Podcast Summary
Side Hustle Real Estate Investing: Goals, Delegation, and Team Building: Identify goals and criteria, delegate tasks, build a team, and consider hiring a virtual assistant for side hustle real estate investing success.
When it comes to side hustle real estate investing, it's essential to identify your goals and criteria, delegate tasks, and build the right team. Our guest, Seth Mosley, shared his experience and introduced the idea of hiring a virtual assistant, which can be a game-changer. The show was filled with entertaining and informative discussions, including the importance of an acrostic for side hustle success. Additionally, Josh and Brandon shared their personal experiences, such as camping in an RV and completing a bathroom remodel. Overall, this episode provided valuable insights for anyone looking to make real estate investing work as a side hustle.
Exploring Real Estate on Instagram: Connect, Showcase, and Generate Leads: Instagram offers a platform for real estate professionals to connect, showcase projects, and generate leads through services like DealMachine and Rent to Retirement. Attend local networking events to expand your network.
Social media, specifically Instagram, is a powerful tool for connecting with others in the real estate industry and showcasing projects. Users can follow accounts like Josh's for RV inspiration, and their own for bathroom remodels or birthdays. Instagram is popular due to its lack of political arguments compared to Facebook. Additionally, services like DealMachine offer unlimited access to contact information for lead generation, and companies like Rent to Retirement allow for no money down investment in turnkey rental properties. Integra Development Group simplifies investing with their rent to own strategy and new construction single family homes. Lastly, attending local real estate networking events, which can be found on the BiggerPockets events page, is a great way to connect with others in the industry.
Leveraging Networking and Creating Your Own Events: Reach out to potential connections, even if ignored initially, as valuable friendships and opportunities may arise.
Seth Mosley, a Grammy-winning producer, songwriter, and singer, emphasizes the importance of networking and creating your own events, even if there are none in your area. He shared his experience of reaching out to Josh Dorkin and Brandon Turner despite being ignored at first, leading to valuable friendships and opportunities. Before real estate investing, Seth had a successful career as a musician, touring extensively and eventually transitioning to working behind the scenes in the industry. He and his wife then started investing in real estate as a side hustle.
From Music Producer to Real Estate Investor: Success in one industry doesn't guarantee financial success. Diversify your income sources and consider real estate for financial stability and security.
Seth, a successful music producer, turned to real estate as a side hustle to secure financial stability and cash flow. He started with buying and renting out properties, and was later inspired by books like "Rich Dad, Poor Dad" and the real estate platform "BiggerPockets." Seth's success in the music industry gave him the means to invest in real estate, but his motivation was the desire for control over his finances and the security of having a consistent income source beyond his music career. He shares this philosophy with others, encouraging them to pursue their passions while also building wealth through real estate. Despite his impressive accomplishments in the music industry, Seth sees real estate as an essential part of his financial plan.
Music Industry Professionals Diversify into Real Estate for Financial Security: Music industry professionals seek real estate's tax advantages and cash flow. Starting with residential properties, they consider long-term potential and look past initial costs to find profitable investments in growing markets, despite challenges in finding deals.
Successful individuals in the music industry, like the person speaking in this discussion, often look to real estate as a way to diversify their income and secure their financial future. They are drawn to the tax advantages and cash flow that real estate provides. The speaker started with residential real estate, having turned their first home into a rental property. They advise those looking to do the same to consider the long-term cash flow potential of a property, as their first investments may not have met the traditional 1% rule but could still provide significant appreciation. The real estate market in cities like Nashville, Denver, and Austin has seen rapid growth in recent years, making it challenging to find good deals. The speaker also mentions their lack of interest in commercial real estate due to the impact of e-commerce on physical retailers.
Viewing real estate as cash flow streams and using tax-deferred exchanges: Maintaining emotional distance from investments, focusing on cash flow, and utilizing tax-deferred exchanges like 1031 can help grow a real estate portfolio without immediate tax liabilities. Multi-unit properties offer higher cash flow potential.
Having a good emotional distance from real estate investments and viewing them as cash flow streams can make it easier to sell and upgrade to better opportunities. The use of tax-deferred exchanges like 1031 can help investors grow their portfolio without paying immediate taxes on gains. The speaker currently focuses on multi-unit properties for the higher cash flow potential and has 20 doors in total, mostly in Tennessee markets like Nashville, Chattanooga, and Memphis. Some properties were purchased through turnkey companies for a hands-off approach, while others came from building relationships. Virtual assistants were also used to analyze deals and find opportunities in new markets.
Outsourcing real estate investment: Working with a virtual assistant in another country to find potential investment properties can be successful. Start with a property manager for day-to-day tasks and consider starting an investment club for more opportunities and a stronger network.
Outsourcing real estate is a viable solution for those who lack the time or resources to manage their investments personally. Seth shared his experience of working with a virtual assistant in Malaysia to find and vet potential investment properties. He sent the assistant his investment criteria and had them gather information on the properties, which were then compiled into a Google Sheet and sent to Seth weekly. Once a property met his criteria, Seth would send it to his broker and property manager in Chattanooga for further inspection. This method led to a successful investment. For those just starting out, Seth recommends starting with a property manager as they will be the ones dealing with the property day-to-day. He also shared a cautionary tale about not bringing in a property manager early enough in the process. Additionally, Seth mentioned starting an investment club as a way to pool resources and knowledge with other investors in the area. This could lead to more opportunities and a stronger network within the real estate community.
Starting a Real Estate Networking Group: Education and Connections: Creating a real estate networking group focused on education and connections can lead to significant growth for your business. Start small, use free resources, and provide value to members to build a strong and supportive community.
Starting your own real estate networking group can be a powerful way to build relationships, trust, and connections within your local market. The speaker shared his personal experience of starting a group in Nashville, which focused on education and networking rather than just deal-making. This approach led to significant growth for both him and his partner's businesses. He emphasized that even if there are existing groups in your area, starting your own can still be beneficial. The key is to just get started, even if it means starting small and simple, and using free resources like Facebook and BiggerPockets to promote your events. By providing value to your members through education and networking opportunities, you can create a strong and supportive community that will help you grow both personally and professionally in the real estate industry.
Maximizing Time and Resources in Part-Time Real Estate Investing: Set up efficient processes, delegate tasks, prioritize high return investments, hire a virtual assistant for deal sourcing, and establish personal investment philosophy.
Successful part-time real estate investing involves setting up efficient processes and delegating tasks to maximize your time and resources. The investor in this conversation emphasizes a 15% cash on cash return as a key criterion, but also values the tax benefits of buying more expensive properties for depreciation. They prioritize investing in larger markets with good teams and stable fundamentals. Hiring a virtual assistant to handle the initial legwork of deal sourcing and analysis can free up your time to focus on making offers and closing deals. It's important to establish a personal investment philosophy and criteria before starting your side hustle. By setting up systems and outsourcing tasks, you can effectively balance your full-time job or business with your real estate investing pursuits.
Maximizing Side Hustle Success: Set clear goals, delegate tasks, organize finances, hire professionals, invest in quality hires, hire slowly and fire fast, use virtual assistants
Running a side hustle effectively involves setting clear goals and criteria, delegating tasks, and making things easy for yourself. This includes having all necessary financial documents organized and accessible, as well as hiring professionals like bookkeepers and property managers to handle complex tasks. While it may be tempting to look for the cheapest options, it's important to invest in quality hires who will ultimately save you time and money. Remember, hire slow and fire fast if necessary. Additionally, consider using virtual assistants to help manage tasks and filter through potential hires. By following these principles, you can streamline your side hustle and maximize your success.
Focus on one asset class, communicate with property managers, establish proper legal structures, and prioritize time and execution.: To succeed in real estate investing, focus on one asset class, maintain communication, set up legal structures, and manage time effectively. Consult professionals for legal advice and take action.
Successful real estate investing involves focusing on one asset class, maintaining regular communication with property managers, establishing proper legal structures, and prioritizing time and execution. It's essential to manage distractions and avoid using legal considerations as an excuse for inaction. Regular maintenance and checklists can help ensure the success of your side hustle. The "higher, identify, delegate, easier, legal, execute" (H.I.D.E.L.L.E.X) acrostic can serve as a helpful guide for implementing these principles. Remember, the calendar is a powerful tool for demonstrating your commitment to real estate investing. Don't let uncertainty about legal structures prevent you from getting started – consult with professionals to make informed decisions and take action.
Lesson from a costly mistake in real estate investing: Investing in low-end properties without proper checks or a property manager can lead to significant losses. Stay committed to a single investing strategy and put in the necessary effort to succeed.
Experience is a valuable teacher in real estate investing. The speaker shared a personal story about buying an 8-unit property without properly checking it out beforehand, leading to significant trouble and financial loss. He emphasized the importance of having a property manager or extensive knowledge and resources for low-end properties. Looking ahead, the speaker plans to focus on syndication and potentially mobile home parks as the next stages of his investing journey. Overall, the lesson is to stay committed to a single investing strategy and put in the necessary time and effort to succeed.
Exploring Alternative Real Estate Investment Strategies: Consider alternative real estate investment methods like passive investing or tax strategies, and evaluate personal investment philosophies to optimize portfolio.
There are various ways to invest in real estate beyond being a landlord, such as passive investing through platforms like Connect Invest or utilizing tax strategies like 1031 exchanges with companies like First American Exchange. CEO Willie Walker, an expert in commercial real estate, frequently shares insights on these topics and more through his webcast. Additionally, considering personal investment philosophies and asking if you would buy a property again based on current knowledge can help determine whether to sell or hold onto rental properties.
Prioritizing debt repayment is crucial for short-term financial health: Focus on repaying high-interest debt before investing in real estate, build a strong team, and establish clear investment criteria to mitigate risks.
While cash flow and appreciation are important factors in real estate investing, prioritizing debt repayment, especially high-interest credit card debt, can be a wiser financial decision in the short term. The speaker also emphasized the importance of building a strong team and focusing on criteria before making significant investments. When considering the size of an investment, it's essential to assess one's risk tolerance and financial situation. Starting small is not a requirement, but taking on too much too soon could be detrimental if the investment goes south. The speaker also shared that they wish they had started building their team and establishing clear investment criteria earlier in their investing journey.
Surround yourself with the right people for success in real estate: The people you surround yourself with greatly impact your success in real estate. Be intentional about building a strong, trustworthy team and maintaining a good work-life balance.
According to Seth, the key to success in real estate investing is surrounding yourself with the right people. He emphasized that your team and the people you associate with greatly impact your success in this industry. He mentioned that you are the average of the five people you spend the most time with, and the importance of having trustworthy and truthful individuals in your circle cannot be overstated. Additionally, Seth shared that he learned valuable lessons from his past investments, even if he wouldn't make the same choices today. He also highlighted the importance of having hobbies and a good work-life balance, as seen in his love for music and family. Overall, Seth's message emphasizes the importance of people and relationships in both personal and professional success.
Adapting to market conditions and letting go of past investments: Be open to selling underperforming properties and pricing aggressively to succeed in today's market.
Being open to letting go of past investments and being aggressive with pricing in today's market can lead to successful sales. Seth Mosley shared his advice on decluttering one's portfolio by getting rid of properties that one wouldn't buy again. The speaker expressed excitement about selling a house quickly in a hot market but also acknowledged the importance of being realistic with pricing to attract buyers. He advised his parents, who were having trouble selling a property, to be more aggressive with their price to increase chances of a sale. The conversation highlighted the importance of adapting to market conditions and being willing to make adjustments to achieve desired results.
Insights from Real Estate Expert Seth Williams: Stay focused on goals despite distractions, learn from experts, and use BiggerPockets Agent Finder to connect with investor-friendly agents.
Real estate investing is a journey that requires time and dedication, and it's important to learn from experts in the field. During an episode of the BiggerPockets podcast, guest Seth Williams shared insights into his background and current interests. While discussing random questions, Seth revealed his childhood dream of becoming an Ohio State football player, his desire to read Elon Musk's mind, and his lack of knowledge of magic tricks. The conversation also touched on his current viewing habits, which consist of watching Trolls with his young daughter, and his favorite board game, Ticket to Ride. Although the conversation was lighthearted, it underscored the importance of staying focused on goals, even when faced with distractions. For those interested in real estate investing, finding an experienced and investor-friendly agent can help navigate the market and make informed decisions. With BiggerPockets Agent Finder, investors can easily connect with local experts who can provide valuable insights and guidance.
Find investor-friendly agents on BiggerPockets.com/deals, but approach investing with caution: Use BiggerPockets.com/deals to connect with agents, but remember investing involves risk and consult advisors before making decisions
BiggerPockets.com/deals is a valuable resource for those looking to invest in real estate and get closer to financial freedom. Here, you can find investor-friendly agents to help you get started on your real estate journey. However, it's important to remember that investing in real estate, or any asset, involves risk. Past performance is not indicative of future results, and it's crucial to consult with qualified advisors before making any investment decisions. Use only risk capital you can afford to lose. The information presented in this podcast is for informational purposes only and should not be taken as financial advice. BiggerPockets LLC disclaims all liability for any damages arising from reliance upon the information presented. In essence, while BiggerPockets.com/deals can help you get started on your real estate investment journey, it's essential to approach investing with caution and do your due diligence.
