Podcast Summary
Identifying and Focusing on Your Highest and Best Use in Real Estate Investing: Successful real estate investors focus on their unique strengths and resources to maximize investment opportunities. Understand your highest and best use and adapt accordingly.
Successful people take action on their ideas and don't procrastinate. This was a recurring theme during the Bigger Pockets Podcast Show 4 45, where Brandon Turner interviewed his friend and musician, Chris Manifest. Chris shared his experiences in the music industry and how he's found success by diversifying his income streams, including real estate investment. Brandon and Chris also discussed the importance of identifying and focusing on your highest and best use when it comes to investing in real estate. This means understanding your unique skills and resources and using them to maximize your potential. For some, this might mean actively seeking out deals, while for others, it might mean investing passively through funds or other means. The episode also touched on the topic of turnkey versus non-turnkey properties and cash flow versus equity. Chris shared his perspective as a new real estate investor and the lessons he's learned so far. Overall, the episode provided valuable insights for both new and experienced real estate investors. The quick tip for the episode was to ask yourself if you're currently focusing on your highest and best use when it comes to real estate investing. By understanding your unique strengths and resources, you can make the most of your investment opportunities. Remember, everyone's path is different, and only you can know what's best for you.
Exploring Different Ways to Level Up Real Estate Investing: Access high-quality data for off-market deals, invest passively with experienced teams, or try turnkey rental properties to expand your portfolio and achieve financial growth.
There are various ways to level up your real estate investing game, whether it's through accessing high-quality, reliable data for off-market deals or investing passively with experienced teams. DealMachine offers an extensive database of contact information and filters for easier lead management, while PPR Capital Management provides passive income opportunities through real estate notes and commercial properties. Additionally, Rent to Retirement offers the chance to invest in turnkey rental properties with little to no money down. Chris Greenwood, a top 40 Billboard charting artist and real estate investor, shares his experiences and insights from his successful career in music and real estate. Overall, these resources and strategies can help investors expand their portfolios and achieve financial growth.
Gradually pursuing your passion: Consider gradual steps to pursue your passion, build other sources of income, and weigh potential risks before quitting a stable job.
Following your passion doesn't have to mean quitting your job right away. The speaker in this conversation shares his experience of gradually leaving his stable job to pursue music, but admits that he would have been better off taking smaller steps and ensuring a steady income before making the leap. He encourages listeners to plan carefully, build other sources of income, and consider the potential risks before quitting a stable job to pursue their dreams. While it's important to feel the fear and take action, it's equally important to be wise and prudent in the process.
Signing hasty deals can lead to unfavorable outcomes: Consider financial stability before making decisions, take time to explore options, and avoid quitting a job without a safety net.
Making hasty decisions based on emotions, particularly when financial stability is at stake, can lead to unfavorable outcomes. The speaker, Chris, shares his experience of signing a record deal out of desperation due to a lack of income, only to realize later that it was not beneficial. He suggests that having a steady income stream and taking the time to consider all options can help make more informed decisions and avoid unnecessary stress and hardships. Chris also emphasizes that the stories of success we often hear are exceptions, not the rule, and that quitting a job to pursue a dream without a safety net is not always the best choice. Instead, he recommends finding a job that allows flexibility and trying to borrow money as a self-employed person as viable alternatives.
Enjoying the journey of real estate investing: Stay positive, learn from experiences, and understand that setbacks are a natural part of the real estate investing process.
The journey of real estate investing is more important than the destination. Happiness and success are not solely dependent on achieving a specific goal, such as a lucrative real estate deal. Instead, it's essential to enjoy the process and learn from experiences, even when they don't go as planned. The speaker shared his experience of renting out his first condo, which led to a successful long-term investment. However, he also encountered challenges with tenants, which could have been discouraging but instead served as learning opportunities. The speaker emphasized that everyone encounters setbacks, and the key is to stay positive and keep moving forward. Additionally, he noted that negative experiences are often shared more frequently than positive ones, creating a skewed perception of the risks involved in real estate investing.
Overcoming Challenges in Real Estate Investing: Real estate investing involves risks, but potential rewards include income generation, depreciation, and wealth growth. Turnkey properties offer passive income and professional management, while prudent debt use and risk avoidance protect portfolios.
Real estate investing can present challenges, but the potential rewards far outweigh the risks. The speaker shared a personal experience of dealing with a difficult tenant who left their rental property in a state requiring extensive cleaning and repairs. Despite the inconvenience, he saw it as a learning experience and an opportunity to grow. He emphasized that such incidents are not uncommon and should not deter aspiring investors. In fact, successful people often avoid high-risk ventures like buying lottery tickets, while the risks of real estate investing are worth taking due to the advantages of income generation, depreciation, and wealth growth. The speaker also mentioned his preference for passive investing through turnkey properties, where the deal is already done, and professional management companies handle the details. He advised being prudent with debt and avoiding unnecessary risks to protect one's portfolio. Turnkey real estate refers to properties that are already renovated and tenanted, allowing investors to start earning income immediately without the hassle of renovations or finding tenants.
Pros and Cons of Investing in Turnkey Real Estate: While turnkey real estate investments offer convenience and good ROI, they may not provide significant appreciation for wealth building, especially in certain locations.
When it comes to investing in turnkey real estate properties, there are pros and cons to consider. The speaker, Chris, shared his experience of using a trusted referral to find a reliable turnkey company, and while he found the ROI to be good, he noted that appreciation has not been as significant as he had hoped. David, a real estate expert, explained that appreciation is a crucial factor in building wealth through real estate and that in most cases, it dominates over cash flow over a long period. However, the reason why some turnkey properties may not appreciate as much could be due to their location, such as in the Midwest, where the value may already be added by the time the investor purchases the property. It's essential to weigh the benefits of turnkey properties, including the convenience and time savings, against the potential for greater appreciation through other investment strategies.
Real Estate Investing: Cash Flow vs. Appreciation: Investors can prioritize cash flow with turnkey properties or seek better deals on the open market based on personal circumstances, time, and goals. Understanding your priorities and resources is key to successful real estate investing.
When it comes to real estate investing, there's no one-size-fits-all approach. Some investors may prioritize cash flow and opt for turnkey properties in areas with lower appreciation rates, while others may prefer to put in the work to secure a better deal on the open market. The choice ultimately depends on an investor's personal circumstances, time availability, and investment goals. Furthermore, it's important to note that turnkey companies can offer significant value by providing ready-to-rent properties, but they may not always offer the best deals due to their profit margins. For those with the time and inclination to hunt for deals, buying directly from the MLS or working with a real estate agent can yield better returns. Ultimately, the key is to find a strategy that aligns with your strengths, interests, and long-term goals. Whether that means focusing on cash flow, appreciation, or a combination of both, the most important thing is to approach real estate investing with a clear understanding of your priorities and the resources at your disposal.
From struggling musician to successful course creator: Sharing knowledge and expertise can lead to financial security and growth for artists and creatives through various income streams like courses, merchandise, YouTube, Spotify, and sync licensing.
Creating and selling information products, like courses, can be a lucrative alternative or supplement to traditional income streams for artists and creatives. The speaker shared his personal journey from struggling musician to successful course creator, which started when he received frequent questions about how to make money in the music industry. He realized that teaching what he knew could help many artists, and with a minimal investment in equipment and resources, he was able to make significant sales. The speaker emphasized the importance of sharing knowledge and not undervaluing it, as well as the various income streams that can be generated from one creative work, such as merchandise, YouTube, Spotify, and sync licensing. By teaching others how to leverage these opportunities, the speaker and his wife have built successful info product businesses together. This story highlights the potential financial security and growth that can come from sharing expertise and building a community of learners.
Provide authentic value to stand out in online business: Authenticity, genuine desire to help, and unique value proposition are keys to success in online business. Offer something unique and valuable, rather than competing on price or replication.
Creating and selling online courses or providing value through digital platforms can be a profitable venture, but it requires authenticity, a genuine desire to help others, and a unique value proposition. The speakers in the discussion emphasized the importance of having a heart in the right place and providing real value to stand out in a crowded market. They shared their experiences of finding success by focusing on helping people rather than just making money. The most effective online entrepreneurs differentiate themselves by offering something unique and valuable, rather than trying to compete by undercutting prices or replicating what others are already doing.
Building trust in online courses and services: Provide value, build relationships, and be authentic to build trust when selling online courses or services.
Authenticity and building trust are crucial when selling online courses or providing services, especially in industries known for taking advantage of vulnerable individuals. The speaker shared his frustration with online courses that don't deliver on their promises and emphasized the importance of accountability and transparency. He also highlighted the importance of giving value and building relationships before selling. The speaker's mission is to help musicians avoid getting taken advantage of by record labels, and he emphasized the need for trust and transparency in this industry. Additionally, the speaker recommended PropStream for finding off-market real estate deals due to the lack of inventory in the market. Overall, the key takeaway is to build trust, provide value, and be authentic when selling online courses or services.
Investing in rent to own single family homes with IDG: Secure discounted properties with tenants, generate immediate cash flow, and help tenants become homeowners for potential equity and appreciation
IDG's got a unique opportunity for investors with their rent to own single family homes in Florida. You'll get to secure brand new properties at aggressive prices, with tenants already in place, generating immediate cash flow. Plus, there's built-in equity and appreciation, helping tenants become homeowners while you build wealth. Meanwhile, when it comes to dealing with criticism or hate, the white Christian rapper shares his experience. He suggests focusing on your goals and staying mission-minded, rather than letting negativity get in your head. He's found that the power of the mind and staying true to your dreams can help you overcome any discouragement. So whether you're investing in real estate or pursuing a creative passion, remember to keep your eyes on the prize and not get bogged down by the naysayers.
From adversity to success: Fueled by determination: Determination fuelled by personal experiences and a desire to prove doubters wrong can help turn challenges into successes.
Perseverance and a strong drive to succeed, fueled by personal experiences and a desire to prove doubters wrong, can help turn "maybes" into "yeses" and turn adversity into success. The speaker's experiences with loss and bullying fueled his determination to be successful and overcome challenges. He encourages others going through tough times to keep pushing through, lean on supportive communities, and never give up on their dreams. As a believer, he emphasizes that a fighter is someone who never quits, and that each person's story is not yet complete. Even in the midst of pain and hardship, there is a light at the end of the tunnel, and staying in the game and continuing to push forward is key.
Embracing the messy middle for growth: Use pain as motivation, make smart financial decisions, and embrace challenges for a strong future
The "messy middle" of life, which can be a challenging and painful experience, is an opportunity for growth and strength. Pain, rather than being numbed out, should be used as fuel to overcome obstacles and create something meaningful. Additionally, debt can be a powerful tool when used wisely on assets that produce cash flow, but it's essential to avoid over-leveraging and protect against financial risks. The author's recent book, "From Red to Black," emphasizes the importance of getting out of bad debt and building wealth not just for oneself but also for future generations. Overall, the key takeaway is to embrace challenges, use pain as motivation, and make smart financial decisions to build a strong and prosperous future.
Increase income for financial improvements: Focus on earning more money through various means and controlling spending for significant financial gains
Focusing on increasing income rather than solely cutting expenses can lead to significant financial improvements. The speaker emphasizes the importance of generating more money through various means, such as getting a second job, selling unused items, or creating a business. He also mentions the concept of selling to many instead of just one, which can lead to larger financial gains. While cutting expenses is important, the speaker suggests that the potential for greater income growth lies in creating and selling more. He also shares his personal experience of realizing the importance of knowing one's spending habits and being in control of them. Overall, the message is that taking action to increase income can lead to financial freedom.
Strike a balance between defense and offense for wealth building: Wealthy individuals prioritize personal growth and actively seek opportunities for growth and creativity to build wealth and achieve long-term financial success.
While it's important to focus on financial stability and defense in building wealth, it's equally important to be offensive and take active steps towards growth and creativity. Reading and learning new things, as well as surrounding oneself with positive influences, are key habits of wealthy individuals. These actions not only contribute to personal growth but also increase the chances of success in various endeavors, including real estate investing and personal projects. It's essential to strike a balance between defense and offense to effectively build wealth and achieve long-term financial success.
Surrounding Yourself with Supportive People for Success: Join groups of like-minded individuals, form intentional relationships, focus on helping others, and take action to build a strong community for success.
Building a strong community and surrounding yourself with supportive people is crucial for success, especially in the battle against self-doubt and negativity. This can be achieved by joining groups of like-minded individuals, being intentional about forming relationships, and focusing on how you can help others rather than just asking for help. Additionally, successful people take action and don't procrastinate, so it's important to take the first step and act upon your ideas. A favorite book recommendation for real estate success is "Money People Deal" by Stefan Arnio.
Story of a Canadian real estate investor's turnaround: Success in real estate investing requires resilience, perseverance, and taking action, even during uncertain times.
Stories have the power to inspire and motivate us, even if they're not traditional "best content." The speaker shared a story about a Canadian real estate investor who turned his situation around by putting on overalls and working on his property himself, despite setbacks and financial struggles. This story resonated with the speaker and inspired him to continue pursuing his own real estate investments. The speaker also emphasized the importance of resilience, perseverance, and taking action in achieving success in real estate investing. Additionally, the speaker mentioned his hobbies, including boxing on the Oculus Quest, and shared his belief that successful real estate investors are those who stay committed and take action, even when faced with uncertainty.
The Importance of Long-Term Holding in Real Estate Investing: Successful investors emphasize the importance of patience and long-term holding in real estate, despite doubts and uncertainty. Buying properties can cause sticker shock, but the potential for significant gains over time is substantial.
Real estate investors often regret selling properties they once owned, as the potential for significant gains over time can be substantial. Additionally, every investor has doubts about the cost of potential purchases and the possibility of market crashes. However, holding onto properties for the long term is a key strategy for success. Chris, a successful investor and musician, shared his experiences and wisdom on these topics during a BiggerPockets Radio interview. He emphasized the importance of patience and long-term holding, as well as the common feeling of sticker shock when buying properties. Chris's book, "Red to Black," is available for free on his website and offers further insights into his investment philosophy. Overall, the interview highlighted the importance of staying the course in real estate investing, even when faced with doubts and uncertainty.
