00;00;07;20 - 00;00;37;28
Unknown
Welcome back to the seven Figure Flipping Podcast. Today our segment is the Bottom Line where real stories meet real numbers. Each episode, we bring you real world investing insights, strategies, and stories from our own deals and experiences in the field. And today we're talking about some tactical technical business owner stuff cash conversion cycles. Cash flow management and multiple exit strategies.
00;00;38;05 - 00;01;08;20
Unknown
And then Doctor Sherry is going to share some really in-depth, unique perspective on persistence and why it's so important in real estate. So with that said Doctor Sherry, my co-host, welcome to the show. Thank you so much. So I love what you're going to talk about because it's how we want things to go. But when cash flow isn't the way that we want it to go, that's where the persistence comes in.
00;01;08;20 - 00;01;26;21
Unknown
And it's. I've had a lot of my own challenges over the past 3 to 4 months, and so I'm just going to share a little bit from what I'm noticing in myself and what I need to pay attention to. And hopefully it's helpful for everyone else too. I love it, I love it, I'm excited. I know a little a little about your story.
00;01;26;23 - 00;01;44;08
Unknown
You and I are in the same performance pod, so we get to kind of dive into each other's businesses weekly. And you're doing a great job, by the way. And I'm so confident in what you're doing. And I am confident that, in this next six months, your business will be literally the strongest it's ever been.
00;01;44;14 - 00;02;16;13
Unknown
And I'll tell you why. It's because we, the the real estate business is not hard as a concept. Business is pretty simple. You have supply and demand. You have something that people want and money exchanges and transactions happen. It's like it's pretty fundamentally simple. Real estate is unique in that it comes with a real hard asset, and that asset is typically the biggest purchase anybody's ever made in their life.
00;02;16;15 - 00;02;43;09
Unknown
And it's it comes with a big capital outlay, meaning we've got to bring a bunch of cash to buy the real estate. So if you're good at real estate investing and you're good if you have a business not just investing, being an investor, but if you're a business owner, you're probably one of the best business owners in the country if you're doing it well in any industry, because it is it's not the easiest thing.
00;02;43;09 - 00;03;05;08
Unknown
It is very simple, but it's not the easiest thing because of the cash flow, the cash flow management money's coming in big and going out big fast. So when we talk about the number one problem I see a lot of specifically house flippers have is cash flow. Everybody that I talk to gets into a crunch at some point.
00;03;05;10 - 00;03;24;16
Unknown
And it may be I mean, I can tell you I've audited somebody's business. They were freaking out. They're like, I have no money. I'm so broke. I'm not making any money. And I'm like, are you paying yourself like 10,000 bucks a month? Okay, cool. That's good. Step one. Love that. Okay. Let's see. What do you what inventory do you have on the books.
00;03;24;16 - 00;03;50;14
Unknown
And let's get some real numbers on equity. And we do the real numbers like $700,000 of equity. So so you're not broke. You're number one. You're paying yourself. But number two, you have $700,000 of equity. But the bank account reflects a small number that make that is like, I'm not going to be able to pay my bills. And it's a timing thing.
00;03;50;17 - 00;04;10;22
Unknown
It's like it's a cash conversion cycle and cash flow management thing. If I buy a if I, if I, if I spend money on marketing today, it takes me 59 days to sign a contract on average. So that's two months. Money goes out and for two months I don't need to sign a contract. Then I sign a contract.
00;04;10;22 - 00;04;30;22
Unknown
Two months later and I'm still spending money to keep the machine moving. And then when I buy that house, if I'm going to flip it, I buy that house. I'm not going to see that money return back to me for another 6 to 9 months. So we're talking. I spend money today and I don't get money back for 11 months as a house flipper.
00;04;30;25 - 00;05;01;09
Unknown
That's insane. Like, think about that. So this is why raising the right amount of capital for your deals is so critical. And the right amount of capital is probably about 107 to 115% of the actual all in cost per deal, depending on your price point. So that's part one. Most investors are not bringing in enough capital support. The life cycle of the deal, the true life cycle and cost of a deal.
00;05;01;12 - 00;05;33;18
Unknown
Okay, the second part is the in order to alleviate the cash crunch, you need to have additional tools that can decrease the cash conversion cycle. So for example, I can decide, you know what, I'm going to wholesale this deal instead of flip it because my business needs cash today. And I have those mechanisms already built into my business.
00;05;33;20 - 00;06;16;25
Unknown
Or like we did last year, I created a I made a create a finance strategy that brings meaningful cash into my business at the purchase. And I would explain never to blow people's minds right now, but I basically wholesale myself a house and make 4050 grand every time I buy it. So that decreases my cash conversion. Now that allows me to go out and buy land and put new mobile homes on it, which is going to take months for me to realize that money, the ability to get a couple deals a month are making me 40 or 50 grand each time, like fast talking, 3 or 4 week cash conversion cycles allows me to do
00;06;16;25 - 00;06;35;01
Unknown
these other things, but I feel it too. If I don't do quick turn deals in conjunction with my flips and I just keep my oh, I got another good deal, I got another, I'm like, crap, I got seven grand in the bank, I got pay bills, I'm dead serious. Like at one point in the past five months, at one point I had seven grand in the bank.
00;06;35;01 - 00;06;56;26
Unknown
Come. My bills are much more than that. So I was like, oh, we need to we need to turn some quick turn deals. But we can do that because we're we would just it's a tool we have. It's a part of our system. And and I look seven grand in the bank account. I'll just tell you guys like, I typically try to keep 75 grand or less at my operating account.
00;06;56;28 - 00;07;16;06
Unknown
And every month we sweep it all out of there and pay the owners, like, pay the owners like. That's the most important part. So I don't keep a bunch of money in the operating. I'll keep money in my rehab account and other things, but not my operating account. I try to keep that minimal. Three months of, OpEx probably need to have about 125 in there now.
00;07;16;06 - 00;07;43;24
Unknown
But anyways, the point is having a clear understanding of the cash conversion cycles and then creating tools inside of your business that allow you to bring in cash in a faster way. Condensing that cash conversion cycle is an important aspect of of running one of these businesses. I love what you're saying, Adam, because I have totally felt this cash flow crunch over the last few months.
00;07;44;00 - 00;08;18;11
Unknown
You know, it's a perfect storm. Like, for example, right now we have eight projects going on. Maybe closer to ten if we count the couple that we've had to switch dispositions on. But over the past few years, our strategy was flipping buy it, you know, get private money occasionally we would use an institutional lender and the challenge came when things weren't selling and things started sitting.
00;08;18;13 - 00;08;44;17
Unknown
And so now we've got these 4000 plus a couple of them. Anyway, with the institutional lenders, we have these 4000 plus loan amounts, multiple that are due every month that we weren't expecting to still have to pay, which is eating in to the cash flow to the other accounts that weren't expected to have to be tapped into. And it's it's nerve racking.
00;08;44;19 - 00;09;14;08
Unknown
And one of the things that I have appreciated about this perspective that, oh, you know, it's it's just a cash flow issue. And there's ways around that is it helps me my emotional like raw ness. It helps me be able to to realize that maybe it's not because I am such a sucky business owner and investor that I should just give up and never try it again, because that's sometimes where the extreme mind goes.
00;09;14;10 - 00;09;46;20
Unknown
Rather, and I love this, seven figure flipping has created a chat or a GPT called Rebus Real Estate business operating system. I have come to depend on it so much, and one of the reasons I love it is because I will literally type in there. I am feeling overwhelmed right now and it will respond. I understand, Sherry, but it's not because you're a horrible investor, it's because you just are not using the right tactic right now or something like it comes back logically, which is so helpful.
00;09;46;20 - 00;10;16;26
Unknown
And that's really what you're saying, Adam, is that there are some simple things that we or that I have learned that was missing from my overall business strategy that we are now putting into practice. And I can see how that's a game changer long term. Yeah. And I'm I'm I'm really excited for you in that. And you know you know I by the way Rebus saved me I'm speaking with Rebus on a daily basis in my own business.
00;10;16;26 - 00;10;41;11
Unknown
It's, you know, in these like, coaching businesses. I always hear these, gurus on stage. I always say, like, in our community, you can turn decades into days. Well, with I that's actually true today. Like, you're literally taking decades of proven expertise, packaging it up, putting it in a custom GPT or some type of AI platform. And now I can go get instantaneous information back.
00;10;41;11 - 00;11;08;05
Unknown
Obviously, as, as, Tony Robbins would say, like the quality of your questions are going to reflect the quality, your life, the quality your questions are going to reflect the quality of your answers. And a lot of these systems. But yeah, AI's really, powerful for that. And Sherry AI what's so kind of crazy? In 2021, 80% of our house flipping community was doing wholesaling.
00;11;08;08 - 00;11;32;03
Unknown
And what happened was like, that was a big upswing in the market. What you remember, I'm sure, and people could just sell contracts. It was crazy. And so they built this, this kind of, this extra tool in their house flipping business of wholesaling. And then what started to happen, like in the 21 beginning of 22, a lot of people started going, I can do it.
00;11;32;05 - 00;11;58;14
Unknown
All I have to do is buy it and just list it, cleaned it out and list it. So then you have wholesaling, selling the contract, assigning it 21 day cash conversion cycle to whole telling by cash. But then, you know, 2 or 3 weeks list it and it sold in 60 days. Maybe now today it's sold 9120 days, but still, that's a faster cash conversion cycle than flipping the house.
00;11;58;17 - 00;12;18;29
Unknown
And then the last one is obviously go on the full, some level of the flip. I don't know if you remember J. Scott Sherry, at our last event where J kind of said, I underwrite every flip for one of these five exits, and it all related to time, which what it really meant. Is it all related to cash conversion cycle?
00;12;19;02 - 00;12;37;22
Unknown
Yeah. And that business and I think that that's super powerful. Like we got a house, we opened up the Atlanta market this past year because we'd been buying so many like foreclosure houses in Georgia. And we're like, dude, we could turn on offer pad. We can start flipping, like, turn off the market. I literally smell like 30 grand in a week.
00;12;37;22 - 00;12;57;09
Unknown
Like, let's go. Well, we got a house and it I got in ahead of my skis. I was like, dude, I can't buy this house is like a hundred years old. Like, like, there's all kinds of rules in this. Like, I just didn't. I quickly realized, like, we I was not capable of having an effective flip on this particular property in this area.
00;12;57;12 - 00;13;18;00
Unknown
There was some nuance I didn't know. I said, you know what? Let's just wholesale this thing, and I don't I ain't have like a developed buyer's list and and, you know, I lanta Georgia, I just went on the investor base, pulled some buyers out of it, posted on the, Facebook. And, you know, it was a guy reaches out, this guy named Jeff is a the bean.
00;13;18;00 - 00;13;37;13
Unknown
He did a bunch of properties in this neighborhood. It was like, perfect. He's like, I'll buy that. And we made 15 grand on the wholesale fee. And that was good. 15 grand. But in like two weeks, 15 grand of cash into the bank account. So to us, that was that. That's how we're looking at a lot of these deals is, what do we need right now in our business?
00;13;37;13 - 00;13;59;14
Unknown
Cash. And we can see, I can see I've got hundreds of thousands of dollars coming down the road. Like I can see it. I'm very confident. And then, based on our underwriting ability. But I also have to be cognizant of my cash and my cash conversion cycle. So I do two other things, though. Sherry is for opex. We threw a pentacle, our bank account, and Bill did this.
00;13;59;14 - 00;14;20;24
Unknown
So I didn't do this, but we have $100,000 business line of credit that we renew every year. And I personally, I'm like in the middle. Like, he like one end of the spectrum is like Andy McFarlane pay everything off cash moats. You know, it's like moat conversation. The other end is probably bill. Bill get levered up and and have big growth.
00;14;20;24 - 00;14;38;02
Unknown
Right. I'm like in the middle of that. So I don't use that line of credit unless I unless it's necessary. Right. It's like my safety backstop is what I have. I have to renew it every year. And they underwrite us and all that. But it's worth it to have it and that the interest rate changes. I think it's 9% today.
00;14;38;02 - 00;15;04;26
Unknown
It's been 11. It's been seven. So that's 100 K. Like that's like safety net. That's why I can keep so little in my operating account. Then I went out and worked with Funding Grow to get a bunch of, business, business credit capital and using some of their strategies and techniques to ensure that I had access to liquidity, because that's what like, that's what the cash crunch is.
00;15;04;26 - 00;15;22;21
Unknown
We lose access to liquidity and we're like, crap, we got bills to pay like, we got to move things around. It starts to get really uncomfortable and is painful. It sucks. Like we've it's happened to us couple times. Do like, you know I've, I've had I personally take my own cash, put it into my business. Right. Like many times over the years.
00;15;22;21 - 00;15;42;23
Unknown
So like, let's not fool ourselves like I'm not bulletproof, but so what it what it's done is made me fortify over the years. Like, what can I put in place to not have to do that again? So I'll pause there, I think, for sharing my kind of big my big thing for people is, number one, if you're having cash crunches in your flipping business, it's okay.
00;15;42;25 - 00;16;06;19
Unknown
You're you and everybody else. I promise you. It's like everybody has been there. It's okay. Number two is professionalize your business and create exit strategies that have shorter cash conversion cycles. I'm not saying to go become a wholesaler, but yes, you can wholesale deals. You can, hold tail deals, buy them, clean them out, list them. Those are shorter.
00;16;06;19 - 00;16;30;10
Unknown
You can no wait deals. Those are shorter. Cash conversion cycles just have more tools available to your business so that you're not. If I need to produce 30 grand this month, I can wholesale two deals for 15 K. Now, I might not have might have thought I was going to make 80 on the flip, but that doesn't matter because that's how my business needs it needs money today.
00;16;30;12 - 00;16;57;04
Unknown
So make that decision. Yeah, I love that. And I would also add as people think about these additional strategies for their business, don't freak out. Feeling like you have to have the whole each of these extra dispositions planned out and like have them all packaged and ready to go. So when something comes up, you're just like, hit the button, because you will stress yourself out planning for something that has not happened yet.
00;16;57;06 - 00;17;20;26
Unknown
It's okay if I can give you permission to move forward with it imperfectly. Which is seriously what my husband and I have done. We got a property under contract seven days ago, and we'd already made the decision. We are not going to flip unless it's, like 100 plus expected, profit. We're just not going to do that for the next few months until some of our stuff settles down.
00;17;20;29 - 00;17;37;23
Unknown
And so we already knew we were going to wholesale this. But I don't have a I've never wholesale before. I bought a couple times as a, you know, buyer and a wholesaler, but I've never wholesale. And so I'm like asking like, how are you guys doing this? And like I've got people responding on Facebook and then I'm like, oh crap, how do I respond?
00;17;37;23 - 00;18;00;13
Unknown
And I'm using, you know, ChatGPT like, how should I respond to this? They're wanting to offer before, before I do the walkthrough, should I take that? Should I not? Y'all are giving me advice on what I should and shouldn't do on Facebook. On our in our accountability group, we were told it's fun and fun. Yeah, fine. But I'm having fun, so it's okay to not have it all planned out.
00;18;00;13 - 00;18;19;09
Unknown
That that is part of moving fast and being nimble is being able to readjust midstream. Okay. Can you tell me, would you would you be willing to just, maybe give a little bit of what you've learned going from, like, overnight snap of a finger. I want to bring cash in my business. I'm going to wholesale some houses.
00;18;19;11 - 00;18;35;08
Unknown
Yeah. To, like, getting one right under contract. As soon as those words came out of your mouth to, like, now I got to figure out, like, I need to disposition it and sell it to an investor. And I have nothing in place for that. Like, what has that journey been like and what what are the big things you've learned in that?
00;18;35;10 - 00;18;57;08
Unknown
We would not have the opportunity to wholesale if we weren't doing direct to seller marketing. First of all, we were already doing that, and had we not had our letter campaigns in place and that sort of thing, I don't know where we would have challenged drumming up, a house that, you know, that another investor didn't already have an under contract.
00;18;57;10 - 00;19;23;08
Unknown
So I was very grateful that we had pulled the trigger on that, previously. So I think that's super helpful. Just and I guess the lesson under that is just having multiple lead sources, you know, whatever. Those are not just from wholesalers because it's hard to wholesale to daisy chain a wholesale. Those don't work well very often. Especially now it seems like so that's one lesson I learned.
00;19;23;10 - 00;19;40;08
Unknown
Another for sure. I would say the biggest lesson learned is don't be afraid to ask questions and to look dumb. So when I'm saying I have no idea what I'm doing, this is what I thought I should do. Or I don't even like credit. Should I do it this way? Should I do it this way? Is there another way?
00;19;40;11 - 00;20;05;05
Unknown
Just don't let your ego trip you up. And I really had to make sure that I wasn't letting my ego trip me up and not ask questions when I didn't know, because then I would have. I would have not. I would not have optimized this opportunity had I only used my own thoughts and my own beliefs that I've never actually implemented before in this scenario.
00;20;05;05 - 00;20;28;29
Unknown
So for sure, it's okay to look dumb. Yeah. And you get a lot of great input. Like, I was so glad to see you extend your ass to the Facebook group. Peralta, too, because, Amanda Howell has an incredibly dialed in disposition system. Yeah, her buyers are trained to her model. It's crazy. Like I'm on her list.
00;20;28;29 - 00;20;51;03
Unknown
I watch her stuff because of how organized and systematized and systematic their disposition process is. It is very dialed in, as you saw when she was going here, do this, have this, have this, like, yeah, yeah. And she gave some great ideas, which I was looking at. I'm like, I had to make the judgment like, I don't have time to do all of that.
00;20;51;05 - 00;21;04;02
Unknown
Yeah, that's a long term, goal to get a lot of the systems she has in place. But I was able to take a couple things that I because I. So I was like, figuring this out the morning of the day that we were doing the walk through. And so but I was able to take some of that.
00;21;04;02 - 00;21;22;27
Unknown
And I know the process that we did execute was way better than I would have just on my own, but still, it was imperfect. Can I tell you how embarrassing one of my imperfections was? Let's hear it. I want to hear it. I don't even know how your walkthrough went. Did people even show up? Yeah, we had 13.
00;21;22;29 - 00;21;52;14
Unknown
Holy crap. Yeah, we had 13 different investor groups come through. I, I'm expecting one offer this morning. So we may only have one. And if we only have one, that's okay. I am totally okay with that. I will call it a win. But here's the deal. So so the process was I had them walk through, and then I had a one sheeter that I had printed off that kind of gave the details of the property and then said, you know, if you're interested in making an offer, here's the process.
00;21;52;17 - 00;22;13;03
Unknown
And it was to contact me, and let them know that they were interested. And then I would email them the original agreement so that they could see what terms they were agreeing to, and then an assignment contract that I had pre-created. So I get an email this morning from the one, the one guy that I'm pretty sure is going to submit an offer.
00;22;13;06 - 00;22;41;18
Unknown
He sends me an email this morning. He's like, hey, so your assignment agreement doesn't actually have a spot on it for me to put my price in? Oh, it's like what? And I was like, oh my God, you're right. It didn't. I ran it through ChatGPT and everything and it and it failed me. And, so anyway, so I just you know, a CRO and I was like, oh, my gosh, I can't believe how silly of me.
00;22;41;18 - 00;22;55;29
Unknown
And so then I was like, I'll get it to you in 20 minutes. And I was on the way home this morning from the gym. And so I got home and I updated and I said, send that one off to him. But I was like, oh my gosh, that's that's a potential result of imperfect action. But it was action anyway.
00;22;55;29 - 00;23;19;29
Unknown
But yeah, I felt a little silly. But you know what it is. It's it's great. I mean, you can text me. I sent you our buyer, our by our BDC contract, if you will. Anytime, anytime. Well great job Sherry. I mean, just is so, so adaptable. Like, I'm just so impressed. You know, it's like you guys had, you had a lot of big things.
00;23;19;29 - 00;23;42;12
Unknown
You moved from one place to another, you open a new market, you're, you know, bought a bunch of houses. You, you know, it's a slow season for houses. And you got all this stuff going on. And in the midst of that, you're able to kind of pull your head up above the clouds, look, and go, crap, I need I need to get cash in the business quicker.
00;23;42;14 - 00;24;12;11
Unknown
I'm going to wholesale houses. Thankfully, you had the foresight to control your lead generation and and, lead flow and deal flow and doing some direct to seller marketing, which, is awesome. And it gave you opportunities and you took them. And I think to me that's like, that's the name of the game. And this is why I said in the beginning, in six months from now, your business will be so strong because your flips will start to get realized, your marketing.
00;24;12;13 - 00;24;28;29
Unknown
You'll be more confident doing more marketing because you can do more things with the houses. You're like, crap, I got a I got buyers here. I know that Johnny over here likes to buy these houses. I hate those houses. I'm gonna lock them up anyways and sell them to Johnny and make ten, 15 grand like your business will.
00;24;28;29 - 00;24;56;04
Unknown
You will be like, it's just going to be so much stronger. It's going to be so much stronger because you have more tools available to you. And I'm definitely excited for that. I will tell you, though, Adam, that that that belief that this is the front end of being better isn't necessarily intuitive and hasn't necessarily been automatically how I've thought about things.
00;24;56;06 - 00;25;40;10
Unknown
And it's been very stressful over the past few months. And so I in light of that, I wanted to share on the mindset side a couple questions that I believe are important to ask that are the underpinnings of really harnessing persistence, whether it's investing or any other part of our life. And the first question, and the reason I posed this questions is because our minds have this really cool function that when they are posed a question, they can't just our minds don't just want to sit with the question.
00;25;40;10 - 00;26;06;14
Unknown
It's like immediately our subconscious is going to work on trying to answer that question. And so asking ourselves questions instead of giving ourselves statements and assumptions sometimes can be a little bit more powerful and leave room for alternative thinking. And so one question that I think has been super important for me is the question of should I continue?
00;26;06;17 - 00;26;38;08
Unknown
Because not everything in life is worth continuing. There are definitely things that I have started and have put blood, sweat and tears in for five years, ten years. And I got to a point where I made a decision that I shouldn't continue. So I don't think that that question is an automatic yes or no. And I think but I think it's a legitimate like search your soul and does this journey really serve you?
00;26;38;13 - 00;26;56;25
Unknown
Does it align with your values? You know, this is what I've had to ask myself. Like, does this align with my values, with my what I want for my family, what I want for our financial future, what I want for like, how does our faith fit into this, all of the different areas of our life does this, should this, should I continue?
00;26;56;27 - 00;27;24;25
Unknown
And for me, I ultimately ended with, yes, yes, I should continue. If I didn't, I wouldn't be here right now. But another angle of should I continue isn't just about the end result. A lot of times I think we base decisions and I base decisions on do I want the outcome? Like do I want, you know, what are we shooting towards a gross or net million a year or something like that.
00;27;24;25 - 00;27;59;16
Unknown
And, you know, that's a common, common real estate investing goal. But is that really the goal is that why I should invest, or is it more powerful that the reason I'm investing and have that goal is because the journey, the person that I have to become in order to achieve the goal is really the prize. And that's part also of how I, how I chose to shift my perspective is that even if even if this all doesn't work out like I'm pretty sure it will.
00;27;59;16 - 00;28;30;26
Unknown
But even if will I, can I be better because of the journey I've taken and that's part of that? Should I continue question Adam. Just want to how how have you thought about that? Should I continue or and and in your own journey I have I mean faith, I think the, the single word is faith. And what I.
00;28;30;28 - 00;28;57;26
Unknown
What was exposed to me was here's kind of like how for me how this all comes to be. I see, I get into this, I got into entrepreneurship through the fire community financial independence, retire early. Right. Like I start obsessing over, like, the dollars and saving and like, oh my gosh, I can actually become a millionaire. And, you know, I start going down that whole route years ago and of course I did Dave Ramsey and all the other stuff too.
00;28;57;26 - 00;29;24;05
Unknown
But, as I start, like, I almost got sucked into the self-development funnel and the, you know, how much stuff is in there and but here's what I saw. I saw people like me doing extraordinary things, and I had a belief in myself that I was capable of, that I don't know how to do it. I don't know how long it will take me, but I believe I can.
00;29;24;05 - 00;30;02;01
Unknown
And then I, you know, I jump into a community seven figure flipping and I'm just chasing the the rabbit. And it didn't happen for me as I could have quit easily in the first couple of years, like I was getting crushed. I wasn't even really all in because I had I was still in the military, you know, and so it's like I had some safety and some security and I was comfortable, but I had faith that I could become number one and incredible real estate investor.
00;30;02;01 - 00;30;25;02
Unknown
That's very successful. I knew I could I already knew I could be a good leader. I had proven that in the military, and I and I knew that I could become a good business leader. I just had like this faith in this confidence. I could do it. And mostly just because I saw other people that look like me, that, I felt like I was as capable as they were.
00;30;25;05 - 00;30;47;10
Unknown
And as I was getting punched in the face. I'm just thinking of myself. I would always just go back to, like. Like, why is it not working for me? But it's worked for them. Like, am I just dumb? Like, what am I doing wrong? But the truth is, I wasn't doing anything wrong. The truth is, it was just part of the journey.
00;30;47;13 - 00;31;10;22
Unknown
I'm sure I could. It could have been a little better. I could have done things better. But the people you see that are successful have been there. This is like you're five, you're ten, you're 15, you're 20. This is not year two, right? Like the people who are their businesses are strong. They're making money. It's profitable. Like there's not year two, which is not.
00;31;10;23 - 00;31;28;10
Unknown
It really is not. You don't know. No. But you don't know. Anybody in year two is just making a boatload of money, right? If you think about that. But you see these, you will you see these Sherry. Hold on. You see these people and you go, well, I can do that and I'll do it. And we think in 12 months that's I'll do that in this year.
00;31;28;14 - 00;31;54;12
Unknown
Yeah. I'm going to be part of my 2026 annual plan. I'm going to be as good as Sherry this year. I'm going to do whatever she does. I'm going to try to do one more. And anyways, I'm sorry for, for, stepping on you there, but like, to me it was faith. The word was faith. I had faith that on the other side of this challenge, this obstacle, somewhere along that line, like I it will start to work.
00;31;54;14 - 00;32;17;22
Unknown
Yeah, yeah. And so that also then alludes to the other part of not only should I continue because I think we need to resolve that in our own mind. If we're not confident or 100% sure on something, you're never going to be 100% in ever in life. I mean, if you're not 100% confident in the person you're marrying, it's probably not going to work.
00;32;17;24 - 00;32;40;19
Unknown
So not know that 100% confidence that you should do this is a necessary foundation to to ultimately being successful and having the persistence when things don't go right. And so the second part is a lot of also what you talked about, Adam. And that is can I do this now? There's more parts to can that I have realized.
00;32;40;22 - 00;33;12;29
Unknown
One is a lot of what you talked about, Adam were that's just knowing what to expect and having different tools. It's strategies having access to other people that can speak wisdom and reason into me has been hugely important and has helped bolster the yes, I can do this, but there is also this other subtle layer that I, I have found and that is.
00;33;13;01 - 00;33;43;25
Unknown
Can I do this? Can I persist, given the amount of stress and emotional overwhelm and, you know, is there going to be something that just breaks me down and that I just I lose it. And so it's that, can I do it that I've really had to focus on and tweak and, I mean, it's things as simple as, well, one, that one thing that I found interesting.
00;33;44;02 - 00;34;09;25
Unknown
So this month, our church is doing this 21 days of prayer and fasting, which I think is seems to be a national thing for some of the churches. And so every morning, my husband and I made this commitment. We're going to get up even earlier. So we go to the gym first, and then we go to the church for an hour and pray, which is not something I've ever done on a consistent basis like this before.
00;34;09;27 - 00;34;32;22
Unknown
But it has increased my emotional capacity, capacity and, and I do believe there's some spiritual actually happenings happening more than just me. But in as much as I have control over that has helped improve my bandwidth and my my capacity and my belief and my faith and foundation of of all the other things kind of going on.
00;34;32;22 - 00;35;01;00
Unknown
So so there's the question of, can you do it? Can you logistically do it? That's an important answer to question or important question to answer, but also given my current state and bandwidth capacity and stressors and family and all those different things, can I do this? And the question out of that is, what are some simple, tiny things that I can do that can increase my ability to persist and that cash flow thing is one of them.
00;35;01;01 - 00;35;21;08
Unknown
Like, if I can just I can just, you know, wholesale this one deal, it makes the can last a few more weeks, you know, before I can kind of get the next thing in place. So it's, it's it feels like a Band-Aid kind of is. But at the same time, the whole the whole strategy is morphing and shifting as we're doing it.
00;35;21;08 - 00;35;45;27
Unknown
So a Band-Aid doesn't necessarily just a Band-Aid. It becomes part of the new strategy. Your what do they say pressure makes diamonds? You're in a little bit of a pressure cooker and you're literally become you literally became a wholesaler in two weeks. People could do all this training and work on it for a year to get their first wholesale deal.
00;35;45;27 - 00;36;07;12
Unknown
And sometimes some people take, like, you got put in a pressure cooker and you did it in two weeks. In two weeks, like you talked about who you're becoming. The tactic is great. The tactics necessary. It's a tool you guys will have forever and you'll have that experience will be way more confident. I think it'll just I think it'll really help your business a lot.
00;36;07;12 - 00;36;38;18
Unknown
But like. I mean, you guys said entrepreneurship and business ownership. The all the risk, all the stress. It's like chewing glass. It's like chewing glass. And to what end? Because on the other side of this, you're going to look you're going to be at we're going to be in Mexico 2027 or maybe even 2026 when we go in April and you're going to be looking at somebody who's going car sharing.
00;36;38;18 - 00;37;05;01
Unknown
I'm having such a hard time getting these cash conversion cycles down. You're going to go, you know what? I've been there, but I'm confident you can. You two can come to the other side. Yeah. And, I just, I like I told you, I'm just so impressed with your guys that your two hold you and JP your whole team and how quickly you got just zeroed in and focused on going.
00;37;05;07 - 00;37;26;16
Unknown
Let's produce cash in our business quickly. Right now. And you said, okay, where's the where's my money? And then you went and got like obviously some things still to to happen. But like think about that. That's like two like you did it in like a couple weeks Sherry. Like you didn't. This isn't like I planned it all out.
00;37;26;17 - 00;37;46;10
Unknown
And you're a planner and I know this about your your planner. You'd like to get the spreadsheets ready, the details out, and you just said, like, here we go. Two weeks. Well, this is really impressive. And it's it's who you're becoming. Like who we become. What we expand our capacity and our capability, like, beyond where we thought it could ever be.
00;37;46;13 - 00;38;11;24
Unknown
Absolutely. And these moments, I think, do give us the opportunity to test our assumptions of how much we can do. I I've had the mindset that I want to take my weekends off. You know, I want to focus on family, which there is absolutely nothing wrong with that. I always want to make sure my my kids and my husband feel like they are cared for by me.
00;38;11;26 - 00;38;36;25
Unknown
That is important priority of mine. And do I really need to take nights off? Do I really need to watch a Netflix show during the week? Do I do I really need to do those things or because of how persistent I want to be? Can I choose to forego TV for a month and just continue to work during those times?
00;38;36;25 - 00;39;00;05
Unknown
Is it that important to me and to my work capacity? Challenging my own assumptions about what society tells us should be a reasonable amount of time we spend on work and all these other things we feel? I think we need to challenge that assumption and then challenge ourselves and how much work we're really, really able to do in a season to try to to shift things.
00;39;00;08 - 00;39;30;04
Unknown
Yeah. So you basically are saying, it's seasonal, you're saying it's seasonal and you're making a choice. Of course, we all want, full time freedom. We want decision freedom. Really. I want to decide what I do with my time. Everybody says time freedom. But you really, the kind of people who go out and chase that time freedom are typically like go getters, you know, like, if I put you if I said, here's a zillion dollars, you can just be idle.
00;39;30;04 - 00;39;55;00
Unknown
You would never be idle. You would never be idle. Not that what we really want is the ability to decide where our time is allocated to. And a lot of it's family and our church, and you know, the things that are truly important in life. We know business and money will come and go, but there's something about the thrill of the challenge and become.
00;39;55;00 - 00;40;21;13
Unknown
And so for a season, we can say we're going to allocate more time to this thing that needs us. And to me, Sherry, I've talked about this in the past, and I got this analogy actually from Andy. But like I've been a naysayer of balance or at least the version of balance that people believe, like, you know, like a, like you work for eight hours and then you have fun for eight hours, and then you sleep for eight hours, like, that's just not how the world works.
00;40;21;13 - 00;40;54;28
Unknown
And like, for example, I, I love to work like it fills my cup to work. My household has balance because I can work and generate income. My wife doesn't have to work unless she wanted to and she chooses to. She does some Instagram stuff like that's her game. But the truth is she gets that she is. I go down, stay, I'm parent to the kids, and when I'm running and gunning and doing all the crazy stuff, like the kids have stability.
00;40;54;28 - 00;41;17;28
Unknown
So that's I may not appear balanced, but my family is balanced, right? And then you look at it over time. There are times when I don't have a lot going on, and I am spending a lot of time with my family. And, there are months where I'm seven days a week. Like it just requires that of me to win, and that's what I have to do.
00;41;17;28 - 00;41;37;20
Unknown
So, and you're right, it's persistent. But I think, like, it's just so impressive to me when I see you and just entrepreneurs like, you're capable, like you can solve a problem that it feels heavy. I watch, we go through this and this. By the way, this has been me so many times. Like I suck, it's not working.
00;41;37;20 - 00;41;57;19
Unknown
I'm about to go broke. Like, oh my gosh, like I need money. Like I've been there. I've been there many times. And we just go put our head down and do the work. And we have friends and mentors and, and our board of directors here at something flipping like, like, oh my gosh, how do I do this? And then they bring some objectivity into your life.
00;41;57;19 - 00;42;15;28
Unknown
And then you just put your head down, you execute and you, you eventually you get a result and you learn from that result and you get more results. And then you strengthen your business, which allows you to then grab some of your time back, free it up, get more balance, like it's just really cool. Sherry I know it doesn't feel good sometimes.
00;42;15;28 - 00;42;37;07
Unknown
Trust me, I, I have had times like in recent times we're like, oh, I let the cash get low. Bad, bad cash management on my part. Like I was greedy. I'm like, no, let's take the 100 K deal. I don't care if it takes nine months. We'll figure it out instead of taking the quick money. So, but guess what?
00;42;37;07 - 00;43;01;25
Unknown
We figure it out, and we make it happen. Absolutely. So I'm really proud of you for that. Thank you. And I'm grateful to have so many amazing people around me. If we were not in this community with like minded people who were so giving and so experienced that we would, we would not be where we're at. I don't even know where it would be at, but it would not be here.
00;43;01;25 - 00;43;29;21
Unknown
It would not be on the growth journey that we're on. And that's the bottom line. That's, that's that's and look, this is, this is probably my favorite segment to do. The bottom line with you, Sherry, because you bring such a good you always recenter me on mindset. So I'm going to do my takeaway today for our closing segment.
00;43;29;23 - 00;43;51;28
Unknown
The ability to persist and what that really means. And I you just have me thinking about that and you're, you're I'm like, I can think of times where stuff got hard and I was naturally resistant to it. I'm like, dude, I could just go get a government job. It would be so much easier. I don't have to deal with this problem in front of me.
00;43;52;00 - 00;44;18;10
Unknown
Like, I have other options in life that I could just not deal with this problem. But then I persist. I remember why I'm doing what I'm doing, and I have faith that on the other side, who I become, what it will do for me and my family and my time and all this stuff like, okay, I believe, and then I'm able to just get so focused and solve the problem at hand.
00;44;18;10 - 00;44;38;01
Unknown
And at the end of the day, you get on the other side of the problem. You really want even that bad sleep. Oh, that was easy. You know, it's like obviously it wasn't, but you feel like, okay, that was not as bad as my mind was telling me it would be. And we figured it out. Yeah, yeah, that was persistence is my takeaway.
00;44;38;03 - 00;45;15;11
Unknown
Amazing. And so my takeaway is the reminder that there's more than one layer to being stuck sometimes are being stuck is an emotional stuckness or a perspective stuckness. And sometimes it is just logical business problems that need to be solved. And I think it's helpful for us to, to, to determine where when we are stuck, is it that we literally don't know what button to push next?
00;45;15;14 - 00;45;38;28
Unknown
Or is it that we're so overwhelmed we don't even know that we should push the button because we might be trying to solve the wrong problem. And so focus on which side of the coin that we're really struggling with. So then we then can, you know, kind of figure out the solution to to move forward. Love it. Well, for everybody who's listening.
00;45;39;00 - 00;45;56;28
Unknown
Another great episode with my favorite co-host, Doctor Sherry flew on. I hope you guys got something out of this one. Actually, I know you got something that if you stuck around to the end, you're still here. You definitely got something out of it. Do me a quick favor. Go and leave a five star review, send us a message, tell us if you liked it or not.
00;45;56;28 - 00;46;14;06
Unknown
Tell us what you would like to hear. Who you'd like me to have on. Pretty much get you anybody. Would love love some feedback from the listeners. We appreciate you guys continue to do what you do, continue to show up and listen. And, we will see you on the next one. Bye.
