Podcast Summary
Learning from successful real estate investors on the Bigger Pockets podcast: Listeners can gain valuable insights and practical tips from successful real estate investors like Chris Clothier through the Bigger Pockets podcast, including no money down strategies and attending industry events like Inman Connect.
The Bigger Pockets podcast, hosted by Josh Dorkin and Brandon Turner, has become the top real estate podcast on iTunes with the most ratings and reviews. Brandon shared his quick tip about listening to podcasts at faster speeds on iPhones to get more content in less time. They then welcomed their guest, Chris Clothier, a successful real estate investor from Memphis, Tennessee, who manages over $100 million in assets and is a thought leader on building scalable real estate businesses. He shared insights on no money down strategies, including buying turnkey rental properties through rent-to-retirement programs. Brandon also mentioned his upcoming attendance at the Inman Connect conference in San Francisco and invited listeners to connect with him there. The podcast offers valuable information and practical tips for real estate investors, making it a must-listen for those interested in the industry.
Investing in Real Estate with Little to No Money Down: Leverage companies, loans, income, and partnerships to invest in real estate with minimal upfront capital
There are various ways to invest in real estate with little to no money down, such as through companies like Rental Retirement that offer discounted new construction properties and low-interest investor loans. Another option is to leverage the income from one property to purchase another, as Chris did in his first real estate deal. Partnering with a trusted multifamily syndicator like BAM Capital can also provide opportunities for passive income and long-term appreciation. Ultimately, growing a successful real estate portfolio requires careful planning, research, and the ability to adapt to changing market conditions.
Lessons learned from renting to students in Memphis: Finding qualified tenants and working with a reliable team are crucial for successful real estate investing. Adaptability and a willingness to learn are essential when unexpected situations arise.
Successful real estate investing involves careful consideration and planning, even in unexpected situations. The speaker shared his experience of renting out a property in Memphis to students, which didn't go as smoothly as he had hoped. However, he learned valuable lessons and applied them when he started investing in fix and flips in Denver. He emphasized the importance of finding qualified tenants and working with a reliable team, especially when it comes to renovations. The speaker also mentioned that he initially had a romanticized view of real estate investing but quickly learned that there's more to it than meets the eye. Overall, his experiences highlight the importance of being prepared, adaptable, and willing to learn in the world of real estate investing.
Finding a complementary real estate investing partner: Successful partnerships require partners with unique skills to complement each other. Seize opportunities, build relationships, and leverage resources to grow a real estate investing business.
Successful real estate investing partnerships require complementary skills. If both partners bring similar strengths or weaknesses to the table, the partnership may struggle. It's essential to find a partner who can complement your own skills, either by highlighting your weaknesses or bringing out your strengths. The speaker learned this lesson the hard way when he gave too much credit to an inexperienced partner, leading to poor decisions. Instead, focus on finding a partner who brings something unique to the table, ensuring a balanced and effective partnership. Furthermore, the speaker's success story illustrates how being raised in an entrepreneurial family and recognizing opportunities can lead to significant growth. Starting with flipping houses in Denver, he eventually founded a turnkey properties business in Memphis, thanks to his father's encouragement and connections. This experience demonstrates the importance of seizing opportunities, building relationships, and leveraging resources to grow a real estate investing business.
Forming relationships and networking in local community: Engaging in local networking events and sharing your story can lead to valuable connections and opportunities for growth
Building a scalable real estate business starts with forming relationships and networking in your local community. This was the case for one successful business, which began when individuals approached them to manage their property investments. The founders of this business prioritized hiring people and building a team before ramping up marketing efforts, as they already had a strong local presence through their involvement in real estate investor associations. They even went a step further and started their own RIA to expand their reach and share their expertise with others. The key takeaway here is that effective marketing doesn't have to be expensive or time-consuming. Engaging in local networking events and simply sharing your story with others can lead to valuable connections and opportunities for growth. So, don't underestimate the power of building relationships and creating your own local community to help scale your real estate business.
Hire an assistant or outsource tasks for growth: Focus on strengths, hire help for tasks, and delegate to scale and improve business operations
When starting a business, especially in real estate, it's important to focus on your strengths and outsource tasks that you don't enjoy or aren't good at. This can help free up time and energy to focus on growth. The first hire for many businesses is often an assistant or someone to help with tracking and reporting. This can provide valuable insights and help improve business operations. The right time to make this hire can vary, but it often comes after a certain level of success has been achieved and a physical workspace has been established. By delegating tasks and bringing in help, businesses can scale and continue to grow.
Bringing in quality people is crucial for scaling a business: Having a well-thought-out business plan is essential for beginners to define their vision, goals, and necessary hires for achieving profitability and scalability
When scaling a business, it's important to bring in quality people even if they may eventually leave to start their own companies. Hiring experienced individuals can help figure out the next steps and grow the business. However, for those just starting out, having a well-thought-out business plan is crucial. It serves as a roadmap to define the ultimate vision, goals, and necessary hires. While experienced business owners might not need a formal business plan, it's essential for beginners to lay out the numbers and plan for hiring to achieve profitability and scalability.
Building a debt-free team and growing a business: Surround yourself with experienced people, be confident, have capital, ensure quality product/service, and don't let guilt hold you back.
Starting a business without taking on debt and paying employees only upon deal closure can be an effective way to build a team and grow a business under the right circumstances. This approach requires surrounding yourself with experienced business people, being confident in your abilities, and being open and honest with your team about compensation. However, it's important to have capital in the business before hiring and ensuring a top-quality product or service to justify higher prices in the market. Additionally, don't let emotions like guilt hold you back from making the most of market opportunities and building a scalable business.
Identify core competency and focus on it: To grow a business, focus on core competency, surround yourself with good advisors, delegate tasks, and utilize supportive tools.
As a business owner or investor, it's crucial to identify your core competency and focus on it to offer high-quality products or services. Surround yourself with good advisors and take time to step back from the day-to-day activities to work on the business, asking questions like what to delegate and what to focus on. By doing so, you'll be able to maximize your efforts and efficiency, and ultimately grow your business. Additionally, having the right support systems, like Redfin for real estate and Steadily for insurance, can help streamline processes and save time and money.
Steadily.com's unique approach to filling vacancies: Steadily.com's system encourages competition among rental agents, maintaining a low vacancy rate through a unique sign system
Steadily.com offers the best coverage at competitive prices for various types of rental properties, saving time and money. Meanwhile, the Walker webcast, hosted by Willie Walker of Walker and Dunlop, provides valuable insights into commercial real estate, entrepreneurship, leadership, and the economy. Regarding property management, Steadily's company manages over 1800 units in two cities with a unique approach to filling vacancies. They use four rental signs per property, each with a distinct number, and the rental agent with the highest number of rentals gets the prime spot. This system encourages competition and ensures that agents answer their phones to secure rentals, maintaining an average vacancy rate of around 4%.
Dedicated rental agents on the streets: Our approach prioritizes efficiency through dedicated rental agents, weekly goals, and substantial rewards, leading to high traffic areas and effective property management.
Our real estate business prioritizes efficiency and hustle in renting properties. We don't rely on a single branded sign or call number, but instead have our rental agents out on the streets every day. They set weekly goals and are encouraged to work hard, with the potential for substantial rewards. Our concentrated investment areas lead to high street traffic and a large number of properties available for rent, which we manage efficiently by directing potential renters to suitable options. Our accountability and training ensure clear communication and avoid potential confusion. Overall, our approach is about creating a team of dedicated, hardworking individuals who can effectively meet the demand for rental properties.
Starting a Real Estate Business with Excellent Customer Service: Answering the phone professionally, creating a positive first impression, and carefully considering tenants' job history and industry can set a real estate business apart and ensure positive experiences for both tenants and property owners.
Providing excellent customer service, starting with answering the phone professionally, can set a real estate business apart from competitors. This includes having a well-branded and appealing presence, as well as carefully considering potential tenants to ensure a good fit for both parties. The speaker shares his experience of starting a property management company, Premier Property Management, and emphasizes the importance of a positive first impression, even in something as simple as answering the phone. He also discusses the importance of considering a tenant's job history and industry when evaluating their ability to pay rent reliably. Ultimately, the goal is to create a positive and professional experience for both tenants and property owners.
Prioritizing Tenant Financial Stability and Success: Focus on property management companies with business experience, infrastructure, and responsiveness to ensure effective communication and efficient management, contributing to long-term business growth and tenant success.
When it comes to property management, considering the tenants' financial stability and setting them up for success is crucial for both the tenant and the investor. This not only helps ensure the property manager is doing their job effectively but also contributes to the long-term growth of the business. For investors looking to hire a property management company, it's essential to focus on their business experience, infrastructure, and responsiveness. These factors can help investors identify professional and reliable property management companies that prioritize communication and efficient management. By asking potential property managers about their staff size, vacancy rates, and responsiveness, investors can make informed decisions and avoid hiring underperforming companies. Ultimately, the goal is to find a property management company that prioritizes the success of both the tenants and the investors.
Assessing a property management company's performance: When selecting a property management company, consider their average length of stay, number of properties under management, and number of rentals from the previous year to gauge their performance and service quality. Additionally, evaluate their tenant empathy and responsiveness, staff size and roles, and policies on Section 8 housing and pets.
When evaluating a property management company, asking about their average length of stay, number of properties under management, and number of rentals from the previous year can provide valuable insights into their performance and service quality. These metrics can help determine if they have a high or low vacancy rate, which is essential for maintaining a stable income stream for investors. Additionally, assessing their empathy towards tenants and responsiveness to their needs is crucial for ensuring a positive tenant experience and long-term occupancy. Other important factors to consider include staff size, roles, and job descriptions, as well as their policies on Section 8 housing and renting to tenants with pets. Ultimately, a good property management company should prioritize maintaining positive relationships with tenants and ensuring their properties are well-maintained and occupied.
Effective communication and relationship building with tenants: Focus on legal processes, train tenants, understand economic factors, and prioritize communication for successful real estate investing.
Effective communication and relationship building with tenants are crucial in managing a rental property. The speaker emphasizes the importance of following legal processes when dealing with tenants who are late on rent or violate lease agreements. He also suggests training tenants on the property management process before they move in to establish respect and open communication. When it comes to investing in real estate, focusing on the economic side of a city, such as job growth and industries, can be a good indicator for potential success. For those starting out, seeking mentorship from experienced investors is a valuable way to gain knowledge and experience in the field. It's possible to invest in a rental property before purchasing a primary residence, but it's important to consider the difference between investing from a business and personal standpoint. Communication and relationship building with tenants, as well as understanding the economic factors of a potential investment location, are key components of successful real estate investing.
Choosing Neutral Colors for Home Exteriors and Investing in High-Rent Neighborhoods: Consider neutral colors for home exteriors for contrast and invest in high-rent neighborhoods for potential returns. If owning, consider renting it out for passive income or to cover expenses.
When it comes to choosing colors for your home's exterior, neutral tans and similar shades work well and provide good contrast. When deciding which neighborhoods to invest in, look for areas with rent rates above the median. If you own a house and want to move, consider renting it out if the rent covers expenses or generates income. Successful real estate investors surround themselves with the right people and a bit of luck. A favorite real estate book recommendation is "Make It Big" by Frank McKinney, and a favorite non-real estate business book is "Rework." Chris enjoys soccer, coaching, and spending time with his family outside of real estate.
Surround yourself with the right people: Focus on both real estate and business sides, connect with like-minded individuals within the BiggerPockets community, and work hard to create your own luck.
The people you surround yourself with significantly impact your success in real estate investing. As Chris Clothier, from Memphis Invest and Premier Property Management, shared during the interview on the Bigger Pockets Podcast, having the right team around you can help you seize opportunities when luck presents itself. The quote "The harder I work, the luckier I get" highlights this idea. Chris emphasized the importance of focusing on both the real estate and business sides of things to build a scalable business. Connecting with like-minded individuals within the BiggerPockets community can lead to valuable partnerships and learning opportunities. So, surround yourself with the right people, work hard, and create your own luck.
