Episode of My First Million with Sam Parr and Shaan Puri.
Transcript
Note: This transcript was auto-generated from YouTube captions. It may contain errors and lacks speaker identification. A full Gemini audio transcript will replace this.
Kind: captions Language: en sean put something on here that i actually think i was telling uh a friend as i was researching i actually think that this is one of the better ideas that we and you you’ve ever come up with the michael jordan thing all right yeah you want me to explain it okay so um i’ve been looking at this house for a long time michael jordan’s house has been for sale for like a decade and it hasn’t sold and this is his house uh kind of like you know in illinois near chicago where you know michael jordan was on the bulls and he had this 56 000 square foot home in highland park and so this thing originally he put it up for sale and like i don’t know nine years ago for 30 million 29 million dollars and now it’s you know the price has been cut in half and the thing is still not selling and if you look at the photos you can just go it’s like on zillow so you can go look at the photos he’s got like an indoor basketball court you know the gate leading up to the driveway has his big 23 number like embossed in it he’s got you know everything you would want like huge you know closets because he’s got you know all his air jordans or whatever and so his house is it’s pretty unbelievable right there’s there’s all kinds of um epic [ ] here but it’s not selling and it’s not selling for i think a couple reasons it’s like you know it’s very custom to michael jordan um like it just it’s like it was custom made in many senses so you know that other rich people don’t necessarily want to live in a house that’s like made for another dude um it’s also you know it’s very expensive for the area the property taxes are really expensive all that stuff but i was thinking okay the price is now cut in half now it’s now it’s a 13 million dollar house or a 12 you know 13 million home that you could buy 13 14 and now it’s in range where maybe there’s something fun you could do with it now you might be getting a value buy so i was thinking all right there’s a bunch of people obviously that are basketball fans that love michael jordan um there’s a bunch of you know new ways to crowdfund that we’ve been talking about nfts or uh kickstarter or different different crowdfunding platforms so the question is should we buy michael jordan’s house should we start a crowdfunding campaign and buy michael jordan’s house so if you could get 5 000 people to each put in 2 500 then you can own a fractional share of michael jordan’s house uh you could you you could own a piece of of this history and we could just buy it out take it off the market um and we could own this thing and then the question is like what do you do with it um and so i wanted to brainstorm with you a should we buy michael jordan’s house and b what could we do with it if we did buy it what do you think so the whole nft thing i wouldn’t do that i think that i think you’ve had two ideas here one is to buy his house and two is to end do the nft thing uh one of those ideas is great i think the other one is over complicating it i would 100 buy it and the reason why i think it’s such a great idea is immediately after you seeing you write this my thought right away went to graceland you know what graceland is no that’s funny that you don’t know what that is it’s because it’s such a big deal in my family or elvis is at least so graceland is elvis presley’s house uh it’s in memphis it’s in downtown memphis it’s actually in a pretty crappy neighborhood now or the neighborhood is not nice and it’s like kind of gross but it’s just like a cutesy thing to do if you visit memphis and i went and did research on it and so around 600 000 people a year go to graceland which brings in something like where i have the numbers here okay so graceland just in attendance uh just in ticket sales brings in 21 million dollars so it’s yeah pretty wild just on tickets and then 600 000 visitors a year uh 36 a ticket right yes and i got interested in this so i thought what are the most visited homes in america so i came up with a few and i want to fill you in on them so the white house doesn’t count because you can just you i think you can get a tour but you could also just walk outside of it but six hundred thousand the second one i’m you guys are gonna make fun of me i don’t know how to pronounce this what is it monticello i think so okay monticello that’s uh thomas jefferson’s house and so the interesting thing about this place as well as a few other i’m going to mention is that they’re non-profits which means all of their numbers are public and so uh the revenue for monticello which includes a ton of investment revenue was around 200 million dollars in 2010 but around uh 8 million 7 million came just from ticket sales so 8 million a year in ticket sales which is crazy and they have around 500 000 people another uh most visited home is never uh like homes that people drive by neverland ranch people don’t go there but the other another great one is mount vernon which is uh i think uh what’s our first president george washington’s house uh and they do in in in uh food sales alone this is crazy just in food seventeen million dollars a year wow is that crazy the whole operations and then they do 15 million dollars a year in admission sales and in total they do about 51 million dollars a year in total income which includes 10 million from contributions is that crazy that no that’s absolutely insane so let me ask you these okay so this all of a sudden this starts to get really interesting right because i think michael jordan is on par with elvis and you know thomas jefferson michael jordan’s got tj beat by a long shot so you know mj over tj i think is is part of the the slogan that we have when we when we buy this thing but um if they’re doing this much in traffic i got to know is there something else meaning like are these in really hot like popular areas uh where there’s already just a lot of tourists or something like and this is just a pit stop because you know michael jordan’s house is in a neighborhood you’d have to only be going to go to this place i looked up michael jordan’s address guess how far away it is from chicago airport one of the most popular airports in the world i’m gonna guess 45 minutes 20 minutes it’s 20 minutes away okay so it’s at like have you been in memphis memphis is like there’s not that much going on in memphis and all these people are going to memphis um people are chicago’s what the fifth most populous city in america or maybe third something like that something is interesting here so what i would do is i wouldn’t do the nft thing i would raise uh two or three million dollars from a bunch of rich people um or i would try to use my own money if i had two or three million dollars that i wanted to spend on this and i would buy it and then it would probably cost a fair bit of money to get it set up it would probably cost a lot of money another many more millions but then you’d have to convince collectors to lend you the stuff and you create a michael jordan museum yes and that’s how you do this and the companies that we’ve just mentioned graceland monticello and um mount vernon so those obviously those folks lived in the 1700s or probably died in the 1800s so they’ve been around those properties have been as tourist destinations for a hundred plus years but they’ve done 50 million revenue which is a [ ] ton but even if you’ve just um two or three million dollars in revenue and you could do that and adjust for inflation for 50 plus years kind of like graceland has done it for 60 years that’s incredibly fascinating right yeah i’m with you so so i think you you know you’re [ ] on the nft thing a little bit but it’s not about nft what i’m saying is crowdfunding um so i think that there’s a benefit to crowdfunding which is that crowdfunding is a way to make the story more viral um it is a it’s a more pr worthy story uh you know people from the internet people from reddit whoever got together and bought michael jordan’s home off the market for for 15 million dollars they raised 15 million dollars and bought the house versus a rich guy went to his rich friends and raised some money the second thing is those become you know your evangelist to spread the word and to come make the uh the pilgrimage to go see michael jordan’s house and i think you could do two or three things with it i think you could make it a museum that’s like a modern museum that we’ve been talking about like the museum of ice cream or something like that where the tour is very heavy um photo based and so you’re you know you’re going through and it’s all these different photo exhibits of you know you in michael jordan’s bed and you know wearing you know a pair of his air jordans or standing in a pair of giant air jordans or something like that and you make it like a museum of ice cream where you’re going to walk out with you know 10 photos that are instagram worthy at the end of it i also think give give people background on an ice cream museum yeah you can pull the latest numbers but i think these guys uh raised it like a hundred million dollar plus valuation and if you if you ever go to one they’re pretty cool it’s you know it’s not the most amazing thing i honestly i was a little bit disappointed but the photos do turn out cool it’s a museum that you walk through uh so it’s like a guided path and you go through maybe like 13 different rooms and every room is something cool and you get a little you know you get an ice cream cone of some flavor and then you can take photos next to some like exhibit that they’ve set up and the idea is not for you to look at the art like a traditional museum but for you to like take a photo in the art uh and post it on instagram and that’s their marketing that’s the free marketing that they get and so museum of ice cream oh yeah here everybody has it they raised 40 million they raised a 40 million dollar series a at a 200 million dollar valuation last year and um and i think this could be bigger i think this could be much much bigger as a brand um the other thing the other thing that you could do is uh sports cards are having this incredible boom right now and i think what you could do is you could have certain collectors put their collection um in in the house the house could be basically the vault to store some of the most rare memorabilia in the sports world sign basketball shoes and sports cards and that could be part of the museum and you you basically store it and you um you store it for some of these collectors so i think i think there’s a bunch of stuff you could do to make this work but the idea is like can you buy this thing for 13 million put another four or five million into uh you know getting it all set up and then could you make five million dollars a year could you make 10 million dollars a year like you’re saying these other guys do um as a pilgrimage for you know tourists going to chicago and basketball junkies i think the answer is definitely yes and i think it’s so interesting um i found a i found another example of one and it’s called the um it’s called the national trust for historic preservation and it’s a non-profit and all they do is um historical buildings and their historic i looked at their numbers they’ve been doing like 50 or 60 million in revenue for years and i’m still trying to figure out how to entirely read uh nonprofit statements but they have a buy a line item that’s revenue less expenses which i guess that just means prop i mean i don’t know how they define yeah i don’t know how they define either of those but it was 26 million and it’s been doing that for years is that nuts so i like this idea i like this idea a lot and i kind of want to dig a little further into how these um homes home museums work because i think this is pretty interesting the other good thing about this by the way is that the basketball hall of fame sucks uh nobody cares about it nobody goes to visit it um all the other sports like you know canton for football these are like tourist destinations you know tons of people go there every year it’s really cool and the basketball one is known to be super lame because they let way too many people in and um and it’s not like it’s not a thing that basketball fans really care to go do can i give you two more examples that we what we could consider doing instead of even doing a museum maybe this is even simpler yeah so i’m staying at my friend jack’s house it’s a badass house um five doors down or ten doors down something like that nearby is what’s they call it the obama house and when obama was in office from uh when was he in office oh the oh the second the second term um or whatever it was he would stay at this house down here and the owners let them stay i think for a massive discount now it’s like it has its own wikipedia page and it’s called like the obama and it sold 10 years ago for 7 million after he had already stayed there which sorry 7 million i said i say seven for seven million which is a lot of money but they rent it out right now on airbnb for six thousand dollars a night or if it’s booked all the way up 180k a month and it’s branded as the obama house i think that you could absolutely crush it with a jordan airbnb house would you and a group of friends be willing to pull together three thousand dollars a day to stay there maybe i think the way you’d have to do it is you’d have to make it like a vegas alternative for bachelor parties and stuff like that birthdays it’s like what is the man cave man dream vacation it’s like dude we’re gonna go stay in 14 of us are going um and it comes with like all the amenities and you know all that stuff this is where you go this is where you want to go if you want to live like the sports fans dream i think you could do that i do like the museum one better what was the second idea you had you said you had two oh what wasn’t the second i guess it was more so uh just another example the fresh prince of bel air um it’s it’s kind of interesting but do you remember living in san francisco how there’s like the what’s it called the painted ladies which is the whole the full house house and then there’s the missed out firehouse um i would just want to buy all these and turn them all into twitter so i lived a block away from the uh from the full house house and uh literally 24 7 there is somebody standing outside of that house during the daytime uh taking a photo of it so there’s just a constant and it’s not like it’s not like a huge line of people but there’s always like four people standing outside taking a photo in front of the full house house every single day for the whole year it’s kind of crazy and then it just sold actually and it sold at basically like i think 1.5 or 2x the market rate in that area so um they got basically like a double premium because it is the full househouse which i think is you know kind of interesting um but okay i think we should uh i think we should buy michael jordan’s house i think we should crowdfund uh i think we should crowdfund five thousand people together we should own this thing or we could go to rally road and we could say hey rally let’s put michael jordan’s house on rally and uh you know let’s sell this baby out i think if five thousand right now with if you go on rally roads you’ll get two thousand or three thousand people buying a fractional share of you know a pair of jordans or a signed autograph or a signed rookie card or something like [ ] all that let’s own the guy’s house so i think you could easily get 5000 people on rally road to buy a fractional share of michael jordan’s house i’m surprised they don’t already do this if they’re listening to this uh you know go go for it just give us credit and give me a share of the house i actually think that they wouldn’t do that because how do you liquidate that it’s been on the market for 20 or how long 10 years no one is obviously no one’s buying it so like how do you get liquidity from that after seven years i don’t think you don’t i think the game here right the point of rally is that they take things that are not assets and they make them not liquid assets they make them liquid assets so because you can own a fractional share now there’s liquidity any one person who owns a piece of michael jordan’s house can swap it for anybody else who wants to own a piece of it so you don’t need a 15 million dollar buyer because you can sell them in blocks of a thousand or fifteen hundred dollars and so when you bring that price point down there’s people who want to own a piece of the a piece of the art a piece of the asset which is how they do like you know they’ll sell um you know a harry potter first edition signed you know set of books and uh you know instead of selling it for 25 000 they’ll get you know 2 000 investors to each put in or whatever whatever the math comes out to 150 bucks to go buy uh you know to own a piece of that thing so they introduce liquidity by making it fractionally owned yes but there’s still no cash flow you have to create an operation around this cash flow and there’s no cash flow in a basketball card there’s no cash flow and air jordans there’s no cash flow and harry potter first asian investor who’s willing to buy it no dude you’re still thinking like the old world you haven’t seen what’s going on rally you’re staying with jack smith you should go ask jack smith about how this stuff works uh he’s the one who who taught me and he’s one of the biggest investors in this stuff he’s not buying it for cash flow um you know he’s buying it because yeah there are there is another there is another collector and when you make it fractional now way more people can get in on collecting it versus just the rich deep pocketed people who could buy the whole asset 100 percent yeah bro but who lik who liquidates it after a handful of years on rally road uh someone actually buys the car after a few years very rarely occasionally somebody comes and offers to buy out the whole the whole lot um and then they put it to a vote i don’t know if you’ve seen this but like you know let’s say a box of pokemon cards went on there uh like a super rare pokemon card set they i don’t know what the ip what the ipo was but on rally the ipod let’s pretend it was 50 000 and then what happened is a is a big you know asian investor came in and said we’ll buy this thing out for 85 000 now so you’ll all get a profit but we want to own this thing and they put it to the vote of all the share owners and they said no they said we’re going to hold it we think it’s going to go up so they voted no they voted to keep it so they’re not all trying to liquidate um soon you know some some people who are buy and hold investors will want to own these assets for a long time because they think hey you know if i just hold this now you know what’s michael jordan going to be what’s michael jordan’s fame going to be 20 years from now if michael jordan passes away how much is it going to be worth and there’s people who are in it for the long term so i think there’s i think the collectibles thing is a little bit different than i think about it differently than you do i would say you basically need jordan to have like a tragic accident or like for example dance came out so so the last dance is ten part documentary that came out on netflix and espn um you know millions and millions of people watch this thing and jordan’s brand you could see all the price of jordans went up jordan’s like brand visibility and brand sentiment went up because this documentary came out and he’s still alive it wasn’t a tragic event but somebody told the jordan story to the the younger generation who you know grew up with you know they were two years old when jordan was at his prime and so jordan brand got stronger with the last dance coming out and i think that’s just going to continue you know over time because he’s got all these different you know the legacy becomes bigger than the person itself but i have a different thing that’s sports related okay i feel like i can rule the world i know i could be what i want to i put my all in it like the road