How Come That Idiot’s Rich and I’m Not? with Robert Shemin


How come that idiot
is rich and I’m not? That’s today’s episode. Let’s dive into it. Hey, everyone. I’m Clayton Morris, the
founder of Morris Invest, and the host of the Investing
in Real Estate show. This is the show where we try to
bring you financial education. We try to elevate your
financial intelligence here. Because there’s so
many moving parts. And this is the stuff
that we were never taught in school, right? All we were taught was
how to balance a checkbook when we were growing up. That’s it. So the vehicle that we use,
that my wife and I use, is buy and hold real estate. That’s the way that we’ve
been able to achieve financial freedom. We know that we
really want to help you achieve financial freedom. And I’ve got a great
guest, one of my mentors. Met him years ago, when
I was still working in broadcast television. Started really diving
into his books, and realizing that there was
another way to build wealth. My guest is Robert Shemin. He is the author of How Come
That Idiot Is Rich And I’m Not, New York Times bestseller. He’s written a number of other
books on real estate investing. He buys, basically, the
same exact properties that I do in those B
and C neighborhoods, as part of his portfolio. And what I love about Robert is
that he’s an active investor. He does it every day. In fact, he said, hey,
Clayton, let’s talk next week. Let’s talk about some deals. Let’s talk about some
different things. So we’re going to jump back
on the phone next week, and just talk
strictly about deals. Robert, welcome
back to the show. Great to see you,
again, Clayton. How you been? I’ve been great, my friend. I’ve been great. And I think you might– it’s kind of like when you
look at David Letterman’s show, when he had certain guests,
like Bill Murray, that were on a number of times. I think, in going
back and looking, I think this might be
your fourth, or maybe even fifth time, here on the show. So I love having
you on the show. Welcome back, my friend. And I remember Fox backstage,
when we weren’t on air, like, hey, so this
Reynolds stuff. I got a deal doing it. Is it worth it? What do you think? Yeah, let’s– yeah, great, go. And I’ll tell people nothing
going on but the rent. But people think because you
write books, or do a podcast, you don’t do investing. And I have nine
closings this week. All right, brother. I love it. I love it. I think I might have
beat you by one. I think I’ve got 10 this week. See, we’re actively doing deals. And then next week,
Robert will have 20. And I’ll have seven. So that’s how it works. God, if someone
said you would have had 10 closings in
a week, or 10 days, what would you have thought? Like, that’s impossible. How could somebody buy
10, 9 houses in 10 days? It’s amazing. Well, and so many people get
emotional about real estate, right? And so I always say, think about
when you have 50 properties. Are you going to be up
late at night, worried that you had an eviction? Or that a squirrel
got in some duct work on one of your properties? No. If you’ve got like you– I don’t know how many
properties you have now. What, like 600? 800? You know, the good
answer is, I don’t know. Because it’s moving
all the time. And that’s where you want to be. Someone once said, if you
know exactly how much money or wealth or real estate you
have, you don’t have enough. Right, and we create this
artificial emotion and anxiety about things like this, right? You know, not knowing– what, we’ve got an eviction. Well, that’s part of
the process, right? That’s part of the
real estate process. You get a violation
letter in the mail. That’s part of the
process, right? If you want to be
in the game, you’ve got to have skin in the game. Yep. I tell people, please
show me any business where there’s no problems. If you can find one, I’m in. If you go to a
restaurant, there’s going to be customers
who aren’t happy. You got an employee
doesn’t show up. I mean, think of your own
corporate job, business job. There’s politics stuff. And the beauty of it is, we
think they’re big problems, but they’re really not. And what I tell people
with the rental property– you know this, because
you help people get good rental properties–
is, what’s going on? Nothing but the rent. The rent keeps coming in. Right. Whether you’re asleep,
whether you’re– sure, there’s ups and downs. And things happen. But if you have a– you’re diversified a bit
with a few properties, it’s an investor mentality. The rent keeps coming in. It’s awesome. And what I love about
you, we’ve talked before, about lower-cost properties. People have this
idea that you have to spend $300,000 on a
residential piece of property. I buy three-bedroom,
one-baths all day long. And they’re in that $50K range. And when I’m all
done with them, you buy in the same
neighborhoods that I do. That’s part of your main
portfolio and cash flow. Bread and butter. Yeah, go ahead. It’s the bread and butter. That’s some
higher-end properties. And I tell people, there’s
Dollar Store, there’s Tiffany’s, there’s Cartier,
there’s Wal-Mart, K mart, and they all make money. There’s Waffle House
and Ruth’s Chris. Right, and why shouldn’t
you own all of them? Yeah. And there’s no right or wrong,
but I love the bread and butter stuff. You know, there’s a lot
more Wal-Marts than Cartier and Tiffany’s. So before we dive
into your book, we’re going to talk about– I really love this idea. I get so many emails from
people that basically say the same thing as
your book title, which is, How Come That
Idiot’s Rich And I’m Not. I’m trying everything, Clayton. You know, I just– the only thing they
haven’t really tried is getting their mind
right, and actually start investing in real estate. They tried everything else,
all the 401(k) and everything. So before we get there,
and dive into your book, and go through a bit of a
framework to help people. And get their heads straight. Where do you see the current
real estate market shaping up? You’re buying in the same
neighborhoods that I am. Where do you see things going? Well, you’re not going
to like my answer. I get that question
about five times a day. There is no real estate market. There is no stock market. It’s an illusion. Good answer. What part of the
real estate market? We’re in Indianapolis, Detroit. I do deals in Atlanta. Right now I’m in Las Vegas,
where I’ve done deals. Which market? There’s Commercial A,
Commercial B, Commercial C. There’s new construction,
old construction, low income, moderate income, Section 8. And I will answer your question. But I do deals, not markets. I’m an investor. And my focus is, do a deal. I know right now there’s
five people listening to your great show, going
man, if I could just figure out this market. When the right time,
or the right city, or the right country,
or the right moment. There is none! And they’re never
going to jump in. It’s like the person that’s
waiting for the best computer to buy, right? They’re like, oh, should
I buy that new Macbook? Well, there’s a new one
every eight months now. Get a phone. Just buy it! Because guess what? There’s going to be a
new iPhone next year. That is a great analogy. I’m going to wait for that. The best computer comes out,
I’m going to wait 20 years, so you know. There’s always a deal, you know. It’s below market at cash flows. My question is, why
wouldn’t I buy that deal? I mean, there’s about six
million residential real estate transactions this
year in America. All you have to do is two. Or one. Or five. Or do 50, right? And so, I don’t do markets. I do this. Now, that being said, you got
to know your, what I call, micro-market. Correct? Right. You’ve got to know what the
rents are, what the values are, what’s going on in
that neighborhood, are jobs coming or going? So you know, we don’t
just buy a deal. You have to do your research. But now, the general
macro real estate market? Listen, if I knew exactly
what was going to happen, I’d be running a $50
trillion hedge fund. Correct? Right, because all real
estate is truly local. So what happened in Miami,
what happened, frankly, in Las Vegas, what
happened in San Francisco, had nothing to do with what
happened in Indianapolis during the downturn. You know, totally different. I’m on the beach in Miami. My property on the
beach never went down. Now, midtown Miami went
down 30% during the crash. I do deals in
Nashville, in Memphis, where Nashville and Memphis
really never went down. They weren’t affected by the
global US meltdown in 2007 or 2008 or whenever it was. So again, there’s so much
misinformation about that. That being said, I spend a
lot of time, man, like you do, because I love this stuff. Because it’s distracting. It keeps us busy from
not doing a deal. Let’s read economic reports
on the future of real estate. But I love it. And I’ll tell you
this, the millenniums. This is the largest
generation to come through, even bigger than the
generation after World War II. They’re starting to
buy houses, right? They’re renting. There’s a lot of them. Supply and demand. And here’s the biggest
thing, Clayton, that people don’t realize. The number-one
reason real estate has gone up in the last
23 years in America, not according to me, according
to the Harvard MBAs, PhDs, is government regulation. Think about it. Right. 50 years ago, your
parents rolled into Ohio. They bought some land. They could build whatever they
want to build, pretty much. There were no rules. Now to build a new
house, or duplex, in anywhere, the restrictions,
the green laws, it’s expensive. And that’s restricting
a lot of supply. I believe, as always,
there’s going to be bumps. Over time, real
estate always goes up. Rents go up. Right? Some costs go up. And the question is, is how
much do you want to get? I wish I would have bought
everything 20 years ago. Everything. Right? Yeah, I mean, and
you and I are in some of the same neighborhoods. You know I love Detroit. It was my first markets. And you know, what’s
amazing about Detroit is– and I was just there
visiting my team and walking through like 50 or
60 of our rehabs in progress. And what I love about
it is, you know, yes, the values might have
dropped a little bit, 10,000, 15,000 during the downturn. But guess what didn’t drop? Was the rents. They stayed the same. You know? And guess what? Now those values
are back up again. But again, who cares, right? Because that value going up and
down, it doesn’t really matter. But the rents stayed consistent. I don’t know what’s
happened next year in every little market, but I
know over the next 5, 10 years, it’s going up. I’m not selling next year. Right. I’m going to look for a rental. The rent’s coming in. The tenants are
paying my debt off. I’m getting tax
benefits for owning. And you know what’s funny, this
is so important about how come idiots are rich and I’m not– there’s two types
of decision-making, emotional, right? Or economic. Rational. I’m an investor. You’re an investor. I’m a numbers person. No emotion. When we say Detroit,
I could hear the people listening
to the podcast, watching, going,
Detroit, oh my god. Gangs, fire,
bankruptcy, disaster. And as an investor,
I’m thinking, Detroit. Number-one or -two
best real estate market in the United
States last year. Right. Great cash flow. Right. Correct? Their government’s
got it together. There’s now a little
tech boom going on, and jobs boom going on. But people watch the media,
no disrespect to the media, and think, oh,
Detroit’s horrible. No, it’s a big city. There are always some
parts that aren’t great, but there’s like any city, there
are parts that are amazing. No, that’s such a great point. And I love, frankly, it
allows me to get more deals, with the ignorance that’s
out there about Detroit. Right? And so I love it. I actually love the
ignorance about it. Yeah. The herd. I mean, and most
people’s information comes from the media,
which is just all– you know, it’s
just not accurate. There’s not facts. I’ve done some deals in Detroit. Best investing market of
the last couple years. It’s coming back. Again, you gotta know what
you’re doing, correct? Right, yeah. Quicken Loans just moved there. We got a billion dollars
from Chrysler Fiat there. You know, I asked this
question on the podcast. How many people know what the
number-one industry in Detroit is? And most people say,
oh, the auto industry. No, it’s health care. And the auto industry
is secondary. And then you have
Google, Facebook, all of these other
companies moving there, because of the benefits. And because Detroit has now made
it a tax incentive for people to move into the city, their
paychecks are going up. So people are actually leaving
the exurbs, the suburbs, way out. And they’re moving
into that area. And guess what? They’re renting from me. I love it. But I got to really
warn people, you know. Get rid of that emotion, and
get the facts as an investor. If you’re all emotional
about it, or psychological, you’re not going
to make any money. And also I would say, and
I’d add to that too, which is, get off the internet. Stop hanging out with naysayers. Get the facts. But don’t let it crush you. Don’t let it cause analysis
paralysis, where you never actually take
action to do a deal. And by the way, intelligence. You need somebody on the ground. I love the internet. I don’t use it. Most super-successful
investors I know don’t use it. Right. Exactly. If you want to go look at
something, or a picture, or whatever, 80 percent of
the information on there is incorrect. Right. That’s a great point. That’s an absolute great point. I want to dive in
to your book now. And you know, this
framework that we’re talking about here, this idea
of how come that idiot’s rich and I’m not, the idea
is you ask the question, have you ever really wondered
why some people attract wealth? And others don’t. They stay financially
tapped out, in debt, or they have their
whole frame of reference is around a debt lifestyle. So let’s kind of
go through this. How do we set a success goal? That’s one of the key parts
of the book, is having that one focus. And most people don’t do that. You know, I tell
people in the book there’s two goals you need. One, what’s my big goal? And my mentor walked
me through this, just like you probably do
with some of your people. I said, I need $5,000 a month
coming in from rental property. And I don’t care how long
it takes me to get it. But that will get me, at
that time, financially free. Remember, I was kind of a broke,
miserable in Nashville, not LA or New York, where $5,000 a
month gets you a parking spot. Right. You know, it’s all relative. And so I worked backwards. What’s your big goal? What’s financial freedom? Where do you want to be? How much money do
you want to come in? And I break it down into deals. If I’m making $600 a month
from a rental property, I need 10 of those. That’s it. And really work backwards. Know your numbers. And then the second
most important goal, which is what most people forget
about, is, goals are great. But most of them we never reach. What am I going to do today,
or this week, to reach my goal? I need to make five
offers next week. Or look at three houses. Or close on one property
in the next 60 days. Or find some money, or what
action am I going to take? That, to me, is the
most important goal. And when I say
[INAUDIBLE],, I don’t mean someone who’s just dumb. What I mean is most
people, including me, complicate things. I thought about real
estate for about two years before I ever made an offer. Analyzed everything, a fear. And when I say rich idiot,
most of them are pretty simple. Well, I need this much money. I need to buy this. How did I do it? What I do today? Let me go do something. They’re doers. They’re not thinkers. And I think those are
the two goals here. What’s the big goal? Where do I want to be
5, 10, 15, 20 years? And the second
most important goal is, can I block two
hours next week? Or 30 minutes? And make a few calls, make
an offer, look at a property, get movement of some sort. And not think, wonder,
worry, analyze, hypothesize, skepticize, negativize,
intellectualize, researchize, which most people,
including me, do for years. And never do anything. Right. I talk to investors all the
time when they call our office. And looking to get started. They’re like, I’ve been thinking
about this for two years. I’m like, my god,
that’s two years. I’ve talked to 20 companies. Have you ever made an offer? No. No. But I’m working on it. Right. And I did it. I was so passionate. I don’t know if you did it. I spent a year and a half. My mentor told me what to do. He showed me tons
of great deals. You probably show
people great deals like, well, it’s not the
perfect deal for me right now. I can’t do that one. There is no perfect deal. Do something. Get your first deal done. That’s the hardest deal. It took me a year
and a half to do it. After my first time, I’m
like, this is not that bad. This is easy. Let me do another one. Right, the fear
goes out the window once you take action, right? If fear is just sitting
there waiting for you, and once you actually
move as a forward arrow towards your goals, that
just starts to peel off. It just starts to
shed and fall off. You know, I was the same way. Took my sweet time. But then I became like
a dog with a bone. Once I saw– I’m like, I’m going
to go after this. I’m going to go after this. My first two properties
are in Detroit. They’ve been consistent
for me ever since. You know, yes, I’ve
had a tenant turnover. Yes, I’ve had to
replace a soffit. Who cares? Any business has costs. But here’s what’s funny, and
I didn’t think about this, I used to work 50 hours
a week at restaurants to make $30,000 a year, maybe. You know, double
shift, maybe 35 grand. Most people work 40
to 80 hours a week to make whatever they’re making. And then people won’t
spend five hours a week to do one real estate deal. And you know this. You could create $10,000,
$20,000, $30,000 in wealth over the next 10 years. [INAUDIBLE] or that’s
just too crazy. You wouldn’t spend three
to five hours trying to make that 20 to 50 grand, and
you’re spending 60 hours a week working a job you don’t like. Right. That makes no sense to me. Well, I love the idea of
focusing on these two goals, what can move me forward. Because if you
don’t write it down, put it up on your whiteboard,
put on your vision board. Just keep a little notebook. Like, I keep a little notebook
right here on my desk, and I have my daily goals. What are those
one or two things? Michael Hyatt, the
great Michael Hyatt, has a really great book
called The Focused Planner. And he helps you everyday,
what are your big three goals? You know, what are
your big three goals that you can move forward? All the other
stuff is ancillary. But what are the big
three things that you need to bite off, to
make sure that you’re buying that first
property, like Robert said. One of the other things
you talk about in the book is playing while your
money goes to work. And I love that idea. And you think about, why do
I have to wait until I’m 70 to start enjoying the life
that I know that I want? Yeah. And I think we’re brainwashed. I mean, I was brought up
by great parents, like you. I don’t know about you. My parents and grandparents
worked really hard. They were stressed out. They were like, listen,
don’t take vacations. When you’re 60 or 70, if you
save money and work really hard, then maybe
you could go down to Florida for a couple of
weeks, or whatever you’re into. That doesn’t make any sense. As a lot of people
know better than me, life is shorter than you think. I’m going to work. You know, it’s effort,
any business you’re in. But I’m going to have fun now. Right. I’m going to live
where I want to live. I’m going to invest
where I want to invest. I’m going to do
what I want to do. And people think
it costs a fortune. And it really doesn’t. I’m not saying, just go
blow money and don’t work. But enjoy life. I live in Miami Beach. I’m like, why work
50 weeks a year to spend a week
or two somewhere I want to be, like a beach, or
sunshine, or whatever you do. I’m going to live there now. Now with the internet
and FaceTime, you can invest
anywhere, any time. I mean, look at us right now. We’re talking to each other. You’re up there, up north. I’m in Vegas at a big
investor’s summit. It doesn’t matter where we are. Correct? Right, you can do it. And I think that you bring
up a great point, which is also in the book. Which is about connecting with
high net worth individuals. And I’m always, you
know, flattered, by the people that write to
me, or write to our team, or reach out. And they say, you
know, I’m starting this and I just need
some advice here. Or we’ll do live Q&A shows
on our YouTube channel, so we’ll do a live stream. And people jump in
and they ask all kinds of insightful questions. But you’ve got to get out there. You’ve got to connect with
people who are doing deals. How do you feel about that? Dive into that a little bit. Because so many people
surround themselves. I did a whole podcast episode
called “Stop Surrounding Yourself With Losers.” Sorry to be blunt,
but it’s true. People just– they’ll
surround themselves with losers who’ve never
done a deal, who have no idea how to build wealth, and
they’re talking this person out of taking action
and buying real estate. So this is interesting. I go around the world and find
the best coaches, probably like you do, always
reading, learning. And I met with this
group in Israel, who are top of the
world on behavior. And they said the number-one
determiner of your behavior, which is exactly what you said. These are the PhDs,
psychologists, best coaches in the world. They said it’s
who you’re around. And you know, when
I was younger, I was around a lot of
broke beer drinkers. And guess what I did. Drank beer and was broke. And we were really good at it. Right. And you take anybody
and you put them around people that are doing
real estate, or investing, or have an investor
mentality, or millionaires. And what’s going to happen just
by osmosis, being around them. So what you said is so key. So you’ve got to get out
of your comfort zone. Whether it’s on the
phone, on a podcast, on an internet– go to your
local real estate investor group, and say,
who’s doing deals? Because the
number-one reason you won’t do a deal, is you
will talk, which I did, to my mother. Who can bake a great
casserole, has never done a real estate deal. My brother who’s never been
an investor, my best friend who has never been an investor. And say, I’m thinking
about investing? They’re like, oh,
that doesn’t work. You can’t do that. Right, or you’ll
reach out to the one person you know that bought
one property one time. And got burned
because they didn’t know what the heck
they were doing, or they just did it all wrong. And then that’s that
one-colored perception of real estate investing. That one guy who bought
that one single-family that had the nightmare tenant,
and then that’s it. They just got out. They couldn’t handle it. They were wimps. I’m going to give you
a real secret here. I hired a mentor, a guy
who had 120 properties, and he changed my life. But he said this to me, and
this is free for everybody. Once a week, or every two
weeks, go to LinkedIn. Go to your local
real estate group. Call around. And ask somebody who’s
doing what you want to do– a landlord or landlady who
has 10 or 20 or 30 properties, or a rehab or
whatever you’re into– and take them to
coffee or lunch. And I was broke. I literally would call
them and say, hey, Clayt, I hear you’re an investor. I’m just getting started
out here in Nashville. I hear great things about you. Listen, I’d love to take
you to lunch for 30 minutes. I’d like to see if I can help
your business in any way, find out about
what you’re doing. By the way, I’m just
getting started out. So I’ll buy you lunch, as long
as they have a drive-through. Because I [INAUDIBLE]
that’s about it. And most people are lonely. You know, there’s not a lot
of people doing this, really. And not everybody
was super nice. But 90% were like,
oh my god, thanks, let’s go have lunch or coffee. How’d you get started? What can I help
your business with? And to this day, those are
some of my best money partners, best investors,
best deal people. And we’re still friends. I mean, little quick stories,
I totally agree with you. When I was just
getting started out, wanted to work in
television and radio, and I was obsessed
with David Letterman. I would sneak
downstairs and watch Letterman when my parents
thought I was in bed. And I was obsessed
with stand-up comedy. So I reached out
to the local guy who ran the comedy club in
Reading, Pennsylvania, David Stein. He also was the morning
broadcaster of the Mike and Dave morning show. And so he had the
comedy club in town. He had the radio show. And I reached out to him. And I went to his comedy club. And I said, hi, I’d
love to learn from you. Can I take you out to lunch? And we became best friends. I started doing stand-up
comedy at his club. He had me on as his
intern on the radio show. And went off to the
University of Pittsburgh, and that launched my
broadcasting career, thanks to that. By just me reaching out to him. What’s the worst they’re
going to say, no? So again, it’s
not what you know. It’s what you do. To this day, once every
week, I take a new investor, somebody in my business. And I call them and I say,
let’s have coffee or lunch. And imagine if you
did that, and let’s say I only did 40 weeks
a year, what you’d learn, who you’d be around. But only get advice
from people who are doing what you want to do. Most people will tell
you that you can’t do it, because they’ve never done it. They don’t own 5 or
10 or 20 properties. They don’t know how to do it. So please, what you
said is so important. Be careful who you talk to. And on the internet,
I ask people, hey, did you have a positive
experience at a restaurant or movie, did you go post
something on the internet? They’re like, no. Most people on the internet
only post negative stuff who’ve never done anything. Exactly, exactly. Most people like– it’s true. I mean, we don’t really
ever write a review when we’re happy. The other day I was
stuck on an airline flight going to Detroit,
actually, meet with my team. And it was a seven-hour delay
on the tarmac, in a snowstorm. Massive snowstorm in Newark. And the United team was amazing. They brought us back to the
gate with a de-ice twice. They let us out. They said, you
know, we’re trying to get updates from the tower. They’ve closed
all these runways. They were fantastic. And I tweeted it. I said, you know
what, most people use Twitter to say negative stuff. I just want to tell everyone how
amazing the United staff was. The pilot, the whole crew. People don’t do that. They go to Twitter to complain. They use the internet
to complain and write negative reviews. That’s why they
use the internet. And even this podcast,
people love it, they’re learning stuff. Go on there and
say something nice. No one ever does it. Right. Yeah, please, go to iTunes. Leave Robert and I a five-star
review for this episode. It’s easy to do, and helps
other people discover and gain financial intelligence. So yeah, I really
appreciate that. Got to be so careful
who you’re around. That’s the number one
determiner of your success. And these folks are
about drug addicts, like they get people off drugs. They put them around
people who aren’t on drugs. And within a few
weeks or months, they just get off drugs because
no one else is doing it. Same with money, same with
wealth, same with exercise. Same with health. And you know, you’ve got to
get out of your comfort zone. And we’re not telling you
to lose all your friends. And you know, it’s funny,
most of my negative people in my life had the
same last name as me. I don’t know how that worked. It’s true. It’s hard. You know, you got
a negative family. It’s hard. But I limit who I’m around and
what I’m going to listen to. And I don’t talk to
my family about money. Because oh, that doesn’t work. You know, we’re
broke and miserable, and you need to be
broke and miserable too. You know, get a job. My family still thinks I
should quit real estate and go get an office job, so
I’ll have health insurance. Right. Right, right, right, exactly. No, I had a negative
employee one time. You know, every time
he wanted to talk, it was just negativity. And I said, look, you don’t
need to worry about the things that I should be worrying
about as the owner. Be a forward arrow. I hired you to be
a forward arrow. If you’re going to call me, I
don’t want to hear the anxiety. I don’t want to hear the stress. Let’s be forward-thinking. One of the things you talk
about– we’ll wrap it up with this– is in
the book, you talk about having a
millionaire mentality while you’re becoming one. And I think that’s so
important, because I don’t think people have a fear of failure. I think some people do. Most people, I think,
have a fear of success. And they sabotage
themselves while they’re becoming successful. It’s uncomfortable. Nobody talks about that. Thank you for bringing that up. Listen, I come from a very, not
so wealthy family background. When I started making money,
it was very uncomfortable. They made me uncomfortable. I was uncomfortable. Correct? Right. And nobody ever teaches that. Now, I’m not telling you
to flaunt your wealth and throw it in people’s faces. But you’ve got to be
around successful people, and get that mentality now. You will become what
you want to be, right? When I was worried, stressed
out about money all the time, focused on how broke I
was, that’s what I got. Correct? People talk about it, but they
don’t do it, the mind-shift, right? You know, as a
sportsperson, you have to visualize yourself
being successful, winning, becoming the winner
of the race or whatever. And I talk to athletes. They visualize themselves
winning the race, having the best start, the
best catch, or whatever. Musicians, you have to visualize
yourself playing the concert, being a success, or
whatever it may be. Same with wealth and money. And you’ve got to start
treating yourself better. And I think the most
important thing, and this is very
simple, but very key, is watch your language. Listen to how the
people around you talk. I’m broke. The economy’s bad. There are no deals in America. There’s no deals in California. Right? And whatever you
say, you’re right. And the money will
be coming to me. I am closing deals. I am finding deals. I am successful. I will be making a lot of money. I will be enjoying life. I feel good. I’m excited, not scared. I’m excited about
making an offer. I’m not scared about
making an offer. There’s no risk in making
an offer, generally. Correct? Yeah. Joseph would love that. –will combat that mentality. And I started treating
myself a little better. Didn’t cost much but now
I go to better hotels, and better restaurants,
for a few extra dollars. And also I’m meeting
wealthier people, people that are doing things. And it just snowballs. But if you’re around,
I’m broke, I’m miserable, everyone around me is
broke and miserable, well, that’s what you’re
probably going to get. So you’ve got to
change your language, change your mentality,
treat yourself better. And you deserve it. Why not? And here’s the other thing. Nobody really cares
about what you’re doing. You think they do. They don’t. When I was broke and
miserable, nobody really cared. People really don’t care
what kind of car you drive, or where you go. So do what you want to do. Enjoy yourself. Really, people, they are
all on their own planet. They really don’t care so much. And if you want to help people
around you be successful, do it. Don’t talk about it. And that will
bring everybody up. Absolutely. And everyone will
say, hey man, what has Robert been doing lately? He’s happy. He doesn’t have a day job. He’s just financially free. I want some of that. And that’s exactly what we
try to teach people here. It’s so funny. Most of my family
who are very negative now go like, you
know what, Robert? We were so glad you
did real estate. We supported you
in the beginning. Remember that? And by the way, borrow 80
grand from you next month or whatever? Right, exactly. Yeah they come out
of the woodwork. [INAUDIBLE] supporters now. But you know, be the
person you want to be. Be around– what you said was
key– be around those people. And just starts snowballing. And conversely, when
you’re depressed, and I’ve been
there, or bad things happen, or you’re broke,
that snowballs too. Yeah, absolutely it does. Excellent wisdom. And I love to have Robert. We’ll have you back on soon
to talk some more great real estate topics. This book, though, for
Robert is called, How Come That Idiot’s Rich And I’m Not? You’ve got to go download it. We’ll have links to it on our
website at morrisinvest.com, on the podcast page. We got tons of great
resources over there. So come on over. We’ll have a link
to Robert’s book that you can buy
and check it out. And it is a New York
Times bestseller. Robert, great to
see you, my friend. And yeah, let’s chat next
week, let’s talk some deals. And the goal is pretty soon–
it’s already happened to you, it’ll happen to some
of your followers– they’ll look at them and say,
how come that idiot’s rich and I’m not? That’s the goal. Exactly. I love it, I love it. Robert, always great
to see you, my friend. Enjoy the conference down there,
and we’ll catch up real soon. Right. Have a great day, great
evening, see you soon. Happy investing. Happy investing
and taking action. Thanks, Robert. And thanks to all of you for
subscribing and downloading the podcast. We really appreciate it. Please, like Robert
said, just come on over to the iTunes store. If you’re listening to it on
audio, or if you’re on YouTube, just go over to the iTunes store
and leave a nice, kind review, if you would be so kind. And share this with a
loved one that you think is being a little negative,
and has an old way of thinking about money. Because I think you
could really change people’s lives, just listening
to Robert’s wisdom and others. We’ll see you back here next
time with another episode. Now go out there, take action,
become a real estate investor, and stop hanging
out on the internet.

54 thoughts on “How Come That Idiot’s Rich and I’m Not? with Robert Shemin

  • I'm raising business credit currently, I'm at 55k and I wanted to get a property from morris invest. I wanted to know from you what to do if I want to obviously refinance within a year and what are the chances of getting all my money out in order to brrrr and keep getting properties.

  • I probably started real estate the wrong way. I bought one without knowing anything about real estate when I was a sophomore in college. Looking back on it, it had a 2.8% roi which is so terrible, but it cash flowed right away and it got me started.

  • Closing on my first property on 9/7! Nervous but super excited! Thank you for all these great videos. I’m a State Farm agent and just wanted more. This strategy is perfect for me! Hopefully I can shake your hand one day. Thanks again Clayton!

  • Would you agree a break even point Ie: all costs associated are covered by the rent paid is fair better than nothing. I suppose 0 vs 1% or greater.

  • The only problem with low rents is that a service call can eat your profits quickly. A plumber for a $800 rent costs $65. A plumber for a $1200 rent costs $65. I prefer to get over $300 net cash flow for that very reason.

  • Please advise if personal credit is considered if you pay for the house in cash but want to refinance in order to do the BRRRR method?

  • I live in jacksonville Florida were most good looking homes start at 100k. If I understand this right if I buy and rent a property the rent will be much more than the mortgage and I'll make money. If all this is true the only thing holding you back would be fear.

  • I recently went to my local REI meeting and I met a real estate investor and I'm meeting with her this Saturday. Wholesaling is my start into real estate investing. Im in Detroit.

  • I’ve been really lucky in my buying on a couple Rentals! I have Passive Income dreams!
    But, my last two Vacancies have resulted in 0-Days of Vacancy! Needless to say, I’m happy!
    We are working hard now to pay off the Houses! It may take some time now but, they will be paid for by the time Retirement hits! Rents are going up so, things are getting easier!

  • Dear Clayton,
    interesting podcast as always,I've got an interesting question that I've been asking myself for a long time and I also think that it could be very interesting for you.Hey Clayton,
    I'm currently looking at registering my LLC holding company for my real estate operations,I know you're using the formula of setting up many llcs with 150k$ of real estate value in each,all of those company having the same parent (holding) LLC but I am currently hesitating between that option and the option of setting up a series LLC.
    What are your thoughts of using a series LLC ? Wouldn't it suit our needs more in the business we're doing ?

  • As a real estate investor myself, this is one of the best videos on investing ever. Gave up on family and friends on his topic. They see me doing well while they live paycheck to paycheck and when I try to show them they can change their lives with ONE simple move they check out.

  • Thank you.
    Your videos are helping cement my mindset.
    Informative and down to earth as wel as great subjects covered.
    Again. Thank you

  • Great videos. Can you tell me what real estate investment software you are using? In order to keep track of Mortgage and Property Payments + Rental Received? Thank you.

  • No analysis-paralysis here. Just purchased my first buy and hold last month. Rehabbing now, but looking forward for the next property. Thank you for your encouragement!

  • Hi Morris, love your videos. Do you have turnkey opportunities in the Windsor, Ontario, Canada area? Let's connect if you do.

  • Glad I went back and found this one. I agree this is a great uplifting video I needed after visiting a negative friend this weekend that again discouraged me saying how I will never succeed by buying more property. If he doesn't use the internet to research how does he get info on his properties?

  • Robert Shemin, I want you to live a long happy life. So, switch to a ketogenic diet, 2 meals a day with no snacking, no hunger, and only one hour walk per day for my cardio.
    In the last 6 months, I've lost 60 pounds and 12 inches off my waistline, and I have tremendous energy when I'm in ketosis and fat adapted. I've cured my type 2 diabetes.

  • I remember in 90s… i went and got THE BEST PC i could get. i was PROUD BOY. As i drove home i saw a ad on a billboard for a PC faster then mine. i couldn't even get home. Best PC sales line i ever heard… " You will never need more then 4gb of ram" XD

  • Thank you Clayton for sharing your experience and knowledge with us..I would love to hear from you in regards to how older folk in my case 57…get into real-estate investment. …cheers and kind regards William. ..

  • I would love to do this, its always been my dream but I dont have the finances. I have the time and the dream but no large stash of money to get started😞

  • Notes: Robert Shamin’s book is a pretty good book. It, of course, focuses on financial intelligence. He has a good point when he says there is no real estate market—it’s an illusion. Markets themselves are illusions. The focus should be on doing a deal. The idea is that there are rational investments and emotional investments. People who make emotional financial decisions are not wealthy. People who choose based on rational decisions are rich.

    Additional notes:

    The key to everything, without question, is learning to think differently about money and finances. People who are rich, in general, have different ways of thinking about money and thus, different behaviors that they take. It’s not about intelligence or talent. It’s about doing the right thing at the right time.

  • Clayton and Robert thank you so much for this amazing advice. I wish someday to meet you both soon. My Family is the same
    Way Robert was talking about, family. I had to move away from them to have positivity in my life. I love this abundance thinking!!!

  • “While money can't buy happiness, it certainly lets you choose your own form of misery.”
    Groucho Marx

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