Podcast Summary
Revolutionizing Real Estate Investing with Technology and Innovative Financing: Technology eliminates lead costs, turnkey rentals offer no money down, and private funds provide passive income with low hassle
Technology and innovative financing solutions are revolutionizing real estate investing, making it more accessible and affordable for investors. DealMachine eliminates the need for paying for lead information and provides unlimited access to high-quality, reliable data. Rent to Retirement offers turnkey rental properties with no money down through investor loans with low rates and down payments. For passive income, investing in a private real estate fund like PPR Capital Management provides monthly income without the hassle of property management. These advancements are game-changers for real estate investors, enabling them to build wealth and invest with fewer financial barriers.
Insights from Entrepreneurs and Business Experts: Listen to the Bigger Pockets Business Podcast for valuable lessons on sales, marketing, operations, and process from successful entrepreneurs and business experts, including real estate investors.
The Bigger Pockets Business Podcast, hosted by Dave Meyer and his wife Carol, is a valuable resource for real estate investors and business owners alike. The show features interviews with founders and entrepreneurs, as well as experts in various business fields. Listeners can learn from the experiences and insights of these guests, who range from new entrepreneurs to well-known figures like Barbara Corcoran. The podcast covers topics such as sales, marketing, operations, and process, making it a must-listen for anyone running a business, including real estate investors. Additionally, during a live event, Dave answered a question about investing in IRAs and Roth IRAs, emphasizing that investments with high tax burdens are good choices for these tax-advantaged accounts. He advised focusing on investments that don't require day-to-day active involvement, such as lending and notes. Overall, the Bigger Pockets Business Podcast provides valuable insights and inspiration for anyone looking to grow their business or invest in real estate.
Focus on passive investments in IRA to avoid trouble, consider real estate notes and lending: When investing from an IRA, avoid high taxed investments and consider passive options like real estate notes and lending. Being a realtor can provide industry knowledge, but having a real estate license can present conflicts of interest. Instead, consider becoming a real estate agent for industry passion and mastery.
When it comes to investing out of an IRA, focusing on passive or high taxed investments is recommended to avoid potential trouble. Notable passive investments include notes and lending. Being a realtor can be beneficial for real estate investing in other markets due to industry knowledge and understanding agent motivations. However, having a real estate license can present conflicts of interest when investing in your own market. Instead, becoming a real estate agent is best for those passionate about the industry and looking to master the craft. For those interested in growing a real estate sales team, David Green's episode on the Business Podcast provides valuable insights.
Marketing and Customer Service Key to Retaining Tenants: In a competitive market with high vacancy, focusing on unique amenities, marketing, and excellent customer service can help landlords stand out and retain tenants.
To stand out in a market with higher than normal vacancy rates, landlords should focus on marketing and providing excellent customer service. Jay, a multifamily investor from Fargo, North Dakota, shared his experience of an overbuilt market with significant vacancy in the A class apartments. He mentioned adding unique amenities like butcher block counters and pet-friendly features to stand out. Brandon, a marketing expert, emphasized the importance of marketing and creating a better tenant experience than competitors. Chris Clothier from Memphis Invest, with 6,000 units under management and 18% turnover, attributed his low turnover to nicely renovated properties and good tenant-landlord relationships. The group agreed that taking pride in the industry and providing good customer service are essential to retaining tenants and growing a successful business.
Building strong tenant relationships leads to lower vacancy rates: Successful landlords prioritize tenant satisfaction, offering larger units or short-term rentals to keep them from leaving for competitors. Proof of funds or preapproval is important when buying properties, but securing the perfect financing and situation isn't necessary at first.
Building strong relationships with tenants can lead to lower vacancy rates and a good reputation as a landlord. This was emphasized during the discussion, with examples given of landlords who have successfully moved tenants up from smaller units to larger ones, keeping them from leaving for competitors. Additionally, providing short-term rentals for specific markets, such as those with a high demand for furnished corporate housing, can also be a viable option. Another key point made was the importance of having proof of funds or preapproval when trying to buy a property, especially in competitive markets where sellers require it. However, it may not be necessary to secure the perfect financing and situation all at once; instead, focus on closing the deal first and then work on refining the financing later.
Showing commitment in real estate with large earnest money deposits: Investing in real estate with a financed offer? Put down a large nonrefundable earnest money deposit to build trust and show your commitment, reducing the likelihood of the seller accepting another offer.
Confidence and trust are crucial in real estate investing. When making a financed offer, put down a large nonrefundable earnest money deposit to show your commitment and make the seller less likely to accept another offer. In personal spending, even when forced, individuals often choose healthy and positive investments for themselves. In investing partnerships, trusting each other in specific roles and letting go of the need to control everything can lead to fewer conflicts and better outcomes. From an entrepreneurial perspective, hiring employees sooner and having more confidence in one's business can lead to faster growth. Fear is a common obstacle, but recognizing and addressing it can help individuals get started, scale their businesses, and adapt to market shifts.
Continuous learning and trusting instincts are vital in real estate investing: Teach kids about real estate and financial responsibility through gifting properties and utilizing resources for continuous learning
Continuous learning and trusting your instincts are essential in real estate investing. As Carol mentioned, no one knows everything, and those who claim to do so should be approached with skepticism. Brandon's strategy of gifting properties to his children at birth and involving them in the investment process is an excellent way to teach them valuable lessons about real estate and financial responsibility. Additionally, with the abundance of resources and technology available, it's crucial to remind the younger generation to take advantage of these tools to learn new skills and explore opportunities.
Teaching Kids About Money: Making it Fun and Engaging: Encourage children's financial literacy through open conversations, simple practices, and engaging experiences like running lemonade stands, lending money, and managing profits. Model healthy attitudes towards money and avoid taboo to set kids up for future financial success.
Parents can teach their children valuable financial skills from a young age by making money management an open and exciting conversation. This can be done through simple practices like allowing children to lend money to their parents at high interest rates, having them run their own lemonade stands and managing the profits, and involving them in real-world financial decisions. By doing so, children can develop a strong foundation in financial literacy and a healthy attitude towards money. Additionally, it's important for parents to model open and honest communication about money, and to avoid the taboo that often surrounds the topic. By starting these conversations early and making learning about money an engaging experience, parents can set their children up for financial success in the future.
Talking About Money with Kids: Lessons from Personal Experience: Open conversations about money with kids from a young age can help them learn about negotiation and the value of money, while avoiding the mistakes of not having these conversations made by previous generations.
It's essential to have open and honest conversations about money with children from a young age. Jay shares his experience of not having these conversations with his parents, which led him to accrue debt. He recommends teaching kids about negotiation and the value of money through real-life experiences. The conversation then shifts to a fun and imaginative question about what animal one would be if reborn in a world without humans. The answers reveal the interviewees' personalities and desires, showcasing the importance of self-reflection and introspection. While the conversation may seem unrelated to the initial topic, it highlights the importance of having diverse and engaging discussions that can lead to valuable insights and learning experiences.
Finding Meaning and Balance in Business: Align business with personal values, maintain work-life balance, and consider societal impact for a successful and fulfilling career
Finding meaning and fulfillment in business is crucial for a balanced life. This was discussed when a panelist shared how he had to redefine his business to align with his personal mission and keep him engaged, leading to a more successful and happier life. Another panelist emphasized the importance of maintaining a work-life balance by separating work from personal time, ensuring sustainability and preventing burnout. The rising cost of education and student debt was also addressed, with concerns raised about its potential impact on the real estate industry as young people struggle to afford loan payments. Overall, the conversation highlighted the importance of aligning business with personal values, maintaining balance, and considering broader societal issues.
Shifting Economy: College vs Rentals: The rising cost of college education and burden of student loan debt may lead to a shift towards rental properties and away from homeownership.
We're approaching an inflection point in education and housing markets. The cost of a college education may not provide enough value add for some individuals, leading to a shift in the economy towards rental properties and away from homeownership. This trend is already happening, with corporate ownership of single family homes at all-time highs and a growing number of successful people without college degrees. The accessibility of skills training outside of traditional colleges and universities, coupled with the burden of student loan debt, is driving this shift. From an economic perspective, this trend could be influenced by the cycle of debt in the economy. While it's impossible to predict the exact ramifications, it's important to consider these factors as we look to the future.
Historical debt reduction may not occur during the next recession due to student debt: The upcoming recession may not recover as strongly due to the large amount of student debt, requiring government intervention and personal strategies like networking, self-education, and capital accumulation for financial freedom
The upcoming economic recession may not follow the typical pattern due to the large amount of student debt that cannot be discharged in bankruptcy. Historically, debt levels have been significantly reduced during recessions, allowing for a stronger economic recovery. However, this time, a large portion of the debt is student debt, which will not go away. This means that the economy may not bounce back as strongly after the recession, and the government may need to intervene with new policies to address this issue. Another key takeaway is the importance of having great mentors, a relentless obsession with self-education, and the accumulation of capital to achieve financial freedom. These were the strategies shared by a listener named Cameron, who left his job and joined a startup to pursue real estate investing. He emphasized the importance of networking with financially independent individuals, as they can provide valuable insights and support.
Surround yourself with like-minded individuals and maintain a long-term perspective: To succeed in entrepreneurship and investing, surround yourself with supportive peers, maintain a long-term perspective, and focus on key performance indicators.
Entrepreneurship and investing can be a roller coaster of emotions, with highs and lows that can be challenging to navigate. To succeed, it's essential to surround yourself with like-minded individuals who understand the ups and downs of self-employment and financial pursuits. Additionally, maintaining a long-term perspective and pushing through tough times is crucial. Another important tip is to identify and focus on key performance indicators (KPIs) in your business or investing strategy, as these activities directly contribute to generating income. Remember, structure and discipline can be valuable tools, rather than obstacles, in achieving success.
Focusing on low-paying tasks can hinder progress towards financial goals: Prioritize high-paying tasks to increase earnings and ultimately lead to greater financial success.
Focusing on tasks that generate hourly wages below your desired income level can hinder your progress towards financial goals. Instead, prioritizing activities that generate higher hourly wages, such as acquiring new clients or properties, can help increase earnings and ultimately lead to greater financial success. Additionally, the speaker recommended the book "The Monk Who Sold His Ferrari" for personal growth and development. Regarding cryptocurrency and real estate, no panelist shared personal investment experiences, but Brandon has created a YouTube video on the topic.
Blockchain's Impact on Real Estate: Fractional Ownership and Simplified Transactions: Blockchain technology is transforming real estate by enabling fractional ownership and simplifying transactions, offering potential for easier fundraising through equity sales.
While the speaker has investments in crypto companies and has dabbled in crypto, they are more bullish on the underlying technology of blockchain than on the cryptocurrencies themselves. Blockchain is expected to revolutionize industries, particularly real estate, by enabling fractional ownership and simplifying transactions. The speaker sees potential in the real estate space for using blockchain to sell shares or equity in properties, making it easier for individuals to raise funds for their next purchase. Cryptocurrencies, on the other hand, are viewed as speculative investments with no guaranteed returns or cash flow, making them less attractive for long-term wealth building. The speaker suggests focusing on providing goods or services to the crypto market, rather than trying to predict which currency will be successful.
Exploring the Benefits and Risks of Accepting Cryptocurrencies for Real Estate: Accepting cryptocurrencies for real estate transactions can bring benefits but also involves significant risks due to their volatile nature. Consider the potential rewards and risks before making a decision.
Being a part of the foundational infrastructure of new technologies, such as real estate using cryptocurrencies, can potentially bring significant benefits. However, accepting cryptocurrencies as a form of payment for real estate comes with substantial risks due to their volatile nature. It's essential to weigh the potential rewards against the risks before making such a decision. Additionally, Mindy shared her strong dislike for mushrooms but couldn't definitively say she'd rather give up Bigger Pockets than eat them. The podcast wrapped up with some housekeeping announcements, including a cocktail party and after-party, and a reminder about BiggerPockets Agent Finder as a valuable resource for finding investor-friendly agents. Overall, the discussion emphasized the importance of understanding the risks and rewards before making significant investment decisions.
