EP15 | Passive Income Became Our Obsession | Leonard Mcharo & Emily Mcharo (Founders, Tsavo City) – Transcript

00:00What is this thing? Apartments in Kangella. >> Apartments not working. Uh-uh. Host in DA. Boom. That's what we're looking for. So that we get 500K. Kids go to Harvard.

00:11After that, retirement benefits. >> Let's go and find out where this DA University is.

00:26>> Yeah. >> Yeah. That's how we met that lady and that's how the land thing >> that's how and that's why you bought the land. >> That's why we bought the land. So the land was Oh, sorry. It was not about land. >> That's what I wanted. It's not about No, no, no, no, no.

00:41Thank you. >> Sorry, sorry, sorry, sorry, sorry. It was not about land >> cuz it's not feeling investment like for me land unless you're buying to flip but still even idle land. Why are you flipping?

00:53>> No, no, no, no, no. It was about host. So we build this thing and we say then we ask ourselves this 20k when will it ever get to fight because immediately I got it I started designing >> the host.

01:07>> The host. >> Oh not host host. >> Yes the host. >> Yeah. >> So we formed a company bought the land 50/50. >> Is that company is not Savo at all? >> Not Savo. >> That's called Enkang Host.

01:22>> Enkang is a Masai word for homestead >> guys. They didn't start with >> Savo. Yes. No. >> And Kang Host hotels. >> 50/50. And that I learned from my dad. My dad was alpha male. He's the one making the money. But all his companies he started with with my mom. 50/50.

01:40>> Yeah. Yeah. So you do that your things will never get lost. >> Yeah. Yeah. Yeah. So we started saving and as you're doing that I became a bit Mavelian. >> Maveli. >> Yes.

01:54a bit a bit sneaky in our in our dealings. I always I told you I'm a student of man. So I've seen men who are older and life has gone down, the women are stronger financially >> and these girls start getting despised.

02:12So I told myself now since I've already learned how to give my wife the money, we will eat off her. She will buy the food. She'll pay the rent. She'll pay the school fees.

02:25My money, all of it will go towards this investment 100%. >> So that if when you when I'm 45 and anything goes wrong, at least I will have skin in the game. We own the thing 50/50 and my money will actually have gone there.

02:42>> Not to scumiki. >> Not to go. >> The temporary thing will eat. So that was my sneaky way of protecting my tomorrow. >> Yes. >> Yeah. Yeah. Yeah. >> And what did you feel when he tells you this? >> You okay? >> Yeah. Yeah, I'm fine. >> Okay. >> Because the company is 50/50. So So she's part of it. And I can't tell her you haven't put anything. I'm the man.

03:01So I have no right to say such words. >> But he's told you this vision of the host. >> Yeah. Have you agreed to >> Yes. So we know we know we we're building host and even buying the land. We know it is ultimately to build host and joining the circles. It's ultimately that when we finish paying for the land, we will borrow from the circle and start building. So, it's a plan.

03:21>> But, but even that >> even the host is not the thing. >> Yeah. The hotel is not the thing. >> That discussion was very intense cuz she was on maternity leave. >> Yeah. >> So, [clears throat] we had a month or two to just discuss that plan. The plan was to be old with money.

03:38>> Before owned with money, one of the five men I said is very influential in my life was Jeffrey Jo. M >> he had told me when you in the university >> that when you start working you save for retirement >> from your first salary >> but if you're saving for retirement the same the same the same investment that will will take care of your retirement should take care of your children's college fees.

03:59>> Wow. >> Yeah. So primary school high school pay from your pocket as you invest for college fees. Once they're done with college you flip that money becomes your retirement fund. >> So that's what we discussed. >> Mhm. The dream was when you're in college, the dream was for the boys, our children to go to Harvard >> when they're done. So this time he said, "Okay, how much is Harvard?" That time it was about 6 million B. 5 million B I think >> per year, >> an undergraduate degree.

04:26>> Okay, so we need something that will give us 500k per month. >> So at the end of the year we have 6 million shillings. You'll have 5 million in fees, 1 million in expenditure. We didn't know how expensive America is. >> It is very expensive >> but it's okay. Yes. >> So that is what so we knew we looking for something that give us half a million per month.

04:45>> What is this thing? Apartments in Kangella. >> Apartments not working. Uh-uh. Hosts in DA. Boom. That's what we looking for. So that we get 500k kids go to Harvard after that retirement benefits.

05:02So, so you say this thing changed how we think and how we work and how we relate >> is because now we >> even kids have you you're not seeing kids Nairobi uni and I have nothing against Nairobi uni >> my father did my father did not go to the university >> yes >> I went Nairobi uni my children cannot go to Nairobi >> and even this guy the way you told us your story you have to do better than the last >> yes >> I don't know where their children will go but >> >> Mars.

05:30Mask. >> Yeah. >> So, but so you your goal is Harvard. >> Our goal is Harvard. >> We didn't make it to Harvard, but Colombia is not bad either. >> School of the >> But they both in the States. >> School of the Visual Arts. They are both in the best school. Both of them are in the best schools in whatever course they're doing is the best in the world.

05:48>> World. >> Yes. >> But this didn't start >> when now money started coming in. This started I mean what what I mean is >> the discussion didn't start s >> the discussion was before they were born >> before they were born >> discussion was before >> when we in compass >> yes so >> we lost our way for 5 years >> for 5 years >> but we book that has this this information >> and the [clears throat] black books are at home okay

06:16so >> uh I've understood why you've been forced to open up the income tap >> because you have no cash coming in. So you have been you've been forced to hustle to bring in money. You've got a constant paycheck >> but that constant paycheck is for living.

06:32>> It's for living. Yes. >> And none of your kids have started nurs. >> So yeah. Yeah. By by that time I was about to start starting but a little neighborhood thing. >> But now as you start you've got the land you can start building on land or planning on land even before you've got the money to build >> to build. Yes.

06:51>> You're an architect. That's what you should be doing. >> So, do you start that? >> The lady pushes us every month. Why aren't you building? You don't have to finish paying me. Just start. Start. Start. >> Hey, that lady was godscent. Thank you. We do.

07:07No, I think she's alive. >> She's still alive. Yeah. Yeah. So, so she has really she has really been good. >> She's pushing you to >> to start building. How old are you guys at this time? How what year? Okay. What year is this? 20 205 is no this >> man was born in 203 so 204 >> 204 >> 204 is when we are actively paying for >> so I'm now 30 >> yes >> she's 25 >> remember my father >> you've just loved Jenz you in the mix of

07:35yes yes yes >> okay so by the way I've really seen this picture >> you you have the but and now does the goal become let's build on this now we get stuck When will this happen?

07:51>> Because we need 5 million shillings. Cuz I've done the designs. I've costed it. It's 5 million. Bob, >> we have two. >> We >> We can borrow two >> if we if we save for another two years >> from the circle. >> Yes. If you save for another I don't know two years. >> Yeah. I would have been able to get two and you two.

08:06>> Yes. >> But this is the end of year one. I can get one. He can get one. Isn't it? >> No. The plan was for you to get for me to get to 400k. So I'm saving 15k. I think I I increased to 20. [clears throat] Yes. So 20k and I need 400k to borrow a million cuz I could get two and a half times. So that's 20 months. So almost two years.

08:25>> Three times. >> Yeah. >> But you have to also Okay. With a guaranter. >> Yes. So I had to build relationships at work. >> At work. Yeah. >> Cuz way way in advance >> for them to so the relationship had to pay. >> Then she could get three times. So she did about 350k.

08:41>> Yes. >> Divide by 20 is almost another 20 months. Why? >> But so even if even if that happened, we could only >> raise 2 million >> raise 2 million. >> And you need five. >> We need five.