Podcast Summary
Emphasizing Lead Generation and Multiple Exit Strategies: Successful real estate investors, like Marcus Maloney, started with little capital and built businesses through lead generation and having multiple exit strategies. They also leverage other people's money and adapt to market changes.
Successful real estate investors like Marcus Maloney emphasize the importance of lead generation and having multiple exit strategies. Maloney, a Phoenix wholesaler and flipper, shares his experience of starting with just $200 and building a business, providing valuable insights on using other people's money and virtual deal making. Brandon Turner and David Green, hosts of the Bigger Pockets Podcast, are now interviewing guests and following up with them to discuss how their businesses have been affected by COVID-19 or other changes. By sharing both the current and past perspectives, listeners can gain a better understanding of how these businesses are adapting in a constantly evolving market.
Exploring Valuable Real Estate Resources: BiggerPockets, DealMachine, Rent to Retirement, and Host Financial: BiggerPockets offers valuable reviews on mortgage companies and property management software. DealMachine provides unlimited lead generation contacts. Rent to Retirement offers no money down investment opportunities. Host Financial simplifies mortgage qualification.
BiggerPockets.com is a valuable resource for those interested in the real estate industry, offering reviews on various mortgage companies, property management software, and more at biggerpockets.com/reviews. Additionally, DealMachine provides unlimited access to contact information for lead generation with their plan, and Rent to Retirement offers the opportunity to invest in new construction rental properties with no money down. For easier mortgage qualification, consider working with Host Financial. Marcus Maloney's background includes getting into real estate through writing for the Bigger Pockets blog, and the conversation with him on the podcast will delve deeper into his story. Overall, these tools and resources can help streamline the real estate investment process and make it more accessible for individuals.
From farm to real estate success story: Following your passions and staying consistent can lead to great rewards in real estate, even with limited resources.
Determination and passion can lead to success, even in the face of adversity. The speaker grew up learning entrepreneurial skills on a farm in Illinois, which sparked a passion for real estate. Despite pressure to conform and go to college, he followed his dreams and moved to Phoenix to pursue real estate. When he arrived, a promised job offer fell through, forcing him to rely on his own resources and hustle. He discovered Bigger Pockets on his drive to Arizona and learned about wholesaling as an entry point into real estate. With just $200 and a consistent effort of mailing 10 letters a day, he secured his first deal, making a profit of $19,000. Through perseverance and self-reliance, he built a successful career in real estate, proving that following your passions and staying consistent can lead to great rewards.
Persuading skeptics with real estate success: Starting late in life, achieving success first, and using wholesaling are strategies for real estate investing success
Demonstrating success and having a solid financial foundation can be effective in persuading a spouse or skeptics to embrace real estate investing. The speaker shares his personal experience of waiting until he had already achieved success before trying to win over his wife. He also emphasizes that age is not a barrier to starting, as he began investing later in life and was able to quit his job by the age of 27. Wholesaling, a type of real estate investment, was the first deal he made, which involved leveraging the seller and finding a buyer to assign the contract to. This strategy allows investors to make money without having to take on the responsibility of becoming a landlord. Wholesaling is a common tactic in the industry and can be applied to various types of distressed properties.
Follow the law in real estate investing to avoid legal issues: Starting a business or pursuing a goal doesn't require perfection, take action to find opportunities and build a system, and believe in yourself to overcome self-limiting beliefs
Real estate investing, specifically wholesaling, offers opportunities for profit, but it's essential to follow the law and obtain necessary licenses to avoid legal issues. Another key takeaway is that starting a business or pursuing a goal doesn't require having everything perfectly lined up beforehand. Instead, taking action and finding a deal first can lead to discovering new opportunities and building a system. Lastly, having faith and belief in one's abilities, even in the face of self-limiting beliefs, is crucial for success. The speaker's personal experience of overcoming fears and doubts to become a successful real estate investor serves as a powerful reminder to just get started.
Personal growth and financial success through giving: Giving can lead to personal growth and financial success. By donating a portion of profits to charity, one can overcome scarcity mindset and find more deals, network with successful people, and increase earnings.
Giving and generosity, even on a small scale, can lead to significant personal growth and financial success. The speaker shared his personal experience of giving a portion of his profits to charity, which helped him overcome a scarcity mindset and led him to find more deals and network with successful people. He also mentioned a study that showed a correlation between giving and increased earnings. Furthermore, the speaker emphasized the importance of continuous financial flow and learning from mentors to build confidence and succeed in real estate.
Effective Lead Generation in Real Estate through Direct Mail: Direct mail marketing using professional letters and envelopes remains a successful strategy for generating real estate leads. Investing in a professional image builds credibility and increases open and response rates. Diversifying investments and having passive income helps mitigate risk.
Direct mail marketing continues to be an effective strategy for generating leads in real estate, especially when using professional letters and envelopes. The speaker shared his personal success story of using direct mail, cold calling, and text messaging, but the majority of his leads still come from direct mail. He emphasized the importance of investing in a professional image to build credibility and increase open and response rates. Additionally, the speaker discussed his overall investment strategy, which includes wholesaling, buying rentals, and experimenting with the BRRRR Method. He highlighted the importance of having passive income and diversifying investments to mitigate risk. The speaker also shared his interest in commercial real estate, specifically investing in a daycare center, which provides recurring revenue and is a recession-resistant business.
Real Estate Investing for Passive Income: Speaker invests in 9 rental properties in Midwest, funds with profits from wholesaling in Phoenix, sister-in-law manages, uses Redfin, Connect Invest, and Steadily.com for efficient returns.
The speaker has successfully built a passive income stream through real estate investing, specifically in the Midwest where he has 9 rental properties. He uses the profits from wholesaling deals in Phoenix to fund these investments, as he believes the returns are better there. The speaker is hands-off with the day-to-day management of his properties, as his sister-in-law runs a daycare in one of them. He emphasizes the benefits of passive income, and mentions using Redfin to help with buying and selling properties, and Connect Invest for easy participation in real estate investing. Additionally, he highlights the importance of efficient and affordable landlord insurance through Steadily.com. Overall, the speaker's business involves a team and likely multiple phone calls, but he focuses on passive income and outsourcing management to maximize returns.
Finding and Hiring Successful Acquisition Managers: Network through platforms like BiggerPockets, vet potential hires thoroughly, and offer a percentage of deal profits to motivate acquisition managers.
Successful real estate investing businesses often rely on acquisition managers to handle leads and close deals. Acquisition managers handle everything from initial contact to closing, and their performance is crucial for the business's success. To find good acquisition managers, consider networking through platforms like BiggerPockets and vetting potential hires thoroughly. Once hired, acquisition managers typically receive a percentage of each deal's profits. For those looking to learn wholesaling, being tenacious and persistent are essential traits for success as an acquisition manager.
From hard work to success in real estate: Success in real estate investing requires dedication, communication skills, and a positive mindset towards opportunities.
Success in real estate investing requires hard work, sacrifice, and putting yourself out there. Many aspiring investors express their desire to become successful, but they don't take the necessary steps to make it happen. Instead of relying on social media or waiting for opportunities to come to them, they need to hit the streets, find deals, and be willing to learn from their mistakes. Another important aspect is understanding different personalities and adapting to them while communicating. Some sellers may require more hand-holding and guidance, while others may only be interested in the top dollar offer. Patience and knowing who you're dealing with are crucial in this industry. The speaker also shared his personal growth in this field. Initially, he disliked talking on the phone, but as he gained experience and saw the potential rewards, he learned to embrace it. By adapting this mindset and focusing on the opportunities, he was able to close deals and earn significant commissions. In summary, success in real estate investing comes from putting in the work, learning to communicate effectively, and having a positive, opportunity-focused mindset.
Adapt and Overcome in Real Estate Investing: To succeed in real estate investing or entrepreneurship, individuals must be willing to adapt, learn new skills, and embrace discomfort. There are no physical limitations, only attitudinal ones.
In the world of real estate investing, or any entrepreneurial venture, individuals cannot expect to maintain the same roles and skill sets they had in larger companies. Instead, they must be willing to adapt and take on various responsibilities to succeed. This may involve learning new skills, such as effective communication or using spreadsheets, and being open to rejection and discomfort. The speaker emphasizes that there are no physical limitations in this world, only attitudinal ones. Those who are willing to change and become tenacious will be able to convert leads and grow successful businesses. Personal stories of overcoming personal limitations, such as being introverted or lacking people skills, illustrate the importance of this mindset.
Personal growth and transformation are keys to success: Understand that transformation is necessary, seek help from therapists or coaches, adapt to uncomfortable situations, and focus on virtual wholesaling and phone sales for business growth.
Personal growth and mindset development are crucial components of achieving success. The speaker's own experience demonstrates that dealing with personal issues and changing one's personality were essential for their progress. However, not everyone needs a high-priced coaching program; instead, a therapist or performance coach may be more beneficial. The key is to understand that transformation is necessary to reach one's goals. Additionally, adapting and putting oneself in uncomfortable situations are essential to growth. The speaker's business strategy has evolved with the market, and they now focus on virtual wholesaling and teaching their team to close deals over the phone.
Expanding Real Estate Business Beyond Local Markets with Technology: A real estate entrepreneur in Phoenix is growing his business by training his team to wholesale properties in other locations using virtual communication tools like Skype. Despite skepticism, he's found success in conducting deals and acquiring properties remotely, focusing on markets with lower competition and costs.
Real estate entrepreneurship can be expanded beyond local markets through effective use of technology, specifically virtual communication. This entrepreneur, based in Phoenix, is growing his business by training his team to wholesale properties in Chicago and other Midwest locations. He aims to own 50 units by age 50 and encourages his team to invest as they learn the ropes. Despite skepticism about virtual deals, the entrepreneur has found success in conducting listing presentations and closing deals over Skype from Hawaii. By focusing on markets with lower competition and costs, he's built a profitable business with minimal additional expenses. His team in Chicago meets weekly via Skype to discuss Key Performance Indicators and goals. One of their successful deals was a hotel in Chicago, which they acquired through a phone contract and had their attorney take down. This virtual business model allows for exponential income growth and high profit margins.
Building strong relationships through ethical business practices: Successful real estate investing involves putting the best interests of all parties involved first, negotiating for their benefit, and maintaining a strong subconscious belief in the value of giving and hard work.
Successful real estate investing involves building strong relationships and providing excellent service to both buyers and sellers. In this discussion, the investor shared an experience of purchasing a property from an older woman who initially asked for a higher price. Instead of pushing for a lower price, the investor tried to negotiate for her benefit, which not only resulted in a successful deal but also built a strong relationship. The investor's approach is rooted in the belief that putting the best interests of the parties involved comes first. Additionally, the investor emphasized the importance of maintaining a strong subconscious belief in the value of giving and hard work, which empowers and motivates them in their real estate endeavors. Overall, this investor's success in real estate is a testament to their commitment to service and ethical business practices.
Building strong relationships leads to real estate success: Providing excellent service, maintaining strong relationships, and practicing patience can lead to significant profits in real estate
When your subconscious aligns with your real estate goals, significant progress can be made. Providing excellent service is crucial, and the money will follow. In this specific deal, the speaker built a strong rapport with the seller over several months, ultimately securing a property below market value. Despite the initial low offer, the seller's life circumstances led her to agree to the sale. The speaker's emphasis on relationships paid off when they decided to list the property on the MLS and received an offer significantly above their purchase price. Although they had to pay some contingencies, they still made a profit. The speaker emphasizes the importance of maintaining good relationships and shares a portion of the profits with their attorney, ensuring his continued support and potential future business opportunities. The lesson learned from this deal is that excellent service, strong relationships, and patience can lead to substantial returns in real estate.
Patience and listening pay off in real estate: Listening to others and being patient in real estate can lead to higher returns in the long run. Find a competent CPA with real estate background for tax purposes and network/bird-dog for wholesaling deals on a budget.
Patience and listening are key in real estate investing. Marcus shared a story about a potential deal where they could have made a quick profit by flipping the property, but instead, they decided to listen to others and opted to hotel it instead. This decision led to a higher return in the long run. Another important takeaway is the significance of finding a competent CPA with a background in real estate for tax purposes. Wholesaling on a budget can be achieved through networking and bird-dogging, and finding a mentor is crucial, but one must be willing to put in the work.
Building a cash buyers list before having a deal: Building a cash buyers list increases chances of finding deals and strengthens working relationships with potential buyers
Building a cash buyers list before having a deal is a common strategy in real estate. Buyers understand that being on a wholesaler's list increases their chances of finding deals. When potential buyers call and don't have a deal to offer, they won't be upset. Instead, they should be encouraged to continue their search and provide their email address for future opportunities. This strategy proves their value to the wholesaler and builds a strong working relationship. Additionally, Marcus' favorite real estate-related book is "Rich Dad Poor Dad" by Robert Kiyosaki, and his favorite business is Power Broke by Daymond John, which resonates with starting out with limited resources and turning skills and knowledge into capital. When not engaged in real estate activities, Marcus enjoys volunteering as a football coach and riding a custom Harley, and real estate often comes up in these social settings. Ultimately, real estate is a unique profession where work and leisure activities can intertwine, providing opportunities for both personal growth and professional success.
Sharing successes in real estate investing can lead to opportunities: Sharing successes on social media or in conversations can attract potential investors. Maintain tenacity and self-belief for opportunities in real estate investing. Check out Marcus Maloney on BiggerPockets or his website for more info.
Sharing successes in real estate investing can lead to opportunities for private funding and partnerships. Sharing achievements on social media or in casual conversations can attract the interest of potential investors, who may want to be a part of your success. Marcus Maloney, a successful real estate investor, shared his experience of acquiring investors through social media connections. He emphasized the importance of tenacity and self-belief in achieving success in real estate investing. For those interested in learning more about Marcus or potentially working with him, he suggested checking out his profile on BiggerPockets or visiting his website, marcusemaloney.com. Overall, the key takeaway is that sharing your successes and maintaining a strong belief in yourself can lead to valuable opportunities in the real estate investing world.
