✅ What does year one as a full time real estate investor look like?
✅ Financial advice from a billionaire for real estate investors
✅ Is active income more important than passive income + More!
See the show notes to connect with all things Sam!
Having financial security through real estate investments allows investors to make decisions based on purpose rather than fear. Author David Horsnell, who wrote "Profit First for Real Estate Investing," emphasizes the importance of ensuring profitability in real estate ventures. David Green, the host of the BiggerPockets Real Estate Podcast, shares his experience of feeling the pressure to secure the next deal and making decisions out of fear. He also discusses his recent experience of furnishing a luxurious mansion and bonding with his team over their shared love for cinema. While the conversation veered off topic, the underlying message remains: having financial stability enables better decision-making and more enjoyable experiences. Furthermore, the BiggerPockets community offers resources such as a website, forum, blog, and books to help real estate investors build wealth and find financial freedom. The podcast features interviews with experts and professionals in the industry to provide valuable insights and knowledge. So, if you're looking to enter the world of real estate investing, the BiggerPockets community is an excellent place to start.
Investing in real estate requires careful financial management, especially for larger properties with additional expenses beyond the mortgage. During a recent visit to a unique property, the importance of implementing the Profit First strategy was discussed, which involves delegating funds for profits, taxes, and operating expenses to ensure long-term success. Additionally, the importance of understanding cash flow management and finding a reliable bookkeeper were emphasized. A tool like DealMachine can help with lead generation and access to contact information for potential deals. Another exciting opportunity was mentioned: Rent to Retirement offers no money down options for buying turnkey rental properties, providing an infinite return through cash flow appreciation and equity. Overall, it's crucial to prioritize financial management and seek out resources and strategies to maximize profits in real estate investing.
Investing in real estate and securing your home go hand in hand. At renttoretirement.com, you can start investing with no money down and secure discounted new construction properties. SimpliSafe, on the other hand, provides peace of mind with their home security system, protecting your property and belongings from intruders, fires, and floods. With professional monitoring starting at less than $1 a day, you can have real-time intervention and a 60-day money-back guarantee. Meanwhile, BiggerPocketsCon offers an opportunity to learn, network, and have a great time with like-minded individuals in the real estate community. David Richter, an experienced real estate investor and author, wrote a book to share the story of where the money flows in real estate businesses, from acquisitions to finance, and how it's essential to avoid losing money.
Many real estate investors are making a significant number of deals but are not making a profit due to poor financial management. This issue stems from a lack of understanding of financial concepts and a lack of proper bookkeeping. The speaker's personal experience and encounters with other investors led him to believe that there was a need for a clear and simple financial system tailored to the real estate investing community. This realization sparked the writing of a book based on the Profit First system, which aims to help real estate investors effectively manage their finances and avoid the "real estate rat race." The speaker has seen cases of investors making millions but still struggling financially, highlighting the importance of this issue.
Effective cash management is crucial for real estate investors, whether they are just starting out or have been in the business for a long time. The Profit First system is a helpful methodology for managing cash and profit margins, allowing investors to make profit a habit rather than an event. This system can help investors identify areas where they are losing or making money, and make informed decisions about which investment strategies to prioritize based on profitability. A common mistake for new investors is relying on a single business bank account for all transactions, making it difficult to track income and expenses. By implementing a system like Profit First, investors can create good financial habits and ensure sustainability for their business.
Using a single bank account for both personal and business finances is a common mistake among real estate investors, leading to lack of control and confusion as businesses scale. The Profit First methodology, an alternative approach, prioritizes profit over expenses, encouraging investors to pay themselves first before covering business expenses. This mindset shift can help establish good financial habits early on and prevent potential financial mismanagement in the future. Despite its similarity to the "pay yourself first" philosophy, Profit First offers practical steps to implement this mindset within a business context.
Implementing a profit-first mindset in real estate investing is crucial for long-term success. This means setting aside profits for yourself before reinvesting or spending them elsewhere. The profit-first approach helps build good financial habits, ensures the business remains profitable, and enables you to quit your day job and focus on real estate full-time more easily. Additionally, having reserves provides psychological and financial security, allowing you to make decisions based on purpose rather than fear and enabling you to capitalize on opportunities during market downturns or unexpected personal circumstances.
Developing good investing habits and learning from your experiences are key to success in real estate. The speaker, David, shared his personal journey of getting started in real estate investing after being inspired by the book "Rich Dad Poor Dad." He emphasized the importance of finding a mentor and learning the business from the ground up. David's first deal was a HUD property that he rented out, lived in, and then lease optioned. He also did some wholesale fix and flips on the side. Through his experiences, he learned the importance of options and lease options in real estate investing. David also stressed the importance of understanding the numbers and managing a larger portfolio to avoid potential financial losses. Overall, his message was to take action, learn from your mistakes, and surround yourself with the right people to succeed in real estate investing.
Having a diverse range of strategies in a business can lead to inefficiencies and high operating costs if not managed properly. The speaker shares an experience where they worked with a real estate company that handled various types of deals, from wholesale to turnkey properties. However, as the number of deals increased, so did the need for more employees to manage the dispositions, leading to a situation where the company was not making a profit despite the high volume of transactions. This issue arose due to a lack of clear financial tracking and management. The speaker emphasizes the importance of having a clear understanding of one's financial situation and implementing systems like Profit First to ensure that cash is being managed effectively.
Small entrepreneurs often wear multiple hats and get so caught up in the day-to-day operations that they neglect to manage their cash flow effectively. This can lead to emotional decision-making and an inaccurate understanding of their business's financial health. As businesses grow and more employees are added, the importance of keeping a close eye on finances becomes even more crucial. Rob shared his personal experience of this, noting how he's had to adapt to managing a larger team and multiple streams of income, and the importance of implementing systems and disciplines to ensure financial success. David's point about emotions influencing financial decision-making was also emphasized as a common pitfall for entrepreneurs.
Making emotional decisions based on current bank account balances can hinder business growth. The speaker shared a personal experience where a lack of financial oversight led to unproductive employees and missed opportunities for higher profit margins. They emphasized the importance of digging deeper into financial reports to uncover underlying issues and make informed decisions. Passive income through platforms like Connect Invest can provide a more stable financial foundation for businesses and investors, allowing them to focus on growth rather than constant financial management.
Effective financial management is crucial for any business, especially in real estate. Short Notes offers an opportunity to earn a fixed monthly income from real estate investments without the hassle of ownership or management. Meanwhile, the Walker webcast provides valuable insights into commercial real estate, entrepreneurship, and the economy. For property owners and operators, Quantum Fiber Internet can enhance residents' living experience with fast and reliable Internet. When starting or growing a real estate business, understanding where your money is going is essential. Profit First is a modernized envelope system for businesses, advocating for separating accounts to know what money is for personal use versus business expenses. This golden trio of bank accounts helps create good financial habits and ensures that business profits are maximized. By implementing these strategies, real estate agents, flippers, and property managers can make the most of their hard-earned money and take their businesses to the next level.
Effective business management involves setting up and maintaining three key bank accounts: a profit account, an owner's compensation account, and an owner's tax account. These accounts serve distinct purposes: the profit account represents the reward for starting and growing a business, the owner's compensation account helps individuals escape their "rat race" by providing a consistent income to cover personal expenses, and the owner's tax account ensures sufficient funds are set aside to pay taxes on business income. Collectively known as the "Golden Trio," these accounts prioritize the financial health of the business owner, enabling better decision-making, profitability, and team growth. By establishing this habit early, individuals can build wealth automatically and potentially unlock opportunities for purchasing properties or expanding their business.
Effective bookkeeping is essential for any business, especially for real estate investors, and it doesn't have to be complicated. The Profit First system suggests focusing on three key bank accounts: one for profit, one for owner's compensation, and one for taxes. The operational expenses are already covered by an existing account, often referred to as the opex account. By setting up these accounts and ensuring that transfers are the only transactions taking place, business owners can easily manage their finances and prioritize profit. When implementing this system, it's crucial to have a bookkeeper or CPA who is committed to your business's profitability. To determine if they are truly invested, ask them questions about your profit margins, projected cash flow, and overall financial health. If they are unable or unwilling to provide this information, it may be time to consider finding a new financial advisor. Remember, just as broccoli may not be the most enjoyable part of a meal, effective bookkeeping is a necessary component for the success and growth of your business. By making it a priority and finding a trusted financial advisor, you can unlock the potential of your business and ensure that you are making informed decisions based on accurate financial data.
Starting small and learning the basics can lead to significant profits and financial growth. The speaker shared his experience of buying his first house for $50,000 through a HUD foreclosure deal and funding it with an FHA 203k loan. He learned the value of good mentors and education, as he had been influenced by books like "Rich Dad Poor Dad" and "Bigger Pockets." Through this deal, he gained experience in negotiation, renovation, and renting, ultimately making a profit of $15,000 when he sold the house. The key lesson he emphasized was the importance of surrounding oneself with knowledgeable and experienced individuals to help navigate the real estate investing journey.
Successful real estate investing involves recognizing your strengths and weaknesses, and bringing in experts to help you in areas where you're not an expert. The intervietee shared how they hired someone to help them get tenants in place for their properties because they knew they weren't the best person for that task. They also discussed the importance of financial freedom and following a passion or mission, which led them to sell their portfolio and start a business to help other business owners. Another key takeaway is the importance of education and implementation. The intervietee mentioned how they took valuable information from books like "Profit First for Real Estate Investing" and "Brandon's book on rental real estate investing" and put it into practice, leading to real results. They also recommended "The Road Less Stupid" by Keith Cunningham as a valuable business book. When asked about hobbies, the intervietee shared that they enjoy golfing, attending mastermind events, and spending time with their family, particularly their young daughter. They emphasized the importance of balancing work and personal life in real estate investing.
Successful investors take action and implement systems like Profit First, despite making mistakes. Prioritizing what matters in life and taking practical steps towards financial goals are key. To get started with Profit First, visit simplecfosolutions.com/biggerpockets for tools and resources. As for finding the speakers online, David Green can be found at David Green 24 on TikTok, YouTube, and Instagram, while Rob Built can be found on YouTube and Instagram as RobBuilt and Rob Bilto, respectively. Lastly, make profit a habit by setting up a profit account and transferring 1% of income into it regularly.
Finding an investor-friendly real estate agent can be a game-changer for those looking to get into or advance in real estate investing. The market may be unpredictable, but the goal of financial freedom remains constant. With BiggerPockets Agent Finder, investors can easily connect with local market experts who can help navigate neighborhoods, analyze numbers, and build confidence in making informed decisions. This free resource is available at biggerpockets.com/deals and can help investors get closer to their financial goals. Remember, the best investors understand that it's not about timing the market, but rather having the right partner and being consistent in the market. As always, it's important to consult with qualified advisors before making any investment decisions, as investing involves risk.
I am excited to announce the release of our latest episode of AZREIA SHOW, where we sit down with Chuck Warshaver from Stardust Building Supplies to discuss their mission of diverting usable building materials from landfills.
In this episode, we talk about the impact of Stardust Building Supplies on the community, the recent push for business development, marketing and branding, and the increase in traffic they have seen since hiring a marketing specialist. We also discuss how they let customers know about upcoming projects and unique finds, and how they are outfitting units with inexpensive quality goods.
If you are interested in learning more about Stardust Building Supplies and how they are making a difference in the community, this episode is a must-listen.
Key Takeaways:
00:01:51 Circular economy through deconstruction.
00:06:55 Discounted building materials available.
00:12:25 Stardust Building has unique finds.
00:20:06 Shop at Stardust for bargains.
00:23:35 Nonprofit helps divert waste.
We hope you enjoy listening to our conversation with Chuck and learning more about Stardust Building Supplies. Let's continue to support businesses and organizations that prioritize sustainability and community impact.
Connect with Chuck Warshaver (Stardust) at:
Cell: 617-803-0890
Email: cwarshaver@stardustbuilding.org
Website: https://stardustbuilding.org/
Address: 1720 W. Broadway Rd. Suite 101 Mesa, AZ, 85202
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The Arizona Real Estate Investors Association provides its members the education, market information, support, and networking opportunities that will further the member’s ability to successfully invest in Real Estate.
Is a Career in Real Estate Right For You?
Take AZREIA's Real Estate Investing Entrepreneurial Self-Assessment at
👉 https://azreia.org/entrepreneurial-self-assessment
Azreia Real Estate Investing Entrepreneurial Self Assessment
Who is it for?
☑️ Anyone who wants to know if Real Estate Investing is right for them BEFORE spending time or money on education and training.
☑️ Everyone new to Real Estate Investing
Our Entrepreneurial Self Assessment is designed for you to understand if Real Estate Investing is right for you and if so, you are best suited for active or passive investing.
AZREIA membership is a community consisting of independent real estate investors who invest in:
🏡 SINGLE FAMILY
🏙 SMALL MULTI-FAMILY
🏡WHOLESALERS
✍️ NOTES
Educational opportunities are plentiful and delivered through AZREIA’s own education program and in collaboration with outside education providers.
🎓AZREIA’s Core Education Classes are specifically designed for new investors to develop their critical skills quickly and effectively.
🎓Our strategy classes are provided through AZREIA and others and deliver an advanced level of knowledge.
Join the Deal Finders Club here
Deal Finders Club is a thriving real estate community "Where Deals Get Done", we train community members on these core skills...Marketing, Sales, Negotiations, Comping, Writing Offers, Locking Up Contracts, and so much more.
Discover:
https://azreia.org/wholesale
https://azreia.org/property-scout/
https://azreia.org/landlord/
https://azreia.org/notes/
https://azreia.org/fix-and-flip/
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Website: https://azreia.org/
Join Nick Lamagna on The A Game Podcast with his guest Sam Primm, a highly successful real estate investor who went from working a full time job in Missouri to now owning over 45 Million dollars in real estate and flipping over 1000 homes in under five years! He is taking the internet by storm with literally millions of followers on his social media platforms where his brand Faster Freedom shares knowledge on real estate education frequently getting 6-10 million views a month.
He and his partner now close over 300 transactions a year including flipping, wholesaling, wholetaling, and rental properties through the BRRRR Method where they are often into properties with no money out of pocket. They also run other related businesses with 30 employees including a property management company and a real estate education company where they share their knowledge and guide investors just like you to financial freedom. Check out this outstanding full episode full of valuable information for new and experienced investors and check out Sam's new book Own Your Freedom available on Amazon!
Topics for this episode include:
✅ How can you get a NO MONEY DOWN loan from the bank to buy real estate
✅ The truth about passive income in real estate investing
✅ What Is the future of social media?
✅ What does year one as a full time real estate investor look like?
✅ Financial advice from a billionaire for real estate investors
✅ Is active income more important than passive income + More!
See the show notes to connect with all things Sam!
Connect with Sam:
Sam Faster Freedom on Instagram
Sam Faster Freedom on Facebook
Get Sam's Book OWN YOUR FREEDOM here
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Connect with Nick Lamagna
Join us in this insightful episode as we explore the world of real estate investing through the unique perspective of first-generation Americans. Our special guest Nebo Bandovic is sharing his inspiring journey of achieving success in the real estate industry while navigating the challenges and opportunities that come with being first-generation immigrant.
In this episode, you'll discover:
The powerful stories of resilience and determination that drive these real estate investors.
Practical tips and strategies for anyone interested in starting their real estate investment journey.
How cultural backgrounds and values infulence their approach to real estate investing.
The importance of building a diverse and inclusive real estate community.
Whether you're a seasoned investor or just beggining to explore the world or real estate, this episode offers valuable insights and motivation. Don't miss the opportunity to learn from our exceptional guest and gain a deeper understanding of the intersection of real estate and first-generation American experiences.
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