His Mom Put Her House on the Line So He Could Open a Snowboard Shop at 17 | Chris Naugle

Chris Naugle's mom put up her house so he could open a snowboard shop at 17. Every bank had turned him down. One would do an SBA loan if he had real estate, and her 700 square foot ranch was worth about $70,000. The shop opened in November 1994 and had a huge Christmas. Then summer went dead. He spent his cash on fall orders and lay on the boxes in the back room crying, sure he was about to lose her house. In this episode of The Exit Plan, Alex Smereczniak sits down with Chris Naugle, founder of Private Money Club, to trace the path from a Buffalo snowboard shop to Wall Street, 274 house flips, and private lending. He took an advisor job only because the dot-com crash forced him to, came within two months of bankruptcy in 2008, and had to sell 36 apartment units when a bank froze his credit line in 2014. His most contrarian take is that paying cash for a business still costs you, because that money stops earning the day you spend it. You'll hear: - Why being forced into a Wall Street job made him stop working in his shop and start working on it, and how the shop grew because of it - How a bank freezing his line of credit at 36 units forced him to sell every building he owned - How he uses a specially designed whole life policy to fund the down payment on bank loans, and who he says it does not work for, including anyone who can't accept a first year drag he puts at 7 to 10% - His most expensive lesson: a hard money loan on a strip mall right before 2008 left him two months from bankruptcy, and why he'd tell his first year self to build a reserve account Chapters (00:00:00) Intro (00:00:47) Quitting at 16 to sell shirts (00:04:21) The shop owner who closed to ride (00:07:36) Crying on the cardboard boxes (00:10:42) Two endings for the board shop (00:15:05) Wall Street out of necessity (00:18:49) The lunch at Cheesecake Factory (00:29:59) Funding an SBA down payment (00:47:56) Building Private Money Club (00:54:50) Quick hitters Connect with Chris: Website: https://chrisnaugle.com The Exit Plan: Follow on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-exit-plan/id1814643428 Follow on Spotify: https://open.spotify.com/show/46Fegpnlum8YtWUuuCnoiF Free guide, real costs and earnings for the top 5 franchises under $150K: https://go.franzy.com/top-5-franchises-under-150k Find your perfect franchise, free: https://franzy.com Follow Alex: https://instagram.com/alexfromfranzy | https://www.linkedin.com/in/alex-smereczniak-40310329/ Enjoying the show? Tap Follow in your podcast app so next week's episode shows up automatically, and rate us on Apple Podcasts or Spotify if this one earned it. The Exit Plan is a Franzy podcast, hosted by Franzy co-founder and CEO Alex Smereczniak.