Podcast Summary
Persistence and Embracing Failure in Real Estate: Successful real estate investors persist through doubts and challenges, embrace failure, and consider investing in private real estate funds for passive income
Persistence is key in real estate investing. As shared by Tarek El Moussa on the Bigger Pockets Podcast Show 653, even when faced with doubts and challenges, successful investors keep going. Tarek himself shared his experiences of wanting to quit but pushing through, and the rewards were worth it. Another important takeaway is that embracing failure is essential. Tarek emphasized that not making money on every flip means you're not doing enough deals and leaving potential profits on the table. Lastly, for those looking to invest passively in real estate without the hassle of property management, consider investing in a private real estate fund like PPR Capital Management. Their team has extensive experience in both notes and commercial real estate, allowing investors to collect monthly income without the headaches of property ownership.
Real Estate: Building Wealth through Passive Income and Tax Savings: Learn how real estate investments can provide passive income and tax savings through companies like PPR and 1031 Pros, and discover the inspiring story of Tarek El Moussa's journey to success in the industry.
There are opportunities for individuals to secure passive income and save on taxes through the right real estate investments. PPR, with over half a billion dollars in assets under management, offers a steady source of passive income since 2007. Meanwhile, 1031 Pros specializes in helping investors save on capital gains taxes through 1031 tax-deferred exchanges. Tarek El Moussa, a successful real estate investor and TV personality, shares his story of starting in the industry at a young age, facing financial struggles, and then turning his life around with the help of a real estate coach. His experiences serve as a reminder of the potential for growth and financial success in real estate, even during challenging economic times. Whether it's through passive income or tax savings, real estate offers opportunities for individuals to build wealth and secure their financial future.
From Challenges to Success in Real Estate: Determination, persistence, and learning from mistakes can lead to real estate success. Show up daily, recognize opportunity cost, and delegate tasks to professionals. Unexpected opportunities can open new doors.
Determination and persistence can lead to success in real estate investing, even when faced with numerous challenges. The speaker's experience of navigating multiple liens, starting with no money, and learning from mistakes like electrocuting himself during a project, ultimately led him to become a successful investor. He emphasizes the importance of showing up every day and learning as you go, as well as recognizing opportunity cost and delegating tasks to hire professionals. Additionally, unexpected opportunities, like attending a real estate convention and sitting in the front row, can open doors to new partnerships and growth.
Making a strong first impression and building trust can lead to valuable opportunities: Persistently making a strong first impression and building trust can lead to unexpected opportunities, even without experience or resources.
Making a strong first impression and building trust through recognition can lead to valuable opportunities. The speaker shares an experience where dressing sharply and attending a real estate seminar led to a conversation with a successful local TV personality. Inspired by this encounter, the speaker became determined to get on TV and flip houses for a living. After sending an email to a Hollywood production company, they were given a chance to create a sizzle video, but it was ultimately rejected by networks. However, 10 months later, HGTV expressed interest in creating a pilot for a house flipping show. Despite having no experience or money, the speaker was able to secure a contract to flip 13 houses on TV. Through this journey, the speaker learned the importance of persistence and the power of making a strong first impression and building trust.
Persistence and daily effort lead to success: Showing up daily and not giving up increases chances of success in real estate investing, even when faced with repeated setbacks. Creating systems, prospecting, and door knocking expand business opportunities.
Persistence and hard work pay off. Tarek El Moussa shared his experience of starting his real estate investing career on TV by attending auctions every day and working tirelessly to find houses for the show. He learned that even when he was outbid repeatedly, showing up every day increased his chances of eventually getting a house. This mindset helped him secure a capital partner and flip houses for profit. Additionally, he emphasized the importance of creating systems, prospecting listing agents, and door knocking to expand his business. El Moussa put himself in a position where he couldn't fail by signing a contract, and his dedication led to a successful career with multiple shows on HGTV.
Learning to delegate, scale, and lead while running a TV show and real estate business: Through managing a TV show and real estate business, Tarek El Moussa learned the importance of delegating tasks, scaling operations, and becoming a strong leader. Honesty about limitations and focusing on strengths led to success.
The experience of filming a TV show while running a real estate investment business forced Tarek El Moussa to learn how to delegate, scale, and become a leader. At first, he was hands-on in every aspect of the project due to lack of choice, but as he grew his team and systems, he became more focused on the TV side of things. Initially, there was pressure to appear as an expert in every facet of the project, but Tarek was honest about his lack of expertise and instead focused on showcasing the excitement of chasing the American dream as a real estate investor. Similarly, the police officer turned investor faced the challenge of managing real estate investments while working full-time as a cop. This forced him to hone in on the most important systems and ultimately made him a better investor.
Lesson Learned: Delegate for Success: Understanding opportunity cost and delegating tasks to experts can save time and lead to greater profits in real estate investing.
Time and expertise are valuable in real estate investing. The speaker learned this lesson the hard way during his first investment project, which consumed over 7 hours of his day and required multiple trips to Home Depot. He realized that hiring professionals to handle construction and deal sourcing allowed him to focus on what he does best – finding deals. This approach not only saved him time but also led to greater profits. The speaker's experience underscores the importance of understanding opportunity cost and recognizing when it's more beneficial to delegate tasks to experts.
Investing in Yourself is Key to Successful House Flipping: To be successful in house flipping, invest in yourself by learning deal finding, securing funding, and efficiently fixing and selling houses.
Investing in yourself is crucial before diving into house flipping. The speaker emphasizes the importance of finding deals and becoming an expert at it, as well as securing funding. He shares his personal experience of the time-consuming process of learning how to find deals and the importance of not letting a lack of knowledge in other areas, like construction, hinder progress. The speaker also advises that if funding is an issue, wholesaling the deal may be necessary. Lastly, he shares a story about the importance of efficiently fixing and selling houses, using an example of a competitor who completed a flip much faster than his own. Overall, the key takeaway is that investing in oneself, finding deals, securing funding, and efficiently fixing and selling houses are essential elements of successful house flipping.
Finding Successful Contractors for Real Estate Projects: Look for contractors with experience in flips, network through real estate agents and home improvement stores, and invest time and resources into finding deals and selling properties professionally.
Finding successful contractors for real estate projects involves looking for those with experience working on multiple projects, particularly flips, as they understand the unique requirements and pricing structures of this type of work. This can be achieved by following leads from real estate agents, checking Zillow listings, or observing professional behavior at home improvement stores. Additionally, investing time and resources into finding deals, fixing properties, and selling them professionally, including high-quality photography, is crucial for success. Ultimately, success in real estate investing comes from identifying and collaborating with experts in various fields.
The Importance of Quality Real Estate Photos: Investing in professional photography for all types of real estate listings can lead to additional returns. Building relationships with agents and focusing on off-market deals increases chances of finding profitable opportunities.
The quality of photos used to market real estate properties plays a significant role in their profitability. Investing in professional photography is essential to accurately represent properties and attract potential buyers. The speaker emphasizes that this is not just for high-end properties, but for all types of listings, as good photos can lead to additional returns. Additionally, the speaker recommends focusing on off-market deals and building relationships with real estate agents to increase chances of finding profitable opportunities. The speaker compares this approach to fishing, suggesting that casting many lines increases the chances of catching fish. In today's market, it's important to remember that there's no secret list of buyers, and relying on traditional methods like newspapers and magazines is no longer effective. Instead, building a network and investing in marketing efforts is key to finding and securing profitable deals.
Believe and take action every day in real estate investing: Believe in yourself and the process, keep taking action daily, and consider delegating tasks to professionals for successful real estate investing
Persistence pays off in real estate investing. Poor quality listings on real estate websites may go unnoticed, but they can present great opportunities for house flippers. Successful investors keep going despite setbacks and maintain a positive attitude. The key is to believe in oneself and the process, and keep taking action every day. Another important tip is to delegate tasks to professionals, such as contractors, to simplify the process and focus on finding the next investment opportunity. Vacasa and Integra Development Group offer solutions to simplify vacation home ownership and real estate investing, respectively, by providing professional management and simplified investment opportunities. Ultimately, the journey may be challenging, but the rewards can be significant.
Understanding the market is crucial for successful real estate deals: Researching population growth, real estate market conditions, and absorption rates can help determine a market's viability for investment. Failure to understand the market can lead to significant losses.
Having access to reliable and comprehensive data is crucial for successful off-market real estate deals, while understanding the local market is essential for making informed investment decisions. Tarek shared his experience of the importance of knowing the market before investing, as not doing so could lead to significant losses. He emphasized the importance of researching population growth, real estate market conditions, and absorption rates to determine the viability of a market. Tarek also shared a personal story of a costly mistake in the past when he failed to sell a house in a market with weak demand, and how he could have saved a substantial loss by selling it sooner. Overall, both accessing quality data and understanding the market are key components for successful real estate investing.
Calculated risks in house flipping: To maximize profits in house flipping, take calculated risks, build a foundation of profitable deals, and gradually increase risk as experience grows.
Successful house flipping involves taking calculated risks. Being too cautious and only buying "safe" deals may limit potential profits. It's essential to recognize that some deals may result in losses, but as long as the majority are profitable, the overall outcome can still be positive. It's crucial to start slow, build a solid foundation of profitable deals, and gradually increase risk as experience and confidence grow. Remember, the biggest profits often come from the riskiest ventures. However, it's essential to have a substantial foundation before taking significant risks.
Investing and Home Design: Taking Calculations and Following Trends: Diversify investments, take calculated risks, consider local market trends, and be flexible in design and pricing.
It's important to understand that not every investment will be a success, and that's okay. Having a diversified portfolio and being willing to take calculated risks can help mitigate potential losses. Additionally, when it comes to designing homes for sale, it's essential to consider the local market and follow design trends that have proven to be successful in the area. Copying exact designs may not be the best approach, but understanding the theme and putting your own spin on it can help you stand out while still appealing to buyers. Lastly, it's crucial to be flexible and follow market trends, as trying to force a specific price or design on buyers can lead to complications.
Understanding market conditions and adapting are keys to success in real estate investing.: Stay informed, pay the right price, work with experienced contractors, design properties that fit the area, avoid greed, and be flexible to market changes for successful real estate investing.
Understanding the market and being adaptable are crucial for success in real estate investing. Tarte emphasized the importance of knowing the market conditions, paying the right price, working with experienced contractors, designing properties that fit the area, and avoiding greed. He shared personal experiences of losing money on some deals but offsetting those losses with profits on others. The market can change rapidly, and those who fail to adapt may end up losing significantly. Therefore, it's essential to stay informed, be flexible, and make decisions based on current market conditions.
A friendly game of 'Real or Reality': Tarek, Rob, and David engaged in a witty game, with Tarek revealing his biggest real estate flip and his mother's involvement, while Rob made a humorous but incorrect guess about Tarek's wife's tattoo.
The game "Real or Reality" between Tarek, Rob, and David showcased their wit, knowledge, and friendly competition. One of the statements, Tarek's wife's tattoo, was a humorous guess by Rob that turned out to be incorrect. They discussed setting wagers on the game, with the winner getting to introduce the show. Tarek shared that his biggest flip was for a profit of $1,000,000, which Rob initially doubted but later conceded. The statement about Tarek's wife's show, Selling Sunset, having better TV ratings than his was proven true, with Selling Sunset being the second most-watched show on Netflix. Tarek also revealed that his mother helps him with his real estate flips, which was a reality. The game showcased a lighthearted and engaging exchange between the three, demonstrating their camaraderie and shared interests.
Rob and Tarek's compelling stories of determination and resourcefulness: Rob and Tarek's experiences demonstrate the power of determination, resourcefulness, and hustle to overcome personal challenges and achieve success
Both Rob and Tarek have shared compelling stories about their past experiences. Rob shared an instance where his friend, whom he believes is real but might have helped him in various ways like removing an oil stain and investing in real estate. Tarek shared stories about flipping houses, including one where a house was literally bent in half during foundation repairs and his past struggles with poverty. Although some stories might seem hard to believe, others, like Tarek's experiences with poverty, resonated with Rob due to his own past struggles. Overall, these stories highlight their determination, resourcefulness, and hustle to overcome challenges in their lives.
Expert Tarek El Moussa shares insights on real estate deals and business: Focus on getting the next deal, leverage skills, partner with others, find an investor-friendly agent, and look for opportunities with TEM Capital.
Tarek El Moussa, the real estate expert and TV personality, shared his expertise on finding deals and building a successful real estate business during the interview. He emphasized the importance of leveraging skills and partnering with others to expand opportunities. Tarek also announced his new company, TEM Capital, where people can partner with him on real estate deals. He is currently working on a self-storage project in Surprise, Arizona, and encouraged potential investors to reach out for collaboration. Tarek's advice for entrepreneurs is to focus on getting the next deal and not doing everything themselves. He also mentioned the importance of finding an investor-friendly agent for navigating the real estate market effectively. Overall, the interview provided valuable insights from a successful real estate entrepreneur and offered opportunities for collaboration and learning.
Investing in real estate involves risks and past performance isn't a guarantee of future results: Always consult with advisors, consider risks, and never invest capital you cannot afford to lose, as past performance doesn't ensure future success in real estate investing
Past performance in real estate investing is not a guarantee of future results. Each host and participant shares their unique perspectives, and all opinions expressed are their own. It's crucial to remember that investing in real estate, like any other asset class, involves inherent risks. Before making an investment decision, it's essential to use your best judgment and consult with qualified advisors. Additionally, never risk capital that you cannot afford to lose. Lastly, BiggerPockets LLC disclaims any liability for damages arising from the information presented in this podcast.
