JF1993: The Power of Your Circle with Pat Hiban

February 16, 2020 | Joe Fairless | 0:18:51

JF1993: The Power of Your Circle with Pat Hiban

Pat Hiban is a returning guest and for those who don’t know Pat he is the owner of Pat Hiban Group with Keller Williams, Host his own podcast called “Real Estate Rockstars” and has a new book called “Tribe of Millionaires”. We discuss the importance of surrounding yourself with wealthy individuals who are not “yes-man”, people who peel back the onion and call you on your nonsense. You will be challenged and put in an uncomfortable situation but follow this advice and you will grow.

Pat Hiban Real Estate Background:

Best Ever Tweet:

“What happens with a successful Mastermind what Napoleon Hill found that couldn’t be explained is the multiplier effect which is the right group of people compounds your efforts. The wrong group of people confounds your efforts”- Pat Hiban

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TRANSCRIPTION

Joe Fairless: Best Ever listeners, how are you doing? Welcome to the best real estate investing advice ever show. I’m Joe Fairless. This is the world’s longest-running daily real estate investing podcast where we only talk about the best advice ever, we don’t get into any of that fluffy stuff. With us today, Pat Hiban. How are you doing, Pat?

Pat Hiban: What’s up, Joe?

Joe Fairless: Well, looking forward to our conversation. A little bit about Pat, and Best Ever listeners, you’re a loyal listener, so you recognize Pat, and we’ve interviewed him twice – Episode 310 and Episode 1034. So you can go back and listen to those episodes.

Today, we’re gonna be talking about observations, that is the six effects of a tribe of millionaires. So with that, Pat’s going to talk about his new book, which is called, and lo and behold, “Tribe of Millionaires.” A little bit about Pat, just as a refresher – he’s the owner of Pat Hiban Group with Keller Williams, founded the Rebus University, Billionaire Dollar Agent, and host of the podcast Real Estate Rockstars; a very good interviewer, asks really good questions. I was interviewed on this podcast a while ago, and it’s always refreshing when I get asked very thoughtful questions – number one, and number two, questions I have not been asked before. Pat asks these questions. So if you want to hear thoughtful interviews, then go check out his podcast, Real Estate Rockstars; based in Baltimore, Maryland. So with that being said, Pat, first do you want to give the listeners a refresher on your background? And then let’s roll right into your book.

Pat Hiban: Yeah, absolutely. So a refresher – I’m a real estate sales guy, was in full-time real estate sales for 25+ years, then became an investor and then invested in everything from single-family to multifamily to shopping centers to small private companies. Now I just do side projects. Like you mentioned, I also am the co-founder of a group called GoBundance, which has over 200 members, which are all, number one, men, and all, number two, businessmen, and probably about 40% to 50% of them are highly invested in real estate.

Joe Fairless: So first off, where do you put your focus on a daily basis? And then let’s talk about your book.

Pat Hiban: That’s funny. You know what I mean — I don’t have a one thing, so to speak. I have 54 lines of horizontal income, which means the things that are paying me sideways. So my life consists of basically a little reaction to “We’ve got a new tenant for the shopping center” or “We just sold this apartment building. Where should I send the check?” that sort of thing.

I like to tell people that what I do is I move furniture around in a room. It’s like you still have the same furniture in a room, but you’re just– not really, but you have a room and you’re just moving the furniture around constantly, and that’s what I’m doing with my investments. I sell this house and then I buy into this complex in Philadelphia, then I sell this and I’m buying into an RV Park in New Port Richey, Florida. Those are real things that I just did so far this year. So just doing stuff like that; I’m constantly buying and selling.

Joe Fairless: So let’s talk about your book. What can you tell us about it?

Pat Hiban: So the book is Tribe of Millionaires, and what it is, is David Osborn – who, I say, I have 54 lines of horizontal income; he has 314 lines of horizontal income. Him and myself, who have known each other for 20 years, along with Tim Rhode and Mike McCarthy, wrote a book that goes to that Jim Rohn saying, which is “You are the average of the five people you hang around the most.” We just found that when we hung around each other, we got better ideas, we got smarter, we got richer, we got better relationships, we got healthier.

So then we started adding people to hang around with and then when it really caught on, we started charging people to hang around together. Now it sounds odd, but it really took off. We have 220 members and we get together multiple times a year and we talk about money, we talk about the economy, we talk about health, we talk about relationships, and everybody gets better and better.

So we wrote this book called Tribe of Millionaires… It’s a fictional story. It’s a fable, but it’s based on our members. So we hired a book writer, his name is Dan Clements, and he writes all Darren Hardy’s books at Success Magazine. He writes all Hal Elrod’s books, he wrote David Osborn’s book… So he flew to Japan with 27 members of GoBundance, who basically sat in a bus for two weeks and did really cool stuff, and he recorded the conversations that we had amongst each other on this trip to Japan. These are all really rich dudes. So he then created a fable about a guy that dies, who has lost touch with his son, and his son shows up after 20 years of not communicating with his dad, and thinking his dad was a deadbeat and an idiot, and seeing that the six pallbearers at his dad’s funeral are all billionaires and multimillionaires, and he’s like, “Holy dirt! How did my dad get surrounded with all these rich, physically fit, married for a long time type of guys?” One of the guys – the guy’s name is Ethan Martinez – he goes to give Ethan Martinez his estate and he’s like, “Part of the deal is, your dad wants you to hang out with us for a week. He wants you to go to this private island on my jet for a week.”

So they fly him on the jet and at that point, he uncovers the six effects that happen when you hang around people that are successful. That’s what Dan helped us write about by just hanging around these 27 dudes in Japan. Does that make sense?

Joe Fairless: That’s a smart way to package it. It’s so much fun reading fables versus self-help books. I’m a huge self-help student, but it’s just easier to digest whenever I’m being told a story.

Pat Hiban: Absolutely. So far, many people have loved it. It’s selling like crazy and getting all kinds of good reviews. So obviously, it’s striking a chord.

Joe Fairless: What are some of the effects?

Pat Hiban: Like I said, there’s six. My favorite is the authenticity effect, which a lot of people don’t think about. It’s not really the one that anybody would guess. What happens is, let’s say you and I just went and hung out, and I said “Joe, what’s your net worth?” and I said, “Joe, how much money are you making on your apartment deals?” and I got into your nitty-gritty – what’s your credit score? How long you’ve been married? What’s your relationship like? We got into that. Suddenly, what’s going to happen is you’re going to become more authentic because we’ve already broken down the barriers of these private things, and it’s okay to talk about, because I’m not someone who’s envious of you, because I have money too. So if I’m a millionaire and you’re a millionaire, this authenticity effect happens, and you end up becoming more and more authentic. Generally what happens when we get together, believe it or not, we have guys crying, we have people that share and become more authentic than they’ve become in decades, just because they’re around like-minded people, talking about things that normally might be private at a dinner party with their neighbors. So that’s a big one – authenticity. It just happens.

Joe Fairless: That’s a big one. Yeah, because those questions that you ask are not typical questions that someone is asked, in any circumstance. So how do you all create a culture of safe sharing?

Pat Hiban: That’s great. So we have something called the One Sheet, and what the One Sheet is, is you have to imagine, Joe, a baseball card. Let’s say, Joe Fairless is a baseball player for the Atlanta Braves. Your picture’s there, you’ve got the Braves hat on, whatever; you’re smiling, your teeth are white. Then you flip it over though, and it’s going to show you your stats like – are you any good? How many times have you struck it out? How many home runs have you had? All that *bleep* that is right down the back of the baseball card. So the One Sheet is the back of the baseball card and it says, “How much do you weigh? What is your body fat? What is your net worth? What is your passive income?” Not your horizontal income; not like, what do you earn trading time for money? Because we don’t care about that. We only care about what do you earn when you’re sitting at the beach? What do you earn when you’re riding your bicycle? What do you earn when you’re walking your dog? What’s coming in sideways while you don’t work? How many lines do you have? What percentage of your monthly bills are paid by real estate and by passive investments? So all that stuff’s right there, and it might take 15 minutes to go through.

Then each member goes through it, 15 minutes. They go through their One Sheet, their baseball card, and then members at their table will then throw in their two cents. Dude, that’s really sad about you losing communication with your sister. What can you do to mend that relationship? Or let’s talk about that or wow–

Joe Fairless: Well, as far as losing communication with your sister in that example, is a question on the baseball card – Have you lost communication with any family member?

Pat Hiban: Yeah. I ask you to rate sibling relationships and I ask you to relate parental relationships. So I’ll give you an example. Parents, 0 to 10, I’d given 6 on mine because I really wasn’t spending time with my dad; he’s 84. So Mark Schwager, one of the other members was like, “Well, dude, we’re gonna fix that.” And I was like, “How are we gonna do it?” He goes, “I want to take my dad to the Super Bowl. You’re going to come with us.” So we bought Super Bowl tickets, and together, the four of us are flying to Miami in January with our fathers. That’s going to be a bucket list item I’m gonna remember forever.

Joe Fairless: Yep. It’s something that we all need, in my opinion, this type of community. Why don’t people join? I’m not talking about yours in particular, but just in general, why don’t people gravitate or be intentional about this? I’ll put myself in that category, because I’m not a part of a group like this.

Pat Hiban: I think it’s scary. Number one, you’re looking in the mirror, so there’s natural defensiveness that just happens when you’re put on the spot. If you’re 10 pounds overweight, you just don’t like it. If you secretly abhor something about yourself, which we all do – nobody’s a perfect 10 in all aspects – you’re going to naturally reject it, you’re going to naturally defend against it. One of your ways of defending against it might be just not putting yourself in situations where someone’s going to ask you what your body fat is, or ask you when was the last time you called your mom or why did you only earn 100k last year. You know what I mean? Why are you behind on your taxes? That’s not cool, dude. What the hell? People generally are surrounded by yes-people. They’re rarely surrounded by someone that’s going to look at them and be like, “What are you doing? You can’t do that. You need to pay the IRS. You have a tax lien on your house? That’s obnoxious. Sell the house, get a condo and get focused.” How often does that happen? Maybe your dad or something will tell you that. But that’s it.

Joe Fairless: Yeah, it’s very true; you’re intentionally surrounding herself with people who have the freedom and take that freedom to question things that are inherently wrong about what we’re doing. But that usually doesn’t take place, because either A, it’s not shared, or B, when it is shared, I think generally people want to avoid conflict… So whoever you share with will probably not say it like it is, and could actually hurt you instead of their intention of helping you.

Pat Hiban: Absolutely. And it works. Originally, we were doing this stuff, and it was fun, and it was kind of aggressive to each other. David and I started 20 years ago. When we started this, I was like, “Well, let’s see who shows up, who comes,” and lo and behold… It’s only been four years, maybe we’re going on our fifth. We’re getting together in Aspen, Colorado. As a matter of fact, I’m going to invite you, Joe, at the end of January, and we’re going to have some dynamite speakers. We’re going to have a really cool thing where we’re going to have a bull versus bear. We’re going to go over everything from speakers that are bullish on things and bearish on things, everything from Bitcoin, to real estate, to multifamily, to industrial. Where’s the bulls, where’s the bears. We’re going to talk about relationships, all kinds of stuff we got planned. But point is that I’m really surprised at the growth of it in four years – 220 members out of 0. So it must be working, there must be something about it.

Joe Fairless: As we wrap up our conversation, what’s one other effect that you think it’s important for us to talk about? And then we’ll conclude the conversation.

Pat Hiban: Well, I think the one that really is a universal law that exists that people can’t explain is the multiplier effect, and it goes to Napoleon Hill and Think and Grow Rich – there was an interview with him and they asked him, they said, “Napoleon Hill, you’ve got a lot of things in here about how to think and grow rich, but if you had to pick one single thing as to why people fail to be rich, what is that one single thing?” And he goes, “I’m not going to give you one. I’ll give you two though.” He says number one is they quit too early, and number two is they fail to form a successful mastermind. A successful mastermind is just this is; it’s what GoBundance is and it’s what the Tribe of Millionaires is. What happens with a successful mastermind that Napoleon Hill found that couldn’t be explained was the multiplier effect, which is the right group of people compound your efforts, and actually the wrong group of people confounds your efforts. So if you hang around dirtbags, even though you might want to be — if you’re in a high school kid and you’re hanging around the smoking [unintelligible [00:14:32].27] and you’re hanging around with the burnouts, even though you might want to be the best football player, your efforts are going to be confounded by the weed smokers.

So it’s the same thing… If you hang around the right people, you’re going to be compounded; it just happens. I guarantee you, this kid, Ethan Martinez in the book, when he hangs around these six billionaires on a private jet and goes to this island, he’s coming out of this thing thinking so much better and so much differently, and he’s going to put things in place and they’re going to work. He’s going to be like, “Damn, that worked.” It’s just impossible.

I talked to another podcast host, a girl, and she had aspirations to be the biggest podcast female host out there, and she’s on her way to do it. I said, “What would happen if I got you in a mastermind with Oprah Winfrey and Ellen and some of these women, Robin Quivers or whoever you want to say? Do you think that you would grow? Do you think that that would take you to a whole other level?” Of course, her answer was unequivocal. If she spent a year with those three women, talking about how to grow a multimedia business or her podcast to the next level, she would be the best out there. Does that make sense?

Joe Fairless: Of course, it does.

Pat Hiban: All she would have to do is sit in a room and talk to them. She wouldn’t have to do anything.

Joe Fairless: Yeah. Assuming that the student is ready, for sure.

Pat Hiban: Oh, yeah. To show up, yeah.

Joe Fairless: Well, even then, just be–

Pat Hiban: Yeah, she’d have to do what Oprah said. If Oprah said, “You need to do this, like Joe Fairless does. You need to do a show every day. Instead of you doing three a week, you need to do it every day; you need to do it twice a day,” whatever. If Oprah told her to do that, she’d have to do it. If she didn’t do it, then the multiplier effect is not going to work. But she probably would never do that unless Oprah told her to do it. I could tell her, you could tell, her parents could tell her, she still wouldn’t do it. Oprah tells her to do it, she’s doing it.

Joe Fairless: Right. Oprah tells me to do anything, I’m doing it, too. [laughter] How can the Best Ever listeners buy the book? Where do they go?

Pat Hiban: Of course, you can buy it where books are sold – amazon.com, but I recommend you go and get it for free. We’re offering it for free. We’ve got 1000 copies we’ve put in the warehouse, and we’re giving them away absolutely free. All we ask is that you give us a good review on Amazon after you read it, and that you pay the shipping. The shipping is seven bucks, it’s chump change. Get it on Amazon for $20, or you could pay a shipping of $7 with us. You’ve just gotta go to tribeofmillionaires.com,  and you get it for seven bucks.

I will mention two things – number one, we just opened, for the first time ever, a women’s division. We’ve had 42 women sign up already. It’s women only. I’ll remind everybody, we do have an event in Aspen, and if you go to gobundance.com, there’s more information on that event.

Joe Fairless: Awesome. Pat, grateful to have a conversation about your book, and more specifically, a couple of the effects of being around millionaires and other high-achieving individuals. We talked about two of them – the authenticity effect, which I don’t think is as intuitive, so I’m glad you talked about that//. And then — not only not as intuitive, but it’s not something that most people are integrating into their life. I’ll even throw myself into that category as far as not having enough no-people in my life; I think I’ve got a decent amount of yes, but it’s important to have some no-people. I do have some, but we can always have more… And then the multiplier effect.

Thanks for being on the show. I hope you have the best ever weekend and we’ll talk to you again soon.

Pat Hiban: You got it, Joe. Thank you.

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