Why Most People Will NEVER Become Rich | Ben Mallah — Transcript

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1. 0:00When you start making money, you ain't
2. 0:01got time to be around losers, people
3. 0:03that are just negative, or people that
4. 0:05are are are going the opposite way. I
5. 0:07have no tolerance.
6. 0:09Whether I'm in business with these
7. 0:10people or doing with them or not. Even I
8. 0:12can't even be around people that just
9. 0:15don't give a
10. 0:17They don't care. They're just going
11. 0:19through life not trying, and they have
12. 0:21the ability to try. That's the one the
13. 0:23part that really pisses me off. I've had
14. 0:25people that I've I've worked for me
15. 0:28that were smart. They They had and they
16. 0:30had me to back them and they still
17. 0:32didn't do it. But they're worried about
18. 0:34stupid like partying and chasing women
19. 0:36or whatever chasing men or whatever the
20. 0:39You know, their their priorities aren't
21. 0:40in order. Their kids ain't living like
22. 0:42they should. They just, you know, I
23. 0:43don't like being around people that
24. 0:44don't They're going through life with
25. 0:46just the bare necessities and not really
26. 0:49trying. You know, and they have the
27. 0:50ability to try. You know, if somebody
28. 0:53doesn't have the ability and they're a
29. 0:54nice person, I can tolerate them. Like
30. 0:56you.
31. 0:57>> How do you balance staying financially
32. 0:59secure while also enjoying life? Is it
33. 1:02much of a calculation in your brain
34. 1:04anymore? Like you budget a certain
35. 1:05amount for certain things.
36. 1:06>> not a wasteful person. You know, it's
37. 1:08just like when when I took my kid this
38. 1:10weekend for his graduation present to
39. 1:13the Bahamas,
40. 1:14you know, I could have stuck us in the
41. 1:15van and made him drive 4 hours to Fort
42. 1:18Lauderdale.
43. 1:19Okay, I could have done that. And I
44. 1:21would have saved whatever.
45. 1:24The
46. 1:25>> few grand
47. 1:26>> five grand, 2,500 there. Okay, I could
48. 1:28have sent the plane back. It don't pay
49. 1:29to keep it there and whatever anyway. I
50. 1:31would have saved the five grand if I
51. 1:33would have made him drive the van. And
52. 1:34he would have done it and he would have
53. 1:35been happy.
54. 1:37You know, but you splurge, but you know,
55. 1:40for me five grand it's not going to make
56. 1:41or break me. You know, it was it made
57. 1:44our life easier, impressed him, you
58. 1:45know, impressed his friends, you know,
59. 1:47made us feel like we're they were
60. 1:48special and it was definitely, you know,
61. 1:50convenient.
62. 1:52You know, so, you know, I don't waste
63. 1:54money. I do things in moderation. You
64. 1:56live your life in moderation. You know,
65. 1:58and then sometimes, you know, I I I
66. 2:00correct myself. I had a half a million
67. 2:02dollar Phantom sitting in the garage.
68. 2:04And when the rates were going up and I'm
69. 2:06saying, "Oh,
70. 2:08what the do I have $500,000 sitting
71. 2:10in the garage? I barely even use the
72. 2:11goddamn car." All right, I went through
73. 2:13the whole car phase, you know? So, I
74. 2:15sold it. 500 grand, you know, sitting in
75. 2:18the bank at that time is 5% even in a
76. 2:20money market account. That's a couple of
77. 2:21grand a month.
78. 2:23I don't know. I just like doing what's
79. 2:25practical and logical. That's where I
80. 2:28try to live my life. Do I live in a $30
81. 2:30million house? Hopefully, it's $30
82. 2:31million. I don't know. The market right
83. 2:33now is going down. But, Florida, you get
84. 2:35a weird sense of buyers. It's different
85. 2:37when you have a high-end house in
86. 2:38Florida.
87. 2:39You know, there's always people with
88. 2:40money who want to come to Florida
89. 2:41because if you homestead it, they can't
90. 2:42take it away from you. The bank can, the
91. 2:45IRS can, but nobody else can.
92. 2:47>> Is there ever a price tag for you that's
93. 2:49just doesn't make any sense or just out
94. 2:52of out of your league where you just
95. 2:54wouldn't even consider it?
96. 2:55>> Like what?
97. 2:56>> Could just be any
98. 2:57>> Like a boat?
99. 2:58>> Sure.
100. 2:59>> I mean, yeah. I would not go out like I
101. 3:01want to buy another boat. I'm selling
102. 3:02mine right now. You need to buy my boat,
103. 3:04you know that.
104. 3:05Um
105. 3:06>> I know you you need those losses. So, if
106. 3:09if I buy it low enough
107. 3:10>> That's not that You keep mixing personal
108. 3:13with with with with taxes.
109. 3:15>> No, I think you could charter it
110. 3:16temporarily and then it's but then it's
111. 3:19now an investment.
112. 3:20Depreciate it and then sell it to me at
113. 3:23a loss a substantial loss.
114. 3:24>> when you buy it, I think that to already
115. 3:26be in a business. We'll talk about that
116. 3:28later.
117. 3:28>> Or you could transfer it to a Montana
118. 3:30LLC for the purposes of chartering.
119. 3:31>> guys can come up with all your do this
120. 3:33and do that and do this. I don't do all
121. 3:34that You know why? Cuz I sleep at
122. 3:36night knowing the IRS will never
123. 3:38with me.
124. 3:40They got nothing to with me on.
125. 3:42So, I don't cross the line or I don't
126. 3:43even get close to the line when it has
127. 3:45to do with taxes. I just play clear-cut.
128. 3:47You know why? Because it's the tax
129. 3:49system that made me who I was today.
130. 3:52If it wasn't for the 1031,
131. 3:54there is no possible way I would have
132. 3:56grown to the level I've grown to. No
133. 3:59way. The the go- the the the tax system
134. 4:02that we have
135. 4:03forced me, pushed me
136. 4:06to never touch the money and roll it
137. 4:08into the next deal and defer the tax. It
138. 4:11forced me to grow.
139. 4:13>> How much do you think you'd have if you
140. 4:15couldn't utilize the 1031?
141. 4:18>> I mean, I know right now
142. 4:20if I was to say I'm going to sell
143. 4:21everything and just pay the tax bill,
144. 4:23I'd probably [clears throat] owe about
145. 4:2450 million bucks. It's fine.
146. 4:27And I'm I'm you know, it's definitely a
147. 4:28possibility I consider sometimes, but
148. 4:30I'm not going to do the whole 50. I'll
149. 4:311031 some. I don't know. I might pay I
150. 4:34mean, I'd sell you know, it's it's a
151. 4:35combination of a lot of scenarios. You
152. 4:37know, you have to ma- when you're
153. 4:38managing a portfolio and you're managing
154. 4:41your wealth, it's a job. And you're
155. 4:43constantly thinking about what's the
156. 4:45right move to make. You got to make the
157. 4:48end of your homework. You got to sit
158. 4:49down. You got to calculate.
159. 4:51You got to calculate the tax
160. 4:52ramifications on it. You got to
161. 4:54calculate the appreciation, recapture
162. 4:56depreciation, cash flow. There's a lot
163. 4:58of things you have to consider before
164. 5:00you decide to buy or sell a property.
165. 5:04>> What do you say to the people who want
166. 5:05to get rid of the 1031 exchange?
167. 5:07>> They're absolutely out of their crazy
168. 5:10mind.
169. 5:11Because the 1031 is what capitalism is
170. 5:15all about.
171. 5:17All right? It pushes you to grow.
172. 5:20Okay? It's making you want to do more.
173. 5:23Do you know by 1031 and it's forcing me
174. 5:25or it's not forcing me, but pushing me
175. 5:27to buy more?
176. 5:29More materials I'm buying. More jobs I'm
177. 5:31creating. More everything. It's just
178. 5:34growth. Okay? And and and it it and
179. 5:37that's how a person can grow on a
180. 5:39personal level.
181. 5:40By it's it's it's a ticket to growth.
182. 5:43>> [clears throat]
183. 5:44>> You know, without the banks and without
184. 5:46the 1031, I would be
185. 5:49a a garbage man today.
186. 5:51>> Do you think that capitalism has gone
187. 5:53too far?
188. 5:55That maybe some people are getting
189. 5:56really, really, really wealthy and other
190. 5:58people are just getting left behind.
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223. 6:57sponsoring this episode. Do you think
224. 7:00that capitalism has gone too far?
225. 7:03That maybe some people are getting
226. 7:04really, really, really wealthy and other
227. 7:06people are just getting left behind.
228. 7:09>> Listen, if people are getting wealthy
229. 7:10legally,
230. 7:13that's what it's all about. They're the
231. 7:15ones putting forth the effort. They're
232. 7:16the ones that are putting out the risk,
233. 7:19you know, they're taking the risk. Uh,
234. 7:21you know, so how can you knock somebody?
235. 7:24You know, listen,
236. 7:25I'm sorry, but I believe because of the
237. 7:27life I've lived that everybody
238. 7:30can try.
239. 7:32They may not succeed as well as I did,
240. 7:34but they can better their life.
241. 7:37Okay, when you can go out
242. 7:39and anybody can take one course and one
243. 7:42test for what? A few hundred bucks and
244. 7:44get a license.
245. 7:46And then get a loan from FHA
246. 7:49and only have to put a half a percent
247. 7:51down because you license or what? 3 and
248. 7:531/2%
249. 7:55You can you know, you can go out and buy
250. 7:56a fourplex
251. 7:58for 3 and 1/2% down.
252. 8:00Right?
253. 8:00>> Mhm.
254. 8:01>> I mean, we have these types of tools in
255. 8:03our country that you know, enable you to
256. 8:06get ahead and you should take advantage
257. 8:08of them.
258. 8:09>> Now, what about the theory that wealth
259. 8:11inequality as it grows to a certain
260. 8:13point can't sustain itself and you do
261. 8:16get just a demise of the entire country
262. 8:19when it becomes so unsustainable between
263. 8:21the rich and poor?
264. 8:22That overall countries do better
265. 8:24>> [clears throat]
266. 8:24>> when it's a little closer together.
267. 8:25>> rich and poor.
268. 8:27So now more people are rich. Is that
269. 8:28what you're saying?
270. 8:29>> More people are rich and and
271. 8:30>> [snorts]
272. 8:30>> more people are better.
273. 8:31>> I've never seen unhappy people being
274. 8:33rich.
275. 8:34>> the rich extremes.
276. 8:35>> cuckoos, but
277. 8:36>> more extreme and the poor more poor,
278. 8:38basically.
279. 8:40>> I don't see
280. 8:41>> such a bigger divide.
281. 8:42>> There's plenty of jobs out there for
282. 8:44people.
283. 8:45You know, it's the individual, I think
284. 8:48that really keeps them down and keeps
285. 8:50them poor.
286. 8:52It's them. They need to train their
287. 8:54brain
288. 8:55to do positive things that are going to
289. 8:58make their life
290. 9:00financially more secure, okay? A lot of
291. 9:03people just don't have the mindset. They
292. 9:06they're worried about stupid
293. 9:08Okay, or they get hooked on drugs, or
294. 9:10they get hooked on gambling, or they get
295. 9:12hooked on alcohol, or they're worried
296. 9:14about keeping up with their Joneses and
297. 9:16their friends. You know, people need to
298. 9:18focus on themselves.
299. 9:21Forget about the rest of the world. Who
300. 9:23cares what the somebody's doing? Who
301. 9:25cares? What are you doing? What do you
302. 9:28got? That's what matters.
303. 9:30You got to get a plan for your life and
304. 9:32everybody's got a different life.
305. 9:34You know, I never went one day to high
306. 9:35school, okay? But, I always knew and if
307. 9:39an opportunity came my way, I'm going to
308. 9:41take it. And that's what I did. I just
309. 9:43kept taking opportunities and and and
310. 9:46and maybe going
311. 9:48a little further than the average person
312. 9:50wanted to go.
313. 9:51>> So, what's holding so many people back?
314. 9:53>> Mentality.
315. 9:54>> And what's causing that mentality, do
316. 9:56you think?
317. 9:56>> I mean, you know, I don't know. I mean,
318. 9:58you know, could it be they're spending
319. 10:00too much time worrying about
320. 10:02you know, Instagrams and all this money
321. 10:04online now? I don't know. A lot of
322. 10:06people online making money. So, there's
323. 10:08two stories two sides to everything.
324. 10:10It's the individual. It's It's their
325. 10:12time management. What are you doing with
326. 10:14your time? Did you accomplish anything
327. 10:17positive today?
328. 10:19Okay? Let me tell you something. I'll
329. 10:21get depressed and pissed at myself
330. 10:23if a whole day goes by and I feel like I
331. 10:26didn't do enough that I could have or
332. 10:28should have or, you know, I didn't do
333. 10:30enough.
334. 10:31Okay? I I need to prove to myself, you
335. 10:34know, I wake up in the morning I'm
336. 10:35thinking about, okay, I got this deal on
337. 10:36contract. Is there anything I need to do
338. 10:38on that deal? Do I need to call the
339. 10:40broker? Do I need to call a lawyer? Do I
340. 10:41need to find out what's going on? Do I
341. 10:43need to get repairs done over here? What
342. 10:46do I need to do?
343. 10:47All right? You got to keep your brain
344. 10:50focused on what you can do and what
345. 10:52accomplishments you can make and then
346. 10:55you move on to the next thing and next
347. 10:56thing you know, you keep attacking
348. 10:58things and keep knocking things out. And
349. 11:00next thing you know, you you you you
350. 11:01know, you then you look for more
351. 11:02opportunities because you you took care
352. 11:04of the stuff you had to do.
353. 11:05>> Where do you think lack of motivation
354. 11:07comes from? Like all of those friends
355. 11:08that you had when you were a kid and you
356. 11:10were growing up poor, you're probably
357. 11:12surrounded by a bunch of other people
358. 11:13that were broke and maybe they went in a
359. 11:15different direction. Did you notice any
360. 11:16strong distinctions
361. 11:18>> with where I grew up was they had the
362. 11:20ability.
363. 11:21They had the intelligence even, even
364. 11:23though they weren't educated. On I grew
365. 11:25up on the streets.
366. 11:27But,
367. 11:29they just didn't had to leave that world
368. 11:31and apply the energy that they had and
369. 11:35the talents they had
370. 11:38you know, from the street, they didn't
371. 11:39have to apply it in a legitimate way.
372. 11:42If they would have take the effort and
373. 11:44been a little more patient and put it
374. 11:46towards something positive and legal
375. 11:49then they all would have been
376. 11:50multi-millionaires.