How to Scale Commercial Real Estate: Building the Next Generation of Lifestyle Leaders

Building the Next Generation of Lifestyle Leaders

May 8, 2022

In this episode of How to Scale Commercial Real Estate, Craig Schulze talks about how he’s achieved financial freedom and success by building his businesses for his lifestyle. We talk about how he achieved financial independence at such a young age, his biggest lessons learned and mistakes from running his business, and what motivates him to live life like he has one shot.

Craig Schulze is one of the worlds leading lifestyle entrepreneurs who have created a lifestyle by design. Throughout Craig's 20 years in business, he always positioned himself in front of the latest trends.

Moving from the corporate world to traditional business-owning five fitness clubs - Craig now has a global business where he has products shipping to over 100 different countries.

His vision, mission, and values are all around creating a lifestyle by design, which is about creating complete time and financial freedom. Craig is now inspiring others to do the same by building the next generation of lifestyle leaders.

[00:01 - 06:57] Building Businesses for Your Lifestyle

How Craig fired his boss at 21 and started a successful business

Being basically retired now, Craig started working at the age of 15 and has been financially independent since

Maintaining his sanity in Covid-19’s lockdown
How Craig stays high-level when building businesses

Craig shares how he was impacted greatly during the 2008 global financial crisis and had to sell franchises and could no longer get loans
How he powered through economic and financial trials

[06:42 - 13:17] You’ve Got One Shot

Segments of business that Craig does and does not invest in

Looking for high growth niches and knowing how to vet bad investments

What success means to Craig

Understanding the seven areas to master in life, to live in joy, fulfillment, and happiness

Visit Craig’s website to get his Free Ebook: The One Shot Movement

Craig shares his inspiring story of how he and his wife lost their first son

[13:18 - 17:41] Mistakes Made and Lessons Learned

Craig’s biggest business mistake – Not managing risk and downside
How to manage risk and downside in today's environment
Mistakes to avoid when hiring

[17:40 - 20:44] Closing Segment

Reach out to Craig!

Links Below

Final Words

Tweetable Quotes

“I've probably, in my last 20 years, invested half a million dollars in personal growth and work with some of the brightest minds in the world.” - Craig Schulze

“If you can reach the point of joy, fulfillment, and happiness, I think ultimately, that is success. Because some of the wealthiest people in the world are spiritually bankrupt.” - Craig Schulze

“I think the biggest mistake I've made in business was not managing risk and downside.” - Craig Schulze

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Connect with Craig Schulze

Website: https://craigschulze.com/index

Facebook: ttps://www.facebook.com/craigdschulze/

Instagram: https://www.instagram.com/craigschulze/

LinkedIn: https://www.linkedin.com/in/craigschulze/

Connect with me:

I love helping others place money outside of traditional investments that both diversify a strategy and provide solid predictable returns.

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Email me → sam@brickeninvestmentgroup.com

Want to read the full show notes of the episode? Check it out below:

Craig Schulze 00:00

Success to me is really, financial success is really, you know, nothing. So I've got an ebook on my website and one of my initial coaching components is the seven areas to master in life, to live in joy, fulfillment, and happiness. And if you can reach the point of joy, fulfillment, and happiness, I think ultimately, that's success. Because some of the wealthiest people in the world are spiritually bankrupt. Or they've got broken family life. You know, they hate what they do, but they're making a lot of money or they have exited their business and they're still unfulfilled.

Craig Schulze 00:00

Intro 00:40

Welcome to the How to Scale Commercial Real Estate Show. Whether you are an active or passive investor, we'll teach you how to scale your real estate investing business into something big.

Sam Wilson 00:50

Craig Schulze is an entrepreneur, speaker, business coach, investor, and amazing podcast host. Craig, welcome to the show.

Craig Schulze 00:55

Thanks for having me. Looking forward to spending time with you today.

Sam Wilson 01:02

The pleasure is all mine. The same three questions I ask every guest who comes on the show: In 90 seconds or less, can you tell me where did you start? Where are you now? And how did you get there?

Craig Schulze 01:10

Look, I started in Australia as an engineer that didn't like trading time for money, fired my boss when I was 21, started a business that ended up being five fitness clubs, 22 franchises, and yeah, then I move with the trends, online business. So I'll build a multimillion dollar online business there. And where am I going now? I guess coming through the pandemic and everything, I'm looking forward to moving forward into my next phase in quantum leaps and bounds.

Sam Wilson 01:39

That's absolutely fascinating. I know you and I talked off air about this. And I think you left this part of your story. You left home at what age?

Craig Schulze 01:47

I was 15, left home at 15. Not 'cause I wasn't loved that was just because our school, I live in a very remote area. And our school finished at year 10. So either work in the mine, or I went to further my education. But my parents didn't have a lot of money. So they you know, from probably 17 I've really financially funded my way through from there.

Sam Wilson 02:08

Wow, that's incredible. And I think you'd also mentioned previously that by age 40, you're basically retired.

Craig Schulze 02:15

Yeah, look, I'm in, in lots of definitions, I would have been retired, I haven't really had to work for the last few years. Because, you know, I don't play with the rules of the current, you know, government enforcement. So I've said I've taken time out for the last two years. But that's been because I've built business for cash flow, invested that, and built wealth, property. And now a number of private companies as well.

Sam Wilson 02:37

That is really what I want to spend kind of the time here, you know, talking about is what does it look like? Well, first of all, I want to know what gets you up, what gets you motivated, what gets you excited in the morning.

Craig Schulze 02:49

One of my biggest challenges over the last couple of years has really been rules, locking me down. Rules to say you can't leave your house for one hour a day, rules that you have to be in your house at 9pm every night, rules that you can't leave five kilometers or three miles in America. But really what gets me up in the day is really I love traveling the world as my oyster, you know, traveling the world spending time with who I want when I want. And I have a real zest for life and living life with passion and purpose. So that's why I built business to lifestyle and able to have business in 120 different cities in the world. And I've traveled to 100 different countries. And that was taken away at the start of this current thing. So I've been on three planes in two years. So what gets me out is really, you know, just being able to live life to the fullest.

Sam Wilson 03:38

What did you do to maintain your sanity?

Craig Schulze 03:44

It's actually challenging, like, I've probably in my 20 years, invested half a million dollars in personal growth and work with some of the brightest minds in the world. And really, you know, what you'd call intimate containers where they're 40, $50,000 a pop. And I actually turned to do that last 2020 when we're in 120 days straight lockdown. And for me, I needed to really connect with some really like-minded people, light-hearted people and I couldn't do it physically. So it was reaching out to a person that had been on my podcasts that I really looked up to. He sold his first business for $50 million. And he was really down a self-care, spiritual path and I did one of his probably six-month programs and that was what really helped with the sanity and one of the things that I took out of that was going back to your inner child. So while I was in lockdown, I had so much taken away but what I did during that time is did things that I liked doing when I was a kid. I bought a mountain bike and start a bike riding with my little kids. I used to do when I was little, chop firewood and make fires of my dad so I got some firewood and made fires with my kids. And the other thing was my son started to climb trees. So, you know, we'd go on to the golf course it was now not open and climb trees. So that was probably one of the things that really helped me get through the first phase, but it just dragged on forever, 300 days of locked down?

Sam Wilson 05:11

Well, that's awesome that you found ways to work around that. But also, I don't know how you did it, to be honest. Yeah, I mean, all of a lot of you to go... I just don't know how you did it. But it sounds like, you know, that was one of the keys there. Talk to us about building businesses. I mean, it's one thing to say, Okay, I'm gonna build a business, but it's another to stay really high level and not get into the weeds of it, but yet somehow still maintain that ability to have multiple focuses. How do you do that?

Craig Schulze 05:38

Well, it's good question. When I was 21 years of age, fired my boss, I was an engineer, and I started a fitness club. And I was passionate about the fitness industry. And I always say, when I'm doing public speaking at age 21-22, you know, I had zero business skills, zero business education, probably at that age zero life skills. And what I lacked there, I made up for the will to do whatever it takes for success. And that was reading books, learning how to sell, really immersing myself the skills and evolvement of the s kills, so sales and communication and all of that. But then I got myself a mentor, who had already walked the path. And he sort of took me aside and helped me and he has for the last 20 years taught me how to build a business properly taught me how to navigate financial challenges taught me how to do joint ventures, and build relationships with potential collaboration partners, and the mentor side of it probably fast tracked me, but also protected me from you know, you don't know what you don't know. It was really, hetaught me what I didn't know.

Sam Wilson 06:47

Yeah, I see that all the time. They can tell you the right way to go. But even more importantly, oftentimes, they'll tell you the wrong way not to go to say, Hey, don't make that mistake.

Craig Schulze 06:56

I was nearly down and out in the global financial crisis. My first six years in business was like, this is easy. Like, you know, everything I touched, I was making good money. I'm in my early 20s. I'm investing in property, building wealth through property. And I was a massive risk taker. And I'd never faced a global economic downturn in my life. And in the space of 18 months, banks stop lending money, I was selling franchises. Banks stop lending money. I was, I had to pay for my own fitouts. And all of a sudden, I was like, down to one more bad decision from the government. And I was out of business. And he really helped me work out a way to finance my way through it. And I didn't have that sort of sound advice. And from there, the lesson was learned to manage risk, manage downside, and we move into this last two years, I was basically not spending, you know, I was making hay where the sun shines and making good business, but I wasn't like blowing the money or anything. I was making smart, wise decisions to manage risk for the next downside, and you just learn that through having really good sound advisory around you. And that's what I do for a lot of people now.

Sam Wilson 06:57

Are there any segments of business that you say, hey, you know, I don't invest in that, or I don't, I feel like that particular asset class or business class is just too risky right now. And you just you want nothing to do with it.

Craig Schulze 08:15

There's always different trends happening all the time. So I probably look for high growth niches when I'm looking at investments. So one of the investments unfortunately, I invested at like 90 days before the global, you know, pandemic scenario, but that was in a plant-based food industry, rapidly growing industry. And in 2010, I invested in online businesses, social media-related opportunities, so you can grow at scale and have sales all around the world to recession-proof yourself. And at the time, I was looking at different, you know, wellness is always a big trend. And there's always going to be a big trend. So I look for trends. But typically, I look for the people running the businesses. The worst investments I've ever made, is investing in a great idea with a shocking owner that runs a business and you know, as I say, couldn't run a lemonade stand, even though they've got 10 lemon trees in their backyard, and the equipment's been donated to him. So really, that's the most important part. One of the companies I'm invested in is an education company and the entrepreneur is someone I highly respect and you know, his business valuation been $65 million. And that was a great investment. So he could go into any business and turn that one on its head as well. But I look at trends typically and, and you know, there's no point investing in blockbuster now because you know, Netflix is around. So steer clear of those older horse and cart business models.

Sam Wilson 09:44

Yeah, that makes a lot of sense. You're investing outside of Australia, right? What's it like? I mean, just on the financial accounting tax side, I mean, that seems like that would be a nightmare being invested all around the world.

Craig Schulze 09:56

Yeah, look, I mean, most of my business is still set up through my Australian business and ecommerce, everything still runs through all my different assets and accounting structures through this entity. So I haven't really gone down the pathway, even though I've had many conversations with people in America and in the UK, that there's been some opportunities that have arose in those markets there and I have explored tax wise, you know, what would it take for me? Do I have to be a resident? Do, you know, what are the tax benefits of doing that? So I have explored it. But I haven't actually taken action on setting up companies in different markets to potentially leverage other opportunities in different markets.

Intro 10:41

Wonderful. Tell us, when I say the word success, what does that mean to you now?

Craig Schulze 10:45

Well, it's success to me is really, financial success is really, you know, nothing. So I've got an ebook on my website and one of my initial coaching components is the seven areas to master in life, to live in joy, fulfillment, and happiness. And if you can reach the point of joy, fulfillment, and happiness, I think ultimately, that's success. Because some of the wealthiest people in the world are spiritually bankrupt. Or they've got broken family life. You know, they hate what they do, but they're making a lot of money or they have exited their business and they're still unfulfilled. So I think, ultimately, if you can find a way to live in joy, fulfillment, and happiness, you know, I think if you wrap the word success around that, I think that's pretty much what it looks like.

Sam Wilson 11:38

Yeah, no, I think that's absolutely awesome. Tell me about your hat. What is The One Shot Movement?

Craig Schulze 11:44

The One Shot Movement is something I created, actually, I've got my book here for a talk early, one shot, you've got one shot. And that whole idea and concept really probably does fit into a vision and mission that I have in life. And the backstory is my wife and I went through the heartbreaking trauma of losing our first son who was a stillborn baby. And that sort of turn life and perspective of life on its head in a really big way. And I had this burning desire to leave a legacy for my son who wasn't going to be able to do it physically. But he could through the message of that story, to inspire people and educate people all around the world. So the concept, I wrote the book, you've got one shot, which literally only got one shot at life, my son didn't have one breath. So what have we all got to lose, go out there and give life your best shot. And then I started to say, Well, why don't I build a following a movement around that. And that's where my podcast is born, One Shot Movement podcast, I interviewed people that have made the most of their one shot at life. And I'm just building infrastructure around that at the moment. So I'm, again, moving into children's book at the moment called Ethan the Entrepreneur, and that's my son to inspire and educate little children, when they're at an age where understanding, you know, treat the world is your oyster, and so on. So my hat, it really is a symbol of my brand, and my message for what I want to do in the world and leave the legacy to inspire people to make the most of their one shot at life.

Sam Wilson 13:17

That is fantastic. So we've talked a little bit about what success looks like, we've talked about the one shot movement, we've talked about mentors, you know, we've talked about business, tell me what's a mistake that you've made that has cost you time, money, or both?

Craig Schulze 13:32

Well, I think the biggest mistake I've made in business was not managing risk and downside. So and that was really through lack of awareness of always thinking that there's gonna be, you know, one season of high growth-type of thing. And so it was like, Hey, I'm going to the bank in my board shorts and t-shirt, bank manager, give me another $200,000 I want to start a new gym and a new business. And I was right on the edge. You know, I wanted to go from zero to hero a lot quicker than what the reality actually was. So that nearly cost me everything. And I went through two years where I was barely, my lunch was worth probably less than $2 a day for two years. And you know, as I said, one more thing went wrong for me there, I would have probably lost, you know, four or five houses and four or five gyms and at the start all over again. So I would say managing risk and downside. If we've learned anything over the last two years, you know, there's always going to be a rainy day, so prepare for it.

Sam Wilson 14:39

I know you alluded to this earlier, where you said that people are what you invest in not necessarily great ideas. So how do you tie those two together with managing risk and downside in today's environment?

Craig Schulze 14:50

Yeah, look, I mean, probably more so, like people in the end will make or break your business and, you know, one of my classic experiences in life I was I was going on my first overseas trip for eight weeks with my now wife, but at the time, we were, you know, just in a relationship. And a month before leaving my manager, the two I see of my whole business resigned after about five years, and I was left in a, hey, what am I going to do, I've got to employ someone to do this really important role that this person's competently been doing for a long period of time and eight weeks overseas was based on the fact that she could run my business and check in. And I panicked, and I employed a person that half my business in eight weeks. And he looked really good on paper from a resume point of view, lack the personal skills, lack the... everything about that person was wrong. And I had, you know, six, seven year clients, and Craig, I love you, but I'll never be back in this place again. So, you know, hiring and firing people can be a big homerun or a big loss. And the same, I look at it from an investment point of view, you know, somebody's really got the right know how they built businesses before, the somebody's looking at it. And for the first time, you know, there's just, it's just chalk and cheese from an investment point of view. But if you make the wrong hire in your business, too, it will tear you apart.

Sam Wilson 16:20

Absolutely. What do you do now? Or what would you recommend people do now to make sure that doesn't happen?

Craig Schulze 16:26

I think going off a bit of paper, and a job interview is blocked with danger, because he can say whatever you want in that 30 minute pitch, and you can write whatever you want. And you can get recommendations from whoever you want, which I had recommendations on, here's from one of the most high profile sports stars, a barrister and someone else. And these type of people wouldn't give this person a good reference. And they did. Now, I always really want to get them. I asked really interesting questions to people when I'm interviewing them, for example, but also want to get to know their personality. One of my best hires was a guy that just said, he laughed, and it was a really crazy laugh. And he goes, you'll probably hear that a lot. And I thought, Wow, what a sense of humor. This guy, he's got a bit of personality, I need personality to rapport with my clients, etc. So there's a technical skills element, obviously, they've got to have that. But then there's this personality and this communication skill and this, you know, are they heart-centered or not? And I think that's a really important part to explore. When you're looking for hire slow fire fast, as they say, right?

Sam Wilson 17:39

Yeah. well, absolutely, Craig, I've enjoyed our conversation today, we've got to learn a lot about what you're doing. I guess one last question to ask you is what do your commercial real estate holdings or just your real estate holdings in general look like today and where do you see things going in the real estate markets?

Craig Schulze 17:51

Look, as we had you on my show, I had a few interesting questions for you. Because the model that you were running there, I haven't really seen it happen on Australian shores. For me, I've been really primarily commercial in residential property investing. And I have a bit of a set of rules around that where it was, you know, within 10 kilometers, or three mile or former from the CBD. And we're hot areas where amenities are moving in. So looking for, you know, areas that are future potential, and they've sort of grown there. And the other model is a positive cash flow residential model, where it's sort of funding itself, but then there's development potential to put 3, 4, 5 houses on the same block type of thing down the track. So those models are still working well here, playing defense, not offense, at the moment through the Global Financial Crisis site. Last month, sold the first house ever in 20 years. So I've invested in 11 houses for my residential portfolio in really good spots, and I sold my first one because I don't want to get caught like I did in the global financial crisis. If the market has a downturn, and everything's unknown at the moment, certainly in Australia, then I don't want to be caught with no renters and lots of mortgage to pay off myself and then not be able to sell your house and it's been a really hot market here for the last 12 months. So I made a decision to sell a house and that's really about playing defense, not offense.

Sam Wilson 19:25

Right. I love it. Craig, thank you for taking the time to come on today. I certainly appreciate it. It's been an honor to have you on if our listeners want to get in touch with you or learn more about you what is the best way to do that?

Craig Schulze 19:37

I mean, usually Craig Schulze is spelled S-C-H-U-L-Z-E. So Craig C-R-A-I-G schulze.com And there's a lot of free resources put a lot of time into my blogging and podcasts that is plenty of fun to be had on that site, download my Work Life Vision book and have a go at doing that to live in joy, fulfillment, and happiness and if you want to buy something, buy my book, You've Got One Shot, which you know that first chapter there is raw and emotional and you know, but there's a lot of life lessons in that book that I've learned over 20 years in business so including how I found my mentor.

Sam Wilson 19:37

Awesome, Craig, thank you so much. Appreciate your time.

Craig Schulze 19:55

Thank you.

Sam Wilson 20:00

Hey, thanks for listening to the How to Scale Commercial Real Estate Podcast. If you can do me a favor and subscribe and leave us a review on Apple Podcasts, Spotify, Google Podcasts, whatever platform it is you use to listen, if you can do that for us, that would be a fantastic help to the show. It helps us both attract new listeners as well as rank higher on those directories so appreciate you listening. Thanks so much and hope to catch you on the next episode.