Podcast Summary
The Power of Dedication and Proactivity in Business: Dedication, humility, and a proactive approach can lead to significant opportunities and rewards. Explore innovative investment strategies like rent-to-retirement and high-interest private credit funding through Fundrise.
Being a dedicated and valuable employee can lead to significant opportunities and rewards. Ryan Murdock's story serves as a perfect example. Despite initial small-scale endeavors, his focus on mastering tasks, humility, and proactive approach ultimately led to partnerships and mutual success. The Bigger Pockets podcast hosts, Brandon Turner and David Green, emphasize this lesson for those feeling stagnant in their own progress. Additionally, the episode touches on creative investment strategies, such as rent-to-retirement and high-interest private credit funding through Fundrise, which can provide opportunities for investors in the current market. Overall, the podcast encourages listeners to stay committed to their goals, learn from successful case studies, and explore innovative investment strategies.
Finding Motivated Sellers of Off-Market Properties with PropStream: Use PropStream to access a large database of off-market properties and motivated sellers, enabling you to expand your real estate investment opportunities.
When the real estate market inventory is low, expanding your search to off-market properties can be a valuable strategy. PropStream, a leading real estate data provider recognized by HousingWire as a Tech 100 honoree for four consecutive years, can help you find motivated sellers quickly with access to over 155 million properties nationwide and 120 search filters. PropStream offers accurate sales estimates, lead automation, skip tracing, and a marketing suite to efficiently close deals. Brandon Turner and Ryan Murdoch, real estate investors and friends, met through the Bigger Pockets podcast and later connected in person when Brandon was looking for a mobile home park in Bangor, Maine, which Ryan happened to have for sale. Despite the small and cold location, Brandon saw the potential and made the investment. Building relationships and staying persistent, even in unexpected ways, can lead to valuable opportunities in real estate.
Unexpected opportunities from staying engaged: Staying engaged in communication can lead to unexpected business opportunities. Even if an opportunity doesn't seem promising at first, it's important to stay open to the possibility of something greater.
Persistence and staying engaged in communication can lead to unexpected opportunities. The speaker in this discussion shared a story about reaching out to Brandon Turner about a potential mobile home park investment. Despite initial doubts about the opportunity, the speaker sent the information to Brandon as a way to stay connected. To the speaker's surprise, Brandon expressed interest in the park and eventually invited the speaker to partner on the investment. The experience taught the speaker that even if an opportunity doesn't seem promising at first, it's important to stay engaged and open to the possibility of something greater. Additionally, the speaker learned that building a strong business relationship can involve taking risks, such as inviting a potential business partner into your home.
Creating a successful business partnership through value-add and effective communication: To build a strong business partnership, add value, create genuine connections, and communicate effectively. Understand the partner's needs and provide a solution to earn trust, and clearly define roles and responsibilities for success.
Building a successful business partnership requires authenticity, value-add, and effective communication. Ryan Murdoch's story illustrates how he was able to build a strong business relationship with Brandon Turner by adding value and creating a genuine connection. By understanding Brandon's needs and providing a solution to his problem, Ryan was able to earn his trust and eventually partner with him on a mobile home park investment. The partnership structure they created involved bringing in a third party, Mindy, and using a TIC (Tenants in Common) structure to hold title, allowing them to each own a portion of the property while still utilizing their 1031 exchange funds. Effective communication and division of responsibilities were crucial to the success of their partnership, with Ryan handling the asset management role and the property management company handling the day-to-day operations. Ryan's experience and skills in managing projects were developed through his previous work experience.
Leveraging Networks and Value to Secure Opportunities in Real Estate: Gaining knowledge and experience, building strong relationships, and having capital to invest can lead to valuable opportunities in real estate. Utilize your network and hustle to bring value to the table and secure deals.
Having a strong network and the ability to bring value to the table can lead to valuable opportunities in real estate investing. The speaker, Ryan, started in property management and used his knowledge and connections to join forces with a larger management company. He then brought value to a deal by investing his own money and received additional equity in return. This example highlights the importance of having the deal, hustle, knowledge, and money in real estate investing, and how one can prepare themselves by gaining knowledge and experience before opportunities arise. Additionally, building strong relationships through networking and collaboration can lead to unexpected opportunities, as seen in Ryan's experience working with Brandon Turner in Hawaii.
Understanding complementary strengths in partnerships: Identify mutual needs and desires, test small projects, and recognize potential benefits to grow successful partnerships
Building successful partnerships involves taking the time to understand if you and your potential partner complement each other well. The speaker, Brandon, shares his experience of partnering with Ryan, Ryan being his exact opposite, and how their differences led to a successful business relationship. Brandon emphasizes the importance of testing the waters through small projects and tasks before committing to a larger partnership. A defining moment for Brandon was when Ryan effortlessly solved a problem for him, which showed Brandon the potential benefits of their partnership. Ultimately, successful partnerships require identifying mutual needs and desires, and recognizing that the partnership can lead to growth opportunities for both parties.
Starting small and excelling can lead to big opportunities: Approach every job with a commitment to do your best, even if it means starting at the bottom or taking on seemingly insignificant tasks. This attitude can lead to unexpected opportunities and advancement.
Having a "GSD" (Get Stuff Done) attitude and being willing to take on any task, no matter how small or seemingly insignificant, can lead to great opportunities and growth. Ryan, who started as an executive assistant and later became VP of acquisitions in a mobile home park business, is a prime example of this. He didn't let his initial role define him and instead focused on excelling in every task given to him. This mindset allowed him to move up in the company and take on more responsibilities. The key takeaway is to approach every job with a commitment to do the best you can, even if it means starting at the bottom or taking on tasks that may seem beneath you. This attitude can lead to unexpected opportunities and advancement.
Humility and Hard Work, Efficient Lead Generation, and Alternative Income Sources: Ryan's humility and hard work inspire us, while DealMachine simplifies lead generation. Airbnb offers alternative income sources, and NREIG's insurance and Relay's business bank account support real estate investors.
Humility and the ability to put in hard work, regardless of one's previous position or role, are valuable traits. Ryan, as an example, demonstrated these qualities by raking leaves alongside his friends without any sense of superiority or entitlement. This egalitarian attitude not only fosters strong relationships but also allows individuals to adapt and thrive in different situations. Moreover, the discussion touched upon the importance of efficient lead generation and the role of technology in streamlining the process. DealMachine was highlighted as a game-changer, offering unlimited access to reliable contact information for off-market deals. Lastly, the speakers shared personal experiences of utilizing Airbnb as a source of extra income and a stepping stone towards financial independence. Additionally, they emphasized the convenience of NREIG's insurance services tailored to real estate investors and the ease of opening a business bank account with Relay.
Effective delegation and hiring the right team are keys to business growth: Hire talented individuals, reevaluate roles, delegate tasks, and use RelayFi for stress-free banking to focus on growth
Effective delegation and hiring the right team members are crucial for growing businesses. As shared in the discussion, the speakers mentioned their own experience of growing a mobile home park business, which started as a small operation with just a few people. They emphasized the importance of having a clear vision and goal, which helped them attract and hire talented individuals like Ryan and Brandon. Ryan, who is now managing most of the business operations, was initially responsible for deal analysis and team management. As the business grew, they brought in more team members to help with underwriting and acquisitions. However, they highlighted that every new hire meant reevaluating everyone's roles and responsibilities, making it essential to hire the right people with the right skills and personalities. The speakers also emphasized the importance of delegating tasks to focus on higher-level responsibilities and grow the business. They recommended RelayFi for stress-free banking with no monthly fees or minimums, making it easier for business owners to manage their finances while focusing on their teams and growth.
Effective hiring and delegation for business growth: Hiring the right team members can reduce stress and allow for business growth. A well-rounded team is crucial for success, but a bad hire can halt progress, requiring time and resources to rectify. Refine hiring criteria to focus on deals that align with your goals and understand the opportunity cost of considering bad deals.
Building a successful business isn't just about having the necessary skills, but also the ability to hire and delegate effectively. As the discussion highlighted, hiring the right people can significantly reduce stress and allow for growth. Comparing it to sports, having a well-rounded team is crucial for winning. Moreover, growing a business is like the process of mitosis in a cell, where each split represents hiring new team members. However, one bad hire can halt the growth process, requiring time and resources to rectify. The speakers shared their experience of refining their hiring criteria to increase efficiency and focus on deals that align with their goals. It's essential to understand that the opportunity cost of considering bad deals can outweigh the potential benefits.
Specific criteria lead to better business deals: Clear and specific business criteria can lead to better outcomes, stronger brand, and efficient decision-making
Having clear and specific criteria for your business deals can lead to better outcomes and help you build a strong brand. As discussed, being overly broad or lacking specificity can result in missed opportunities or wasted resources. Brandon and Ryan's experience highlights the importance of knowing what you want and sticking to it. Additionally, having a well-defined company structure with distinct roles can help streamline operations and ensure that everyone is working towards the same goals. This approach can lead to more efficient decision-making and better overall performance.
Delegate and partner for growth: Effective delegation and partnership allow CEOs to focus on strategic decision-making and raising capital, while team handles operational details and a complementary partner brings expertise for exponential growth.
Effective delegation and partnership are crucial for business growth. The speaker emphasizes the importance of insulating the CEO from day-to-day business matters and bringing only high-level issues for their input. By doing so, the CEO can focus on strategic decision-making and raising capital, while the team handles the operational details. The speaker also highlights the value of having a partner with complementary skills, such as an asset manager who brings expertise and experience that the current team lacks. This partnership can lead to exponential growth for the business, making the sacrifice of equity worthwhile.
Meeting successful people impacts growth: Surround yourself with successful people, engage with them, and add value to their lives to positively impact your personal and professional growth.
The people you surround yourself with significantly impact your personal and professional growth. The speaker shared his experience of meeting Brian, a successful real estate investor, and how their conversations led to implementing new strategies, such as adding a waterfall in their syndications. This simple question and subsequent conversation with Brian incentivized the speaker to do better deals and reach new heights. The speaker emphasized the importance of getting around people who are already successful and staying engaged with them, even if it means working for them. By doing so, you can be pulled up to their level rather than trying to climb the ladder alone. The speaker's progression in life was not due to any magnificent actions but rather from staying engaged and adding value to people's lives. Therefore, it's essential to get off the couch and attend meetups, stay engaged on forums, and keep your name in front of influential people to positively impact your life.
Finding valuable deals at local real estate meetups: Networking at local real estate meetups can lead to unexpected investment opportunities and profitable deals, while also offering a platform for learning and collaboration.
Attending local real estate meetups can lead to valuable connections and potential investment opportunities. Ryan Murdoch found not one, but two great deals, including a mobile home park and a 7-unit property, at a meetup hosted in someone's living room. The importance of taking action and seizing opportunities, even if they seem unconventional, was emphasized. The meetup not only led to these deals but also provided a platform for networking and learning from other investors. Additionally, the flexibility to negotiate during due diligence allowed Ryan to secure a significant seller credit, making the deals even more profitable. Overall, the discussion highlights the significance of staying active in the local real estate community and being open to new opportunities.
Flexible funding options like seller financing: Seller financing allows mobile home park acquisitions without bank involvement, and infilling increases income with minimal expenses, making it a profitable investment during economic downturns.
When investing in a mobile home park, having flexible funding options is crucial, especially when traditional financing may not be an option. In this case, seller financing allowed for the acquisition without involving a bank. Additionally, infilling a mobile home park can significantly increase income with minimal additional expenses, making it an attractive investment during economic downturns. The successful completion of filling vacant lots in the park, along with the substantial increase in NOI, highlights the potential for substantial returns in this real estate niche.
Investing in affordable housing: steady cash flow and growth potential: Consider investing in affordable housing like mobile home parks for recession-resistant income and potential growth. Budget for unexpected repair costs.
Investing in affordable housing, such as mobile home parks, offers recession-resistant cash flow with potential for growth. However, it's essential to budget adequately for unexpected repair costs, which can add up significantly. Regarding elevator pitches, Dan from Charlotte, North Carolina, shared that he likes saying he buys trailer parks as it sparks curiosity and opens up opportunities for potential collaborations. When it comes to home improvement stores, Dan personally prefers Lowe's due to better discounts and a long-standing relationship. Nonetheless, both stores have their merits, and the choice ultimately depends on personal preference and location.
Preferences and Conflicts in Shopping and Property Management: Understanding individual preferences and addressing potential conflicts in a fair and considerate manner is crucial in both shopping experiences and property management.
Everyone has different preferences and tolerances when it comes to various aspects of life, including shopping experiences and property management. Brandon and David have contrasting feelings towards Home Depot, with Brandon enjoying the chaos and deals while David dislikes the smell, lack of seating, and open aisles. In property management, Jessica Todd is dealing with a tenant's large political flags that have caused discomfort for other tenants. She is considering asking the tenant to remove them due to potential lease violations and concerns about freedom of speech. The consensus was to update the lease to include a no-signage policy to prevent potential conflicts. Lastly, Tim Swedberg asked about staying motivated in real estate investing, and the panelists shared their experiences of pushing through the challenges and finding success, emphasizing the importance of setting goals and staying focused on the end result. Overall, the discussion highlighted the importance of understanding and accommodating individual preferences and addressing potential conflicts in a fair and considerate manner.
Prepare for challenges and learn from experiences: Thorough site visits, external support, and continuous refinement can help reduce anxiety and increase competitiveness in real estate investments.
Preparing for potential challenges and learning from past experiences can help reduce anxiety and improve resilience. The importance of having a solid system in place and continuously refining it cannot be overstated. Even the smartest individuals can benefit from external support and resources. In the realm of real estate, conducting thorough site visits and engaging with sellers can give buyers a better understanding of potential investments and increase the competitiveness of their offers. Brian Murray's book, "Crushing It in Apartments and Commercial Real Estate," is a valuable resource for those interested in commercial real estate, offering practical advice and real-life examples.
The value of personal experience and knowledge: Experience and knowledge are crucial in decision making, whether it's in real estate, business, or lifeguarding. Being prepared, adaptable, and taking warnings seriously can make all the difference.
Personal experience and knowledge are valuable assets when making decisions, especially in business. This was emphasized during a discussion about real estate offers, where the speaker preferred the buyer who had seen the property in person, despite a lower offer. Similarly, the book "4 Hour Workweek" inspired the speaker to build a business that could be managed remotely, allowing for greater freedom and flexibility. Another interesting topic that emerged was the speaker's hobby of freelance lifeguarding in Hawaii. This experience highlighted the importance of taking warnings seriously and being prepared for potential dangers, even when they may seem insignificant or commonplace. In essence, the speaker's experiences, both personal and professional, underscored the value of knowledge, preparation, and adaptability. Whether it's in real estate, business, or lifeguarding, these qualities can make all the difference.
Persistence is key to success in real estate investing: Anyone can achieve real estate investing goals with enough determination and persistence, regardless of intelligence.
Persistence is key to success in real estate investing. Ryan Murdock emphasized that no matter how smart or savvy one might be, without the drive and determination to keep going, it will be difficult to achieve goals. He shared his belief that anyone, even someone who may not be the most intelligent, can accomplish their objectives if they are persistent enough. Additionally, it was mentioned that the use of full-face snorkeling masks, also known as monorkels, can be dangerous due to the potential build-up of carbon monoxide or carbon dioxide, but the importance of persistence in real estate investing overshadowed this discussion. For those interested in learning more about Ryan, they can find him on Instagram @ryan.murdock21 or email him at ryan@biggerpockets.com.
Find investor-friendly real estate agents with BiggerPockets Agent Finder: To achieve financial freedom in real estate investing, focus on the length of your investment rather than market timing. Utilize BiggerPockets Agent Finder to connect with local experts for guidance and support in potential deals.
Achieving financial freedom in real estate investing isn't about market timing, but rather the length of time you invest. If you're eager to begin or advance in this field, finding an investor-friendly real estate agent is crucial. BiggerPockets Agent Finder simplifies this process. Visit biggerpockets.com/deals, input your desired investment location and type, and receive instant matches with suitable agents. These local experts can guide you through neighborhoods, analyze potential deals, and help build your confidence for successful investments. Access this free resource at biggerpockets.com/deals. Remember, the content in this podcast is informative, but past performance doesn't guarantee future results. Always consult with professionals before making investment decisions and only risk capital you can afford to lose. BiggerPockets LLC disclaims any liability for damages arising from reliance on this podcast's information.
