Live Large, Take Risks

Back in 2015, Mitt Romney, former GOP candidate for President made some memorable and powerful comments to the graduating class at Utah Valley University. He advised the students “to experience a fulfilling, purposeful life.” But then he took it a step further and went on to say, “One thing you’re going to have to do is live a ‘Large Life.’” 

What great advice. That is something all of us need to think about and pay attention to. We need to go out and live large and do it our entire lives. So many times, we hesitate to “Live Large” in meaningful and fulfilling ways. Why? Because most of the time we fear that we will fail.

“Failures don’t have to define who you are,” Romney said in that same speech. “Through all my occupations, I have experienced successes and failures. I am asked what it felt like to lose to President Obama. Well, not as good as winning. Failures aren’t fun, but they are inevitable.”

How about you? Have you racked up a lot of failures or just a few? Do you think the frequency of your failures compared to your successes has motivated to try harder and go bigger or has it held you back?  

It seems to me, from my experience, that the number of failures I’ve had is in direct proportion to how large I’ve tried to live.  So, yes, I’ve had a ton of failures but I’ve also had some really huge successes. And I think I had those big successes because of all that I learned from my failures.

I remember one huge loss that I learned a valuable lesson from which led me to some of those very, very large successes. I had decided to lend a large amount of money with a restaurant as collateral. This turned out to be a huge mistake on my part! Why? Because I don’t know much about that kind of business so if it failed, I had little knowledge or skills to save it or run it. And guess what? It did fail and I lost almost all of what I had loaned.

What did I learn? Well, first of all, I found out that restaurants have a very high rate of failure, and, second, I learned that I shouldn’t stray from what I know best.  Not that I shouldn’t ever loan money but if I do, I should loan it on assets that I understand as well as sticking to improved real estate which, ideally, would also be income producing.

I forged ahead and made many millions of dollars worth of loans that were backed by real estate and I was very successful there.  Later, I discovered that I could do even better by owning the right kind of income producing properties. I also, very successfully, ventured into the development of condos and warehouses, where the profits were even bigger although they did come with increased risks. The thing was, those were risks I was willing to take because I knew the business. 

Had the restaurant been successful, I might have gone on to make bigger mistakes in that and other businesses that I knew nothing about.  So, yes, I would say that much, if not most, of my success with real estate backed loans came from lessons learned from that one particular failure and, confident that I’d learned a valuable lesson, I went on to “Live Large”.

So, don’t be afraid to take those risks and make mistakes but just be sure you are paying attention to the really valuable lessons you’ll find in living large.

Thanks a Billion!

I’ve been talking about the great success of the young university student that started with nothing and ended up with billions of dollars worth of income producing properties but this time,  I thought I would try to tease you into reading,  or re-reading, The Next Step to Waking up the Financial Genius Inside You by posting the thank you letter that Dell Loy Hansen sent me years after reading my book and which now prefaces the Pre-forward of the revised edition. This is just one of many thank you letters I have received and shows you how putting my principles to work really can change your life. :

Dear Mr. Haroldsen:

I have wanted to thank you for many years, but like most people I have not until now. When a friend told me you were going to republish your wonderful book, How to Wake Up the Financial Genius Inside You, I saw my chance to return a favor.

You woke up my “genius” over 25 years ago when I had a $200 VW and a ten-speed bike to my name. I wanted to own real estate to gain cash flow and future value as the mortgage loans paid off, but how? Your simple, straightforward plan allowed me, at 23 years of age, with no credit history or capital beyond a 2 week paycheck, to buy my first two homes for $200 down. I owned those homesf for 12 years them sold them for a $72,000 profit plus the years of cash flow I lived on.

When people ask, “can I still do this?” I smile. I truly believe it is actually easier today with better information, computers, more cash in the economy, and obviously, a great deal more real estate to choose from. I sincerely think I could do “better” today with an average intelligence and above average desire than 25 years ago.

For 25 years, I have pursued your principles and continued to grow in economic strength and knowledge. Today, the group of friends and family that I lead as chief operating partner own over one billion in real estate in Utah, Nevada, and California. The cash flows now exceed my dreams and my friends and family are economically secure and grateful. Life is so fulfilling as my options to travel and do charitable work are part of my every day life.

Thank you a million –or more appropriately, “Thanks a Billion!”

Your grateful student,

Dell Loy Hansen

CEO Wasatch Property Management, Inc.

Okay … did I tease you enough for you to read the book?  You could also do someone a huge favor by giving or sharing the book with them–it could change their life and yours too! Get yourself or a friend a copy here.