Founders
Episode 243 #243 Francis Greenburger (Real Estate Billionaire)
Founders

Episode 243: #243 Francis Greenburger (Real Estate Billionaire)

Founders

Episode 243

#243 Francis Greenburger (Real Estate Billionaire)

David Senra is the host of Founders, where he studies history's greatest entrepreneurs. This is what he learned from reading Risk Game: Self Portrait of an Entrepreneur by Francis Greenburger.

What I learned from reading Risk Game: Self Portrait of an Entrepreneur by Francis Greenburger.

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[1:26]  I can be extremely stubborn when I have a hunch about something.

[3:31] I knew all too well that markets can turn on a dime.

[5:40] Money that had once flowed freely dried up over night.

[6:41] I always listened to other people's ideas because that is how you happen upon the good ones.

[6:46] Logic is no match for bureaucracy.

[7:33] This ruthless industry has created far more bankruptcies than it has billionaires. Saying no is the most important judgment that you make.

[9:00] Time to Make the Donuts: The Founder of Dunkin Donuts Shares an American Journey (Founders #231)

[9:09] Sometimes the best lessons that you learn in life are from what you discover in the weaknesses of otherwise very good people.

[15:54] My father was terrible with money. His knack of mismanaging it, losing it, or not making it in the first place was an incredible source of stress within our family.

[19:09] The constant question mark that was my parents's checkbook balance made a lasting impression.

[24:31] His pride in my abilities formed the basis of the self-confidence that allowed me to start businesses, sell books, make crazy friends, and love women at an age when most others were busy with their homework.

[29:40]  The Fish That Ate the Whale: The Life and Times of America's Banana King (Founders #37)

[30:12] I see opportunity where others saw nothing.

[31:34] He doesn't dilly-dally. This guy moves fast. It's not like I proved it once, let me try two or three times. He is like it worked once, it's gotta work over and over again, and he immediately starts to scale it.

[37:40] Don’t interrupt the compounding:  I was skating on razor thin margins that a busted toilet could threaten. But I prefer to remain on the edge as I kept my buildings running rather than sell any of them before they grew to the much higher value that I had a hunch they would one day achieve.

[40:45] The idea that builds his empire: By co-oping I would be dealing with tens of thousands of dollars in sales, rather than hundreds of dollars in rents.

[41:58] Once something works don't dilly dally. Go as fast as you possibly can.

[43:08] Lots of folks thought what I was doing was insane.

[43:17] I knew something that the market had not yet fully embraced.

[47:06] My advice to those with expanding businesses is that they must first make a decision about how they want to allocate their time and structure their business so that the balance reflects that.

[49:33] Children require attention and involvement. This takes you out of your self orientation and makes you invest in another person who can only pay you in one currency: Love.

[50:09]  If anyone had asked me in 1990 what the chances of my business survival was I would have said 1 in 100. I still consider it a miracle that we didn't go bankrupt.

[53:12] The main lesson is never delay discomfort. Waiting or ignoring a problem never solves it. Just run towards it.

[55:36] Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future (Founders #30)

[56:27] Every parent’s worst nightmare.

[1:06:25] Disaster usually rises when short-term profit takes precedence over lasting value creation.

[1:08:21] I don't pick investments. I pick jockeys, not horses.

[1:10:31] Tuxedo Park: A Wall Street Tycoon and The Secret Palace of Science That Changed The Course of World War II (Founders #143)

[1:10:52] The Richest Woman in America: Hetty Green in the Gilded Age (Founders #103)

[1:13:52]  Real security comes from adaptability.

[1:13:59]  Independent thinking in its simplest forms means not assuming that the status quo was the best answer, the right answer, or the most effective answer.

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I have listened to every episode released and look forward to every episode that comes out. The only criticism I would have is that after each podcast I usually want to buy the book because I am interested, so my poor wallet suffers.” — Gareth

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#243 Francis Greenburger (Real Estate Billionaire)

Introduction

"As soon as I took the phone call, I regretted it. All of my authors had a lot of personality. But Jim was never happy about anything. 'I just read about your latest real estate deal in the newspaper,' he said. 'I'm not sure how you can be doing your job for me when you're busy buying up this city.' I didn't appreciate Jim's questioning my competence as his agent when I not only worked hard on his behalf, but had also discovered him from the slush pile." "Not long after my father died, I had taken over the agency. I put a small notice in the New York Times calling for authors to send in their work in an effort to drum up some new clients. Accepting unsolicited manuscripts was very unconventional for an agent. I was deluged with all manners of books. Most were not worthwhile, but I did find a good, highly-stylized, fast-paced thriller built around a political assassination. I like the book and contacted the author to take on the challenge of selling his first novel.

A challenge is exactly what it became. I went through 27 rejections until I found an editor who didn't say no immediately. If the author would rewrite it, the editor would consider publishing it. Jim agreed and rewrote the book, which I resubmitted to the editor, who, nonetheless, declined it. Most agents would have certainly given up at this point, but I can be extremely stubborn when I have a hunch about something." "On the 38th submission, not only did the editor buy it, he paid $10,000, a very generous advance for any first novel and especially one that had been rejected 37 times. Jim's first book, published in 1976, won the Edgar Award for Best First Mystery. It was a nice little success story and a parable on the merit of dogged determination, but it hardly warranted him calling the shots in my career." 'Look', he said, 'You have to decide whether you're buying buildings or you're selling books because I can't have an agent who does both. If you want to keep me as a client, you have to give up your real estate business.' I didn't even need 2 seconds to think about my answer. There was no contest. I wasn't going to let any author, not even James Patterson, who would go on to sell over 350 million books, put an end to my real estate ventures."

That's an excerpt from the book I'm going to talk to you about today, which is Risk Game: Self Portrait of an Entrepreneur and is the autobiography of Francis J. Greenburger. So this book has been recommended to me probably 5 or 6 different times. I bought it a while back. It's been sitting in a pile of unread books. A few days ago, my friend, Mitchell, recommended it to me again. And I said, okay, there's got to be a reason why so many different people have recommended reading this book. Let me pick it up and see what's going on. And I was less than halfway through the book when I realized that this book is nuts, and it's totally not what I expected when I picked it up. And I'll expound on that idea as we move through the book. I have no idea where this podcast is going to go. You'll see what I mean. This is a very odd character. And he doesn't try to hide that fact at all.

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