, I find it's easier for us to conceptualize a story. And I thought that was it's is a cool choice to talk about this because it, like, you know, there are so many books out there that are on these topics and you can say the same thing, you know, you can say, you tell people that debt service coverage ratio ratio is only so many ways, but

 

Rich (19m 10s): Talking

 

Jesse (19m 10s): About risk and emotion and, and bad aspect, I think it's, it's, it's definitely a cool route to take, to, to kind of digest it. And it's funny you say that, that stat, because I remember reading a little while ago, I think it was Amazon and they had the list of, you know, the most, the quickest dropped books in terms of percentage of total pages. And one of them was Thomas capital, which is hilarious to me because if you're a little bit more, you know, Austrian economics or you're a little bit more right-leaning when it comes to fiscal policy.

 

It's funny because so many people talk about that book being the Bible when it comes, when it comes to a social policy, but it's

 

Rich (19m 52s): The first chapter is

 

Jesse (19m 54s): At least the first chapter. So it's a good point, but, okay. So in terms of the, the book itself, if you could, you know, without any spoilers, if you could give kind of a lay of the land of the book and the structure, and maybe you could tell a listeners a bit about, you know, the, the characters and, and, and how you approached it.

 

Rich (20m 13s): Yeah, absolutely. Yeah. So it's, the characters are a lot of them are based on real people rate based on real stories. So at real wealth with the amount of members that we've helped over the years were able to get the interviews I'm on the real wealth show, her podcasts that she said since 2003 and well, it wasn't a podcast, then it wasn't until 2005 that we turned it into a podcast when podcasting came out, but doing what we do, we call them real well story. So we interview people and often it's couples about where they were, what they did and where they are now, and the people who've created financial freedom.

 

So a lot of their stories are woven into the book in these main characters. So it was about 10 characters in the book, but the main character is this guy's name is Ryan Brooks. And he's this hardworking 40 something family man who doesn't have time for his kids or his wife, or even as a life. And then he meets this new friend and this new mentor who's older and wise, and he guides them, guides him and shows him a new path to financial security, really how to create financial freedom for himself, for his family.

 

And this guy, this protagonist ends up being wealthy and in more ways than one, cause it's a, the subtitle of the book is it's a modern parable about creating financial freedom and living your best life. So this mentor also is guiding him on how he can be his best self, how he can be a better dad, a better husband, live a better life. And he really puts a lot of value on the importance of time. Cause this guy has just tapped out time-wise. And so he talks about freedom. He teaches him about how wealthy people think versus how poor people think.

 

And, and he really takes a look at, you know, how some people are, they have they're so poor. All they have is money, you know? So it's like some really powerful lessons and, and the cool one really cool thing. Just an aside is I sent it to Robert Kiyosaki. He read it and he agreed to write the forward for me. So the foreword by Robert Kiyosaki was a psycho. Yeah. Thank you. Yeah.

 

Jesse (22m 15s): Yeah. I saw that and I, it's funny, I was just going to ask the Kiyosaki and aspect of assets and liabilities in the book, tell listeners the, the, the mentors view on that on assets and liabilities.

 

Rich (22m 28s): Yeah. It goes a little beyond Roberts, you know, Roberts is, you know, just it's, it's very financial, which is cool. You know, your house is not an asset and you know, all that stuff, but the mentor describes it as an asset is anything that brings you income or better health or happiness or a time that's an asset. And a liability is just the opposite. It's something that costs you money or happiness or better health or time. So it's a, it's a way to just compartmentalize and put things into these two groups when you're looking at it for yourself, it's just like, oh, is this person a liability in my life or an asset?

 

Are they toxic? You know, that might, you might want to cut that liability out of your life or should I buy this boat or should I buy this sports car, you know, and to really look at it. And it's like, if it's going to bring you extreme happiness, true lasting happiness, it might be an asset to you, but usually not.

 

Jesse (23m 19s): Yeah. I liked that view and it just makes me think if my car is fast enough, maybe it's an asset for time and not

 

Rich (23m 26s): Right. To get there sooner.

 

Jesse (23m 28s): Yeah. I can, I'll tell myself whatever story I need to do. But the, so that, that view and I mean, that's, that's huge to, to have that forward to begin with, but you talk a little bit about wealth in the, in the book and, and real wealth. And w what do you mean by that? What's, what's the distinction.

 

Rich (23m 47s): Yeah. And that's why we named our company real well. We see real wealth is much more than just money, obviously. So real wealth, the way the mentor describes it, it's, it's having the money, but also the freedom to live life on your own terms. So it's being able to do what you want when you want with the people you want to be with and to enjoy each moment. So that's real wealth. It's like getting that foam foam, knowing that for me, knowing that I, or thinking that I had six months to live, it really shine the light on the importance of time and the importance of what matters most in life.

 

So I just had to weave that into the story. It's, it's central to my core, and it's what I want to sometimes I just want to shake people and just say like, you know, life could be over tomorrow. You just never know. So it's like, wake up, get on it, you know, study, learn, grow, be your best self, be your best parent, be your best spouse, all that stuff. So that, that's really important to me.

 

Jesse (24m 44s): Yeah. There, there's another aspect here that you'd talk about and I've thought kind of jumped out to me in this aspect of self-made and this idea that nobody's, self-made, you know, all encompassing self-made and, and the way I at least read that, and I obviously want to get your thoughts on this, but I have a, I've always, whether I've been at speaking engagements, talking on this podcast or on other podcasts, especially, you know, people ask how you bought your first property, how, you know, how did you break in? And I've always been very open about who helped me, where did I get help?

 

You know, which aspects and one, and the reason I was like that, not, not because I'm great. It's just, I was tired of hearing podcasts where people were saying, you know, I bought this apartment building and then there was like, no time allotted to, okay. But you know, who did you, how did you raise them? You know what I mean? It was kind of just that then, then I bought this one. It's like, well, I get the second one. You had the first one, but, but what happens zero to one. So, so that kind of jumped out to me. So first of all, is that kind of where you were going with that and yeah.

 

Maybe you can expand on this idea of, of this concept of, of being self-made

 

Rich (25m 53s): No, you totally nailed it. That's exactly that most people have an eye problem. Right? It's I did this, I did this, I bought this, you know, so it's kinda like, you know, it's just like, it's like stepping back and realizing that we don't do anything on our own. Even our business, you know, we have 22 employees and it's like, it's our team. And it's like the, the only thing more important than a great idea is the team that can see it through. Right. So what, what, doesn't matter what it is, it's that, or like Dan Sullivan's great book.

 

Who not, how so it's like really taking it that look and just like, you know, who can help me if you get in that I'm going to be a self-made success and you start to internalize that and you, and you, you start to put the blinders on and you start, like, I have to do it all when you step back and you say, oh, wait a minute. There's no such thing as a self-made success. When you hear the successful people talk, when they go looking back and the true, humble, successful people, they will always talk about, like you were saying, this person helped me or this mentor. And I learned this and I had this problem and someone helped me.

 

So I think it's just that it's stepping back and looking at here's my outcome. Here's what I want to achieve. And then you put it through the next thing. Okay. What obstacles might I encounter? I think that's really important to look at. And then it's looking at who can help me? Who can help me get here? Who do I need to meet? What do I need to know? I did it even with his book, you know, reaching out to Kenny Malka. Roy is a good friend of mine. And he had written a parable and I reached out to him and I'm like, Hey, man, just like, how did you go about this process of writing a great story?

 

And, you know, and so he's the one who connected me with rich dad publishing and, and Robert and all that. So th that's just an example of just one ask. And there's so many more in my life that there's no way I'd be where I am without the people life.

 

Jesse (27m 41s): Yeah. And I think there should be the distinction. You know, it's not just, we're in this a world where just atoms are bumping into each other and, you know, whatever happens to you was going to happen no matter what, like there was this aspect of people taking action, but this idea that it's not connected to the people around you. And that's why I always liked the concept of, of, you know, luck is luck, plays a part in every person's success, but there are things you can do to put yourself in, you know, quote unquote lucky situations working hard is one of them being around people.

 

You know, whether, you know, you mentioned going to different RIAs, real estate associations with your business, those things, those things are all aspects of getting in a lucky situations, but ultimately there are people there that will, that will help you. I know it's a little bit taboo today to talk about rich, you know, wealthy or rich. And there's always been a bit of a negative connotation when people just generally in pop culture, you know, the rich in movies in, in media, but you make a distinction of the way wealthy people think versus people that aren't wealthy, there's kind of this comparison of, of kind of the way that they approach things.

 

Could you talk a little bit about that?

 

Rich (28m 56s): Yeah. There's some big things in there. I mean, one, the first thing that stands out to me and just this, just observing, observing though, the wealthy people that I've met and, you know, I have friends who have their own jets and, and they're just, you know, incredibly wealthy. And I look at them and they're like, I'm like, wow, they're actually amazing people. They're amazing humans. They give so much, it's like, even with real wealth, we we've, we donate 10% of our profits to three charities that changed the world, operation smile and habitat for humanity and mentors international.

 

And we we're, our goal is to raise a million dollars and we are up, we're almost at 800,000 that we've donated. So it's like, that is, that's not the boast or brag. That's a gratefulness because it's like, when I truly wealthy people, not just a rich people, you know, I see that too. The rich people who are so poor, all they have is money, but it's the truly wealthy people that are givers, who they care. They're connected. They're making a difference. They're employing people, they're providing housing for people that those are the two wealthy and the way the difference I've seen in the way the wealthy people live is one is they give back, they all give back.

 

There's this, there's this generosity piece. There's another thing I've seen with wealthy people is that they're, they put more of a focus on education and entertainment. So there's nothing wrong with entertainment. But I think people have at flip-flop most people put 80% of their time or more on entertainment and 20%. Uneducation the wealthy people. I know, flip that around. They put 80% of their focus on growing and educating themselves and learning and getting better and being, becoming the best version of themselves day after day.

 

So I think that's another thing about wealthy people that really stands out. And then the third thing is that wealthy people value their time. They really value their time. And so that means that they, they find people who they can work with. This is, you know, like the, not the self-made success thing. It's like looking to other people and they really look at what is their unique gift? What is it? You know, I'll speak for myself. You know, what is it that I bring to the table? What is it that I bring to the world that is truly my unique gift that I really am good at, that I love to improve and study and grow in.

 

And then everything else who can I employ? Who can I hire? Who loves to do say bookkeeping? Who can I hire? That loves to be like, my assistant is my executive assistant is amazing. Tanya is she calls herself a servant leader. So she's like, whatever you need rich, I'm here for you. And she just loves that. So that's, that's another thing that wealthy people value their time. And the way they that shows up is that they, they hire people to do those things that are not their unique ability.

 

Jesse (31m 41s): Yeah. It's it reminds me of this idea of confidence, competence wheel, you get more confident. You become more competent as a result of being more competent. You become more confident and it kind of starts spinning. And it's funny because as you, you know, you talk about the people that are wealthy valuing their time. It's, it's almost like a chicken, chicken and egg thing, because I find that wealthy people, if, if you know, they earned this wealth, they are people that are typically high performers. So in virtue of doing what they they're doing, they start realizing at a certain point, like the Dan Sullivan, who not how, whether you come up with the idea early, or you're just so overwhelmed, you're like, all right, something has to give here.

 

I need to start hiring delegating these aspects to other people, regardless of how you come to that conclusion. I feel like that ends up happening if you're going to continue to be wealthy, because you'll start bottle-necking on, on things. And it reminds me of this old cartoon of a, of a surgeon in his scrubs mowing his lawn. It's just the worst use of his time because he should be, he should be, you know, whatever he's in, at work in the hospital.

 

So I think that's great. And those you don't realize until you start all these different avenues in business, whether it's social media speaking and coaching, like you do that, you need to find these other people. And without them, you know, you're just one person.

 

Rich (33m 6s): Yeah. And I think it starts just doing that for, it's almost like buying your first investment property. It's that's the most challenging first purchase. Right? It's the most challenging purchase it's like, because all of a sudden you're like, oh, I'm an investor. Now I'm a real estate investor. And then it's like, oh, and that wasn't that bad. Now I understand it kind of, and then you do your next one and all of a sudden you're like, and so just like with discipline, some people say, well, I'm not that disciplined. You know, you have a lot of discipline, but the cool thing is scientifically we can develop discipline and we can change our neural makeup. Each time you do something, that's a challenge and you learn, you change.

 

We change. We lay down new myelin in our brains that makes these connections stronger. And all of a sudden you're tapping into that discipline area of your brain. And it gets stronger and better just like learning to play an instrument. If you're, if you're practicing discipline, you become more and more disciplined. So I think it's just that's exactly it.

 

Jesse (33m 57s): Well, it's, it goes back to the, I can't remember the author's name, Eastern European, where it was, the book is called finding flow.

 

Rich (34m 5s): Oh, hi. Cheek sent me hi.

 

Jesse (34m 6s): The fact that you got that

 

Rich (34m 9s): Good

 

Jesse (34m 9s): Book. Yeah. And it's this aspect too. I was listening to Neil deGrasse Tyson, the, the, the scientists or astrophysicist, I think technically, but he was talking about when he first learned calculus. And he's like, the jump from, from G geometry to algebra is not like the jump from algebra to calculus. And he was saying, when he first looked at it, it just wasn't going to get it. I'm not going to get it. And he's like, slowly, you would go away, come back, go away. And the way you described learning, it was that it was like this fog that was slowly dissipating over time.

 

Not, not completely like, you know, now you see it now you don't, it was this thing that things were getting clearer. And the way he talks, you know, things are getting clear and, you know, suddenly I can use these things and these things are becoming my friends and a little more of that.

 

Rich (34m 55s): That's so cool.

 

Jesse (34m 56s): I think it's the same too. If for any listeners that, you know, do anything related to music, it's the, the reason I brought up finding flow is if you give some somebody something that's so overwhelming, they give up. And if you give something, that's just enough to their competency where they're getting wins, but it's challenging. I feel like that's that, that space we kind of want to be in, especially people, you know, higher high achievers or high performance people like that's where we live.

 

Rich (35m 23s): Yeah. Yeah. It's incredible. It's I I'm so into that. I'm so into the whole and the whole neural makeup and what happens in our brain and yeah, it's exactly that it's like cutting a path through the forest. You know, it's really hard. And you first cutting down that first in the jungle and your, you got your machete and then it gets a little easier and the path gets a little more clear and you start walking the path and all of a sudden it's like food and it's just really easy, but in the beginning, yeah. It's, it's, it's a challenge.

 

Jesse (35m 50s): Yeah, absolutely. Well, I want to be mindful of the time here. We'll definitely, definitely make sure that we have a link up to where people can grab this book, but before, before we leave off here, you know, if there's any resources or podcasts or books that you'd be able to recommend to our listeners, you think that they would get value in aside, obviously from, from your book, you know, is there anything that you're you're reading or listening to right now?

 

Rich (36m 18s): Oh, let's see what I'm on right now. Actually, I just got this new book, be your future self on now, which is on Darren Hardy. So it's sitting right here. So this is just started to get into that. That's a really good one. And then, and here's another, and speaking of what, we're just talking about the willpower instinct by Kelly McGonigal. McGonigal.

 

Jesse (36m 38s): Yeah.

 

Rich (36m 39s): It's an older book, but she's awesome. All her stuff is great, but the willpower instinct is great. Awesome. But then, yeah, I, like I said before, we have a ton of free education@realwealth.com. There's like a real wealth assessment that people can take to kind of get a score on where they are as far as living real wealth in their life, both financially and on all areas of life. But everything on our site is free. Our webinars, the real wealth show podcasts, all that. That's just a SAR come from.

 

Jesse (37m 8s): Perfect. We'll send them there. My guest today has been rich. Fettke rich. Thanks for being part of working capital.

 

Rich (37m 15s): Thanks, Jesse. Good to be here.

 

Jesse (37m 24s): Thank you so much for listening to working capital the real estate podcast. I'm your host, Jesse for galley. If you liked the episode, head on to iTunes and leave us a five star review and share on social media, it really helps us out. If you have any questions, feel free to reach out to me on Instagram, Jesse for galley, F R a G a L E, have a good one. Take care.