In this episode of the Best Passive Income Model Podcast, Mark chats with reluctant entrepreneur, Dan Lok. Listen in as Mark and Dan talk about his journey from a penniless immigrant to a multi-millionaire who owns 21 companies, tinkers around on Facebook making $150,000 a month in income, having a mentor who gave him the million dollar year of his life, online marketing, writing books and being the guy behind the guy.
Dan Lok talks about how he was an immigrant who didn’t speak a word of English and going to North America at the age of 14. By the time he was 17, his father’s business went bankrupt and he had to grow up and be a man. His journey from rags to riches began because he had no choice. He needed to take care of his mother.
Dan’s journey to success had many more failures than successes. He attributes part of it to the timing. He came into the business during its heyday. As a result, he got invited to speak in many different conferences and was making a ton of money as a speaker and information marketer. He took all that money and invested in businesses outside of information marketing.
Today, Dan has 21 companies, which he either owns or has a stake in. These companies include real estate education, software, and financial planning. When asked how he had the time to mentor people, he said that every deal is different. Usually, the mentoring happens at the initial starting phase of the business. He either puts in his time, money, or expertise, depending on what his partners need. His philosophy is instead of having 100% of a big pie, he would rather have 25% to 75% of many small pies.
For Dan, freedom is having the luxury not to do something you don’t want to. It’s being able to walk away from any deal. It is about being in control of your time. Currently, he runs his companies from his home because he chooses to.
When asked what kind of advice he would give a 25 year old, he said (1) try to be the best version of yourself and (2) don’t go out there and start your own business. He introduced the concept of the wealth triangle that’s made up of high-income skills, scalable business, and high returning investment. He suggests you focus first on the high-income skills. That will ensure there is a steady cash flow coming in. It also allows you to start a business from a place of strength. The worst place you can be in is when you’re desperate.
Dan has invested money in real estate all over the world. He likes Hong Kong because it’s not rent controlled and you can double your rent if the market can sustain it. He also has investments in Taiwan. He prefers investing in commercial properties. As long as you buy in the right location, he says it’s a passive commercial business.
On Mark’s business model, Dan says that you’ve got to know your stuff. What’s best for Mark may not be best for others and vice versa. What’s more important is that you find your niche. It’s not what you do but it’s how you do it that matters.
TIP OF THE WEEK:
Mark: Learn more about Dan Lok and his books at Danlok.com.
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