Podcast Summary
Finding Your Path to Success: Personal Situations and Investing: Success isn't about following someone else's path exactly. Discover what you love and make it profitable, whether through a job or real estate investments. Make money and invest it wisely for greater success.
There's no need to follow someone else's path exactly, even if you admire their success. Personal situations vary greatly, and what works for one person may not work for another. Additionally, this conversation reminded us of the importance of making money and investing it wisely. Whether through a job or real estate, the synergy between earning income and investing it can lead to greater success. David is currently hiring new team members, making this an opportune time for those looking to make a career shift. Ashley's episode provided valuable insights on discovering your niche and getting started in multifamily investing. Overall, the discussion emphasized the importance of finding what you love and combining it with a profitable venture.
Identifying and solving problems in competitive markets: Find success in real estate investing by identifying and solving problems in competitive markets. Use DealMachine for lead generation and access off-market deals, and consider Rent to Retirement for no-money-down new construction rental properties.
Ashley Wilson shared valuable insights on finding great real estate deals in competitive markets during her appearance on the BiggerPockets podcast. She emphasized the importance of identifying and solving problems as a key strategy for successful investing. Wilson also highlighted the game-changing benefits of using DealMachine for lead generation and contact information, allowing investors to access high-quality data for off-market deals at no extra cost. Additionally, she introduced Rent to Retirement as a resource for buying new construction rental properties with no money down. By combining these strategies, investors can significantly enhance their lead generation and deal-making capabilities. Listeners are encouraged to take notes and apply these powerful tips to their own real estate investing journeys.
Leveraging others' expertise for rapid growth in real estate investing: Investors can accelerate their learning curve and progress by 'stack hacking', or partnering with experienced individuals to tackle larger projects and gain valuable experience.
Instead of gradually scaling up in real estate investing, such as going from a duplex to a quad to an 8-plex, some investors choose to rapidly advance their growth by harnessing other people's experience and expertise. This approach, referred to as "stack hacking," can significantly reduce the learning curve and enable faster progress. For instance, one investor started with short-term rentals, then transitioned into long-term rentals, flipping, and eventually large multifamily projects. They did this by managing a $2 million rehab for a multimillion-dollar multifamily project, which involved building a new building from the ground up and renovating an existing one. Despite encountering challenges like a fire during the rehab, the investor was able to increase rents and create forced depreciation, leading to a successful investment. Ultimately, stack hacking can help investors bypass the traditional linear progression and achieve exponential growth in their real estate careers.
Identifying strengths and passions for real estate success: Align your strengths and passions with the right opportunities for real estate success. Define your perfect day and adjust your business structures accordingly.
Success in real estate investing, like in any other business or aspect of life, depends on identifying your strengths, passions, and aligning them with the right opportunities. Brandon's journey into multifamily investing, fueled by his background and experiences, is a testament to this. Ashley's coaching approach, which involves helping individuals define their perfect day and adjusting their business structures to align with it, further emphasizes this idea. Often, people may feel stuck or unsatisfied with their current situation, but with a little guidance and perspective, small adjustments can lead to significant improvements and success. As Brandon and Ashley's movie-quoting friendship illustrates, everyone has unique perspectives and strengths, and recognizing and leveraging them is essential in the world of real estate investing.
Building wealth through smaller real estate investments: Consider the stacking method for increasing cash flow and spending more time with family, starting with smaller investments and gradually moving on to larger multifamily projects.
When it comes to achieving financial freedom through real estate investing, the approach and mindset required can vary greatly depending on an individual's personal circumstances and goals. For those looking to increase cash flow and spend more time with their family, the speaker suggests considering the stacking method, which involves building wealth through smaller investments before moving on to larger multifamily projects. It's important to note that different strategies can yield different results in terms of cash flow and timeline. For instance, some strategies, like mobile home parks or certain types of multifamily projects, may not provide significant cash flow during the investment period but offer substantial returns later on. Ultimately, the best approach depends on an investor's current life stage, financial situation, and long-term objectives.
Real Estate Investing Strategies: Discipline and Persistence: Successful real estate investing requires discipline, aligning interests with investors, and persistence in finding large multifamily deals.
There are various ways to build income through real estate investing, and the strategy one chooses depends on individual circumstances and goals. The speaker shares an example of a successful investor who structured his life early on to reap greater rewards on the back end, using a platform like Opendoor Capital. The investor emphasizes the importance of being disciplined and aligning interests with investors. The speaker then discusses their experience in acquiring a 150-unit multifamily property in Houston after a two-year search. They learned that the process of finding a large multifamily deal requires persistence and patience, as opposed to the more frequent success rate on the single-family side. Despite the challenges, they ultimately closed on the property in September 2021.
Improve underwriting process and letter of intents for successful property transactions: Focus on deals that fit your criteria, strengthen letter of intent process, and stay disciplined to increase chances of successful property transactions.
Analyzing and refining your underwriting process and tightening up non-binding letters of intent can increase the likelihood of successful property transactions. The speakers learned this lesson through their experience with a multifamily property, where they discovered that they were spending too much time on deals that didn't fit their criteria and that letter of intents are non-binding and can be broken. By focusing on deals that met their criteria and improving their letter of intent process, they were able to strengthen their offering process and increase the percentage of verbal offers that led to written offers. Additionally, they emphasized the importance of being aware of the competitive real estate market and avoiding spreading yourself too thin by trying to consider every potential deal. Instead, it's recommended to stay disciplined and focused on specific types of properties when starting out.
Find a niche in real estate investing to stand out from competition: Specializing in a specific area of real estate investing can help you become a go-to person, increase focus, and differentiate yourself from others.
Being focused and specialized in a specific area of real estate investing can help you stand out from the competition and increase your chances of getting deals. By owning the mindshare in someone's head, you become the go-to person for certain types of properties. This not only helps you stay disciplined and avoid distractions but also signals to brokers and other investors that you are a serious buyer. Additionally, embracing challenges and tackling difficult projects can give you a competitive edge. By going after properties that require more work or are considered less desirable by others, you can differentiate yourself and potentially dominate the market in that area. So, when starting out, consider finding a niche that requires more effort or expertise, and make that your specialty. This can help you succeed in the long run.
Specialize in a niche to stand out in real estate investing: By targeting specific, often overlooked or challenging properties, investors can differentiate themselves in the industry and build a reputation as experts in their niche, leading to successful deals.
Being crystal clear on your criteria for investing and positioning yourself as a solution to someone else's problem can lead to successful deals in real estate. By targeting specific, often overlooked or challenging properties, investors can differentiate themselves in the industry and build a reputation as experts in their niche. For instance, Ashley focuses on properties with tenants requiring eviction, while Brandon and Maui target vacant mobile home parks and high-end properties, respectively. By eliminating the majority of competition through specialized strategies, these investors have scaled their businesses effectively.
Identify your unique skills and experiences in real estate investing: Leverage your strengths to form partnerships, learn from experts, expand your network, or invest passively through platforms. Utilize resources to maximize returns and savings.
Everyone has unique skills and experiences, and identifying these strengths can lead to valuable partnerships and opportunities in real estate investing. Whether it's house hacking or multifamily investing, leveraging your expertise can open doors to learning from experienced operators and expanding your network. For those who prefer a more passive role, there are also opportunities to invest in real estate through platforms like Pine Financial Group or Connect Invest. Overall, it's essential to understand what you're good at and how you can apply it to the opportunities available in the real estate market. Additionally, resources like 1031 Pros can help investors save on taxes and maximize their returns when selling properties.
Women's Underrepresentation in Real Estate and Inspiring Stories of Successful Female Investors: This book shares inspiring stories of 20 successful women real estate investors, providing valuable knowledge and motivation for women seeking to enter the industry and achieve financial freedom despite historical barriers
The book "The Only Woman in the Room: Knowledge and Inspiration from 20 Women Real Estate Investors" is an essential read for women looking to enter the real estate industry as a means to financial freedom. The book was inspired by the underrepresentation of women in real estate, particularly at industry events, and aims to highlight the stories and experiences of successful women investors. The author believes that historically, women have been discouraged from entering fields requiring a strong foundation in mathematics and finance, which are essential for real estate investing. As more women are encouraged to pursue STEM fields and gain proficiency in these areas, they will naturally enter the real estate investing space. With women currently making up a majority of the unemployment rate due to the pandemic, this book provides valuable inspiration and knowledge for those looking to make a change and regain control of their financial future.
Empowering Women Through Real Estate Investing: Women's longer lifespan and financial burden necessitate investing, but their reluctance requires genuine interest, education, and encouragement to take small steps towards financial freedom
Women's longer lifespan and subsequent financial burden in their later years present an opportunity for them to take control of their financial freedom through real estate investing. However, women's reluctance to invest, often due to a perceived reliance on their spouses, results in a missed opportunity for diversification and potential financial growth. The speaker's own experience of prioritizing outreach to men over women perpetuates this issue. To effectively engage women in investing, it's essential to approach them with genuine interest in their financial well-being, provide education in a non-pressuring manner, and encourage them to take small steps towards investment. By collectively working to bring more women to the table, we can help address this imbalance and create a more equitable financial landscape.
Transitioning to multifamily investing: Building a strong team, selecting the right market, and fine-tuning your search: To succeed in multifamily investing, focus on building a strong team, choosing the right market, and refining your search for specific assets. Resources like Brian Burke's 'Hands Off Real Estate Investor' can help guide the process.
Making the transition from smaller real estate investments to larger multifamily projects requires focus on building a strong team, selecting the right market, and fine-tuning your search for specific assets. Ashley Morris, a successful real estate investor, emphasized the importance of these steps in her experience and offers a tip sheet to guide others through the process. She also recommended Brian Burke's "Hands Off Real Estate Investor" as a valuable resource for those interested in multifamily investing. By focusing on these key areas, investors can increase their chances of success in larger projects.
Expert Brian's Informative Book for Passive Investors: Brian's book provides comprehensive knowledge for passive investors, going beyond surface-level information to ensure informed decisions.
Brian, an expert in the multifamily industry, wrote a book filled with specific and detailed information to help passive investors make informed decisions. His book goes beyond surface-level knowledge and aims to educate investors thoroughly. Meanwhile, Ashley mentioned her favorite business book, "Traction," which she finds helpful for staying focused and implementing effective systems. In her personal life, Ashley enjoys spending time with her family and competing in horse jumping, even winning the national competition a few years back. A surprising event occurred during the conversation when a tree fell through her house, but everyone was safe.
Determination is key to real estate success: Stay focused and persistent in real estate goals with a strong determination and clear 'why'
Determination plays a crucial role in the success of real estate investors. Those who are determined and have a strong "why" are more likely to take risks and persist through challenges. Determination sets successful investors apart from those who give up, fail, or never get started. To connect with Ashley, investors can find her on Instagram @badassinvestor or visit her website badashinvestor.com. Remember, not every social media account claiming to be a particular investor is authentic, so make sure to follow the correct one. Determination, a key ingredient for success in real estate investing, allows investors to stay focused and persistent in their goals.
Investing involves risks and requires careful consideration: Always consult with advisers, assess risk tolerance, and remember all investments carry risk
Investing comes with risks, and it's essential to use your best judgment and consult with qualified advisers before making any investment decisions. You should only risk capital that you can afford to lose. Additionally, BiggerPockets LLC disclaims all liability for any damages arising from reliance upon information presented in their podcast. So, while there may be valuable insights to gain from listening, it's crucial to remember that all investments carry risk, and it's up to each individual to assess their own risk tolerance and make informed decisions.
