Podcast Summary
Use the same professional profile picture across all platforms: Having a professional profile picture is crucial for standing out and being recognized in the real estate industry. Use the same image across all social networks to project a consistent, serious image and improve chances of coming up in search results.
Having a professional profile picture is essential for building a strong online presence and networking in the real estate industry. The Bigger Pockets Podcast hosts, Josh Dorkin and Brandon Turner, emphasized the importance of using the same picture across all social networks and platforms like BiggerPockets.com. They explained that having a profile picture can help you stand out and be recognized more easily, as well as improve your chances of coming up in search results. Furthermore, potential business partners, lenders, or investors are likely to check out your social media before considering working with you. So, make sure your profile picture projects a professional and serious image.
Investing in Real Estate Made Easier with DealMachine and RentApp: DealMachine eliminates the need for skip tracing with its extensive database, providing high-quality data. RentApp simplifies rent collection through ACH bank transfers. Both offer game-changing solutions for real estate investors, along with investment opportunities in new construction turnkey rentals with no money down.
DealMachine and RentApp are game-changers for real estate investors, offering unlimited access to reliable contact information and a seamless, free rent collection tool respectively. DealMachine eliminates the need for skip tracing with its extensive database, providing high-quality data fully compliant with the federal do not call list. RentApp simplifies rent collection through ACH bank transfers, making it an essential tool for small rental property owners. Additionally, Rent to Retirement offers the opportunity to invest in new construction turnkey rental properties with no money down. These innovative tools and investment opportunities can significantly enhance an investor's lead generation, deal-making strategies, and cash flow.
Thriving in a struggling real estate market: Successful real estate investor Brian found his business thrives when the market is at its worst, allowing him to build a sustainable and adaptable business
Successful real estate investor Brian, who started from nothing and grew his operation to a team of about 15 people, has found that his business thrives when the real estate market is at its worst. He's built a company that can adapt to market conditions, scaling up during downturns and scaling down during market peaks. Brian's primary focus is to make money through various real estate ventures, including buying and flipping houses, multifamily apartments, and development. He's been in the business for 25 years and shows no signs of slowing down. Despite common assumptions that the real estate market and his business would grow together, Brian has found the opposite to be true. His business performs best when the market is at its worst. This inverse relationship has allowed him to build a successful and sustainable business.
Navigating Real Estate Market Cycles: Successful investors adapt to market cycles and avoid deal addict behavior by analyzing market signals and considering alternative strategies to mitigate risks and capitalize on opportunities.
Being a successful investor requires adaptability and understanding the market, rather than chasing after popular trends. Real estate investing is likened to navigating a meandering stream, where staying flexible and adjusting strategies based on market cycles is crucial. However, distinguishing between market trends and profitable strategies can be challenging. Avoiding deal addict behavior, which is driven by the desire to buy deals without proper consideration of market conditions, is essential. Instead, investors should pay attention to subtle market signals, such as demographic trends and economic indicators, to make informed decisions. For instance, excessive buying by individuals with limited financial means or unfavorable loan terms could be early warning signs of a potential market collapse. By combining intuition with data analysis, investors can navigate market turns effectively. Currently, the market in Northern California, specifically the North Bay area, is showing signs of a cooling down, with slower home sales and rising inventory levels. Investors should be cautious and consider alternative strategies, such as value-add or long-term buy-and-hold, to mitigate risks and capitalize on opportunities.
Understanding Local Markets and Outsourcing Management: To succeed in real estate investing, understand local market dynamics and consider outsourcing property management for larger projects.
The real estate market varies greatly from place to place, and investors need to understand the specific demographics and economic conditions of their local market to find opportunities. When starting out, real estate investors often wear many hats and do everything themselves, but as their business grows, they may need to hire employees to manage various aspects of their operations. For example, some investors may choose to outsource property management to professionals if they find that managing tenants is not enjoyable or within their expertise. The speaker in this discussion started off managing his own rentals but eventually sold them and focused on larger apartment buildings with professional management. He also shared his experience of growing his business from a home office to hiring a team and partnering with a home builder during a foreclosure boom.
Managing Growth in Real Estate Investing: Identify strengths and weaknesses to hire or delegate tasks, grow sustainably, and focus on core competencies.
As real estate investors grow their portfolio, the size of their properties and the need for staffing can significantly impact the time and effort required to manage them. For smaller properties, investors may need to be more hands-on, while larger properties can be run more efficiently with a dedicated staff. The organic growth of a business, whether it's hiring staff or expanding property size, is essential for sustainable success. Rushing growth can lead to challenges or failure. It's important for investors to identify their strengths and weaknesses and hire or delegate tasks accordingly. The speaker's experience aligns with this, as they've grown their business by hiring staff to fill in the holes and focusing on their core competencies.
Focus on building your team organically as you grow: Start with a realtor or CPA, consider quitting a job for investing only when profitable, avoid using too much time on team building early on, and prioritize buying real estate
While building a team is important in real estate investing, focusing too much on it before actually getting started can be detrimental. Instead, investors should build their team organically as they grow, starting with finding essential professionals like a realtor or CPA. Quitting a job to focus on investing full-time should only be considered when an investor has a solid track record of success and profitability, and when the opportunity cost of keeping the job outweighs the potential gains from investing. It's essential to avoid getting bogged down in the details of building a team or setting up the business mechanics and instead focus on buying real estate to establish a successful real estate investment business.
Effective time management and calculated risks in real estate: Dedicate time to real estate investments, have a plan, take calculated risks, and prioritize action for success. Join communities like BiggerPockets to learn and grow.
Successful real estate investors prioritize their time effectively and take calculated risks to grow their business. According to the speaker, you have 168 hours in a week, and dedicating 40 hours to your job and another 40 hours to real estate investments could lead to quitting your job if the returns are greater. However, it's crucial to have a realistic plan, be willing to take risks, and not make excuses. The speaker emphasizes the importance of action, prioritization, and expanding your comfort zone. Additionally, being an active participant in a community like BiggerPockets can provide value, even for experienced investors, as there is always something new to learn.
Grow your real estate business through networking and community involvement: Engaging in a community like BiggerPockets can lead to valuable relationships, partnerships, and deals through sharing knowledge and helping others.
Expanding your network and getting involved in a community, such as BiggerPockets, can significantly grow your real estate business. The speaker shared his personal experience of meeting new people, forming partnerships, and gaining deals through the platform. He emphasized the importance of contributing to the community by providing sound advice and helping others, as this can attract potential business partners and investors. Additionally, the speaker mentioned that there are many more people reading BiggerPockets than actively posting, so every interaction on the platform has the potential to reach a larger audience. Overall, the key takeaway is that building relationships and actively engaging in a community can lead to valuable opportunities and growth in the real estate industry.
Tools for Simplifying Rental Property Management: Use RentApp for digital rent collection, Steadily.com for affordable landlord insurance, focus on revenue-generating tasks, and consider Redfin for buying/selling homes with lower fees.
There are tools and services available that can make managing rental properties and securing insurance easier and more efficient. RentApp simplifies rent collection with digital transactions, while Steadily.com offers fast and affordable landlord insurance online. Additionally, misallocating time and resources in your business can prevent you from affording a team. Instead, focus on areas that generate revenue. Redfin can help you find the right home or sell yours for the best price, and their fees are significantly lower than competitors. Remember, investing time and resources wisely can lead to greater success.
Focus on revenue-generating activities: Identify keys to making money and focus on them, outsource or delegate non-revenue tasks as business grows
When starting or growing a business, it's essential to focus on activities that generate revenue and outsource or delegate tasks that don't. This was a common theme in the discussion between the speakers, who shared their personal experiences of getting bogged down in the details of doing everything themselves and not making progress. They emphasized that it's necessary to build a foundation for the business by identifying the keys to making money and focusing on those activities. However, they also acknowledged that there's a time and place for handling tasks yourself, especially when starting out and resources are limited. The key is to evolve away from those tasks as the business grows and your goals change. So, whether it's licking envelopes or fixing siding, it's important to recognize that these tasks are a necessary part of the process but should be phased out as the business scales up.
Balancing Time and Money in Real Estate Investing: Effective real estate investing requires a thoughtful approach to balancing time and money, carefully considering all expenses during the acquisition process to make informed decisions.
Successful real estate investing involves careful consideration of both time and money. The speaker shared how he used to mow his own lawn to save money but eventually realized that his time was more valuable, leading him to hire someone. However, he also cautioned about underestimating expenses like contractors and property managers when buying properties, which can significantly impact cash flow. He learned this lesson the hard way when he failed to account for these costs when starting out and was later unable to scale. The speaker emphasized that the success or failure of a real estate investment is decided during the acquisition process, and buying right is crucial. He also shared how he made choices based on what he had at the time, trading time for cash down payments, but now understands the importance of accounting for all expenses to make informed decisions. Overall, the key takeaway is that effective real estate investing requires a thoughtful approach to balancing time and money, as well as careful planning and consideration of all expenses.
From managing properties to mentoring - learning from mistakes: Making mistakes is part of growth, find mentors for wisdom and value, and focus on building relationships instead of just asking for advice.
Growth and experience in real estate, or any business, often involves making mistakes and learning from them. The speaker shares his own experience of transitioning from managing properties himself to bringing in property management and dealing with a decrease in cash flow. He acknowledges the mental challenge of giving up the income but recognizes the value of receiving profits instead of doing all the work himself. The speaker also emphasizes the importance of mentorship and learning from others' experiences, whether formalized or informal. He shares an example of Ben, who piggybacks on his experiences and wisdom in real estate. The speaker encourages those looking to get into real estate to find experienced mentors and build relationships, providing value instead of just asking for advice.
Building a successful team: Hire for mindset and aptitude: Successful entrepreneurs prioritize hiring people with the right mindset and aptitude over just skills, and document their own track record to attract investors and partners.
Successful people, like Brandon, look for others who resonate with their thinking and have a proven track record of success when building a team. Brandon emphasizes the importance of getting to know someone's thought process, attitude, and aptitude during the hiring process, rather than just focusing on their skills which can be taught. He also stresses the importance of documenting your own track record to demonstrate your worthiness to potential investors or partners when looking to scale a business. By focusing on these key components, Brandon has built a successful team and a $30 million company.
Documenting and sharing experiences in real estate: Sharing your real estate journey publicly through a blog, forum, or spreadsheet can attract partners, build credibility, and keep you accountable.
Documenting your track record and sharing your experiences publicly can lead to significant growth in your real estate business. As shared in the conversation, Jay Scott's blog, 123 Flip, was a game-changer for many aspiring house flippers. By meticulously recording each property he flipped, he provided a valuable learning resource for others, kept himself accountable, and even found partners and opportunities for collaboration. The success stories forum on BiggerPockets serves a similar purpose, allowing individuals to share their deals and accomplishments with a community of like-minded individuals. Even a simple spreadsheet documenting vital statistics can be a good starting point, but adding photographic documentation and sharing it publicly can make your progress more tangible and resonate emotionally with others. Whether you're looking to scale your business or just starting out, documenting and sharing your experiences can help attract partners, build credibility, and keep you accountable.
Learning from Others' Experiences in Real Estate Investing: Focus on doing the right thing, have adequate insurance, and be prepared for unexpected expenses to mitigate risks in real estate investing, even when growing a business may involve lawsuits.
The BiggerPockets community offers a wealth of knowledge and inspiration through member blogs and forums. Beginners and experienced investors alike can benefit from reading about others' experiences, learn from their successes and mistakes, and potentially connect with like-minded individuals. However, as investors grow and expand their businesses, they may face increased risks, including lawsuits. While setting up an LLC can provide some protection, it may not entirely prevent lawsuits or cover legal fees. Instead, focusing on doing the right thing, having adequate insurance, and being prepared for unexpected expenses are essential. Ultimately, growing a business involves taking calculated risks and learning from experiences, including dealing with lawsuits.
Maintaining work-life balance crucial for entrepreneurs: Entrepreneurs must prioritize personal time and create boundaries to foster relationships and recharge, even if it means long hours and personal sacrifices initially. Use technology wisely to maintain balance and allow for mental clarity and creativity.
Maintaining a healthy work-life balance is crucial for entrepreneurs, especially during the early stages of building a business. However, achieving this balance can be challenging, and it often comes at a price, such as long hours and personal sacrifices. Over time, as businesses grow and systems become more established, entrepreneurs can begin to step back and create boundaries to prioritize personal time. This separation between work and personal life is essential for recharging the brain, fostering relationships, and ultimately growing a successful business. The use of technology, such as setting aside dedicated time away from devices, is also important in creating this balance and allowing for mental clarity and creativity. Remember, the second mouse gets the cheese, so be patient and wait for the right opportunity to present itself.
Effective business card management and thorough due diligence are crucial in real estate investing: Organize business cards, follow up with CRM, accurately estimate ARV, rehab budget, ancillary costs using reliable data and quotes, communicate with vendors, and gain financial knowledge to prevent costly mistakes.
Effective handling of business cards and thorough due diligence are crucial aspects of successful real estate investing. Business cards should be organized and followed up on using a CRM or other system to ensure potential contacts are engaged and informed. In the due diligence process, accurately estimating the after repaired value (ARV), rehab budget, and ancillary costs is essential to avoid financial surprises. Utilizing reliable comparable sales data, obtaining contractor quotes, and communicating with vendors are key steps to ensure an accurate assessment of costs. A college degree may not be required for a career in real estate investing, but a solid education in finance and investments can provide valuable knowledge and help prevent costly mistakes. Ultimately, a successful real estate investor needs a solid system for managing business relationships and a deep understanding of the financial aspects of their projects.
Learning and Adapting for Growth: Successful investors distinguish themselves by trying new strategies, having a solid business plan, continuous learning, and adapting to new opportunities. They learn from various resources like BiggerPockets and business books, and maintain a growth mindset to overcome internal barriers.
Successful real estate investors and business owners distinguish themselves from those who never scale by having a clear understanding of their strengths and weaknesses. The investor in this conversation emphasized the importance of trying new strategies on one's own before seeking external funding. He also highlighted the necessity of having a well-thought-out business plan to present to potential investors. Furthermore, continuous learning and adaptation are crucial elements for growth. The investor mentioned that he primarily learns from online resources like BiggerPockets, but encourages the exploration of various business books and websites. Lastly, having the right mindset and overcoming internal barriers are essential for scaling a business.
Embrace new experiences for growth: Expanding comfort zone leads to personal and business growth, even if uncomfortable at first. Embrace new experiences and risks for learning and progress.
Expanding your comfort zone is essential for personal and business growth. Fear of the unknown and potential setbacks can hold us back, but every challenge presents an opportunity for learning and growth. As Brian shared, his own experiences have taught him that even the toughest times have led him to new heights. To grow, we must be willing to take risks and embrace new experiences, even if they make us uncomfortable at first. Brian's insights can be applied to various aspects of life, including real estate investing. To learn more about Brian and Praxis Capital, check out his website at praxcap.com. Remember, financial freedom isn't about timing the market; it's about being in the market and taking action. If you're ready to take your real estate investing game to the next level, find an investor-friendly agent through BiggerPockets Agent Finder at biggerpockets.com/deals.
