Scott: I’m excited to have somebody on the show who’s going to share his wealth of knowledge not only in real estate investing, but the finance field aspect and how it’s helped him build systems and do some amazing stuff on the real estate side of the investment vehicles out there for you. Our buddy, Chris Naugle, is joining us. He’s a recognized entrepreneur, speaker, trainer and real estate investor. He has several years of high-level experience in financial services. That’s what we’ve got in common. We’re both ex-financial advisors out here. I helped him manage worth $30 million in assets under management for them. That’s a nice big number for you. You’ve maybe seen him and his wife, Lorissa, renovation designs on HGTV Risky Builders, House Hunters, My Lottery Dream Home. We’re excited to have him on to talk about his passion of real estate investing. Chris, how is it going?
Chris: I’m doing great. How about you?
Scott: I can’t complain. I’m trying to stay out of trouble. You’re also the host of the Real Estate Money School podcast. We’ve got some fellow podcasters, ex-financial advisors. We’re kindred souls from another round. Why don’t you reintroduce yourself? Can you talk about your journey to where you’re at now and your background?
Chris: The journey, I love talking about this. I’ve got to take it back to the ripe old age of sixteen years old. I grew up in a lower-middle-class family. We didn’t have money to do anything besides keeping a roof over the head. Mom and dad got divorced when I was young. Dad was an alcoholic. My mom had to raise me. That’s not the norm for everybody, but that’s how I grew up. I grew up not knowing anything about what it was like to have money. At sixteen, I got a big boy job. I was working for this restaurant. I was degraded so badly at this restaurant that every day I’d come home, I felt like I was worthless. My mom saw this, but she didn’t know what to do about it. I was probably depressed, but it didn’t matter.
The key thing that happened is one day I got pushed to that limit and I came in and I did the most important thing in my life, and I decided to quit. I quit trading hours for dollars at that moment. I rushed home, told my mom thinking she was going to be mad and I said, “Mom, I’m going to open a clothing line in the basement called Phat Clothing Company,” because that was what was cool back then. That’s exactly what I did. I took a $500 loan out from my local credit union and off I was making t-shirts in high school, selling them out of my backpack. That evolved.
At seventeen, I was selling them all across the States. I was trying to become a pro snowboarder at that time. I was doing a lot of traveling. Every time I’d travel, I’d see these awesome shop owners, these guys that I looked up to that I sold my clothes to and they had these awesome shops. I’m like, “I got to have one of those. I have to have my own store.” At seventeen, I came up with a big dream of, “I want my own store, Phatman.” Phat clothing and I was the man, you get the rest. All I needed was $70,000. This is my first dive into money. I thought, “No big deal. I’ll go around and I’ll ask everybody in my family and everybody that has money to lend me $70,000.” Bear in mind, I’m seventeen. I went around and you know what happened. I heard, “No. No way. Hell no. Absolutely not,” on and on. I almost gave up. I finally got a yes, but I got a yes from that one person. Every no puts you one step closer to a yes. I got a yes, but the yes came from somebody that I call now the unconditional one and it was my mom, but my mom had no money. She had no money. She could barely make ends meet.
In the divorce, she got the house and that house had exactly $75,000 in equity in it. My mom went out on the line and she put that house up for collateral so that her punk, seventeen-year-old snowboard kid could chase his dream and open Phatman Boardshop. I look back at that moment, “That was a foolish thing for a mom to do. That was a silly thing of her to do because what if I didn’t make it? What if I failed? What were the consequences of that action?” To my mom, those consequences were much bigger than losing the house. Those consequences were her son not being able to live his dream because she was never able to chase hers. A lot happened in between there but I’m going to fast forward quite a bit. That store went good. A few years later, I paid that loan off, I threw a big party and a lot happened there. It kept going on and on and I kept expanding those stores. I went on to be a pro snowboarder.