Long Term Wealth Building with Rick Sapio

For this episode, I welcome fellow real estate investor, Rick Sapio. Rick is a life-long entrepreneur, #1 best-selling author, and TEDx speaker. He has founded more than twenty companies, taken nine companies public, led seventeen corporate turnarounds, and completed capital raises for over thirty companies and funds. Rick also founded The 100-Year Savings Solution, which helps real estate investors become their own source of financing by leveraging the cash value inside of whole life insurance policies.

Rick first shares his background story. He is the seventh of nine children. When he was a kid, his mom suffered a nervous breakdown from which she never recovered. When Rick was eleven years old, his dad got diagnosed with cancer. He was given only 6 more weeks to live, but ended up having another two and a half years which he spent teaching Rick and his siblings how to be resourceful. Rick believes that it was his father who instilled in him good values from which he was able to make good decisions.

Rick then goes on to talk about the first business he started. He earned his first income by delivering New York Daily News to over 200 doorsteps each morning, seven days a week. Then when he was thirteen years old, he opened a bicycle shop with one of his friends. He would buy used bikes, fix them up and sell them. This later evolved into him building engines and cars through college. At the age of twenty-three, he was able to buy three rental properties.

We then move on to talking about the one thing that Rick believes really changed his life. After his father died, Rick was determined to find mentors. His first mentor advised him to get an engineering degree and even though Rick never thought about college before, after that one conversation his path was set. He was able to get a scholarship and after he graduated he got a job in a company that bought bonds of bankrupt companies. As a result of doing that in the late 80s and early 90s he got to interact with some amazing people that were in that same space, people like Warren Buffett, Carl Icahn, and Leon Black. This led to Rick starting his own company, which he still has twenty-seven years later.

Then we discuss what value-based decision-making means to Rick. He explains that every decision we make in our life that is not aligned with our values, has a high probability of going against the grain and causing issues. He also shares that his main values are simplicity, probability, and leverage and how his values allow him to do all the things that are important to him, both personally and professionally.

Eventually, we discuss Rick’s amazing project of interviewing 40 billionaires and the lessons he learned from them. It all started with Rick visiting Thomas Boone Pickens on his ranch (that was bigger than the state of Rhode Island). This was his first billionaire interview and it just kept growing from there. Rick explains that it’s all about providing value. He learned that they needed a relationship with him as much as he needed one with them because it was all about value exchange.

Lastly, we talk about the 100 Year Saving Solution. A long time ago, one of Rick’s friends turned him to dividend-paying whole life insurances. This led Rick to partner with an insurance agency and that is how the 100 year real estate investor was created. The thing that Rick loves most about it is it keeps people focused on the long term. With the 100 Year Saving Solution, the money you invest goes into the policy first, and then you borrow against the policy and buy the asset. This way, you have two assets and a way to leverage.

Don’t miss this episode of the Just Start Real Estate Podcast with Rick Sapio, and get advice from a man who has talked to the best of the best in the world!

Notable Quotes:

“My whole life has been about finding mentors and making something from nothing.”

Rick Sapio

“If you instill in people values to make decisions from, they don't make as many mistakes.”

Rick Sapio

“When you make a mistake, it sets you back five steps.”

Rick Sapio

“Simplicity, probability, and leverage are the operating values that I use in my personal and business life.”

Rick Sapio

“New York Daily News and 200 people on my route. Didn't matter if it was raining, if there were hurricanes or ice on the ground. It had to be delivered before 5:30a.”