Podcast Summary
From bankruptcy and leukemia to real estate success: Adopting a 'no bad days' attitude and creative strategies can lead to significant changes and success in real estate, even during adversity
Having a "no bad days" attitude and taking radical responsibility for your life can lead to significant changes and success, even in the face of adversity. This was exemplified by Jeffrey Holst, a real estate investor who went from bankruptcy and leukemia to having hundreds of rental units. His positive attitude and creative strategies, such as using partners and no money down deals, allowed him to overcome obstacles and thrive in the real estate industry. Adopting this mindset can help improve your own life and investing journey. Additionally, understanding your market and learning strategies for no money down deals were key topics discussed in the episode.
From Bankruptcy to Real Estate Success Story: Former bankruptcy attorney Jeff Holst turned his life around through real estate investing, building a company managing over half a billion dollars in assets and providing passive income for individuals.
Jeff Holst, a former bankruptcy attorney, transformed his life by discovering real estate investing. After going bankrupt himself due to unexpected circumstances, he was inspired by a fellow law student who was successfully flipping houses. Despite being diagnosed with leukemia, Jeff persisted and started with a small real estate investment while still in law school. His experiences taught him the importance of having multiple income streams and the potential wealth-building capabilities of real estate. Today, Jeff's company, PPR, manages over half a billion dollars in assets and provides passive income for individuals without ever missing a payment. Additionally, Quantum Fiber Internet offers high-speed internet services to enhance residents' living experiences in multifamily properties. By combining the right mindset with practical application, Jeff demonstrates the power of transforming adversity into opportunity.
Starting with a negative net worth, a determined investor buys a $30,000 condo with no credit or savings: Determination and creativity led an investor with no credit, savings, or net worth to buy a profitable real estate investment
Even with a negative net worth and no credit, determination and creativity can lead to successful real estate investments. The speaker, who had filed for bankruptcy and had a large student loan debt, started investing in real estate after moving to a new city. His first deal was a condo purchased for $30,000 with cash, despite having no credit or savings. He partnered with a friend and they each put in $17,500 to buy the property. Although his wife was not initially on board, the investment paid off and they still own the condo today, which is now worth around $150,000. The speaker's mindset was that real estate was an appreciation play, and he had been paying attention to the market for years. Despite the risks and lack of a safety net, he was confident in the buying opportunities in 2011. This experience taught him the importance of perseverance and learning from others in achieving financial success.
Creatively securing funding for real estate deals: Understand potential lenders' motivations and offer a compelling reason to invest for successful funding.
Successful real estate investing often involves a combination of smart decision-making, creativity, and the ability to build relationships. In this particular story, the speaker was able to leverage his LLC's name and a lucky opportunity to buy a second property with no money down. However, they still lacked the funds and credit to continue growing their portfolio. By thinking creatively and considering the motivations of a private money lender, they were able to secure a loan and eventually build a successful portfolio worth more than $1 million. The key lesson here is that when seeking funding, it's essential to understand the perspective of potential lenders and offer them a compelling reason to invest. This might involve providing collateral, offering a fair interest rate, or sharing in the equity of the deal. By putting yourself in their shoes and making it a win-win situation, you may be able to secure the funding you need to grow your real estate business.
The Power of Partnerships and Creative Financing in Real Estate: Forming partnerships and utilizing creative financing strategies can lead to successful real estate investing, allowing for combined debt and equity plays and minimizing personal investment.
Successful real estate investing often involves partnerships and creative financing strategies. The speaker shares his experience of forming multiple partnerships throughout his investing journey, even when he initially planned to go solo on a deal. He emphasizes the importance of helping others get into real estate and the benefits of sharing the risk and rewards with a trusted partner. The speaker also discusses his unique financing method where a partner lends the down payment and repairs money to an LLC, which then buys the property, and the partners split the profits equally. This strategy allows for combined debt and equity plays and has helped the speaker buy a significant amount of real estate with minimal personal investment. Overall, the speaker's story highlights the power of partnerships and creative financing in real estate investing.
Jeff's Infinite Investing Strategy: High Returns with Minimal Personal Risk: Jeff's strategy involves using private money, partnerships, and the BRRRR method to generate high returns for himself and investors, with minimal personal risk. Investors typically earn a fixed return of 6% and potential equity upside.
Jeff's real estate investment strategy, which he calls "infinite investing," allows him to achieve high returns for both himself and his investors through a combination of private money, partnerships, and the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat). Jeff's personal ROI is infinite since he doesn't put any money into the deals, while investors typically receive a fixed return of 6% and potential equity upside. In the last deal, investors made a 27% annualized return over a 2.5-year period. Although Jeff's strategy is challenging due to the size of the deals, which is between the large syndicators and small mom-and-pop investors, it is incredibly rewarding when managed correctly. Jeff targets markets he understands and focuses on deals that other investors aren't targeting, which he refers to as "medium multifamily." Overall, Jeff's infinite investing strategy offers a unique opportunity for investors to earn strong returns in the real estate market.
Leveraging skills and connections from a previous career in real estate investing: A background in law can be beneficial for real estate investing due to contract and mortgage knowledge. Utilize skills and connections to partner with others and invest in deals.
Leveraging one's skills and connections from a previous career, such as law, can be instrumental in finding success in real estate investing. This can be achieved by partnering with others in the industry, utilizing one's knowledge of contracts and mortgages, and even using high income to invest in other people's deals. The speaker, who is a real estate investor and a recovering attorney, emphasizes the importance of leveraging one's current situation to amplify success in real estate investing. He also mentions that having a background in law can be particularly beneficial due to the knowledge of contracts and securities. Additionally, he advises that even if one's expenses are higher due to their career, they can still win the "rat race" by leveraging their skills and resources effectively.
Mindset shifts can change our experience of life: Embrace challenges as opportunities, maintain a positive mindset, and train your brain to recognize the good to overcome adversity and live an extraordinary life.
Our perception of our circumstances greatly influences our experience of life. The speaker shares how his low expenses due to bankruptcy and subsequent health challenges led him to make the most of his situation and ultimately achieve financial freedom through real estate investing. He emphasizes the importance of maintaining a positive mindset and reframing challenges as opportunities. The speaker's decision to never have bad days and train his brain to recognize the positive led him to overcome adversity and live an extraordinary life. This mindset shift, as supported by the reticular activating system, can help us all appreciate the good in our daily lives and overcome challenges.
Finding joy in every day, even during challenging times: Lowering expectations and maintaining a positive attitude can lead to happiness and success in unexpected places, whether in personal life or real estate investing
Having a positive attitude and lowering expectations can lead to happiness and success, even during challenging times. The speaker shared his personal experience of being diagnosed with leukemia and how his childhood nurse's reaction made him realize the importance of finding joy in every day, no matter the circumstances. He also emphasized the role of expectations in real estate investing, suggesting that having unrealistic expectations can be a barrier to getting started. Instead, it's essential to approach each deal with a mindset of learning and growth, rather than focusing on potential losses or mistakes. By adopting a positive attitude and lowering expectations, we can find happiness and success in unexpected places.
Taking responsibility for your actions in real estate: Focus on mitigating negatives, maximizing positives, recognize when to cut losses, buy back time, and prioritize valuable deals to create a better life
Accepting full responsibility for your life and your actions, even in the face of adversity, can lead to positive change. This perspective, applied to real estate, means focusing on mitigating negatives and maximizing positives, while also recognizing when to cut your losses on deals that are causing more harm than good. Ultimately, the goal is to buy back your time and prioritize your energy towards deals and investments that bring value to your life and those around you. By doing so, you can create a better life for yourself and make a positive impact on the world.
Exploring Alternative Sources of Funding for Real Estate Investments: Airbnb generates income for homeowners, Fundrise offers private credit deals for real estate investment funding, and Steadily.com saves landlords time and money on insurance.
Airbnb can provide valuable extra income for homeowners, enabling financial freedom and even full-time real estate investment. The speaker shares his personal experience of using Airbnb to fund his real estate business and quit his 9 to 5 job. Additionally, in today's economic climate, high-interest rates are making it challenging for real estate investors to secure funding. Fundrise offers an opportunity to invest in private credit deals, providing funding for top real estate investors while offering attractive interest rates for investors. Lastly, landlords can save time and money on rental property insurance with Steadily.com. Whether you're a beginner or an experienced investor, these resources can help you make the most of your real estate ventures.
Effectively communicating complex concepts in real estate investing: Understanding local markets is crucial for successful syndication, allowing investors to identify good deals and avoid pitfalls.
Effectively communicating complex concepts and simplifying them for others is a valuable superpower in real estate investing. Syndication, a process of pooling resources from multiple investors to purchase properties, is an essential aspect of this. Syndications involve raising funds from passive investors, turning it into a security with legal implications. A syndicator, like the speaker, might find a deal, gather investors, and each investor receives a percentage of the property based on their investment. The speaker emphasizes the importance of knowing your local market to make informed investment decisions and gain an unfair advantage. By deeply understanding the market, one can identify good deals and avoid potential pitfalls. The speaker's success in Chattanooga is a testament to this strategy.
8 Words: Importance of a Trusted Property Manager in Real Estate Investing: Finding a knowledgeable property manager is vital for successful real estate investing, especially for absentee investors. They offer market insights, deal sourcing, and valuable data, often accessing off-market deals.
Having a trusted property manager who deeply understands a real estate market is crucial for successful investing in that market, especially for those who are not physically present. Property managers not only help manage properties but also provide valuable insights, including market knowledge, deal sourcing, and rental and sales data. They often get first dibs on off-market deals and can guide investors through the complexities of the local real estate scene. To find the right market, consider moving there and immersing yourself in the community, looking for areas with population and job growth, and researching net migration trends using resources like U-Haul data. Ultimately, a dedicated and informed approach to market selection, combined with a strong property management team, can lead to successful real estate investments.
Trusting that the dots will connect: Successful people trust the process and keep taking action, even when unsure or facing challenges, knowing that the pieces will eventually come together.
Successful people often don't have all the answers or a clear plan when they start out, but they trust that the dots will connect in the future. This was evident in the speaker's journey into real estate investing, where he stumbled upon strategies like house hacking and BRRRR without initially intending to. Partnerships with experts in new markets were also formed out of necessity and have led to success. Fear and doubt are natural parts of the process, but looking back, one can see how these experiences have led to growth and opportunities. The key is to keep taking action and trusting that the pieces will come together in the end. As the speaker noted, "When you find something that works, just keep doing it."
Embracing fear for growth in real estate and life: Reading 'What Every Real Estate Investor Should Know About Cash Flow' can help overcome fears and grow in real estate investing
Pushing yourself out of your comfort zone in real estate and in life can lead to growth and self-discovery. Fear is a natural response to trying new things or taking on bigger challenges, but it's important not to let it hold you back. As Jeff Oliver shared, every time he's felt scared during a real estate deal or move, it's been a sign that he's growing and learning something new. He recommended reading "What Every Real Estate Investor Should Know About Cash Flow and 36 Other Key Metrics" by Frank Gallinelli to gain a better understanding of the metrics that are crucial for successful real estate investing. Ultimately, the hero's journey in real estate and in life involves facing fears and challenges, and coming out the other side stronger and more capable.
Being prepared and flexible are key to success: Staying ready and adaptable allows you to answer questions and provide value, leading to personal growth and success
Being prepared and flexible are both important for success. The speaker shared how his two best talks were given with minimal preparation, but he emphasized that this doesn't mean being lazy. Instead, it's about always being ready and having a strong foundation in your craft. He also mentioned the importance of being open to learning from unexpected sources and being able to adapt to new situations. The speaker drew inspiration from the life of a legendary jiu jitsu practitioner who perfected his craft without knowing who or what he would face next. By staying prepared and adaptable, the speaker has been able to answer questions and provide value to those who look up to him. This reinforces the idea that taking on challenges and stepping out of comfort zones can lead to personal growth and success.
Overcoming fear and uncertainty to take action: Successful people take action despite fear and uncertainty, helping them overcome challenges and achieve their goals. Sharing experiences and helping others can also bring rewards.
Successful people, including real estate investors, take action despite fear and uncertainty. They may not have all the answers or information, but they don't let that stop them from moving forward. As Arnold Schwarzenegger's book "Total Recall" demonstrates, having a strong mindset and refusing to accept failure are key components of success. Whether it's in real estate or other areas of life, taking action and staying focused on your goals can help you overcome challenges and achieve your desired outcomes. Additionally, helping others and sharing your experiences can be a rewarding hobby and a way to make a positive impact on the world.
Connecting with like-minded individuals in real estate industry: Networking and persistence are crucial for success in real estate investing. Reach out to Jeffrey Holst on Facebook for insights and connect with a investor-friendly real estate agent for informed decisions.
Jeffrey Holst, a real estate investor and the host of the Last Life Philosophy podcast, emphasizes the importance of networking and connecting with like-minded individuals in the industry. He encourages listeners to reach out to him through various social media platforms, particularly his Facebook group called "Last Life Ever," where he is most active. Holst also highlights the significance of staying persistent and focused on one's goals, even when faced with challenges or obstacles. He shares his personal experience of dealing with another Jeffrey Holst, a renowned cancer researcher, who shares his name and makes it difficult for him to be easily found online. Despite this, Holst remains optimistic and encourages listeners to keep pushing forward towards financial freedom. Additionally, he encourages listeners to find an investor-friendly real estate agent to help navigate the market and make informed investment decisions.
