On this episode, Jason Hartman is joined by Jack Canfield, America’s #1 Success Coach, to talk about Jack’s journey to success as founder and CEO of Chicken Soup for the Soul Enterprises, founder and chairman of The Canfield Training Group, and his latest project, Bestseller Blueprint Training Program. As the beloved originator of the Chicken Soup for the Soul® series, Jack Canfield fostered the emergence of inspirational anthologies as a genre – and watched it grow to a billion dollar market. As the driving force behind the development and delivery of more than 123 million books sold through the Chicken Soup for the Soul® franchise (and over 500 million copies in print worldwide), Jack Canfield is uniquely qualified to talk about success. His proven formula for success reached global acclaim with his most recent National Bestseller, The Success Principles™: How to Get from Where You Are to Where You Want to Be. For his fascinating story, listen at: www.SpeakingofWealth.com.
Jack is a multiple New York Times bestselling author, including titles such as The Power of Focus, The Aladdin Factor, Dare to Win, You’ve Got to Read This Book! And The Key to Living the Law of Attraction. He is the Founder and Chairman of The Canfield Training Group in Santa Barbara, California, which trains entrepreneurs, educators, corporate leaders and motivated individuals how to accelerate the achievement of their personal and professional goals. Jack is also the founder of The Foundation for Self-Esteem in Westlake Village, California, which provides self-esteem resources and trainings to social workers, welfare recipients and human resource professionals. Jack wrote and produced the Goals Program, a video training program for California welfare recipients. To date, the program has been responsible for helping 450,000 people get off welfare.
Jack is a featured teacher in the movie “The Secret”, “The Opus”, “The Cure”, “The Tapping Solution”, and “Yes IS the Destination…No is How You Get There.” He has recently been filmed for inclusion in two more films entitled “Discover the Gift” and “Awakening.”
Jack has also been a featured guest on more than 1,000 radio and television programs in nearly every major market worldwide – many of them on a repeat basis. A sample of these shows include Oprah, Montel, Larry King Live, 20/20, Inside Edition, The Today Show, Fox and Friends, The CBS Evening News, The NBC Nightly News, Eye to Eye, CNN’s Talk Back Live!, PBS, QVC and many others.
Female Voice: Welcome to Creating Wealth with Jason Hartman. During this program Jason is going to tell you some really exciting things that you probably haven’t thought of before and a new slant on investing fresh new approaches to America’s best investment that will enable you to create more wealth and happiness then you ever thought possible. Jason is a genuine, self made multi-millionaire who not only talks the talk but walks the walk.
He’s been a successful investor for twenty years and currently owns properties in eleven states and seventeen cities. This program will help you follow in Jason’s footsteps on the road to financial freedom. You really can do it. And now here’s your host, Jason Hartman with the complete solution for real estate investors.
Jason Hartman: Welcome to the Creating Wealth Show. This is your host Jason Hartman and this is episode number 310, and today as we normally do for a tenth show — or as we always do for a tenth show, we have a special guest that is not directly on the topic of real estate investing or economics per se, but general life enrichment and that is the very famous Chicken Soup for the Soul author, Jack Canfield, co-author of Chicken Soup for the Soul series and a whole bunch of other folks. And Jack just has a great wealth of business experience and personal development experience and he will be with us here in a few minutes after the mono — no well it’s not a monologue portion, after I should say the dialogue portion of the show, because I have investment counselor, Steve with me today to help me with the intro portion and a little dialogue about a few issues, and then we will get to Jack Canfield. Steve welcome, how are you?
Steve: Hey, I’m doing pretty well. I — I was just going to say — I mean even a dialogue with you, isn’t it essentially a monologue?
Jason Hartman: Oh ha, ha, ha.
Steve: Hardy Har. I’m excited to be on the podcast, though with — I mean Jack Canfield, I love his stuff. I’ve read all his books. I — I finished his book the — the Success Principles the other day, so totally in over my head to be on a pod cast with that guy but excited to hear it none the less.
Jason Hartman: He — he’s — he’s great. He’s really — really just a — a — a great thinker, a great marketer and we’ll have him up here in just a — just a few minutes. But first, I’ve been mentioning for a long time and — and when you were on several shows ago we talked about how we were going to do this comparison. And that is part of the game of investing and especially when it comes to income property investing is number one, understanding how to keep score and how to analyze your property so you really know what is going on because with income property unlike other investments, we don’t have to pay for it all up front. With income property, we get to be in the every enviable position of using leverage and paying later, taking advantage of why Popeye or Wimpy or — or — on the Popeye cartoons, Wimpy would always say, I’ll gladly pay you Tuesday for a hamburger today. And you know, he understood the time value of money and the benefits of inflation with that. But with income property, that’s one of the things that really messes investors up because since we don’t pay all up front, and we can pay as we go over three decades, well that involves debt. And debt is something we have to learn how to think about properly. We have to learn how to manage, we have expenses. You walk in and buy a mutual fund, you better put one hundred percent down. You walk in and buy an income property, you could put twenty percent down or even less in some cases, and with that it really messes with peoples’ heads Steve, because it — it makes them think in a very fuzzy, foggy way when things go wrong, and when it’s not all going right as well as expected. And so you did a great analysis of four different case studies on the same property. Tell us about these.
Steve: Yeah, I thought it was important to bring that into perspective because whenever there’s a challenge with an investment property I like it that you say, well compared to what? Right, you know what — what else are you comparing this against and even in the worst case scenario on these performers that I drew up, all on one subject property in Memphis, Tennessee, I just use that as my guinea pig, you’re still doing better than the bank. They — I was actually just on the phone just now, and in a — another case, yet again in America in a bankruptcy, this is the city of Stockton in California, the bondholders in the bankruptcy were put in the back of the line and CalPERS, the pension was put in the front of the line.
Jason Hartman: Oh, let me guess. That’s politically motivated because Jerry Brown gets all sorts of union support from those CalPERS employees. What — it’s — it’s just such a scam.
Steve: I know, it’s shocking and then you know my sarcasm meter is on there, but — so, it — that’s what I’m comparing it to here, everybody is oh, I can go buy bonds, I can do this and — and it’s secure and I get my two percent. Well, you get your two percent, which gets smoked by inflation, but that’s assuming that some crony judge doesn’t scoot the union ahead of you in the event of a bankruptcy.
Jason Hartman: Yeah, absolutely. Just like — just like what happened in GM and just like what’s happening in Stockton, California with their — that’s the municipal bankruptcy of Stockton. You know, just so people know what we’re referring to and the same thing will probably happen in Detroit with their upcoming bankruptcy and it’s — it’s ridiculous.
Steve: And it’s a horrifying precedent.
Jason Hartman: It — it really is. It means the rule of law is out the window. And again, that’s — kind of goes back to the low hanging fruit argument that we’ve been having on the last several episodes, Steve where I’ve mentioned that governments like in Cyprus always go after the low hanging fruit. And you know, when you’ve got a bunch of properties and they’re all different and fragmented and they’re in different cities, different states, they have different mortgage holders that have liens on them. You’ve got different tenants, different property — you know it’s just so hard for them to attack that, whereas if you own bonds and there are maybe billions and billions of dollars worth of outstanding bonds against Stockton or against GM, they can just — executive fiat, they can just make a law or administrative fiat, in the judge’s case, an activist judge can just say, hey sorry bondholders. Screw you, you’re out of luck, you’re not my political cronies, you’re not my supporters. We’re going to rule against the bondholders. The rule of law goes out the window and too bad, so sad.
Steve: Yep, yep and like you said on the podcast with the — the former investment counselor from Burma, the real estate there and his family, it — it survived the — the business revenue did not in this case but the real estate survived an all out communist revolution. So, that’s pretty secure and that’s pretty good if you can survive a communist revolution.
Jason Hartman: Yeah, I mean — I mean look folks, you know the government can do anything. The government can take away your income properties. They can take away your bank account. They can do anything, but when you follow my plan, remember my ten commandments of successful investing, one of them is thou shall diversify, and when you diversify across jurisdictions, it gets really tough to do that. And still, it’s really never been done in the U.S. knock on wood, but who knows what will happen in the future. And you know you can argue eminent domain, things like that, but when that happens government has to pay for it. If they didn’t want to go the free way and they want to condemn your house or your apartment building that you own that’s along that free way corridor, the government can do it but you have recourse. They have to pay you for your property and it’s very seldom that they actually do this. I mean — but you know I’m just sort of making — build an argument against my case of my favorite investment, but they can do anything. The — the point is they always go for the low hanging fruit first and when they have to cross municipal boundaries, state boundaries, it’s really tough to do that.
Steve: It really is and I — I always tell clients that have kind of that dooms day mentality of what if the government just comes in and nationalize everything, like Ali Bolshevik did in — in the Soviet Union. You’ve got bigger problems —
Jason Hartman: Yeah.
Steve: — than your property [inaudible].
Jason Hartman: Yeah, that’s for sure. That’s for sure. Okay. So, let’s talk about these four different cases. They’re really three cases and we’ll call it best case modified, will be the fourth case, okay.
Steve: Well yeah, and we had to do that because I drew there performers up probably six weeks ago, and I’ve seen so much movement in the market since then that —
Jason Hartman: Positive movement.
Steve: Yeah, even — even my best case scenario was not good enough.
Jason Hartman: Yeah, yeah. Well, that’s really interesting. Okay. So — so let’s first talk about the mid case and this is the case you’d find on our website at Jasonhartman.com in the properties section. It’s just the middle of the road, normal performer. Again, we live in — what our local market specialist can put on these performers, because we want them to be conservative. My philosophy has always been promise less, deliver more. Now of course, I’m not in control of this folks nobody is, things can go array, they do not always work out perfectly.
I did an interview on crowd funding, by the way Steve. You’d be interested in this, just last Friday — and we’ll publish this interview soon. It was with one of our clients, Chase who was a regular podcast listener. He’s purchased nine properties from us. He is a CPA who lives in Austin, Texas and he’s been out to at least one of our events or one of our Meet the Masters events when we had them back in Costa Mesa, California and I — I said — I said, right on the air I said Chase, how are your properties doing? And he says well, out of the nine I purchased through your network, eight are doing great. I just love them. One, it’s not so good and I thought, you know what hey, that’s an honest answer and one of them is the problem child. I — I mean, try having nine kids and having all of them be great.
Steve: Yeah, right. I’d love that ratio.
Jason Hartman: Yeah. And you have two kids, right Steve?
Steve: I do.
Jason Hartman: Yeah so — so, it’s that way in anything folks. What you’re doing is you’re averaging your cross for portfolio and you know that — that ninth kid, the one’s that not working so well for Chase, it may well turn around. Usually they do. Usually, the next ten and around will be the great one and — and everything will go well. So the mid-case scenario here, tell us about that one.
Steve: The mid-case scenario — these performers are highly sensitive to monthly income and expenses. You could adjust monthly income or monthly expense by a few dollars and it would swing the returns a lot more heavily than if you raised the price by say, five thousand dollars of — of the property. So, this is assuming that our appreciation rate is three percent, that our vacancy rate is eight percent, which is one month a year, that the management fee is nine percent, which is right in the middle of what we get charged across all the markets, and that the maintenance is five percent. This is a property built in 1983 in Memphis, Tennessee. It’s a good looking brick property with a two car garage. It’s two thousand three hundred thirty one square feet which is —
Jason Hartman: And the forty two dollars per square foot. So again, still below the cost of construction, which is extremely rare, but you can do that now days. We — we have only a few of those remaining.
Steve: Yeah. This is an exception. I mean it’s — it’s — it’s big, you know. Typically, houses are more in the one thousand two hundred to one thousand six hundred dollar range. So that’s why this is so cheap on the — on the cost per square foot. But the — the rent is eleven ninety five a month so in this mid-range scenario, you’re getting a twelve percent cash-on-cash return —
Jason Hartman: Which — which equates to — now, this is all on the performers — it’s all based on projections here, but it equates to twenty nine hundred and ten dollars annually, okay —
Steve: That’s right.
Jason Hartman: — and — and — and just for that cash-on-cash Steve, let’s — just dive into that a little bit more.
Steve: Okay.
Jason Hartman: It took twenty three thousand three hundred forty dollars roughly, to acquire this property. That was the acquisition cost with your down payment and closing costs. Now, you closing cost can vary depending on what type of financing you get, what kind of rate you get on your financing, because there’s always — points are just pre-paid. And for instance, you know you can buy down your rate, you can buy your rate up by not paying points up front. So that can vary too, but the way we run the performer, twenty three thousand three hundred forty to buy it and then your income is projected at twenty nine ten per year, almost three thousand per year. So, that equates to — like you said, a twelve percent cash-on-cash return. So if the property goes down in value to zero, and you get that same income out of the property every year based on the amount of money you put into it, twenty three thousand three hundred, then your cash-on-cash will be twelve percent, okay.
Steve: Pretty — pretty simple, and that’s a great return, you know, it’s — and there are no CalPERS can’t jump you I line, you know —
Jason Hartman: Yeah.
Steve: — to jeopardize that twelve percent. So, we like that as a good conservative — good conservative guess on the — well not a guess, it’s educated. You know, we’ve got leasing fees, maintenance — I saw a performer from a — a company that sells properties, the other day and they were saying hey, you have X amount of return. It was really high. They — but it was very irresponsible. They didn’t have any vacancy. They didn’t have any maintenance — they didn’t have any leasing fees. These are the realities of the business that you have to take into account and this performer does that.
Jason Hartman: Yeah, my teacher back at Century 21, when I was nineteen years old and I was taking their investment series for the — the CCIM, the commercial investment management course and you know, I was learning how to analyze investments and do all that stuff. I never went into that heavy duty commercial side of the business but it was really educational for me to take all that stuff at such a young age. And the instructor was a guy named Dennis McKenzie. He was just a great instructor. I mean, the guy was just on it and he was entertaining and funny too, and he wrote a bunch of the text books for California real estate law and finance and all that kind of stuff. Anyway, he used to always call that example you just gave of where they didn’t put a vacancy rate in, they didn’t put any maintenance in, so it looked so much better than the reality’s ever going to be. He used to call it the hokey broker goes to jail scenario. Hokey broker goes to jail, which now days you know, the hokey broker probably gets a bail out just like they do on Wall Street but — anyway it’s an example, so — okay, what else about this one?
Steve: Well that’s essentially it you’re getting a thirty one percent total return —
Jason Hartman: Wow!
Steve: — on the property you know, that’s taking into account, your appreciation over time, principle pay down, you know things like that. So —
Jason Hartman: Okay. Okay so now we’re looking at the same property. The rent hasn’t changed. The only thing we’re changing is the assumptions. Let’s do a best case scenario, then I want to go to the worst case, then I want to go to like, best plus, okay.
Steve: Okay, you got it.
Jason Hartman: We’ll call it best plus.
Steve: Best case scenario — let’s move the real estate appreciation rate to six percent.
Jason Hartman: Now, let me say something about that. It depends what study you look at, first of all because it depends on the timeframe and putting in the last few years, which have been really bad, but then there have been some great years, but generally speaking folks, the studies you’ll find out there will show that nationally speaking, real estate appreciation is around six percent annually. So, one study could say a little lower, another study will say a little higher. I saw one that said six point seven percent, but nationally when you sort of just look at it all, give or take, it’s somewhere around the six percent range. So again, is this really the ques — it begs the question Steve, is this a best case scenario? Well, it probably is when you look at the vacancy rate, which is kind of low.
Steve: Yeah, I’ve got a two percent vacancy rate. So, you’re assuming this is some kind of a multi-year tenant.
Jason Hartman: Right. Yeah, yeah.
Steve: They’re renewing over and over again. They’re — they’re great with their rents, so you’ve got a really low vacancy rate, and some of the markets and some of the properties, we actually get that.
Jason Hartman: Oh, sure you do. Now, let — let me — let me address that. These performers are just a first year projection, okay. So, if you don’t raise your rent, ideally as a landlord right now you want to raise your rent by about four percent annually, but say you’re a softie, say you’re not going to win the landlord of the year award except from your tenant who’s going to love you, but you’re not going to win it from me because I want you to get more money, okay. But — but say you’re — you’re — you’re a softie and you don’t raise the rent, you know you don’t want to deal with the tenant moving. I mean of course this is all really your property manager who deals with this, not you, and none of these properties are self managed. They’re all managed by professionals and so you don’t raise your rent. Well if you don’t raise your rent, your tenant is probably going to stick around and if you don’t raise your rent the second year or the third year or the fourth year, by year four your rent is looking really cheap by then because you haven’t raised it at all. You’re still only charging eleven ninety five, which was the initial rent the first year.
So, I’ve had a — a tenant stay — the longest I’ve ever had a tenant stay was nine years at a property. My mom, you heard her on the show talking about it. She has a tenant still staying in her — one of her properties since 1989. I believe it was 1989. It’s — it’s recorded. It’s on a prior episode. You can just search Jason’s mom is back. Okay, that’s the title of the episode and you can hear what she says. But I think it was 1989 and her tenant hasn’t left. She’s been raising the rent every year. Okay. My mom’s a — she’s a fiend for rent increases. She’s not going to win the landlord of the year award from anybody but me. She raises the rent and two percent vacancy, probably not that unrealistic really and only six percent appreciations. What else can you change on here, anything?
Steve: We’ve got our maintenance at three percent.
Jason Hartman: Okay, three percent —
Steve: So —
Jason Hartman: You know. —
Steve: — yeah, it’s — that’s not that unrealistic either. You know, you’ve got a — a good solid built property where the mechanicals were replaced in the rehab. The roof had a long life span and the tenants weren’t hard on the property. So you know, there’s — there’s not much that’s going into the property from a maintenance standpoint. So, when you do this the return gets pretty fun. This also assumes because of a multi-year tenant and you bought the property leased, we’re not dealing with any leasing fees here because they’re just — there simply haven’t been any.
Jason Hartman: They’re staying?
Steven: Yeah, they’re staying. Your cash-on-cash return goes up to twenty one percent and your total return on investment is fifty two percent.
Jason Hartman: Wow!
Steve: Yeah.
Jason Hartman: Unbelievable. Now — okay, hokey broker goes to jail. No not really. I mean, I don’t see anything in here that would indicate that you’re really blowing this return up and making it look ridiculous. I mean, this could — this could totally happen and it already has happened to some of our clients and it’s happened to me.
Steve: Right.
Jason Hartman: So, it — yeah, not unrealistic. You know what I’m going to change my mind. Since we’re on the best case scenario, let’s go best plus.
Steve: Best plus.
Jason Hartman: And then we’re going to go to worst case, okay.
Steve: Best plus could be hokey broker goes to jail but I don’t think it is.
Jason Hartman: I don’t know.
Steve: So, this is obviously in a very aggressive market, right? We don’t have any vacancy. The thing was leased before you bought it and you’re getting one of those tenants that you’re talking about. They stay for seven years or — or thirty years right, a long long time. In fact, I helped a neighbor here I have in Utah, she had a rental property a couple of miles away and the tenant stayed for six years and I had to go meet the painter for her because it’s the first time she had to paint.
Jason Hartman : Right, right, right. And — and you know what’s interesting about it though, is that — that story of the multi-year tenant gets much more realistic after a few years with no rent increases because this performer is based on no rent increases.
Steve: That’s right.
Jason Hartman: Your — you — you have left the rent the same so you’re literally incentivising this tenant to stay and you’re also incentivising the tenant to do their own repair work or pay for the repair work out or their own pocket, because they’ve got such a good deal that they’re not likely to move. Now granted, they might move because their situation changes, but economically you know as far as the deal they have from you the owner, they’re not going to be incentivised to move because this rent has not increased at all.
Steve: Exactly, and that’s why this isn’t hokey broker goes to jail. We’re not being high in the sky here. Now, we have a maintenance percentage of three percent still. I didn’t get crazy on that. I — I could have gotten much crazier. I — I like to laugh, one or our other investment counselors, Sarah, tells the story about a new construction property she bought in Houston in 2006 and she’s put a grand total of sic hundred dollars into it since that.
Jason Hartman: Right. And — and — and now it’s 2013, so seven years, yeah.
Steve: Yeah. And she’s had one tenant term, is all.
Jason Hartman: Yeah.
Steve: So, this is a very real scenario that could happen. What I did jack up, and this is what has really changed. Since I first reworked these performers, our appreciation rate at ten percent and —
Jason Hartman: So, ten percent — let’s talk about that for a minute. In Phoenix during the boom time, and I guess that was 2005, was probably the year I’m quoting here, depending on whether you were looking at the calendar year or a trailing twelve months, and forgive me I don’t remember the exact dates, but I remember one study cited appreciation of forty nine percent in one year and another one sited appreciation of fifty five percent, double nickels, in one year.
Now Memphis doesn’t have the juice Phoenix does. Phoenix has got more juice than Memphis for sure, so maybe this isn’t — this example happens to be in Memphis but it could be in any one of our markets where you could see ten percent appreciation. I mean look folks, if inflation is ten percent, which I think it already is, and as we continue to see money just being printed and created out of thin air, hitting the stock market and the housing market, we see another bubble forming.
Now, does this mean it’s a bubble that is going to burst in terms of everything depreciating? Not really if it’s inflation induced bubble because an inflation induced bubble just means everything around you gets more expensive. It’s not like the house price is going up any more than the price of gasoline or the price of food at the grocery store, certainly not more than the price of college tuition or a — a cup of coffee. So, this is not real appreciation, it’s only nominal appreciation and just look at the — the last episode where we talked about the inflation induced debt destruction aspect in that very handy chart that we’re going to post to Jasonhartman.com, that we’ve been improving in the past few days, but it will be up there. If it’s — if it’s not — I — I don’t think it’s up already, but it will be up there soon.
So again, this may just be keeping pace with inflation. It may not be real appreciation but still your return is there because you’ve leveraged this in a five to one leverage ratio.
Steve: Right, exactly. And they could be — you know, they could try to blow up a bubble again, there’s some signs of it, but it’s not — it’s not crazy. I mean you know there’s no ninja mortgages happening. They’re just standing for a no income, no job or assets.
Jason Hartman : Right, right. And let me just define a little more bubble Steve —
Steve: Yeah.
Jason Hartman: — and this way you might have something to put on this, but a bubble to me means, the house prices far exceeded the rate of actual inflation. It doesn’t mean that if inflation is high and houses appreciate with the rate of inflation, that to me is not a bubble.
Steve: Agreed.
Jason Hartman: Is that a fair statement?
Steve: Yeah, that’s — that’s a fair — fair statement and we could adopt the — the Rockefeller quote of you know, he knew it was time to sell a stock when his shoe shine boy was giving him stock tips. So, it — when you’re at a cocktail party and everyone’s talking about how they — or you know, flipping real estate that’s bubbliest to me.
Jason Hartman: Yeah, yeah. When you see really low, talented people who aren’t very smart and aren’t very ambitious, making a lot of money in any market, that’s a sign of a bubble.
Steve: Yes, when — when the ninjas are — are flipping and speculating, that’s a problem. So you know, this — we’re calling for a ten percent in this best case plus performer. Just to give you an idea, our Austin local market specialist emailed me a study from the title company that he uses and they have recorded a fourteen percent increase in asking prices in the Austin Metro areas since this time, last year. So, that’s already happening and Austin is, you know it’s a more aggressive growth market than most of our markets but it’s not crazy, and that’s actually happening and that’s — that’s with inflation. It’s not that crazy ninja environment that we’re talking about.
Jason Hartman: Okay so, what happens here to this deal, the same house, cash-on-cash return is now twenty percent annually, twenty percent, a total appreciation — or a total overall return on investment is sixty seven percent, almost seventy percent annually. I — I really don’t like — those words came out of my mouth because of this hokey broker goes to jail thing, but you know it’s just a performer folks. Maybe it won’t happen. I don’t know. We’re just running the numbers here. And this is why I want everybody listening to go subscribe to the property tracker software, so they can do their own analysis. They can change the numbers themselves and play with them and see how it affects overall return and cash-on-cash return and a cap rate and — and things like this, okay.
Steve: Yeah, and that — that cash-on-cash should be twenty one percent like the best. There is — I had a hiccup in one of the assumptions, but it should be twenty one percent because I didn’t change the income and expenses. It just mounded a little differently but yeah, sixty seven — sixty seven percent, that all comes obviously with the appreciation rate. That’s where — where we’re getting that from and in — in some of the markets that we’re in right now Jason, I’ve seen them make crazy turn around within the last ninety days. Much more competitive, much more difficult to get properties. I had a client wanting a property in Memphis, and — and I tracked it. I — I tracked what the average cash-on-cash returns are for the different property tiers in each of these — each of these markets so that when I have a client looking and I see one that’s above a certain percentage, I can say hey, this is a fire drill. This is an exceptional deal. You need to do this deal quickly.
Jason Hartman: Yeah, well that’s your hedge fund — one of your hedge fund clients, right?
Steve: It’s another client. The fund has their own criteria and yeah, they want to accept single deals too, but this guy, he — he’d been looking for a while. I found a fourteen percent cash-on-cash deal on — on a tier one property in Memphis. That’s very good. You know, that’s something that if you just stop to think about it, say I’m going to come back to this in forty eight hours, there’s probably going to be nothing to come back to. It’s going to be gone.
Jason Hartman: There’s going to be seven offers on the property already. Okay, so let’s look at the worst case. Let’s get really gloomy here and see how bad it can get.
Steven: The Marc Farber case.
Jason Hartman: Yeah. Doom and gloom, yes.
Steve: Yes. The — all right, here we go, brought to you by Jim Rogers, the lowest — the worst case scenario. So, we took the assumptions — we have a zero percent appreciation rate on this that’s not appreciating at all. All right.
Jason Hartman: Now, what’s — now what’s interesting about that is it’s not appreciating and it’s not even having regression to replacement cost that we — another one of our trademark raises, because here you purchased this, remember for only forty two dollars per square foot, so, below the cost of construction.
Steve: That’s right. That’s right. So, the appreciation rate is zero. The vacancy rate is twenty percent. So, this thing is running three months or so, maybe a little more out of the year, vacant.
Jason Hartman: This is not good.
Steven: No, no. Nobody wants to hear that, although I did hear one of the Wall Street institutions is buying houses has about a fifty percent vacancy or —
Jason Hartman: Well, they don’t know how to manage anything.
Steve: Yeah, that’s right. Um, our management fee is unchanged, it’s nine percent and then our maintenance went up to fifteen percent. So, you bought a property in a bad area with a bad rehab job. You know, there’s — the tenants are hard on it. They’re moving in and out of there —
Jason Hartman: They’re what? What tenants? They’re not even there yet.
Steve: That’s right, that’s right. So this —
Jason Hartman: It took us — it took us – it took us three months to get a tenant and then when they moved in, they moved out pretty quick and they thrashed the place and you know —
Steve: Yep.
Jason Hartman: — and — and — and it hasn’t gone up in value through appreciation, but not even that, it hasn’t even regressed to replacement cost. It’s just sitting there at forty two dollars per square foot when replacement cost is probably about seventy — seventy five buck a foot in this market.
Steve: That’s correct, that’s correct. So, they — it’s getting thrashed. Every month there’s some goofy maintenance issue for — for you to deal with, replace the water heater, we got to do carpet in the living room, all the tramping in and out of there by the tenants. So, this takes you to a negative four percent cash-on-cash return.
Jason Hartman: Ouch. And the cap rate here, just to mention, cap rate is only four point two percent, which is about equal to most of these big commercial deals that I talk about on the show from time to time.
Steve: That’s right.
Jason Hartman: If you want to buy a — if you want to buy a 7-11 store or a Dollar General or a Big Box shopping center, any sort of like institutional property or a bank property where you lease the property to a bank. I mean a four point two percent cap rate, boy that’s completely acceptable all over California, pretty much.
Steve That’s right.
Jason Hartman: So again, not that bad is it, you know.
Steve: It’s not that bad at all. The bondholders in — the bondholders in Stockton would be ecstatic right now.
Jason Hartman: Yeah, yeah. So the question to always ask is, compared to what?
Steve: That’s right. And so this — this gives you a total return of one percent and then as your — with your principle date and such, but with your tax savings at the end of the day that because of the depreciation, you actually made five percent.
Jason Hartman: So — okay. So, let’s just check this out. You can get point two percent in the bank, so this is literally five times better or five hundred percent better than leaving your money in the bank.
Steve: That’s correct.
Jason Hartman: Or you would get point two– at least you’re getting one measly percent here and after taxes — and of course you know everybody’s tax situation’s a little different, disclaimer, we’re not qualified to give tax or legal advice, blah, blah, blah. Okay so here five percent, if you can take the deductions, so there it’s not so bad.
Steve: I — I know exactly, because most people Jason, would prefer to put all their money into some mutual fund because what it really does is it gives them the management buffer. They have the CEOs and the presidents of these companies — that make up the mutual fund, and they’re —
Jason Hartman: You mean the people that are skimming all the money off the top?
Steve: Yeah, these skimmers, correct. And — and they’re the ones that are firing people, dealing with the vandalism, dealing with the inventory shortage and all the day-to-day drama that comes from running a business, and so you made you know one percent because they took all that risk for you or all that hassle away. Or you could have some of it with the tenant that’s moving in and out every four months and still make five percent.
Jason Hartman: Right, right. Yeah, absolutely. Well Steve. This was a great comparison. Thank you for bringing it up and doing these performers because I — you know folks, a lot of people are winning when they think they’re losing only because they don’t know how to keep score properly. You’ve got to use the software. You’ve got to know how to calculate your returns on these investments.
I mean, here we’ve talked about anything from five percent as a worst case scenario to sixty seven percent as a best case plus scenario, and it’s possible it could go even better than that. The old saying, it’s never over until the fat lady sings. Folks you just got to know how to keep score and look at the long term picture. So, I think it’s good.
Steve: That’s exactly right.
Jason Hartman: All right.
Steve: Exactly right.
Jason Hartman: Hey Steve, we’ve got to get to another subject because we’ve got to get to Jack Canfield’s interview here, but it’s — it’s April 1st and yesterday was Easter and I’ve got a target date coming up fast. You know, I’ve been talking to you about this, but many people have asked me over the years, you know Jason, your financially independent, why do you keep working? Why don’t you retire? And I like to work. I love what I do, okay, I — I really love this. It’s like a mission for me, but I have decided to try retirement and I — I — I hope I can pull it off for at least a year, okay. What do you think Steve, do you think I can do it?
Steve: What?
Jason Hartman: Yeah. Well yeah, you — you know, you know, I’ve been talking to you a little bit about this. So —
Steve: I just thought you were full of it.
Jason Hartman: Well, no. June 1st is my target date, okay so that’s only two months away. So, I figured it was important to kind of talk about and you know, like we’ve talked about I want you to host the show so the podcast will of course continue, company will continue. I’ll be a guest on the show once in a while and come back, kind of like you know on one real popular radio show — a lot of my holistic survival show listeners listen to it coast to coast, a.m., and with George Noory, but it used to be with Art Bell and he retired but he comes back on the show once in a while and — as a guest appearance and stuff like that. But I just kind of — I — I — I’ve just been kind of thinking about that lately. I — I got to not work all the time. I got to concentrate on finding a wife and starting a family and doing some other things in life. So, I — I — I figured since two months left — two months from today to June 1st, that’s kind of my target date here, and it gets hot in Phoenix over the summer. I want to get out of here. I want to go travel. I want to go to Europe this summer and — and do some stuff like that. So, you know I thought it was worth bringing it up on this show, also because it’s the tenth show.
Steve: Well I mean we’re going to miss you. I mean I guess — you know make sure you’ve got the skype for wherever you’re headed you know so we can have you as a — a guest on the shows, you know. Three hundred and ten shows, I guess that’s the life span of a — of a podcast host.
Jason Hartman: No it’s not. Don’t even say that. Don’t even talk like that. Oh gosh. No, this show — I — I hope to be back on show number — show number 360 and then back again on — on show number 400 and this show’s going to go on forever. We’re going to have episodes up into the thousands, okay. So, that’s I’ve been having you know, you and Michael and Sarah on the show so much, and we’ll have Dave and Ari on the show too, and just kind of getting you guys a little more into this and between the guests and all the shows I’ve recorded, just the recorded shows with guests. We’ve got a lot of episodes left. So, this will go on forever, and I hope you will do a great job continuing the legacy of — of the show and — and all the other great work we do at the company. And you know, finding great properties and all of that stuff.
Steve: Well, we will do the podcasts, you know the justice it deserves. We’ll do a great job because you’ve got us off to a great start and we’ve got a retirement party to plan.
Jason Hartman: Well, yeah. We’ll — we’ll — we’ll see — now — now people are — it’s funny because my friends in California are taking bets on when I’ll move back to California, and I don’t think that’s going to happen. I don’t see that happening any time soon. I — I like Arizona quite well. Are you going to — also taking bets on when I’ll come out of retirement?
Steve: Yeah, I’ve already got it out on Facebook.
Jason Hartman: Okay. And you know are you doing brackets and all that kind of stuff?
Steve: Yeah, we’re going to do brackets, and — there’s going to be a big pot at the end of the — the rainbow here.
Jason Hartman: Yeah, okay. Well, I just want to participate in some of the winnings if — if I do come back out of retirement soon or — or whenever, you know.
Steve: Sorry pal, you’re retired. You’re out of the game.
Jason Hartman: I reserve the right to come back at any time, but over the next two months, here from April 1st on up to June 1st, we’ll be talking on — on future episodes about who’s going to be doing what at the company and who’s going to be responsible for which parts, and continuing our strong research arm. Maybe we’ll even get some of our researchers on the show to kind of introduce them to the listeners, and show them what they do and some of the bloging that they do and so forth like that to kind of — to — to bring the listeners really up — up to speed on all the inner workings of the company and help them know who’s who and who’s doing what.
Stave: That’s — well, that sounds good to me. It’ll be a great insight into the inner workings for everybody.
Jason Hartman: All right, and folks I hope to see you in Memphis at the end of the month. What is that, April 26th, 7th and 8th I believe is our time, is that correct, Steve? I have not looked at my calendar.
Steve: I want to say it’s sooner than that.
Jason Hartman: No, it’s not sooner than that. Wait sorry. I’m on the wrong month, here.
Steve: Yeah, I think it’s sooner, but I could be wrong.
Jason Hartman: No, we are April 26th. I was right, that’s the date of our tour.
Steve: Yeah, you’re right.
Jason Hartman: So it’s April 26th, 7th and 8th in Memphis, Tennessee. Be sure to register. Now by the way, the price is going up. I want to give you fair warning because the early bird price is going to go up to the next level, due to the registration. So, let’s see — let’s say that that’ll be April 4th, that there’s going to be a price increase so be sure to register before April 4th. It’ll still be a good deal after, but you know you get the lowest price before then.
And the hotel is putting pressure on me to end the room block and raise the room rate to one fifty nine per night. So, be sure to get your hotel registered for the Memphis property tour and join me there. It’ll be a lot of fun. So that’ll be April 26th, 7th and 8th and I’ll look forward to seeing you in Memphis, and Steve, anything else before we get to Jack Canfield?
Steve: That’s going to do it. Happy retirement, Jason.
Jason Hartman: All right, thanks again and here is Jack Canfield. We’ll be back with him in just a moment.
Female Voice: Now, you can get Jason’s Creating Wealth in Today’s Economy Home Study Course. All the knowledge and education revealed in a nine hour day of the Creating Wealth Boot Camp, created in a home study course for you to dive into at your convenience. For more details, go to jasonhartman.com.
Jason Hartman: It’s with great pleasure that I welcome Jack Canfield. I’m sure you’ve heard his name. He is the originator of the Chicken Soup for the Soul series, which Time Magazine called the publishing phenomenon of the decade. He is an author of several works including the Success Principles. He’s a widely recognized leader in peak performance strategies, a speaker, a coach and an expert on maximizing your potential. His latest project, his best seller Blue Print Training Program co-created with Steve Harrison and he’s of course effectually known as America’s number one success coach. Jack, how are you today?
Jack Canfield: I’m fine, Jason.
Jason Hartman: Well good, it’s a pleasure to have you on the show, and I always like to ask just to get a sense of geography, you were probably in Santa Barbara today, right?
Jack Canfield: I am. I’m in my home office in sunny Santa Barbara, California.
Jason Hartman: Fantastic. Well it’s great to have you on the show. Your career spans a long time and really some great successes and maybe just for a couple of minutes real quickly, give the listeners a little bit of your background, if you would.
Jack Canfield: Well, I started out in West Virginia. I was a normal kid, played sports and just was, you know a typical kid in high school. I was fortunate enough to get a scholarship to go to Harvard University, I think more for my athletic progress than my brilliance, but I enjoyed my four years and I majored in Chinese history, which I often jokingly say its prepared me to do the work I do today. So —
Jason Hartman: Are you — are you using your degree?
Jack Canfield: Well, you know what happened, my senior year I had an elective class and someone said there was this really cool course called [inaudible]. So for social relations, ten, and I thought, I’m going to take it. It was an easy A, everyone said, so I took it and I fell in love with psychology because it was about all about human interaction and — and — and communication and feelings and motivation and I just — I loved it. And I thought, wow, why didn’t I find this sooner? So I ended up going to graduate school in education because I couldn’t get into psychology with no under grad psyche classes, and I taught history for one year and I was in an all black intercity school. And I became more interested in why kids weren’t motivated then I was in teaching history. And so I started to explore that and I ran across a man named W. Clemens Stone, who was a friend of Napoleon Hill, who wrote Thick and Grow Rich, and they wrote a book together called the Success to Something That Never Fails. And so I ended up taking a course in his foundation and because I was working in the intercity and no one else was there, they were all doing some urban school training. I ended up getting a job there in the next year and I ran around the mid-west for about ten years running self esteem and peak performance training for educators. And then one day one day this educator said, you know my husband’s company needs what you’re teaching us and I said, well I’ve never worked in a company except as a floor sweeper at a General Electric plant between college and graduate school to make money for graduate school. And she said they’re just big kids in suits. Now go talk to them. So, I went over and I did a self esteem seminar for them focusing on success and so forth and they loved it.
And then the recession hit in ’93 and what happened there was that all the school money dried up so we really refocused all our efforts on public seminars and corporate training. So, for the last twenty years, that’s mostly what I’ve been doing and right about that same time, I was giving talks and I was — I noticed when I was teaching kids, that they were always more interested in stories than they were in facts.
If I tell a story about myself, or Martin Luther King or Boskov Slave that became the Ambassador to Jamaica, they were on the edge of their seats. And so I began to realize, I could motivate kids by sharing stories of people like them who had made it out of the ghetto. They become successful and so I started collecting them. And as I started teaching teachers, I would tell stories about my success with kids and they would wake up. And then I started collecting stories, in general, that illustrated people overcoming obstacles. So, that turned into the first Chicken Soup of the Soul book when somebody said, all those stories you told us today, are they in the book anywhere? My daughter needs to read them, and a week later somebody would say, my company needs to hear those stories.
And so, I put the first — I had seventy stories so they put in the book and then Mark Victor Hanson came along right when I was about to finish it. We were having breakfast and he asked me what I was doing, and I told him I was doing this book of inspirational stories. It kind of gives you goose bumps you get your standing ovations when you’re a speaker and he said, I want to do it with you. I said Marc, that’s like telling you know, a novelist you want to finish the book with someone when they’re eight tenths done. Why would I let you do that? He said, well you only have seventy stories and I have thirty more that are really good, one hundred is a magical number, and I’m a really good marketer. And I went, okay.
So, he came up with thirty stories and we did the book and at the end of the book, and here’s something that was just, I don’t know, fate I guess, but books are published in folios. Like they — they fold like sixteen pages over and then they — God only knows we had three blank pages at the back of the book. The publisher said, would you like to put something there, and we said sure, why don’t we just say the other story, send it in, maybe we’ll do another sequel. Well, we started getting five hundred stories a day in the mail, Jason and literally it was an avalanche. Everybody had a story to tell. Now they weren’t all good, but over the years we’ve now done over two hundred twenty books. We have five hundred million copies of print in forty seven languages and all be — and its all been from that page in the back of that book.
Jason Hartman: That’s amazing. So, let’s — let’s just get a — a couple of questions for you.
Jack Canfield: Sure.
Jason Hartman: You said that you were very athletic in — in school. What sport?
Jack Canfield: I played football and track and swimming and then I went off to Harvard and I played rugby.
Jason Hartman: Okay, fantastic. And what year was the first Chicken Soul book published?
Jack Canfield: 1993, we actually finished the book in late ’91. It took us a year. We had one hundred forty four rejections before we got the book published.
Jason Hartman: I — I thought — you know, I remember hearing that from Marc, but maybe that was just a part of it. I thought that was only like thirty eight rejections. One hundred forty four — I —
Jack Canfield: One hundred and forty-for, I — I still have all the rejection letters in a — in a file. I — it was everything in me in terms of being a good person, but I didn’t just staple the first New York Times best seller list and we were number one. So their rejection letters and sent them back to them.
Jason Hartman: I’m sure they found out without you telling them.
Jack canfield: I’m sure they did, I’m sure they did.
Jason Hartman: So, that was the first book. Now, how many brand extensions of Chicken Soup are there? I mean, there’s Chicken Soup for the Prisoner’s Soul, the Dog Lover’s Soul, the Country Soul, you know.
Jack Canfield: Oh, gosh. Over — over one hundred fifty. Dent lovers, golfers, nascar fans, sports lovers, baseball fans, basketball fans, mothers, mothers and daughters, Christian mothers, African American woman. You know it — it — people would come out of the wood work after we did — the first six books, Marc and I did ourselves and then someone came and said, you should do a book all for woman. And I said, that’s a great idea and I started to walk away and she said, wait. I said, what? She said, you should do it with me. And I said, well why should I do it with you? She says well number one, it was my idea and number two, I’m a woman. It’ll give you more credibility. So, we did and then people started seeing we were doing books with third and fourth authors and people started making suggestions and most of them are good, you know and we just continued.
Jason Hartman: Jack, what — I mean that business model has been so successful for you. What is the model under which other authors publish chicken soup books? Is it a franchise? Is it a joint venture? I’m — I’m just kind of curious.
Jack Canfield: Well, people have to — you know that we own the brand. People have to come to us and say, you know I — I think you should do chicken soup for the abused child, or chicken soup for the you know parent of special needs kids, and that’s to fill out a — you know we then send them back a form so that they fill it out so that they don’t sue us later for like stealing their ideas. And what we ask them then to do is, if they can come up with fifteen stories to prove that they can in fact gather those stories.
It’s one thing to have an idea. It’s another thing to be a good author, but what’s more important for a chicken coup collaborator, someone that can go out and identify and solicit stories from other authors. I remember when we did African American Soul, the woman that submitted the stories, Lisa Nichols, who has gone on to be a secret and done two books herself. One’s called No Matter What, which is a great book, and she said, I’m not a writer and I’m — she was a speaker but we needed somebody who was an African American who could go out and promote, as well and she submitted her first fifteen stories. And I called her up, I said Lisa, I’ve got good news and bad news. I said six of your stories are phenomenal, the other nine are terrible and she thought for sure that she was going to be the ones that were terrible because you know, she did get good grades in school in writing. I said the only six that really work are the ones you wrote and they’re fabulous. I said, you’re a great writer. I said but this isn’t the Lisa Nichols book. It has to be like representing all African Americans. You’ve got to go out and find more stories. So, once people have proven they can do that, and we have a sense that they can you know promote the book and be on television and those — those kind of things, then we go ahead and form a contract with them.
Jason Hartman: Fantastic, fantastic. And — and are — I mean, if you’re not at liberty to say, then feel free to don’t know the answer but the contract, is it a joint venture agreement or — or how — what’s the structure of that? Is it like you just share the [voice over] or —
Jack Canfield: Well, it used — it used to be a third — it used to be a totally shared wealth, a third, a third, a third, you know. We — we were always into — my — my whole approach to business is fairness and justice. And if you do things that are fair and just with people, then people want to play with you. Now, a few years ago we actually sold the trademark and the — the publishing arm of the company to a group in New York called the Chicken Soup for the Soul Publishing, LLC. So actually, I don’t make those decisions anymore. I’m still involved in a lot of the books but what happens is that they now do an author for hire relationship where they pay you a certain fee for working on the book and that’s it. So, it’s — it’s just a different model.
Jason Hartman: Got it, got it, got it. I mean you’ve got a bunch of other books, the Power of Focus, I believe. I — I remember —
Jack Canfield: Yes.
Jason Hartman: — that one from years ago, and then your latest one is for authors, I assume, Best Seller Blue Print, but how many different books do you have, like let’s go away from Chicken Soup for a moment.
Jack Canfield: Chicken Soup books, probably about twelve. We did the Success Principles, the Power of Focus, The Aladdin Factory which is all about how to ask for and get anything you want in life. We did a book called Hard at Work which is about bringing self esteem and love into the work place. We did a book called the Motorcycle Gig, which is kind of autobiographical, where I talk about how I really discovered my life purpose.
I was in graduate school doing a guide to visualization. I was a — I was a student. Something was leading it — professor and we had to go back to when we chose to become an educator and I slipped back to before I was born, which freaked me out, I think freaked the professor out when I told him, and I literally saw myself floating through space with a lot of other spirits and we looked down on earth in 1944, when I was born and there was a world war going on and I just saw — oh my God! It was like driving by an accident on the freeway. I said, I got to go down and help and all the other spirits are going, no you’re being co-dependant. Come on, we’re on vacation. I said no, I got to go help, so I literally have a clear memory of choosing to be born and choosing to be of service, and I didn’t really remember that until I was in graduate school, but now it’s a great, clear — as clear as I’m looking at my desk while I’m talking to you. So I wrote about that and it was pretty much a autobiographical book.
I wrote a book called Tapping into Ultimate Success, which applies EFT Tapping. It’s a — it’s a technique to tap on cer — acupressure points in — in a certain order while you’re focusing on a fear or an anxiety or a traumatic experience. You actually disappeared usually in five minutes or less I’d get rid of most people’s fears and phobias using that. So we applied these to those — to that technique to each of the principles that are in the Success Principles book, which I consider my magnus opus. It’s the thing I feel most proud of. It took about a year and a half to write and it’s a summary of like thirty years of being a trainer.
I was a trainer long before I was an author and — and a speaker. So basically, this is going back to being a trainer again and saying okay, we can take these principles and I’ve interviewed not just myself but seventy five of the most successful people on the planet and said, why are you so successful? And right now we’re working on a book called Living with Success Principles. They’re all stories of amazing breakthroughs that have occurred to people since the book came out in 2005.
I’ll share one quick story with you. I was in the Philippines about five years ago, did a workshop, a guy came and interviewed me the night before for a paper. He was interviewing like a series on success. At the end of the interview I said, that was a really good interview, John. I said, what — how long have you been doing these interviews? He said, you’re my first one and he went on to tell me how he just lost his job, his wife had left him, he had no car, he was couch surfing, meaning he was sleeping on people’s couches, and he had one dollar thirty eight cents. I felt so sorry for him. I gave him a copy of my book. I had to buy it from the book store because it was in — in Manila and I gave him that. I said, come to my seminar tomorrow for free. He came to my seminar. I came back two years later, he walks into my seminar, he’s in a wonderful, expensive Italian suit. He’s got plenty of people around him all wearing these logo jackets with Caleb whatever his name is – company was, Caleb Consulting Company. He was now the number one motivational speaker in all of — of the Philippines.
I said, John, in two years how’d you do this? He had two cars, he had two homes, he had — you know, he had his own radio show. He said, I took everything in your book that you said to do and I said, this guy’s successful, I’m not. For one year I’m going to act as if everything he says is true. I did everything you said and now I’m literally a millionaire two years later. So we know this stuff works. Now we’re collecting stories like that to basically share with people to hopefully motivate them enough to — to read the books and take the seminars and a list of the audio programs and so forth so that they too can have the kind of success. We’ve got fifty stories like that collected so far, so we’re really excited about that.
Jason Hartman: Fantastic. You know, if you had to sum it up and you know we — we’ve got a few more minutes here. I definitely want to get into some of the other stuff —
Jack Canfield: Sure.
Jason Hartman: — and talk about the blue print, the new product, but if you had to sum it up Jack, what is the — you could probably distill it to several or maybe even a few general principles of success that can really — I mean a lot of people out there are struggling now days. What — what are sort of the general — the — the Jack Canfield angle to success, coaching?
Jack Canfield: Well, I’ll — I’ll answer that but let me first say there is no single bullet. You know what’s the most important principle —
Jason Hartman: Yeah.
Jack Canfield: — [inaudible] three or four and I think that’s the problem Jason, with most people is they only have like several principles they’re working with and what I found in my own life in working with — you know interviewing these seventy five people that were Olympic athletes and you know, multi-millionaires and platinum record recorders and so forth that there’s — there’s about twenty five fundamental principles and it really is a system. They have to be done in a certain order in a certain way, and if you do that then what happens is success is guaranteed, that’s why Stone called his book the Success System That Never Fails and I define the system as something that always works and gives you a predictable result.
So you know, if you have a recipe for an apple pie from your grandmother and you use it, it always produces the same pie but you have to have the temperature and the oven has to be pre-heated. The apples have to be the right kind, the sugar has to be the right kind, etcetera. So, what most people do, and I use this metaphor of a combination lock, most people have some of the numbers and if they have all the numbers, they often have them in the wrong order, and most people know a lot more than they’re actually doing. But to go to your question, that’s why I wrote the book was because I felt most of the books are too shallow. It’s just a book. You know, I would call my success bible because it’s got a white cover and it’s thick.
Jason Hartman: And you’re talking about — when you say the book, you’re talking about the Success Principles?
Jack Canfield: The Success Principles, how to get from where you are to where you want to be. But the core, the essence of it is number one, you have to take one hundred percent responsibility for life. Get off blaming and complaining and I teach [inaudible] plus articles [inaudible]. There’s an event, there’s your response to the event that produces an outcome. The only thing you have any power over is your response to the events and how the [inaudible] are. Most people want to blame the event, complain about building a recession, Obama Care, taxes, government, China, Iran, oil prices, whatever. That’s just what is, so we have to learn to take control of our thoughts, learn to control our images and learn to control our behavior. And we can study successful people and see what are the thoughts, what are the behaviors and what are the images that successful people hold?
So that’s the first thing. Second thing you have to think clear about, what is your purpose for yourself, for your life and for your business? And your goal should not be set until you’ve identified inwardly what your true purpose — there are exercises and we teach people how to do that so that your goals are aligned with fulfilling your purpose because too many people today, their goals aren’t fulfilling their purpose, their goals are fulfilling their ego needs and that comes from fear and greed.
You know, look at Washington, D.C., they’re all just afraid of not getting re-elected. If they upset their pace instead of doing what needs to be done. The third thing is you then decide what you want to achieve and what you want to own and experience based on what’s going to fulfill your purpose. Then you’ve got goals that you set that are measurable and specific that will achieve that and a lot of people never make measurable, specific goals.
Then you’ve got to deal with your subconscious and conscious beliefs about whether it’s possible or not. There’s a whole body of work on that and then I teach you how to visualize and you have to use affirmations or ideal scenes. There’s a number of different techniques for turbo-charging your goals so that they are actualizing and — and — and aligned with the law of attraction, and that they are working with your subconscious brain to come up with solutions.
We have this thing called a reticular system in our brain. Right now, most people listening to this are not thinking about their right foot, but as soon as I say right foot, you can feel your right foot. So the reticular system is filtering out messages going into the brain. The problem is, most of us are filtering out resources and solutions to our problems because they don’t match our beliefs and once you change your belief like I can double my income in one year, or I deserve to be wealthy or I can be a millionaire quickly through the internet, but you really end up believing that and visualizing that. What then happens is your subconscious mind starts to come up with solutions. You start seeing things in your environment that were always there that you never saw before and you activate the law of attraction to attract resources and opportunities into your life.
The last couple of pieces of this is you have to act as if you’re already there. You have to take action, and there’s two kinds of action. There’s obvious action, you want to go to medical school, you got to study biochemistry and physiology and anatomy, but also there is inspired action, those things that you get in the shower, those things that you get when you’re golfing, walking on the beach when your mind is still and you get these little inspirations. Most people never act on them because they don’t make logical sense, but that’s where the greatest breakthroughs occur.
Bon Jovi, who I talked about in the seminars, great singer, he got this inspiration one night — he was a garage band, you know most people didn’t know he existed and he started writing his own music because he knew he had to do that if he wanted to be famous, but he didn’t know how to get his records played, his — his CDs played, so he had this inspiration in the middle of the night to take pizza and beer or coffee over to the DJs at the studios that are up at three in the morning when nobody’s guarding it and they’re — they’re probably doing their own engineering, he started doing that all over New Jersey and New York and within a year everyone knew his music because the guys who started playing his music as a — as a thank you for him bringing pizza.
Jason Hartman: That’s — that’s such a great idea. I never knew that.
Jack Canfield: Yeah.
Jason Hartman: That reminds me of how in — in the real estate business, you know the title reps and the mortgage people and you know all those affiliates would come in and bring bagels into your office, you know, same idea, yeah it’s great.
Jack Canfield: Exactly, you know it’s — it’s called giving to get. Be a go giver and then you get to be a go getter. You — you — you establish visibility and then your get credibility and then you get profitability, we always say. So, to fish this little model you’ve got to feel the fear and do it anyway or use some of the new techniques like tapping EFT into the five minute phobia, so don‘t imagine to release fear because fear’s what stops us from doing the final thing you have to do which is taking action and then you have to respond to feedback. Most people do not solicit feedback because they’re afraid of what people are going to say. You can’t get better without feedback. So, you have to become a — a — solicitor and a thank you when you get feedback.
Someone would give me a very nasty letter and I write them a thank you. Thank you for caring enough to share that with me, then I look inside and see if it’s something I really need to address. And then lastly, reject rejection, keep on keeping on and perseverance. If you do that, those are the core basics, your life’s going to turn around amazingly, but that’s easy to say all those things. There’s a whole iceberg of stuff underneath the surface to the water that actually put that in action and that’s what’s in the book and the CDs and the video tapes we have and all that.
Jason Hartman: Yeah, yeah. Fantastic, and — and so this applies to anyone who wants any degree of success in life. We’ll be back in just a minute.
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Jason Hartman: But I — I mean, would it be fair to say that you sort of divide your time maybe into sort of two major areas. Number one is that you are a success coach and all of the stuff we just talked about and then also you really are — have — have been very active and instrumental in sharing and giving and coaching other people that want to make it in your business. Other authors, other speakers, consultants — there are lots of — well, there are not lots but there are many I guess, best selling authors out there, depending on what time, what year and what list, right?
Jack Canfield: Right.
Jason Hartman: None maybe as successful as — as you and — and Marc with your Chicken Soup series but they’re — they’re not giving back, they’re just doing their thing and practicing their trade and doing a good job of it. But you guys are really out there helping other — helping create your own competition in a way.
Jack Canfield: Well, I — I don’t see it as competition, I see it as just a — it’s like a multi-level marketing company. You know, if you get enough distributors, you can reach everyone in the world. So, I’m doing this out of a mission driven as opposed to making money. The money came as a secondary thing. I love money. Money’s great. It gives you a lot of freedom, it allows you to buy things, not have to make tough decisions, get your kids a good education, travel, live longer because you can afford good health care and so forth, but money was never my goal. My goal was to make a difference.
So, my life purpose is stated as to inspire and empower people and organizations to live their highest vision, not mine, but their highest vision in a context of love and joy. And after the meltdown on Wall Street a few years ago, I added in harmony with the highest good of all concerned. And so if people are living their highest vision, I believe then the whole world would work. So if I go back to why I came down here, which was looking at the world in — in — in war, and the world in pain, and the idea of I have a — a gift, if we would all come from service instead of self — selfishness, what would happen is all the needs would get met.
And what we find, and I’m now writing a book on leadership, as well with corporations. Corporations have tried to serve their constituencies. Instead of making profit, or actually making higher profits to those that are only interested in maximizing profits, because people are happier working there, people trust those companies, they’re sustainable in terms of the environmental impact and you know we could go down a whole list. So, if you come from service which I — my whole life have dedicated to, I find the more I serve — like I started the Transformation Leadership Council, which now has one hundred twenty members of people who run transformational training companies. People like John Gray, people like Lisa Nichols, people that you’ve heard of and so we meet twice a year and because of that, one of our members has now invited me to be on the board of directors of an investment firm. I’ll make hundreds of thousands of dollars, but he said I want you on this board because I only want people the general public trusts, and they trust you because you’ve never done anything but try to help people.
So, I find that it all comes back to me. So we have a train to trainer program which we just started three years ago. We’re training about one hundred people a year that do our work in the training room and now with the blue print — best seller blue print program, we’re trying to help more authors. And again, it’s not because I want to make money, it’s because I know a lot of authors have wonderful messages that need to get out to people and if they don’t know how to do it those messages never reach the people who need to hear them.
Jason Hartman: Yeah, that’s fantastic. Well, I — I think that’s a good safe way to just talk real quickly about the best seller blue print product. Now is that — is that a book or a whole course, or what is it?
Jack Canfield: It’s actually a whole course. It’s — it’s mostly delivered online. There are things that you can get in hard copy if you want but most people prefer to just do it on their computer. There are tons of DVDs, of people like myself — myself and — and Bill Harrison and Steve Harrison who run the point of learning and do best seller author retreats all year long.
We got together — I was speaking to them for years and I said, my God, you know more than almost anyone we know so we’d like to do this course with you, but we have videos and audios from Tim Ferris, who wrote the Four Hour Work Week and who’s been on the best seller list now for I think four years. Roger Shimoff who’s the best selling author. First it was Chicken for the Soul and now with Happy for No Reason, Love for No Reason and so on.
So basically, we are teaching people how to write your book so that it can — has the potential of being a best seller, how to imbed hooks in the book so that these books actually get you on radio and television shows, how to get media. So basically, how to — how to structure the book and write the book so you have a book that can be a best seller, because if you get a lousy book, I don’t care what you do in terms of marketing, it’s not going to make it.
And then once you finish the book, how do you sell it to a publisher or should you self publish, how do you get a literally agent? A lot f people have no idea how to do that. Should it be an e-book, etcetera, and then once all that occurs, how do you promote the book online with bogs, book tours, should you do them, shouldn’t you do them? Virtual book tours where we have eight thousand people online being — you know, being interviewed by someone like you about the book, but eight thousand people can come instead of having to go to thirty cities where maybe two hundred people show up at each book signing.
So, there’s a lot of the latest information. We also have directories of P.R. people, publishers, literally agents so people can access their question and answer calls. There’s a — you can email questions into us to get answered. It’s — it’s — it’s phenomenal and we now have since last year, close to one thousand people that have taken that program and we’re seeing people already on the best seller list just you know, six — nine months into it.
Jason Hartman: Fantastic, wow. What great results. Well — well Jack, give out website and I don’t — I don’t know if best seller has a different website than your main primary website, but give out whatever you like.
Jack Canfield: Sure. If you — if you’re interested in the best selling blue print, if you were an author and you really want your book to be a best seller and you’re going to work with the best people, go to bestseller, no dashes, just all one word bestsellerblueprint.com, and there’s a whole lending page there that will answer all your questions. You can an access to three video trainings that we did. They’re about an hour long, just giving you a lot of information you need to sign up to take the course, if you watch the videos. And for bestsellerblueprint.com, for my work it’s pretty simple, Jackcanfield.com and there’s information there on all of our programs. We do training programs, a five day things in the summer, we have an administrative train to trainer program. And we do these new things we’re doing called the high end leap retreats where we do four day trainings at places like Bali, the Virgin Islands, Hawaii, my home, etcetera where people can come and live with me for you know a week, limited up to twenty people.
So, there’s information about those as well. They’re very, very powerful and transformation and then also all our books and audio tapes, all of that is there. So, Jackcanfield.com.
Jason Hartman: Fantastic. Well Jack, thanks so much for joining us today and thanks for all you do and just — just keep up the good work which — which brings me to my last question for you. What’s next for you?
Jack Canfield: Well interestingly enough, I working on about five books.
Jason Hartman: Why — why does that not surprise me?
Jack Canfield: I discovered a man named Dave Andrews who’s working on sobriety and I’ve had three people in my family go down to alcoholism and drug addiction. They’re all sober now, but it — it was tough, and he figured out how to help people in thirty days get sober and unless you really need to go through heavy detox. And what happened was when I met him, it turns out he was using all of my success principles in his program and we talked and we decided to collaborate on this book called the Thirty Day Sobriety Solutions. So, we’re working on that. We’re working on a book on breakthrough coaching, how to use these principles in a coaching modality. We’re working on a book of affirmations. We’re collective stories on networking right now. Some great stories of you know how when people network, miracles happen and we’re doing a book on love and fear.
But I’ve come to the conclusion Jason, that there’s only two emotions. You’re either coming from love or you’re coming from fear and — and a long time ago Chaposky wrote a book — George Chaposky called Love is Letting Go of Fear.
Jason Hartman: Love is Letting Go of Fear. I love that book. That — that is phenomenal, small, quick read —
Jack Canfield: Yeah. This —
Jason Hartman: — Love is Letting Go of Fear, it’s a great book.
Jack Canfield: Very transformative in my life.
Jason Hartman: Yeah, me too.
Jack Canfield: So, I’m writing a book now where I’m just unpacking that a whole lot more so it’s kind of my next up I think, real super brain soup book, the kind that gets you on Oprah. But just [inaudible] since we didn’t say the book is Success Principles. If you haven’t read it, I would really encourage anyone to read this. I don’t need the money. My grandchildren don’t need the money, but I do know that the book has transformed thousands of lives and so I would strongly encourage people, if you find this, call, I’ll [inaudible] for you. Make sure to do that, but basically I’m going to keep doing what I’m doing. I’m sixty nine in August, and I plan to be doing this until I can’t walk anymore.
Jason Hartman: Fantastic. Well Jack Canfield, thank you so much for joining us today, just great talking to you.
Jack Canfield: My pleasure Jason, thanks for inviting me.
Female Voice: This show is produced by the Hartman Media Company. All rights reserved. For distribution or publication rights and media interviews, please visit www.HartmanMedia.com or email [email protected]. Nothing on this show should be considered to be specific personal or professional advice. Please consult an appropriate tax, legal, real estate or business professional for individualized advice. Opinions of guests are their own and the host is acting on behalf of Empowered Investor, LLC., exclusively.
Transcribed by Debra
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