The Chavis Chronicles

>> I'm Dr.

Benjamin F. Chavis, Jr., and this is "The Chavis Chronicles".

>> In order to prepare for the storm, you have to change the way of your outlook.

Instead of saying, "Oh, the sky is falling," we need to say, "Okay, if the sky falls, what do I need to have in position?

>> Major funding for "The Chavis Chronicles" is provided by the following.

At Wells Fargo, we continue to look for ways to empower our customers.

We seek broad impact in our communities, and we're proud of the role we play for our customers and the U.S.

economy.

As a company, we are focused on supporting our customers and communities through housing access, small business growth, financial health, and other community needs.

Together, we want to make a tangible difference in people's lives.

Wells Fargo, the bank of doing.

American Petroleum Institute.

Our members are committed to accelerating safety, environmental, and sustainability progress throughout the natural gas and oil industry.

Learn more, api.org/apienergyexcellence.

Reynolds American, dedicated to building a better tomorrow for our employees and communities.

Reynolds stands against discrimination in all forms and is committed to building a more diverse and inclusive workplace.

>> We welcome to "The Chavis Chronicles" one of our nation's leading financial strategists, Will Roundtree.

>> Yes, sir.

>> Thank you.

>> Pleasure's all mine, doc.

>> So how did you first get involved in, um, financial literacy, uh, coaching?

Uh, something about your own career that led to this decision for the pathway?

>> Yeah.

So I started out as a need.

You know, growing up in Milwaukee, Wisconsin, I was told, go to school, get good grades, get a good job.

Found out that that path didn't work for me.

And so after I graduated high school, I got into the workforce, worked for a company.

I was there for about 8 years.

I thought I was going to retire.

I was literally marking the years off on a calendar.

And then one day, August 13th, went in, found out that a hedge fund company had bought the company.

August 14th, there were chains on the door, so didn't know what I was going to do with my life, but I got -- >> None of that was expected?

>> None of it.

Look, I was planning for retirement 20 years prior.

And so, um, but fortunately, I was introduced to network marketing, which is like direct sales, like Avon, Mary Kay, something of that nature.

And so got involved and really just immersed myself into that space.

Didn't make a ton of money, doc.

But the thing that it taught me was personal development.

Taught me how to change my level of thinking, taught me how to set goals, taught me how to view the world differently.

And so from there, I started to learn about business, about entrepreneurship.

And then I had a mentor at the time who was building a team in an organization in Las Vegas, Nevada, asked me, would I be open to moving?

I said, "Absolutely," but I didn't have any money.

So he actually gave me 500 bucks, 'cause he said I didn't have to pay him back.

And so took that 500 bucks, moved to Las Vegas.

Literally all I had was a garbage bag full of clothes and a box of books.

So I got to Las Vegas, clearly found out 500 bucks doesn't last long.

So I'm homeless, sleeping in a car, couch surfing, taking showers at the local gyms.

But before I moved out to Vegas, I had a mentor who gave me a piece of information and said, eventually, credit will become the new dollar.

Didn't know what he meant by that at the time, but moved to Vegas, I quickly found out.

I couldn't buy a car without a down payment, couldn't rent an apartment without three times the deposit, and learned that having bad credit is very expensive.

So I took it upon myself to learn as much as I could about credit -- going to the libraries, the internet cafes.

And this was around the time when Google and YouTube wasn't as big, in '05.

So once I started to learn about the power of credit and not just credit from a consumer standpoint, completely changed my life.

And so took two years for me to rebuild my credit 'cause I had repos, owed every credit card company.

I mean, it was bad.

I think I had, like, a 410 credit score.

So after that time period, was able to buy a car with no money down, blew me away, was able to purchase a home in 2013.

And growing up in Milwaukee from the inner city, I never even thought it was possible for me.

So once I saw what it was able to do for me, I wanted to just tell other people.

And so it just kind of morphed from me just sharing advice to it developing into a business.

>> So you've written a very successful how-to book, "Credit is King".

>> Absolutely.

>> Tell us about this book.

>> Yeah.

So I always say it's more of a manual.

It's a book that teaches people how to understand what credit is, what the pitfalls of it are, and it gives them kind of like a blueprint to where if they wanted to rebuild their credit, there are steps in there that they can utilize that can literally help them improve their credit score.

It has a glossary at the back of the book.

I even wrote the book from an eighth grade level, because I understand that in the finance industry or the world of finance, it can be pretty intimidating because nobody ever taught us about it.

And so it has a, you know, how to improve your kids' credit, understanding the difference between a FICO score and a FAKO score, where you can pull your credit report from, and how to actually dispute items off your report because there's actually, uh, laws put in place, per the Fair Credit Reporting Act, that gives us the ability to dispute anything that's reporting inaccurate, incomplete, or unverifiable on a credit report.

So it's not that you didn't miss a payment or you didn't pay.

If that information isn't being reported accurately, even down to the date of the last time you made a payment to them and they can't prove that, if you send the right letter in, they have to completely remove it from your credit report.

And I have all of that information, even sample letters that people can utilize, copy and paste templates sent to the credit bureaus to challenge those items.

>> So it's always good to know the rules and regulations.

>> Absolutely.

You have to know how to play the game.

If not, you'll always be a spectator or wondering how do I even get in the game?

>> If I understand what you do now in terms of coaching, you're helping people start where they are, but give them a vision of where they can go.

>> Definitely.

>> Is that right?

>> Absolutely.

And I think it's hard for people to see it because they don't know what's possible.

You know, and I often tell people one of the greatest things that happened to me is losing it all and being homeless, because I knew that I couldn't go any further down or below.

And so I just needed a plan.

I just needed to know what was possible.

I just needed the right strategies.

And so no disrespect to even like what's going on economically, but I think that sometimes we just lack more strategy than anything.

We may have to go back to understanding group economics.

You know, we may have to go back to, you know, ten of us living in a house until we can all get our finances together.

We may have to go back to carpooling.

We may have to stop, you know, eating out as much and actually start making dinner or eating as a family.

And so I think that once we have an actual real strategic plan and understand the power of group economics, you know, not saying things won't get difficult and that there won't be any friction, but it can definitely help to kind of, you know, ease the tension a little bit more, especially if you're trying to go through this -- go through this economic downturn by yourself.

>> Do you see more opportunity today or less opportunity?

>> You know, that can definitely be a trick question only because there is so much uncertainty going on in our country.

But if you were to ask the investor side of Will Roundtree, I'm going to say that there's always opportunity in downturns because things get cheaper.

And I think that's one of the things we haven't been privy to understanding that the goal, you know, when you look at the game of life, especially from a financial standpoint, one of our disadvantages is, is that we get to opportunities at the peak or at the apex of when it's the most expensive.

And so looking at, you know, what's going on right now, when things get cheaper, that's when we should be loading up.

But again, from an -- from a group -- from a group standpoint.

So if five of us has to go in and start investing in real estate, or five of us go in and invest in stocks, or five of us or ten of us go in and start investing in gold and silver, it's not necessarily going to give an immediate dividend today because we still have to look for the future.

We still have to look at 2036, 2046, setting our children up and etc.

So I think that it can definitely still be an ample amount of opportunity coming up.

>> So there's an opportunity as an individual entrepreneur, but there's also an opportunity in terms of what you say is group economics.

>> Absolutely.

>> Can you cite just three things people must have in order toward wealth building?

>> Yes.

So the first thing is we have to change our mindset.

You know, I often tell people that one of the reasons I think people are having trouble, and this is not even just what's going on today, I think just in life, period, is we're too focused on the storm as opposed to preparing for the storm.

And so in order to prepare for the storm, you have to change the way of your outlook.

Instead of saying, "Oh, the sky is falling," we need to say, "Okay, if the sky falls, what do I need to have in position?"

So we have to change our mindset.

Number two, we have to have a plan.

You know, all too often, you know, we just wake -- And I'm speaking from past experience.

I used to just wake up and go to work, get my paycheck, and then spend my money, as opposed to saying, "Okay, I wake up, go to work, I get my paycheck.

Now, how do I want to deploy that?"

You know, am I focused on savings?

Am I putting it in things that's going to give me a return?

How do I make my money grow?

Because I have to make this money last for the next generation or the next several generations or so that my son can have an advantage in life.

And then thirdly, we have to understand the cost of money.

I think that one of the biggest, uh, disruptors in the black community financially is we borrow money that's too expensive.

You know, when you have bad credit, your auto loan is 25% interest.

You know, when you have bad credit, you have to go get a payday loan at 79 to 140% interest versus being able to borrow it on a credit card, sometime at 0%.

So we have to understand the cost of money and understand that when you have bad credit, life is brutally expensive.

of your auto rates are expensive, trying to purchase a vehicle, rent a home, your interest rates if you buy a home.

So, um, so yeah.

So I would say mindset, having a plan, and understanding the cost of money.

>> You don't have to be, uh, consigned to one level.

You can actually move up.

>> Oh, no, I agree.

And so one of the things I always tell a lot of my affluent, uh, clients is that you want to be able to maximize your -- your money making years 'cause also often, and I'm sure you've seen this working, you know, closely in the culture is that they want to work and try to change their life after the money is run out.

And now they're operating out of desperation, trying to find something that's going to put them back on a level that they were on.

And so I say, okay, when you do get that million-dollar contract, or you do get that 20 million or $100 million contract, let's now put your money to work for you.

Let's go and invest in assets.

You know, when I have an athlete and I'm saying, "Look, instead of giving your friends, family, and relatives money or bailing them out, let's create an opportunity.

Let's create a business that you make them run and now you make them earn the money.

But then not only that, that's a tax write off for you now, as opposed to just giving them money."

And so I just try to show them strategic opportunities to set themselves up, show them strategic ways to protect their money, show them strategic ways on how to help their community without it feeling like they're being extorted, 'cause that usually is the term I hear often by the time they're at the end of their career, when nobody is there to save them or help them out.

And so whether you're an affluent individual or someone who is just entering the workforce, we just have to put the right plan and strategy in place.

>> And your strategy is to acquire real estate assets.

>> Yes.

>> Is it both residential and commercial?

>> Absolutely.

Anything that's going to appreciate.

So, um, because -- >> Once you acquire the commercial, you sell it, you renovate it, or you hold on to it?

>> I hold all my real estate.

I don't sell anything because -- >> Is that right?

>> Absolutely.

>> Explain that, because I know a lot of people say, "Man, I'm going to flip this, flip this, flip that."

What is your strategy in terms of real estate?

>> So I buy and hold because when you look at flipping, if the goal is to build wealth and the property is the wealth asset, if you sell it, you no longer have wealth.

And on top of that, you're going to pay taxes.

The whole game of life to be able to keep your wealth is you have to also mitigate your tax liability.

But when I buy the property, I fix it up, I rent it out.

Something that's going to pay me forever.

Now I have an asset that is going to pay me forever.

On top of that, I can leverage that to mitigate my tax liability.

And so when you look at the way the wealthy play this game is, because they hold a bunch of assets that appreciate, they can depreciate the value against their taxes, but then it pays them forever.

And then if I ever do need to get liquid, I can borrow against that property or the asset completely tax free.

And when I started to learn those strategies, it was a game changer.

So much so that about a month ago I bought a four-unit property in Milwaukee, Wisconsin, and my 15-year-old son is the co-owner with me.

So he now has his first piece of property that he will own.

>> Your 15-year-old son owns property?

>> Yes.

>> In Milwaukee, Wisconsin?

>> Yes.

>> But he lives in Las Vegas.

>> He lives in Vegas with me, Yes.

>> So you're training your son early on?

>> We have to.

We have to.

Because in other communities, they're training their kids like it's financial war.

So I instill this into my son like financial war.

He has to be prepared when he gets out into the real world, because by the time he goes to college, if that's the path he chooses, they're already going to start exploiting him with credit card offers that he may not know anything about.

And when I'm working with so many people, that's typically where they ruin their credit at.

And so now, by the time my son is 18, he has three paths that's going to give him an advantage in life.

One, that property is going to appreciate over the next three years.

So let's say he decides to go to college, doc, he can borrow against that asset completely tax free, and whatever the amount he borrows, the asset will cover the cost of that debt.

So now he can go to school debt free because the asset will cover the cost of it.

Or option two, let's say he wants to follow in his dad's footsteps and become an entrepreneur.

He can borrow against that property completely tax free and go and now start a business and deploy that capital in the right places and not be focused or operating out of a lack of integrity, trying to figure out how he's going to pay that debt back.

>> So, well, you said twice, "borrowing tax free."

>> Absolutely.

>> Most people don't know that you can borrow money without paying taxes.

>> Yeah, so one of the strategies that the wealthy have learned is that, I know this word is going to scare some of you -- debt.

Debt is tax free.

And that's why so many wealthy people leverage debt.

You know, when they build a hospital or a casino or, you know, a hotel, they don't use their own money.

They borrow debt.

But the reason I think so many people are scared of debt is because we don't understand that there's three different debt structures.

You have what's called unstructured debt.

That's the debt people primarily get into, which is debt that doesn't make them money.

A house that they may buy, a vehicle, or a credit card, or consumer debt.

Then you have what's called restructured debt.

That's bankruptcy.

Unfortunately, our community has looked at bankruptcy negatively, but it's really a strategy no different than what Spirit Airlines is doing.

They're just restructuring their debt and they can still make money through that restructuring.

And then you have the strategy of debt that most investors and high level and affluent entrepreneurs use is called structured debt, where I can go out there and borrow X amount of dollars from the bank, deploy it into buying assets that will not only pay me a percentage of a return, but then also service the debt, or how much it cost me to actually borrow the money.

And so when you start to learn these strategies, you can play it at a completely different level.

>> In your strategy to acquire appreciating assets?

>> Absolutely.

>> Um, is it all domestic or is it also international?

>> Oh, it can be both 'cause the strategy is the same.

And so -- And no different than if you're buying here in the States.

I mean, I have clients where they're buying land in Africa, they're buying property and, you know, internationally in Dubai or whatever the case may be, because the strategy is the same.

Now, that may not be your first investment because sometimes they don't have, you know, banking structures that are similar or comparable to the U.S.

But our dollar does stretch further out there.

So I tell people, let's play the game of monopoly.

The object in the game of monopoly, the board game, is you get three green houses and turn it into a red hotel.

And so what we do is, is you stack your -- your assets here and then you go to Dubai and purchase that condo.

Then you can go to, you know, Ghana.

Then you can go to wherever it is you want to invest in, but you're utilizing the assets that you have already, you know, made money off of here.

So I tell people, start small.

You don't have to go get the 100-unit building.

Let's just go to the Midwest, where you can get a two family home for a sub $150,000 that will appreciate over time, it'll pay you forever, and eventually you can borrow against it tax free, and it helps to mitigate your tax liability because you have an income-producing asset.

>> So, Will, you have a remarkable journey.

>> Thank you.

>> From homeless to homeowner.

>> Yes.

>> To business owner to author.

Uh, how does the role of persistence and discipline play in your life?

>> When I tell people I failed more than I won, they look at me like I got three eyes.

And I tell people, the only difference between me and someone who is trying is that I was willing to fail fast.

And so I haven't won every opportunity.

I haven't hit it out the park every time.

But I just wasn't willing to give up.

I didn't lay down.

And I tell people, this is a 20-year journey.

You know, I definitely didn't start here.

But what I also tell them is that the failure was the best part, because it gave me the data of what not to do.

And that's the part that so many people are scared of.

And people often think that failure or -- failure is bad.

No, it's the information I needed.

And then when I ask them, what are you scared of?

They said, it's fear.

And I'm just like, fearful of what?

I said, fear can be used two different ways.

Just like fire can help you, fire can also take you out.

Instead of letting fear take you out, let the fear help you.

So now I'm fearful of going back to being homeless.

I'm fearful of, you know, eating Top Ramen and Captain Crunch for dinner, breakfast, and lunch.

I'm fearful of having to sleep in my car and hide my car from the repo man.

So instead, I use that as a catapult to say, you know what?

I'm willing to invest in myself.

I'm willing to bet on myself.

I'm willing to figure it out and get it from the mud, as they say.

So I don't let fear stop me.

>> What should one major in in college or concentrate in in school if they want to get a sort of a jump on entrepreneurship and wealth building?

>> So, you know, that can be a tricky question only because I think that life and experience is what guides you on the path of entrepreneurship.

I would say that if you are going to college, what I would recommend is finding an industry that is going to be beneficial to what it is you want to accomplish, or look at college like a business decision.

So when I'm sitting down with my clients, our main focus is, is for every dollar you invest into your life, into your business, what is the return on investment, or the ROI?

We have to look at college the exact same way.

So when I'm sitting down with parents who are getting ready to send their children to college, I'm saying, "Okay, if your child is getting ready to go to school for whatever the, you know, major is, what's the return on investment?

What's the entry-level salary?

Is there potential for growth in that industry?"

And so now also the second phase of that, can they take that information that they're going to gain from that, you know, degree and actually start their business?

So one is going to school for engineering.

Let's not just go to school to work for somebody else's firm.

Let's get the data.

Let's get the information.

And then let's figure out how to start your own engineering firm.

If you're going to school to be an attorney... You know, I work with a lot of people in professional industries or professional degrees.

I'm showing them, hey, let's start your own practice.

So I don't think it's necessarily a particular industry or degree they go to school for.

I think it's how they -- how they, you know, utilize the data that they're getting.

But then also looking at -- looking into a degree that's going to be beneficial for them from an ROI standpoint.

>> Return on investment.

>> Return on investment.

>> Financial literacy, how important is financial literacy?

>> It's as important as breathing right now, because if we look at the landscape of where we are -- >> Financial literacy is as important as breathing.

>> Absolutely.

'Cause when we look at where we are right now as a nation, especially in the communities, that's where most of people's woes, you know... They did a study that linked a high level of depression tied to a lack of finances.

And it's not that everybody is always at a lack.

You'd be surprised, doc, that how many people actually overspend.

And it's because we haven't been taught about the economics of money.

We've only been taught to go out and make money, try to build this lifestyle that, you know, we admire, whether it's from our favorite celebrity or on social media, or this fallacy of what success looks like.

But nobody taught us how money works.

Nobody taught us about economics.

And I often say that money is a language.

Finance is a language.

Economics is a language.

But unfortunately, we've only been taught the language of poverty.

So we have to change our dialect.

And financial literacy is extremely important.

>> Based on everything you've accomplished, which is a lot... >> Thank you.

>> ...how do you see the future?

What gives you your greatest hope today?

>> I would say one is my goal.

And my goal, doc, is a legacy.

You know, if I never made another dollar, I would be fine with that only because I've accomplished things that I was told that wasn't even possible.

Growing up in Milwaukee, I was told by the age of 21 I'd be dead or in jail.

And so I've beat the odds.

I've surpassed every statistic that can be named.

And so now my focus is legacy.

I got to start building for my son.

And so my -- my outlook on life is bright because I know that every time I go outside or every time I turn on the television or open up my social media app, I see that people still need this information.

'Cause there are times where I'm like, man, everybody is doing this.

It's saturated.

It's not, doc.

There's so much opportunity out here.

And if I can just help change one person's life and I know the multiplication effect of that, of how that can spread out into their communities, my job is done.

And so my focus is really just, you know, helping people, which is why I do so much of this on my own.

No corporate sponsors, no major, you know, backing.

And I financed my entire career and journey out of my own pocket.

So the future is definitely bright.

>> Will Roundtree.

>> Yes, sir.

>> Thank you for joining "The Chavis Chronicles".

>> Yes, sir.

>> For more information about "The Chavis Chronicles" and our guests, visit our website at TheChavisChronicles.com.

Also, follow us on Facebook, X, LinkedIn, YouTube, Instagram, and TikTok.

Major funding for "The Chavis Chronicles" is provided by the following.

At Wells Fargo, we continue to look for ways to empower our customers.

We seek broad impact in our communities, and we're proud of the role we play for our customers and the U.S.

economy.

As a company, we are focused on supporting our customers and communities through housing access, small business growth, financial health, and other community needs.

Together, we want to make a tangible difference in people's lives.

Wells Fargo, the bank of doing.

American Petroleum Institute.

Our members are committed to accelerating safety, environmental, and sustainability progress throughout the natural gas and oil industry.

Learn more, api.org/apienergyexcellence.

Reynolds American, dedicated to building a better tomorrow for our employees and communities.

Reynolds stands against discrimination in all forms and is committed to building a more diverse and inclusive workplace.