September 5, 2023 • 15 mins
Get ready for an electrifying episode with Dallas Austin, a GRAMMY® Award-winning producer, multi-instrumentalist, and music industry trailblazer. Discover his journey from a small town to Atlanta's vibrant music scene, where he secured his first million at just 19 and faced his first major challenge in the music business. In this episode, Dallas shares candid insights into his rapid rise, formidable obstacles, and the unbreakable passion that fueled his remarkable career. Tune in to gain inspiration from the transformative power of following your fervor.
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Episode Transcript
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Speaker 1 (00:00):
I went to the I found out.
Speaker 2 (00:02):
What I did was I put another account in his
office to go through stuff and just say, hey, man,
go in and see what's going on in the office
and let me come back and get me a report
on it. And so he came back, he said, Man,
I got some crazy news for you. So well, you
about to get hit with a million dollar tax problem
that you have od I wrest a million dollars and
you have half a million dollars that came in and
(00:23):
went out and we don't know where it went.
Speaker 3 (00:25):
WHOA. You're listening to Money Moves powered by Greenwood, a
finance podcast dedicated to dropping all the knowledge and gems
from the world's leading celebrities, entrepreneurs and experts, and tech,
business and more. I'm your host, angel investor, technology enthusiast,
and media personality Tanya Sam. Each week we talk with
(00:46):
guests who are making significant strides in their fields and
learn how they are making their money mood. If you're
someone who's looking to make your money move, you're in
the right place, So open up your notes app and
lock us in because this podcast will give you the
keys to the king. I'm a financial stability, wealth and
abundance you so rightly deserve. Before we start the episode,
(01:06):
I'd like to remind you to check us out at
gogreenwood dot com and follow us on social media at
Greenwood and me on all things social at It's Tanya.
Time to stay locked in to new episode. Hey, Moneymovers,
Welcome back to Money Moves, the podcast designed to give
you the keys to the kingdom of financial stability, wealth
(01:28):
and abundance. Prepare to be inspired by a true master
of his craft. Our guest today is Grammy Award winning producer,
multi instrumentalist, songwriter, film producer, entrepreneur, DJ and a passionate
philanthropist with a remarkable career that has shaped the sounds
of countless iconic artists. This creative powerhouse is here to
share his insights on money, music and making a difference. Moneymovers,
(01:52):
please join us in welcoming the one, the only, Dallas
Austin to the podcast. Hey Dallas, Hey, how's it going?
Speaker 2 (01:59):
Eh?
Speaker 3 (02:00):
Fantastic, So excited to have you on the podcast today.
Speaker 1 (02:03):
Welcome, Welcome, Yeah, I'm excited to be here.
Speaker 3 (02:07):
So let's get right to it.
Speaker 1 (02:10):
Money.
Speaker 3 (02:11):
This is a podcast about money and although we're going
to go through your your entrepreneurial journeys, your journey through music.
I want to dive right in by asking you about
you know, years later, you've been massive wealth, You've learned
a lot of lessons when you go back to like
young Dallas, what did you think about money? Did you
think that you would be where you are today? Did
(02:33):
you think that money was hard? Like talk about your
early mindset.
Speaker 2 (02:38):
You know what's funny is because I came from you know,
my mom and dad, I thought they had money, you know,
because we lived in in what was considered a suburban
home and right Columbus, but really they did. He didn't
have money like that and my mom didn't have money
like that. So you know, it was never I never
chased the money of it. I was so determined to
(02:58):
be a record producer and I would stay up all
night making the songs or like even at twelve thirteen,
you know, being in bands and just obsessed with music
and to the point where it you know, one of
the last arguments I had with my mom, I think
I was in I was in somewhere in high school
and I didn't want to go to school.
Speaker 1 (03:18):
I just want to.
Speaker 2 (03:20):
Stay in studios, And so she went and talk to
my counselor at the school, and he goes, you know what,
you know, if he's that determined, maybe she just backed
him at this point.
Speaker 3 (03:28):
Wow, good counselor.
Speaker 2 (03:31):
So she was like, you know, whatever you do, make
sure you make some money. And you know, I hope
you do great at and I'll vack you, but you
got you got to do it. So I would come home,
and when I first started making checks, like it was
like a thousand dollars for me playing in a studio,
I was fourteen and fifteen, and so I would come
home and give her the check. She's working at poth Folks,
the restaurant as a manager, making probably twelve grand a year.
(03:55):
And so when I started coming home and giving her
those checks, you know, I didn't have anything to do
with them anyway, because as I'm living in our house
and fourteen years old, and as I started to make
you know, I just never chased the money. And what
was crazy is I was in at sixteen. I signed
in to work for higher contracts, which means they hired
they own everything you do. You know when they hire you,
(04:17):
and they own your publishing and own everything. So by
the time I was eighteen nineteen, twenty Eve eighteen and
nineteen when Boyster Men and Tlcacation, when all these songs
had came out, all the money had to go to
escort because I was in dispute with the person that
had me signed into these bad contracts. So because I
(04:38):
signed at sixteen, my mom had to signed with me.
And by the time I was eighteen nineteen, all these
records had accumulated.
Speaker 1 (04:44):
And they were in dispute.
Speaker 2 (04:46):
So I had about two million dollars sitting in escot
that I couldn't.
Speaker 3 (04:50):
Touch at got young age.
Speaker 2 (04:54):
Yeah, and my mom was working a this is a
barbecue by that time, angles you know, barbecue sauce all
over and Motown Philly is playing on the radio or
like you know, I he's just playing on the radio.
And still because we were in Atlanta, you know, you
didn't know what that meant in a sense because we
(05:14):
so Atlanta and were so Georgia that we were just
so you know, I didn't even leave out of here
to go out of the country probably till I was
like twenty seven, so because it was so Atlanta and
I was so busy just staying in that studio, like
I didn't go out, just stayed in the studio. So meanwhile,
that's accumulating money. And we didn't know it like that
because we never had it, so you don't know what
it's like.
Speaker 3 (05:35):
It was so fascinating, right, Like you're just accumulating. So
you're how old and you have probably two million dollars
in the bank account.
Speaker 2 (05:42):
Well it's I'm like eighteen nineteen and it's and it's
an eSchool so I still can't touch it.
Speaker 1 (05:48):
So my mom's still working.
Speaker 2 (05:50):
And by the time I made a deal to get
the money freedom, by the time I've done another Bad
Creation Boys the Men and Antoc and all their first albums,
you know, start selling like crazy. And this is when
album sales were, you know, nineteen ninety nine and twenty dollars,
so you would make it some money, you know, yeah,
even if you thought you wasn't by the time all
(06:11):
those records, so you're still making money. And so when
I first got with actually having it, like when I
remember the data it feed up, you know, I was like, wow,
I was so used to not having it that I
kind of didn't know how to how to act in
a sense, I knew, I knew I wanted to get
her out of this is a barbecue. And so one
(06:31):
of the first things I did, though, is I built
my studio. And back then, nobody would finance it for
me in Atlanta.
Speaker 1 (06:40):
They just I was too young. The music industry hadn't
hit here yet.
Speaker 2 (06:43):
They didn't understand it, and so we had to finance
it from California.
Speaker 1 (06:47):
You know. Back then the consoles were like a million dollars. Wow.
Speaker 2 (06:51):
Yeah, everything was like super through the roof. But the
studio time is even, you know, two thousand dollars a day. So,
you know, I started working and started doing all this
stuff really young. As soon as I started to get
more money, I started to put it back into the music,
stopped putting it back into signing other writers and producers,
(07:12):
getting a studio to where it worked as a as
a business on its own, and so everything started to
turn it and that's what money for it started to be,
not just earned at that point, but then generate it
and then again not understanding it because being so young
and nobody was here. Nobody was in Atlanta at the
time and understood it.
Speaker 1 (07:33):
Either.
Speaker 2 (07:33):
It wasn't any accountants, it wasn't any good money people,
you know.
Speaker 1 (07:37):
Yeah, so it was.
Speaker 3 (07:40):
And even just sort of blazing a trail like making
it happen.
Speaker 1 (07:43):
Yeah, and making all the mistakes.
Speaker 3 (07:45):
To making all the mistakes too at the same time. Yeah,
I have a couple of questions on this. This is
so fascinating. I'm actually learning something. So in the early days,
I mean, you're underage, you got you're getting checks for
like one thousand dollars. That kind of blows my because
you know, even now for kids to get a check
for a thousand dollars. But this is a couple of
(08:05):
years ago. Let's just put it into perspective for a
time frame. So now you've a mastered this money. How
did you know that you had to put this into
a like into an Esquire account? Like who was advising
you on how to save this money? Or was it
court or I'm curious about that.
Speaker 1 (08:25):
It was Well at that time, nobody was really yeah much.
Speaker 2 (08:32):
You know what, along with money comes the lawyers, and
the lawyers say, hey, you need this guy to be
your accountant and no. So that whole thing went on,
and this, uh, what happened is when the faces came
to town. By the time I was doing the TLC
records and stuff. Then that's when the money almost got
freed up for me like that. After that time, and
(08:53):
the business manager that kind of came to town with
them was managing everybody else. So it's the first time
I heard the word business manager. And you see, lawyer
said you need a business manager, and so we had
him dealing with the money from that point and so
everything was you know, and always say, this is one
of the biggest lessons I've learned because through that business.
Speaker 1 (09:14):
Manager, I end up having tax problems.
Speaker 3 (09:17):
Because here's the down ups and the downs and making
money fast.
Speaker 1 (09:24):
Yeah.
Speaker 2 (09:24):
And the thing about it is in the music business,
they don't take the taxes out on you. So if
you get a check for a million dollars, it shows
up was a million dollars and it's up to you
to pay your taxes. Right. So when we started the cycle,
and so I found out one day, I was just
kind of thinking. I was like, man, you know, I
got a range over and I got a house, but
I knew exactly how much money I got. So and
(09:47):
I start having this conversation. Actually la Reed called me
because we had to. He was all of us was
with the same person, and he goes, you know, I
don't know how much money I got, do you? Actually
I don't.
Speaker 3 (09:58):
These are great money. We have problem but they're not.
So that's why we got to talk about them.
Speaker 2 (10:04):
And because also you know, with a business manager, so
to speak, they make you, especially when you're young, they
make everything is taken care of for you.
Speaker 1 (10:11):
You know, we got to set up we got.
Speaker 3 (10:13):
Don't you worry about it, you just do you make me? Yeah,
I want you to be creative.
Speaker 1 (10:19):
I went to the I found out.
Speaker 2 (10:22):
What I did was I put another account in his
office to go through stuff and just say, hey, man,
go in there and see what's going on in the
office and let me come back and get me a
report on it.
Speaker 1 (10:30):
And so he came back.
Speaker 2 (10:31):
He said, man, I got some crazy news for you.
He said, well, you about to get hit with a
million dollar tax problem that you I arrest a million
dollars and you have half a million dollars that came
in and went out and we don't know where it went.
Speaker 1 (10:45):
Whoa you know.
Speaker 2 (10:48):
And I said, okay, well, you know this doesn't make
any sense because I went and I signed all the papers.
Anytime he said we need to sign tax papers. I
came up to the office I followed them, said are.
Speaker 1 (10:56):
You sure about this?
Speaker 2 (10:56):
He said, I'm sure. And I arrested about knocking on
your door because it's been a couple years. And I
was like, okay. So I meet with the guy the
IRS and this is one of the most valuable lessons
I think financially ever learned.
Speaker 1 (11:08):
He goes.
Speaker 2 (11:09):
I go to him and I say, man, you know
this this I got a million dollar problem going on
with penalties and interests going this guy, my business manager.
I did all the work, I found the papers, I
did everything. He said, why do I have a problem.
I don't understand.
Speaker 3 (11:24):
I pay these and where's my missing half a million dollars?
Speaker 1 (11:28):
Yeah?
Speaker 2 (11:28):
And the IRS man goes, well, we heard about this guy.
You know you're not the first one to come in here.
I said, oh okay, so I'm thinking.
Speaker 1 (11:36):
Oh yeah, here's my love.
Speaker 2 (11:39):
He goes, but let me tell you something, he said,
you guys are quick to get these guys. That's business managers.
He said, let me tell you some about the business manager.
He's like, he's not backed by the FDI, c oh
I better having a public accountant from down the street,
the CPA, he said. But the term business manager because
in the music industry back then, Burke Padel and everybody
(12:01):
you know business manager more than you heard accountant, right,
especially if you had a label of money coming in
to that degree and you have a business manager.
Speaker 3 (12:11):
Right.
Speaker 2 (12:11):
So he goes, but let me tell you something, he says,
if I operated on your arm right now, right, you
couldn't sue me under doctor laws because I'm not a doctor.
Speaker 3 (12:21):
Right right. So it's the same thing with the business manager.
Speaker 2 (12:24):
When the business manager, you can't hold him accountable because he's.
Speaker 3 (12:27):
Not he's not licensed. There's no license to pull or.
Speaker 2 (12:30):
Oh license or nothing. So he goes, so I'm gonna
do this for you. I said, Well, he's I'm gonna
stop your penalties and interest.
Speaker 1 (12:36):
That's it.
Speaker 2 (12:37):
But pay me all my money. Now, this is the
trick if obviously, if you owe him a million dollars,
you got to go make two million dollars to be broke,
right because you got to tax the money that you're making,
and then you gotta pay him down at the same time.
So I said, okay, well I just got to work
(12:59):
my way out of it.
Speaker 1 (13:00):
That stoley.
Speaker 2 (13:00):
You know, I didn't want to go bankrupt anything at
the time because I had my I had my record
company and stuff, but it was like a ton of
bricks from somebody, you know, put on your list all
your what the items out, you know, and we're gonna
give you one year.
Speaker 1 (13:14):
To fix this.
Speaker 3 (13:15):
We're gonna take them.
Speaker 1 (13:17):
We're gonna take them. Uh.
Speaker 2 (13:19):
And so I remember me and Babyface, we were all
kind of in the same kind of boat because it
was the same guy. So like Dallas, let's just right out.
We gotta ride ourselves out of it. So whatever projects,
that's kind of doing together. So we did the Voyage
the Man two album, Madonna, Bedtime Story, U TLC, Crazy
(13:40):
Sexy Cool that year. I think I did Michael Jackson.
But just I went to work and I never tell you,
I never forget. I was so happy. I got to
check that was like five hundred thousand dollars and that
was my last payment also to pay them, and I
was dead broke.
Speaker 1 (13:57):
I was so happy to be there.
Speaker 3 (13:58):
But you're back to level, you know, you're out of
the red.
Speaker 2 (14:01):
You're just like, okay, oh yes, notice lesson and you know,
and looked out for that in the future it noted
that happen again.
Speaker 3 (14:11):
Thanks for listening to today's episode. If we helped you
make your money move. Please share it with your community,
Subscribe and leave us a review on iHeartRadio and Apple podcasts.
Follow us on social media at Greenwood and visit us
at Gogreenwood dot com for more financial tips and remember,
money Movers, If this were easy, everyone would do it.
So take the lessons you've learned from this episode and
(14:33):
apply it to your life. Money Moves is an iHeart
Radio podcast powered by Greenwood Executive produced by Sunwise Media, Inc.
For more podcasts on iHeartRadio, visit the iHeartRadio app, Apple Podcasts,
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Money Moves podcast powered by Greenwood, so that you too
(14:55):
can have the keys to financial freedom you so rightly deserve.
Next time,
I went to the I found out.
Speaker 2 (00:02):
What I did was I put another account in his
office to go through stuff and just say, hey, man,
go in and see what's going on in the office
and let me come back and get me a report
on it. And so he came back, he said, Man,
I got some crazy news for you. So well, you
about to get hit with a million dollar tax problem
that you have od I wrest a million dollars and
you have half a million dollars that came in and
(00:23):
went out and we don't know where it went.
Speaker 3 (00:25):
WHOA. You're listening to Money Moves powered by Greenwood, a
finance podcast dedicated to dropping all the knowledge and gems
from the world's leading celebrities, entrepreneurs and experts, and tech,
business and more. I'm your host, angel investor, technology enthusiast,
and media personality Tanya Sam. Each week we talk with
(00:46):
guests who are making significant strides in their fields and
learn how they are making their money mood. If you're
someone who's looking to make your money move, you're in
the right place, So open up your notes app and
lock us in because this podcast will give you the
keys to the king. I'm a financial stability, wealth and
abundance you so rightly deserve. Before we start the episode,
(01:06):
I'd like to remind you to check us out at
gogreenwood dot com and follow us on social media at
Greenwood and me on all things social at It's Tanya.
Time to stay locked in to new episode. Hey, Moneymovers,
Welcome back to Money Moves, the podcast designed to give
you the keys to the kingdom of financial stability, wealth
(01:28):
and abundance. Prepare to be inspired by a true master
of his craft. Our guest today is Grammy Award winning producer,
multi instrumentalist, songwriter, film producer, entrepreneur, DJ and a passionate
philanthropist with a remarkable career that has shaped the sounds
of countless iconic artists. This creative powerhouse is here to
share his insights on money, music and making a difference. Moneymovers,
(01:52):
please join us in welcoming the one, the only, Dallas
Austin to the podcast. Hey Dallas, Hey, how's it going?
Speaker 2 (01:59):
Eh?
Speaker 3 (02:00):
Fantastic, So excited to have you on the podcast today.
Speaker 1 (02:03):
Welcome, Welcome, Yeah, I'm excited to be here.
Speaker 3 (02:07):
So let's get right to it.
Speaker 1 (02:10):
Money.
Speaker 3 (02:11):
This is a podcast about money and although we're going
to go through your your entrepreneurial journeys, your journey through music.
I want to dive right in by asking you about
you know, years later, you've been massive wealth, You've learned
a lot of lessons when you go back to like
young Dallas, what did you think about money? Did you
think that you would be where you are today? Did
(02:33):
you think that money was hard? Like talk about your
early mindset.
Speaker 2 (02:38):
You know what's funny is because I came from you know,
my mom and dad, I thought they had money, you know,
because we lived in in what was considered a suburban
home and right Columbus, but really they did. He didn't
have money like that and my mom didn't have money
like that. So you know, it was never I never
chased the money of it. I was so determined to
(02:58):
be a record producer and I would stay up all
night making the songs or like even at twelve thirteen,
you know, being in bands and just obsessed with music
and to the point where it you know, one of
the last arguments I had with my mom, I think
I was in I was in somewhere in high school
and I didn't want to go to school.
Speaker 1 (03:18):
I just want to.
Speaker 2 (03:20):
Stay in studios, And so she went and talk to
my counselor at the school, and he goes, you know what,
you know, if he's that determined, maybe she just backed
him at this point.
Speaker 3 (03:28):
Wow, good counselor.
Speaker 2 (03:31):
So she was like, you know, whatever you do, make
sure you make some money. And you know, I hope
you do great at and I'll vack you, but you
got you got to do it. So I would come home,
and when I first started making checks, like it was
like a thousand dollars for me playing in a studio,
I was fourteen and fifteen, and so I would come
home and give her the check. She's working at poth Folks,
the restaurant as a manager, making probably twelve grand a year.
(03:55):
And so when I started coming home and giving her
those checks, you know, I didn't have anything to do
with them anyway, because as I'm living in our house
and fourteen years old, and as I started to make
you know, I just never chased the money. And what
was crazy is I was in at sixteen. I signed
in to work for higher contracts, which means they hired
they own everything you do. You know when they hire you,
(04:17):
and they own your publishing and own everything. So by
the time I was eighteen nineteen, twenty Eve eighteen and
nineteen when Boyster Men and Tlcacation, when all these songs
had came out, all the money had to go to
escort because I was in dispute with the person that
had me signed into these bad contracts. So because I
(04:38):
signed at sixteen, my mom had to signed with me.
And by the time I was eighteen nineteen, all these
records had accumulated.
Speaker 1 (04:44):
And they were in dispute.
Speaker 2 (04:46):
So I had about two million dollars sitting in escot
that I couldn't.
Speaker 3 (04:50):
Touch at got young age.
Speaker 2 (04:54):
Yeah, and my mom was working a this is a
barbecue by that time, angles you know, barbecue sauce all
over and Motown Philly is playing on the radio or
like you know, I he's just playing on the radio.
And still because we were in Atlanta, you know, you
didn't know what that meant in a sense because we
(05:14):
so Atlanta and were so Georgia that we were just
so you know, I didn't even leave out of here
to go out of the country probably till I was
like twenty seven, so because it was so Atlanta and
I was so busy just staying in that studio, like
I didn't go out, just stayed in the studio. So meanwhile,
that's accumulating money. And we didn't know it like that
because we never had it, so you don't know what
it's like.
Speaker 3 (05:35):
It was so fascinating, right, Like you're just accumulating. So
you're how old and you have probably two million dollars
in the bank account.
Speaker 2 (05:42):
Well it's I'm like eighteen nineteen and it's and it's
an eSchool so I still can't touch it.
Speaker 1 (05:48):
So my mom's still working.
Speaker 2 (05:50):
And by the time I made a deal to get
the money freedom, by the time I've done another Bad
Creation Boys the Men and Antoc and all their first albums,
you know, start selling like crazy. And this is when
album sales were, you know, nineteen ninety nine and twenty dollars,
so you would make it some money, you know, yeah,
even if you thought you wasn't by the time all
(06:11):
those records, so you're still making money. And so when
I first got with actually having it, like when I
remember the data it feed up, you know, I was like, wow,
I was so used to not having it that I
kind of didn't know how to how to act in
a sense, I knew, I knew I wanted to get
her out of this is a barbecue. And so one
(06:31):
of the first things I did, though, is I built
my studio. And back then, nobody would finance it for
me in Atlanta.
Speaker 1 (06:40):
They just I was too young. The music industry hadn't
hit here yet.
Speaker 2 (06:43):
They didn't understand it, and so we had to finance
it from California.
Speaker 1 (06:47):
You know. Back then the consoles were like a million dollars. Wow.
Speaker 2 (06:51):
Yeah, everything was like super through the roof. But the
studio time is even, you know, two thousand dollars a day. So,
you know, I started working and started doing all this
stuff really young. As soon as I started to get
more money, I started to put it back into the music,
stopped putting it back into signing other writers and producers,
(07:12):
getting a studio to where it worked as a as
a business on its own, and so everything started to
turn it and that's what money for it started to be,
not just earned at that point, but then generate it
and then again not understanding it because being so young
and nobody was here. Nobody was in Atlanta at the
time and understood it.
Speaker 1 (07:33):
Either.
Speaker 2 (07:33):
It wasn't any accountants, it wasn't any good money people,
you know.
Speaker 1 (07:37):
Yeah, so it was.
Speaker 3 (07:40):
And even just sort of blazing a trail like making
it happen.
Speaker 1 (07:43):
Yeah, and making all the mistakes.
Speaker 3 (07:45):
To making all the mistakes too at the same time. Yeah,
I have a couple of questions on this. This is
so fascinating. I'm actually learning something. So in the early days,
I mean, you're underage, you got you're getting checks for
like one thousand dollars. That kind of blows my because
you know, even now for kids to get a check
for a thousand dollars. But this is a couple of
(08:05):
years ago. Let's just put it into perspective for a
time frame. So now you've a mastered this money. How
did you know that you had to put this into
a like into an Esquire account? Like who was advising
you on how to save this money? Or was it
court or I'm curious about that.
Speaker 1 (08:25):
It was Well at that time, nobody was really yeah much.
Speaker 2 (08:32):
You know what, along with money comes the lawyers, and
the lawyers say, hey, you need this guy to be
your accountant and no. So that whole thing went on,
and this, uh, what happened is when the faces came
to town. By the time I was doing the TLC
records and stuff. Then that's when the money almost got
freed up for me like that. After that time, and
(08:53):
the business manager that kind of came to town with
them was managing everybody else. So it's the first time
I heard the word business manager. And you see, lawyer
said you need a business manager, and so we had
him dealing with the money from that point and so
everything was you know, and always say, this is one
of the biggest lessons I've learned because through that business.
Speaker 1 (09:14):
Manager, I end up having tax problems.
Speaker 3 (09:17):
Because here's the down ups and the downs and making
money fast.
Speaker 1 (09:24):
Yeah.
Speaker 2 (09:24):
And the thing about it is in the music business,
they don't take the taxes out on you. So if
you get a check for a million dollars, it shows
up was a million dollars and it's up to you
to pay your taxes. Right. So when we started the cycle,
and so I found out one day, I was just
kind of thinking. I was like, man, you know, I
got a range over and I got a house, but
I knew exactly how much money I got. So and
(09:47):
I start having this conversation. Actually la Reed called me
because we had to. He was all of us was
with the same person, and he goes, you know, I
don't know how much money I got, do you? Actually
I don't.
Speaker 3 (09:58):
These are great money. We have problem but they're not.
So that's why we got to talk about them.
Speaker 2 (10:04):
And because also you know, with a business manager, so
to speak, they make you, especially when you're young, they
make everything is taken care of for you.
Speaker 1 (10:11):
You know, we got to set up we got.
Speaker 3 (10:13):
Don't you worry about it, you just do you make me? Yeah,
I want you to be creative.
Speaker 1 (10:19):
I went to the I found out.
Speaker 2 (10:22):
What I did was I put another account in his
office to go through stuff and just say, hey, man,
go in there and see what's going on in the
office and let me come back and get me a
report on it.
Speaker 1 (10:30):
And so he came back.
Speaker 2 (10:31):
He said, man, I got some crazy news for you.
He said, well, you about to get hit with a
million dollar tax problem that you I arrest a million
dollars and you have half a million dollars that came
in and went out and we don't know where it went.
Speaker 1 (10:45):
Whoa you know.
Speaker 2 (10:48):
And I said, okay, well, you know this doesn't make
any sense because I went and I signed all the papers.
Anytime he said we need to sign tax papers. I
came up to the office I followed them, said are.
Speaker 1 (10:56):
You sure about this?
Speaker 2 (10:56):
He said, I'm sure. And I arrested about knocking on
your door because it's been a couple years. And I
was like, okay. So I meet with the guy the
IRS and this is one of the most valuable lessons
I think financially ever learned.
Speaker 1 (11:08):
He goes.
Speaker 2 (11:09):
I go to him and I say, man, you know
this this I got a million dollar problem going on
with penalties and interests going this guy, my business manager.
I did all the work, I found the papers, I
did everything. He said, why do I have a problem.
I don't understand.
Speaker 3 (11:24):
I pay these and where's my missing half a million dollars?
Speaker 1 (11:28):
Yeah?
Speaker 2 (11:28):
And the IRS man goes, well, we heard about this guy.
You know you're not the first one to come in here.
I said, oh okay, so I'm thinking.
Speaker 1 (11:36):
Oh yeah, here's my love.
Speaker 2 (11:39):
He goes, but let me tell you something, he said,
you guys are quick to get these guys. That's business managers.
He said, let me tell you some about the business manager.
He's like, he's not backed by the FDI, c oh
I better having a public accountant from down the street,
the CPA, he said. But the term business manager because
in the music industry back then, Burke Padel and everybody
(12:01):
you know business manager more than you heard accountant, right,
especially if you had a label of money coming in
to that degree and you have a business manager.
Speaker 3 (12:11):
Right.
Speaker 2 (12:11):
So he goes, but let me tell you something, he says,
if I operated on your arm right now, right, you
couldn't sue me under doctor laws because I'm not a doctor.
Speaker 3 (12:21):
Right right. So it's the same thing with the business manager.
Speaker 2 (12:24):
When the business manager, you can't hold him accountable because he's.
Speaker 3 (12:27):
Not he's not licensed. There's no license to pull or.
Speaker 2 (12:30):
Oh license or nothing. So he goes, so I'm gonna
do this for you. I said, Well, he's I'm gonna
stop your penalties and interest.
Speaker 1 (12:36):
That's it.
Speaker 2 (12:37):
But pay me all my money. Now, this is the
trick if obviously, if you owe him a million dollars,
you got to go make two million dollars to be broke,
right because you got to tax the money that you're making,
and then you gotta pay him down at the same time.
So I said, okay, well I just got to work
(12:59):
my way out of it.
Speaker 1 (13:00):
That stoley.
Speaker 2 (13:00):
You know, I didn't want to go bankrupt anything at
the time because I had my I had my record
company and stuff, but it was like a ton of
bricks from somebody, you know, put on your list all
your what the items out, you know, and we're gonna
give you one year.
Speaker 1 (13:14):
To fix this.
Speaker 3 (13:15):
We're gonna take them.
Speaker 1 (13:17):
We're gonna take them. Uh.
Speaker 2 (13:19):
And so I remember me and Babyface, we were all
kind of in the same kind of boat because it
was the same guy. So like Dallas, let's just right out.
We gotta ride ourselves out of it. So whatever projects,
that's kind of doing together. So we did the Voyage
the Man two album, Madonna, Bedtime Story, U TLC, Crazy
(13:40):
Sexy Cool that year. I think I did Michael Jackson.
But just I went to work and I never tell you,
I never forget. I was so happy. I got to
check that was like five hundred thousand dollars and that
was my last payment also to pay them, and I
was dead broke.
Speaker 1 (13:57):
I was so happy to be there.
Speaker 3 (13:58):
But you're back to level, you know, you're out of
the red.
Speaker 2 (14:01):
You're just like, okay, oh yes, notice lesson and you know,
and looked out for that in the future it noted
that happen again.
Speaker 3 (14:11):
Thanks for listening to today's episode. If we helped you
make your money move. Please share it with your community,
Subscribe and leave us a review on iHeartRadio and Apple podcasts.
Follow us on social media at Greenwood and visit us
at Gogreenwood dot com for more financial tips and remember,
money Movers, If this were easy, everyone would do it.
So take the lessons you've learned from this episode and
(14:33):
apply it to your life. Money Moves is an iHeart
Radio podcast powered by Greenwood Executive produced by Sunwise Media, Inc.
For more podcasts on iHeartRadio, visit the iHeartRadio app, Apple Podcasts,
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Money Moves podcast powered by Greenwood, so that you too
(14:55):
can have the keys to financial freedom you so rightly deserve.
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