Jason Hartman interviews Dr. Bob Wright, co-author of Transformed! The Science of Spectacular Living and Beyond Time Management: Business with a Purpose, to talk about the science and positive results in personal transformation and finding purpose. Dr. Wright discusses identifying inner yearnings, becoming more engaged, and becoming more aware of our programming (limitations) and changing them. He explains the difference between learning and growing and how to transform our lives by rebuilding neuro pathways in the brain. He also defines the three types of happiness – hedonic, engaged and meaningful – and how to create an intimate relationship with our fears in order to transform. Dr. Wright then talks with Jason about finding deeper purpose in business, creating a more meaningful, more fulfilling experience. Listen at: www.HolisticSurvival.com.
Dr. Robert Wright is a highly successful entrepreneur, world-class executive coach, and dynamic corporate consultant. An internationally recognized author, Dr. Wright is considered a visionary and cutting-edge thinker, speaker, and program developer in the areas of human potential and human emergence technologies. Called a top executive coach by Crain’s Chicago Business, Dr. Wright specializes in helping corporate leaders and entrepreneurs across the country not
only to build and grow their businesses, but also to thrive with purpose, mission, and robust, high-performing cultures.
After selling his top-ranked managed care and employee assistance firm in 1994, Dr. Wright co-founded the Wright Business Institute and Wright in Chicago to help leaders, entrepreneurs, families, individuals, and organizations realize their fullest potential in all areas of life. In his most recent venture, he co-founded and serves as CEO and faculty of the Wright Graduate Institute for the Realization of Human Potential, a graduate school offering masters and doctoral degrees in human development. Look for Dr. Wright’s work at http://wrightliving.com/.
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: Hey, welcome to the Creating Wealth Show. This is your host Jason Hartman and we are at episode number 320 today and you regular listeners know what that means. That means this is a tenth show and every tenth show we go off topic and we talk about something of general life interests and maybe just more successful living, motivation and today we’re going to talk — our guest today is Dr. Bob Wright and he has written a book on transformation, transforming our lives into the lives we want to live and so he will be here in a little bit to talk about that.
But first I’ve got Michael here with me. Michael as you know you regular listeners is one of our investment counselors and he’s a real news junkie. I think that’s a fair statement, and so he’s got some current events he wanted to bring to the listeners’ attention today. Michael, how are you doing?
Michael: I’m good. Finally recovered from that bachelor party and I was down in Cabo which you noticed when you said — you noticed that I wasn’t posting any articles to our — our company forums and you said there’s a little bit of a silence, so I must be out — out of the country?
Jason Hartman: Yeah, I didn’t know where you were because you’re always contributing so much to the knowledge base and we all enjoy your posts there because you read like everything. Well, Steve’s kind of like that too. And I’m like that. But yeah, you always have some great posts.
And — so you came back from Cabo San Lucas like what, like two weeks ago right?
Michael: Yeah, I really — even though I was down there for only four days, it took about four days to get back in the groove of — of life here and working and we just had such a good time. Waves were great, got a hurricane swell.
Jason Hartman: So you were doing some surfing then, huh?
Michael: Yeah. You might as well while you’re down there. The water is just unbelievable.
Jason Hartman: And — and the rest of the time were you wasting away in Margaritaville, as Jimmy Buffet would say?
Michael: Yes, we danced a few nights until five a.m.
Jason Hartman: That’s fantastic. I remember my first trip to Cabo San Lucas. I’ve been there a few times, and I’m not a huge fan of like Mexico. I really — but I always seem to end up there every once in a while because there’s some group trip or something. But I remember going to the Giggly Marlin. Okay, is that place still there, the Giggly Marlin?
Michael: Definitely still there.
Jason Hartman: Okay. That’s classic because this must have been like twenty years ago, right? And — and I was at the Giggly Marlin and they have this t-shirt that you can get and it’s certified member of the too much fun club, and you got to drink like one or two — or I think two of these drinks. It’s the skip and go naked drink. And — and then you’ve got to hang upside down you know with your feet in these inversion boots like the — like a marlin right, and they — I think you got to drink one upside down or something. It’s just nuts. That’s just crazy. Mexico is crazy. I don’t know, I’m too old for that.
Michael: Yeah, that’s the signature there and they also love pouring shots in your mouth and then shaking your head vigorously, which I don’t know. I just don’t really want my head banged around.
Jason Hartman: Yeah, I — I — I — I liked that many, many years ago but I — I’ve just — I’ve outgrown it. I’m not that interested. But I got to tell you what was so funny is that I remember hearing in the O.J. Simpson trial, the first O.J. trial, that — like he and Nicole got that t-shirt, and I don’t know how that came up in the trial, but like they must have gone to Cabo and they got the certified member of the too much fun club t-shirt and I just like remembered and connected the thing. And I just thought that was — that was odd. You know, what a small world, you’d hear this very famous murder trial and then you hear this thing that came up in the trial about the Giggly Marlin in Mexico and Cabo San Lucas. So, I just thought that was kind of funny.
But then I was in — I was in California last week and I met with you in Orange county and — and you know Michael, I got to tell you, I’m — I was pretty amazed actually that there’s actually some life in California. There — there’s actually a lot of life, more than I am willing to admit sometimes, but some redevelopment and we went out to that new triangle square redevelopment. Now this — this folks, is a — a shopping center that has been in bankruptcy and foreclosure multiple times over the years, that no one has ever made a go of it there. It’s just never been successful. Tenants in and out, and it finally seems like now maybe they have it right. This is a real estate deal and that’s what we talk about on the show mostly is income property investing, and this one has not been a success. But I kind of think it might finally work. They’ve got a — several new bars and restaurants there and it was kind of fun.
Michael: Yeah, well they — for step one was they ditched the old name, so now it’s just the triangle, and I think that was a smart move to distance themselves from the — the old failures that had been there before. It was a little quiet when we went out, but — but —
Jason Hartman: But it — but it was a Thursday night. But — but hey, you know you had some girl throwing herself all over you. I was pretty impressed with that.
Michael: They’ve — yeah, they just — you know there’s like — there’s two really good looking guys. We should go talk to them.
Jason Hartman: Yeah, well — well, she definitely liked you. She kept complementing your shirt and all of this. After — I — I remember, I left and you stayed a little longer than me, did she and her girlfriends actually get on that mechanical bull and ride the bull?
Michael: Yeah. They — the blonde girl, I can’t remember her name, she got on and it was pretty entertaining. So, for those that don’t know, there’s a — a restaurant called Saddle Ranch. There’s one out by — in Scottsdale, you said?
Jason Hartman: Yep, there’s one in Scottsdale and one in Hollywood, as well.
Michael: Yeah. So they had the mechanical bull which lets everybody that’s had a few too many drinks make a — a —
Jason Hartman: A fool of themselves.
Michael: — a fool of themselves. So, I think your friend actually did — did pretty well on it, and — and then we just hung out for a little bit. I will say — I — I — that we went to that Mexican place across the way before and — and they gave us that complementary shot. And I don’t know what was in there but I had a terrible headache the next day and I only had that shot plus about two beers. So, it was just probably not the best thing to drink.
Jason Hartman: I tell you, I am just so much less interested in alcohol as the days go by. I just — just don’t like it that much anymore. But — but you know, once in a while a little bit. But you — you know that was — it was just kind of interesting to see that there’s really you know a little bit of development, a little bit of life going on in California’s real estate market. And you know, as people know in the housing market there in some areas the housing prices are appreciating pretty low, but we still think it’s a gambler’s Mecca because the cash flow just doesn’t work and it’s got to work cash flow perspective from day one. Property must make sense from day one. You know my commandment, thou shall not gamble and otherwise it’s just a speculation game and I tell you, I have seen that cycle play out in the California market, living there for so many years, virtually my whole life until two years ago. I was going to say a year and a half ago, but it’s almost two years now, by they way. It’s just about two years in — in just a few days here — my — my — of my leaving California and that cycle has played itself out so many times, and there’s always someone left holding the bag or thousands of people, maybe millions of people left holding the bag, when the music stops because the properties just don’t cash flow and that’s — that’s the problem.
Now on the other end of the spectrum, I know you wanted to talk about an — an article that you posted and that was kind of — let’s just — we talk about it some what frequently on the show, but these sites like Zillow, Trulia, realtor.com — well this is another one. It’s called revestor.com and Michael, I couldn’t believe it when we typed in some different addresses here and looked at some properties, pretty mind boggling numbers. They can really steer an investor wrong, don’t you think?
Michael: Yeah, I — so — yeah, I think they just call it revestor and so we did a sample search. I just, you know, jumped on it. I said okay we’re in Indianapolis. Let me search Indianapolis and the first property that came up —
Jason Hartman: This is crazy.
Michael: — is — is for sale for fifty five hundred dollars. It’s a four bed, two bath, twenty five hundred fifty square feet and they’re saying that the cap rate is one hundred eighty one percent and the ROI is four thousand four hundred eighty and you know, it’s just — these — these auto valuations like Zestimate and [voice over] —
Jason Hartman: And — and — and the Zestimate is from Zillow, by the way.
Michael: Yeah. So this is running some sort of auto valuation market rents and comparing it to the price of the property. I mean, if — if I didn’t know any better, you know, I would be buying these all day long, but it — it only takes about ten seconds to think about what the real numbers must be to realize this is just — software is not giving an accurate picture whatsoever, and people really need to do their homework. They need to know where are the rent numbers coming from? What is the — what is the real all in — investment into the property going to be? You know, all of these have boarded up windows so —
Jason Hartman: And they’re giving you this one?
Michael: Yeah, they’re giving you some sort of premium rent — rental income but they’re not accounting for the fact that, well this five thousand dollar property probably needs ten thousand dollars worth of work to make it livable, let alone —
Jason Hartman: It’s probably a meth lab which — as I’ve always said, meth labs would be great if you can get percentage rent. But I — but I think then you would be engaging in an illegal activity, okay. So obviously, that’s a joke. But what — this — this property, is it 1337 West — I guess you pronounce that Rochee Street, in Indianapolis. So you —
Michael: How much is — the way it looks, it’s probably Roach Street.
Jason Hartman: Yeah, yeah. I would say, Roach, but Rochee. It’s kind of like calling Target, Targee, right? But — but this one, it’s mind boggling okay. This house was built in 1925 and they’re saying that this property will rent for one thousand ten dollars per month and you would only pay fifty five hundred dollars to buy the property. Now this property’s listed by Keller Williams Indy Metro West and the revestor rating on this property — I assume this is on a scale from one to ten, revestor rating with a C with a circle, you know they’ve copyrighted that and that’s actually the wrong symbol, because that should be a TM or an R. It should be trademarked.
And anyway, it’s nine point eight — I’m — I assume that’s out of ten, and the net cash flow’s is eight hundred ten dollars per month for a cap rate of one hundred eighty one percent. This is — this is complete absurdity folks. I mean, this — this is in a terrible neighborhood. This is shack and it’s got a shack which looks like an out building, like a garage that’s detached or something that is literally a shack. Okay, I’m looking at the pictures right now. Inside, this place is boarded up. It’s a disaster. I’m not saying all boarded homes are bad, but in Indianapolis, I personally own properties that rent for just over one thousand a month, that cost me like seventy thousand dollars give or take. I — I don’t remember what I paid for the couple of properties I have there. And they’re newer, like built in 19 — I can’t remember, but maybe 2005 — 2006. Why would someone pay one thousand dollars a month basically the same rate for this property built eighty years earlier? I — these — these numbers are just nuts.
And then you go down the list of this website, everybody tries to take and say that real estate is something that doesn’t require an actual thinking human being or as what we say, one of our biggest ways that we do research and evaluate markets is through what we call the ground troops, the people who are actually on the ground in that market who are living with these investments every day. Some people call them property managers, we call them local market specialists, and there’s a combination of them and our actual visits to these markets, and our actual real life client experiences in these markets. And you look at these properties and you look at the bottom of the first page of properties, which is like the tenth one down, and here’s a property that’s sixteen thousand dollars. It’s a two bedroom, one bath property, sixteen hundred fifty square feet, built in 1950 and they’re saying the cap rate is forty one point seven three percent.
Do you see that one, it’s on 35th Street, Michael?
Michael: Yeah, yeah.
Jason Hartman: Good.
Michael: I mean —
Jason Hartman: So — so, look at this one.
Michael: But it’s got the revestor rating of nine point four nine and — I mean this is just — I don’t know — you — you’re saying that they — they copyrighted that term. It’s — they may — they’ve already bastardized their own — their own copyright or trademark because it clearly has no relevance to reality.
Jason Hartman: No, it — it definitely doesn’t. I mean, these are properties where you are — and this is one of the things that we mentioned before. We have a lot of people come to us and pitch us on recommending properties in Ohio. Toledo’s a common market for this. All over Michigan, outlined areas of Detroit and other markets, they’re actually decent markets. They have — actually I should say, many markets that have decent sub-markets within them that we actually recommend, however in bad areas of that city, places like even Memphis where you can buy properties as a — as an investor you’d pay maybe twenty five thousand dollars for these properties. And you know you’ve got to realize is that the promoters, a lot of times, are paying one dollar — I mean I’ve heard stories about that, to five hundred or maybe just five thousand dollars to buy that property, that they’re turning around and selling to your for twenty five to thirty five thousand dollars.
And some of these properties, they can project the rent at even four hundred dollars per month for a twenty five thousand dollar single family home. That wouldn’t be a RV Ratio but here’s the — here’s the caveat, if you can actually collect it? And a lot of these properties are — they’re just in such bad areas that you cannot actually collect that rent, at least not without a side arm. Your property manager better have a gun and they better go to the property and try and get the cash rent payment and then you know, you’ve got a problem where the property manager may be ripping you off, if they accept cash as well. So —
Michael: Yeah, suddenly they’re going to say that they never got the rent.
Jason Hartman: Yeah, exactly, exactly. And actually one of the properties — I just heard a story about one of the property managers that I’m in a battle with in Kansas City over the same thing. Results Property Management is the company, Quentin Carney is the — the owner and Ken Login, he owns it with him. And I — I’ve been fighting with these guys for a couple of years now and I had someone call and say that they paid them cash rent and they’re the tenant and they said that they never collected the rent. And so —
Michael: Yeah.
Jason Hartman: — wow. These people are probably getting completely taken for a ride. They filed an eviction notice against them and some people, they just don’t know enough. You never pay in cash, it’s just dumb. They don’t have tracking, but — but anyway, moving on here you want to talk about Texas first or — or the — the new Carfax of real estate? Let’s talk about that one first.
Michael: Yeah, let’s hit that real fast. So this is — I’d like to try to find things that people might use for due diligence because that’s a big part of — investing in real estate is finding out about the property and figuring out if it’s going to be a good investment from your perspective or not, and knowing what you’re really buying?
So, I’m not totally sure. This is a new site I came across and it’s called — it’s on propertyrecord.com. So basically they have a database where they can pull public records and so they’re going to try and find anything related to housing inspections and some of the other information that would have been recorded publicly. And they also make — they — they say they make a really good attempt to really price the property and find the true value of the property they feel better than a lot of the other valuation models.
So, I’m not sure the extent of the value of this — we’re calling it kind of like a house fax — a Carfax type report because I just know Jason, we — we both sold houses and we know older homes typically — they may have a ton or problems but the — the probability that a city inspector actually came out and flagged something and recorded it is — is —
Jason Hartman: Yeah, that is pretty low.
Michael: — yeah I mean in Newport Beach where we both worked, you could — there was a mandatory city inspection that you could — that you could decline as long as you paid the fee for it.
Jason Hartman: Right.
Michael: So — so, most the time there was defects more detected but I still think — I — I can’t — there’s public — there’s propertyrec.com., I think it’s like a buck a report and for a dollar, I think I would — I would just take a look and see what kind of data they’re going to throw at me and — and see if anything was recorded in the history. If there’s any issues with old permits that may be outstanding?
Jason Hartman: The same thing with this — you know and I’d say that’s especially true on an older home. On these newer homes that are built after 2000 and even after 1980, they’re in like traditional subdivisions. Most of those — I don’t know that this is going to find anything but it is one more source for due diligence if you’re wanting to really take an extra step here. That might be bad — that might not be bad but on — on much older properties, one of the places where this comes up and you mentioned Newport Beach Michael, is where they have these bootleg units.
Like you’ll have a house that’s zoned R1, meaning residential one and it’s just one unit or even R2, meaning it’s a duplex. But someone will somehow stick a third unit in the garage or a second unit in the garage.
Michael: Laguna Beach, Corona Del Mar —
Jason Hartman: Yeah, exactly. Those —
Michael: — Costa Mesa.
Jason Hartman: — those — yeah those — those kind of places. And — and these are older properties that are usually built like pre 19 — I don’t know, maybe 1960 —
Michael: Before the ‘70s, yeah.
Jason Hartman: — before the .70s, yeah —
Michael: Yeah.
Jason Hartman: — usually and — and those kind of things do get kind of flagged by inspectors sometimes, those additional units and that kind of stuff. It doesn’t apply very much to what we’re doing very often, maybe rarely, but — but it could.
But the — the take home point in this discussion really of revestor or revestor, whatever you want to call it, Zillow, any of these — Trulia — any of these valuation models, any of these sites that suggest rents like Rent O Meter or Rent Range or propertyrecord.com is that you have to realize as an investor that you’re dealing with a highly fragmented asset class and one house across the street from another house is a completely different thing in many cases.
And I look at my old neighborhood and we were just talking about it before we started recording this episode, Michael. I lived in — in this property and I had far and away the best — the best home in this tract. I had a huge yard by California standards and I had a fantastic city lights and sunset view and the ocean in the — bit of a distance. You could technically call it an ocean view but it was a little bit far. Okay. And this — this property that I sold two years ago, I sold it for nine hundred eleven thousand dollars, it was my personal residence. Not the most expensive nor largest home I’ve ever owned or nicest home I’ve ever owned, but I don’t know, I just kind of felt comfortable there and I — I stayed in it for a while and I ended up selling it through my company, at the time, Open Door Auctions, and which by the way has its own podcast. Although I’m not really running that company but I — I wish I could find a — a leader that would really take that thing, because it’s such a brilliant idea, if I don’t say so myself.
Michael: Well, this is the right market, too.
Jason Hartman: Yeah. It —
Michael: Yeah.
Jason Hartman: — yeah, well I think — I think anything’s the right market for it. I think it works in either market, but — but whatever the case. Check that out, opendoorauctions.com if you’re interested. I — I just never had the time to really give that company — little business off the ground but maybe someday. But anyway, I — I — I sold my own property with that and I sold another rental property that I had in Irvine with that, and it’s — it’s amazing, like my house that I lived in versus the house next door or across the street, totally different thing, hundreds of thousands of dollars of difference in price.
You just can’t do that with a computer or software program. You — you got to have a human make an actual judgment on that because all of this is a highly fragmented asset class which is good if it could be streamlined and institutionalized like that, as I’ve said many times before, that would limit the opportunity for our investors and our people who are the ground troops with boots on the ground, that can really evaluate this stuff.
Michael: Well it was just funny that that happened to be the exact neighborhood that I was bringing up to you to say, you know when I was speaking of a specific case where the evaluation was off by like forty percent —
Jason Hartman: Sure.
Michael: — and it’s just — it’s because those neighborhoods, when you have two neighborhoods with — well they’re both three bed, two bath homes, but one has quite a bit different — the Summit in Turtle Ridge, bigger club house, a little bit more exclusive, bigger lots. The — the evaluation model just wasn’t taking into account some of those little details that really add up to value.
Jason Hartman: It’s a totally different thing. I mean it’s just a totally different thing. And by the way, before you mentioned that, did you know I used to live there?
Michael: I did, but I just — it just — it — it — it happened to be — the funny thing is, I think I was looking at it — I had a couple of clients that lived in there and some friends in that same neighborhood, so I — I was really paying attention at the time to — to the — to the Zestimate from Zillow because it — that was such a thing where people thought, oh well I could just type my property into the site and it’s going to give me a better number than a real estate agent when — and we were just saying look at, it’s actually — it’s the opposite. It looks like a fourth grader was throwing darts at prices in this neighborhood.
Jason Hartman: I agree. Couldn’t agree more, couldn’t agree more. Well hey, before we jump to the next topic and our guest here, I want to just mention some upcoming shows. Our next episode we’re planning to have George Walker from the Spectrum Group. We’re going to talk about investment outlook there and then on episode 322, we will have an analysis policy that is very interesting as it affects investors and then we’ll have Doug on 323 talking about various advertising schemes and a lot of these things that are just too good to be true. They really are too good to be true many times and — and we’ve got some callers that we’ll mix into these future shows. And — and then we’ve got a show coming up where we’re going to talk about micro-lending and how it effects the greater economy and — and what they call in the abundance book, The Future is Better Than You Think when we have the co-author on — Steve Cotler several episodes ago, they call Rising Billion which are the rising billion people around the world that will be online here in the next several years and contributing to the idea pool, contributing to the economy and sucking up assets. And that affects all of us as investors in a very positive way, in my opinion.
So, we got a lot to talk about in upcoming shows but before we get to our guest, let’s also Michael talk a little bit about one of the big, big places that people are moving to and a lot of them are leaving California to go here and that is good old Lone Star State, you know, don’t mess with Texas.
We’ve got an article here talking about ten reasons — this is a BBC article about ten reasons why so many people are moving to Texas. Do you want to share any thoughts here?
Michael: Well do we want to just rip through that list real fast?
Jason Hartman: Yeah well, the first one is jobs. You know that’s easy and — and — and one of the things — I — I — I’ve been saying on the show, the best thing you can have on a resume is mobility. So, I — I recommend, especially if you’re younger and — and you’re not really established in a career, don’t go running out and buying a house. Buy some rental properties. Buy some income properties which are an asset rather than your own home, which is a liability and rent your own house and have mobility for yourself so you can go where the opportunities are and go where the jobs are. So that’s one reason.
The number two reason, it’s just a lot less expensive to live there.
Michael: Yeah, they’re saying that they — somebody in the article did some sort of calculation, based on incoming cost of living and they said that Houston basically has the highest effective pay check in the country. So, that counts for a lot and we know from — when we’ve looked at the markets in the past, that you know a lot of the — like Dallas, some of those people like to live a — a pretty posh lifestyle on not too big of a budget.
Jason Hartman: Right, right. It’s the — it’s the — it’s the city of the thirty thousand dollar millionaire. And — and I will just tell you what all the girls say here in Scottsdale, they say Scottsdale’s the land of the forty thousand dollar millionaire. So even the gold diggers have it right. They know how to just economics, right?
Michael: Yeah, they’re looking for real wealth. They got to cut past the rented Lamborghini.
Jason Hartman: And — and — and then I’ll give you one more example and that’s kind of funny. Everybody may remember — now what was it about four or five years ago there was a famous craigslist ad by a girl who lived a — a — she — self proclaimed that she was gorgeous and she lived in New York City and she was looking for a guy that made at least half a million a year. And you know she explained it in New York City, and look if you want to live a decent lifestyle, you’ve got to make about a half a million a year. And you know this was at the times — it fluctuates a little bit, but — and then some investment banker guy replied back and it might have been Lehman Brothers – he’s probably out of a job, but he replied back with this killer reply and just taught her a big lesson, and it’s just the funniest thing.
That’s actually — we — we did a blog about that a few years ago at Jasonhartman.com. You can go look it up on the website, just type in craigslist gold digger. It’s just funny because in New York City you know in an expensive place to live, that’s maybe the land of the — if you’re faking it like that concept goes of the thirty thousand dollar millionaire or the forty thousand dollar millionaire, there you really got be a one hundred thousand dollar millionaire. You got to make one hundred grand a year to act like you’re a millionaire, right?
Michael: Oh man, I — I think the homeless people in New York make one hundred grand.
Jason Hartman: Well, maybe. That’s why they’re rent to value ratios are no good.
Michael: Yeah, I mean you want to rent a house in the Hampton’s it’s twenty thousand a month on the low end. So —
Jason Hartman: Wow! Yeah, crazy, crazy. But yeah, talk about some of the other reasons if you would, there.
Michael: Okay. Well, of course it’s cheaper so they talk about homes and I would have liked to have seen them actually pull some real data from this article. A lot of it just seems like it’s kind of off the cuff. It — it comments without giving any statistics, but obviously they say land is cheaper and less like rules and regulations it makes it a lot easier for them to get permits, which makes it — homes are faster, cheaper and easier to build out there.
Jason Hartman: Yeah, that’s true. And some people have claimed that’s one reason to avoid Texas, especially if places like Houston. And I disagree with you because our investment strategies are based on really owning the commodities, the sticks and the bricks, the copper wire, the glass, the petroleum products, the steel, all of this stuff it takes to build a house, we’re not really land investors, we’re packaged commodities investors. Or you know another one of my trademark phrases, not just packaged commodities, but assembled commodities investors.
So, the land is pretty much free. You’re buying at or below the cost of construction and — and that’s what you’re investing in, but you’re getting all the treatment of a land owner and you’re — you’re making it the most debt friendly or the most debt favored asset, the most tax favored asset and all of the other ideal characteristics of an income property investment.
By the way, I just looked it up at Jasonhartman.com. It was Rob Campbell at JP Morgan.
Michael: It was hilarious, right?
Jason Hartman: Yeah. So, if you want to find this thing and read about it, it’s just so funny. Go to Jasonhartman.com and type in craigslist. It comes right up as the first results. So, there you go. Anyway, you know some — low taxes, not property taxes but no income tax, okay, and low taxes for business. The homes — pick your own big cit — big city. You’ve got a lot of choices — a lot of diversity in Texas, don’t you?
Michael: Yeah, that was an interesting comment that basically — if you want to be in a big city, they actually have six of the country’s twenty biggest cities. So, it gives you some flexibility. You know I think — you know the neat thing — I just — most places you just — big cities tends to have a different personality but I think they’re pretty — pretty — they’re very diverse in — in Texas, where Austin is definitely liberal and funky. Dallas is a little — could be a little glitzier in areas, definitely more traditional, more conservative. So there’s some unique personalities that you — the big cities, but if you want to stay in Texas, you have — you have — you have quite a few options on — you know I want to be in the big city but here’s — here’s the way I like to live. Here’s the kind of people I want to hang out with. Here’s the food I want to eat, the neighborhood I want to live in.
Jason Hartman: The — the one thing I love about Texas and Texans in general, is I love that they’re all proud of where they live. And you know I sensed that years ago, way back in the ‘90s, I remember being in California thinking I want to live in Texas. Every person I would meet from Texas is like proud of where they live and so many people that I would meet from California, as the — the — the bloom was off the rose if you will, in California you know it was starting to just die. People just want that — it was — it was just a different thing.
When you have a place where the cost of living is low, the people are just happier. I — I mean I look at it around here in Phoenix and this is not all low cost of living in Arizona. You can spend ten, twelve million bucks on a home in Scottsdale if you want, but overall people aren’t that stressed out here. Like in California, even if you’re rich, other people around you are struggling because they’re all house poor and I — I just — I don’t know, that’s just my own opinion of how I want to live and where I want to live. I — I don’t like being in a place where it’s just super expensive to live.
Michael: Yeah, you know I — outside of a few unique neighborhoods and you know, I can’t remember what the neighborhood is in Austin where you know like Michael Dell lives there and some other big wigs and then there’s obviously some fancy places in Dallas. But Austin as a whole, when I was there — I’m you know from Newport Beach this is the Mercedes capital of the world. Everybody drives a Porsche, BMW, Mercedes. When I was in — when I’m in Austin, I — you barely see any BMWs. So, it’s just — people — it — it — you know they’re not — they like — I would say the women like some material possessions, but it’s — it’s almost more just because they want to look good, if for personal enjoyment than rubbing it in somebody’s else’s face like that I can afford this. You — you know everyone just really wants to have a good time.
Jason Hartman: I think it’s hilarious. When — whenever people tell me that Scottsdale is snobby — they call it Snobbsdale, and — and they say Dallas is snobby, I think hey, I’m from Newport Beach. It’s not snobby there! Trust me, Newport Beach is — is very much that way. But some of the other reasons here, family friendly. Texans are normal people. You know, I had to put that one in there. I thought that was funny, and — and they’re not going anywhere. Native Texans aren’t leaving the state. They say it’s the — the stickiest state in the country.
Now, if you — if you’re a tech person listening to this and you’re into internet marketing, one of the big things you want about your website is you want stickiness. Okay, you want a sticky experience so people will stay on the website a long time. And Texans, they’re not leaving.
Even John Steinbeck of days gone by, he wrote Texas has a tight cohesiveness, perhaps stronger than any other section of America. So, it’s a great place. I — I love Texas. So, I’ve never lived there, but I’m a — I’m a fan, I’ve got to tell you.
And speaking of which, before — we got to get to our guest here, but do you have a Texas property you want to talk about today?
Michael: Yeah. Let’s just look at that Cedar Park Texas home.
Jason Hartman: Sounds good.
Michael: We just had Kevin on from Austin, so you know he’s — he is hunting down deals left and right looking for property. So you know, he throws a lot up and that’s probably because of his — his business model’s a little different where people are actually going to be making offers to the bank, so he operates a little differently. But this one in Cedar Park — you know, I just liked it. It’s — this one is thirteen hundred ninety five square feet. The purchase price is — well in a few ways, he puts a purchase price for the performer but he — in the comments, he — he tells us to offer less.
So, he’s saying that it’s one hundred thirty thousand. Total investment is thirty eight thousand one eighty for a down payment and closing costs. And the cash-on-cash return is seven percent with a total return on investment of thirty two percent.
Jason Hartman: So — so, that’s not — not a — it’s okay as a cash-on-cash return, but it’s not impressive.
Michael: It’s — it’s not compared to —
Jason Hartman: Not compared to our other stuff.
Michael: — some of our other — you know but this is — I like this area of — of Austin out in Cedar Park to Lander and Round Rock is really where — you know [voice over] —
Jason Hartman: And I am in [voice over] also.
Michael: Yeah.
Jason Hartman: I’m a renter there, yeah.
Michael: I’ve made a — a few trips out there. I’ve driven down with local agents that are friends of mine, you know and I could just see these are the areas where Apple just put their huge campus out there. This is where a lot of the big business are — big businesses are heading. So, that — I like that area from the prospective that most people want to be fairly close to work and these neighborhoods — this is a — you know it’s a brick house, so it’s going to be solid.
Jason Hartman: Good —
Michael: So I —
Jason Hartman: — good — good looking property for sure. I’m looking at the picture right now. So this one, one hundred thirty thousand dollars about thirty eight thousand to get into it, subject to qualifying with a twenty percent down, and then cash flow projected at about — almost twenty six hundred per year – twenty six hundred per year almost, and overall return on investment, projected at thirty two percent annually. Like I always say, if it only goes half as well and you make sixteen percent annually, it’s still pretty good, huh?
Michael: Yeah, and this is — we’re running a six percent appreciation model for — for Austin area, which everybody knows — I don’t know what it was last year. Appreciation was probably fifteen to twenty percent last year. So, this is — is very conservative on the appreciation side. Obviously, we like to buy for cash flow but you are going to get a bump on — on total return, I think if you look at like a total of five year analysis, I — I think investors are going to do well on something like this.
Jason Hartman: Yeah, and — and — and one more thing I want to say about this one before we go to our guest is that that coverage ratio, which we — we talk about on the show to some extent but we don’t talk about it a lot. It’s not a primary indicator, but it is kind of interesting if you’re a very conservative investor. If leverage scares you, if you’re the type of person who thinks you’re still kind of playing by those old rules, or if you still have those old rules that maybe your parents or grand parents kind of put into your head, when the game was different, when it was before 1971, when we were on the gold standard, the game has changed. The rules have changed and I — I think leverage is a wonderful thing when it’s on — when it’s — when it’s on assets that produce income and — and produce wealth like — like income property.
But here, the debt coverage ratio on this property is one point four two percent. So, even on an expensive property, and we call Austin one of our expensive markets, this is ninety three dollars per square foot, this is not cheap. It’s not super expensive, it’s not over priced by any means, but it’s not cheap compared to some of our — our really inexpensive markets like Indianapolis, Memphis, that kind of thing.
And so here you’re — you’re looking at — you’ve still got a debt — coverage ratio of one point four two percent and the debt coverage ratio is, it — it really ought to be called how likely it is — how likely is it that I’ll ever get into trouble with this property? That’s what the debt coverage ratio means. So, at one point four two percent it’s pretty unlikely. You’d have to have a — a — a string of some fairly long vacancies. You would have had to not listen to my rule having at lease four percent reserves in the bank, and it — it’d be pretty hard for you to get into trouble on even this more expensive property with only one percent RV ratio which is fine, but it’s not the highest RV ratio we have.
Austin is a market that’s more geared toward the future and its appreciation potential.
Michael: Well and that’s — I guess the — for commercial financing, they call it the DSCR, the debt service coverage ratio. So, really most banks are going to look at any property over a one point two five. So — and as you get over a one point three five, those are loans that — that commercial lenders would loan on all day long.
Jason Hartman: Right, right. They will give you the loan because the bank thinks it’s a safe deal, absolutely.
Michael: Yeah.
Jason Hartman: Yeah.
Michael: So that’s just so — people got a little tip of or added insight as to how commercial financing operates. That’s always something that they bring up when I talk to my friends that are in the industry is, hey Mike, bring me you know a self storage facility. If you have a one point two five or higher, you’d probably be good to go.
Jason Hartman: Yeah, good stuff. Well hey Michael, we have got to wrap up and we’ve got to get to our guest. This is a tenth show where we’re going to go off topic. We’re finally going to go off topic here and talk about some general life success principles. So, thank you for joining me today and I will talk to you soon, Michael. And let’s get to our guest. We’ll be back with our guest in just less than sixty seconds here.
Jason Hartman: Be sure to call into the Creating Wealth Show and get your real estate investing and economics questions answered by me, personally. We’d love to have you call in, share your experiences, ask your questions and a lot of other people listening have those very same questions. So be a participant in the show at 480-788-7823. That’s 480-788-7823 or anywhere in the world via Skype Jason Hartman ROI. That’s Jason Hartman ROI for return on investment. Be sure to call into the show and we are going to enter all the callers in a drawing for some nice prizes as well. So be sure to call into the show and I look forward to talking with you soon.
Jason Hartman: It’s my pleasure to welcome Dr. Robert Wright to the show. He is the author of a couple of books that I think you’ll find very interesting. One is Transformed the Science of Spectacular Living and we recently had his lovely wife, Judith Wright on the show, and we touched on that book a little bit. But also today I want to talk about his other book, which is Beyond Time Management, Business with a Purpose. Bob, welcome. How are you?
Dr. Wright: Great Jason, thank you very much.
Jason Hartman: Well, it’s a pleasure to have you on the show and I always like to say where our guests are coming from and you’re coming to us from Chicago today, right?
Dr. Wright: Looking at Lake Michigan as we talk.
Jason Hartman: Well, let’s start where — where you like. You know maybe since the individual is really the foundation of their business and you know I just want to kind of make a point that even if someone is not in business for themselves — technically, we’re all in business for ourselves. We have a job. We’re basically selling our services to our employer, so certainly time management and — and transformational living can be valuable in either case, but — but you know maybe let’s dive into transformed a little bit because you know it all starts with the individual, doesn’t it?
Dr. Wright: For sure and you know we work with a lot of entrepreneurs and they’re forced into transformation. Very few entrepreneurs when they started out in business, planned on being sales people. And some of them continue to deny the fact that they’re sales people, and that’s one transformation that pulls things out of us that we never dreamt we would have to encounter.
Then there’s the leadership transformation where I have to get my work done through others. So, business is the coolest tool of transformation.
Jason Hartman: Yeah, it — it forces people into transformation just because of the pressure of the market place. That’s an interesting prospective. But what is transformed? What is the science of spectacular living?
Dr. Wright: Well transformed comes off of — on — on a study of people who actually transformed. And one of the key characteristics of transformation is you’re doing something you never dreamt that you would do and we love watching people stretch and go from being shy accountants to becoming national policy leaders. It’s — it’s a great joy to — to work with an executive coming fresh out of their MBA and then becoming a C level executive in a public company.
Jason Hartman: Okay. So — so you — you studied these people and — and watched their path as they were going through this transformation, but what — what — what can the individual do? I mean what are some of the take homes as to what they can do to move forward in their business or career?
Dr. Wright: Well for starters, we’re all scanning the environment to know what we need to do to take our business to the next level, whether we’re employees or entrepreneurs. What we don’t know how to do is to scan our inner life and take the one tool over which we have the most control, which is ourselves and develop it.
So, the key element is to begin to notice my inner world while I’m noticing an outer world. We call it identifying your deeper yearnings and then to — to learn to engage more and more in your life in a way that causes you to learn and to grow and to actually strategically develop yourself as you would your business.
Jason Hartman: So, taking this on from a — really a business like prospective then I guess is what you’re saying, but what are some of these steps in this transformation that occurs? I mean, the biggest obstacle we all have is overcoming ourselves, isn’t it?
Dr. Wright: Yeah, absolutely. Let me give — let me give you a story and then I’ll identify the steps that went into the story. So the — an employee of one of the largest human resources consulting firms in the world came in to see me and said that he wanted to become an outward bound instructor, because we all have these magical solutions and if I can find this thing or that thing it’s going to make me happy, which is total hogwash. It’s really about me engaging fully in whatever I’m doing.
Jason Hartman: Sure, sure. And — and — and I just want you to explain Bob, for those who — most people know what outward bound is, but just briefly [voice over].
Dr. Wright: Well you just got to go to the wilderness and teach people about wilderness survival as opposed to — to human resources consulting.
Jason Hartman: Right, quite a difference.
Dr. Wright: Right — it – one hundred eighty degrees. And — and when I dug into it, I found out that he had just gone over one hundred thousand dollars — over on a one hundred thousand dollar job and the partners weren’t amused and they told him that he was no longer on the partnership tract, because they considered that one hundred thousand dollars out of their pockets. And as I dug into it, I found that he wasn’t really winning at work. Not only was he not winning at work, but his wife had found another apar — apartment. She was going to move out and divorce him, telling him that she did not want to bear his children.
So, his wife was really a mess and he wasn’t really addressing it. So the — so — so the first thing we did is we — we taught him to start identifying his inner world with his primary emotions, which awakens your deeper yearning. So, fear for anger, sadness and joy, are very important elements of business but most people don’t know how to identify in path.
Well he started noticing his emotions, engaging more fully at meet — in meetings at work. He became what they call a net giver in the firm. He had been criticized as not really helping other executives. He became a net giver, learned how to sell. As we worked with him, he was back on the partnership track. He was recruited by the elite firm in his field to teach that firm how to sell and he went from being an — an MBA account — CPA mousy kind of accountant to the point where today he is a national policy leader in his expertise. He is back together with the woman who was going to divorce him and their daughter is studying overseas right now.
So — now, he’s written — defining books in his field and is just looking at ways to take his field to the next level beyond what most people are even considering possible. That’s a significant transformation that began with him becoming conversive with is inner world.
So that’s — that’s the first step is to — is to recognize your deeper yearnings, to ement — engage more. As we engage, we become aware and the third step, is we become aware of the world programmed, and out limitations that we all have them are programmed in. Then we begin to assault that program and we begin changing.
The thing that most entrepreneurs face is learning to be sales people. There’s all kinds of programming against asking for things that — that — that are required of effective sales people. And so we begin to assault that program and we begin to actually reprogram — we call it re-matrixing, and then it’s — we’ve really begun changing and then we have to dedicate to maintain those changes.
Jason Hartman: Re — re-matrixing, can you — can you dive into that a little bit more? I mean, what is the — that everyone thinks it’s a move of course, probably, but what is — what is the matrix — you know I guess it’s — there’s one that one has now that program — that —
Dr. Wright: Um hum.
Jason Hartman: — a lot of times it’s a hidden program, and then one that one says they want to have. So, what are the differences like? Because you’ve got some diagrams in the book, and — and can you give an example of the — is — is there a before and after matrix?
Dr. Wright: Well let’s — let’s go back to the very beginning. When we’re born we have billions of neurons in our brain that are not connected. These — this is potential. As we have an experience, we begin having those neurons fired together and wired together with repeated patterns.
Let’s say our mother is chronically afraid and mom and dad believe that — that — that life is — is a struggle and that there is not enough money to go around, not enough love to go around, whatever it is. They’re communicating that to us in their attitudes and ways of being and so our neurons are firing together but that’s the nature of reality and that’s — that’s the — it’s the nature of who I am and what I can expect from the world.
So, imagine that some of these fired together may become like a path. Well now imagine that the patterns repeat themselves more as we go to school, as we live our lives, that path becomes a road. The road becomes a highway. Our neural energy, our impulses flow along those highways and define what we call who we are and who we’re not. So the matrix is that pattern of highway. So imagine a three dimensional road you know, highway map that’s in — in our — in our skull that it is determining where the — the patterns – where — where the energy flows that determines what we do, what we don’t do, what we think, what we feel.
So then re-matrixing is identifying the places those don’t go that we would like to go and then developing new pathways to go to the places we want those roads to go starting with to firing together that developing the path, the road and the highway — the super highway, and that’s the re-matrixing, and often times it requires going against unconscious beliefs that we’ve built into our system.
Jason Hartman: Very good points, very good points. I guess it’s like the old concept of the — the context versus content, isn’t it, where we — we all have this sort of system — this belief system, really this context in which we all live. We fool around, changing the content of our lives, but a lot of times it doesn’t really change much because that overall belief system is still the limiting force. It’s the back drop, it’s the context with which everything is derived, right?
Dr. Wright: Well actually — and it’s — it’s actually even worse than that because we have the elusion that life is getting better. It’s called the hedonic treadmill, but the fact of the matter is, if you win the lottery or become a parapalegic. Within twelve months, your enjoyment of life was exactly the same as your matrix has determined.
Now, this is Nobel Prize winning research. This isn’t me making this up. And — and — and — and so, it — the — the real trick is, changing the context as you’re putting it, is changing my capacity to enjoy life.
Jason Hartman: Change — changing the capacity, yeah. The context is that it has a certain size to it and that can only hold so much, but — but yet, I love that hedonic treadmill point you make because you know, we talk a lot about economics on my various shows and the consumer price index how they use the he — hedonic adjustment. So — so, it seems like things are getting better and that really can cause, with the hedonic treadmill, cause a lot of time wasting. It can right, because people are constantly going — gravitating toward the wrong thing, the — the wrong end you know. Oh they think, oh yeah, this is going to make it work, this is going to make it work and then months later, they realize well, things didn’t change too much did they?
Dr. Wright: That — if you imagine a horizontal line and then we have a curve that goes up above the line and then it goes down below the line equally, above the line, below the line, above the line, below the line, the — the flat line is our enjoyment of life. That — the way we fool ourselves is we remember the times that it went up and we forget the times that it went down. And — and that causes us to make up stories about things getting better when in fact, they haven’t changed at all.
In terms of our capacity to enjoy life, you may even be making a fortune of — in — in dollars and cents, but your enjoyment to that fortune is a fixed entity or a fixed — fixed amount such as the context you’re talk — the context determines what you’re doing there. To change that context is personal transformation.
Personal transformation requires that I can take the up curve and extend it as far as possible and clip the bottom curve so I eventually can change the slope of that line up. And — and for people to understand that, I ask them how fast they’ve driven? And most people in most rooms haven’t gone above one hundred fifty miles an hour. But no matter how fast you’ve driven — there was a point of which your fear requires you to take your foot off the gas, and if you really want to change that slope, you have to keep the foot on the gas faster and slow down less.
Jason Hartman: Very good points. We’re — we’re masters at deceiving ourselves, aren’t we, Bob?
Dr. Wright: Absolutely. And — and that’s the nature of our unconscious mind because it believes that sameness is desirable. I’m alive today, it could be worse. So, your unconscious mind is planning to deep six any of the good plans that you have.
Jason Hartman: Okay. What else? What’s next?
Dr. Wright: Well, in entrepreneurs and careers — so luck is a wonderful place for us if we — if we awaken to that inner world to identify where we’re afraid in meetings and to step into that fear to learn to do the things we’re afraid of and — and fear is part of how the unconscious mind saves our life in dangerous situations, but it’s time to save our life in situations of minimal danger.
So, one of the key things is we need to develop a — an intermittent relationship with our fear, so that we can stretch beyond what we would normally do. If you fold your hands and you have one thumb on top, and — and refold your hands with the other thumb on top, it’s mildly uncomfortable.
Well transformers learn to live with that level of discomfort. It’s the same thing in deliberate practice studies that under Erickson, I think was his name, has demonstrated that deliberate practice is necessary. We have to put both time in and we need to continually challenge ourselves.
The same thing is true in my leadership, in my relationship at home, in my relationship in a meeting. Do I engage at — at that next level of discomfort where I’m facing my fear and shaving the slope of that hedonic enjoyment?
Jason Hartman: Great points, great points. So — so, business is a great place for transformation but you titled of the book Beyond Time Management, Business With Purpose, what — what are you getting to there?
Dr. Wright: Well, it — the people that have a deeper why — so think of purposes why we do what we do? Most of the world focuses on what, rather than how and why. Why I do what I do gives meaning, gives fullness and it’s the why that causes me to go beyond myself. Those are — the boxing movie with Russell Crowe, Cinderella Man, he — he was a failed boxer when he was single. He gets married and he has kids and — and he’s desperate and he suddenly becomes a championship boxer and they’re interviewing him and he — they said, well why do you box? You know, why aren’t you boxing better? He says, milk. What do you mean, milk? He says I want milk for my kids.
Jason Hartman: All right. Okay. I thought that — that could be a milk commercial.
Dr. Wright: Yeah. But — but the point is, is he had a why that he hadn’t had before. Now we look for an even — even bigger why for society and for our world. So, the — the — the business people that tend to transform have bigger whys. They have a why for themselves, which is to learn to grow, to love more, to be loved more, whatever that is that’s the deeper yearning in transformed. And — and — and then they also have a — a bigger why for the rest — with the rest of the world.
In — in our book Transformed, we talk about the transformational engagement continuing because if you really want to have a great career, a great marriage, great parenting, you have to learn to engage with meaning, and when you have that greater why, than each interaction takes on a new level of vitality and possibility for everyone in the interaction. So that’s transformative engagement.
Jason Hartman: It sure is. You know, well the — the why is more important than the how, and I couldn’t agree with you more on that, because the why is what will keep getting through the hard times versus the how and — you know that — that really reminds me Bob, I — I was interviewing Dennis lately about one hundred fifty episodes ago on one of my shows, and you know I was a big fan of his and still am, and — and what — what struck me is that years ago, it seemed like in the — in the area of — we’ll call it motivational speaking, we used to have the — the big names, the Jim Rohn, the — the Zig Zigler, Denis Waitley, etcetera and they were generalists. They were motivators and it seems like now everything is very specific, very how to and I think we’ve kind of come away from the why a bit in the past couple of decades, at least that’s my sense of it.
Dr. Wright: Well, people are getting more and more obsessed with the how as technologies are improving, but — but the interesting thing in our study is we’re studying people that over a period of twenty and plus years, so that we’ve actually gotten to work with people from before their time their children were born, to the time that their children are in college and actually becoming leaders in our programs.
So, most of those guys are inspirational speakers. They get you excited about why or how, whatever it is. What we really think is important is the follow-through, it’s practicing day-by-day, moment-by-moment. It’s learning to — the skills is because transformers not only have the — the — the why in place, but they have the how that is moment-by-moment strategically aimed at their re-matrixing. So they’re constantly stretching into their potential.
So transformers invariably have strong why and their how is much more specific and strategic. It’s not just about getting excited but it’s really about durability. It’s realizing that life is a serious marathon, not a sprint.
Jason Hartman: Yeah, it — it most definitely is. It most definitely is. Well, what else do you want people to know about your work? I mean you have this — just a — a lot of depth to your work. You know you have courses and programs on so many topics, really every area of human development, it would seem. You know, I mean you’ve been doing this a long time. There’s a lot of depth here, we — just the – the — the kind of free form to tell people what — what you want them to know and just any other take always you can share with us that are very valuable.
Dr. Wright: Well we started developing our methodology with consumer research back in the early ‘80s. I had a two year waiting list and so we had to develop curriculum to empower people to be able to operate on their own and put together a system. And so transformed is — first of all, the study of people that used our system way more effectively than others to do things they never could have imagined doing, such as the one story I told you. And — and — and so that’s — what’s really important is people understand that their — no seminar is going to do it. No coach is going to do it. It’s you that’s going to do it, and you need great seminars that will help you strategize. You need the right coaching to help you on your day-to-day application, and just like any Olympic athlete, you need to be working out with other athletes that are doing it with you. That’s why we have all those different disciplines because if we have singles, they want to be working with other singles who are working on single hood for transformation or parenting or entrepreneurs or sales.
So all of our curriculum developed out of our desire to help people transform in all areas of their life.
Jason Hartman: Right. Yeah, yeah excellent point. I — I just want to ask you kind of one other area that you might cover before we wrap up here and that is the area of emotional intelligence. I’m not sure if Daniel Goldman coined that phrase or not, but certainly became a popular phrase. And you talk about it and address it quite a bit, too. First of all maybe for the listeners to define it, what does it mean and — and how can it be used?
Dr. Wright: Well, it — it’s generally referred to as social emotional intelligence now days. Emotional intelligence is the capacity to know what’s going on inside of me emotionally, to regulate my emotions up or to regulate them down. In other words, to get more excited and engaged or more calm and more peaceful?
Social intelligence is the capacity to read the emotions of those outside of me and to help them get more excited and engaged or relaxed of these very important leadership skills. It’s proving to be the most important leadership skill in some — like some accounts eighty five percent of big time CEO’s success is social emotional intelligence. And so transformed, by its very nature, teaches you to recognize your emotions and those of others, because that’s the first step in tapping your deeper yearning. See, it’s about your own journey. It’s not about my journey or somebody else’s journey. Mine might be inspirational and useful to you but it’s your capacity to follow your inner urges at — at — at which goes right along with your emotional intelligence that causes you to challenge yourself, to learn, to grow, to discover aspects of yourself that you had thought were not you. So — so emotional intelligence is central to this game. It — you — you can’t be a transformer by our definition without some degree of emotional intelligence.
Jason Hartman: So — so, that’s interesting. Incredibly important thing, isn’t it?
Dr. Wright: Right now, Harvard Business Review says in tough economic times, soft skills go away. The most frequently accessed article that they have now is the ’98 article by Goldman on social or emotional intelligence, and that is a blow away factor to them.
Jason Hartman: Explain that? I — I — you’re say — you’re saying that the soft skills — now Harvard is saying that the soft skills aren’t that important —
Dr. Wright: They — they go, oh no. They go away. People stop accessing those articles in tough economic times.
Jason Hartman: Oh, and they live for — they live for the technical stuff?
Dr. Wright: Right, and they look for the how.
Jason Hartman: Right, I go it. Okay, yeah.
Dr. Wright: They look for the what. This is the first time that there’s been an economic hard time that the — that — that a how or a what is not the most accessed article. In fact it’s an old article, in ’98 like old.
Jason Hartman: Excellent. Yeah, that’s — that’s — that’s — yeah, good point. Give out your website and tell people where they can learn more and where they can get your books.
Dr. Wright. Well, Bobwright.com. They can get a couple of free chapters and they can get the book at Amazon. They can get it at Barnes & Noble online or in the stores if it’s still there and — and we would love to have them come and join us for our introductory weekend where we do a fantastic in-depth dive to social emotional intelligence. So in-depth that national and state leaders in social emotional intelligence have chosen to take our course thinking it’s the strongest one they could — they found.
Jason Hartman: Excellent, excellent stuff. Well Dr. Bob Wright, thank you so much for joining us today and some very good advice for successful living, both personally and professionally, and we really appreciate you joining the show.
Dr. Wright: Well, thank you Jason.
Female Voice: Have you listened to the Creating Wealth Series, I mean from the beginning? If not, you can go ahead and get Book one that’s shows one through twenty in digital download. These are advanced strategies for wealth creation. For more information, go to Jasonhartman.com.
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. (Top image: Flickr | tr.robinson)
Transcribed by Debra
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When the Fed Reserve Levee Breaks: Inflation!
The Jason Hartman Team
Transcribed by Debra
