Elevate Your Equity

Ep 102 - Business Longevity & Recovering From a $50,000,000 Loss with Rod Khleif

July 19, 2022 Season 2 Episode 102
Elevate Your Equity
Ep 102 - Business Longevity & Recovering From a $50,000,000 Loss with Rod Khleif
Show Notes Transcript

What makes the best students? A tenured teacher with lots of experiences in the field. Today, we have a fantastic guest on Elevate Your Equity podcast, Rod Khleif, a multiple business owner and philanthropist who is passionate about business, high performance, real estate and giving back. On this show, he shared:

• How he built up $50MM in your networth and how he helps other budding investors to start and build their own investing careers.
• What his spouse thinks about his whole investing journey and how it has leveraged him to be on the top.


More about Rod Khleif, as one of the country's top business, real estate and peak performance luminaries, Rod has built over 24 businesses in his 40 year business career several which have been worth tens of millions of dollars. He has also owned over 2,000 properties.

Check out his wonderful podcast Lifetime Cashflow Podcast where he and his guests talk about mindset, setting up goals and other great stuff about real estate investing.

Thank you Rod Khleif for coming on our show!

If you enjoyed this content and are looking for more, you can continue to learn more about us in several different places for free!


If you'd like to have a FREE copy of our 7 Ways Commercial Real Estate Syndications Protect and Build Wealth, simply click the link below. We are here and vested in your long-term success! elevateequity.org/7waysEbook

Introduction:

Welcome to the Elevate Your Equity podcast where we, as married busy professionals leverage real estate investing to unlock the three plus one degrees of freedom, health, location, time and financial.

Derek Clifford:

Hello everyone and welcome back to the Elevate Your Equity podcast. I am so thrilled and honored to have on the show today Mr. Rod Khleif. How are you today?

Rod Khleif:

Oh, I'm awesome, brother. I appreciate it. I'm super jealous of the fact that you're in Portugal and I'm sitting here in Florida but beyond that, I'm awesome. It is a beautiful day here in Florida that said but Wow very cool.

Derek Clifford:

Very cool. Yeah. Thank you so much sir. I really appreciate it and if your lifestyle is anything like your background right now so that's a tip for the listeners out there to go on YouTube and check out Rod's background.

Rod Khleif:

that's my it's a green screen but it is my backyard so here there.

Derek Clifford:

Love it.

Rod Khleif:

There's what's behind it my wall of follow thank you cards in my recliner and my rebounder. But yeah, but it was my backyard. It's a picture of my backyard. Yeah, so let's have some fun today, brother.

Derek Clifford:

Let's do it. So before we start into this rod, I just want to give the listeners out there that maybe have been living under a rock and haven't heard about where you are, where you come from. So I'm just going to tell the listeners out there that Rob is a multiple business owner and philanthropist who is passionate about business, high performance, real estate and giving back as one of the country's top business real estate and peak performance luminaries rods built over 24 businesses in his 40 year business career, several of which have been worth 10s of millions of dollars. He's also owned over 2000 properties. And we're just honored to have you on the show. Rod. I know you've been inspirational and a huge part of people's success in the multifamily industry. And what an industry this has been over the last five to 10 years right now.

Rod Khleif:

It's been pretty crazy. Thank you for your kind words, brother. And yeah, and it's crazy. When I hear that read sometimes it's actually 27 businesses now and I don't call them failures when they fail. I call them seminars and I'll tell you about a big seminar that I had. But you know, like you said, several have been worth 10s of millions most were spectacular flaming seminars, you know, and there's a message there, we fail our way to success, right? You know, it's never a straight line. There's lots of setbacks, lots of failures, but as entrepreneurs or investors, we're like a shark and you only die if we stopped swimming. And so, you know, got to meet the billionaire owner of Spanx, you know, the women's undergarments that hold everything together. Sara Blakely. Right. Yeah, right. But she started with $5,000. And now she's I think she just sold it for several billion. But she told me at a mastermind, we were both at that. Her dad used to ask her and her brother once a week, what have you failed at this week? I thought what an awesome freaking question ask your kids so they don't fear failure. You know, so many people fear failure. They were they should fear regret candidate.

Derek Clifford:

I love that quote from Jim Rohn. It says you can see the discipline. But yeah, it works out to either you can be regretful that you didn't try or be proud that you did and then of going through. And so I think that's really, really awesome. So I love the analogy there that you talked about, because failures is only a true failure if you stop learning and taking action. So I look at failures as like these little learning lessons, like you said, and a gentleman. Right. It's like, you know, there's a book out there that said, when you take off an airplane from Los Angeles, and you're heading towards Boston, or you're going towards Florida, right? Do you think because if you are off by a fraction of a degree on an angle, right, if you don't get it exactly right, when you're leaving the airport, and you can't change direction, there's a very low likelihood that you're going to land right in that airport in Miami, or gonna land right in that airport in Boston. So while you're on that journey, you have to have these little adjustments in the air. And sometimes it can be big ones. Sometimes you have detours, right, and you got to make these adjustments. But as long as you can still keep the direction of your ship, going approximately the direction you want to go and make those little movements in line and live adjustments, you're going to get to where you need to so that's the thing.

Rod Khleif:

There's a boat and or a plane is off course 90% of the time, they always end up at the right spot. And same thing with your goals. You know, if you if you get derailed on a goal, if you focus on that outcome, and you just change your approach, focusing on that outcome. It's never a straight line. And you know, and if that doesn't work, you change your approach, again, focusing on that outcome. If that doesn't work, you change your approach, again, focus on that outcome. And I can give you examples of this. I remember when I lost everything in 2008 and nine I built a litigation support company and it almost went bankrupt in 2010. And I changed my approach and it turned into a $10 million company with 60 employees that I sold a few years ago. Another example is when COVID hit. I was supposed to have 800 people at a bootcamp in Orlando. What am I going to do and I didn't want to refund all those tickets and so I changed my approach I went virtual and I just over the top delivered in more than these people expected and turned into you know, now I've got a video studio here at my compound and I do very actual events as well as live events now and so that's, yeah, yeah, sometimes you have to innovate. Sometimes you have to pivot. But if you keep your outcome in your mind's eye, they affect you go to multifamily, virtual bootcamp.com, you'll see me with my phone recording that video that's still on that website, you know, because I literally did it and 24 hours. And you know, we just reacted very, very quickly. I was one of the first people to go virtual. So anyway, yeah,

Derek Clifford:

Yeah, I love that. Thank you so much for sharing those very tangible examples. And normally, we go in order here on the show, we'd like to talk about your history and backstory. But there's just too much content here. I had to run with it. So let's talk about that though. Let's go Jafar back, right, let's talk about how did you find real estate investing, right? And how did that start to become the linchpin of what you do? And I just talked about you in general in the early days, and where you are now?

Rod Khleif:

Well, let's go way back, I immigrated to this country when I was six, with my brother, Albert, my mother's Moncho, I was born in the Netherlands, Holland Wooden Shoes Windmills. And we ended up in Denver, Colorado, we really struggled. We didn't have much money at that time. And my mom actually babysat kids, so we'd have enough money to eat. But I remember I mean, growing up, we ate expired food, we went to this expired food store, we drink powdered milk and with our cereal in the morning, which sounds better than it is, trust me. I worked close in the goodwill in the Salvation Army all the way through junior high school, till I lied about my age at Burger King when I was 14, so I could get a job because I was told that I could buy my own clothes and ultimately buy a car. And I'm sure you've got listeners headed harder than I did, or have had maybe have it harder now. But I knew I wanted more. And luckily, my mom had an incredible work ethic. So she babysat kids, so we'd have enough money to eat. And with that babysitting money, she was an entrepreneur. So she invested in the stock market successfully, she did IPOs. And she also invested in real estate. And again, this is a babysitter, so I'm really proud of her. But you know, the first asset she bought was right across the street from us house for $30,000. When I was about 14, then when I was 17, she told me she'd make $20,000 in her sleep, that did gone up in value. 20,000. I'm like, What, you didn't do anything and you made 20 grand, this is back when 20 grand was a lot of money. I'm like screw College, I'm getting into real estate mom. So I got my real estate broker's license, right when I turned 18, which you could do back then with education. Now they get smart, you need some experience before you can be a broker. But as a broker, I when I turned 18 Well, my first year in real estate, I made about eight grand, my second year, maybe 10 grand, but my third year, I made over $100,000, which back in 1980 was pretty decent change. So what happened between year two and year three that caused me to 10x my income. What happened was I met a guy was actually dating his daughter that taught me about the importance of mindset and psychology and truly 80 to 90% of your success in anything is just that your mindset and psychology. Don't only 10 to 20% of the mechanical information that you and I talked about on our podcast, you know, it's the do and it's the keep doing that really makes the difference. If it was just the technical, that'd be a bunch of wealthy librarians and college professors out there. You've got to take action with what you learned. And so fast forward today, everyone a couple 1000 houses that I've rented long term, I own 1000s of apartment units. In 2006, my net worth went up $17 million while I slept. And you might be like, Wow, and I was like, wow, and I gotta hit so big. I could barely fit it through a door. I thought I was a freakin real estate God. And you know, when that happens, God or whatever you believe the universe will give you a nice little smack. Well, that was 2008. I lost $50 million conservatively in 2008 Nine. And so you know what I'm known for on my podcast, I've got a podcast called lifetime cash flow through real estate investing, I'm blessed to say we're about to hit 13 million downloads, which is just mind blowing, you've been on it. And what I'm known for is talking about the mindset and the psychology, it took that 50 million dollars in the first place, but then what it took to recover from that to get back to the success that I'm blessed to have today. And so I'm happy to drill down on any of that anywhere you like there.

Derek Clifford:

Yeah, you know, I do have some questions. But let's talk first about what kind of insights you drew. Because I know that you must have done some sort of mindset training while you are building your $50 million net worth.

Rod Khleif:

I didn't know I didn't know I was doing it. You know, till I saw until I saw the movie, The Secret came out. I don't know if you saw that. You know about the law of attraction. And I'm like, holy crap. That's what I've been doing this whole time. And so here's the main thing. You've got to have what Napoleon Hill in his book Thinking Grow Rich cause a burning desire, you've got to want it. And so the first thing you if you come to one of my boot camps, and I was mentioned to you, I've got one coming up in Denver, the end of July. But if you come to one of my boot camps, the first thing we do is goal setting. I call it goal setting on steroids about an hour and a half because how you gonna get anything if you don't know what the hell it is, you got to know what you want with clarity, right? You got to know what you want. And so we do that and it's a really deep process. I'm happy to describe it if you want but if you want I actually did this on my official Facebook page. On January 1 of this year, I do it around the first or second with music and it's professionally done with the goal setting guide you can download. If you DM me on any social channel and I'm on everything if you've got me on tick tock now, you know, DM me, and I'll send you the link to that and I'm very responsive and it's really you know, It's really something powerful you should do with your spouse. You know, make sure you're aligned on your goals with your, if you've got teenage kids, it's very powerful for them as well to sit down and do your goals, but that's the biggest thing is you've got to know what it is you want, you know, like when I lost, everything would have been really easy for me to focus on the loss. That's a natural human tendency to focus on loss and we connect through pain, we connect through pain, which is just crazy. You know, if you came up to me and said, Ron, how you doing? I said, Oh my god, I'm freaking fantastic. Life is amazing. You take a couple steps back and say, okay, rods off this freakin man. But if you came up and said, Hey, Rod, how you doing? And I say, Oh, God, my back's friggin killing me, I pulled my back or, or I just lost 10 grand on the market, you put your arm around me say, Oh, I feel your brother. Because we connect through pain. It's okay. You probably wouldn't, Derek, you're involved. But most people connect that way. And so you know, you gotta be real careful of that. The key in how I was able to recover. One of the big ways was, again, there were several things and we can talk about them. But one of the first ones was reassociate it with what I wanted, why I wanted it, getting pictures around me of the things that I wanted, you know, redoing my goals. That's something you should do a couple times a year. So that's the first thing. There's a lot more but.

Derek Clifford:

Yeah, you know, one thing I have a couple of comments off this. But I want to also get back to my original question behind this question. This is so important these days, right? Because I'm sure that you see people that come to you that are looking for a silver bullet, right? They're looking for one pill, that's the pill,

Rod Khleif:

The pill. They're like DM me, how do I make a lot of money in real estate? Really, really, you're gonna send me that message as the DM. It's like, come on my frickin bootcamp. Okay, listen to my podcast, actually do something. But yeah, no, I yeah, that's, that's a source of frustration for me.

Derek Clifford:

That's exactly what I wanted to explore is like, what do you have? Because there's a lot of people out there, including people that immediate listing for this podcast who are trying, because that's what I did like, for the first six months when I was looking at trying to understand real estate investing. I was looking for the one thing that once I flip it, it like would happen and it doesn't work out that way. It's business. So there's no silver bullet. Yeah. Can you talk to that crowd, right? Yeah.

Rod Khleif:

Yeah, you bet. You bet. Listen, you just got everybody in this business once started out an amateur. Okay, like one of the books I give my students I've my love languages, gifts, and we'll talk about books for a second, get the book The Five Love Languages. If you haven't read it. I have the author on my show. It's freaking awesome book. But my love language I show love by giving gifts. And so of course my wife loves that and she never expects it, but she loves it. But the point is, my students get a lot of books and one of them is turning pro by Steve Pressman, stop being a frickin amateur and be a professional. And so there's there's a great book five love languages. Great book. Let me give a couple others real quick, The Slight Edge, those little decisions you make every every day that traject your life up or down. Gary Keller's one thing is awesome. I had Jay Pappas and his co author on the show. Hal Elrod is Miracle Morning, you said you do the Miracle Morning have had hell on the show. He's a beautiful guy, as well. You know, those are all great books. But I forgot what the question was now that I went down.

Derek Clifford:

What would you do? Or what would you say to those people out there who want to start?

Rod Khleif:

That's right, that's right. Don't freak and dabble. Okay, you can learn anything, you just got to go learn it. Like I said, you can come to my bootcamp, if it's this airs before the end of July for $197. For three days of training, and nothing's being sold. There's no sales pitch, I Well, let me say this, I talked about my coaching for 30 minutes, you're not obligated to do anything, you will leave that event with enough knowledge to get massively get rocking. And so come learn the business. If it's not through me, then go on YouTube University and learn there, whatever. But like I say, my Denver events, 197 bucks, kind of a no brainer. And my focus has always been add as much value as I possibly can. And it'll come back. And it always does. Like for example, if you're watching this on YouTube, I'm holding up some of the books I've written that I give away for free, these are all free. And I've got books on just about every topic in multifamily. A lot of them are on my website, real estate with rod.com direct connection to that. But the point is, I focus on adding as much value as I can and it always comes back. So if you get anything from this episode, get that the most successful people on the planet, add the most value. Okay, so think about how you can add and think about how you can add more value and successes inevitable.

Derek Clifford:

I love it, Rod. I think, you know, a couple of things. I wanted to tack on to this before asking the next question, just some comments, and I couldn't agree with you more on all of it. I think that in order for someone to really pay attention and become fully invested, the people that our most successful either invest their time and or their money and energy into things that they want to do. If you're looking for a silver bullet, you're trying to find a way around that and it's just not going to happen for you.

Rod Khleif:

They're looking for the diet pill.

Derek Clifford:

Right. So I'm encouraging all those out there to please get the four C's the four C's that I recommend is the clarity, consistency, coaching and community. And I know that rod has got all of that set up for you. There's plenty of other folks out there that do as well. But rods got he's perfected over many, many years. And so I highly recommend looking into.

Rod Khleif:

Let me brag. Let me brag for a minute. Okay, so I've been teaching a little over four years, my students own somewhere between 60 and 70,000 doors that I know of. I'm super proud of that. This is beyond my kids. That's my greatest accomplishment. And here's why though. It's not that I'm some sage or anything like that. It's just that I spend, I don't just spend time on the technical side, I teach you the like, in my boot camp, I spend time on mindset, you will cry, you come, you will laugh, you will cry, I'm just gonna tell you right now. That's just because I spend time and having people look in the mirror and getting acclimated to what juices them. So they take frickin action with what they learn. That's the secret sauce. And so again, whether you whether you spend time with me or not, make sure you're continually growing and improving. And frankly, if you're not growing, you're dying. Okay? Make sure that you can learners earners, I've got a picture. You know, I never went to college, I've got this picture of me with a bunch of lanyards around my neck and on my arm from the boot camps and the masterminds and all these things that I've continually to go through. But growth is super critical as well.

Derek Clifford:

It is, it is and the mindset piece is what drives everything in this business. That's your rocket fuel. So I think a lot of people fail to forget that they fail to remember, it's just they think, Well, I don't have to deal with the connections. It's like, Well, okay, yes. But what's the symptom of that? It's always the mindset that drives you first.

Rod Khleif:

The analytical ones. You know who you are, you're like, Oh, for God's sakes, get on with the real estate stuff. Guys, this is more important than the real estate stuff. Trust me on this again, this is how I had 50 million to lose and how I got it back. So I know it's goofy, but I'm just telling you, it's how it works.

Derek Clifford:

This is human psychology, it's driving force. It's the fundamental changes that need to happen. So another question I want to ask you while you were telling your story, is there a mrs Rod Khleif?

Rod Khleif:

Oh, yeah.

Derek Clifford:

What type of conversations were happening throughout this whole history, right? Because, you know, something that a lot of people never talked about, especially people that have done a lot of work in the space like you is, how influential and support that you get from your spouse and how that can accelerate you? Let's talk about this a little bit.

Rod Khleif:

Great question, great question. I never get asked that question. It is a fundamental critical question. And I deal with this in my mastermind. I mean, at my boot camps, the same question you just asked. And I have people get up and talk about how they've overcome the objections with their spouses to get into a business. So it's always fear that comes up. But luckily, when I met my wife, I didn't have a you know what, you know what in Okay, and part two, you know what in anyway, so I also happen to be blessed, she's supermodel beautiful. In fact, one of the Google search terms used to be rod Cleef wife, because people always they hear me talk about her, and she is freaking off the chain, gorgeous. And she's more beautiful on the inside than the outside. Let me say that off. But you know, the bottom line is she believed in me and believes in me still, and she's my biggest fan. And you need that in your relationship, if you don't have that in your relationship, you need to figure out a way to get it, okay. And it could just be a communication gap. You know, I spend a lot of time coaching on relationship as well. And I do that on the side with my students, as I spent 20 years with Tony Robbins, and he's probably the best in the world at it. And so you can't have you have to pick up something 20 years of following him around. But point is that foundational relationship is critical. And, and I will tell you, the most successful speak to men right now, the most successful men on the planet, almost always they're married, they have a wife that supports them, statistically, on a percentage basis, that's the highest percentage by far. And, you know, and then again, I've got tons of successful women that are in relationships as well that have a supporting relationship. And that said, you know, I've also have some very successful single women in my coaching program as well. But the point is, that home environment is just critical. If you're doing a push pull with somebody, it's doubling, if not tripling hard to make something happen. And so and it's just communication, and you've got to hold their hand, you've got to help them see results and see potential and, and that's why my goal setting is so powerful. If you're in this relationship like this, for God's sakes, DM me and help me take you through that goal setting workshop. And then you do it separately. I mean, you do it sitting together, but you don't coach each other on what you're going to put down. You each do your goals, and then you compare them see how aligned you are. Make sure you're both headed the same freakin direction, right? Yeah, super important, brother. Great question.

Derek Clifford:

Yeah, I'm glad that you touched on that. Because almost every guest that we talked to when this subject comes up, comes down to vision and alignment and communication. And I think that's the main thing because here's the problem, right? And I'm just trying to expand on this point for our listeners, is that it's very easy to imagine what would happen. If you do a real estate deal when your spouse isn't on board and it goes back? That's very easy to understand how that's gonna go down. It's not going to be good for anyone, right? But if your spouse isn't on board, and you end up crashing it on a property you make 100 grand right on a flip or something right? And then your spouse's main inclination is to say let's celebrate you spent all this time and energy working on this and even though I wasn't a greeing with you like, I want to know, let's let's do some what, that's what that money for. And you turn around and say, You know what? No, I want to take that 100,000 and invest it back in the business, you can see the alarm bells going off, right? Because now like the alignment is completely separate. It's like when it's in. And so if you don't have the common vision, I think that that is the number one thing, that when when everyone's learning about real estate investing, yes, get familiar with the terms, understand the vocabulary, right? Get to know what the top players are doing. And, you know, just get to know some some general people in that space. But that home environment, right, that's where you spend most of your time. That's where you get most of your influence from, and you are the people you spend the most time around. Right? Right. So if you're around your spouse all the time, and your spouse is in alignment with you, and in conflict with you, what's that going to do to your mindset. So that's just something I wanted to throw out there.

Rod Khleif:

Well, listen, it not just an alignment, honestly, you should be communicating enough. So they understand what the plan is, you should be alignment on the plan. So there's no surprise when that 100 grand comes in, or million and a half comes in. That's what I'm getting today, when there's no surprises when that comes in. And we everyone knows where it's going. So it's not like some whimsical shoot from the hip example. This is like scenario, you've already figured it out. You've already because you're communicating. Most relationships fail because of a lack of communication. That's not just personal, intimate relationships. It's also business relationships, I've had partnerships that have failed because of a lack of communication. And so, you know, I've been fact I've got a free resource for your peeps. You know, I host the largest commercial multifamily mastermind, I think in the world has about 14 16 billion in assets in it. But you know, I've had to have the two of the big hitters in there with you know, 5000 plus doors, both go through very painful breakups with partners, because they didn't ask the hard questions up front. So here's a free resource questions to ask before forming a partnership. And this business really is a team sport. So a lot of partnerships happen. Partnerships, like a marriage are really easy to get into and very hard to get out of. Okay. And so you've got to ask, you get caught up in the emotion of it, you've got to ask the hard questions. So if you want this book, it's text partnership 272345. And in its comes out before my bootcamp if you want interested in the bootcamp text, my name, Rod 272345, and I'll give you a pizza, an incredible bonus, if they can come, they'll let me just say this, the price is 197. Right now, if the price is more than that, when this episode comes out, you DM me, and let me know you're on Derek's show. And I'll give you that 197 price. And I'll give you these two incredible bonuses, you put the word bonus in when you check out you'll get my deal evaluator software, it's incredible spreadsheet with how to use it videos and all that to evaluate a deal, you will also get my document library, which is worth 10s of 1000s of dollars. Those two things alone are worth 10 times the 197. So yeah, it's a three day boot camp July 29, 30th and 31st in Denver. It's not a sales pitch. It's just three days of drinking through a frickin Firehose training about every aspect of this business. Even if you're going to invest passively, you shouldn't be there. Why would you give your hard earned money to someone you don't know what the heck it is, stock market, real estate, whatever it applies, learn the freakin business, spend some time with me so you don't squander your hard earned money. But anyway, you can go to rodindenver.com, or text my name ROD to 72345. Remember to use the code bonus to get those two bonuses. It's 197 Freaking dollars. Okay. And it's not a sales pitch. It's kind of a duck. I mean, if you're shooting this business, you belong there.

Derek Clifford:

Absolutely. And I also have to add to that Denver is an amazing city as well. So take that whole week off, enjoy yourself getting ready for it by resting, enjoying some of the great food that Denver's got the great sights, that will be summertime. So there's plenty of hiking a lot of good stuff. So there's kind of no downsides to this. Anyway. Right. Next question I have is you've got this incredible educational environment to help would be investors. What have you seen over the years that makes the best students?

Rod Khleif:

Oh, that's easy, okay. It's the ones that get aligned with their goals and create that burning desire. It's all about massive freakin action. It's not about technical. It's not about learning every single aspect of the freakin business before you take action. You know, a lot of people have to check off every box before they make a move. You can't be a perfectionist here. You've just got to take that first step like Dr. Martin Luther King said, You take that first step in faith, the next step will be revealed. Lao Tzu 1000s years ago said the journey of 1000 miles begins with a single step. You got to take that first step. And I will tell you, it's sometimes it's the hardest one. But you know, I see it with my students. It's law the first deal as well. It might be six months, eight months, they're moaning they haven't got a deal yet and it might even be a year sometimes they get that first deal. And then next handle they have five okay, it's like what just happened? Okay, then it's the hardest one, but the bottom line is massive action. Action mitigates fear. action makes things happen. Yes. Could you have some stumbling blocks? Could you get your nose bloodied? Sure. But again, we fail our way to success if even if it's a failure, but the key is action. That's the number one thing so yeah, burning desire. So you take that. So you take that action.

Derek Clifford:

Yeah, I think that that, again, it backs up all the mindset. That's why we're spending so much time on this and why you have been talking about this for many years and is always the constant with the most successful people. So I appreciate you underscoring that again. Now, as far as difficulties and struggling, right, I'm pretty sure I know where this answer is going to come from or what it's going to be. But what is the top thing that you see most students struggle with? What's the biggest difficulty with people that get started in this and then.

Rod Khleif:

They allow themselves to create overwhelm? And you know, in my coaching program, and at my boot camp, we give them a 90 day action plan, you just got to follow it. Listen, you know, Tony Robbins calls this dynamic, the science of achievement versus the art of fulfillment. Achievement really is a science, okay, if you want to learn multifamily, I've got a blueprint. You just got to go do it. That's it. Okay. Now fulfillment is an art. Okay. And when I say fulfillment, I'm talking about typically giving back in some fashion and I can dig deeper on that if you want but fulfillment really isn't an art where you've got to figure out what really juices you and how you contribute to whatever it really juices you to achieve that fulfillment but science listen, you just got it. You know, I've got the blueprint for multifamily. If you want to go learn something else, chances are there's a blueprint for you just got to go do it. That's it. You got to take massive freakin action. That's the number one thing like I said, That's it. And again, are you gonna get your nose bloody? Probably? Are you gonna have setbacks? Probably? Is it freakin worth it? You better believe it? Right?

Derek Clifford:

Yes, it is. It enables you to be able to live in Portugal for two months if you want to.

Rod Khleif:

Boom, there you go. You know, and here's the thing you can drive all the way across this country at night with your headlights only seeing 50 feet in front of you. And you know you'll make it could you have some obstacles and some setbacks shore but you know, other people have done it before you it's the same thing with, you know, with most businesses definitely with multifamily. You know, there's a success formula for multifamily, you just got to follow it and do it. And you know, for a lot of businesses, frankly, but you've got to recognize you may not see the whole path. And I will tell you some of my most successful students are super analytical. And it's very hard for them to get this because again, they have to check off every single box before they make a move. You can't do that here. Because you'll lose out on great deals. If you do that here, honestly, especially in this hot market we're in right now. So you but you've just got to take that first step and take massive action. You know, I'm not saying stupid, frenzied, crazy action, but I'm saying actually take action.

Derek Clifford:

Calculated risks. Right? So that makes sense. Right? And it's right. And also when you have the power of a network, right? And because that's my next question is in terms of accountability and networks, right? How do you recommend people work with their networks and setting up accountability because that was something key for me, I want to hear from you out of that.

Rod Khleif:

Super important. You show me your three best friends, I'll show who you are, okay, because you are them in every way, financially, physically, happiness, everything. And so, and here's what sad is most people default to the people they work with, or they went to school with, they're not proactively choosing their peers. Listen, very often, your peers out of jealousy or fear most often, or fear of feeling less than because you're successful will hold you back. And sometimes it's family. And I'm going to tell you, you know, love that family, but choose your peers proactively get around people that want more, which is the reason my coaching program is so successful. Like I said, my students are somewhere between 60 and 70,000 units owned. And I've only been teaching a little over four years, because that's a place where, regardless whether it's my I'm not putting a plug for my coaching program, but the point is, find a group of people that want more out of life that aren't going to be scared of your success that will push you and validate you and empower you when that happens. Like back when I was losing everything I was in Tony Robbins Platinum Partnership, which is very expensive group to be in. And I was around people that were thriving through that and they're like, Okay, 50 million, get up your post, just go make something happen. You know, there, that's the kind of people you need to be around, you know, that can get you redirected and refocused. Because focus is another critical piece what you focus on gets larger, positive or negative, right? So you got to be very, very careful what you focus on who you hang out with us who you become choose very carefully. And that's why I believe in masterminds like I said, I created my own and I've been in members of them forever met that Sara Blakely in one I mean, you know, I totally believe in them. And I want to be around people that think what I think is hard as easy, right? That's what that's why I created mine. And you know, that's what you want. If you're gonna play tennis, you want to play somebody better than you or worse than you. Right? You know, it's really important that you proactively seek out groups of people that are making this happy, come to my freakin boot camp, there'll be 1000 people that's what we're anticipating. These are all people that want more out of life okay? Regardless if you can't make that than just go in your local community to set up your own Meetup group for multifamily investors I don't care if you only have two people when you first start it'll grow and just talk shop and get connected and and talk this business and that's just wallow in it for lack of a better word. The more you do that, the more you network like my my students or call my warriors, my most Successful warriors are the ones that get the most connected inside of my warrior group, this incredible living, breathing ecosystem, we've created about 1000 of them. And so it's just incredibly powerful. Because in most of those 60 70,000 doors were done between warriors, okay? You want to be around people that want this because this business is a team sport, you'll need to figure out how you fit into the team, whether you're the mouthpiece like I am, or you're the analytical person who does the underwriting, or you're the process person does the asset management, you know, where you're going to fit in, if you're out there hunting deals, or building relationships with investors, or wherever you're going to fit into a team, but you are going to get into a team in this business. If you're going to be an operator, the more you network, the faster that happens, and that my boot camps, we actually force networking and those things are analytical. Just know that you're going to network whether you like it or not. Okay, those of you that are introverted, just know it's going to if you come that just to expect that, but everybody, even the introverted ones say they're thrilled that they they were pushed to do it.

Derek Clifford:

Yeah, for sure. I think, again, it's an overused expression, but it bears repeating is that your network is your net worth. Because your network represents your mindset, it represents your options, your abilities, and basically your influence, right? Like what you can do, because the people is where it is, this is the business that we're in to people based business going all the way from the beginning down to our residents, our property management team, right, our asset management team, our investors, our mentors, coaches, they were all people first. And I think that the better you can be at building trust and providing value, that's the other thing I wanted to stay to and want to hear your thoughts on this is that my theory is, Rod is that when you become person who is active in mastermind groups, right, you become a person who is known for solving problems. And when you become someone who solves problems, or help think differently, or has a way to kind of help people add value, add value to people, people are going to look for that when they have a problem. And guess when money and opportunity when things are made is when people have problems, the more you can set yourself up to help solve other people's problems, right? And put yourself in a reputation to help solve other people's problems, you're going to do more of that, which means you're just going to attract more problems with their solutions, which means more returns more wealth, more capacity, more personal capacity for you, as the individual investor.

Rod Khleif:

The most successful operators I know are the ones are the best problem solvers.

Derek Clifford:

Yeah, that's good. That's good to know. I'm glad to hear that I'm on the right path. And because I try to do everything I can to serve people in any way. So this is awesome. Okay, I have one more question for you before we head into the wrap and round. And that question is, you've been in this business for a very long time, right? It's evolved and other than dirt. I will say that you've been in this business longer than I've been alive. And I think that that's a very That's a rarity these days, because a lot of people you know, don't have that kind of staying power. they retire, they move on. Right? And I can tell you love this. But can you talk to me about how you've seen this multifamily space evolve? Maybe over the last 10 years is one thing. 15 years is another? What about like 20 years? 25 years? How all of this have evolved?

Rod Khleif:

Tons of evolution. You know, one of the big things that changed you know, when I first started you could only do five or six B syndications. Who are you had to have that three touch rule before you could approach people for money. Now that you know the Dodd Frank Act they you can do five or six C syndications where you of course, you only deal with accredited investors. But I can shout it from the rooftops I can talk about it on my podcast. I can. You know, by the way, if you're not listening to my podcast, I hope you'll check it out lifetime cashflow, even if you're you know, not interested in the interviews, but the motivational clips I do every week are very powerful. They're called Own Your Power. And I hope you'll check it out. I think it'd be very glad you did. You give me five minutes a week and I will juice you and there's hundreds of in there. And just to get your week off, right? You know, obviously, multifamily is the belle of the ball. It's the most secure asset class that I'm aware of, you know, it beats out everything else. And when COVID hit shopping centers weren't getting assistance of office buildings, were getting assistance, renters were getting assistance, you know, to pay their rent, and we got hundreds of 1000s of dollars in assistance, money for our assets. And, you know, in fact, when 2008 Nine happened within three years of that crash, rents exceeded Oh, six levels, okay. That's how fast it rebounded. So, you know, people always need a place to live. And we become a renter nation as well. That's been a huge evolution. Everybody's thinking, you know, gotta be the homeownership No, people are renting much, much more than ever. So that's huge. The financing, of course, is extraordinary. So that's a huge factor of so much money moving into the business, which has created honestly a bubble. I think we're gonna see a reckoning. I think we're heading into a recession, honestly. But sure, the demand the thing that's crazy as the demand is still there is such a huge demand. You know, without getting political. I think, you know, the current administration is held bent on screwing up the economy here but with inflation and everything else, but here's the flip side though with inflation, something else that goes up is rents. Okay. So you know there's there's a real argument for buying hard assets to offset any pullback, but I think we're in we're due for a pullback. Hopefully it's not going to be a big one. I don't think it will be.

Derek Clifford:

Right. I wanted to ask you though, like, you know, before, like, in the earlier days, right, like, let's say around 2000 or even before 2000, have you seen the same type of market cycles like happening locally and nationally? Have you seen the same characteristics happening or something weird happening over the last 10 years that's just new to you?

Rod Khleif:

The '08, and '09 crisis happened because if you

Derek Clifford:

There you go. That's the market cycle for could fog a mirror, you could borrow money. Okay. And so that was just, you know, if I had my eye on the ball, I would have realized that but I just everybody was making so much money like they are now it just got overlooked. You know, I see deals right now that are so freakin aggressive. I mean, there's no way these guys are going to give the returns to their investors. They're promising no freakin way. I'm going to tell you. I've been through several market cycles. And I've seen huge swings. I mean, my portfolio dropped more than 70% in value here in Florida. Okay, the true story. But I'll give you an example. Back in the late 80s, there was a crash. It was the SNL one or the one before Well, anyway, there was a crash. And I'll give you a great example of what can happen. I had flipped the house, I paid 56 For to flipped it for 76, made a nice little little hit. The market crashed. I bought the exact same house back for $18,000. Okay, so went down. I sold it several years later for 160. Now you want to hear real pain. It's an area called highlands in Denver, and it's now worth about a million bucks. Okay. And I paid 18 for it initially. Anyway, there's the market cycle for you. sure. I love it. But that's awesome. Thank you for sharing that. Now, I was going to have one more question. But we're almost out of time here. And so what I want to do is I want to move over to the Rapid Round. And it's the same five questions that we ask every one of our investors and honestly, like Ron, we can sit here and talk all day. This is my jam. I love talking about mindset and cycles and all this great stuff. So thank you for all the great content that you've gotten here. So let's go to the Rapid Round. Number one. What book has had the biggest impact on you and why? And obviously not Rich Dad, Poor Dad or the Bible?

Rod Khleif:

Think and Grow Rich, it's a book you should read two or three times a year, I've given away not exaggerating, probably three to 4000 copies. Okay, not exaggerating that many Think and Grow Rich. Okay.

Derek Clifford:

It is that good.

Rod Khleif:

I gave several others earlier that are great too.

Derek Clifford:

Yes, sir and we're gonna highlight all those as well as your resources and everything into the show notes as well for the audience. Number two, if people wanted to emulate your success, what do you think for them right now is the first actionable thing that they could do to follow in your footsteps?

Rod Khleif:

Well, of course, that's a self serving response. I mean, you listen to my frickin podcast. If you can come to Denver, please come to Denver. Listen, if you come and you don't love the event, I don't mean like it. I mean, absolutely love it. You let me know afterwards. I'll give you your money back. No, no questions asked. It's never happened. But there's a first time for everything. And I've had 1000s of people attend. But, you know, the bottom line is you've got to, you've got to build your competence first, whether it's with me or not, you've got to build competence first. That will equate to confidence, which will then equate to your ability to influence people. But it starts with competence, okay, but you need to be able to influence people to invest with you to partner with you to to sell to you. But it starts with competence.

Derek Clifford:

Yeah, love that. Love that. That's awesome. Number three, what is one tool process or hack in the last three months that's helped save you or your team time and or effort?

Rod Khleif:

Sure. So we put our deal flow through HubSpot, which is a CRM and very powerful CRM. So you know, we transition our deals through that, like a project manager. It's like project management is really not built for that. But that's how we use it. And we just hired a VA not long ago, who's become quite good and what he does, he's in Latin America, what he does is he takes a broker's provided financial documents, the P&L stuff, puts it into our spreadsheet saves us a lot of time, and now we've got him doing comps as well. So that's probably the most recent one.

Derek Clifford:

Cool, love that. Yeah, I know, it's really easy to suggest, but there's a big system behind that, like you have your own, you know, underwriting sheets and everything that it's got to fit into to make it easy for them. So just want to make sure.

Rod Khleif:

Yeah, so we're always doing apples and apples, you know, because every P&L is different. They lumped expenses to different ways. So he basically normalizes it for us.

Derek Clifford:

Yeah, yeah, we do the same approach. It's awesome. Good to hear that I'm on the right path. Number four. If the people that you know had to describe you with one word, what do you think that word would be?

Rod Khleif:

I hope it's passionate but it's probably impatient. Okay. It's probably impatient. That's my worst downfall. But I think you can see I'm very passionate. I absolutely freakin love what I do.

Derek Clifford:

Yeah, absolutely, I could definitely tell you're into it. And number five, the last question is, what small thing do most people not know about you?

Rod Khleif:

I've got a massive gun collection. Let's just say.

Derek Clifford:

That's cool. It's very cool.

Rod Khleif:

It's been a real hobby for me. Yeah. So that's that's very that's that's never been said publicly. But yeah, there you go.

Derek Clifford:

Awesome. Awesome. Well, hey, Rod, thank you so much for spending all of your valuable time with us here today. I certainly had a blast. And I know that the audience has taken away a lot of information here, a lot of great actionable tools and mindset strategies or things to think about in order to help multiply their business no matter where they are at the beginning, middle, or in the growing phase of their career. So before we go, I'm gonna give you the floor one last time, and invite anyone or anything that you want to say to our audience, or to anyone out there in general, finding out more about what you have going on right now, other than your event coming up. Anything else that you want to mention.

Rod Khleif:

I mean, listen, if you're really interested in this business, you need to just totally immerse yourself in it. So if you can't come to my event, and for God's sakes, get in a group that's doing it, or watch out for a virtual event that I'll have probably towards the end of the year, you can do that as well. But But the bottom line is, you've just got to go do it. And the more immersed you are in it, the better the more networking you do, the better. So again, if you're not going to come join me, then then for God's sakes, go do it in your own backyard, and meet as many people as you can. Because like you said, Derek, your network absolutely is your net worth. And so especially in this business.

Derek Clifford:

Thank you very much for that. And, Rod, thank you so much again, for coming on the show. It was a pleasure having you on thank you so much.

Rod Khleif:

Thank you. Appreciate it.

Derek Clifford:

Yeah. For listeners out there, we want to also thank you as well for listening and watching and engaging with us. So please do hit that thumbs up button. Subscribe with us like it, engage in the comment, rate and review, do everything you can to interact with us because we really want to appease those algorithm Gods so that we can get more and more exposure to more people and bring on tremendous guests just like Rod to help add value to people like you people throughout their entire investing journey. So thank you again, dear listener, we appreciate you. This is Derek signing off for the day. Thank you so much.