Announcer: Please note disclaimers at end of show. 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 than you ever thought possible.

Jason is a genuine self-made multimillionaire, who not only talks the talk, but walks the walk. He’s been a successful investor for 20 years and currently owns properties in 11 states and 17 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 Episode No. 149 and this is your host, Jason Hartman. Today, we have an exciting show with – well, gosh, it’s hard to title this guy because he’s got quite a few titles, but it’s Frank McKinney. He is a very interesting guy, an upscale real estate developer, building incredible mansions and creating all kinds of value where really there was none before, kind of out of thin air. You’ll like this show from many perspectives. It’s really not necessarily a real estate show, although we’re going to touch on that. But it’s about marketing, spiritual growth, and philanthropy, all kinds of great things; motivation. Just some neat stuff we’re going to cover, quite a wide range of topics with Frank today.

And before we do that, our next show has Dr. Denis Waitley, one of my all-time favorite mentors, where we’ll talk about The Psychology of Winning and The Seeds of Greatness. I discovered Dr. Waitley at age 17 and he really did change my life, so I think you’ll like that show. That’s one of our every tenth show that’s on a totally non-financial topic. But as I always say, it always relates to finances in some ways.

We are moving into our new office tomorrow, so I’m very, very excited. They finished putting down the carpeting today and just getting the final touches on it. It’s really exciting. I’ll post a picture of that probably on our website. It has a huge conference or sort of seminar training room. Maybe we’ll have some events there coming up soon.

And speaking of events, our next Creating Wealth in Today’s Economy Bootcamp is on February 20. That’s a Saturday, February 20. Register at HYPERLINK "http://jasonhartman.webimpakt-green.com" www.JasonHartman.com. And the Masters Weekend, of course, March 6 and 7. We’re going to do one day on real estate and finance, where we’ll have asset protection and all kinds of gurus on that subject, area managers, property managers, etc. And then we will do a second day, Sunday, which will be more focused on internet marketing, growing a home-based business, or small to medium-sized business. And I think you’ll really like this Masters Weekend. It’s the first one we’ve done this way, so it’s really special. In one weekend, you’re going to learn all about creating wealth through real estate and creating income through a side business that may well grow in to be a big business for you.

So that’s it. Let’s go to the interview with real estate artist, marketing guru, and philanthropist and motivational guy, Frank McKinney. Here’s the interview.

Interview with Frank McKinney

Jason Hartman: It’s my pleasure to welcome Frank McKinney to the show. He is a real high-end marketing genius. He has a tremendous rags-to-riches story. He’s going to talk today about bubbles and timing cycles in the market, and also about that very important spiritual and mental mindset that can lead to success or failure in business and in real estate. He’s just a really, really interesting guy. I’ve heard him interviewed before on other shows and really want to welcome Frank McKinney to our show today. Frank, thanks for joining us.

Frank McKinney: Fantastic opportunity to be here, Jason. I know some of the guests that you’ve had and I know you’re heard around the world, so I’m honored to be sitting on the same stage.

Jason Hartman: Well, we’re honored to have you.

Frank McKinney: The stage we’re sitting on, by the way, for those who are tuning in, I am talking to Jason from my oceanfront tree house office. This is where I’ve written all my books from, five books, and where I design all of our oceanfront homes from, and so it’s a beautiful setting. It’s 23 feet above sea level, so for those of you that are listening in a place that’s cold and dreary, just think of me sitting up here looking out over the Atlantic Ocean.

Jason Hartman: You’re making our listeners very envious there, Frank. You have a tremendous story and congratulations on your success. You have taken and built such a phenomenal reputation for really creating a whole sort of image and just a persona that markets these really, really high, high-end properties. And right now, you are close to selling, I believe, the most expensive green or environmentally friendly home in the world, right?

Frank McKinney: Yes, let’s delineate a little bit for your listeners. I am the creator of these magnificent, one-of-a-kind oceanfront homes, literally artistry that can be found on a sun-drenched canvas known as the Atlantic Ocean. And I do it, Jason, all on speculation, so that’s my risk, my dollars at risk there. I have no partners. It’s me, the bank, and the IRS. I’ve been at it now since 1986, starting back then with a $50,000 fixer upper in a pretty bad part of town down here in West Palm Beach, Florida.

And now, almost 23 years later, we just finished, again on speculation in a market like this, the largest at over 15,000 square feet, and the most opulent at over $29 million home, that’s been certified, triple certified green by the United States Green Building Council, the Florida Green Building Coalition, and also Energy Star for Homes.

And so I think what’s great for your listeners to tune into is okay, so wow, Frank, you’re taking this huge risk. I’m building on speculation. For those of you who don’t know, I’ve creating these houses for all these years without knowing when I’m going to get paid. There is no buyer in mind, no buyer waiting, I should say, when we’re finished with these homes. So kind of like “The Field of Dreams,” build it and they will come, and that’s what I’m hoping here. That’s what I’m believing. I have believed it for nearly 25 years.

And so the most important thing I’ve become familiar with, that I have embraced – I can’t say that I’ve mastered it, Jason – but that is exercising of one’s risk tolerance, one’s risk threshold, exercising that risk threshold like a muscle. Eventually, it does become stronger and able to withstand greater pressure.

So for the common man that says, “How in the world can you take this risk in this economy, building a 15,000 square foot, $29 million home on speculation without a buyer?” and the answer is quite simple. I didn’t start with a $29 million house. I started with a $50,000 fixer-upper. I see you’ve interviewed some great people and one of my favorite authors is the author of Blink.

Jason Hartman: Oh, Malcolm Gladwell, sure.

Frank McKinney: I’m sorry. I drew a blank there. Malcolm Gladwell. And in Blink and in Tipping Point, his new book –

Jason Hartman: Outliers, I think. That’s the last one out.

Frank McKinney: Oh, in Outliers and Blink, I’m sorry. In Outliers, he says you have to do – to become an expert at anything, Gladwell says, you must apply it yourself for 10,000 hours. And if you do that math, that’s five years of a career. And really, for the first five years of my career, I didn’t do a house worth more than $100,000, Jason. I got really good at it.

Jason Hartman: So you were doing really cheap fixer-uppers. That’s an amazing start.

Frank McKinney: Taking it to the bank day in and day out. Taking my lunch pail to work day in and day out. Nothing flashy, not overindulging in debt, not overindulging in lifestyle, not charging it today and paying for it never. I live a very disciplined life. I kind of sacrifice today for a better tomorrow. And now, turning the page 23 years later, we’re able to take what is perceived as being an enormous risk because we took so many smaller risks many, many years ago.

Jason Hartman: That’s fantastic, Frank. So tell the listeners, if you would, when you went from that first five years, or as Gladwell puts it, the 10,000 hours that you put in – and for most entrepreneurs, they probably do the 10,000 hours in about two and a half or three years, I would say because they love what they do and they’re working all the time. But work is really play for someone who has passion about it.

But in that first five years, what was the jump? How did you suddenly go from $100,000 fixer-upper houses that you were buying and selling on into the next? What was the next move up and how did that occur?

Frank McKinney: Here’s how it evolved, and I want the listeners to pay very close attention to the fact that while I was doing those smaller homes, Jason, I wasn’t longing for something more. I was very content with creating and building these little first-time homebuyer homes. I basically was taking people who were renting the American Dream and I was teaching them how to own it for the first time. And what a wonderful way to be in business, to teach people how to own the American Dream, and then to provide them with a piece of the American Dream.

And after five years of getting really good at it, and we were doing 20 – 30 houses a year and doing quite well, nice margins on our little sales, I turned to my wife. I said, “Honey, we’re pretty good at this. I get this. I am now seeking a greater challenge. I don’t want to deviate outside of my niche as far as the real estate market, but let’s simply add a zero. Let’s simply add one zero to the acquisition.” So if I was buying houses for $75,000 and selling them for $100,000, let’s buy one for $750,000. Let’s fix it up and let’s sell it instead of for a million, let’s sell it for $2 million. Let’s create a million dollar margin.

And I felt, after hundreds of smaller transactions, that this was a natural progression, and when you step back and look at it, it was the same application, Jason. It just was on the ocean instead of in a burgeoning or struggling neighborhood. And it was just one zero and that’s all I did is I built up a decent savings. Again, I didn’t over leverage so it was easy for me to go to the bank and borrow the money I needed to complete the project because I put a lot of my own money where my mouth was. I didn’t believe in other people’s money. As a matter of fact, there’s a long chapter in my new book, Burst This!, that talks about – it’s titled, as a matter of fact, The Most Obscene Four-Letter Word, and it’s not the “F” word or the “S” word. It’s the “D” word, the “debt” word.

And because I manage my debt very well, I was able to take on that first project as this – it was both evolutionary and revolutionary as far as me making that big jump. I didn’t jump from $100,000 to a $200,000 or a $300,000. I jumped from a $100,000 house to a $2 million house because I felt I’d cut my teeth, I’d walked the walk and I felt that I was ready.

Jason Hartman: That’s great. So Frank, where did you go after $2 million? Did you do several of those and get kind of comfortable playing in that pond, and then go up to $5 million, $10 million? Was it just sort of that progression like that?

Frank McKinney: The first house we did, the $2.2 million house we did, Jason, was in 1991, and since ’91, we have done 36 homes on the direct oceanfront, 36 projects, 36 properties. So that’s more or less two a year. And we very slowly went from $2 million to $4 million, and then $6.5 million, I remember, and then an $8 million. And then we broke through that $10 million barrier back in 1996. Then we continued to slowly but surely escalate up to where the most expensive one we’ve done was a $50 million house back in 2004.

So we’ve kind of bounced back and forth between – actually, we haven’t gone below $7 million since that very first project. With the average price of a home that we’ve done being around $15 million, the interesting thing and the longest chapter in my new book, Burst This!, and we’ll talk about the thesis behind this in a second –

Jason Hartman: Right. I’m going to ask you about that in just a moment, but go ahead.

Frank McKinney: But the longest chapter is the marketing chapter. How is it, Frank, now I’m selling to an infinitesimally small percentage of people who can afford my artistry, and we’re talking about 25,000 – 35,000 people out of a worldwide population of 6.5 billion that can afford what we do for a living. And so we have become very keen on our ability to, as you referenced in the introduction, brand our homes.

I will tell you that I’m not a builder, I’m not a developer, I’m not a flipper, I’m not a rehabber, I’m not a contractor, I’m not a wholesale. I’m an artist, plain and simple. And the artistry that I create is the type that people can live in. I mean van Gogh, Renoir, Monet, you can hang them on your wall, but a Frank McKinney home is unlike anything you’ve ever seen before. You get an emotional return from living in the art, and most often, Jason, our buyers, our owners end up selling their house after five or six years. They get a financial return. They end up making more money selling the house than I did selling it to them.

So it’s important for the proprietor, the entrepreneur, almost regardless of field, to consider themselves like an artist approaches his craft. It’s kept it fresh for me all these years and it really has created a brand that people long for.

Jason Hartman: That’s fantastic. Well, Frank, you have two great books. They’re both out this year. First, I want to ask you about Burst This!, which is about bubbles, Frank McKinney’s Bubble-Proof Real Estate Strategies. And then I want to ask you about your more spiritual book entitled The Tap. So tell us more about Burst This! You say that people create their own bubbles. First, maybe the market cycle thing that you’ve studied, and then how people do it psychologically, right?

Frank McKinney: Yeah. Here’s why I decided to write this book. I had written two other books before, Make it Big; 49 Secrets for Building a Life of Extreme Success, which was kind of a philosophical book with real estate anecdotes sprinkled throughout. The second book was Frank McKinney’s Maverick Approach to Real Estate Success. And that was a 20-year ride from the very first property through the first 20 years of my career.

Burst This! was born from my just disdain and growing tired of hearing about the bubble and the negativity surrounding the real estate market. And so, what I did was I went back and I studied six distinct real estate cycles that took place over the last 35 years. Well, my mission was to sift out this kind of critical, recurring trends that highlight when significant opportunities are going to present themselves, and more importantly, signaling where history is going to repeat itself. And these cycles, how long do they last? What brings them on? And ultimately what to look for when we’re about to come out of one, which we are right now.

I just began to think, you know what, as I studied, I went through four of those six cycles. The other two I didn’t go through because I wasn’t in the business. I was too young. And I did very well in some of these cycles because I didn’t buy into the bubble mentality. I didn’t over-leverage. I created my own market. I created my own brand. I wasn’t a lemming. I took a contrarian approach. In fact, the whole first section talks about the importance of being a competent contrarian.

And really, the book, I think it’s refreshing because there are a lot of books out there – I think you’ve interview some authors that kind of predicted the crash and talk about how bad it’s going to be – and that’s fine. We’ve seen that happen. But how do you bubble-proof your real estate portfolio? How do you take advantage of these cycles? And how, truly, are most bubbles self-created, just like most opportunities are self-created?

Jason Hartman: So how is that?

Frank McKinney: Well, first of all, when I look to make money in real estate, I go in the office the direction of the old tried and true location, location, location. And I know that sounds crazy, but if you want to buy a home and be comfortable and live in a nice neighborhood with nice schools and all that, that’s great. Follow it. If you want to have a nice vacation home, follow the location, location, location. But when I look back over hundreds of transactions, the times I made the most money were when I went in that opposite direction. And I went into neighborhoods that people wouldn’t go into, or on the oceanfront.

I have never done a project in the town of Palm Beach. I’ve done plenty in Delray Beach. I’ve done them in Manalapan. I’ve done them in Gulfstream and I’ve done them in Ocean Ridge. You’ve probably never heard of those towns. You’ve heard of Palm Beach. You’ve heard of Boca Raton. Those towns that I just referenced are right in between. So I’m a firm believer in going and making a market where it hadn’t been made before.

Jason Hartman: So the question that kind of begs in my thinking, though, is that you have the power to do that because you are such a big force. You were either doing a large number of transactions or you were doing a few really high-end transactions. And that is, of course, risky what you did, I would say, but is that possible for the small investor, who just wants to buy one or two houses?

Frank McKinney: Listen. I bought one or two houses for the first three or four years, Jason. That’s all. I never looked to the next deal. I’m so hyper-consumed with the one I’m working on. That’s why, hey, listen; over 18 years, I’ve only done 36 transactions. That’s only two a year. That’s not a lot.

Jason Hartman: Wow, that’s amazing.

Frank McKinney: The dollars were big, but I’m a firm believer in carving your niche a little wider and a little deeper than most, but staying within that niche. And don’t be distracted or deviated outside. Everybody is tempted to deviate outside. And so, in times like we’re in now, these are the millionaire-maker days. These are low-hanging fruit days. And as Buffett says, when everybody is afraid, it’s time to be greedy, and when everybody’s greedy, it’s time to be afraid. Well, he’s putting his money where his mouth is. Just last week, he bought Burlington Northern Railroad for $34 billion.

You look at people. This is the time to embrace the opportunities, i.e. the risks that are out there because you’ll be handsomely rewarded. That’s what Burst This! talks about.

Jason Hartman: I couldn’t agree more, Frank. I think of course you need to be careful always and you need to be prudent, but these are the times, in these “bad economies,” where the opportunities are just so present, whereas in good times, it’s really hard to find an opportunity. When the market is booming, everyone has picked the first ten levels of low-hanging fruit, and now, there’s a lot of low-hanging fruit out there. As long as someone does the plan and does it correctly, a lot of opportunities.

And a corollary to that Warren Buffett saying is J. Paul Getty’s, “Buy when everybody’s selling; sell when everybody’s buying.”

So would you consider yourself a bit of a contrarian, then?

Frank McKinney: That’s the first part of a four-part book. Part No. 1 – I think you have your book right there – if you open it, “The Confident Contrarian.” And that takes some intestinal fortitude, but once you practice it and you sensitize yourself to the trend that is upon us and you see it for what it is, and you have the belief and the hope and the faith that your decision to say “yes” more than “no” to opportunities that are out there are going to pay dividends. Not immediately.

That’s why I really – there’s a chapter in the other book that we’re going to talk about, that talks about over-spreadsheeting your life. And one of the negatives of the information society that we live in, Jason, is this over-researching, this over-Googling. Don’t spreadsheet your life to death because what people do, especially in scary times – and mind you, the media has created times that are scarier now than they actually appear, or they appear scarier than they actually are. Believe me, that is something why I advocate you creating your own reality and not following the media created frenzy, the fear that’s out there.

But here’s what you’re doing. Here’s what you’re doing when you do that. You are psychologically, subliminally looking for a way or a reason to say no. That’s what you’re doing. And believe me, here’s the problem. With the information that’s out there, Jason, you’ll find the reason. You will find the reason and you’ll say, aha, there it is! I found it, so nope; we’re not going to do that project. Let’s just go ahead and sit in the cubicle the rest of our lives and play the 9:00 – 5:00 game.

Jason Hartman: Yeah, that’s really sad. And you know what that reminds me of, Frank, and I can’t remember the title of the movie – well, maybe it was called “Yes Man.” I’m not sure if you saw it, with Jim Carrey. What really blew my mind about that little comedic movie is that it just amazes me that so many of my friends and so many clients that I interact with, they’re so consumed with saying no to things, where if they would just say yes, yeah, things might go wrong, but just get out of your comfort zone. And when he had to just say yes to everything, look at the sort of opportunities that opened up in his life. The road was winding a little bit, and at first, it may have seemed like saying yes was the dumb thing. But ultimately, a lot of things really work out by just saying yes to them.

Frank McKinney: I have a couple of shorter chapters in the Burst This! book that talk about celebrating each humble victory as a triumphant achievement. What does that do? I mean small humble victories. Not asking your wife to marry you and she says yes, or having your first child, or doing your first mega real estate deal. Small, little, humble victories, and considering them triumphant achievements because what that does, Jason, is it builds confidence. And when we have confidence, we will say yes more than no. When we say yes more than no, what are we doing? We’re exercising our risk tolerance. Like that muscle, it eventually becomes stronger and is able to withstand greater pressure.

Jason Hartman: And we’re getting out of our comfort zone. Very good advice, Frank. Anything else on Burst This! before we talk about The Tap?

Frank McKinney: Well, I think that it’s a very, very timely book. It was supposed to be a book that was 250 pages long. It’s over 376 pages because I really went deep into these cycles so that you can use it anecdotally as a guide and a compass when it comes to either buying your first investment property, stepping up your margins, if you will, or you’re buying your first home.

Jason Hartman: Tell us about The Tap. Here you get more into the spiritual and the psychological side of success in life and success in real estate, too. What’s it all about?

Frank McKinney: Well, you can apply all the platforms and the suggestions in the Burst This! book or some of the other guests that you’ve interviewed that have all these nuggets, wisdom nuggets of success, and then at the end of the day, what’s it all for? Listen. I went to four high schools in four years, and it wasn’t because my father was in the military. I was asked to leave every single one of them. I came out with a 1.8 GPA and didn’t have the benefit of pursuing a formal education. Came down to Florida with a $50 bill and started digging sand traps on a golf course by hand.

And here, so many years later, we’re this real estate artist and building these beautiful homes. Why? I went back and studied. I studied my mentors, people I look up to, and I came away with a very interesting conclusion. If you look at the cover of the book, The Tap, and it is the hand of God coming down from the Sistine Chapel, and instead of touching Adam’s finger like it does in the painting, Michelangelo’s painting, it’s touching you on the shoulder. And in The Tap, Jason, I expand upon a wonderful life mantra. Regardless of your religious preference or even if you have one, there’s a great passage from the Gospel of Luke 12:48, that says in paraphrase, “To whom much is entrusted, much will be expected.”

And so why is it that certain people’s prayers for more – and let’s face it, if you pray, you do pray some form of prayer for more, more wealth, health, happiness, love, peace, relationships, for somebody you love or yourself. And I was curious. Why are my mentors, the people that I look up to seem to have it all? Why were they having their prayers for more answered when mine were going unanswered, or taking forever to be answered? And the reason became very clear to me. God rewards responsible stewards. Those who are responsible for the blessings that they’ve been given, whatever time, talent, or treasure blessings that they have, and are responsible enough to share those with those less fortunate, who hadn’t succeeded at their level, those are the ones who had the prayer for more answered.

So I contend and I prove it in the book. And the book is for those that want to succeed in the business of life, and that’s the most important business that we’re in. You can’t succeed in business and fail in your personal life. You can’t live that double life. It doesn’t last. That’s flashing the pan way to success.

And so in The Tap, I teach the reader how to sensitize themselves to what I refer to as life’s great tap moments, when God does come down, lays His finger on your shoulder, and says, “Jason, I’m calling you to more.” But here’s the condition of this certain tap and it’s not all about filling Jason’s garage with more cars, or his closet with more clothes, or his refrigerator with more food. It’s about taking some of the blessings that he’s been given and sharing them with those less fortunate.

Jason Hartman: Very good thinking. So being a responsible steward and just remembering that we don’t really own anything. We’re entrusted this money, this wealth for a certain amount of time, between the bookends of life, and we’re not taking it with us. So we have to make it work and make it productive in the world, and do good with it. Money is just a tool, isn’t it? It’s just something that we can use for either good or bad. We can horde it, we can be selfish with it, or we can do kind of like what May West says, money is like manure. It doesn’t do anybody any good until you spread it around a bit.

Frank McKinney: If you could, unless for those who are unbelievers, I mean no intention to threaten you or disrespect you, but assume you’re listening and if you believe in God and you could play God, wouldn’t it make sense that you rewarded those who were responsible with the blessings they already have? And when I mean responsible, I don’t mean responsible by putting it under your mattress or keeping it in a safe deposit box.

And I’m not referring just to material goods and blessings. I’ve run a charity house since 1998, called The Caring House Project Foundation, and we’ve built self-sustaining villages in the world’s most poor and destitute countries, like right now, our primary country focus is Haiti, which is the poorest country in the Western Hemisphere. I’ve built eight self-sufficient villages, which in Haiti, that’s combining orphanages, schools, and clinics and community centers and churches, and renewable food, clean drinking water, and houses, all in a campus-like setting.

Okay, so I’m using my treasure responsibly, but I’ll tell you what. Rewind 1998, when the only thing I was doing with my philanthropic self was I was feeding the homeless out of the back of a beat up old van, as a volunteer, one hour a week. And that’s all I had. I didn’t have the treasure. I didn’t even have the talent. I had the time and so that’s what I did. I signed up to serve meals one night a week, Jason, out of the back of a van going through the streets. And eventually, I saw the impact I was having, the little impact I was having, and I began to develop the talent for fixing houses.

And so I used to fix up houses for people, like an elderly woman who was incapacitated, an invalid, or shut-in, and we would go up and straighten her mailbox or put on a new roof for her, or some talent that I could share. I thought, wow, we’re getting good at that. And God saw us as responsible stewards for that blessing, and then the treasures started to come, and we didn’t stop. We started domestically by providing elderly homeless people for a dollar a month. I used to rent houses – in fact, I still have a few that we rent for a dollar a month. And I saw how good that was going.

Then we said let’s go the countries that don’t have a social service net. And so if you go to our website, you can see not only the beautiful houses we referred to, these beautiful homes on the ocean, but you can take a tour of some of the villages we built overseas. So that’s what I’m encouraging the reader to do is we all want to succeed, but if you want to succeed, lifelong succeed, in that business of life, try to focus a little bit on that “to whom much is entrusted much will be expected,” and you’ll be shocked at how quickly you sensitize yourself to these great tap moments and start to feel really good about sharing those time, talents, and treasures.

Jason Hartman: I would have to say that it reminds me, Frank, of what Og Mandino says. He says in his sort of prayer, if you will, called, “The Seeds of Success,” which I just love so much. And he says, “God, I realize that you always try me with a little first to see what I would do with a lot.” And that’s the key. Tony Robbins says that when you give, it sets up your subconscious mind to know that there is more and that there is abundance and more is created out of that. So I couldn’t agree with you more with what you’re saying here. It’s very true.

So what else is The Tap about? Is that really the core of it?

Frank McKinney: That would be the core. I would tell you that, even if you’ve experienced a little bit of success and you think, “You know what? I’m feeling kind of empty. I don’t know. After all this work and is this all there is? I worked my whole life for this?” And Jason, I’ve sold to people like that. I’ve sold multi-million dollar houses to people that just have all the financial success in the world, who were miserably unhappy people. And so The Tap says, hey, you know what? This opens up a whole other side for life.

And I talk about the “7 Stages of Feeling the Tap, Sensitizing Yourself to these Great Tap Moments.” We’re in tough times now, right? We all agree we’re in tough times. We don’t have to repeat that. But if you had a dime for every time somebody said, or I did, or said, “Frank, when are we going to get out of this mess? How am I going to get out from underneath my debt? When is this country going to get out from under the mortgage mess?” You notice how many times I said the word “get?” We’re not going “get” out of anything. We’re going to give our way out, and to do that, you have to sensitize and feel these seven stages, and I’m going to go through them very quickly, and see what stage you’re at of feeling the tap.

No. 1 is no comprehension, no sensitivity to, no understanding for that concept of sharing. It’s not even on the radar. Step 2 says I understand it, but I ain’t doing it. It’s not for me. That’s for some other do-gooder. Stage 3 says, you know what? I get it and I’m going to share, but I’m going to do it begrudgingly. I’m an usher at a 7:00 a.m. mass. I’ll give you a visual. I pass the collection plate around and there are those people who would take that dollar bill and they crunch it up so small, it’s about the size of a quarter. And they dive it into the collection basket so I can’t see the denomination, and they have a scowl on their face. So “I’ll give, but I hate doing it.”

Stage 4 says I’m going to give, but I’m going to make sure everybody’s watching. So take a look at me, everybody. I want to be recognized. I want to be in the program. I want to be on the brochure, so I’ll give, but only when I’m being looked at.

Stage 5 says I’ll give, but only when the getting is good, only when I’m doing well will I share my blessings. And Stage 6 is a pretty good breakthrough and Stage 7 as well. That’s where it becomes the fabric, the part of your life, part of your business plan, Jason.

So there’s a reason I build these big houses. It’s so I can build a lot of small ones over in Haiti. When you get to that stage, you really, really make this significant breakthrough in life.

Jason Hartman: Yeah, and doing this work also keeps your eye focused on gratitude. I think gratitude is one of the key elements of success in people. People that are grateful for what they have, whether it be a little or a lot, and that’s always a moving target for all of us, regardless of what size game we’re playing, but people that are grateful just seem to be better adjusted people. They just seem to be happier. They’re much more appreciative, for sure, and it’s not really – you can be kind of constructively discontent, but grateful at the same time. Those are different concepts. I don’t exactly how to explain them, but they are different.

And I think in doing this type of work, it keeps us focused on being grateful and keeps us in touch with what other people are up to and where they are in our lives so that we have a perspective. Some people kind of lose that perspective, don’t they? They just hang around with their small circle of people and kind of don’t know what else is going on in the world, do they?

Frank McKinney: No. And there’s a great chapter in The Tap that’s been titled, “Often Happy; Seldom Satisfied.” It’s what you said. I’m happy a lot of times, but you know what? Either professionally or philanthropically, I’m not ever satisfied. And the day I become satisfied is the day, if you’re working for me, you ought to probably go look for another job because I’ve kind of lost the fire. There’s a dear friend of mine, John Assaraf, and others who are part of The Secret, while I love their concept of affirmation and attraction and positive thinking, there was a core concept that was missing from The Secret and that was this belief that if you sat on a cushion and cross your legs and got in kind of a lotus position and hummed a little bit, a BMW was going to fall down your chimney.

I felt it was a very materialistic approach, and for those who want those things, those goodies, so to speak, you can’t learn the secret until you’ve been tapped. You really can’t feel the full effect of that affirmation and attraction until you’ve been tapped, until you understand it’s not about the “I” and the “me,” Jason. It’s more about the “you” and the “we.”

Jason Hartman: Yeah, fantastic. Frank, really, we so much appreciate you coming on and sharing some of this great insight with us on your busy schedule. What would you say to wrap this all up for people?

Frank McKinney: Well, let’s have them go to a pretty interactive website that we’ve got, if they have the time, which is just my name, HYPERLINK "http://www.frank-mckinney.com" www.frank-mckinney.com. And there, Jason, you can see and learn a little bit more about the books we just talked about, or actually all five of the books that are written. You can take the tour of this new Acqua Liana, which is the $29 million home that we just finished, the green home, built on speculation.

By the way, these houses are furnished down to the gold-plated toothbrush in the bathroom, linens on the beds, and towels in the closet, so you’ll see a stunning home if you want to tour that. And just remember that if you’re in the real estate business, bubbles I believe are self-created. Be responsible with your debt and certainly learn more from the Burst This! book. And please, if you only had $20 to spend, I would encourage you to read The Tap and to feel that wonderful passage, “To whom much is entrusted, much will be expected,” working through your life.

Jason Hartman: That’s awesome. That’s a good way to leave it. Frank McKinney, thank you so much for joining us today. We really appreciate having you on.

Frank McKinney: Thank you, Jason.

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Female Guest Probably the most interesting thing I’ve learned so far is about the 1031 Exchanges. I thought that was an excellent presentation. It answered questions I didn’t really even know I had.

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Jason Hartman: Don’t wait to buy real estate. Buy real estate and then wait.

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End of Audio

Duration: 38 minutes