Podcast Summary
The Power of Relationships in Real Estate Investing: Effectively source deals by building relationships with real estate agents, local investors, and wholesalers. Utilize tools like IFTTT to keep track of potential deals while driving.
Building and nurturing relationships is crucial in real estate investing. The Bigger Pockets Podcast, episode 232, emphasizes the importance of establishing connections with real estate agents, local investors, and wholesalers to source properties. A simple yet effective tool to help find deals is using a service like If This Then That (IFTTT) to add vacant houses to a spreadsheet while driving. This way, you can easily keep track of potential deals without having to stop and write them down. The podcast also touches on the importance of leadership and being a dad, but the main focus remains on the power of relationships in real estate investing. Overall, this episode offers valuable insights and practical tips for investors looking to expand their network and find deals.
Bigger Pockets Hiring for UI Engineer and Publishing Coordinator: Bigger Pockets is hiring for UI Engineer and Publishing Coordinator positions. UI Engineer role involves enhancing user experience with art design and programming skills. Publishing Coordinator requires entrepreneurial spirit and love for real estate.
Bigger Pockets is currently hiring for two new positions: a UI engineer and a publishing coordinator. The UI engineer role involves combining art design with programming skills to enhance the user experience on Bigger Pockets. The publishing coordinator position requires an entrepreneurial spirit and a love for real estate to oversee the growth and operation of their publishing business. Additionally, Rent to Retirement is offering opportunities to invest in new construction rental properties with no or low money down. Fundrise is providing high demand bridge financing on high quality assets with creditworthy borrowers for top real estate investors. Lastly, Steadily.com offers fast and affordable landlord insurance with next day coverage available online.
Starting with the end result in mind: To efficiently find and scale a real estate business, focus on the desired profit and exit strategy for each property and make quick decisions based on this mindset.
Nathan Brooks, a real estate investor with a decade of experience in the Kansas City market, overcame challenges and scaled his business after experiencing losses during the early 2000s downturn. Today, he's completing over 120 flips per year and runs a turnkey rental property company. To achieve this success, he focuses on finding deals efficiently. By starting with the end result in mind – the desired profit and exit strategy for each property – Nathan is able to effectively evaluate potential investments and make quick decisions. This mindset, combined with a strong work ethic and a team of dedicated employees, has allowed him to scale his business and maintain a high volume of deals. Listen to the full podcast for more insights on Nathan's journey and his strategies for finding, managing, and growing his real estate business.
Maximizing value in rental properties through strategic relationships: Investing in value-added rental properties and building strong relationships with industry professionals is key to successful real estate investing.
Successful real estate investing involves starting with a clear understanding of what type of property you're aiming for and building strong relationships with various industry professionals to source deals. For this investor, their focus is on maximizing the value of their rental properties by investing in full rehabs and targeting middle-class, white-collar neighborhoods. To find these opportunities, they prioritize relationships with real estate agents, investors, marketers, and wholesalers. These relationships are crucial because they enable the investor to quickly assess and make offers on potential deals. The key to establishing these relationships is being clear about what you're looking for and speaking the same language as your potential partners. Ultimately, by focusing on value-added properties and fostering strong relationships, this investor is able to secure the majority of their deals through these connections.
Communicating clearly with real estate agents: Be specific about your investment goals, prepare thoroughly, and follow through on commitments to build and maintain successful relationships with real estate agents.
Building a relationship with real estate agents and being specific about what you're looking for are key factors in convincing them to work with you, whether you're a seasoned investor or just starting out. For new investors, it's essential to know what you want and communicate it clearly to agents. Having a partner or doing your research can also help establish credibility. Agents appreciate investors who are prepared and ready to close deals, as opposed to wasting their time with unrealistic offers or uncertain plans. Additionally, for wholesalers, having a solid reputation and a clear buying criteria can help secure deals even when competitors offer higher prices but fail to follow through. Overall, being clear, specific, and reliable is the best way to build and maintain successful relationships with real estate agents.
Connecting with Real Estate Agents and Investors: To build successful real estate relationships, be organized, prepare buying criteria, engage in conversation, and focus on key connections. Building relationships leads to deal-sharing, collaborations, and a more efficient investing journey.
Building strong relationships with real estate agents and investors is crucial for successful real estate investing. To find and connect with potential agents, it's essential to be organized and prepared with your buying criteria. Instead of just relying on online platforms, consider making direct contact and engaging in conversation to gauge their understanding and potential compatibility. With other investors, building relationships can lead to deal-sharing and collaborations. By being transparent about your capacity and expressing interest in their deals, you can establish a mutually beneficial network. Remember, the 80/20 principle applies here, focusing on a few key relationships that consistently produce results. Building these connections takes time and effort, but the rewards can lead to a more fruitful and efficient real estate investing journey.
Finding opportunities through relationships with real estate investors: Building relationships with real estate investors, including wholesalers, can lead to new deals and expanding your pipeline. Join local groups or clubs to connect and provide value to gain access to a steady stream of opportunities.
Building relationships with real estate investors, including wholesalers, can lead to mutually beneficial opportunities. By helping investors move deals that they may not have the capacity or desire to work on themselves, you can gain access to new deals and expand your own pipeline. To find these opportunities, consider joining local real estate groups or clubs, or even starting your own if none exist in your area. Remember, building relationships is key, so be honest, speedy, and thorough in your dealings. By providing value to others, you can become a trusted resource and potentially gain access to a steady stream of real estate deals.
Mitigating Risks with Wholesalers: Protect Yourself: Understand contracts, ensure trusted third party, ask questions, and prioritize education to minimize risks with wholesalers.
As a new investor, it's crucial to mitigate risks when dealing with wholesalers by understanding the contract, ensuring the property is under contract with a trusted third party, and being aware of potential red flags. Don't assume a wholesaler's deal is legitimate without doing your due diligence. Read the contract carefully, ask the right questions, and protect your earnest money by having it go to a title company or attorney. Wholesalers can obtain deals through various means, including direct mail marketing and building relationships with sellers. Remember, always prioritize your education and seek guidance from experienced investors or professionals to minimize risks and maximize success.
Acquiring Leads through Marketing Companies: Wholesalers can acquire leads from marketing companies by understanding partnership deals, knowing who puts properties under contract, and utilizing software like AppFolio and Podio for property management and business operations.
Wholesalers can acquire leads through various methods such as door knocking, direct mail, pay-per-click advertising, and relationships with marketing companies. These marketing companies often produce leads in other markets and sell them to wholesalers as partnerships. It's crucial to understand the specifics of these deals, including who is putting the properties under contract and what the opportunities are for the wholesaler. Additionally, wholesalers can sell their properties to turnkey providers and manage the properties for them, or they can sell to end buyers on the MLS. Wholesalers use software like AppFolio for property management and Podio for running their entire business, which offers open architecture for building systems, automations, and workflows.
Overcoming initial challenges with Podio leads to valuable insights: Customizing Podio for specific real estate needs leads to valuable insights and transparency, essential for building trust with investors. Vertical integration and reliable contractors are crucial for maintaining consistent quality and control.
Committing to understanding and utilizing a system to its full potential, despite initial challenges, can lead to significant benefits. The speakers discussed their experience with Podio, which they found to be difficult at first but eventually customized to meet their specific needs. They now have dashboards providing valuable insights into their real estate business. Additionally, they commended Nathan Brooks for his transparency and legitimacy in reporting numbers, including capital expenditures and repairs. For turnkey providers, this level of transparency is crucial in building trust with investors. Furthermore, the importance of vertical integration in maintaining consistent quality and control over multiple projects was highlighted. Finding reliable and dedicated contractors is essential for this approach, making it a significant challenge but a worthwhile investment.
Clear communication and expectations save time and resources: Communicate project expectations clearly to all team members, provide necessary resources, and build strong relationships to foster efficient and effective project management.
Effective communication and clear expectations are essential for successful project completion, whether you're managing a small team or a large company. The speaker emphasized the importance of making project expectations clear to all team members, from the lowest to the highest level, and providing them with the necessary resources and guidelines to execute their tasks. This approach not only saves time and resources but also fosters better relationships with suppliers and vendors. Additionally, the speaker emphasized the importance of taking responsibility for leadership and instilling a sense of ownership and collaboration among team members. By establishing clear communication channels, setting expectations, and building strong relationships, project management becomes more efficient and effective.
Leadership involves taking responsibility and implementing clear processes: Effective leaders take ownership of their team's outcomes and establish clear systems to prevent issues and ensure smooth operations
Effective leadership involves taking responsibility for the outcomes of your team and implementing clear processes to achieve desired results. In the discussion, Brandon shared an experience of a messy bookkeeping situation in a project, which led to frustration. He realized that as a leader, it was his responsibility to ensure that his team had clear instructions and processes in place to avoid such issues. This concept of taking ownership of leadership and implementing systems was further emphasized by the use of a issues list and quarterly rocks in their team, as discussed in the book "Traction." By allowing team members to identify and propose solutions to issues, problems are addressed openly and proactively, preventing frustration and ensuring smooth operations.
Leadership involves owning problems and providing clear instructions: Effective leaders separate emotion from situations, communicate constructively, provide opportunities for learning, and empower team members to make decisions.
Effective leadership involves taking ownership of problems and providing clear instructions for your team. When things go wrong, it's important to separate emotion from the situation and communicate effectively with your team. Provide them with the opportunity to learn and improve through constructive feedback and training. Navy SEALs, as discussed in the book "Extreme Ownership," practice this approach by conducting debriefs after missions to identify what went well and what needs improvement. This decentralized command approach empowers team members to make decisions and take action while providing guidance and support. Ultimately, this leads to a more engaged and effective team.
Focus on personal growth for effective leadership: Successful leaders prioritize personal development through regular exercise, continuous learning, and putting oneself in uncomfortable situations to grow, enabling them to better understand and empathize with others and effectively help and support them in problem-solving.
Effective leadership starts with personal growth. As shared in the conversation, a successful businessman named Darren emphasized the importance of focusing on one's inner self before attempting to help others. This means taking care of physical health through regular exercise and proper nutrition, continuously learning, and putting oneself in uncomfortable situations to grow. By prioritizing personal development, leaders can better understand and empathize with the challenges of those around them, enabling them to effectively help and support others in solving problems. Ultimately, by focusing on personal growth, leaders can become more effective in their roles and make a positive impact on their businesses, families, and lives.
Exploring alternative strategies for real estate investment loans: Consider finding a mentor or partner, learning no or low money down strategies, or improving financial situation before applying for a loan. Honesty and financial responsibility are crucial.
If you're having trouble qualifying for a real estate investment loan due to lack of sufficient down payment or income, consider alternative strategies such as finding a mentor or partner, learning no or low money down investment strategies, or focusing on improving your financial situation before applying for a loan. The importance of honesty and financial responsibility was also emphasized, as lying on a mortgage application is not only ethically wrong but also potentially illegal. Additionally, it was suggested that having unnecessary expenses, like high car payments, can hinder your ability to save for a down payment or qualify for a loan.
Saving Money in Real Estate Investing: Frugality vs. Professional Management: Being frugal can help get first deals off the ground, but managing properties from out of state isn't recommended. Instead, find a good property manager or partner to ensure proper management and maintenance. Consider the long-term costs and potential issues when choosing property investments.
Starting out in real estate investing, being frugal and smart with your money can help you get your first deals off the ground. This can mean sacrificing comforts like a new car, but it allows you to save money and put it towards your investments. However, when it comes to managing properties from out of state, it's generally not recommended. While it may seem like self-management could save you money, it's important to consider the long-term costs and potential headaches. Instead, consider finding a great property manager or partner on the ground to ensure the property is well-managed and maintained. Additionally, it's crucial to carefully consider the costs and potential issues that come with different price points in the market. For cash flow investors, it may be worth paying more for a turnkey property to avoid the costs and time commitment of repairs. Ultimately, it's important to have a clear understanding of your financial situation and goals when making real estate investment decisions.
Protecting Valuable Items During Home Renovations: Communicate, negotiate, and collaborate to prevent damage to valuable items during home renovations. Both property owners and contractors have a role to play in respecting belongings and finding fair outcomes.
Personal responsibility is crucial in any situation, especially when it comes to protecting valuable items during home renovations. The owner of a property bears the responsibility for ensuring their belongings are not in harm's way during construction. However, contractors also have a role to play in respecting the property and its belongings. In the case of a family heirloom being damaged, communication and negotiation are key to finding a resolution. The value of an item to its owner may not be reflected in its monetary worth, and both parties should work together to find a fair outcome. Ultimately, it's essential to take measures to prevent damage to valuable items and to approach any issues with a mindset of collaboration and compromise.
Building Stronger Business Relationships Through Conflict: Conflicts in business relationships can lead to stronger bonds when approached with a long-term perspective. Find common ground, collaborate on future deals, maintain open communication, expand networks, and engage in activities outside of work.
In business relationships, it's important to consider the long-term implications of conflicts and how they can be used to build stronger relationships. This can involve finding common ground, looking for opportunities to collaborate on future deals, and maintaining open communication. Additionally, having a strong network and being open to new ideas and experiences can lead to valuable resources and opportunities. For instance, recommending and reading recommended books, such as "Extreme Ownership" and "E Myth," can provide valuable insights and help refine business strategies. Lastly, engaging in activities outside of work, like jujitsu and kickboxing, can provide a healthy outlet for stress and help build camaraderie.
Starting Out in Real Estate: Dedication and Perseverance: Successful real estate investors commit to their goals, learn the necessary skills, and overcome challenges through dedication and perseverance. Find deals through driving for dollars, direct mail, and networking, and focus on leadership and scaling up your business.
Successful real estate investors are committed to their goals and put in the necessary effort and learning to achieve them. Nathan Brooks, a guest on the show, shared his experience of starting out in real estate and overcoming challenges through dedication and perseverance. He also discussed his methods for finding deals, including driving for dollars, direct mail, and networking. Additionally, Nathan mentioned the importance of leadership and scaling up a business. For those interested in learning more about Nathan and his business, they can find him on BiggerPockets, bridgeturnkey.com, and facebook.com/fixfliprentkc. Josh also shared his plans for an RV adventure with his family this summer, and the discussion ended with some travel recommendations.
Random Questions and Answers: The hosts engaged in a fun segment answering unrelated questions to build a stronger connection and reveal personal quirks.
Learning from this episode of the Bigger Pockets podcast is that the hosts, Swann and Wait, engaged in a fun and random segment called "Random 5" or "Random 6," where they answer unrelated questions to get to know each other better. One of the questions asked was about sports preference, with Swann expressing his love for baseball and football, while Wait showed confusion about the concept of a team. Another question asked about having a landline telephone, with Swann expressing his dislike and preference for being phone-free, while Wait admitted to still having one. They also discussed hypothetical scenarios, such as escaping from prison, and shared their favorite Girl Scout cookies. Despite their differences, they found common ground in their love for the book "The Count of Monte Cristo." Overall, this segment provided a lighthearted and entertaining end to the podcast episode.
8 words: Unexpected friendship leads to real estate insights: Dedication and the right agent are crucial for financial freedom in real estate investing, despite unexpected friendships or connections.
Having famous friends or connections can be surprising and beneficial, but the real key to financial freedom is time and dedication to the real estate market. The speaker shared a personal story about discovering a friend's fame and how it came as a surprise. However, he emphasized that having famous friends doesn't guarantee success in real estate investing. Instead, finding an investor-friendly agent can help navigate the market and make informed decisions. The speaker also reminded listeners that investing in real estate involves risk and to consult with qualified advisors before making any investment decisions. With the right agent and dedication, one can achieve financial freedom through real estate investing.