Decide Your Destiny
Decide Your Destiny
Bobby Castro - 9th Grade Dropout Creates A Billion Dollar Company
Episode Summary: In this episode of Decide Your Destiny, Bobby Castro shares his story of how he dropped out of high school in 9th grade and went on to create a company and exit at a billion-dollar valuation. Bobby Castro founded Bankers Healthcare Group and grew it to a billion-dollar valuation while also amassing a real estate portfolio worth 400 million dollars. In this episode, Bobby explains his childhood, his first entrepreneurial experience, the power of information, how to get unstuck, and much more.
Follow Bobby On Instagram: @officialbobbycastro
Follow Josh On Instagram: @mrjoshjacobs
Episode Topics:
1:27 = Bobby explains his childhood
5:48 = Bobby talks about the jobs he had growing up
8:04 = First Entrepreneurial Experience
10:52 = Being addicted to responding to classified ads
12:09 = Failing at a new business every week
13:04 = Bobby explains his turning point
15:33 = Bobby's Net worth, selling for $1 Billion, & $400 Million Real Estate portfolio
17:00 = The first investment into Bankers Healthcare Group
17:50 = The power of information
18:50 = Growing from $250M to $600M in 11 months
19:17 = What it felt like exiting for $1 Billion
20:52 = How to get unstuck and fight off self-doubt
22:28 = How to become a magnet for opportunities
24:44 = What to do if you don’t know what you want to do in life
Welcome to decide your destiny. Here's your host Josh Jacobs.
Josh Jacobs :Welcome to decide your destiny. I'm your host Josh Jacobs and I'm really excited for the show today we have a very special guest. From humble beginnings. He started his company with $25,000 and grew it to a billion dollar valuation. He's built a real estate portfolio worth $400 million. He received the Ernst and Young Entrepreneur of the Year award and has recently started blessing the social media world with his positive mental attitude. Please welcome Bobby Castro. Thank you so much for being here today. Bobby. I am so excited to have you man. Thank you.
Bobby Castro :Well, thank you man. Very, very nice to have you. I mean out of so far out of all the podcasts I've done I haven't heard that. The Ernst and Young that that in 2012, that that was a that was a true honor. And believe it or not, I had no idea Have of actually being so blessed to have that recognition. And a show shows you when you're so focused, and so passionate about your minutes. You feel like some may feel like you're missing out. But you're not just years later, you're you are life does reward you, man. So thanks for mentioning that.
Josh Jacobs :Absolutely, man. That's awesome. And we'll get into all that. But let's start from the beginning. I've been fortunate enough to hear your story and it's incredible. And I would love for the listeners to you know, understand that so maybe tell me a little bit about your childhood. Where did you grow up? You know what was lifelike?
Bobby Castro :Yeah, so I was born in New York in the Bronx. My dad had me when he was 50. My dad, he passed when he was 94 years old. He was Puerto Rican. He was a mailman in the Bronx. And he had he was 50. And my mother was 27. And my mother is Irish and Jewish. And so I come with that whole DNA um, a lot of called passion. So a lot of personalities in that mix. And we grew up struggling, there's no question about it. My dad was very, very passive, extremely kind, just a kind so I'm not too motivated to accomplish a lot. But he had his own magic, that's for sure. And my mom and she she was the pusher she was a shopper and she was the one who told me I can be or do whatever I choose to do. As long as I pay attention to value and I became so obsessed with values My Mother, she raised me while she was a waitress, and before Danny's there was a place called Sam Bose. That's what it used to be called. And she worked graveyard shift. This is when you and I would go out to a wedding or whatever and a bunch of us will be for the morning identities. A beautiful waitress that was my mom. And she walked home thereafter she didn't drive because there was no car. It was designed by you know Obviously the compensate the no car issue, went home for a few hours showered she lived on the couch in our townhouse in Hialeah in Miami. When we were I was born in the Bronx and then as a pea week we came to Miami, South Florida. And my dad left the post office it didn't work out. And she raised us man and you know I come from the hospitality life and I see my mom struggle and we grew up our rent a center and when rent a center still around this means when you don't have money or the credit to acquire furniture, you'll rent a night nightstand a couch or coffee table bed for your your three boys and pay every other week and when you don't pay they instantly pick that up. And I grew up seeing that pickup delivery pick up my mom bouncing checks, lights water out every other month. Amazing on how all
Josh Jacobs :this started from when you were very young.
Bobby Castro :Yeah, we were, you know, we grew up with section eight government assistance, food stamps were on and off of that program, helping my mom out my dad was there. But again, my dad took a little backseat on life wasn't as motivated was very, maybe not comfortable with the situation just maybe was used to that situation, but it bothered my mom. And it bothered me obviously. And I used to say to myself, I don't like this I end this with a PMA positive mental attitude came into play. And I left after the ninth grade school wasn't for me. I didn't speak until I was nearly seven years old. I was a real big introvert. Um, I can't shut up now the battery does not turn off for a number of years where you didn't speak till seven years old. Literally didn't speak very, very shy, very shy. I wouldn't look at people in the eye like I'm looking at you. I didn't have the confidence. And I don't know what that's all about. I don't get fixated on that a lot of people you know, dive deep in their life and want to I don't know, I just figure out what I'm good Add in focus at that. So I used to be a not a difficult trial. But I remember in elementary all the way to ninth grade, I used to have a lot of questions. I have a hard time even now comprehending things. So if you asked me something, I'll ask you maybe a few times to understand if I get it in different ways. And I so frustrated teachers, I think, and the teachers were frustrated me because eventually in the school system, the public school system, they were just babysitting us and they were just, that's it enough. Enough would be Castro and I would get turned off. So one day I told my mom and I say mom school is not for me. She obviously knew it. Zero pushback. And I just started in the hospitality world. Being a takeout order busboy or waiter in ninth grade. Yeah, I my first gig was at 14 years old even today. Josh, it's my wow moment. It was at a squaddies on 57th Avenue in Hialeah, right. Walk in there take me about 10 minutes to walk there. It was my first job at 14 years old back then. They were not allowed to hire you at 14 years old, the squalor who was the owner, the Italian restaurant, my mom worked for him for a number of years. She begged was I drove my mom crazy. I'll never forget. We went to 49th Street and highly up, went to Payless got got my shoes, got a black belt got some slacks from Kmart and a buttoned down white collared shirt. And I was the best takeout it was to this moment. I'll never forget it was good. My mom lived on the couch and he said I in her apron me and my brother Eric. In our uniform and it's just part of our life. You will go my house you will you will smell my my mother's uniform of ball restaurant. Grease you know when you me? She was round the clock, no exaggeration lid. She didn't even have a rule. My father lived upstairs. My mom was on the couch. And I see my mother Believe it or not the value proposition she gave to her customers because she really worked her tail off to get 18% gratuity by offering the best experience You can have and she was and she always was so nice and even though she had the toughest days most days she was smile and I seen that growing up and I picked up on it without actually knowing what I was picking up on. It just shows you the environment surrounds how powerful they are. And that's where I really get where I do believe thanking you. You're welcome. How are you pick up a piece of paper be walking by just it became habit for me because my mother and I started my first business. My mom fine was able to buy a home after renting all her life. A beautiful couple gave owner financing to my mother and she finally got it converted to a permanent mortgage. And there goes Bobby mortgage in my mom's house because I had an idea of wanting to open a janitorial cleaning service. And I did open it I went to Okeechobee road in Miami. How old are you?
Josh Jacobs:How old were you
Bobby Castro :here? Oh, dude, I must have been I don't know maybe 17 at that time, and this First entrepreneurial experience before that I used to paint houses and around Miami just knocking on doors and offering to paint for a ridiculous price where they couldn't say no. And that and I fell victim to that I'll get a little bit into that I used to try to fast track success and completely came up empty and put me in tough spots. And you know, and then I went to the cleaning service and then I was striking out on the cleaning services for multiple reasons. I was a little too young, where people were asking me for certain insurance, I didn't have insurance and finally I went to 36th Street. Northwest 36th Street next to me highlight at the pink Pussycat, it was an adult establishment. I walked in, I was just knocking on any door that had a door and sure enough, guess what, dude? They said yes. And so I started cleaning that place. After hours late at night. Very nice people hassle free, and I went to certain similar establishments They said yes. And it was pretty much a whole different environment as you can imagine. And you know, and they thought it was, I guess pretty cool to say yes to a young kid that really was looking for something. A little bit after that when a an adult entertainer mentioned how old is this kid, and just by bringing it up, it created some sort of, oh, maybe we shouldn't be doing this. So I use that for an excuse to quit I sold everything and I'll never forget I had about $249 mortgage payment to pay back then was called a second mortgage yada he looked like today. And I'll never forget I went to my how I got that I went to Miami Lakes Florida, then no internet back then the samples a flyer. I'll never forget his name. His name was pretty cool, Woody. And woody actually entertained me going there, too. And he says, Yeah, your parents qualify for I get a second mortgage. And I lived with that kitten for a long time. And then after that it made massive mistakes, you know, and.
Josh Jacobs :yeah, so just to be clear that mortgage was to start the janitorial company. Yes. And that's and that is that what you were doing at the adult entertainment centers or
Bobby Castro :I was I was cleaning I was cleaning the establishment after you know everyone laughed way way I mean seven in the morning type of stuff and and along with all the other after our clubs, and but I quit after that because it just didn't go my way and I quit a lot before that. And I used to always used to use the excuse for my circumstances and blamed everything in anyone based on I used to try to skip let me back up a little bit. Because this was no internet. I was addicted literally addicted to getting to responded to classified ads, anything that had a header become a millionaire made $100,000 next month, whatever the case may be, Bobby would go ahead and send away or call you get the recording mail me and my address. And not only and 50 packages a week used to come up and I used to just get so fixated on it. And I didn't understand I had no information. I didn't understand this, this, this very important thing, the process when I say the process, Josh, A through Z, I used to be at negative a, like the alphabet, and trying to work on efforts, like if I was on z had no reference to the stage I was at. I didn't understand that for many, many years, even as a young adult, until it hit me and I'll tell you about the life changer when it hit me. Um, and that was a battle that I actually I was I just wanted to be rich. Um, and it was all about money. This obsession, and I kept failing, failing friggin big. I mean, if I was a baseball player, which I was not, I was probably the worst baseball player. To hit a softball, I mean just I was just so distracted.
Josh Jacobs :Give us an example. Give us an example of one of those failures.
Bobby Castro :One failure was, one of many starting businesses and literally started quitting on that and started another business A week later.
Josh Jacobs :So not even giving yourself more than seven days.
Bobby Castro :I'm talking about extreme abuse that that's just abusive to your life. It's not healthy on you're just fooling yourself and you're like a hamster on the wheel thinking you're being productive and thinking and just because you're not getting it oh my god, just because I didn't get a sale in 24 hours on this. This industry stinks. Oh, this is I pick the wrong one. And I'm looking Oh, you know, what industry can I get into? What can I go? I was like that for many years like a lot of people are they just don't realize that they are. And and I finally figured I was really almost addicted to that when Fast forward. My my wife. I was living with my in laws Pedro and Dixie on lesion road in 100 Third Street broke again.But this time, a lot of things were a little different. I had a baby girl she's 29 years old today Priscilla. She was about two years old. I was walking out of my in laws page on Dixie house. And my wife Sophia, which will be married 30 years this October six pulls up. And it was a beat up car that wasn't even our car her parents gave it to us bought it on Northwest 27th Avenue. Buy Here Pay Here just for us. No air condition had the reverse fumes meaning that it was dangerous even dry because you can smell the fuels fumes coming in the car. She pulls up, she is peach red, but behind her in the car seat like Priscilla, my daughter. She was just drenched in sweat here in South Florida humidity. And it was a wake up call for me saying that was my moment where I said me. I got it. Get my crap together. I got to stop, like, what am I doing wrong? I'll never forget that. And I haven't thought about that for a long time until I got on social media. I've been doing these podcasts and starts hitting home on some of this stuff because for many years, I've been blasted away in my my own world, being very focused. And sometimes when you're so focused, it's good and bad. The good is it comes with a tremendous amount of rewards that I'm blessed to say I have created along with Sophie. But I forget some of the struggle because I don't want to remember the struggle, but if I'm going to help people, I got to talk about the struggle. And that's what I said, Man, I gotta stop this. I have to go back to basics. I went to work at rusty Pelican on Key Biscayne in Miami. And I got a job selling memberships for the Better Business Bureau. It was a new chapter of my life. I decided I was going to start at the stage where I was at, I was completely broke. I knew my weaknesses. I wanted to jump. I wanted to pre pivot. Always. I couldn't help myself just because I see a Ferrari. Oh my god. He's so young, I can do it too and, and all that blah, blah, blah. And it started there. It started there. I got my mom's people skills back, I started becoming humble, stay very grounded, very patient. There was many, many times I tried. I was going back to my old habits, but starting to listen to my beautiful wife saying, Bobby man, enjoy yourself. You could do this you could do, I'm telling you, I was bad. And today, man, because of all that, recognizing all that stuff. Today, we sit on the personal net worth of $300 million, never raised any capital, a portfolio of $400 million worth of apartments, never raised any capital all Penny by Penny, sold a company for $1 billion valuation, no financing, no stock, no nothing before that. It was two other slices. The power of surrendering to your weaknesses and scaling with others that can subsidize those weaknesses a took off and Then I became I took that beautiful obsession, that stuff that I talk horrible about my habits. The habits came back only when I learned what I was doing wrong what I do now then I switched all that power all that fuel to the correct way that I went from a, b, c, d, all the way to Z. And it was very hard, just like a lot of people are so distracted, your minutes are non refundable. Don't burn them like Bobby did. If I knew what I know, now, I wouldn't be worth 300 million, I'll be worth 30 billion. And that's why I'm so passionate on social media just telling people and I'm so desperate with good intentions of just saying Don't you see it? Because I didn't see it because of distractions when you're distracted. I'll give you a prime example. That company that I answered it for a billion dollar valuation started coming to zero years later, and that was 19 years ago, by the way, and I exited June of last year. 2019 a couple years before that three years before that five years before that somebody comes knocking, big institution $20 billion institution or whatever. Hey, I want to, I want to invest 30% I want to buy 30% of your company just being a real passive investor. And I want to base it on $250 million valuation and I want to wire $75 million
Josh Jacobs :And They came to you. You didn't seek this out?
Bobby Castro :No, it pretty much just surfaced.
Josh Jacobs :Amazing, okay.
Bobby Castro:We were totally focused on building our business. And sure enough, a reward comes your way without even expecting it. That's why I say man, it's so important to stay focused. So Wow. So of course you entertain something like that. Right? Yeah. So we entertained it. It closed. Money was transferred. I was thinking are they out of their mind? Why would they do that? Well, you figure you start going into bonafide content. You realize, good for them they stole it. They stole it Josh. the power of not knowing and knowing both courses are so powerful. Okay, good. So we're right here all the focus for many years whereas here thinking that we knew our stuff and we're building we're creating we're doing good in life. They bought it based on this. So we said, okay, we were distracted here. Put this down. start paying attention to this, which we weren't paying attention to. 11 months later, we started knocking on the door. Hey, you have first right of refusal. We appreciate you guys are awesome people. But yeah, first refusal we want to take 19% off the table, but still control and own 51% of our company. Great. We're gonna take it however, it's gonna be based on $600 million valuation, not 250. Are you kidding me? 11 months ago we got it for 250. No, I understand I got it. Well, it closed. Three months, three years later I work you'll pay attention to when you're supposed to be paying attention to and not get distracted. I exited it for a billion dollars. It could have been 1.4. But the terms are so good. I settled that a billion Sophia and I. It shows you the power of getting distracted. thinking you're doing so good. You reach your full potential. You're the smartest dude in the world. And you were brought along missing what you should be paying attention
Josh Jacobs :That's unbelievable. I mean, it's it's crazy because just hearing it from you listening to it almost sounds like the same process that took you from zero to figuring out what works and starting the company is a similar process of when you went from 250 million to a billion. It just realizing your weaknesses and realizing what you're not focusing on. And it's really powerful to hear that.
Bobby Castro:It's every Stage, it's every stage. even today, I find myself focused. You become so you surrender so much to your weakness that you become aware of it. You don't try to fix it, I'll take a lifetime. You just got to be aware of it. You feel your strengths. Even today, I fall victim of getting distracted. How so I'm so fixated on non refundable minutes, you would think I'm the most extreme focus I am. But I still fall victim to it. We all do at any stage, you can never stop growing in life you can, the more value you give your life The more you increase value. I understand the power of valuation just based on the story I just gave you. Just think about what I said all of us even all these rock stars out there thinking they're doing so good, which they are. But are you really paying attention to what you should be paying attention to?
Josh Jacobs :Yeah, I have to ask you because I feel like a lot of people just doubt themselves throughout the whole process. I've heard that with people who have amazing network. And amazing companies and I've heard it from people who don't have that. So I'm curious what your experiences with itself and elaborating through that and experienced it.
Bobby Castro :So I call it stuck being stuck in life Bobby Castro was stuck for many, many years. Okay, check this out. I had no money. I have zero. What do I have? I have nothing, nothing. I was so wrong. I have me. I had to create value within me in order to receive value. And I am telling you even today, I spent a solid two hours every morning on myself to make sure before I eat that front door. My mission is to seek value but I want to make sure I give you more value than you give me I'm not. I'm not worried about the return I've learned in life. The returns going to come in massive weights. It will show up sooner or later. Just keep giving massive value. So a lot of people Bobby, I'm broke. How do I get a break in life? I'm broke. Pay attention to you. Pay attention to your strengths, fuel your strengths, and stop skipping this process and the process starts with you. Because at the end of the day, it ends with you. It has to start somewhere and it starts with you.
Josh Jacobs :That's, that's amazing. I'm so happy you said that because I know a ton of people are going to get value out of that. It's actually I'm going to ask you a little bit more on that in a second. But first I just want to ask you about you know, one of the things you talk about all the time and on your website I see the shirts is massive urgent action, and I I just have to real quick share a personal story with you because I took your advice and took massive urgent action. I've been thinking about starting a podcast for a long time, right since they changed my life. And 12 days ago, I decided to start this podcast in three days. I named it I got my art, I set up my website and I reached out to 100 of my dream guests and a week later here we are And I have six weeks worth of guests lined up. I have all these things and I don't every single just like you every single step of the way. I felt stuck. I felt, oh, nobody's going to respond to me it's been six hours. Oh, am I going to be able to make an interview work all these things and you just find when you force yourself into massive urgent action, that's how you learn the best and that's how you have progress in your life. And I just I love that you talk about
Bobby Castro:I love that there's a good book, law of attraction is powerful. The Secret read it don't listen to the audio. So check out this. So the massive virgin actually came in because my minutes are so non refundable. I got to maximize each minute like if there were three minutes I try to get three days out of one day because I couldn't I just maximize and focus on a lot of minutes. When you and I or any of us including your your viewers and listeners. When we go to the airport. Forget about now because of the corona stuff. But when we go to an airport good times or bad times, everyone is such on high alert at the airport. You become very mission driven, very focused, you take action, you're competitive, you're fighting. But imagine having that every day just like you said, Don't overthink it, you just sometimes have to do it. And look at what you do you put yourself in a position that you had no other choice but to take massive urgent action.
Josh Jaobs :Yes, absolutely. That's that's what it is. I put myself in the position where I have no other choice once you reach out to 100 your confidence,
Bobby Castro :And look your confidence, your people skills, your vibe, your energy, you become a magnet for opportunities.
Josh Jacobs :Yeah. I love it. Man. I we only have a few minutes left. Unfortunately, there's so many questions I want to ask you we're gonna have to do this again. But, um, one thing that I just want to I want to end on this because once again, I get this question all the time. And it's something I know a lot of people need help with of all ages. And it's, you know, what do you tell someone who like you is feeling I know we already talked about this, but who's someone who's feeling stuck right now. Someone who just says Last I don't know what I want to do in life What would you tell that person if you ran into them and had a couple minutes? What would you tell them?
Bobby Castro:I'm going to tell them the same thing that exactly I did to myself reevaluate Have a look back in your last 24 hours just go back to your last 24 hours truly with vulnerability. write it all down and and find out what you did in the last 24 hours you're going to see so much gap so much you were a hamster on the way you thought you were doing something you're gonna say what the reason you're stuck. You actually put yourself stuck. So go back I don't care what stage you're at. I do this all I do this so much even in my life right now. Go back to 24 hours. See where you what you missed what you didn't do, how you were not affected how you were not even given friggin effort. How many hours were you sitting there moaning and groaning to yourself now you got to be honest, but it's great when you're by yourself doing it because We don't lie to ourselves when we're by ourself. We lie when everyone else is around.
Josh Jacobs :That's amazing advice. Thank you so much, man. I really, really appreciate your time today. Thank you for coming on.
Bobby Castro :Anytime you got to do good on getting great folks on your podcast and the people I say yes to, I don't care if they started 11 days ago, or one hour ago or 11 years ago. You were caring, polite, nice. You had great, fantastic energy. That is how entrepreneurs succeed. It's a different day and age now. That's why you got me on that's why you will continue getting me on that's why you're gonna be very successful.
Josh Jacobs :Man. Thank you. I got goosebumps right now. Thank you so much, Bobby. Really, I really, really appreciate it, man.
Bobby Castro :Much love. Thanks for having me.