Podcast Summary
Choosing Our Emotions and Approach During Challenging Times: Defining our emotions and approach can positively impact relationships and business dealings in real estate. Personalized offers can lead to successful deals even during tough economic conditions.
We have the power to choose what excites us and how we approach situations, even during challenging times. Brandon Turner shared this insight during the Bigger Pockets podcast episode 428, where he discussed his excitement for Christmas despite a rough year. He emphasized that we can define our emotions and make ourselves feel a certain way, which can positively impact our relationships and business dealings. This was evident in their conversation with their guest, Rodney Ross, a real estate investor in the Philadelphia area. Rodney shared his relational approach to real estate investing, explaining how making offers with a personal touch can lead to deals being accepted despite lower prices. This episode serves as a reminder that our mindset and approach can significantly impact our success in real estate and beyond.
From losing it all to building a successful real estate career: Discover real estate through agents, learn from mistakes, do fundamentals better, stay persistent, leverage technology tools, and build transparent relationships.
Technology and innovative financing options are making it easier than ever to get started in real estate investing. Rodney, a guest on the Bigger Pockets podcast, shared his story of discovering real estate through a Keller Williams agent in college and making his first investment at age 20. However, his experience didn't start smoothly as he lost everything after taking over a Section 8 rental property. Fast forward to today, Rodney's success story is a testament to the power of learning from mistakes and staying persistent. He emphasized the importance of doing the fundamentals better and being open and transparent in building relationships. Meanwhile, technology tools like DealMachine and Rent to Retirement offer unlimited contact information and no money down investment opportunities, making it easier for new investors to get started. Additionally, high-speed internet provider Quantum Fiber is offering fast and reliable internet services to enhance the living experience for multifamily property residents. So, whether you're just starting out or looking to elevate your existing portfolio, there are plenty of resources and opportunities available to help you succeed in real estate.
Unexpected challenges with real estate investing: Having a financial cushion and understanding potential risks are crucial for successful real estate investing
While investing in real estate can be profitable, it's important to have a solid financial foundation and be prepared for unexpected challenges. The speaker shared an experience where they lost a significant amount of money on a property due to unexpected issues with a Section 8 tenant and lack of funds for repairs. Despite this setback, they persisted and eventually became a real estate agent to learn the industry and build up savings to invest again. Looking back, they believe they could have salvaged the deal with more initial capital. Therefore, having a financial cushion and understanding potential risks is crucial for successful real estate investing.
Starting small and learning through experience leads to growth in real estate investing: Beginning with wholesaling, the speaker gained experience, learned from mistakes, and built a team to successfully buy, rehab, and rent out properties in Philadelphia's market
Starting small and learning through experience can lead to significant growth in real estate investing. The speaker began by wholesaling properties in Philadelphia around 2013, eventually buying a group of older, run-down buildings with liens on them. By taking control of the sales process and learning from mistakes, they were able to make a profit and gain confidence. In 2015, they used this experience to start buying and redeveloping properties with partners, leading to a steady rental portfolio of almost 20 units by 2017. The key to success was a combination of persistence, learning from mistakes, and building a strong team. The speaker emphasized that even in older, run-down buildings, there is potential for profit in Philadelphia's real estate market. While most properties require extensive rehab, the cash flow is good, and there is potential for significant returns. The speaker now holds both a real estate and general contractor's license and focuses on retail sales and rehabs.
Effective communication and defined roles in real estate partnerships: Clearly define roles, communicate effectively, and follow up persistently for successful real estate partnerships. Use a mix of networking and MLS listings, and make low initial offers with regular follow-ups.
Effective communication and clearly defined roles are essential in a successful real estate partnership. The speaker and their partner split responsibilities based on their strengths and weaknesses, with the speaker focusing on construction and communication, while their partner handles finishes and design. They are 50-50 partners but acknowledge the need to more closely define their roles moving forward. Their deal-finding strategy involves a mix of networking and MLS listings, with a focus on building rapport and asking the right questions to potential sellers. They often make low initial offers and follow up regularly until the deal is either sold or they move on. They keep track of leads using a simple CRM system. A valuable tip from the speaker is to follow up with sellers regularly after making an offer, as deals can often fall through and may eventually come back to the table. This persistence and upfront honesty have led to many successful deals for the partnership.
Assessing wholesaler reliability: Ask questions to gauge wholesaler experience and commitment, clarify roles, and filter out daisy chainers to build successful partnerships.
Building relationships with good wholesalers is crucial for finding off-market real estate deals. To find a reliable wholesaler, ask the right questions during initial conversations to assess their experience and commitment. Be clear about your role as a backup buyer and express your ability to close deals. Remember, only a few wholesalers are legitimate and serious about their deals, so it's essential to filter out the daisy chainers. By demonstrating your expertise and professionalism, you'll increase your chances of forming successful partnerships.
Finding the right people in real estate investing: Ask the right questions, mingle with many, perfect skills, show integrity, and understand challenges for successful connections in real estate investing.
Building meaningful connections is essential for success in real estate investing, whether it's through networking with wholesalers or communicating with sellers. To find the right people, one must ask the right questions, mingle with a large number of individuals, and perfect one's own skills and desires. It's important to remember that not everyone is a good fit, and it may take talking to many people to find the best partners. Additionally, showing integrity and making the process as easy as possible for others can lead to successful deals. Wholesaling, in particular, can have a bad reputation, but when done ethically, it can be a valuable service for both parties. Ultimately, learning about people and their businesses, as well as understanding their challenges, can lead to strong relationships and more deals.
Building rapport through genuine conversations: Showing genuine interest and offering potential solutions can increase likability and lead to successful real estate deals
Building rapport and being likable can significantly increase your chances of closing real estate deals. The speaker shared a personal story about how he closed his first wholesale deal despite not having any money for proof of funds, by building a connection with the sellers through genuine conversations and asking probing questions. He emphasized the importance of not judging people and treating them as individuals, rather than transactions. By showing genuine interest and offering potential solutions to their problems, the speaker was able to close the deal and even earn a discount due to the "likability discount." So, for those looking to be more likable, the speaker advises being less judgmental, asking probing questions, and genuinely engaging with people's stories and situations.
Building authentic relationships leads to unexpected opportunities: Genuinely caring about people and showing interest in their stories can lead to successful deals and valuable partnerships in real estate investing
Genuinely caring about people and building authentic relationships can lead to unexpected opportunities and success in real estate investing. The speaker shared how treating people with respect and showing genuine interest in their stories led him to secure deals and form valuable partnerships. He emphasized the importance of being present and focused on the person in front of you, rather than just thinking about what's in it for you. This approach not only helps you stand out from others but also creates a win-win situation where both parties benefit. Whether you're dealing with motivated sellers, attorneys, or mentors, taking the time to connect on a personal level can lead to unexpected rewards.
Strategic approach to real estate investing: discounts, refinancing, and focus on growth areas: Investing in real estate strategically involves buying discounted properties, refinancing to free up cash, and focusing on areas with increasing values. Building relationships with mentors, coaches, and local lenders can provide valuable guidance.
Successful real estate investing involves a strategic approach, including buying properties at a discount, refinancing to free up cash, and focusing on areas with increasing values. Mentorship and coaching have also played important roles in the investor's journey, providing guidance on both business and investing strategies. Local community banks can be valuable partners in refinancing, offering shorter terms but potentially higher interest rates. Building relationships with lenders and focusing on specific areas of expertise can lead to success despite the challenges.
Building authentic relationships in real estate: Focus on building genuine friendships and connections with experienced individuals in real estate. Be respectful of their time and come prepared with specific questions to increase chances of forming successful partnerships and avoiding costly mistakes.
Building authentic relationships with experienced individuals in real estate can make a significant difference in your investing journey. You don't necessarily need a formal mentorship or apprenticeship to learn from these people. Instead, focus on building genuine friendships and connections. Be respectful of their time by coming prepared with specific questions and demonstrating that you've done your own research. This approach will make you more likely to receive helpful advice and guidance. Remember, the more specific your question, the easier it is for them to provide a valuable answer. By being authentic and respectful, you'll increase your chances of forming successful partnerships and avoiding costly mistakes.
Building strong relationships in real estate: Investing in relationships leads to profitable deals and long-term clients in real estate. Identify areas with potential for growth using resources like the MLS and prioritize building trust and genuine care over transactional deals.
Building strong relationships in the real estate industry is crucial for success, especially for those not affiliated with large iBuyer companies. Agents and the relationships they build with clients can significantly impact the amount of money one can make. Technology may be able to facilitate transactions efficiently, but it cannot replace the trust and genuine care that comes with human interaction. Investors who prioritize relationships over transactional deals will likely see a greater return in the form of referrals and long-term clients. This approach may require patience and faith, but the rewards can be substantial. In the real estate market, finding profitable deals requires careful consideration and an understanding of market trends. For example, investing in properties located in areas with potential for growth can lead to significant appreciation and higher rents. Using resources like the Multiple Listing Service (MLS) can help identify such opportunities, and looking for areas with promising future prospects is a key strategy. Ultimately, success in real estate comes down to a combination of building strong relationships and making informed investment decisions.
Acting quickly and building strong relationships with agents: Successfully house hacking involves acting fast, negotiating directly with agents, and using FHA 203k loans for minimal upfront costs. A reliable contractor and lender are crucial for a smooth transaction.
Successful real estate investing often involves acting quickly and building strong relationships with agents. The speaker shared an experience of purchasing a property above the listed price due to its perceived value and strong desire to secure the deal. They negotiated directly with the agent, offering a higher price and providing assurance of a smooth transaction. The FHA 203k loan was used for the purchase and subsequent rehab, allowing for minimal out-of-pocket expenses. This strategy, known as house hacking, can help investors buy, rehab, and finance properties with minimal upfront costs. The speaker also emphasized the importance of having a reliable contractor and lender to make the most of this opportunity.
Investing in Basement Units: Challenges and Opportunities: Adding basement units as investment properties can offer extra living space and rental income, but the process involves obtaining permits, managing construction, and considering financial factors. A potential business opportunity lies in funding and managing ADU building and rental for property owners.
Basements can be an excellent investment opportunity in real estate, particularly for adding additional living units, but they are rare in California due to its geography. The speaker shared his experience of adding a basement unit to his property and the challenges he faced, including the need for permits and the financial considerations. He also discussed the potential business opportunity of a company funding and managing the building and rental of Accessory Dwelling Units (ADUs) for property owners, taking a percentage of the rent as payment. The speaker also reflected on the lessons learned from his experience, including the importance of believing in the investment and the challenges of managing a Section 8 tenant during the eviction moratorium. Overall, the conversation highlighted the potential benefits and challenges of adding basement units as investment properties.
Believing in the value of a property can lead to significant returns: Staying the course, believing in a property's value, and continuously learning can lead to significant long-term returns in real estate investing.
Having faith in the value of an investment property, even if it's priced lower than what you believe it's worth, can lead to significant returns in the long run. The speaker shared his personal experience of purchasing a property below market value and seeing it appreciate significantly in just a few years. He emphasized that real estate investing is a long-term wealth-building strategy and that it's essential to consider the big picture rather than focusing solely on initial returns. The speaker also recommended two books, "Rich Dad Poor Dad" and "The E-Myth," which have had a significant impact on his investing and business mindset, respectively. Overall, the discussion highlighted the importance of staying the course, believing in the value of your investments, and continuously learning and growing as an investor.
Managing emotions in real estate investing: Successful investors persist and manage emotions, learn self-awareness, take breaks, and connect with others through social media.
Successful real estate investors persist in the face of challenges and learn to manage their emotions. David Green, a real estate investor, shared his experience of sticking with it even when the hardest part became managing his emotions rather than the numbers. He emphasized the importance of self-awareness and taking a step back when needed. Green also highlighted the importance of social media for connecting with others in the industry and learning from their experiences. To learn more about Green and his journey, follow him on Instagram @PhillyRealEstateBoss or visit his website limitlessre.com. Remember, the key to success in real estate investing is not just about the numbers, but also about managing yourself and staying in the game.
