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Speaker 1: All right, welcome. This is Financial Survival Network and I'm

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your host Carrie Lutz. Hey got interesting guests, Hunt, Scott Jared,

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wealth management expert, real estate expert and heads up a

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billion dollar company. And Scott, it's great to have you

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on the show. So how'd you wind up getting into

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real estate?

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Speaker 2: Oh? Real estate was funny when I went to when

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I was a kid, I like, never had really had

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any money. And one day we were looking out in

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our Section eight housing apartment projects and a guy's helicopter

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laying in the backyard, and I'm like, what is the

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what are the rules that he's playing that we're not playing,

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And so from that moment on, I was like, man,

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it'd be really cool to be able to be in

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real estate. And I end up going to school for

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urban planning in real estate finance, end up getting a

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masters in technology and never really had any money to

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do real estate early on. So we started a company,

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a wealth management company called invest and was helping people

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with their money. And not too long ago we work

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with a lot of real estate investors, like as they're

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helping them with their money and all that, and then

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it wasn't we would used to co invest with them

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and now we actually do a lot of that, a

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lot of that in the house now, So it's really

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expanded our reach into the real estate market so that

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it became a byproduct of what we're doing. Even though

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it's what I wanted to do, it wasn't really what

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the company was founded to do.

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Speaker 1: So from from section eight to to this amazing business,

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What do you think the secret was of your success?

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Speaker 2: Yeah? I think a lot of it is just like

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when you're in a when you're in a scarcity minded

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world where your life is just miserable, like meaning like

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you just can't do stuff, like you have no freedom,

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you can't you're not free to go do what you

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want to do, when you want, with who you want.

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And I think there's a point in your life where

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you just have a mind shift that says, you know,

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this is what I want, Like I want this for myself.

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So that happened for me where I was just like,

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that doesn't matter what it takes, and when it works

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really hard to not have to to be able to

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live the life that I want to be able to

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live it under my own terms, and so just started

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grinding it out, worked really hard, and and got there.

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So hard work works if you will.

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Speaker 1: Yeah, well you know. Edison said what some people see

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as luck, I see as overalls, you know exactly.

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Speaker 2: We have a shirt like luck means when preparation meets opportunity,

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and we say like when preparation when when you meet

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invest and then invests the opportunity. So our companies invest,

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so like you're prepared, you're ready, and then when the

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when the opportunity presents itself, you can take advantage of

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that opportunity, whether it's real estate or or in your

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business or whatever you're trying to do. Recovering attorney as

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as you will.

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Speaker 1: Yeah, well you know so, but hard work alone isn't enough.

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There's millionions of people out there working their hells off. Yeah,

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you really meet with limited success, so there's got to

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be something more to with than that.

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Speaker 2: Absolutely, I think hard work is you can work really

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hard and get no results. And so for me, the

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hard work when I started was like how do I

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do a paper out? So now, like to get money,

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you had to go run papers. So to be able

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to build scale, then you have to hire employees to

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run the papers for you. So by twelve I started realizing,

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well I could go do all the manual physical work,

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or I could start to use my brain and start

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to think about how do I manage others to be

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able to give them opportunity. So when I started to

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learn that I could be an opportunity creator for other people,

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then the opportunities came back to me tenfold. So then

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my whole framework of mindset was like, what if I

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could create a world where I could just create more

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opportunity and that was my unique ability for other people

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and to solve their problems and what they want. And

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so then the point you're making is like that hard

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work is is a part of it, but now you

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got to start thinking smart and how to use your

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capability things that you're uniquely gifted that other people aren't

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that will help you become more successful. And that was

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one of the biggest things that I discovered early in

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my life. And I've just been you know that I'm

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forty eight years old, just been really honing that skill.

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And now you know, we have eighty three employees versus

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just a few, and and we're helping entrepreneurs every day

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scale grow, make their money work for them so they

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don't have to work for it.

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Speaker 1: Yeah, so, so hey, on your road, your path to success,

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there's always a seminal event for you. It was the

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helicopter landing there, right, And but you know, not everybody

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sees it that way. If you were if you got

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one piece of advice to an aspiring entrepreneur whatever they

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want to do to succeed, what would it be?

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Speaker 2: Oh? Okay. So, no matter where you are in the

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entrepreneurial journey, you're always in an inflection point. It doesn't

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matter where you're at, Like for us, from the very

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beginning as an entrepreneur to now managing billions of dollars

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and overseeing a lot of financial responsibility for people. It's

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just a different level a game you're playing, but that

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game still goes on. And it's just like you got

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to just have good habits and really hone in those

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good habits, and if you have bad habits, that's what's

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going to kill you. So how do you get your

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bad habits to switch to good habits and do them

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more consistent over a long period of time. But the

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world doesn't get easier. Elon Musk said it best. He's like,

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entrepreneurs are like literally staring down a black of this

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and eating glass every single day, and you just got

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to be super comfortable being uncomfortable in that. And when

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you're just about like staring down a black abyss and

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eating glass, it's like even as you get so higher up,

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the like you get your entrepreneur journey gets high and higher,

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the stakes may get bigger, but you may be more

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comfortable in it because you're more comfortable of acting and

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that way. So for me, it's that that the one

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piece of advice is is you're better off. Just be

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better than where you were yesterday. Be a better version

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of you, and don't quit. Just keep grinding through it,

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thinking smart, thinking hard. But the moment you start letting

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that abyss and you start letting that grind gets you down,

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that's when you lose.

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Speaker 1: Yeah. So you know, success is a path, and everybody's

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path is different. And for you, like growing up in

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what sounds like a very disadvantaged you know childhood there, Yeah,

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you know what was the family support, Like, how did

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they did they help or were they hindrance?

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Speaker 2: Yeah? So for me, like my mom and dad were

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divorced very young in my life, and so I was

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raised by a single mother for the most part. That

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was just working table, you know, waiting tables, on end jobs,

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on Section eight housing and food stamps. So by the

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time I was twelve, like you had no choice but

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to figure it out, and that to me is I

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think a gift. And also, as an older child, had

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a younger brother and sisters, so I was always dialing

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down on like how do I make a better life

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for myself? So for me to have I mean, obviously

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I had a family and and they were there to

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support and all that, but financially that was not there.

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So it was like, how hard are you going to work?

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What are you going to do to get yourself in

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a better put yourself in a better environment to succeed

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in life. And that's where that skill came from. But

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that's that was my background coming out. So to me,

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it was actually an advantage growing up that way because

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I didn't know what the other side of it looked like.

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I just had to like figure it out. And I

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think today a lot of things are just handed to

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people and they don't know how to how to create

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on their own.

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Speaker 1: So when you hear people talking like the government needs

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to do more to help did the government help you

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make your fortune?

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Speaker 2: They did not help me get my fortune. But I'll

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tell you what was nice is there was a safety

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net at some point. There was you know, food stamps,

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there was Section eight housing and things of that nature.

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There was great college options from student loans, pel grants

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and stuff like that for someone like me to be

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able to get out, to be able to do it.

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But I'll tell you, living in America is the best

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country ever because you can have that opportunity, so you

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can you can get through. But I think the government

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helps you with a certain safety net to be able

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to help get through. But we have the best schools,

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we have the best education systems. We got a free

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economy and a free market that you can go create

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whatever you want. So I think that's where the government's

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been great, is like letting us letting entrepreneurs thrive. That's

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why it's everyone wants to live in America.

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Speaker 1: And but that's where it's even this day, with things

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going wrong a lot in the country, there's still America

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is built on optimism and hope for a better tomorrow. Yeah,

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is that still alive here or is it still possible?

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Speaker 2: Absolutely? Would you rather do it here or somewhere where else?

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Would you want to do it. Yeah, I mean, yeah,

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I'm telling you. We see entrepreneurship all the time. We

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see people grinding and scaling, doing their thing. Whatever is

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happening inside the government and the world, it gets and

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it goes and swings. We have these things and we

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gotta we got to learn how to be in that environment.

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But when you do live in a free economy and

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a free world, free free country and the way we

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do things, it gives you a lot of opportunity. You

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just got to know which side to play on.

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Speaker 1: Yeah. Yeah. So as far as mentors or people who

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inspired you when you were younger, can you give us

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a few.

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Speaker 2: I mean, I think for me it was like you

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just take a lot from everyone you're with, from me

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my way out of my situation with sports. So mentorship

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for me was like football coaches, the basketball coaches, people

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there are just like pushing you to do better when

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I was younger, and that that was that. So like

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my football coach, coach Scotten, and the linebacker coaches always say,

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you know you can be successful, and then when you

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see someone in front of you that's doing well, Like

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there were some guys that are playing and they end

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up going to the NFL and you see what they

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were able to do, so you can shadow that. So

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when you see someone that's actually doing really well, that

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that mentorship really really wants benefit you. And even today

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where I'm at now, there's guys that are twenty and

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thirty years older than me that have been doing it

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for a long time and they'll talk to you and

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they'll tell you like, hey, here's how you how you

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do things. So there's when you find successful people, they're

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very willing to get back and just you just got

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to ask the questions. You know.

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Speaker 1: I always say if you invest in yourself, that that

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to investment will always pay multiple returns, more than a

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government handout or anything else. Yeah, whether it's courses or

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you know, yeah out there practicing whatever training. What role

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do does managing your emotions play in success?

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Speaker 2: Scott? So invest like one of the things that we

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focus on, and I think you nailed it. The most

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important asset is you And no it's not your money,

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it's not your portfolio, it's not your real estate, it's you.

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So you always invest in yourself. So I think you

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nailed that there. And when it comes to financial decisions,

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there's three components to it. And the first one is

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like your IQ, like how well you know money, But

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the EQ, which is your emotional quote, and that's where

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things go awry. And a lot of people make decisions

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based on their emotions, not only just in the way

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they manage money, but the way they get up every day,

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the way they show up, the way they deliver, what

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their belief systems on what they can do. So we

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try to measure like here's your IQ when it comes

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to money, here's your EQ, and then here's your experience.

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And as you get better experience, like I was saying,

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I get more experience now than I did before when

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it comes to handling money and doing certain things, but

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my emotions are still you still have to manage and

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obtain those emotions. So the emotional thing, like literally we

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have ten thousand clients here in twenty five hundred households,

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and you almost feel like you're a psychologist more than

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you are anything. And it's not just for your money

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management and like how you manage your emotions. It's the

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business owner that's trying to scale and grow and you're

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helping them. So we've built these systems out to help

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them help entrepreneurs with their help them get inside their

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own head and have the discipline is necessary to be

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able to scale and grow themselves. So I would say

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eighty five percent of it's your mind game.

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Speaker 1: Yeah, hey so, but sometimes the life can get scary.

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What do you think it was the scariest moment on

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your path to success?

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Speaker 2: I think you always. I think every day is a

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scary moment in some way. It's like you got to

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make you know, you know, I probably make one hundred

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and some decisions a day, and you can make them,

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you know, are they the right choices? And you got

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to make your right your decision right. So even though

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I made the decision, you can ever make the decision right.

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But as you go through. I think my my biggest

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thing was like even being broke as a kid and

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coming out of that, I always felt like it was

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felt like you were a helpless And I just remember

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when I actually made it and I started to be

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a little bit successful, and I was. It was in

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two thousand and eight and two thousand and nine, and

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the whole real estate market was crashing down. I was

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in Tampa at the time, and it felt like, wow,

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the world's coming down. A lot of people were trying

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to spile bankruptcy and all that stuff, and I just

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kept that optimism and that abundance mindset. I was like, look,

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maybe there's a better way. Maybe there's the way we

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can work this out. May there's the way we can

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hold on. And I think those kinds of time is

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when I've learned so much. So it's like in those

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hard times you do better. So then when COVID hit

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and everyone's freaking out. During COVID, I was like, man,

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this is nothing, this is easy, Like we got this.

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So I think you start to go through these really

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hard times and they end up becoming that's when you

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win the game. It's like when it gets really difficult

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and hard, that's when you're are. So when I felt

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like it was so helpless and bleak at a time,

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I was like, that's where your emotions comes, Like this

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is actually when you double down on this opportunity. And

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I almost I flipped that around the other way, but

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those were But I think that's it happens a lot.

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I think we have a lot of hard times every

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single day, like and it's just how you deal with them.

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But those big economic downturns were really hard for me.

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Because it impact a lot of people's lives and that's

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what we do for a living.

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Speaker 1: Yeah, all right, so you know, I totally can relate

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to what you're saying. It's always darkest before the light.

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That's what I always tell myself and like you, when

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COVID hit, I saw it as one of the great

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opportunities in life because cause just myself, going back to

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two thousand and eight nine, the GFC, the Great Financial Collapse,

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I took the fear mindset. I thought it was the

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end of the world and I missed so many opportunities

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Scott to really have just made huge sums of money

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that I knew were there because I knew the crash

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was coming, the real crash. I was in Las Vegas

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and this was I think in eight and I looked

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around and there was a seat of taxicabs before Uber

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really took over, and they had signs on top of them,

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you know, three bedroom, two bath townhouse, brand new, interest

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only mortgage, no money down. And I said, this is it.

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We're at the end because they've run out of buyers

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and these are the only people they can get to

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buy this stuff. And literally, and I was with my

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partners as practicing law, very lucrative law practice. I turned

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each other. I said, this is it. Crash is coming,

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you know it. But I didn't do anything about it.

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I could have, like Solt in my house and you know, Sultan,

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my vacation has had enough money. I could have bought

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up half of Florida at that point. And it was

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only afterwards when I met a guy who was buying

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up tax deed foreclosures in Lee County, and he was

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buying up bank foreclosures, and you know, he'd done hundreds

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of them, and I wasn't like, oh, he just told me, oh,

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I did this. I actually went into the property records

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and looked up every deal that he had made, and

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I saw the money there. There was no question. The

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least amount of money you made on flipping one of

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these foreclosures was twenty grand. And you know, I realized

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I had blown it, and I said, the next time

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this happens, I'm not going to miss it. And now

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right now I think we're getting another one of these opportunities.

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Election uncertainty, you know, the security that you feel out

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there in the world is is the equivalent almost of

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a mini COVID or a many financial collapse, and yet

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that's when the opportunities really present themselves.

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Speaker 2: Yeah. Yeah, I remember nine those years, I had fifteen

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condos or something in Tampa, and I think the value

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those were like twenty five cents in the dollar because

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I thought, oh, and own all this real es state

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and I didn't own the right kind of real estate personally.

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But I would work a lot of developers, so I'd

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help them buy I'd buy condos in their places and stuff.

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And I Remembermber in our Yeah, we always protected against

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downside downside profection. We use a lot of life insurance

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that was uncorrelated to the market, so we had cash

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store in those when the market corrected the bond prices

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went up, we had trust work. So what we had

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done a really good job is we did really good

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job with cash management. So when the markets moved, we

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are that our clients had money, so then they could

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go back and buy those assets on the cheap or

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do restructure because the banks would be like, well, you know,

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we want that money. It's like, well, the money's protected,

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you can't get it, but we'll do a deal, Like

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can we work this out? So we did a lot

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of workouts and stuff to be able to get there

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and you fast forward from there, you know, cor right

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now in the exact same hiss itself. So like we

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just bought an office tower, like actually bought four towers

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in the last eighteen months that were so value written

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from COVID, Like we got one A Class A building,

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we got a thirty's the net operating incomes three point

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five million and it's fifty percent full, meaning you can

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literally buy it right now and generate a ten percent

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return on your money and you have huge upside. And

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not to mention, we have a bunch of leases coming in,

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so we literally have built this like massive real estate

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portfolio on stuff where the banks are foreclosing, they're writing

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it down, they're saying, no one's going back to the office,

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none of stuff's ever going to happen. And what we're

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seeing is the absolute opposite. We're seeing this thing being

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we're resetting basis, we're getting stuff for ten percent of

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replacement costs, and we're buying future cash flows. So we're

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seeing huge opportunity and these assets and our clients are

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in a situation where there uncorrelated to the market. They've

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got assets that are able to manage the vault ultility,

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so they can take advantage of these opportunities they present themselves.

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So now we're like sitting there going, wow, I'm glad

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I went through all these hardships to get to here.

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So then when the real party starts to your point,

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I can take massive action.

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Speaker 1: That's amazing. So office buildings, who would think, so you're

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really a contrarian contrarian investor.

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Speaker 2: Here, Yeah, yeah, because we don't want to follow the

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limits off the mountain. So you're you're over there buying

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building multifamily projects and you got to exit them at

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five caps and four caps. Well, you're safe with draw

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rates five right now. In treasuries, there's no way you're

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going to be in a lot of trouble if if

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you can't make sure that that thing is working at

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a very high level. So we're buying stuff where it's

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working at ten and twenty caps when we get them

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ready to go, So where there's huge margin of error

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and margin of safety for when you go into those

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things because you're buying them at you can't even get

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they're basically geting for land costs. Essentially, what you're doing

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and the three keys to the real estate location, location, location.

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So now you're buying things in the urban core that

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have the most unbelievable desirable locations and you can't even

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build the stuff for less than ten percent of replacement costs,

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So you're getting it for twenty seven dollars a fifty

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bucks a foot. Very contrarian, but that's what we're doing

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and we're having huge success in it.

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Speaker 1: All Right, So what if people don't go back to

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the office. Is there a way to monetize those assets,

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because it seems like I guess, you know, it feels

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like people just don't really uh, they aren't going to

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go back to the office.

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Speaker 2: Yeah, so zoom is probably what I think. We're on

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zoom right now. They just mandated all their employees work

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in the office, like come back to the office. They're

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mandating at scale, we have a mandate here in our

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office where we need people in the office to do

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collaboration to build best practices. So certain companies definitely will

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be working more of a hybrid. Probably is like I

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think what you'll see, But there's something to be said

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of actual collaboration and things you can do inside of

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your environment. So a lot of these companies need that.

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So these law firms. They're taking multiple floors in that

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the Indiana Supreme Court rents from us, so we've got

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a lot of actual we're seeing the opposite of that

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where they're like, we need to get you back in

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the office, and we need to start seeing this happen.

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But what they need to do is take these spaces

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that no one want to wants to be in and

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make them vibrant again. So like what we're doing is

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we're converting some into hotels, We're creating more retail centers there,

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We're building things around it to make it more of

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an attraction area, yeah, versus the anti office, which I

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hate the office myself. It's like, if you will look

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at our office, you doesn't even look like an office.

429
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It's got it's got a gym in, it's got a

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basketball court, it's got golf sim it's like it's like

431
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someone's living room. It's like a it's like a house.

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It's not really an office. So the way you repurpose

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this real estate and make them more of a lifestyle

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type of place where people want to be, that's what

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we're seeing. It's starting to work in this space, in

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these in these buildings that we're buying.

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Speaker 1: All right, Hey, really interesting conversation here. I guess you're

438
00:22:33,079 --> 00:22:35,880
following Warren Buffett. When there's blood in the streets, that's

439
00:22:35,920 --> 00:22:39,279
when you buy. When everyone's happy and thinks things can

440
00:22:39,319 --> 00:22:42,200
never go bad again, that's when you sell. Scott, where

441
00:22:42,240 --> 00:22:43,880
do we find you? How do we connect with you

442
00:22:43,960 --> 00:22:44,519
on the web?

443
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Speaker 2: Yeah, so my our website's invest i nvst dot com.

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00:22:51,119 --> 00:22:54,559
We have principles the financial Freedom. So if you want

445
00:22:54,759 --> 00:22:57,559
to want help on this stuff, what we can do

446
00:22:57,599 --> 00:22:59,279
if you go on the website, we can go through

447
00:22:59,319 --> 00:23:01,920
an assessment, which is really like help you clearly define

448
00:23:01,920 --> 00:23:04,599
your why. We help you build out your virtual game

449
00:23:04,599 --> 00:23:07,319
board where you can weigh and measure financial decisions and

450
00:23:07,400 --> 00:23:09,680
really create rules to your money. So you'll see the

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00:23:09,759 --> 00:23:11,720
six key principles in there. But that's the best way

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00:23:11,759 --> 00:23:14,039
to reach out, and I'd be more happy to sit

453
00:23:14,079 --> 00:23:17,599
down and just go through a quick Hey here's how

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00:23:17,640 --> 00:23:19,319
I see the world, and here's how I think we

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can help in a big way. But that's the easiest

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00:23:21,680 --> 00:23:24,279
way to reach me. And then obviously my personal site

457
00:23:24,359 --> 00:23:27,559
Scott Jared dot com, and that's another way to meet.

458
00:23:27,680 --> 00:23:29,559
If you guys want anything, you want me to help

459
00:23:29,599 --> 00:23:33,079
speak or help motivate employees or whatever. I'm good for

460
00:23:33,119 --> 00:23:34,039
all that stuff as well.

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Speaker 1: All right, well you motivated, Nie, Scott and good. You

462
00:23:38,079 --> 00:23:43,680
know it's your success or your failure. It all happens upstairs, right, Yeah,

463
00:23:43,720 --> 00:23:46,720
that's where it takes place and then it just manifests

464
00:23:46,759 --> 00:23:50,720
itself in the real world. So appreciate you coming on.

465
00:23:51,039 --> 00:23:53,240
You've got a question for Scott myself, Shoot me an

466
00:23:53,279 --> 00:23:56,559
email k el at Carrie LEDs dot com. Link to

467
00:23:56,839 --> 00:23:59,799
Scott's sites in the show notes to this interview on

468
00:24:00,079 --> 00:24:03,960
Financial Survival Network dot com. While you're there, make sure

469
00:24:04,039 --> 00:24:07,359
you sign up for your free newsletter get information like

470
00:24:07,440 --> 00:24:10,039
this and so much more. Scott, appreciate your coming on.

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00:24:10,839 --> 00:24:13,039
Speaker 2: Let's go from survival to thriving. Baby, Let's go