Podcast Summary
Networking leads to increased success in real estate investing: Identifying and building relationships with talented individuals in your network can significantly increase your income in real estate investing. Reach out to the highest talented people you know to expand your network and bring new talent into your organization.
Building strong relationships and networking can significantly increase one's success in real estate investing. As David Green shared in this episode, he went from 24 transactions to 84 transactions, which led him to increase his income from 150,000 to 500,000 a year. This success came from identifying talented individuals in his network and building connections with them. The quick tip given in this episode also emphasizes the importance of networking and encourages listeners to reach out to the highest talented people they know to expand their network and bring new talent into their organization. Success in real estate investing is not only about what you know, but also who you know. Therefore, it's essential to start building those relationships and networking immediately to define whether or not you succeed or fail in the future.
Turnkey rental properties and investment strategies with Zack of Rental Retirement and Ben Kinney: Zack provides discounted turnkey rental properties and investor loans for little to no money down. Ben shares his journey from a challenging past to real estate success and emphasizes wise investment decisions and long-term goals. Both discuss the use of 1031 exchanges to defer capital gains taxes.
Zack of Rental Retirement offers turnkey rental properties for little to no money down through discounted prices and low-interest investor loans. Another key takeaway is the use of 1031 exchanges to defer capital gains taxes when selling investment properties and upgrading to larger ones, with the help of First American Exchange Company. Ben Kinney, today's guest, shares his journey from a difficult childhood to becoming a successful real estate agent, investor, and business owner. He emphasizes the importance of deciding on investment opportunities wisely and sticking to long-term goals. Additionally, he mentions his investment strategies in various areas and his approach to overcoming the shiny object syndrome. To learn more about these topics and Ben's story, listen to the full interview.
From poverty to real estate investing: Overcame hardships to pursue real estate investing, learned valuable skills, and built wealth through determination and hard work.
Despite facing hardships such as poverty, living in a small rented cabin without power or indoor water, and witnessing drug use and abuse in her family, the speaker found motivation to break the cycle and chase financial success. She started with a low-paying job as a cable installer, but was intrigued by a woman who owned a duplex and lived for free. This idea of owning real estate and living for free sparked her interest in real estate investing. She persisted in her pursuit, learning valuable skills like resilience and the ability to handle rejection. Through determination and hard work, she was able to buy her first duplex and start building wealth.
Learning from successful people: Success often comes from modeling strategies and practices of those who have already achieved it. Simplify and adopt proven systems to make the ordinary extraordinary.
Successful people often achieve their goals by modeling the strategies and practices of those who have already found success. The speaker shared his personal experience of buying a duplex through house hacking and how he was inspired by the real estate books he received as gifts to pursue a career in real estate. He emphasized the importance of simplicity and adopting proven systems to make the ordinary extraordinary. The speaker also mentioned his admiration for successful individuals like Pat Flynn and how he modeled his podcast after them. By following what works for others, the speaker was able to find success in various areas of his life.
Maximize earnings and productivity through hiring and delegation: Focus on strengths, delegate weaknesses, and use freed-up time for high-income tasks, not luxuries. Recognize the difference between being poor and broke, and base budgets on actual revenues.
Understanding your strengths and weaknesses, and leveraging them through hiring and delegation, can significantly increase your income and productivity. The speaker shares his personal experience of focusing on his hunting skills and hiring an admin to handle the details, leading to a substantial increase in sales and income. However, it's essential to distinguish between leverage and luxury. Leverage involves using the time and resources freed up by delegation to engage in higher-dollar-per-hour activities, while luxury involves wasting that time. Additionally, the speaker emphasizes the importance of recognizing the difference between being poor and being broke. Poor is a societal condition, while being broke is a result of poor financial management. It's crucial to base your budgets on actual revenues and not on pending checks or listings to avoid financial instability.
Learning from economic downturns: During recessions, cut expenses, increase activities, build cash reserves, and seize opportunities to thrive.
During economic downturns, it's essential to adapt and make tough decisions to survive and thrive. During the 2008 recession, the speaker learned the importance of cutting expenses and increasing activities to weather the storm. This led to their most profitable year by the end of 2009. The speaker also emphasized the importance of building cash reserves and using them to seize opportunities, such as purchasing a struggling real estate brokerage and turning it around. Additionally, the speaker shared how their experience with Airbnb played a role in their journey, providing the necessary income to start their real estate business and eventually leading to a successful portfolio of properties. Overall, the speaker's story highlights the importance of resilience, adaptability, and seizing opportunities during challenging economic times.
Earning extra income through Airbnb and real estate strategies: Airbnb offers opportunities for extra income, even with a full-time job. Be prepared for opportunities in a good economy, and consider seller financing for real estate deals.
Anyone can start earning extra income through Airbnb, even while working a full-time job. The speaker shares his personal experience of self-managing 10 properties while working a 9 to 5 job. He emphasizes the potential of renting out your space during vacations to cover expenses, as he did during a trip to Mexico City. Another key takeaway is the importance of being prepared for opportunities, especially in a good economy, as the market may not always be favorable. Lastly, the speaker highlights the benefits of seller financing, where buyers put down a small amount and pay off the seller over time, controlling the terms of the deal. This strategy allowed him to buy a failing real estate business and turn it around, despite not having the cash at the time. Overall, these strategies can be applied to various situations, from real estate investing to running a business, and can lead to significant savings and future opportunities.
Stay informed and be prepared for real estate opportunities during market downturns: Staying informed, building relationships, and being flexible with financing options can lead to significant real estate opportunities during market downturns. Preparation and knowledge can help investors succeed when others are struggling, and expanding into commercial real estate can provide multiple income streams and tax benefits.
Being prepared and proactive in real estate investing can lead to significant opportunities during market downturns. Ben and Brandon's story illustrates the importance of staying informed, building relationships, and being flexible with financing options. When they found distressed businesses, they didn't wait to learn the ropes; instead, they leveraged their knowledge and experience to turn a profit. This preparation allowed them to succeed when others were struggling. Additionally, Ben's expansion into commercial real estate, including buying buildings for his brokerages, demonstrates the potential for multiple streams of income and tax benefits through real estate investments. Overall, the key is to stay informed, be prepared, and take advantage of opportunities as they arise.
Creating deals instead of finding them: Successful individuals continuously seek opportunities for growth and value creation, focusing on unique aspects of deals that others might overlook, allowing them to unlock a world of opportunities.
Successful individuals, like Ben, constantly seek opportunities for growth and value creation, whether it's in real estate or other businesses. They don't shy away from challenges and instead focus on identifying unique aspects of a deal that others might overlook. This approach, often referred to as creating deals instead of finding them, is crucial in high-end markets where competition is fierce. Ben's journey from a house hack to becoming a top real estate agent and technology investor is a testament to this mindset. By continually asking "how can I do it?" instead of "why can't I?", one can unlock a world of opportunities, just as Ben did. Even though Ben's real estate investments might not be publicly known, his impact on the industry, as evidenced by his acquisitions of multiple real estate technology companies and expansion teams, is undeniable. This mindset of seeking opportunities and adding value can inspire anyone to follow in Ben's footsteps and build their own wealth.
Focus on residual income and assets for financial freedom: To achieve financial freedom, build residual income from past work and assets for long-term wealth growth. Diversify investments in real estate, businesses, and financial instruments for stability.
Building wealth goes beyond just exchanging time for dollars. While active income is essential, it has its limits due to the finite amount of time we have. To achieve financial freedom, one must focus on building residual income and assets. Residual income comes from work done in the past, such as rents, dividends, and profits from investments. Assets, on the other hand, are the foundation for long-term wealth growth. The speaker aims to have most of his wealth in assets that compound and grow, rather than relying on active income. He suggests investing in various areas, such as real estate, businesses, and financial instruments, to create a stable financial foundation. The idea is to have multiple sources of income and wealth-building opportunities, creating a more robust and stable financial situation.
Diversify investments and build a balanced portfolio: Dividing financial resources into retirement accounts, real estate, personal businesses, and more creates a robust financial foundation and reduces risk. Effective leadership in managing multiple ventures enhances growth.
Diversifying your investments and building a balanced portfolio can help ensure financial stability and increase opportunities for growth. This can be achieved by dividing your financial resources into different "buckets," such as retirement accounts, real estate, and personal businesses. By doing so, you create a more robust financial foundation and reduce the risk of relying too heavily on any one source of income. Moreover, successful business people understand the importance of leadership in managing multiple ventures. They prioritize hiring the right people and creating a synergistic ecosystem where each component supports and enhances the others. Ultimately, this approach not only makes your financial situation more secure but also enables you to grow your wealth more effectively.
Focus on top priorities when hiring: Make a list of top requirements, prioritize, and find a candidate who excels in those areas. Delegate or learn the rest later.
When hiring, it's essential to focus on the top priorities and find candidates who excel in those areas, rather than trying to cover every possible responsibility. Brandon, who is currently hiring for his marketing team and expanding his real estate business, shared his struggle with narrowing down candidates who all seem qualified on paper. He suggested making a list of the top 10-20 requirements for the role, organizing them by importance, and focusing on finding a candidate who excels in those top priorities. He emphasized that the rest of the responsibilities can be delegated or figured out later. Brandon also advised taking the time to thoroughly interview and assess candidates, as hiring without sufficient information increases the risk of making a mistake. He likened the hiring process to important relationships and emphasized the importance of choosing wisely. Additionally, Brandon mentioned considering a candidate's track record of success and understanding their goals to ensure they are a good fit for the team.
Leadership involves setting expectations, inspecting progress, coaching, and taking responsibility: Focus on one problem or goal at a time, commit fully, and provide opportunities for individuals to flourish
Effective leadership involves setting clear expectations, inspecting progress, providing necessary coaching and training, and taking responsibility for the success or failure of those under your guidance. The speaker emphasizes the importance of asking oneself what one could have done differently before letting someone go, and the potential for individuals to flourish given the right opportunities and support. Another key takeaway is the importance of focusing on one problem or goal at a time with full effort, rather than spreading energy thin across multiple projects or distractions. The speaker's experiences illustrate the potential for significant progress when one commits fully to solving a problem or achieving a goal.
Define clear goals for effective decision making: Identify what you enjoy and aligns with long-term goals before taking on new opportunities. Evaluate decisions based on contribution to overall vision and prioritize resources to achieve objectives.
Having clear goals is essential for making effective decisions and focusing on what truly matters in both personal and business aspects of life. The speaker emphasizes the importance of identifying what you enjoy and what aligns with your long-term goals before taking on new opportunities. By having a well-defined set of goals, you can evaluate potential decisions based on how they contribute to your overall vision and make choices that bring you closer to achieving your objectives. This clarity can help you avoid distractions, prioritize your time and resources, and ultimately lead to a more fulfilling and successful journey.
Understanding the other party's needs beyond numbers: Focusing on the other party's underlying needs and motivations leads to creative solutions and win-win deals.
In negotiations, it's essential to understand the other party's underlying needs and motivations beyond just the numbers. In the discussed deal, a software company was purchased with a unique payment structure. The seller's primary concern was securing a specific income to support himself and his family for the next decade. By focusing on this need, a deal was structured with monthly payments over ten years instead of a lump sum payment. This approach resulted in a win-win situation, allowing the seller to meet his financial goals while the buyer acquired the business with no upfront cost. This example demonstrates the importance of understanding the other party's story and finding creative solutions to meet their unique needs.
Understanding what's important to the other party: Building strong relationships and understanding what's important to the other party are crucial components of successful business deals.
Successful business deals aren't just about money. They're about understanding what's important to the people involved and finding ways to make it an equivalent win. The speaker shared his experience of reaching out to businesses outside of work hours, building relationships, and closing deals based on shared values and goals. He emphasized the importance of listening and understanding the needs of the other party, rather than focusing solely on financial gain. The speaker also shared an example of a deal where he bought a business with no money down and grew it significantly by bringing a sales and marketing engine to the table. However, he acknowledged the challenges of integrating technologies and leadership teams, which took longer than expected and caused initial financial losses. Overall, the key takeaway is that building strong relationships and understanding what's important to the other party are crucial components of successful business deals.
Building Meaningful Relationships in Real Estate: Commit to partnerships, work through challenges, avoid transactional approach, look for off-market deals, build niche business, provide value, focus on long-term relationships, increase activities or consider career change
Building meaningful relationships is key to success in real estate investing. The speakers emphasized the importance of committing to a partnership and working through challenges together. They also advised against a quick, transactional approach to relationships and instead encouraged taking the time to get to know people and build skills. Additionally, they suggested starting the search for small multifamily properties by looking for off-market deals and being persistent in finding properties that others don't know about. For aspiring real estate agents, they advised building a niche business by providing value to investors and focusing on long-term relationships. And for those with unpredictable income, they suggested increasing activities to create a more consistent income or considering a career change to one with a more stable income.
Don't wait for opportunities, go out and hunt for them: Successful investors focus on priorities, simplify goals, take action, and don't give up. They read, learn, and follow passions outside of work.
Success in real estate investing, or any field, requires action and a focus on priorities. Ben Kinney emphasized the importance of not waiting for opportunities to come to you, but going out and hunting for them. He also recommended simplifying goals and focusing on one thing at a time, such as buying and renting out properties. Kinney shared that successful investors don't complicate things or make excuses, and they don't give up. He also highlighted the importance of reading and learning from business and real estate books, and encouraged following one's passions and hobbies outside of work. Kinney's inspiring story of building wealth through real estate and giving back to charity serves as a reminder that anyone can make a difference and achieve their goals with determination and focus.
Setting Goals and Filtering Opportunities: Listening to experts discuss setting goals and filtering opportunities in real estate investing can provide valuable insights for investors, helping them make informed decisions and maximize potential.
Listening to the episode featured on BiggerPockets Radio with Brandon Turner and David Greene can provide valuable insights for real estate investors. The guests' discussion revolved around setting goals and filtering opportunities based on those goals. This simple yet effective approach can help investors make informed decisions and maximize their potential. The episode was packed with practical tips and information, making it worth listening to multiple times. Brandon and David also encouraged listeners to share their goals on social media and collaborate on achieving them. Overall, the episode emphasized the importance of having clear goals and a strategic approach in real estate investing.
