Lance Hood: Me personally, my business is my retirement. I currently don't spend much time thinking of putting hoards of money away somewhere.
Richard Parker: That's a great point. I mean - and it's a great way to look at it. And not only is it a great philosophical approach, but from a financial perspective it makes a whole lot of sense. Because when you get into the right business every dollar of value that you add to that business by working hard and doing the right things, you're going to get two, three, and four times more out of that when the time comes to sell, plus you're getting paid all these years.
Lance Hood: Yeah, in my opinion you can make a hell of a lot more money that way than just shoving your money in some IRA.
Richard Parker: It's not even close. I mean I've gone through the exercise with people to show them that there is no better investment than buying a business. I mean people can tell me stocks and bonds, or real estate in a good real estate market, but it doesn't come close. Because your money, first of all, the big difference is from day one - you make a real estate investment and over time, every decade, real estate will appreciate as long as you're sort of in the right ten year frame, and it's going to be worth more, okay, and that's all good. But up until the time that you sell it or leverage it you're not getting any money, or not a lot a lot of money, and even you reach, you know, do some of those infomercials, they talk about you're going to get some cash flow, yeah, you're going a $100 bucks a month if you're lucky. "If you buy this place and you put in a tenant," then if you're lucky you're going to keep one nostril above the water and you're going to get a tenant, you're going to make extra $100 bucks a month, and you're going to make your money when you sell it.
Well, you're not going to double and triple and quadruple it, okay. I mean, there are some cases where that does happen, but it is so rare, it is so rare. Whereas you buy a business? You're making more money from day one then you made at the job you just left, that's the first thing. Like overnight, you're making more money unquestionably, and it's from the beginning.
And as you make more money and work the business and build the business, when the time comes to sell it's going to be worth double, triple, quadruple. So I mean you're getting it every which way, it's unbelievable.