Rowderick Whitehead: How to Build a Billion-Dollar Business from Scratch | DSH #1482

Please add up all the money if it says if it says you need 500,000 or would you for your idea double it?

Damn.

So you go in and you take your company, your corporation, because that's just for getting money.

The money is just, the business is just an excuse to get the money.

All right, guys, Derek Whitehead here today, pulled up in a suit in Las Vegas.

The heat ain't stopping this, man.

Nah, man.

This is my uniform, brother.

Let's go.

This is my uniform.

You wear that suit every day?

Every day.

I don't care if it's 110.

Damn.

Yeah, man.

I mean, the police have a uniform.

You know, the, you know, the

basketball, they got a uniform.

When you're talking business, I try to, you know, if you're talking to Bezos, he's going to be usually in a uniform, in a suit, you know, Congress, they're in a suit.

So I figure, you know, I might as well wear a suit.

Yeah.

You're busy.

Serious business.

You're a businessman.

You help people make money, save money.

Yeah.

Fund.

Yeah, that's what I do.

So what we do is, is a scratch pubco.

You know,

I worked with some high-end banks and

I know what the banks want.

So they shouldn't have taught me this.

So I'm going out and I'm teaching, you know, what they call a scratch pubco.

So a scratch pubco is what's a scratch pubco?

So scratch pubco is taking a person or a company from scratch all the way to a publicly traded company, which is the highest valuation of any company, the highest valuation.

So they call it a scratch, nothing, everybody's something, but taking a person from scratch, from nothing, to a publicly traded company, thus scratch PubCo.

So you won't hear that on the internet because this is usually stuff that's like skull and crossbone schools.

Yeah.

You know, they teach a lot of people in

like the regular business schools.

You can have a PhD and they're not going to learn this stuff.

Yeah.

Because this is, they teach people that go to the regular schools to work for big companies, you know.

Yeah.

But the

people that talk about Scratch Pub codes, they teach them to run the world.

So they come out of Harvard, you know, Princeton, you know, those big schools.

Let's call them skull and crossbone schools.

I've heard of it, skull and bones, right?

Yeah.

Secret society.

Yeah, secret society.

But it's

usually the 15% they understand this.

and the 15 are basically workers so they're they're meant to to run the company for the 15

80 20 rule right 80 20 rule yeah or 85 15.

yeah it's getting this soon to be uh 90 10.

you think it's going more towards that way oh definitely definitely you got uh you got stuff going down like um the great reset

You know, you know, quantum easing.

You know, how many economists?

So, you know, I I pay attention to things like that.

I don't even know what that is, quantum easing.

The quantum easing.

That's like if you notice, which most people don't notice, I'm a banker.

So if you notice, they're taking the money back.

They're taking the change back like they did in 1929.

They took the money back.

They said, hey, I need money.

Go in the bank.

I got $50 million in the bank.

They say, well, so I need to get payroll.

So give me a million.

We don't have it, sir.

What do you mean you don't have it?

We don't have it.

The Fed didn't give us back any money.

They took it, but they didn't give it back.

So that's what they do.

They take the money back and they

bring out new money, but they didn't bring out any new money.

So people heard about that.

So they went for a run on the bank is what they call it.

So they went in and said, I'm going to go get my money, whatever's in there, I'm going to get mine.

So everybody made a run on the bank and left everybody else.

nothing.

So people who are millionaires and billionaires were all of a sudden broke.

Well, that's what's happening kind of today.

It's kind of what they call quantum easing, but they're not doing a run on the bank.

They're taking the change back, if you notice, there's no change, right?

And they're switching it to what they call electronic money.

But we've always been on electronic money since Nixon.

So nothing to be afraid of.

You know, 1970s, Nixon took us off the gold standard, right?

There's nothing back in the money.

It's what they call fiat money.

So the quantum easing is they're taking all the money back, and now they're going to issue you like a card.

You know, that's quantum easing.

Wow.

Yeah.

Now that you said that, I haven't seen loose change just years.

No, you know, because, yeah, no, they're taking that.

I use my card whenever I go to the groceries.

Like, I don't use cash anymore.

Yep.

So, so that's the new thing.

You know,

you have the great reset.

They're resetting the monetary system.

You know, so things like that are happening.

So what I do is I teach people to, you know, be prepared for some of those things and

not be prepared for the recession.

Not many people can really be that prepared for a recession unless they have huge amounts of capital where they can go in and say, hey, you know, if something happens,

I have a backup to take advantage of what other people's lose, what other people's losses are.

Right.

right so that's the smart way to do it but um the scratch pubco it's uh

it's a it's a good way to how do i explain it uh to take the three levels the three levels a lot of people say i'm looking for money and the and when they go out they say i'm tired of working here you know i'm tired of working for this making this guy rich so they quit their job to take their 401k

and maybe they'll make it maybe they won't a lot of people start businesses but they don't have any money a lot of people do real estate but they're house poor a lot of real estate but they're not liquid or liquidity and so what they do is is uh they spend all their money trying to get where they're where they're trying to get get to and they don't know the rules so it's rules to this just like if you drive a car You know, if you don't understand the rules, you never read the rule book, then you're going to keep going through that red light.

Eventually, you may work out a few times, but eventually it'll catch up to you because you should know you're supposed to stop at the red light.

Well, there's rules to baseball.

There's rules to football.

There's rules to basketball.

But unfortunately, they don't teach us the rules.

They should teach us, since money is so important,

you should know this stuff in grammar school, in high school.

It's almost like breathing.

You know, if you don't have air, you don't have money, you're really going to have a hard time in life.

All right, guys, Sean Kelly here, host of the Digital Social Hour podcast.

Just filmed 33 amazing episodes at Student Action Summit.

Shout out to Code Health, you know, sponsor these episodes, but also I took them before filming each day.

Felt amazing, just filmed 20 episodes straight, and I'm not even tired, honestly.

So, I would say they're very unique.

It's going to be the future of health and medicine.

Code Health has been awesome.

Feel the drop and go code yourself.

My thing is, is to teach people some of the rules, right,

that were taught to me.

You know, I've been very fortunate, very fortunate

to be taught by some really, really bright people in finance.

And so, what they taught me is one of the most important things they taught me is:

this is a corporation.

You get money to do business.

You don't do business to money.

Wow.

That's not what they teach in business school.

That's not what they teach.

They teach you how to manage other people's company.

They teach you,

you know,

stuff like total quality management and all that.

You know, if you want everybody to, somebody doesn't come in today, this person could come in to take over, you know,

all that stuff.

But basically, if you want to

have what they call a micro and a macro, right?

So a micro is somewhere between $500 to $1.5 million,

you know, so because

that's what they call an accredited investor, right?

So they will vet you to see that you can lose $250,000 and not worry about it.

If you can't lose $250,000, not worry about it, you're in trouble.

Right.

So an accredited investor should be, in my opinion, about $1 million to $1.5 million.

So you could lose $250 million and you could still not worry about it and move on.

Not destroy your family.

So in order to do that, there's rules.

And pretty much the money is pretty much free.

It's like a puzzle.

It's like

when you're born, they pour a puzzle out in front of you as a gift, right?

U.S.

is the bomb.

U.S.

is the bomb.

There's really no place else on earth that you can do what I'm talking about except the U.S.

Really?

Oh, yeah, yeah.

Where else can you go have a take a corporation, a special purpose entity, right?

Because certain companies are for special purposes just to get money.

Certain companies, not an LLC, not an S-Corp, but a C-corp.

And so,

Where can you go and walk in a bank with decent credit and and say, I want Willie to get some money?

They say, you want some money?

No, Willie Corporation, not me.

Okay, this says, well, where's your documentation?

No, doc.

Stated income.

I'm not giving you any documentation, right?

And they say, well, since you're not giving me any documentation, who's going to sign for this and make sure I get paid?

You're going to say, I am, because I'm the personal guarantor.

So now they say, well, okay, okay, since you're the personal guarantor, we'll give you credit cards.

So you don't need a personal guarantor for credit cards.

So a lot of people on the internet, they teach, you know, you go in and stated income, and you go in and get yourself two $25,000 cards from Chase.

Then you go in and get another

two cards, $25,000 from Citibank.

Then you go in and get another, maybe American Express, you know, oh, well, that's $152,000, $200,000.

Well, that's 100 air.

So it depends on where you want to be,

dictates the game plan.

Dictates the game plan.

So

if you walk in and you just want to go have a picket fence and you need some startup capital for your business, fine, go in and get yourself some credit cards.

That's 100 air.

It's not a millionaire, right?

But in my opinion,

everybody should have a micro and a macro, right?

So I ask people all the time, I says, you know, when you get the money, first of all, what are you going to do with it?

Because the bank's going to start taking that money back for, you know, to service the loan.

Yeah.

So you should know what to do with it.

And so a lot of people say, I don't know what to do with it.

I said, well,

when you come up with something, what to do with it,

make yourself a summary.

Not a business plan, but a business summary.

So you can download that online, free business summary for free.

You know, download that and follow every step.

This way you look down like the eagle and not up like the rabbit.

See, the rabbit goes one step to the next step.

All he sees is the next step.

But the eagle says,

hey, I see a rabbit over there.

I'm going to go get him.

And the snake's moving slow.

I'll get him later.

So he knows exactly what to do.

He says, you know, I can see all terrain.

So that's what business people should do when they're going after their wealth.

They should go in, do a business plan, and act as though they already have it.

I love the, you already have it.

So now you're going to fill out that summary.

See, because a business plan is when you have two years of taxes and you've been in business.

You don't do a business plan unless you have two years of taxes and you've been in business.

You do a summary.

If you don't have two years of business.

And of course, we're going to go in and do a pitch deck when we want to play with the big boys and the big girls.

Right.

So first thing is, is my opinion, and this is all from my opinion,

you go in, you figure out what you want to do.

Then you say,

well,

I want to be, I want to have, I want to be 100 air.

Then you make a plan to get that, you know, one, two, three, four, five hundred thousand dollars, nine hundred thousand dollars.

That's a hundred air.

And so you go and you write your pitch deck and you say, hey, you know what?

This is where I am.

This is the name of my business.

You write it all out and don't skip anything.

And you say,

This is where I'm going to be.

I'm going to be in Vegas.

I'm going to have my place in multiple states.

How much is the rent?

How many employees am I going to have?

How many cars do I have?

What are the necessities?

Add up all the money.

And

if it says you need $500,000 for your idea, double it.

Damn.

So you go in and you take your company, your corporation, because that's just for getting money.

The money is just, the business is just an excuse to get the money.

The business is not really to do business.

It's just an,

I'll put it this way.

I had a guy, a very famous guy, very, very rich multi-billionaire.

His name was John Noble.

He was a mentor of mine in San Diego.

He recently passed

RP.

Yeah, yeah.

And John Noble.

And he said to me, he says,

I had this chain of restaurants in San Diego.

But my first one, he walked in and he says, Mr.

Whitehead, I said, yeah, that's what I was struggling in the first.

He said,

what is it that you want?

He had a heavy accent.

I said, well, John, you know,

I love this restaurant.

He said, you're too stupid.

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Please don't forget to like and subscribe.

It helps the show a lot with the algorithm.

Thank you.

I said, what?

I said, he's about this big, you know, little cool Jew guy, right?

I said,

what?

You're too much or stupid.

I said, what do you mean?

He said, don't fall in love with the business.

The business can love you.

I went home that night and I thought about it.

I was like, wow.

He said that car

can run you over.

Because I had a car dealership.

I went and got a car.

I got two car dealerships.

And we sell Jaguar, Mercedes, BMW, BLE, 6920 Mirror Mar Road, San Diego, Plug.

So

I said, well, John, he says, when are you going to sell that car?

I said, he said, you had that car for two months.

I said, I love this car.

He says, you're too much of stupid.

I said, John, why do you keep calling me stupid?

He said, because you're too much of stupid.

I said, I'm training you.

You can't fall in love with a car.

He said, A car can't love you back.

It'll run you over and it won't even say sorry.

It'll just sit there and look at you.

He said, This business, you can fail and it won't cry for you.

He said, So don't fall in love with it.

Everything is to be sold.

So every business should be built to sell, even if you don't intend to sell it.

Wow.

So that was a serious lesson I learned.

So back to this thing.

He said to me, What is it that you want?

I said, John,

I want a chain of restaurants.

He says,

and why are you doing that?

I said,

so I can sell food.

He said,

why are you doing that?

I said, so I can

get money.

He says, why don't you just go to the bank and go get money?

I said, what?

He said,

why don't you eliminate the middleman and go get money?

He says, who has more money than the bank?

They print it.

You can't have more money than the monopoly game.

They print it.

They make it.

I went home again.

I said, oh, man, this is crazy.

So I went by, I said, called him next day.

He said, I was expecting your call, but you took too long.

He said, you should have asked me right then.

I said, so, John, can I ask you a question?

He said, yes.

What's the question?

I said,

how am I going to go in just to the bank and go get some money?

I said, why not everybody else doing this?

He says, because everybody doesn't know.

He said, and the game is to be sold and not told.

So he said, the only way I'm supposed to be giving this information is if I'm getting paid or some philanthropy or something, you know, or I'm drinking.

And lucky for everybody out there, and I've been doing some drinking at that point.

Wow.

You know, but that's just water.

It's just what a story.

So

he said,

this, you need to get a corporation.

I said, John, I have a corporation.

He says, what kind of corporation?

I said, LLC.

He said, that is not a corporation.

He said, that is a limited liability and no bank is going to give anything to anybody limited.

I said, are you serious?

What do you mean, limited?

He says, that is for doctors.

Risky things.

Limited LLC.

He said, so banks are going to not give you very much.

And then later on, I started, you know, I became an auditor and I learned what he was saying was true.

So the bank will not lend you money

if it's risky, if it's risky.

So when you look at Experian,

and everybody should have an Experian account, right?

$189 per year to keep up with the business credit, which is, you know, the five credit bureaus.

Experian business, Equifax business, small business financial exchange, Dun and Brad Street, and PayNet.

Experian business, Equifax business, small business financial exchange, and pay net.

And Dun and Brad Street, I think I said that.

Yeah.

Why should they know that?

Because you should know what you want and where to go when you want the money.

So let's say you want a chain of cars.

You want a bunch of cars to do

Turo or something like that.

Where do you go?

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You know as a CEO where to go.

So if you want to get cars and equipment and phones for your company and

furniture for your business, you use other people's money, other people's ideas, and other people's efforts.

These are rules.

So if you follow the rules 99% of the time, you'll more than likely win.

If you don't, you will more than likely fail sooner or later.

So if you go in and use other people's money, that's the bank's money or investment money, investors' money, because a lot of rich people are lazy and they don't mind giving you money if you have a great idea or a great business.

So

we go in and we take, let's say we want cars.

We're going to go to PayNet.

That's who they're going to check.

So you build up your pay net.

That's a bureau for the for the corporation.

And you walk in, go get it, go to Ally and go get your cars.

Let's say you want to go in and uh to like

those store cards like Dun and Brad Street, not Dun and Brad Street, like Costco

and maybe Home Depot.

You want to go in, you're a builder, you want to go in and get their stuff 30, 60, 90 day net.

You're going to go in and say, build up your Dun ⁇ Brad Street.

That's not for money.

So a lot of people on the internet, they say, go in and get your 80 pay decks.

Well, an 80 pay dex is like an 800 credit score for your business, but you need five to eight trade lines to have an 80 pay dex,

right?

So a lot of people on the internet, they say, go in and get your Euro line.

Go in and get your,

not your Euro line.

They said, no, they say, get your Euro line, get your quill,

you know, those little merchant accounts.

Those little accounts, you can use the card, but you can't use it for money.

You know, Costco.

So when people ask me that, they say, Mr.

Whitehead, I got my 80 pay decks.

You know, what's next?

I said, really?

Who the hell is going to give you one, two, three, four, $500,000 because you got a $50 damn quill?

Nobody.

Right.

So they say, oh, man, I saw this guy on television.

He said, go and get these merchant accounts, You're quill and all this.

And I said, man, the banks don't even pay attention to that when they're talking about giving you money.

So those are merchant accounts.

Now, if you want to go in, let's say, get an installment line of credit, you know, like,

you know,

and by the way, those credit cards are going to be done in Brad Street.

So build up your Dunn and Brad Street if you want those, those merchant accounts.

Next, if you're going to go in and get your, let's say, line of credit, an installment line, that's usually, that's what they call

rate,

what the interest rate is and

how long in term, rate and term.

So you go in, if you want to get an installment line, it's going to be rate and term.

That's usually going to be small business financial exchange.

Small business financial exchange, what they do is that's UCC one, UCC three.

So let's say you go get a house or an installment line, you get a house, you pay it down, you're done.

You go get your car, you pay it down, you're done.

That's an installment line.

And they're going to file in the city that you live in or wherever the corp is, they're going to file in the city county assessor's office.

They're going to file what they call UCC one.

That means we're in first position.

So anybody comes after us, we're going to get our money first.

After you pay it off, then that's going to be UCC three.

That means they paid it off, right?

So if you want to get or installment line of maybe 100 million, 5 million, a line of credit where you get a line and you pay it down, installment line, and you're done.

Well, that's going to be small business financial exchange.

So you go build them up.

Now you can get the money.

If you want to go in and let's say

revolving, like your revolving lines of credit, then that's going to be

Experian or Equifax business.

So you go in and build those two guys up, and that's the revolving.

That means you get a line of credit, you pay it down, and you use it again.

It's revolving.

So that's going to be Equifax or Experian.

And then they may shift it over to Small Business Financial Exchange.

Because Small Business Financial Exchange is banks talking to banks.

Like they have something that's called Plaid.

Are you saw?

Yeah, yeah.

So you go in your Plaid.

Plaid is banks talking to banks.

You know, the plaid I'm talking about, maybe the same one you're talking about, but I'm talking about plaid when you go in and,

yeah, the bank says, let's get some bank statements.

Let's see some bank statements.

Yeah.

You go give them the bank statements.

Then they go check it out and they say, well, they use plaid to make sure that they talk to other banks to see that that money is really there.

Right.

You know, so they get

very savvy.

They don't play games with their money.

So you should know the five bureaus, how to get the money.

Now the next thing is

you get money to do business.

You don't do business to get money.

So people go and they say, I got my LLC.

Oh, you got your LLC?

Man, I've been at an LLC.

Well, that's for risky things.

So why do you have an LLC if you want money?

Remember what John Noble told me?

He said, do you want a business or do you want money?

He said, if if you could walk in right now and get $5, $10, $15, $20 million,

would you say, no, I don't want that.

I want to first go work for it and open up a business.

Hell no.

Hell no, right?

So that was some serious information that he taught me.

And so

I learned later on, I said, okay, so banks, they don't like limited anything.

It's like walking up to a lady or a guy walking to a guy.

I don't care.

I'm just saying.

That's Pride Month.

I'm just saying.

I don't care what it is.

I'll just, I'll give an example, right?

Two each is own.

So let's say you walk up, you're talking to some person at the gas station.

Hey, you know what?

We've been talking for a long time.

I'd like to take you out.

You know, maybe, you know, we got a lot of energy, a lot of synergy.

And they says, you know, he says, okay.

Or she says, okay.

You know, one or the other.

I don't know.

So

then he says, the person, let's just say it's a he, he says, but before I, before I take your number, I want to let you know.

Yes.

He says, yes.

He says, I have liability.

And that person looks at him like,

what do you mean you have liability?

What you mean you got liability?

And then he says, and I also want to let you know, because I'm an honest person.

Yes.

I'm limited.

And you're looking at him like,

what you mean you limited?

What you mean limited?

What's your problem, right?

So

then the person says, you know what?

I left us.

I got to go pick my baby up from school.

What do you mean?

It's 12:30 at night.

What you mean you got to pick your baby up from school?

But he's in night school.

Well, I got to go, right?

So goodbye.

You're never going to see them again.

That's what the bank is going to say to you when you walk in talking about I want money from my company so I can do business.

They don't like risky things, right?

So first thing is, is that's an LLC is for like doctors or like

trucking.

That's risky, dangerous.

So they don't lend money to, they don't lend money to like real estate unless you got six final HUDs because we do real estate too.

But

unless you have six final HUDs, then you can go to the bank and say, I did this as a business and I can show you on this HUD.

A HUD is when you go in and

you have your name on the deal.

Okay, so then the bank will take you seriously.

But they don't like restaurants.

I know I had a chain of restaurants in San Diego.

A lot of them fail.

Oh, a lot of them fail.

But, you know, I was again, I was taught by the best.

I was very lucky to be taught.

You know, you build them to sell.

Right.

And so

they don't like restaurants.

They don't like construction.

Really?

That's dangerous.

They don't like

trucking.

So I would suggest to everybody to go out, if they're going to do business, to go look up a sick code,

an SIC code.

A SIC code basically says

it describes what you do.

And I should know, I used to teach some of these people.

Yeah.

So it's an identifier.

It says, let's say 53621.

That means you're a trucker.

And then the next number would be in the sick code would be

what industry you're in.

Let's say that's 36524.

So I'm in a trucking business.

I drive a truck in the transportation industry.

So that's how they decide what industry you're in, what you do, and are we going to give them any money or how much?

So you should go into Google and you should look up sick codes that banks like or sick codes that they don't like.

And don't pick the ones they don't like.

That's great advice.

It's pretty simple.

Because I'd assume like marijuana is another one they don't like.

They don't like marijuana.

So what we do is, is we build the corporation

and then we put underneath the corporation what they call

a special purpose vehicle.

Not going to find that any.

You can look that up, a special purpose entity and special purpose vehicles.

But I usually like the seven structure because somebody's going to come after some of your money.

Right.

And so that's why they have like holding corporations and corporate veils and things.

So it's like a seven structure, I call it.

Some people like this, some is like this, seven structure.

So you take the corporation that you're going to use with no specific name, because remember, sick codes.

They're going to look at the sick code.

So if you lock yourself in a specific name, they're going to say, we don't like that, or maybe we like that.

So don't lock itself, lock yourself in the name.

So you make, if you notice,

Starbucks doesn't mean coffee.

Right.

It's not in the name.

It's not in the name.

Like Walmart doesn't mean cheap clothes.

Right.

Sony doesn't mean

televisions or appliances.

Let's say one more.

Let's say.

How about Apple?

Apple doesn't mean computers because they know better.

That's why they do better, right?

So they don't lock themselves in a sitka, in a specific

name.

So the first thing is, is you say A, B, C, Inc.

Something means nothing.

Yeah.

Right.

Once you name it that means nothing, that's going to be the C in the seven structure in the corner of the seven.

Then you're going to have protection at the top.

Somebody's coming after your money.

So you're going to have a C corp.

then you're going to have the holding corp that holds the assets.

So you're going to write a letter and say, Everything we own belongs to you.

And you notarize it.

Now you're straight.

So they can say, well, I'm suing you.

You know, well, okay, that's fine, but you're not getting any assets.

You're not getting because we don't have any.

It all belongs to them.

And we made that agreement prior.

to you talking about suing me.

Wow.

So that's what they call a corporate veil.

Then there's a super veil because we have a micro and a macro.

So

are we going for the baby money, which is our micro?

Everybody should know what's going to get them that 1.5 mil so they're an accredited investor.

But everybody should say, this is a billion-dollar world.

They got a guy.

They got a guy named Floyd Mayweather.

He fought for 40 minutes for almost a billion dollars.

This is not 1965 where you're, with a million dollars, it's a lot.

Yeah, being a millionaire is not a flex anymore.

That's nothing.

That's not a flex at all.

So,

so

right now, you have to have a micro and a macro.

So, what is your macro idea?

What's the idea that's going to get like Dr.

Dre,

this guy, and I'm talking about people who come from modest beginnings.

That's why I'm naming it.

This guy sold earphones for a billion dollars.

A billion dollars.

You know, you got people coming on your show with the billionaires.

Yeah.

Right.

So that million dollars is played out.

So why do you think, why would anybody think they can't be a billionaire?

Because they don't have the knowledge.

So what they do is look at the other people and applaud them or they get jealous.

Right.

Well, don't hate the game.

Don't hate the player.

Learn the game and be a player.

I love it.

You know what I'm saying?

Yeah.

So

what we need to know is, is after somebody comes for that big money, I'm talking those guys hopping to the Range Rovers, hopping out, those black suits and black 4-5 lawyers coming for your money.

Now you take the C Corp,

write a letter, notarize it to the holding corp.

You know, if you have a Bank of America holdings, you have everybody's got a holding corp that knows any better.

Now you write from the holding corp to the

to the trust, which is inside or outside the jurisdiction of the United States, and that's going to be your super veil.

And all the shareholders

in the holding corp

goes into the trust.

They go into the trust.

That's a super veil.

That's what I teach like

basketball players and football players.

You know, people a lot of money, right?

And so that's what you call your seven structure.

So your seven structure should be, there's many structures, but that should be your basic structure.

Now your C Corp with no specific name.

Now you take your LLC and you put that underneath your C Corp as doing business as

DBA.

Now you can name that anything you want.

And you can have as many of those as you want.

Wow.

So that's basic seven structure.

But

people don't understand the difference between the companies.

So the LLC is limited liability.

Who's going to give you some money and you talk about you limited?

So,

that goes underneath the C Corp.

And you notice I'm saying C Corp because that's the mama of corps.

Next, people will go in and say, I have an S corporation.

Hey,

I hit the lottery.

I love your business.

I want to invest, you know.

Well, you make money, I make money.

Let's go.

If I lose money, you lose money.

Let's go.

Well, hold on.

I don't want to be a part of the company.

I just want to invest.

Well, I got the perfect thing for you.

I have an S corporation.

So people get S corporations.

They don't know what it's for, but that's what it's for.

If you don't have investors, why do you have an S Corp?

Right.

And that's not specifically for getting money either.

It's investors.

Right.

So people do the S Corp.

They do the LLC as a pass-through.

Maybe they want to help out in taxes because you pay one tax bill instead of, you know, tax on the corp because it's a person

and tax on, or tax on the LLC and tax on yourself.

So that's a pass-through.

Right.

But

pay your damn taxes.

Stop running from taxes because the tax guy or woman and the bank, they're cousins.

So when you go in and pay your tax, they say, okay, been a good guy.

Now take this over to my cousin and let's see if he can give you more money.

Because

they believe me when I tell them you paid and you made this money.

You can have financials.

You can have whatever you want.

Okay.

But if you have taxes, they believe them.

Wow, I didn't know the IRS was working with banks like that.

They're cousins.

I mean, if you go and file your taxes 45 or 6 T's, that's what the bank wants.

You can get those credit cards, you know, with no dock, stated income.

Wow.

That's one to $500,000.

Damn.

But after you do the credit cards, you got to file your taxes, two years of taxes, so you can go full dock.

Full dock gets you that $500 million, two, three, $5 million.

Yeah, I'm going to talk to you after this.

I just filed my second year returns.

Man, you ready to go.

Yeah.

You know, so what they do is they file.

They don't, they say, I'm hiding my tax money.

I'm not paying this.

If you pay me in cash, you know, then I can give you a break on this.

And you better pay the taxes because the bank's going to say, how much money are you making?

If you're making $10 last year and you made $20 this year, that's great.

Then we see you're making money.

We see you're making money.

And so there's a lot more to it.

But

they had a guy named Donald Trump.

Zero dollars.

Now, I'm not pushing Trump.

I ain't pushing.

I stay out of their politics.

Smart.

You know what I'm saying?

I ain't got nothing to do with it.

For what you do, smart.

I ain't got nothing to do with their politics.

You know what I'm saying?

I'm about money.

Yeah.

Right.

So, but I'm just mentioning him because

they asked him for his taxes last term.

He said, he said, nope.

He said, give him up.

He said, nope.

And so finally, they got it out of him.

And they found out I think he made like 20 billion just in the U.S.

And they said, I think they said he paid tax on like, he paid 75,000 on 20 billion.

Everybody got pissed.

They said, I can't believe it.

You know, this guy's paid.

Look at those rich people.

He said,

don't blame me because I go by the law.

I know the law.

So I found that to be quite unusual.

Like, really?

So, so the thing is, if you understand the rules, you don't have to cheat the IRS.

You get yourself a CPA and you stay in your lane.

Pay your taxes.

He's responsible for your taxes.

You're responsible as an officer of the corporation to take your company to higher levels.

Stay in your lane,

right?

So,

the point I'm getting to is

that we need to have not not an S-Corp, not a LLC,

but we need to have the special purpose entity.

Corporation is a person.

I'm a person, you're a person.

They made a piece of paper a person,

right?

And they said, you know what?

We're going to make everybody else think they have to work for the money.

But we're going to go in.

Everybody walks in on Friday.

Now tell me if I'm lying.

Tell me if I'm fucking lying.

Party, maybe children,

but tell me if I'm lying.

People walk in on Friday.

They put all their money in on Friday.

Yeah.

All of them are in there and they say, thank God it's Friday.

Thank God.

And they brag about it.

They say, I'm going to eat at Fridays.

Right now, thank God.

And some of them say on Wednesday, oh, man, it's hump day.

Yeah.

Hump day, that means you got two more days.

You dread that that going to work.

Friday, they come in, they're tired, they're in the line, in the corp in the bank, taking their companies to the bank, their money to the bank, give it all to the bank.

The bank gives them a debit card.

People like me

and other folks,

money who have money,

they know the bank is a lending institution, not a hold your money institution.

So they think the bank is a hold your your money institution, but call the bank and say, bank, Mr.

Bank or Mrs.

Bank, I want to ask you a question.

They say, yes.

Are you a hold your money institution or a lending?

They may hang up on you.

Yeah, they're lending that money out.

So 10 to one, right?

Oh,

if I was getting to that.

I was getting to that.

So watch this.

I walk in on Wednesday, 10 o'clock while everybody's working and all the rich rich folks.

In fact, most of them have the bank come to them.

Yeah.

Right.

So, um, so Chase, that like Chase and what other banks, they have like at 150,000, you become a special banker, right?

So

you walk in the bank, and everybody's working.

And I say, and every time I walk in there,

they say they know exactly what I'm going to say.

I say, excuse me, excuse me.

They say, yes, Mr.

Whitehead.

I says, I want to ask you a question.

Come here for a second.

Yes, Mr.

Whitehead.

I said,

I want to know

all those people that put the money in on Friday, put all that money in.

Yes, Mr.

Whitehead.

I says, can

I and Willie Corporation get some of their money out

so I can build a big business and hire them and pay them with their own money?

Can I do that?

And they say, Yes, you can, Mr.

Whitehead.

I say, Well, me and Willie will be right over here.

Because the bank is a lending institution.

Why would the bank give you this money?

Just like you said, do you know if you put $1,000 in the bank and sign, or if you sign for a loan, $1,000,

they have nine times that amount of money as soon as you sign for it.

Wow.

Imagine,

imagine, imagine

if you gave me a dollar and I turned around and you

signed something, and now you just had nine times that amount of money.

I'd be looking for people around the world to give a dollar to.

That's the bank.

So why are we running around here talking about, oh, ooh, ooh, look, Ferrari, ooh, ooh,

go to the bank.

Ooh, ooh, he got a mansion.

Ooh, ooh, ooh, he got a $400,000 watch.

Ooh, ooh.

Go to the bank.

This ain't my watch.

It's not even my jacket.

It's Willie's jacket

because Willie owns it all.

Wow.

I just control everything and I own nothing.

So

it's not about how much money you have because the bank doesn't care how much money you have.

People bragging, I got $50 million.

I say so.

As a banker,

so.

What I want to know is, is what's your company worth?

It's not what you have, it's what you're worth.

And why should you own all, you know, the capital gains you'll pay on all this money you're supposed to have?

If you're in Cali.

Anywhere.

You got to pay federal taxes, right?

On these gains, capital gains.

So

Willie Corporation owns everything.

I don't own anything.

Bezos doesn't have

$150 billion.

He don't have that in the bank under his mattress.

It won't fit.

That's what he has.

His company is worth.

Amazon.

Oprah doesn't have $6 billion, $7 billion underneath her bed.

It won't fit.

That's what the company is.

I think she has own and Harpo.

That's what her company is worth.

It's worth.

Yeah, you don't want money in your personal name, right?

Why?

Maybe a little bit.

So, you know, you go out and go buy some hot dogs,

you know, and you want to go buy a chain or

something for your girl or something, you know.

But

no, you control everything and own nothing.

So

the C Corporation,

they made everybody think they had to work for this money when all they had to do, like John Noble told me, is go to the bank and get some money.

The business is just an excuse to get the money.

They need an excuse

because

people are under moral law.

Thou shalt not kill, thou shalt not do this.

You know, put your hand on the Bible and thou should not do this.

And when the, and all money is in Latin, right?

E ploribus unum is on the dollar bill.

Out of one comes many.

So don't you want one out of many?

Well, that's on the dollar bill.

So it's in all in Latin, and it's under water law, not moral law.

That's why you have currency and liquidity.

You put your money in a bank.

That's where the land

and the water meets, a bank.

So it's under water law.

So they have, you can go out,

take everything off somebody's ship in the ocean.

Neutral waters.

You can take the bounty, the booty, the gold, everything, right?

And you go back and say, yo, ho, ho, on a bottle of rum, having a drink.

And you walk in the bar and say,

arrest that guy.

You know, he stole everything off my ship.

He's going to say, you can't do anything to me.

I did that in the water.

No laws in the water.

Wow.

That's why they put this thing, made it a person,

no liability, and it's under water law.

See?

So when we go in, we go in, we get the corporation, we say, this is how we're going to get the money.

We're going to get a C corporation.

That's for getting money.

Nobody, they don't tell you this.

Nobody tells you this, but bankers know.

They walk in.

Everything you have, it has.

This is the good standing letter.

If the police run your ID, law enforcement, they say you're not in trouble.

This is that good standing letter that says I'm not in trouble.

You have a birth certificate.

These are articles of incorporation.

It says, it says, this is who I am, where I was born, and I'm going to abide by all rules applicable to me.

Articles, that's his birth certificate.

Then after that, you go and apply for an EIN number.

That's for taxes.

That's his just like you.

You have a social security number.

That's what that is.

So it's a person.

Now, after you get those three things,

now you go and walk in the bank with your ID and your social, and you open a bank account.

When you open the bank account, maybe you want to borrow from them.

You put a little bit of money in the bank so you can have a relationship with them.

If you want to walk up to me and say, hey, man, I'd like to borrow some money.

Like, I don't even know you.

Who are you?

Yeah.

Right?

Well, I have money in your bank.

That's who I am.

Oh, that's right.

I remember you.

Come on in here.

You speak Latin.

If you notice, the judges speak Latin.

I'm an expert witness in court.

So the guy says, real story.

He says, Yohana, the judge says, who's representing you?

He says, I'm representing myself.

And I'm sitting in the back, just waiting for him to call me.

So I said, yeah,

I specialize in this.

I specialize in this he's paying me so he's right

right so the guy says

judge the judge says

who's representing you he says i'm representing myself he says hold on hold on son he says you know what

i think you need to go get and a representation so i'm gonna prolong this So you go get representation.

He says, why?

He says, because you don't speak Latin.

Wow.

He says, what you mean?

He says, he says, how do you know?

That's what he said.

True story.

How do you know what I speak?

He says, because you said, I am here representing myself.

In Latin, it would have been, I am here pro per.

Whoa.

So you are not going to do well here.

So I think that you should get somebody to represent you, like an attorney who went to school to learn Latin.

And so an old guy taught me again, again, a little guy taught me, you know, and he said,

he said, money is in Latin.

I was like, and water law.

And so that's how I figured out, I said, is that right?

So when I heard this judge say that,

he said,

we go to school to speak Latin.

And the same guy taught me, he says, When the judge gets, comes, walks in, he says, all rise.

Here come the judge.

And he says, Everybody can sit down.

Everybody sits down.

The judge sits on the bench,

right?

The bench.

Do you know that bench in Latin means bank?

Banca.

Bench.

So it's all Latin.

So they used to speak Latin back in the day, the rich folks.

And then they spoke Aramaic,

the poor people spoke Aramaic and the people spoke hebrew

well today the same thing speak hebrew and yiddish and the poor people they speak english which is a poor language right a romantic part of latin poor language right and then latin is still on your money it's a high language so what i'm teaching you right now is latin

love it So when you walk in the bank, they know whether you speak Latin or not right away.

And they can can tell if your company is built right, and that's going to bring you down in money.

So, as a person,

you can go in and they'll give you maybe about 100 points approximately before they say declination.

That means no,

no.

As a corporation, it doesn't have to eat, it doesn't have to sleep, doesn't have to do any of that, and it can have millions of people working for it.

So, they'll give you about approximately 50 points to go down because they know you can wiggle out of that situation

see

so if you go in and some people say how you wiggle out that situations mr whitehead everybody wants to know that right yeah so i'll save that for a minute i love it

so they go in they say

uh we got 50 points so what i try to teach is data points That's banking.

So you listen to a lot of people on the internet.

You know, they

teach you about, you know, this and that, and they're like internet gurus.

They went to the seminars

and they went to all the webinars and they're gurus.

But they teach a little of this, a little of that, you know.

But I happen to know banking.

So that's who you want to impress the underwriter.

So what they want to see are data points.

So what I'm talking about right now are data points.

So the more data points you have, the higher you up there.

So if you walk in there, for instance, a data point,

they may say, okay, what's your credit like?

They're not looking for a credit score.

That's personal.

They'll deal with the credit score, you know, and a few other things.

They're looking for a FICO.

So a FICO is going to be comprised of many things, not just a score.

a FICO, so you can be a good PG, get the money, then get out of the situation.

Say, for instance, if you go in,

you have your driver's license.

Look at your driver's license.

If you have John Harris on your driver's license, it should be the same thing on all three other bureaus.

It should not be John J.

Harris.

It shouldn't be Harris J.

Those are considered aliases.

Wow.

So you should only have one name on your report.

Because when you walk in the bank, they say 50 points you're trying to fund Willie.

Okay.

Ring it up to 50 points.

Let's see.

Oh,

aliases.

Then they say, How many addresses do you have?

If you don't have, you have whatever's on your ID, is what should be on your

three credit reports, right?

Three credit bureaus.

Those are, by the way, not bureaus.

Those are data furnishers.

A lot of people call them bureaus.

The real only bureau is

CFPB.

So if you want to go in and get your credit together,

you go in and first,

you know, go in and say this is inaccurate

with a FTC affidavit.

This is not like a game.

This is what the government put out there for you.

So if you feel as though it's inaccurate, you go in and file an FTC affidavit, fill everything out,

and then you send it in with a copy of your ID, copy your social, social, and

watch it come off.

Watch the stuff come off.

But if it doesn't all come off,

then you go in to the enforcer.

See, those are not bureaus.

The bureau, those are data furnishers.

The bureau is what they call CFPB.

That is an enforcer.

Enforcer.

So then you write a letter to them and say, these data furnishers are jerking my ass around.

And then they will straighten it out.

They say, hey, Ali, I'll straighten it all out.

Right.

So

that's just a side note.

But let's go in and talk about how they get the money and get out of it.

Yeah.

So you walk in and you say, okay,

what is your FICO?

The FICO is going to be, like I said, one name, one address, and stop putting your, stop.

Stop putting your address, I mean,

where you work on your credit report.

That's ridiculous because let's say you say,

I work at Walmart.

All the bank knows is Walmart.

They don't know you're like the district manager of Walmart.

So they're going to lock you.

They may lock you into

an area and say, you got $15 million, $15 an hour, right?

We're not going to lend you $100,000, million dollars.

So

stop putting that on your credit report.

Stop giving up the information.

The next thing is, is maybe you have,

you know, like late.

You can't have lates.

You can't have any of that if you're funding Willie, because they know you can wiggle out of that situation.

So if you go in and you get your credit together and you have those, you should have five to eight trade lines,

no less than five trade lines on your corporate, on your personal credit.

before you talk about getting some real money.

Five,

at least five trade lines, and no, and no more

than

three inquiries.

Wow.

You should never have more than three inquiries.

If you have more than three inquiries, you can forget it.

Damn.

You're not getting that money, right?

So these are data points.

So what we have to do is we have to learn data points.

Next thing is, a corporation is a person.

So

if you're going to use your personal address, you may can get credit cards with those things, but I don't even like to say that.

I like people to start out doing it the right way.

So get an address and not a UPS box, not a,

you know, a

mailbox, et cetera.

You know, because the bank is going to look down and see on Google Maps and say, it's a damn mailbox, et cetera.

Right?

Yeah.

No.

Boom, boom, boom, boom.

Data points down.

And so you don't want to have that.

You don't want to be using your phone because that's your poor cousin, the corporation, asking to use your phone.

It needs its own phone number and not voice over IP.

A lot of people make that mistake.

So you should have an address that is in the best.

Now, this is important.

You should have an address that's in the highest zip code that you can find.

Wow.

That's smart.

Because remember, money is under water law.

This is the wild, wild west.

This is gunslingers.

I ain't got to abide by, I don't have to do that.

You know, people are under

moral law, you know,

a lot of regulation.

Corporations are not under a lot of regulation.

So they don't lend money to the hood.

Makes sense.

I'm just saying.

Imagine this.

You ever notice that in the hood, they don't have have like a lot of dental offices and

unless it's like some city stuff, you know, they don't have that.

Why?

Because they call that a high-risk area.

They don't lend the high-risk areas.

That's why on your credit report, Experian or Nav

or

Dun and Brad, which I like, go in Experian, I think it should be better.

I don't know about better, but more efficient.

Yeah.

So you go in, you get yourself,

you get yourself an experienced report.

What are you going to see?

You're going to see two circles

and over here, a pay deck score.

Over here is going to be your rating.

So that should be one to two.

It has like a circle, like one all the way around, like 10 or something.

It should be one to two.

Your rating or your, right?

The next is going to be your risk factor.

That's the next bubble.

And it's going to be one to two.

And then over here is going to say your pay deck score.

And you should have no less than an 80 paydex score.

Now, 80 paydeck score is kind of like a

It's kind of like a 800 credit score, right?

So if you have that, your corp looks good.

But now you personally, or a person that's trying to borrow, should have

no derogatories,

no less than five trade lines, no more than three inquiries.

And a lot of people say, well, I got four trade lines.

Well, then go into Navy Federal or go someplace and do a pledge loan.

Say, hey,

I want to borrow against my own money.

Yeah.

So what they'll do is they'll go in, you put $500, $5,000, whatever, a million dollars, if you can, whatever you can afford.

And you say, I'd like to borrow against my own money.

So after about three weeks, you take the money and pay it back, pay it off.

You got an excellent trade line.

Right.

So that's just one way of going in.

and getting yourself another trade line because they only have four.

Well, now you can go in, now you have five, right?

So there's lots lots of things like that to do that are legal.

Legal.

Absolutely.

So the next thing is

you take this corporation and you say, I want to come in and borrow money.

They say you, no, not me, Willie.

And the game is

it's not me, but you do everything you can do to pay that money back.

So how are we going to do that?

We first want to get ourselves out of that situation of being a PG, because if you don't get out of that situation, you will be asked to PG everything from on.

I know.

Teach some of these people, right?

So they'll say,

okay,

here's 100 grand because your FICO looks good.

And you don't have any derogatories.

And the corporation looks good.

It has all these good

data points, right?

And so you put those two together and you say, I'm going to get credit cards first.

I'm going to get one, two, three, four, five hundred thousand dollars in credit cards.

But you see online, they're talking about credit card stacking.

Yeah.

They're not bankers.

So you go in and they go in and say, get all these credit cards so that you can go in and get your business.

Get the money you need for your business.

First of all, what are you going to do with two, three hundred thousand dollars?

Nothing.

That's not even a watch.

Okay, so you go in and leverage your money before you even start talking about doing business.

Okay.

It's called leveraging.

Make your money bigger than what it really is.

And that's going to be done through a bond

that you mature, mature the bond, put that on the money.

and then put insurance on the bond in case something happens.

So now you're covered.

You have to make your money bigger.

And then you can do things like, you know,

letters of intent.

You can get a letter of intent from another business that says, we intend to do business with you, $500,000 deal.

Sign it from a legitimate business that's hooked up with Dunn and Brad, right?

Or Bundle Bureaus.

You take that

to the bank.

The bank says, oh, you only got $200,000, but you're expecting $500,000.

Your money's bigger.

what about a proof of funds what about a bond that's how they pay play that that's how they pay basketball players and and actors and football players they say jordan i'm going to give you 100 million dollars in 10 years

do you think the owner gives jordan most of the time a hundred million dollars no

he takes ten million dollars he gives it to a a bond insurance company three-star insurance company has to be three star legitimate fidelity of somebody yeah so uh

give that money to them they're going to take it and invest it and make 10 times that a month

so they don't mind giving you for letting you use you for you using their uh they're letting you using

you're letting them use your money they don't mind giving you a 10 million every year yeah So the bond matures and you're done after 10 years.

That makes sense.

So

they say,

and you just pay a little bit on on the bond every month after it matures.

So you think the bank is not going to say, so you mean to tell me you got a million-dollar bond that's going to mature in five years?

Yes.

Boom.

It looks more.

It looks a lot better.

So you go in, you don't just go to get two, $3,000, $100,000 and think you've hit the lottery.

You leverage the money first, make it bigger,

move it around to different banks.

Why do you got to have one bank account when you're going to have five?

see it's about borrowing making your business have value i love that derek where can people learn from you how to how to do all this well they can learn that from uh economicmasonry.com we have a free class every tuesday and thursday for free because i think people should learn this i used to be on there until like one two three o'clock in the morning damn like damn just teaching i mean i learned a lot today i think thank you for coming on oh you were i can't wait to do some more stuff with you we'll film another one too because it sounds like you got a lot more to say.

Oh man, I thought this was six minutes.

Yeah, dude, thanks a lot.

Check him out, guys.

If you're interested in funding, shoot him a message.

Check out the site.

I'll see you next time.