In a heartwarming episode of his podcast, Kevin Clayson welcomed a special guest: his 12-year-old son, Braxton Clayson. Together, they delved into the world of real estate investing, exploring the concept of using real estate to buy more real estate. Braxton, despite his young age, displayed a remarkable understanding of the principles behind this strategy, showcasing his keen interest and potential in the field. Amidst their discussion, Kevin and Braxton also shared insights from a book titled "Drive Your Own Darn Bus." This book, known for its motivational and empowering messages, resonated deeply with both father and son. Braxton, in particular, expressed how the book's lessons had inspired him to take charge of his own life and pursue his goals with determination and resilience. Towards the end of the podcast, Braxton imparted some youthful wisdom about gratitude, reminding listeners of the importance of appreciating the blessings in life. His genuine and heartfelt reflections served as a poignant reminder for people of all ages to cultivate gratitude in their daily lives. Through their candid conversation, Kevin and Braxton Clayson not only shared valuable insights into real estate and personal development but also exemplified the bond between a father and his son. Chapters: 00:00 Intro 03:14 Supply and Demand 10:30 Real Estate Investing 18:35 Books 23:03 Flip the Gratitude Switch
Unknown
With your real estate income, it's better to invest on more real estate rather than spending it on something else.
00:26:46:11 - 00:27:13:01
Unknown
All right. Well, hello, everybody, and welcome to replace your income with Kevin and Braxton Braxton. That's nasty. Justin, that's not Steve. Did Steve get a lot younger? What's going on? This is my dude, my nearly 13 year old son. Braxton What's up, man? The ceiling. Yes. It's. And he's. He's witty. Yes. BRAX Let's tell the people why we're doing this episode here today.
00:27:13:07 - 00:27:33:10
Unknown
So you. You're almost 13. You're in seventh grade. We've spent a whole bunch of time. Like you always know, Dad is off doing work and stuff like that. But is it is it fair to say that until today you did it? Like, fully understand what I'm what I do that? Yeah, probably pretty true, because I don't really talk about it that much at home.
00:27:33:10 - 00:27:59:14
Unknown
Right. And you you're in seventh grade and today is career day at your junior high. And so all the seventh graders are out in the world and they are job shadowing. And you wanted to come and job shadow me, And he's a very talented artist that comics. In fact, Justin, we have to tell you, Braxton is inventing a game right now that I've played that is very fun.
00:27:59:14 - 00:28:23:18
Unknown
And once we have a little prototype, we're going to maybe give it to you and Matty and your friends and have you guys try to play it. What's the title of this game called Cosmic Jam? Cosmic Jam? So Braxton loves to draw comics. He also does. Everybody should go check out his his YouTube channel as well, because he does really cool stop animation, stop motion videos.
00:28:23:20 - 00:28:46:23
Unknown
Let's start with this. Brax So when I say that I think that you are entrepreneurial or that you have like a mind for business, or maybe you see the world differently when I say that to you, how do you interpret that? What does that mean to you? It makes me think of, like my future, like this stuff I can do.
00:28:47:04 - 00:29:08:01
Unknown
Yeah. Like I could do a lot of different things if I put my mind to it. So absolutely true. Yeah, that's right. And, and one of the things that I think is really cool about you is you have this kind of understanding about the world that's really unique. Can I tell everybody what you do before you go to sleep every night?
00:29:08:03 - 00:29:27:19
Unknown
Braxton likes to listen to something before he goes to sleep every night and he listens to podcasts about the world, about politics. He's a 12 year old that listens to entrepreneurial and like Polit Political podcast. And I just think it's because you have I think that you can view the world for what it is and you realize that there's a bunch of liars out there.
00:29:27:19 - 00:29:43:02
Unknown
Sometimes there's a bunch of stuff that isn't real, and then there is the stuff that is real, and that's what we try to talk about. One of the things you said today is we were driving around in the car and we were talking about work is I was telling you a little bit about what we do ad done for you real estate, right?
00:29:43:08 - 00:30:02:01
Unknown
I was telling you how we do real estate for people and kind of how that works. And you said something that made me talk about a topic that I've actually talked about a lot on the podcast, which is supply and demand. But you said I said that I'd done for you real estate. We don't go and chase people that are just gazillionaires to do real estate with them.
00:30:02:06 - 00:30:45:12
Unknown
We try to do real estate with like normal, everyday busy people. And what did you say when I shared that? Yeah, I do like that is a lot better for the business because not only are you still like helping people with more money, but you also are helping people with less. And it also helps them too, because it also that if everyone is mostly going towards the people with more money, then the people with less money will probably want to go with you because you have that option open for that.
00:30:45:12 - 00:31:01:14
Unknown
Yeah, because we actually care about that and we want to do some good. For the other thing that you said that was interesting and I think that kind of dawn on you was, is there more people that are gazillionaires or more people that are just normal, everyday folks that are working hard and making good money and trying to just be like awesome in their lives?
00:31:01:14 - 00:31:24:07
Unknown
What is there more gazillionaires or is there more like normal people out there? Yeah, there's definitely more normal people out there. I mean, no one's really normal. That's just you especially. I mean, yeah, me either, by the way. Yeah. And so I thought it was really astute because you just kind of it kind of dawned on you like, Well, wait a sec.
00:31:24:07 - 00:31:40:18
Unknown
Well, that that would actually be good for the business because that means that you're helping there's more people to help, is what I think you said. And and I love that because I don't know how many 12 year olds would even. We were in the car with my dad at the time. We were taking him to a doctor's appointment.
00:31:40:18 - 00:32:00:17
Unknown
And my dad is awesome. He's never been super entrepreneurial, right? Grandpa has never been like, majorly entrepreneurial, but like, I don't even know that that. Sorry, Dad, if you're listening, I don't even think that that was a thought that my dad has ever had about what we do as a company. You, after a minute, had that thought, and I just thought that that was so fascinating to me.
00:32:00:19 - 00:32:18:16
Unknown
Now, as we've talked about real estate and we've talked about kind of what we do as a company, I would like you to share your interpretation of the stuff that I've shared with you today. Now, just give everybody a little bit of background. We were driving around in the car. We had a really good discussion. We came into the office, we had a little bit of lunch.
00:32:18:18 - 00:32:38:05
Unknown
I jumped into my computer and I showed them how we build websites and how we build funnels and and how we track analytics. And, and I talked a little bit about how we try to craft a story to help people understand who we are and what we do. And then we took you around the office and we showed you kind of really the customer's journey in a physical form, right?
00:32:38:05 - 00:32:53:12
Unknown
They once they come to this point, they go to the person who's in this office, so on and so forth. And I shared numbers with you and how real estate works and how it can make people money. And I'm just with all of that as a background so that everybody listening kind of knows that that's where we that we've been through today.
00:32:53:14 - 00:33:22:07
Unknown
What would you say? Because before today I don't think you really fully knew. I still don't know if mom knows what I do for work. But I love you, babe. But what would you what's your interpretation of it? the main thing I've learned, like, the most important thing is probably that with your real estate income, it's better to invest on more real estate rather than spending it on something else.
00:33:22:07 - 00:33:57:15
Unknown
Because if you spend it on something else, that really stops your money growth. But if you use it on getting more real estate, that increases your money growth even more than it already has been. What you just articulated so clearly, Braxton, is something we've tried to communicate to this audience for a long time. And you know what? I'll tell you what, we have customers that come in on a regular basis and they come in and they ask about how much money is it going to make me today?
00:33:57:16 - 00:34:27:18
Unknown
How much is it going to do for me today? What cash flow is it going to have right now? And we talked a little bit about cash flow. Is the difference between what we make in rent versus what we have to pay every month to have that property. That's that amount that we get to keep. And we have tried for years to help people understand that if you want to succeed in real estate, the two things that will that will give you the most benefit one is patience and the other is time.
00:34:27:20 - 00:34:46:01
Unknown
And patience means I don't spend my money today. I keep the money, I keep reinvesting the money into the real estate. And then I give it time. I showed you, we call it a property analysis. You remember that thing that I showed you that had like the picture of the property? And then I have like, all of those numbers in that grid.
00:34:46:03 - 00:35:02:09
Unknown
But there was a number at the top that I showed you that I think is the most important thing. When I look at our property analysis, I showed you how much, how much it would cost somebody that was a Florida property. I showed you how much it would cost somebody to get the property and then how much they would make over.
00:35:02:09 - 00:35:25:07
Unknown
Do you remember what the time frame was? Ten years. Ten years? And how much would they make on that property analysis? Do you remember what the number was? How much they would make in profit after ten years if they just waited and were patient? I think they paid off everything that they spent on it, and I think it was like 200,000 or something.
00:35:25:07 - 00:35:46:05
Unknown
It was it was it was like you would get your down payment and your expenses back and still make 200,000 a profit. But I also told you, see, if you remember this, if I was to buy that property and I was to not wait for ten years and I wanted to spend all the money today and and how much money would I have made a lot of money on that property after year one or two?
00:35:46:07 - 00:36:08:21
Unknown
Probably not, because everything that you made is just not really there anymore because it takes time. Now, I love that. That is something that you wrap your mind around because Braxton, I'm telling you right now, dude, there are people listening to this podcast. There are people watching this on YouTube right now. Who knows where they could be? I don't even know what country in the world.
00:36:08:23 - 00:36:32:01
Unknown
And there are people that do not understand that principle that if you want to be successful in business, in real estate and entrepreneurship, the two things that will benefit you above all else are patience and time. And it's so rare that people are willing to give either because we want what we want, we want it right now, and we don't want to have to wait in order to get it.
00:36:32:01 - 00:36:55:12
Unknown
We're like Veruca on Willy Wonka, right? It's like, I want it now. That's how we are. And so I love that you picked up on that and that that was something that was meaningful to you. Now, let me ask you this. So what is it just based on your kind of understanding as it is right now, what do you think is cool about the idea of real estate as an investment?
00:36:55:12 - 00:37:21:18
Unknown
And you and I haven't even talked about, like other stuff that we could potentially invest in. I mean, maybe we've touched on it over the years, but just based on your kind of basic understanding of what we talked about today and kind of what you know, what do you think is cool about real estate as an investment, just out of curiosity, instead of just buying the house and like maybe renting it out to some people?
00:37:21:20 - 00:37:44:07
Unknown
I not only is it like less with the loan so meaning you you can you don't have to buy the whole house with all of the money. You can only put a little bit of money down and let a bank give you the rest of it. Right? You can use a loan. That's what you mean. Right? So you can spend less and get more.
00:37:44:07 - 00:38:12:20
Unknown
Is that kind of what you're saying? Yeah. Keep going. And then at the end, it's a win for both the people who, like, gave the real estate and the people who invested in real estate. Yeah. And it's also a win for like the bank. Yeah. And because like everyone's getting paid. Yeah, dude, that's awesome. Like, dude, I wish like, people.
00:38:12:20 - 00:38:33:23
Unknown
Braxton, most adults do not understand what you just articulated. That is why we wrote Microloans to Millions. That is why we do this podcast. That is why we have done for you real estate and why we try to market and educate and let people know that you could tap into something like Moneyball Real estate that could go and help you generate actual income.
00:38:34:05 - 00:38:52:11
Unknown
And it one of the things I love to talk about Braxton and I put it in the book, you haven't read my comments millions yet, but in one of the chapters and we talked about it on the podcast and I'll just re articulate it here because it's one of my most favorite things about real estate is real estate lets us make money in more than one way.
00:38:52:13 - 00:39:12:04
Unknown
Like think of how cool that is. Like if you put money into most investments, it's like you put the money in and maybe it grows and you take the money out. But with real estate, you put the money in real estate and the bank gives you a loan and now you're making money on somebody else's money. You have tenants that are actually paying off your loan for you.
00:39:12:06 - 00:39:32:12
Unknown
You also have appreciation, which is the value grows over time. Plus you're getting cash flow if you choose to spend it, which is the difference between what you collected rent and what you have to spend. Plus you get benefits. So you have to give the government less money in taxes and one of the things that we know is happening right now is inflation, right?
00:39:32:12 - 00:40:05:11
Unknown
Yes. Yes. And will you go ahead and just into the microphone, tell everybody about Biden nomics, Biden makes this work. For those of you who don't know Joe Biden, our beloved president, has gone on multiple occasions and he does this creepy whisper thing into a microphone and he says by Dynamics, it's working. And so sometimes I'll be at dinner or I'll we'll just be at home and all of a sudden I won't know that Braxton is near me and I will hear a whisper in my ear that says, that is working.
00:40:05:11 - 00:40:25:16
Unknown
And it's terrifying. He he loves whispers. I love Whisper. Favorite thing, my least favorite thing on the planet. But it was it's so this idea of Biden nomics, this inflation, the fact that everything costs more. One of the cool things about real estate and you and I haven't even talked about this is when everything costs more, prices go up.
00:40:25:18 - 00:40:51:16
Unknown
So if it costs more to build a house, it's going to cost more to buy a house. So when you put money in real estate, real estate by nature always increases as things become more expensive. So if you were to buy real estate ten years ago and hang on to it, it grows at or better than the rate of inflation when we're in inflationary times.
00:40:51:18 - 00:41:19:02
Unknown
So real estate means you can make money off somebody else's money, you can have cash flow, you can have tax benefits, you can have somebody else pay off your real estate. You can use leverage, which is like using the loan and it can hedge inflation and all of that is wrapped up in the other thing that you articulated, which I think is so brilliant that you that you got this that real estate done right, is a win win win.
00:41:19:04 - 00:41:38:10
Unknown
It's a win for a company like ours done for real estate that helps people do it. And for all of the people that we employ, it's a win for the bank who's extending the loan? It's a win for the tenant that gets an awesome home that they can live in, in a nice neighborhood. I showed you pictures of one of the homes that I don't even think you knew that we owned in in Oklahoma.
00:41:38:10 - 00:42:00:13
Unknown
Yeah. Pretty nice home, Pretty nice home. So you've got a tenant that's living in a beautiful home. And then at the end of it all, the investor who does a few real estate helps invest in the property. Who done for you? Real estate helps and gets the loan. Who died for you? Real estate in our property management partners help to find tenants for the investor themselves.
00:42:00:18 - 00:42:22:00
Unknown
Make significantly more than what we as a company make. In fact, let me just I'll give you some numbers. I don't know that we've ever talked about this on a podcast. So just so everybody knows the way the Dunphy real estate makes our money, right? Is is we charge a team fee, and that's a flat fee that goes on the closing documents as a separate buyer paid commission.
00:42:22:00 - 00:42:44:21
Unknown
That's a $7,000 on that property analysis. Right now. We also own strategic lending. And so strategic lending makes a little bit on the loan. We have real estate agents in the market. They pay us a small portion of the commission on the on the real estate that they do. And then we get a little thank you check from the property manager once a new person is onboarded with property management.
00:42:44:21 - 00:43:10:15
Unknown
So at the end of the day, done for you, real estate is maybe making between depending on the property eight to maybe $14,000. That's how much we make on a per property basis. But how much would our client make on that one property that you saw in Florida over about a ten year time frame, a 200,000 sit down for Dunphy Real estate makes, let's call it 10,000.
00:43:10:21 - 00:43:34:17
Unknown
The client makes let's call it 200,000. Who's on the better side of that coin, Yeah. Sorry. I tell you, you're here. Job. Shall we? Should it make you do math? He loves math, by the way. He loves his math teacher favorite, But that's one of the things that I think is so extraordinary. It's so for everybody listening, for those of you that don't know the way that Dunphy real estate makes our money is we make money through the transaction.
00:43:34:19 - 00:43:59:23
Unknown
DUNPHY Real estate in and of itself, is a marketing and education company, and we've got our Moneyball real estate fulfilled, a team that's making money on the transaction. And that's how we generate income as a company. And we cannot exist. We've existed for over 15 years as a company. We can't exist unless we have people that want to do real estate and that see that not just one property, but multiple properties over an extended period of time could really benefit their lives.
00:43:59:23 - 00:44:21:01
Unknown
Otherwise we don't exist as a company. But I've always been a big believer in this principle and it's something that I think I've shared with you, Braxton, is that if you want to succeed in life, you need to provide significantly more value to others than you ask for in return, which is kind of a weird concept. I would another way that I've heard it said is Zig Ziglar.
00:44:21:01 - 00:44:42:00
Unknown
I haven't had you listen to Zig Ziglar yet. He's one of the best we've got him on Audible all shown to you on your little Alexis you can listen to. But Zig Ziglar says you can have anything you want in this life if you'll just help enough other people get what they want. And I think that that's really the key of what we're trying to do.
00:44:42:00 - 00:45:02:03
Unknown
Now as we wrap up this episode, Braxton, I'd like you to give maybe some recommendation. Now, you and I have talked about a lot of books over the years. You've spent some time reading a few books. There are some books that I know have really helped you tell the listener some of the books that you feel like have helped you.
00:45:02:03 - 00:45:24:12
Unknown
These are not necessarily financial books, but I think it's really good for everybody to hear their excellent books that I think could benefit. So what are some of the books that you've read or listened to that I've introduced you to that have been helpful to you? One of the books is The Energy Bus. I listened to it already before and I'm really listening to it now.
00:45:24:14 - 00:45:56:06
Unknown
I've been using it at school recently and the school could be kind of a tough place, sometimes not, and the first rule is I think it's the first rule is you drive your own bus. What does that mean to you? I control how I feel. And if a math teacher wants an unnamed math teacher, she shall not be named on this podcast.
00:45:56:07 - 00:46:27:05
Unknown
Yeah, continue. If a math teacher or someone else like tries to make me feel great about myself, how I feel isn't for them to choose. It's how I perceive the world is how I'm going to feel. That is so wise. By the way, that is like some amazing youthful wisdom right there again, Brax, there are a tons of adults, maybe many listening to this that don't understand that principle that you're driving your own bus.
00:46:27:07 - 00:46:41:05
Unknown
And the only person that can control the way you feel is you. And nobody else can control that. I had to have a talk with your brother about that last night. I heard you witnessed some of that as something we talk a lot about at our home. Yeah, that's great. Sorry, I didn't mean to cut you off. I just think.
00:46:41:08 - 00:47:06:12
Unknown
I think you're awesome. I just think it's so cool that you shared that. Anything else you want to share about the energy bus? I this isn't in the energy bus, but it is one way I try to feel happy when I start to feel sad. And you taught me this actually is if you just put your face into the shape of a smile.
00:47:06:13 - 00:47:35:21
Unknown
Yeah. And it makes you so much happier because you know that yesterday I was having a bit of a rough day. Yeah, you were I And when I got home, I didn't feel like doing anything, but I. I realized that I don't need to feel that way. And I put my face into the shape of a smile, and I, like.
00:47:35:23 - 00:48:02:03
Unknown
Was changing the fear. Yeah. Like just putting your face into the shape. Just get home so you can't see you can't help but feel. It's so far it did. That is awesome. So I idea we've talked about that I have a talk that I've given to teachers because you know how teachers aren't always the happiest people, right? They sometimes forget why they got into the profession that they're in.
00:48:02:05 - 00:48:19:06
Unknown
And I was speaking to a bunch of teachers and I was talking about how you can shift your energetic state. And I had heard that once that if you'll just put your face in the shape of a smile and I love to joke with the teachers or with you, like, listen, I know you're having a bad day. I wouldn't I wouldn't dare to ask you to smile.
00:48:19:06 - 00:48:40:01
Unknown
Heaven forbid you smile. All I'm saying is just put your your face in the shape of a smile. And what's crazy is when we put our face in the shape of a smile, it tricks our brain into thinking that we're smiling because we have all this muscle memory and that our brain still releases the chemicals that make us happy.
00:48:40:06 - 00:48:59:11
Unknown
It's crazy, but it totally works. And it's also especially nice when you're having a bad day and everybody else knows it, and then they catch you in a corner with like a joker grin and they're like, I know he's having a bad day. Why is he smiling so creepy? Is he a murderer? And that's always fun. You know, that's that's kind of, you.
00:48:59:11 - 00:49:17:11
Unknown
You just sitting there like, I always think about these teachers, like having a bad day and grading papers and they're just sitting there and they're like, okay, you know, I'm sure a student would walk by and go, okay, I'm out of here. Yeah, But no, that that's that's great advice. So put your shape, put your face in the shape of a smile.
00:49:17:11 - 00:49:40:07
Unknown
I love that. And thanks for sharing that, buddy. You're so awesome. Any other thoughts? Recommendations for people based on your experience and you're amazing. 12 years before we wrap up the podcast, all the books that I recommend are like, just like it's not. Yeah, there's not another book that you could think of that maybe you like, and that's changed your life at all.
00:49:40:08 - 00:49:59:21
Unknown
Can't out because my dad doesn't write books. No, no, no. So there's not one about gratitude or anything that you've got any benefit from, right? Yeah, actually, I'm going to, I'm going to put you on the spot as we wrap the episode. So I know that you've listened to Flip the Gratitude switches on multiple occasions, right. And you know that I wrote that book for you and for your sister and for your brother and for your mom.
00:49:59:21 - 00:50:16:04
Unknown
I wrote it for us. And I'm really thankful that that book has been sold in more than two dozen countries across the world, which is insane to me. You know, it's like we don't do any marketing for the book. It sells every month. And if you guys are listening to the podcast, you know that Flip the gratitude switch is is near and dear to my heart.
00:50:16:06 - 00:50:33:06
Unknown
But I'm just just curious, selfishly, as your dad who loves you, and also because that book is, you know, so meaningful to me, what has that book or the idea is that we articulate in that book, has that made a difference for you? And it's okay if it hasn't. I feel like it has, but you could tell me if it hasn't.
00:50:33:06 - 00:51:05:21
Unknown
But what if it has made a difference? What has that difference been for you, just out of curiosity? It actually has. And funny enough, I also used it yesterday. You did. You flipped the gratitude switch yesterday. That's awesome. I was not doing it at school. And I. I just thought of a couple things that I was thinking for at that moment that I had and that was giving me happiness even if I couldn't see it.
00:51:05:21 - 00:51:26:09
Unknown
Yeah. At the moment. And just thinking about the things that made me happy and that I was grateful for it, it made me happier. It's awesome. Well, Brax, you're an amazing dude. I love you so much. I'm so proud of you. I'm so thankful that you're my kid. I'm so thankful that we get to hang out and be best buddies.
00:51:26:11 - 00:51:40:15
Unknown
And I think we get two jobs out of me today. I'm thankful that you learned some stuff about real estate. I'm thankful that you learned that time and patience are the most critical components about real estate. I'm thankful that you know that real estate done the right way is a win for everybody involved, but especially for the investor.
00:51:40:17 - 00:51:58:04
Unknown
And I think that we could talk about stuff like the energy buzz and like putting your face in the shape of a smile and flip it. The gratitude switch. And I just appreciate you and I just want you to know how impressed I am of you as your dad and as I hope one of your best friends. I love you, buddy.
00:51:58:04 - 00:52:29:10
Unknown
You're awesome. Any final words you want to share with the audience before we wrap this thing up? My dad's job is really bored. There is not a better way to wrap the episode than not right there. Thank you for coming on. Replace your income bracket and you are the best. And everybody, thanks so much for tuning in. We'll talk to you real soon.