S2Ep84: Ways to Increase Your Risk Tolerance with David Meltzer

In today’s episode, Allan welcomes back David Meltzer. David is a speaker, author, sports executive, investor, and entrepreneur. Allan and David discuss current changes in the economy, and which three areas you should look at to embrace opportunities as an entrepreneur. Common factors such as market conditions, your age, and your goals will impact your timing and risk tolerance.

To reach David, email him at david@dmeltzer.com

Allan has started and grown several multimillion dollar businesses. His mission is to help you do the same. Welcome to The Business Growth Pod, building the future one entrepreneur at a time.

Hey, everyone, welcome to the show. I’m Allan. I’m a family man and attorney and an entrepreneur. Each week, we provide resources and advice to help build your business. Are you ready? Then let’s go. Hey, everyone, Welcome to The Business Growth Pod. I’m your host, Allan Draper. I’m very excited to introduce David Meltzer. David is a speaker, author, sports executive, investor and entrepreneur. He’s actually been on the show before, and we’re excited to have him back. So good to see you. Welcome back, David.

How’s great to be back and just excited to share kind of where we’ve grown to and what a better place to do it than your podcast.

All right, appreciate it. So, David, I’ve been thinking a lot about the economy, a lot about the talking heads. And you know, the use of the word recession, and I was kind of wondering where your head’s at where your thoughts are, where you’re spending your time and resources in the next six to 12 months and what you’re going to be focused on.

That’s a great point. In fact, I created a group to take advantage of where we’re going in the next six months, because I’ve lived through expedited downturns in the market in certain industries, careers, jobs, etc. In 9399, got killed in 2008, lost over $100 million and went bankrupt. So what I wanted to do is pay back the dummy tax that I’ve paid. And I wanted to pay it back by teaching people to focus in on three things. And the first is, we need to pay attention and intention into the markets, the different markets that do well, that are synergistic, and supplementary to our skills, our knowledge and our desire. And if we can study the markets, the jobs, the industries, the careers, to see how aligned how our skills, knowledge, and desire is supplementary to what’s doing well, in those markets. And what opportunities options and touches a favor exists during expedited changes in the economy either good or bad. By the way, when we get these accelerated changes, that’s when we want to look and study the markets. Then secondly, we want to study something that a lot of people glance over or never even raise their awareness to. It’s the market makers, you see if we know who’s making the market. So for example, in 2008, if I understood subprime lenders were making the market when it came to the real estate market, I could have changed my strategy. And I would have bought differently in different timing and different risk tolerance, knowing the market makers, and doesn’t take that much effort to find the market makers, but most people gloss over it. And don’t do that, including me over the last three accelerated changes in the economy. Then finally, in this one seems obvious, Alan, but so many people don’t pay attention to this, even when there’s not an accelerated change in the economy, and that’s called margins. See, so many people get so busy, so busy, so busy working, they forget to make money, and they invest in things that even if they worked out, they haven’t fully thought through what the margins are going to be like and in accelerated changes in the economy, downturns or upturns, the margins of millionaires are made more millionaires are made during accelerated changes in the economy during recessions and depressions and accelerate more margins. And it’s because the entrepreneur or investor or even the collaborator, they’re looking at the market, and how it’s aligned synergistic or supplementary to your skills, knowledge and desire. The market makers which is a secret sauce but also the most common sense one, they’re actually studying the margin saying, Wow, this area is so oversold, that the margins are going to be so much better by investing my money into this thing because it’s so oversold than this other thing or working in this industry instead of this industry, because the margins are there.

Yeah, 100%. The other day, I posted a poll on my Instagram just kind of getting a feel for where people are at. And, you know, the overwhelming majority mentioned that they are not going to be buying any real estate or any other assets until they figure out what’s going on, which is a little different from my approach. I’ve noticed that, you know, when people are nervous, they stop investing, right? It seems to be the inverse for what I do when things are going down. That’s when I see a for sale sign on, you know, real estate stocks, even businesses acquiring new businesses, and but that the average person sees that they get they get afraid. Right. And they wait for the upturn, and they buy when things are really high. And what would you say to that person that is afraid right now of embracing the opportunity that we’re going to be seeing in the next six to 12 months, and just kind of getting that confidence to invest?

Well, I think you’re nailing the nail on the head, my friend. See, the problem with most people is they don’t know their timing and risk tolerance. See, upturns and downturns have nothing to do with investment. Your timing and risk tolerance is everything. And I think there’s more opportunity when everybody gets afraid, because there’s less competition with things that are aligned with my timing and risk tolerance. Whether it’s stocks or real estate, it doesn’t matter where I am on the upturn or the downturn, I’m analyzing only one thing in all investments that I make, is this aligned with my timing and risk tolerance. And if so, then I’m gonna go ahead and invest. And you know, each individual investment has its own criteria, it has its own elements that can align with what I’m looking for in an investment. Now, when I tell you that, let me show you how this works. Number one, the lottery. I know the lottery is $2 investment. I know it has a one in 1 billion chance of winning. And I know I could win a billion dollars. And I also know that the timing is this Saturday at 8pm. So this Saturday at 8pm After I bought my one lottery ticket for $2. And I invariably lose, and I have not won the half a billion yet. I’ve done a timing and risk tolerance assessment comparatively with my values to say, Hey, I get so much joy and excitement and fun out of $2 that I am happy when I lose, because I got what I wanted out of it. It was aligned. I see the same thing. I coach people in the crypto market, I saw kids buy crypto at 10 cents. They sold out at $3. And then it went to $10. And they were all pissed off. And they’re like, I’m so stupid. This is a horrible investment. But I’m like, no, no, this was a terrific investment. In fact, if every investment worked out at 3000 times your earning your investment, you’re going to be a very rich person. But you’re going to be miserable if you don’t know your timing and risk tolerance so that you can enjoy it right? So know your timing and risk tolerance, there’s going to be less competition for the deals that are aligned with your timing and risk tolerance. It has nothing to do with the market that you’re investing in just whatever you want investment know your timing, risk tolerance.

Yeah, I love this. I love this idea. And I you know, a lot of times people will ask me, well, where’s the peak? And where’s the bottom? It’s like, well, I don’t have a crystal ball, right? But what what I do is, I try to buy the downslope, right, so I’ll start, you know, buying as I think I see things go down in the market, the stock market has bounced back this this week, we’ve had a couple of good days. But as things are going down, I continue to buy them. And then that’s how I find the bottom. But for me, it’s putting myself in a position where mentally I understand the risk I’m taking and understanding that there’s always opportunity out there. Right I think the average person David, think the average person thinks that there’s only a limited amount of opportunity. And so I think this comes back to the the mental aspect of it right of envisioning what you want to achieve. And then and then your mind starts to see that opportunity naturally. Have you found that to be the case?

Absolutely. You know how to you know, even after losing everything and initially in a fear based consciousness telling myself, I’m never going to own it. Need more real estate because I had a ski mountain, a golf course I didn’t understand what banks could do. And I thought I had more equity than I did and to leverage that a whole bunch of mistakes, but lessons I’ve learned, but in that same vein, I bought a beach house, and everyone thought I was an idiot. And it was seven years ago, right, I’m coming off of a bankruptcy, you know, 612, it was about 14 years ago, 2008. Now, 14 years ago, so here I am, just seven years later, buy a multimillion dollar beach property, and it was $100,000 over what anyone else had ever paid. Seven years ago, now, I did not listen, it was aligned with my timing and risk tolerance. I knew, you know, for the market, what that market would bear nothing had sold within three years, I knew the market makers were changing, that there was going to be short term rentals, VRBO and Airbnb, which would give the property a different value, and different income for me. And I also knew the margins were extraordinary. And I knew you’ll for 20 years, the history of what was going on. So it’s completely a lot of my time and restores. Meanwhile, you know, that property has tripled, you know, it has done far better on the income side where I never get to use it, because I’d rather stay at the montage, you know, it make double what I’m paying at the montage for staying at the montage for a vacation than using my own beach house, you know, so there’s a lot there. But everyone thought I was stupid. You know, they thought the market had gone up for seven straight years, that there never had been, and there still hasn’t been an economy that’s run this hot for this long. So as long as you stick to, like you said, your own criteria, you know, I love the idea of buying down, right? A market. It’s just a matter of time. So if for example, you’re buying on the down, eventually it’ll equal to or greater, where you were from the down. And so you’re guaranteed a margin if it’s aligned with your timing. And in real estate, I use a 20 year fluctuation. So my timing and risk tolerance is okay, what’s the worst that’s going to be in 20 years? Because if you look historically, you know, 20 years is the longest cycle that you’re gonna get, and you’re going to end up okay, you’re going to be at least back to where you were with real estate. And as long as you break even on real estate, you’ve won, because of all the tax benefits, the absolute least asset based lending and income that’s available?

Yeah, absolutely. You know, one thing that I’ve noticed that you’ve talked quite a bit about, David is, is rejection. And I think you can apply some of those principles to the current market and things that are going on. Because I think people are afraid to take steps to try new things to learn new things, because they’re afraid of rejection, but you talk very passionately about it. You talk passionately about how each node gets you closer to a yes. And what is it that allows you I don’t know that you get rejected much at this stage of life? Maybe you do. But what is it that allows you to keep that optimism in the face of so many knows,

open minded and open hearted and open handed community, meaning that a no gives you an indication that you’re dealing with a closed mind. So if you’re able, if you’re credible, you have an emotional attachment to what you do, you talk about passion, but also have a capability of articulating a quantitative value to exceed what you’re asking for. Then what you want to do is create a community of sponsors, people that will help you and know people that will can help you so power sponsors and pot sponsors. And the way that we do that is we want to qualify people, whether you have an open mind or closed mind. So if I’m trying to create an initial sharing of a vision, and you give me a no, well, you’re just pushing me towards someone that has an open mind. Because it takes 1000 times the effort to reengineer closed mind and open one. There’s so much reach in person on the phone via email, traditional and social media, we have so much reach of so many people that we’re better off just qualifying people by having an open mind. First, when we find an open mind, then we can continue to ask open ended questions that say, Hey, would it help you if What are you doing today? What do you like about it? What don’t you like it? Will you help you if we’ll help you with then you could ask Do you know anyone that can help me? And now you’re building that community of sponsors the power sponsors with a simple open ended question template, I give this template out. I’ve made millionaires out of this template and applicable to every single industry, email me you’re gonna put in the notes david@gmail.com. Now, this open mindedness now I also incorporated three no rule three rejection rule. Let’s say you and I come to a mutual chord. And you said you’re interested. Now if we set a date for the next phone call or we create a go no go plan on what our next steps are, and you don’t show up or you don’t answer you. Tell me not now. If I go ahead and use a three, no rule, that puts me back again and say, Well, okay, I’ll call you back again, you give me another No. On the third. No, when you’ve already shared a vision with me and expressed interest, I now tell you, hey, this obviously isn’t the right time. Let me know what it is. And the reason I do that is that, you know, everyone has an open mind at a certain time. Some people have, like you and I open minds, the majority of the time, we’re easily sold. Some people have closed minds the majority of the time, but sometimes we kept someone with a closed mind at a time when they have an open one. And then they’re going to be a lot more work. And if we use the three, no rule, then we can go ahead, and we’ll never call us back if they have a closed mind. Although sometimes you get a person with an open mind, and they’re having a bad day. Right, you know, something happened, the entire blue or who knows, you know, something with their family? Can people get COVID Nowadays, which is a classic example of some of the open mind, all of a sudden, we’ll have a very closed mind, if they’re exhausted and sick or worried about a family member. So three, no will then 50% of the time and open mind will go ahead when you walk away, they’ll come back. So not only are you expediting the sales cycle by putting a catalyst on The Open Mind, but you’re also getting rid of the people that are never gonna say yes to you, the closed minded people. And that’s more valuable, I think, and accelerating the sales cycle, have an open mind that eventually will do business with you or share your vision again, the more valuable one is, I’m not wasting my time with people that are never going to share a vision with me.

Yeah, you know, one of my goals this year, David was to have 100, identifiable rejections, professional rejections for

over, never limit yourself, I always say I went over 100.

And I’ve learned that there’s so much benefit that comes from it. And I actually got to the point, I shared this on my social media, probably three months ago, I realized that the benefit that comes from rejection and kind of getting through that rejection is greater than the benefit that you would have received had you never been rejected in the first place. And I think a lot of it comes from, you know, I think, for me, personally, a lot of my journey is, what is Allan learning about? Allan? What is Allan learning about what he’s capable of? And there’s nothing like rejection to show, you know, a magnifying glass on that. Right. And, you know, I agree with you 100%. about rejection.

I love the line, you know, I’m learning when I get rejected, I’m learning to live with myself, instead of lie to myself.

Excellent. Yeah, that’s no, that’s perfect. I mean, I think the journey is, you know, us becoming right, I think we set goals for ourselves. And what it really comes down to is, are we the types of people that deserve in the marketplace, those goals, right? Are we the type of people that are able to achieve those goals, and I’ve learned with my businesses, that they are inherently limited by the development, the personal stage that I’m at, for example, I cannot grow a company to a level that I’m not personally at. And so as I, as I progress, I’m able to do that, you know, you mentioned that you don’t put time restrictions on goals. And I’m very fascinated by this idea. And this is kind of going to be our last thought, as we’re wrapping up here. David, tell me a little bit about that, and why you do it and how it helps you achieve your goals or objectives in the long run anyway, yes, I’m

glad that you asked me that. Because this was the one area that Bob Proctor, my mentor, who had passed away this year, we were in disagreement, but he finally I think, finally came over to the dark side to my side of timelessness of infinity. So I don’t believe in putting a time limit of you know, I want to make a million dollars by the end of this year. And the reason I believe that is that the minute I determined that I want to make a million dollars by the end of this year, every second that passes by, that I haven’t made that million dollars, I’m creating resistance for myself, I’m running out of time. And what I like to do is look at the world as a value add world as an infinite world, a timeless world and effortless world. And so I work within the context of velocity, not time. See, time is a man made construct. It determines the length of the starter cause to an outcome. And the biggest misuse of time is between causing an outcome cause and effect or a problem and solution. So I take it out of that realm by saying, I’m going to make as much money as I can, as fast as I can. Or if I To get a little bit more quantitative, I want to double the amount of money I make as fast as I can. This is limitless. You see, I am encouraged by not only math, but the universe. When I say I’m going to double the amount of money I make as fast as I can, every second that takes by, I’m getting better and closer to my objective, instead of less and less time to achieve it. I’m creating less resistance. It’s more effortless. It’s more in the context of I am happy, healthy, wealthy, worthy, what am I doing to interfere with it? Instead of most people searching for a Why have I want to get more happy, more healthy, more wealthy and more worthy? That actually is resistance, creating void shortages and obstacles of something that’s already there. I already work in an infinite world of saying, This already exists. What am I doing to interfere with it? So I’m trying to create velocity not limit myself by time?

Wow, that’s deep. Very well said. Well, I appreciate your time today, David. You know, I look up to you a lot and just wish you nothing but the best in your future.

Thank you, everyone. Please reach out to me if you need help, David@dmeltzer.com I’ll be back for my third time. Don’t worry.

All right. Can’t wait. Thank you.

Thank you, Allan.

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