Podcast Summary
The Importance of Community Engagement in Real Estate Investing: Stay informed, engaged, and active in the real estate community to succeed in investing, build trust and learn from others through online forums and networking.
Investing in real estate, whether in the US or abroad, requires active participation and engagement within a community. This was emphasized during the Bigger Pockets Podcast episode 89, where hosts Josh Dorkin and Brandon Turner shared their experiences in New Orleans and met with financial writers. They also highlighted the importance of getting involved in online forums, such as BiggerPockets, to build trust and learn from others. The episode featured a guest, Angelo Ramura, an Australian investor who has made hundreds of transactions in the US, emphasizing the benefits of networking and building a team. Additionally, they discussed investment opportunities with no or low money down through companies like Rent A Retirement and Integra Development Group. Overall, the episode reinforced the importance of staying informed, engaged, and active in the real estate community to succeed in investing.
Real Estate Investment Opportunities with Added Benefits: Integra Development Group offers built-in equity and appreciation, while Vacasa simplifies vacation home ownership and generates higher revenue
Both Integra Development Group and Vacasa offer simplified investment opportunities with added benefits. Integra Development Group provides a chance to invest in real estate with built-in equity and appreciation, allowing tenants to become homeowners while you build wealth. On the other hand, Vacasa simplifies the vacation home ownership experience by managing properties, ensuring maintenance, and generating higher revenue for homeowners. Angelo, an investor from Australia, shared his journey into real estate, starting from a soccer career, quitting school to focus on soccer, and eventually finding success through hard work and determination. His story demonstrates that formal education is not always necessary for success in real estate investing.
Networking with high net worth individuals is crucial for success in real estate: Drop out of school, become successful in real estate, emphasize networking, reach out proactively, gain experience through various roles, and learn from successful people.
Formal education is important, but personal development and real-world experience are crucial for achieving success in real estate. The speaker, who dropped out of school at 14 and became successful in real estate, emphasized the importance of networking with high net worth individuals and learning from them. He advised young people to be proactive in reaching out to people in the industry, whether through phone calls, emails, or social media. The speaker also shared that he had been involved in over 300 deals, not all of which were with his own funds. He explained that he had acted as a joint venture partner, a bird dogger, and a buyer's agent for others. These experiences expanded his knowledge and expertise in the field. Overall, the speaker's message was that success in real estate comes from a combination of education, experience, and networking.
Real estate investing strategies differ globally: Successful real estate investing requires careful planning, assessment, and adaptability to new environments
Real estate investing, while having similar principles, can vary greatly in different parts of the world due to significant differences in costs, markets, and regulations. The speaker, who had successful experiences in Australia, found the US market in the Midwest, particularly in Ohio, to be an exceptional opportunity due to lower property prices and higher potential for profit. However, his first deal in Australia, which he almost didn't survive, taught him the importance of careful planning and assessment. Despite the challenges, his passion for real estate investing drove him to adapt and thrive in new environments.
Learning from mistakes and building trust in real estate: Success in real estate requires calculated risks, but trust and strong relationships with partners are crucial to avoid costly mistakes.
Building a successful real estate portfolio involves taking calculated risks and learning from mistakes, especially when it comes to trusting the right people. The speaker shared a harrowing experience of pushing himself too far while trying to save money on travel, leading to a severe car accident. However, he remained determined to achieve his goal of creating passive income for himself and his loved ones. He focused on fix and flip properties due to visa restrictions, using the profits to eventually build a buy and hold portfolio. However, he emphasized the importance of building trust and strong relationships with partners, as the biggest mistakes and losses in his career came from working with dishonest and unloyal individuals. Overall, his advice is to prioritize loyalty, honesty, and avoiding greed when selecting partners in real estate investments.
Building trust in long-term business relationships: Focus on finding trustworthy individuals for long-term business relationships in real estate, ask potential partners if they're willing to commit to a 6-9 month trust-building process, and be prepared to eliminate 99% of untrustworthy operators.
While statistics and demographics are important factors in real estate investing, trusting competent and knowledgeable people to manage your properties and investments is crucial to avoiding financial losses. The speaker emphasizes the importance of building long-term relationships with these individuals, as opposed to focusing on quick transactions. He suggests asking potential business partners if they would be willing to spend 6 to 9 months or more building trust and answering questions, as a way to eliminate 99% of untrustworthy operators. While this approach may dissuade many people, the speaker believes it's worth the effort to find the 1% of reliable and trustworthy individuals who are committed to a long-term business relationship.
Taking Time to Build Trust and Relationships: Being active and engaged in communities, finding properties through various methods, and staying patient are keys to building trust and relationships in real estate investing.
Building trust and relationships takes time. The speaker shared his personal experience of losing money due to not taking enough time to find the right business partner, and emphasized the importance of being active and engaged in communities, such as the BiggerPockets forum, to establish credibility and trust. He also discussed how he and his business partner found success by using various methods to find properties, including direct mail, bandit signs, and Craigslist, and by building relationships with wholesalers and financial institutions. Ultimately, the key is to stay active, keep building relationships, and be patient as trust and opportunities develop over time.
Building a strong team for real estate investing success: Focus on buying distressed properties, finance with cash and hard money, have around 50 leads in network, hire competent employees, and expand business with good people
Successful real estate investing involves building a strong team and having a clear strategy. The speaker shared that they have around 50 potential leads in their network and focus on buying distressed properties to renovate and sell or rent out. They finance most deals with their own cash but also use hard money when needed. Their team currently consists of two full-time employees, and they plan to hire more as revenue allows. The importance of having good people around you cannot be overstated, as they help increase the volume of deals and contribute to the success of the business. The speaker's girlfriend, Dominique, plays a crucial role as his personal assistant, handling administrative tasks such as typing out his blogs. By hiring and empowering competent individuals, investors can expand their business and achieve greater success.
Effective property management is crucial for a successful turnkey business: Hire passionate and authentic team members who share the same vision and work hard towards common goals for effective property management in a turnkey real estate business.
Effective property management is crucial for a successful turnkey real estate business. The business owners discussed the importance of having in-house property management and shared their experiences of finding dedicated team members by being passionate and authentic in their vision. They emphasized that people are drawn to those who have a clear purpose and are willing to work hard towards their goals. The owners also mentioned the importance of hiring like-minded individuals who share the same passion for real estate and the turnkey business model. Passion inspires passion, and a great leader sets the tone for a motivated team. By focusing on the small details and doing things right, the bigger opportunities and successes will follow.
Revolutionizing Real Estate Investing with Technology: Tools like DealMachine simplify lead generation, Relay streamlines banking, Host Financial eases loan qualification, and 1031 exchanges through First American Exchange Company optimize tax planning for investors.
Technology is revolutionizing various aspects of real estate investing, from lead generation to banking. During the discussion, the speakers highlighted DealMachine and its role in simplifying lead generation by providing unlimited access to contact information and phone numbers for investors. Additionally, Relay was mentioned as a game-changer in banking, allowing users to open business accounts online with ease and without any hassle. Furthermore, Host Financial was introduced as a lender that makes qualifying for a loan a seamless experience for investors. Lastly, the importance of 1031 exchanges in tax planning for real estate investors was emphasized, with First American Exchange Company being a trusted partner in this area. Overall, these tools and strategies can help investors save time, reduce stress, and ultimately grow their portfolios more effectively.
Maintaining trustworthy relationships with contractors: Hire a competent manager to oversee contractors and property managers. Show financial responsibility and earn credibility at a young age.
Building and maintaining trustworthy relationships with contractors is crucial for long-term business success. However, managing people can be a challenge, and bringing in-house staff may not always be the solution for everyone. Instead, consider hiring a competent manager to oversee contractors and property managers. As for gaining credibility at a young age, it takes time and consistent performance. Showing that you're capable and trustworthy by handling financial responsibilities can help earn respect from clients and industry peers. Additionally, having a more experienced and authoritative figure, like a business partner, can help establish trust and credibility when necessary.
Business Partners Complementing Each Other's Strengths: Angelo and Tim's unique partnership allows them to maintain professional relationships and expand their business in the real estate market by complementing each other's strengths and weaknesses. They rely on each other to handle difficult individuals and situations, and are exploring new marketing strategies to reach a wider audience.
Angelo and Tim have a unique business partnership where they complement each other's strengths and weaknesses. When dealing with difficult individuals or situations, they rely on each other to maintain professional relationships and ensure business continuity. Angelo, being passionate and intense, sometimes faces resistance from certain wholesalers or individuals. In such cases, he brings in Tim, who acts as a mediator and continues the relationship. This dynamic allows them to expand their business and maintain a strong presence in the real estate market. They are currently licensed realtors and are considering bringing an in-house broker to further streamline their turnkey business. They sell properties through established sales channels and are exploring new marketing strategies with the help of an SEO tech expert to expand their reach to the East and West Coasts and potentially work with Canadian investors.
Turnkey Real Estate Investing: Passive Income with a Price: Turnkey investing offers passive income through pre-renovated, tenanted properties, but critics argue higher costs may outweigh convenience. Research providers for accuracy and transparency.
Turnkey real estate investing involves purchasing completely renovated and tenanted properties, allowing investors to collect rent passively with minimal involvement. However, critics argue that turnkey providers charge higher prices due to the convenience and potential discrepancies between promised and actual returns. The debate continues on the value of turnkey investing, with some investors preferring the hands-on approach of finding and renovating properties themselves. It's essential for potential investors to thoroughly research turnkey providers, ensuring they provide accurate financial projections and maintain transparency in their business practices.
Building trust with turnkey operators: Ensure all numbers provided by turnkey operators are genuine, include all costs, and verify their legitimacy through research and testimonials to build trust and secure successful real estate investments.
Transparency and trust are crucial in real estate investing, especially when dealing with turnkey operators. Misrepresentation of property values and numbers can lead to misunderstandings and mistrust. It's essential to ensure that all numbers provided are genuine and include all costs, such as vacancy and CapEx. Building a relationship and trust with a turnkey operator over an extended period can help investors verify the legitimacy of the numbers and the performance of their investment properties. C and D class properties require more attention and management, leading to higher volatility and uncertainty in returns. Ultimately, it's important to do thorough research, get testimonials from other investors, and verify the numbers before making an investment decision. Trust is a significant factor in the success of any real estate investment, and taking the time to build a relationship with a reputable operator can lead to better returns and peace of mind.
Expanding a Business and Helping Others Succeed: The business owner aims to expand, help investors, and get on the Inc. 5000 list. He avoids foundation issues in real estate and considers felons for renting. He suggests insulating properties to lower heating bills and enjoys collecting rent monthly. Ethics matter, especially in partnerships.
The business owner aims to expand his business by adding new employees, opening up new markets, and helping as many investors as possible achieve their goals. He aspires to grow the business and get on the Inc. 5000 list of fastest growing companies. When it comes to real estate investing, he avoids properties with foundation issues and considers renting to tenants with felonies on a case-by-case basis. He suggests insulating the roof and walls to lower tenants' heating bills and keep them happy, and he enjoys collecting rent on the first of the month. Regarding ethics, he would likely not partner with someone who is cheating on their spouse due to trust and relationship concerns.
The Importance of Perseverance in Real Estate: Success in real estate requires pushing through challenges and not letting setbacks deter you. Read books for personal and business growth, stay focused, keep learning, and never give up.
Success in real estate requires perseverance and the ability to keep going despite challenges. Angelo Romora, a successful real estate investor, emphasized the importance of pushing through difficult times and not letting setbacks deter you from your goals. He also highlighted the importance of reading books like "Think and Grow Rich" and "How to Win Friends and Influence People" for personal and business growth. Romora shared that his love for real estate is his hobby and he spends most of his time and energy on it. He also mentioned that his website, Ohio Cash Flow, can be found on the first page of Google if you search for his name or the company name. Overall, Romora's advice for those looking to succeed in real estate is to stay focused, keep learning, and never give up.
Take action and find an investor-friendly agent: To succeed in real estate investing, get out there and look for deals, network, research, and find an investor-friendly agent to help navigate the market and make informed decisions.
Investing in real estate requires action and passion. Angelo and Josh emphasized the importance of getting out there and looking for deals, whether that's through networking or research. They also highlighted the significance of finding an investor-friendly agent to help navigate the market and make informed decisions. Ultimately, the key to success in real estate investing is not about timing the market, but rather having the right mindset and putting in the effort. So, if you're serious about getting started or taking your real estate investing game to the next level, don't just be an academic - get out there and make it happen with passion and the help of a trusted agent. To find your investor-friendly agent, visit biggerpockets.com/deals and enter your details to instantly match with a local market expert. Remember, the market may change, but your goal of financial freedom remains the same.