Podcast Summary
Making decisive actions in real estate investing: Clear vision and decisive actions, even if wrong, lead to exponential growth in real estate portfolios. Refinancing and recognizing potential wealth-building power are pivotal moments.
Having a clear vision and making decisive actions, even if they turn out to be wrong, is essential for successful real estate investing. Both Brandon and David shared stories of pivotal moments in their investing journey where they made significant decisions that led to exponential growth in their portfolios. For Brandon, it was refinancing his properties into 15-year mortgages, while for David, it was the realization of the potential wealth-building power of real estate at a young age. These moments, they emphasized, were not about having the perfect answers or solutions but rather about taking action and trusting in the power of real estate to grow in value.
Building a $50 million business and teaching a class on it: Listeners can preorder Brandon's book for exclusive access to multifamily investing classes and gain additional knowledge beyond what's in the book.
Brandon, the speaker, shared his experience of building a $50 million business, Opendoor Capital, and teaching a class on it for the JDC Mindset Academy. He spoke about the importance of bringing in partners, scaling, and working with the right people. He also announced the upcoming release of his book, "The Multifamily Millionaire," and offered a class for those who preorder it from BiggerPockets in July. The class would cover multifamily investing concepts not included in the book. Brandon encouraged listeners to preorder the book before the end of June and upload proof of purchase to gain access to the classes. The key takeaway is that Brandon is offering valuable insights and resources for those interested in multifamily investing, and attendees of the classes will gain additional knowledge beyond what's in the book.
Passive Real Estate Investing for Monthly Income: Invest in private real estate funds or high-interest private credit strategies for passive income, while experienced teams manage properties and vet borrowers.
There are various ways to invest in real estate passively and secure monthly income without dealing with tenants, maintenance, or property management. Two options include investing in a private real estate fund like PPR Capital Management or exploring high-interest rate private credit strategies with companies like Fundrise. These opportunities allow investors to earn passive income while experienced teams handle the property management and borrower vetting. Additionally, some investors may still prefer traditional real estate investing and can consider using services that help manage their properties for a fee. Overall, these options offer ways to build wealth in real estate without the typical headaches of being a landlord.
From small to large multifamily investing: A shift in approach: Start with the life you want to lead in real estate investing, not just the numbers, for greater success and passive income.
The way you approach your real estate investing business significantly impacts your success. Small multifamily investing and large multifamily investing differ not in unit numbers but in the level of involvement and management style. Small investors are hands-on and manage their properties themselves or with local property managers, while large investors syndicate and rely on big companies to manage their properties. The speaker, who started as a small multifamily investor, felt stuck and frustrated with constant fires to put out and limited passive income. He sought a performance coach and was inspired by a visit to a Grammy-winning music production team in Nashville, which had a small team of top performers who loved their work. This experience made him realize the importance of starting with the life you want to lead and the feeling it brings, rather than just focusing on the financial aspect. This new perspective led him to interview Jefferson Lilly and eventually pivot towards a larger scale of real estate investing.
Surrounding yourself with successful people can inspire growth: Realizing you're the least experienced person in a room can push you to think bigger, having a clear vision for your future is important, and taking action is key to achieving goals.
Stepping out of your comfort zone and surrounding yourself with successful people can be a powerful catalyst for growth. During interviews with mobile home park investors, the speaker was inspired by their experiences and success stories. However, it was at a real estate conference where he realized he was the least experienced person in the room. This experience encouraged him to think bigger and strive for greater success. Another key takeaway is the importance of having a clear vision for your future. The speaker read the book "Vivid Vision" during a layover and used it to paint a detailed picture of his goals for the future. Both of these experiences led the speaker to make the decision to focus on mobile home parks and build a team of experts to help him achieve his goals. Ultimately, it's more important to make a decision and take action, rather than getting stuck in indecision.
From considering various niches to deciding on mobile home parks: Clearly defining a vision and making a decisive choice is crucial for success in real estate investing. Work backwards from your goals to determine the necessary real estate acquisitions and attract team members and partners with a compelling vision.
Having a clear vision and making a decisive choice is essential for success in real estate investing. The speaker shares how he went from considering various niches in real estate to finally deciding on mobile home parks. He worked backwards from his goal of hiring a team and providing for their salaries to determine the amount of real estate he needed to acquire. This vision, which he called the $50,000,000 Surfers, became a motivating force for him and helped him attract team members and partners. The speaker emphasizes that leadership is not about having the perfect answer but about making a decision and going with it. He also mentions the importance of surrounding oneself with capable individuals, such as a wholesaler, who can help execute the vision.
Lesson from a failed partnership: Experience doesn't ensure a successful partnership. Start small and work closely before committing significant equity.
Experience and past success do not guarantee a good partnership or working relationship. The speaker learned this lesson the hard way when he entered into a 3rd, 3rd, 3rd partnership with a friend, Ed, who had a solid track record in wholesaling houses. They planned to dominate the mobile home park industry, but nothing happened due to Ed's busy schedule in his own business. The speaker emphasizes that it's essential to work with someone before making a big commitment in business, like getting married. He suggests starting small and finding ways to collaborate without giving away significant equity. In the end, they parted ways, and Ed built a team to focus on deal hunting while the speaker brought in underwriters. The speaker concludes that the unexpected experience taught him to give equity slowly and only after working with someone closely.
Discovering hidden talents and future executives: Providing opportunities for young individuals can lead to the discovery of unexpected talents and potential future executives, creating meaningful connections and benefiting the business.
Even when things may not go as planned, such as an internship failing to meet initial expectations, unexpected leaders can emerge and valuable relationships can be formed. The speaker's experience shows that by providing opportunities for young and hungry individuals, one can discover hidden talents and potential future executives. This approach not only benefits the business but also creates meaningful connections that can last a lifetime. Additionally, the use of a "Hunger Games" style contest can add an element of competition and determination, ultimately leading to the discovery of valuable team members. Through this experience, the speaker learned the importance of giving opportunities to those who may not have initially seemed like the best fit, but who could surprise you with their skills and leadership abilities.
Maximize profits in real estate through tax savings and efficient insurance: Defer capital gains taxes with 10/31 exchanges, save on landlord insurance with Steadily, and earn passive income with Connect Invest.
Successful real estate investing involves maximizing profits through tax savings and efficient insurance coverage. 10/31 exchanges, facilitated by companies like First American Exchange, allow investors to defer capital gains taxes while expanding their rental property empires. Meanwhile, platforms like Steadily offer fast and affordable landlord insurance, saving time and money. Additionally, passive income through short notes with Connect Invest provides an alternative to traditional real estate ownership, offering monthly returns without the hassle of managing properties. Networking and learning from peers through events like masterminds can also contribute to taking your business to the next level.
Partnering with industry veterans for exponential growth: Fear of sharing equity can limit growth, but partnering with top talent can lead to doubling or tripling the number of deals.
Partnering with the right people can lead to exponential growth in real estate investing. This was exemplified by the speaker's experience of teaming up with industry veteran Brian Murray. Initially, the speaker was hesitant to give up equity due to fear of losing control and resources. However, a simple question helped shift his perspective - if bringing in top talent could lead to doubling or even tripling the number of deals, why not do it? The first deal they attempted together had some hiccups, but they learned valuable lessons and went on to secure what may be their best deal yet. The second deal, however, resulted in a significant loss. Despite the setback, the speaker emphasizes the importance of taking action and learning from mistakes. Overall, the key takeaway is that the fear of sharing and partnering can be limiting, but the potential rewards of working with the best in the industry can far outweigh the costs.
Learning from past mistakes in real estate: Making mistakes in real estate can provide valuable lessons and clarify goals. Consistently generating leads, analyzing them, and pursuing deals can lead to success.
Making mistakes in real estate can lead to valuable lessons and greater clarity. The speaker shares an experience of losing $50,000 on a deal due to unexpected septic tank issues. Instead of being disheartened, they used this mistake to clarify their goals and focus on mobile home parks with city sewer and water, tenant-owned properties, and specific populations. This mistake helped them become the best in the country at what they do. Another lesson is the importance of consistency in generating leads, analyzing them, making offers, and pursuing deals to ultimately land the ones that are desired. These principles have led to their success in real estate.
Consistent process leads to real estate success: Analyze 30 deals to make 10 offers, close 1 deal. Generate 100 leads/month to close 1 property/month. A clear process and consistency are key to success in real estate.
Success in real estate, or any business for that matter, is not an accident but rather a result of a consistent and well-defined process. The speakers in this discussion emphasized the importance of analyzing a sufficient number of deals to find the right opportunities. They shared that they aim to analyze around 30 deals to make 10 offers and eventually close one deal. To get to this point, they need to generate around 100 leads per month, 70% of which may not be viable. Therefore, to close a property every month, they need a steady stream of 100 leads. By following this process and staying consistent, they have been able to surpass their initial goal of $50 million in real estate transactions within 3 years and now manage over 1600-1700 units. The lesson here is that having a clear and executed process is crucial for achieving success.
Creating roles for employee happiness: Prioritizing employee happiness and work-life balance leads to increased productivity and loyalty. Adapting roles to suit individual needs can boost engagement and success.
Prioritizing employee happiness and work-life balance can lead to increased productivity and employee loyalty. This was exemplified when Ryan, a lead underwriter and deal finder at Opendoor Capital, expressed his desire to step back from full-time work due to stress and a longing for personal pursuits. Instead of pushing him to continue working long hours, the founder of the company, Jason, worked to create a role for Ryan that allowed him to do what he loved while still contributing to the company. This not only made Ryan happier and more engaged, but also allowed Walker, who thrived in an 80-hour work week, to step up and excel in his role. This experience taught Jason that employees don't work for him, but rather, he works for them, and his job is to ensure their success and happiness. By implementing systems and a management structure, the company was able to expand and grow while allowing Jason to work fewer hours. This approach not only benefited the employees and the company, but also reinforced the importance of prioritizing work-life balance and employee happiness.
Implementing EOS leads to business freedom and growth: EOS clarifies goals, aligns teams, and tracks progress, enabling business owners to save time and see growth.
Implementing a management system like EOS (Entrepreneur's Operating System) can lead to freedom and growth for a business, even for a solopreneur. The system clarifies goals, aligns the team, and tracks progress, freeing up time for the business owner. The speaker, who uses EOS for Opendoor Capital, saw a significant decrease in working hours and an increase in business growth as a result. The system doesn't have to be complex or corporate; it's about having a clear, trackable plan for the business. The speaker's long-term goal is to buy a $1,000,000,000 of real estate, which will create significant value for investors, and the systems and management in place will enable the growth towards that goal.
The importance of ongoing mindset coaching for business growth: Consider having a performance coach for goal setting, issue resolution, and regular growth check-ins to potentially boost revenue
Mindset coaching played a crucial role in building and growing a $50 million real estate business. The speaker emphasized that coaching is not just about solving a quick problem but rather an ongoing process of maintenance and growth. He shared his personal experience of how meeting with a coach every couple of weeks helped him navigate challenges and achieve success. He encourages listeners to consider having a performance coach to help them set goals, work through issues, and decompress, potentially leading to significant revenue growth. The speaker also plans to share more about building a real estate team and scaling in upcoming episodes.
Connect with investor-friendly agents for successful real estate investing: To achieve financial freedom through real estate investing, consistently be in the market. Find investor-friendly agents using BiggerPockets Agent Finder for expert guidance and confident decisions.
Achieving financial freedom through real estate investing isn't about market timing, but rather about consistently being in the market. The best investors understand this principle. If you're eager to enter or expand your real estate investing journey, finding an investor-friendly agent is a crucial next step. With BiggerPockets Agent Finder, you can quickly connect with such agents by visiting biggerpockets.com/deals and providing some details about your desired investment location and property type. These local market experts can guide you through neighborhoods, analyze numbers, and help you make confident decisions. This free resource is exclusive to biggerpockets.com/deals. Remember, the content provided is for informational purposes only, and past performance doesn't guarantee future results. Always consult with qualified advisors before investing, and only risk capital you can afford to lose. BiggerPockets LLC disclaims any liability for damages arising from the use of information presented in this podcast.
