Mon, 27 July 2020
In this episode, I am thrilled to interview Michael J. Maher, who is CEO of REFERCO, the world's foremost authority in business referrals. In just his third year in real estate, he did 187 transactions and over $40 million, entirely from referrals. For the next 8 years, he received over 500 referrals every single year and netted over $1 million. Michael is an internationally bestselling author and his book (7L) The Seven Levels of Communication: Go from Relationships to Referrals has been the #1 book in Real Estate Sales on Amazon for over 9 straight years. In addition to these impressive accomplishments, he has shared the stage George W. Bush, Tony Robbins, Barbara Corcoran, and John Maxwell.
As we often do on the show, we started by talking about Michael’s background. He began his working career as a high school math teacher and coach of three sports: football, basketball, and baseball. He spoke about how dedicated he was and earned District Teacher of the Year in his first year teaching. Michael had an interest in real estate so he got licensed as an agent at the same time he bought his first home. He talks about how he built his business almost entirely through word of mouth and referrals.
Because Michael became an agent in 1999, I asked him how he weathered the housing market crash years. He said that because they were getting almost all their business through referrals, they ended up having records years during that period. This is when Michael first knew he was going to have to write a book because he had discovered a system of doing business that worked well in good markets, but even better in depressed times. He spoke about how the 7L system is basically tailor-made for a challenging time like we are facing during the COVID-19 pandemic. We talked about specific marketing and deal-generating strategies based on his 7L principles, going into detail about making your marketing as personal as possible.
I then asked Michael about his book, (7L) The Seven Levels of Communication: Go from Relationships to Referrals. He walked us through the levels and their amount of influence in relationships with people. The second-most powerful level involves events and seminars, and Michael explained some of the programs that they offer. That led us to a conversation on the necessity of some structure to your day in order to increase productivity. He used the example of going to school and having an intense focus on a particular subject for a pre-determined amount of time every day. Michael also walked us through the morning and evening rituals, which he imparts in his book and classes through the use of acronyms.
Michael then told us about how he helps business owners build their businesses on a foundation of love, generosity, and appreciation. He went into great detail about the personal and professional benefits of choosing to live and conduct yourself this way. Michael described love as our super-power, and generosity is that love in action. He also explained that it is vital for us to appreciate everything that happens in our lives, good or bad.
I can’t tell you how powerful and wisdom-packed this episode is! You would be crazy not to join me as I interview super-successful entrepreneur, Michael J. Maher!
“Good market - referrals are really good. Bad market - referrals are everything.”
“When people are thinking they are going to lose their home, they want to talk to someone they trust.”
“I’m big into personalized and customized service.”
“What is the most important currency in today’s world? It’s not money - it’s trust.”
“Love is your superpower.”
“What I’m really excited about now is helping people get structure in a world of chaos.”
“Why do we charge for them? So people show up. If they have skin in the game, they come.”
“There is a lot of people that would trade their wealth for health and happiness right now.”
“Energy is the most precious resource known to man.”
“You can change your life by changing your strategy.”
“We are going to have a day - why not structure it in the most effective way you can possibly structure it?”
“It mixes the best of ‘go with the flow’ with ‘get in the flow.’”
“Your purpose in life is to be referrable.”
“Picking and choosing the opportunity is a lot better than chasing opportunity.”
Direct download: 7_Levels_Of_Communication_and_Why_Structure_Matters_with_Michael_J_Maher.mp3
Category:general -- posted at: 3:30am EDT
Mon, 20 July 2020
In this episode, I am excited to interview Justin Silverio, who is the owner of JS2 Homes and Open Letter Marketing. Justin has been investing in real estate since 2011 with extensive experience in rehabbing, new construction, wholesaling, and multi-family rental properties in and around the Boston area. Justin founded Open Letter Marketing in 2016 with a focus on providing real estate investors with a more effective direct to seller marketing approach than the outdated methods. Justin’s company works with hundreds of investors throughout the country and is recognized as one of the top real estate investor marketing companies.
Justin begins by telling us about his background and how he always had a love of houses because his dad was a contractor. The flipping television shows that came out around 2009 really piqued his interest as he was working as an accountant, but didn’t love it. Partnering with his father in finding and rehabbing houses married two of Justin’s passions together - love of houses and of numbers. For the first five years in real estate investing, Justin and his dad were flipping houses while he continued to work his full-time job, also while doing marketing for new properties. We talked about the challenges inherent with the situation, but also how it is possible to make it work.
I asked Justin how they funded their first deal and he described the process he went through in order to pitch three regional banks to do business with them. He did his homework, knew what information the banks wanted to see, and put together a five-year business plan to get funding before selecting his first property.
Justin then described what his business looks like today. He went from rehabbing entry-level homes, to mid-level homes, to high-end homes and new construction, to what he is doing today which is primarily multi-family condo conversions. The bulk of his day-to-day business dealings is made up of wholesaling homes while staying involved with the multi-family developments which are more long-term projects. He talked about how competition and profit margin per time spent really drove him to switch his business model.
Justin then told us about his company Open Letter Marketing, which was created to provide real estate investors with direct to seller marketing. I asked Justin to describe what their program does better than his competitors and he spoke to the fact that his product looks at the very fine details. With his product, they promote campaigns with a sequence of letters where each letter builds off of the prior.
I asked Justin to describe the current project he is working on, software called OLM InvestorHub, which is a lead and marketing management system based on his own business process. It will enable investors to purchase or import multiple lists, identify properties that are on more than one list, and identify the quality of a list once it is imported. Once the lead quality has been identified, you can create marketing campaigns specific to each. Justin talks about the software’s dashboard and how it organizes all of the marketing tools an investor is using and sends reminders to perform certain tasks to keep everything organized and visible to the user. They also have a CRM product that communicates with InvestorHub called OLM DealFlow.
Going forward, Justin is concerned with defining a systematic process for his wholesaling business so they can grow and expand. He also talked about looking at the more technical side of direct to seller marketing and how that can influence the direction of Open Letter Marketing.
During this interview, Justin speaks about being on the front lines in order to engineer new things to help people get better responses in changing market conditions. This is an incredibly informative episode for helping investors use the most current tools in order to fuel their business and I hope you will join us!
“The degree is just the gateway to the world you want to get into.”
“I know I have something that works much better and there is nothing on the market that offers this.”
“If a marketing strategy works in my real estate investment business, I’m going to offer it to my customers.”
“It is almost though you are building a conversation with the seller, and you do it in a specific way so that they are getting to know about you more with each letter.”
“I’m just trying to create a solution for my own issue.”
“My goal is to truly make an impact and provide value to as many real estate investors as I possibly can.”
“How can I create a product to make everyone an expert in marketing?”
“You end up doing lazy marketing, out of convenience, rather than strategy.”
“We are trying to build the tools to free up everybody’s time.”
“Marketing for most investors is just disjointed.”
“I always want to be on the very front line.”
“What you are working on is like the oxygen of a real estate company.”
Direct download: Wholesaling_Multifamily_and_Marketing_Products_to_Increase_Your_Lead_Flow.mp3
Category:general -- posted at: 3:30am EDT
Mon, 13 July 2020
In this episode, I am excited to interview Justin Colby who is the Founder and President of The Science of Flipping and Phoenix Wealth Builders. The Science of Flipping is a top-ranked real estate investing podcast and Justin now has a second podcast called The Entrepreneur DNA for those going through the entrepreneurial journey. His real estate investment company, Phoenix Wealth Builders, specializes in purchasing, rehab, wholesaling, and wholetailing properties in the Metro Phoenix Area and they have flipped and wholesaled over 1500 properties to date. Justin has been called a master at finding deals in a market that many say is the most difficult market to be a real estate investor.
Justin began by telling us that he started as a realtor in 2005 and then bought a brokerage with a friend. He talked about how it was almost impossible not to make a lot of money in real estate in the years before the market crash. Being really young at that time, he spent a ton of money, had a really expensive car and condo, which all went away in 2007. He shares how he lost everything and ended up sleeping on his buddy’s couch.
Things started to turn around for Justin when he and a friend decided to begin investing in real estate. They ended up using transactional funding for their deals, which was popular at that time, where they would get a deal funded and closed basically simultaneously or same day. I asked if, at this time, he was doing any work on these properties and he said no, effectively what he was doing was wholetailing. Justin talked about setting a goal for himself of calling 100 realtors a day in order to find deals and people to work with, and it took a full nine months before they had their first deal.
After Justin talked about his resilience and fortitude in getting some traction in his new business, I asked him to share how he gets his deals. He addressed several different marketing strategies, including pay per click advertising, direct mail, cold-calling and auto-texting, and driving for dollars. Justin also examined the level of seller motivation and relative cost for each, as well.
I then asked Justin to describe how he is brokering deals by working with iBuyer companies such as Opendoor and Offerpad. If a deal isn’t attractive to his company for wholesaling, wholetailing, flipping, or even buy-and-hold, he will inquire with his realtor about the price one of these companies will offer the seller for their home and take a portion of the transaction fees if he can successfully hook them up. This is a really creative way of working with them instead of getting swallowed up by them as a smaller investor.
We discussed how the COVID pandemic was affecting his business and how he has been able to adapt. Justin says he really prides himself on the ability to stay flexible and make adjustments, if necessary. He talks about how he had refocused his energy on his business after a partnership fell through, and when the pandemic hit, it was actually good timing for him.
Justin was incredibly transparent in his business dealings and if you join us I know you will get a ton of actionable wisdom!
“The beginning years were the fun ones - when I was broke, busted, and disgusted.”
“Pain is more of a motivator than the carrot.”
“Just talk about what you are doing and people will get excited and gravitate toward you.”
“Here is my secret sauce - I’m a people person.”
“I just had fortitude - I was willing to endure pain when other people can’t or won’t.”
“I know what I want to achieve and I am relentless in trying to achieve it regardless of when I achieve it.”
“People overestimate what they can accomplish in a year and underestimate what they can accomplish in ten.”
“You can get exactly what you want if you are willing to: (a) work for it but (b) have patience.”
“You need to have more than one market strategy going at all times.”
“I have been able to make adjustments and pivot when required, and remained very flexible.”
“The only times I ever got hurt was when I chased money.”
Direct download: Flipping_Wholesailing_and_Wholetailing_over_1500_houses_with_Justin_Colby.mp3
Category:general -- posted at: 3:30am EDT
Mon, 6 July 2020
In this episode, I have the privilege of interviewing Erik Cabral. Erik is the founder of the media agency, On Air Brands; the innovative networking and podcasting event PodMAX; the real estate investment company Mindado Investment Group; and is host, co-host, and producer on multiple shows, including the Entrepreneurs Circle podcast. With multiple businesses, partnerships, and podcasts Erik is the quintessential “serial entrepreneur” who spends much of his time helping others grow their businesses, brands, and reputation.
We began by talking about Erik’s time in the corporate world, working in a creative capacity for Big Pharma, and how he began investigating the concept of real estate investing after being laid-off. He shares how friendly and helpful he found investors while attending events and REIAs, which was very different from the highly-competitive, cutthroat industry he had worked in. Erik took his background in creative work to not only build his own brand as he began investing, but also as a bartering tool to help other investors, which is how he started On Air Brands.
Erik then shared the details of his first deal in which he hired a coach who was an established investor in order to help mentor him through the process. His coach took him to all of his rentals, introduced him to all of his tenants, and finally made him run the numbers on the duplex he ended up buying. He ended up using the BRRRR strategy with this property and he says it cash-flows like crazy.
Erik talked about how he is more active building his media agency than actively flipping or wholesaling right now. He expressed how passionate he is about helping people sell their home, but how much of his time he had to devote to really do that well. He also talks about the inherent challenges all investors face when rehabbing houses and that didn’t feel like time well spent to him either.
I then asked Erik to explain On Air Brands, how it came about and who the company serves. He said that initially, they were doing logos, branding, websites, etc. to help out real estate investors, but it grew as people experienced how professional Erik’s podcast production was and people wanted the same for their own shows. He explained that it all grew from investors who have multiple businesses needing to take their message and their platform into one place.
We talked about how diverse Erik’s business interests are and how he is a partner in Renault Winery & Resort, which is the 3rd oldest winery in the US. He talks about what a mess the project was to begin with but how it has turned out to be such an interesting collaboration with people he is pursuing other investments with. Erik talks about how great it is to be working with a “tribe” of people, all focused on lifting one another up and helping each other to be successful.
We also talked about the birth and evolution of his newest project, PodMAX. It is a network of podcasting shows, especially in the investing space, who are collaborating in Erik’s office space which has several make-shift podcasting studios. We discussed at length how important networking is, meeting people, and the exchange of ideas being vital to our growth as human beings and business people.
This is a super fun and incredibly informative interview and I urge you to join Erik Cabral and me to take in all of this great actionable advice!
“[In the corporate world] you are building someone else’s wealth, you’re aligning behind their goals to direct their ship where they’re trying to go.”
“Mike: Where was most of your real estate knowledge gained?
Erik: It was doing. I had to do it.”
“I had to start speaking the language, and then I had to start offering value.”
“They are chasing just money, but they’re not even paying attention to what their heart or their brain is telling them about where they should be.”
“Don’t they need to know you, then like you, and then trust you in order for you to start doing some things together? Well, podcasting does exactly that for you upfront.”
“Podcasting is part of that - one spoke on the wheel of marketing.”
“Business owners have to be in the business of media. We all have to realize we are social media marketing engines.”
“When you can surround yourself with people who are levels up, you learn so much from them.”
Direct download: Multi-family_Investing_Networking_and_Learning_from_Mentors.mp3
Category:general -- posted at: 3:30am EDT