Mon, 29 March 2021
My guest today is a fellow real estate investor Frank Scappaticci. Frank is a Westpoint graduate who is on a mission to become a premier buyer and seller, as well as a thought leader, in markets around the United States while placing a high priority on integrity. Together with his partner, John Plumstead, Frank founded Gray Line Investments in 2020. They are a real estate solutions and investment firm that specializes in helping homeowners get rid of burdensome houses quickly. Their goal is to help people improve their lives through real estate investing, education, mentorship, and giving back to veterans.
Our conversion started with Frank’s backstory. His background, for most of his adult life, has been in financial services. Prior to moving full-time into real estate, he worked at JP Morgan, and prior to that, he was an army officer. Frank says that he was not interested in real estate until he hit the age of 30, after buying his primary residence in Westchester. During that time, he fell in love with the house search process. In February 2020, John Plumstead, who had been investing in real estate for five years, reached out to him and they started their company Gray Line Investments.
After learning about Frank’s background, we move on to talking about the concept of tired landlords. This strategy has helped Frank and his partner close four deals in 45 days in the Oklahoma market. Frank explains their process of finding tired landlords by using the PropStream app to filter high equity and years of ownership into property searches. They would then pull that list, put it into CSV, and upload it to Lead Sherpa, an SMS texting platform. By doing this, they were able to get an enormous number of leads.
We then talk about the conversation that Frank had with his wife, after realizing that real estate was the way to go. Frank shares that the conversation about starting real estate wasn’t particularly difficult. The difficult part for him was explaining to his wife that he wanted to completely quit his full-time job. He wanted at least three months of operating expenses in the bank account for the company and a consistent deal flow before quitting his job.
Our next topic of conversation was the structure of Frank’s company. Their business model is wholesaling and fix-and-flip. In percentage, it is 80% wholesale and 20% fix-and-flip from a volume perspective and 30% revenue from flipping and 70% revenue from wholesaling. They operate in over 10 cities, but they only have really strong contractors in a handful of those cities and Frank recognizes how important it is to have a good contractor when it comes to flipping.
We also walk through the structure of Frank’s company, from a personnel standpoint. They have an acquisition manager, who manages the lead specialists. Lead specialists screen the sellers and notify the acquisition manager when a seller is ready for an appointment. Frank then shares his systems when it comes to wholesaling and flipping remotely across the country.
Lastly, we talk about Frank’s vision for 2021. Frank shares with us that his company is getting incredible buyer demand lately in their wholesaling operation. Their goal for the first quarter is to sustain a pace where they're closing three deals per week, for an overall 150-200 deals in 2021. They are also looking at other ways to expand their brand at this point.
Don’t miss this episode of the Just Start Real Estate Podcast with the super inspiring Frank Scappaticci! As a relative newbie in the world of investing, Frank shares some great insight and attitude with our listeners!
“People who try to get their entire business automated and systemized are the ones who never get off the ground because they're always preparing to prepare.”
“I want to play offense as much as possible. Once you have a really good offense, play some defense to defend the business you have.”
“You need to play defense, but you never stop playing offense. If offense becomes backseat to defense, your business will start sliding downhill.”
“It’s not cheap to wholesale, especially once you scale.”
“I don't nickel and dime my contractors at the beginning. If I find a trustworthy person, I don't try to knock them down on their pricing.”
“I try to treat them as a consultant and then good contractors feel valued. They're doing it to make money but it doesn't hurt to have them psychologically invested in the project.”
“I don't think real estate needs to be crazy and creative. You need to be good at blocking and tackling the fundamentals, and then you'll do just fine, you'll scale up.”
“You create expectations on your team. If you raise the expectations, the game changes, and then the activities change, and the results can change.”
Direct download: From_West_Point_to_Running_a_Highly_Successful_Real_Estate_Business.mp3
Category:general -- posted at: 3:30am EDT
Thu, 25 March 2021
In this episode, I interview Justin Hannah, a successful real estate investor and host of the popular “Real Estate Investing 365” podcast. He discusses how he increased his net worth from $5,000 at 20 years old to over 7 figures by 31 years old and quit his job as a lineman to pursue real estate full-time. Today, Justin owns over $2 million worth of real estate, which consists of 12 rental units and a single-family home.
Justin shares his background story. He explains his entry into real estate starting as a product of his competitive relationship with his cousin who, at the time bought a house, causing him to do so, too. Working on power lines had been Justin's job, and although it paid well, it was too demanding for someone who wanted to spend more time with family. It was mostly coincidental that he got into real estate at such a lucrative period.
Justin explains that his decision to go into real estate investing was after buying his first rental property. While admitting that over the past ten years he could have made much more progress, he walks us through how he essentially acquired his first three rental units and his primary house for $18,000. It is important to note that he never wanted to stay working as a lineman, and this motivated him to use real estate as his exit strategy. Comparatively, he realized he could make his entire pension as a lineman from one rental facility in a couple of years.
Going forward, Justin’s goal would be to buy more rental properties and to get involved with the single-family market, because of how lucrative it is currently. His story reflects that you don't need to have hundreds of thousands of dollars to start; you just need a little money and trade upwards.
I asked Justin to describe what his business would ideally look like in five years. He shares that he would like to have 100 units, and $15,000 per month in passive income, noting the practical steps he is taking towards achieving that. His immediate goal this year is to get ten more units and do twenty off-market deals. One way he is trying to achieve these goals is by doing a 30-day challenge to raise half a million dollars. I explain that part of being a real estate investor is fundraising, especially in cases like Justin's where the investor is not currently bankable.
Justin admits that he is working on his mindset to be less negative and improve on his psychological well-being. When you're in your job for hours a day, you're focused on that, so it's hard for your mind to let go and start being creative. After quitting his job, Justin notes that his mind started thinking expansively, both personally and in his business, and so the growth is exponential.
We talked about Justin’s podcast, Real Estate Investing 365. He shares that the podcast was started because he was having difficulty finding people who were above him in real estate, so the goal was Networking. Additionally, it helped him offer advice to people and help others avoid the mistakes he had made.
You will not want to miss this awesome episode of the Just Start Real Estate Podcast with up-and-coming investor and podcaster, Justin Hannah!
"My main goal is not to be a wholesaler; I want to find more properties that meet my criteria to own as rental properties."
"In five years, I would like to own one hundred units. Right now, I'm not bankable so I have to be creative."
"Something as simple as not waking up to an alarm clock is magical."
"When you are an entrepreneur, you can decide what works best for you."
“It is so important to work on your mindset, to be more positive, and improve your psychological well-being.”
Mon, 22 March 2021
For today's episode, I gladly welcome realtor turned investor Bentley Pugh, who joins us to discuss his incredible journey in life and business so far. In 2006, Bentley sold his landscaping company and became an agent most interested in commercial real estate. Since then, he's evolved from a real estate broker to managing his family-owned real estate investment firm, Beachworks LLC.
At first, we learn how Bentley's backstory has profoundly impacted his career and business. He studied business and marketing, and while in college, started a landscaping company to have a passive income source. He spent the next five to six years as a realtor and then turned to real estate as an investor. Bentley has shared with us today why he chose to do that and how the pivot helped him in the long run.
He shares how having the capital to start with was advantageous for them as it was rare for anybody just beginning to have enough to invest. Bentley also shares why it is essential to keep adjusting to the market's changing trends and ways. We discuss why it's important to know both knowledgeable and neutral people in life and how both can positively shape your path. If you know smarter people, you could get valuable tips to scaling and expanding your business, and if you have friends and mentors outside of the business, you have a fair chance of getting unbiased, heartfelt input from them.
Bentley also shares how relationships with contractors and others in the business are extremely important. Your business can have phenomenal growth if you find people who are really into it. He also discusses his plans and where he wishes to take his business moving forward. He still focuses on their core business, which is single-family, construction, or townhome sites, while still doing some wholesaling and flipping of properties.
We also learn how these unprecedented times of the pandemic have added to his choices on spending. Bentley has cut his expenses by 10 to 15% by filtering out what he doesn't need. He stressed what an important lesson this is for each of us to benefit us in life and business.
Please tune in to the Just Start Real Estate Podcast to know all that this extraordinary businessman has shared with us today and take your business to another level. Do not miss out on this insightful episode with Bentley Pugh!
“We can't use our new construction contractors on a flip because they're just not into that. ”
“For us, we had capital when we started out, which was very rare at the time. We were going after large, untitled, distressed development properties.”
“Real estate's sort of like a chameleon - you have to be constantly adjusting and thinking where the market is going to go.”
“Don't try to change the recipe. If the recipe works, use it. If you apply it and it doesn't work as well, then change it for sure.”
“During the pandemic, I've cut my spending probably 10% to 15%. It isn’t really affecting my business.”
“You surround yourself with some people that are smarter than you, they answer your questions, and then you can feed the end results to your buyers”
“So it's really all about relationships. Our relational foundation is a model that has never changed.”
“Helping people helps to reinforce what you already know. It also makes you realize some of the things that maybe you're not doing as well as you used to do.”
Direct download: From_Realtor_to_Successful_Real_Estate_Investor.mp3
Category:general -- posted at: 3:30am EDT
Thu, 18 March 2021
For this episode, I am happy to welcome Jason Yarusi. Jason and his wife, Pili, are active Real Estate Syndicators and Real Estate Investors. In 2016 they founded Yarusi Holdings, a multifamily investment firm and they are General Partners on over 850 units across four states with 450 units under management. The firm repositions properties through operational efficiencies, moderate to extensive renovations and complete rebranding. They are also hosts of the popular Multifamily Live Podcast and The Jason and Pili Project on Youtube. Jason and Pili are founders of the Tennessee, Kentucky and New Jersey Multifamily Foundation Club with over 2,200 members that focuses on Real Estate Syndication and Multifamily Investing.
I start by letting the audience know that Jason and his wife and I are friends and have known each other for several years, so that I will be asking him questions I already know the answers to! I know that they both started working in other fields before moving into real estate, so I asked Jason to give us some of his background. He talks about how they first met, when he was invited to perform some restoration construction work on the barge bar that Pili worked at. In the wake of Hurricane Sandy, they began working for Jason’s dad who owned a company which moves and lifts houses in New Jersey. They loved supporting and assisting in the running of their family business, but they knew they also wanted more for themselves.
When they first started in real estate investing, they were flipping and wholesaling single family homes like crazy, but they felt like they had filled their plate to overflowing and wanted a more passive income model of investing. A friend of theirs was investing in out-of-town rentals, which seemed attractive to them, but they decided to start looking at multifamily units. In 2017, they bought their first apartment building and learned the process of that kind of property investing.
Jason explained that part of the reason that flipping and wholesaling wasn’t working for them was because they were doing it locally and kept throwing themselves in the process. Not only did this take away their free-time but it often slowed down the process itself! Investing in out-of-town multifamily properties really benefited them because they were forced to hire a team and put processes in place to handle and manage these assets. Jason talks extensively about the advantages of being involved in multifamily versus single family homes.
We then discussed how Jason and Pili are reaching out and educating people in the multifamily investing model. I asked Jason to explain why they decided to do this because I know they are a super busy, young family. Jason explained how they developed relationships and made mistakes, but their hope is to have others avoid those same mistakes and realize their goals more quickly.
Jason talked about the Multifamily Live Virtual Summit that they are hosting on March 25th and 26th and he stressed how beneficial these events and meetings are for new investors. Jason explained they are having twelve active multifamily investors speak at this event and each of them have a particular superpower in order to impart as much varied information as possible to the attendees. Not only is the information provided going to be extremely actionable, but it is also FREE!
The people I trust the most in this business all definitively say that Jason is the man when it comes to multifamily investing so you will not want to miss this awesome episode the Just Start Real Estate Podcast! And don’t forget to sign up for next week’s Multifamily Live Virtual Summit today by clicking the link below!
“Like most people, we were just trying to figure it out.”
“We knew we needed to get back to where we were controlling our time.”
“Active effort produces money, but at that point, you are trading time for money.”
“Most people think they need to say ‘yes’ to everything to maximize their opportunities, but they risk diluting themselves and not being great at anything.”
“What can I do today to meet the potential of this property?”
“When starting a new venture you need to understand the mindset, understand the terms, and how to talk the talk.”
“People look at the mountain top and think, ‘Too big, too tall, can’t even imagine it.’ But you don’t need to get to the top in the first step.”
“Ultimately, it is a team sport. Working together is more beneficial and gratuitous because we are all serving a bigger purpose.”
“Where people get stuck is that they feel they have to accomplish all of these things on their own.”
“Educating others is about making the line straighter for them so it isn’t a gigantic bell curve for them to get to where they want to be.”
“That’s the key… connecting the dots so that people know what they have to do to get started.”
Direct download: From_Bartender_to_Owning_Over_850_Units_with_Jason_Yarusi.mp3
Category:general -- posted at: 3:30am EDT
Mon, 15 March 2021
For this episode, I am excited to welcome Johnny Wimbrey, an internationally-acclaimed talk show host, #1 best-selling author, and motivational speaker whose charismatic nature inspires everyone from inner-city youth to corporate moguls and celebrities. Author and writer of the best-selling book, From the Hood to Doing Good, Johnny has just released his new book, Building a Millionaire Mindset: How to Use the Pillars of Entrepreneurship to Gain, Maintain, and Sustain Long-Lasting Wealth. Johnny Wimbrey expounds on critical concepts in his book and also shares his incredible rags-to-riches story with us in this powerful interview.
Johnny introduces himself and shares his personal and professional history. He describes his rough past and run-ins with the law, noting how this affected his ability to get a job since it deterred companies from hiring him.
Talking about his book, Building a Millionaire Mindset, Johnny points out how it focuses on the mindset regarding wealth, describing that he wrote it like he was writing to teach his descendants how to keep making wealth. He strongly recommends the book for first-generation millionaires as it explains the impact of your inner voice on your success and the success of your children.
We discuss the need to walk away from negative or harmful situations that you may encounter in life. This is done by exercising your mental muscle, the muscle of being able to walk away from controversy and acting as if you have something to lose. Mike also explains the importance of a successful mindset over being spoon-fed with tactics or methods. Johnny agrees that the inheritance for his kids is not his money but the principles to manage the money.
Johnny narrates the experience of trying to turn his life around, what he characterizes as participating in your own rescue. He describes his work as a temporary insurance agent and trying to get his license during this time. He details the many failures along the way, and the persistent effort he put at each point of failing, taking part in rescuing himself from the impending demise that would have been a fallout of his previous actions.
Johnny explains the importance of having a mentor to hold you accountable for actions taken and how dangerous it can be to not have another person’s council. A mentor can't just be a cheerleader as they are supposed to shake you up and help you make real change in your life. Johnny stressed that you can't mentor anybody unless you have a genuine interest to see them level up in life.
I asked Johnny to describe what he means by being busy versus being productive. He said when people equate this to be the same thing it is a huge lie. Being productive requires intention and direction. If someone takes a step towards something and it has nothing to do with their goal, even if it is helpful in another area, it cannot be considered as truly productive in regard to what they have said is important to them. Additionally, if being busy doesn't mean being productive, it follows that you can be productive without constantly being busy.
We also discussed how adopting someone else's mentality wholesale should not your reality. In every industry there are influencers and you have to be able to discern between voices that are in line with your goals and voices of disruption. How people around you see the world should not affect you and you have to break out of such a mindset. Johnny points out that a friend is a person, place, or thing that's going to push you towards your goals while a foe is a person, place, or thing that's going to pull you away from your goals. You can't allow someone else's thinking to become your reality because if you do, it could change the DNA that you were designed to put out in this lifetime.
Johnny’s book is filled with actionable steps and instructions to provide the reader an opportunity to live each experience that goes beyond the written words. You will not want to miss this powerful interview on the Just Start Real Estate Podcast with popular influencer and successful businessman, Johnny Wimbrey!
"My story is basically this: where you come from doesn't have to dictate where you're going, your past doesn't have to determine your future."
"It's just amazing what abundance some people start with and not appreciate how much farther ahead they actually started."
"The bottom line is, what voice are you going to entertain the most? That is the reality you are going to manifest."
"How do you develop muscles if you're not forced to lift anything?"
"We are not raising 'try' babies. We are raising 'do' babies"
"One of the worst things you can do to someone is to give them something they didn't earn or have no idea what to do with."
"If I give you fish, I rescued you. If I teach you how to fish, you rescued yourself."
"You can't mentor someone unless you have a genuine interest to see them level up in life."
"You don't need permission to create accountability."
"Taking risks takes a moment, but not taking that risk becomes a lifestyle that leads to regret."
"You either do or you don't."
Direct download: Building_a_Millionaire_Mindset_with_Johnny_Wimbrey.mp3
Category:general -- posted at: 3:30am EDT
Thu, 11 March 2021
In this episode, our guest, Brent Kesler, who was a Chiropractor and Chiropractic coach for over 14 years, shares a very unique strategy that got him out of $984,711 in third-party debt. He accomplished this in 39 months after implementing The Money Multiplier (TMM) Method. He became so passionate about how powerful this concept was, he began sharing it with others, and he breaks down the basic principles in this interview.
Brent shares his background, explaining how he grew up in Florida and worked his way up the ranks in a grocery store. He had always wanted to be a Chiropractor but was financially constrained. Following a transfer to St. Louis, where he met his wife, she encouraged him to go to chiropractic school and gave him immense support. In the end, though, he found himself with some pretty substantial debts to pay off.
Explaining how he ended up with five chiropractic clinics, Brent notes that he moved from his first clinic upon realizing that the location wouldn't work for his family. He trained an associate doctor to work there and opened another. Subsequently, he did the same for the second clinic when he was craving more free time. After eventually selling all the clinics, Brent believes he should have kept part ownership of the business since it was such a great profit center.
Brent explains that he was recommended a talk called, "The Infinite Banking Concept: How to Become Your Own Banker," based on a book by Nelson Nash. After hearing from his colleagues the power of this particular strategy, and with almost a million dollars in debt, he decided to apply it. He paid off all his debts within 39 months of beginning the use of this strategy, without changing cash flow, working harder, or taking more risk.
Brent said that all he needed to do was change one thing in his financial life and that was developing his own infinite banking concept process. This involves building your wealth with a specifically designed whole life insurance policy in a mutual company that pays dividends. It is a huge cash value policy and you're able to start using money paid into premium within the first 30 days. The idea is that anytime Brent uses money in the policy, he doesn't take money from the policy but instead puts the policy up for collateral to take a loan from the general fund of the insurance company. This means his money is untouched and still growing tax-free.
Brent discusses the details of buying policies and taking loans in this way. He also noted that you never have to pay back your policy loan, because the loan is simply a prepayment of the death benefit and the death benefit is usually far more than the loan or cash available. Also, the insurance company cannot lose because you're guaranteed to die at some point and any outstanding loan you have on the policy will be paid by the death benefit. The difference between the death benefit and the loan will be paid to your beneficiaries.
Brent Kesler describes how to fund your real estate deals using this strategy in his book, Mapping Out The Millionaire Mystery, which he wrote with Chris Naugle, a client of his. Chris is active in real estate investing, and he shows how he uses all his policies to fund his deals. Brent shares that although Chris was a financial adviser, he never learned about this strategy until they met. He explains that insurance companies don't teach agents about designing the policy this way because the agents have to take a huge hit in their commission.
Brent explains that he never tells anyone where to start with their premium and that you don't need to have a huge amount of money to start. He shares that 91% of the clients that have been with him for a year or more, come back and add onto their policy. Before Brent sets up a call with a potential client, he advises them to watch the presentation at the top of his website’s home page, under the Resources tab, to get acquainted with his investing strategies.
Brent shares that all listeners of Mike's podcast can contact him to get his Mapping Out The Millionaire Mystery ebook for free or choose to pay for postage to get the hardback copy. You don’t want to miss this episode of the Just Start Real Estate Podcast to get this unique, exciting, and helpful advice for achieving financial freedom with The Money Multiplier, Brent Kesler!
"Love doesn't buy your lunch."
“I told my wife at age 28, ‘If I go and do this, by the time I'm done, I'm going to be 34 years old.’ My wife said, ‘Well, if you don't do it, you will still be 34 years old in 6 years.’”
"People think if they're older than their early 20s, they're locked into what they are doing, but they're not."
"Make a decision...you can either play for the next 10 years and then have to work the rest of your life, or you can work for the next 10 years and play for the rest of your life."
"The decisions that you make today are going to affect the next 5 years of your life."
"So I thought to myself, there has to be something to this right? There's no way 10 or 12 of my closest colleagues are lying to me."
"All I did was add one step in my financial life and it drastically changed my financial life."
"I don't care if you make $10 an hour or $10,000 an hour, everybody needs to break the bonds of financial slavery they don't even realize they're in and start taking control of their wealth."
Mon, 8 March 2021
For this episode, I welcome Kris Reid to the show. Kris is a business growth expert and founder of Ardor SEO. He developed a simple system to get your message in front of your ideal audience to predictably grow your business. Now, he works with diverse companies and brands all over the world to help them get customers and make the profits that they've always envisioned. His own passion for entrepreneurship, small businesses, veganism, and helping sustainable, ethical businesses directs his vision for Ardor and the company's impact on the world.
Kris first shares with us his background story. After getting his degree as a Software Engineer, Kris moved from Brisbane, Australia to London, UK, and worked with investment banks. When the 2008 global financial crisis hit, his career was destroyed. He moved back to Australia and decided to build an online computer game. Like many online businesses, he struggled to get visitors to his website to play the game. So, Kris put his analytical mind to work and by learning the rules of search engine optimization (SEO), he developed a simple system to get people to his website. He then started building websites to sell backlinks and that started his SEO journey.
Without having any previous knowledge about SEO, Kris is completely self-taught. We talk about the importance of backlinks, which Kris believes are fundamentals of how Google works. The more backlinks you have from more credible sources that are in your niche, the more trusted you are and the better you are going to rank.
We then move on to talking about Google making changes in their algorithm and how it can affect SEO marketing. Kris then goes on to explain the difference between two different types of SEO: whitehat SEO (things that Google likes) and blackhat SEO (things that Google doesn’t like). If you are doing blackhat SEO and Google discovers it, you will receive penalties and you can lose all of your traffic. Google’s algorithm is getting better and better at finding good websites and good, quality content online. So, if you have a good website, changes to Google’s algorithm will not affect you.
Kris shares with us some of the most common mistakes that people make when it comes to SEO. One of the most noticeable things for him is that he believes people spend too much time on their websites talking about themselves. Your page needs to be simple: show the person that you can solve their problem, show examples of your work, and make it easy for people to do business with you.
Kris believes that most marketing is a waste of money. He says this is mostly true when it comes to traditional marketing: TV ads, radio ads, paper ads because it is almost impossible for you to track if anybody is paying attention to your ads. With digital marketing, you can track everything and you know exactly where your customers are coming from. SEO is the best form of digital marketing because it has a compounding type of return.
I also asked Kris for his advice on how to grow a podcast. His main advice is, just like with SEO, to do some keyword research. If you have a podcast once a week and you rank it for a hundred search volume keywords, it is a hundred searches a month. In the span of a year, you have a website that is generating 5,200 visitors a month and that translates into a million-dollar website.
Our next topic was marketing agencies. When looking for an agency you want someone who is going to focus on your goals and help you grow your business to where you want it to be. You want an agency that will show you a report of your revenue growth, tell you where your leads came from, and where your money came from. You want that type of personal approach in a firm for the best possible outcome.
Kris also talks about how often a website represents a part of the problem. He explains that there are two ways to generate more customers: to increase traffic or to increase conversions. The easiest way is to increase traffic and once you get enough traffic then you focus on the website to see if the conversion is good or not.
Do not miss out on this amazing and super informative episode of the Just Start Real Estate Podcast with business growth and SEO expert, Kris Reid!
“When you are building a business, you are building it for the long game.”
“The longer you are around, Google appreciates that and trusts you more.”
“Backlinks are super important. They are the fundamentals of how Google works.”
“The more backlinks you have from more credible sources that are in your niche, the more trusted you are and the better you are going to rank.”
“A website is designed to get in front of people who don’t know who you are.”
“Google’s algorithm, all it is ever doing, is getting better at finding quality websites and getting rid of the crappy ones.”
“Your action needs to be equivalent to the amount of value that you provide.”
“One part of why SEO is better than all of the other forms of digital marketing that you pay for is that it’s compounding.”
“That is how you grow a podcast. Don’t go after massive keywords, just rank each episode for a hundred searches a month and in one year you are going to be sitting pretty.”
“What you need to do is grow in a sustainable way that is right for your business.”
“One keyword might generate more leads, but another type of keyword might generate more customers. That is where we want to focus on.”
“You have two ways to generate customers: increase traffic or increase conversions.”
“Generally, fixing your ugly websites is not the most important thing; it is getting people to your ugly website because ugly websites still convert.”
Direct download: Generate_More_Leads_Generate_More_Customers_-_SEO_Secrets_with_Kris_Reid.mp3
Category:general -- posted at: 3:30am EDT
Thu, 4 March 2021
For this episode, I am excited to welcome Sean Castrina. Sean is a serial entrepreneur, having started more than 20 companies over the last 20 years, and still seeks to launch a new venture annually. He is an amazing investor, teacher, and highly-sought-after speaker who communicates with humor and a bluntness that engages and captures his audience. His podcast The 10 Minute Entrepreneur, is one of iTunes’ most popular business shows. Sean is also the author of 8 Unbreakable Rules for Business Startup Success, The Greatest Entrepreneur in the World, and World’s Greatest Business Plan.
We start this episode with Sean’s background story. After graduating from college, he was able to secure his dream job. But five years later, he got fired overnight with no warning, after just having a newborn child. This was the moment he realized that he would never again work for anybody but himself. He went on to create a car detailing company that brought in $35,000 of passive income. He repeated that formula with service companies over the next 25 years.
Sean started a lot of businesses in his lifetime and along the way he learned that you don’t have to love that business, you don’t even have to be a part of it, in order to make a profit. As an entrepreneur, his goal is to systematize them and make them passive at some level. Sean goes on to talk about how the fact that he was born legally blind affected his childhood and his adult life. He explains how it taught him to work with that, around that, and defeat any obstacle that came his way.
We then move on to learn more about Sean’s entrepreneurial career. He talks about how, after creating his detailing business, he started working with other service companies. At one point, he wanted to turn his dining room into an office, but he soon realized that it was impossible to find a handyman in his community. Led by his entrepreneurial spirit, he started a company named Advantage Handyman Service that ended up being a multimillion-dollar company within the first three years, and soon it will be an 8-figure company. It was always the same formula that turned out to be successful for him - service companies.
We then move on to talking about Sean’s plans for the future. His goal is to start a new company every single year. He explains how some business owners have an entrepreneurial moment - they start a business and they are happy with that, but that is where it stops. Some entrepreneurs are addicted to looking for the next thing that they can get involved in, an opportunity that is within what they know and understand.
Sean and I then dive into discussing one of his books called 8 Unbreakable Rules for Business Startup Success. He shares his perspective about the book and walks us through all eight rules that helped him become a successful business owner. Among other things, he explains why you need a great team, why you need to know your numbers, and how important marketing is.
Lastly, Sean shares his amazing advice on how to learn from other successful entrepreneurs. Business owners love to get a pat on the back and they love to tell you what they are doing. His advice is to go to any business owner, tell them you love their business and you would just love to bring them a cup of coffee once a month and pick their brain for twenty minutes. You will get a wealth of wisdom from doing this simple task!
Don’t miss this episode of Just Start Real Estate that is filled with practical and incredibly actionable advice from an amazing, and most definitely serial, entrepreneur, Sean Castrina!
“A job is not security. At the very least, you have to put up with stuff that you don't even like.”
“There are very few jobs that are like being an entrepreneur.”
“Business is nothing but chess pieces; every chess piece moves a little bit differently. Employment is playing checkers; you move linear, trying to get to the end of the board.”
“You are not going to be good if you do everything. Do a couple of things really, really well.”
“When you face an obstacle, you climb over it and that paints the picture of who you become.”
“Do the craft that you are good at.”
“Entrepreneurs are addicted to the next thing they can get involved in.”
“When you are an entrepreneur, you are constantly looking for something that works within what you know and understand.”
“This is a hard game to win if you don’t know any of the rules.”
Direct download: The_Rules_of_Entrepreneurship_with_Sean_Castrina.mp3
Category:general -- posted at: 3:30am EDT
Mon, 1 March 2021
Today, I am so excited to welcome Tom Wheelwright! Tom is known as a tax and wealth expert, he is a CPA, and the CEO of WealthAbility®. He is the Best-Selling Author of Tax-Free Wealth (part of the Rich Dad Advisors Series). Tom is a speaker, entrepreneur, and host of two popular podcasts: The WealthAbility™ Show and The WealthAbility® for CPAs Show. He is a contributor to Entrepreneur magazine, and his work has been seen in Forbes, The Wall Street Journal, The Washington Post, FOX and Friends, and many other media outlets.
We begin this episode, as we often do, with Tom’s background. Tom began his career doing bookkeeping for his father’s company. After getting his master's of Professional Accounting degree from the University of Texas, he managed and led the professional training for thousands of CPAs at Ernst & Young’s National Tax Department in Washington, D.C. He was an in-house tax advisor for Pinnacle West Capital Corporation, at the time a Fortune 1000 company and he also served as an adjunct professor in the Masters of Tax program at Arizona State University for 14 years, where he created the course for teaching multi-state tax planning techniques. Tom now teaches the Rich Dad Education Advanced Tax and Asset Protection class and he is also currently building a network of CPA firms around the world in order to serve more people.
We then talk about the importance of planning and thinking ahead when it comes to taxes. Having these discussions with your CPA early on in the tax year helps you to prepare properly. As a successful business owner, you need to know your numbers every single day. And when you know where you stand, it is much easier to plan out your taxes.
We briefly touch on the differences between bookkeepers and CPAs. According to Tom, your bookkeeper is there to provide accurate records that help you make right decisions. Your CPA is there to analyze those records. The role of your bookkeeper is to keep you accountable, and it is that accountability that creates profitability.
Tom then talks about buying and selling CPA firms, as well as creating them from scratch. He walks us through the process of turning around a CPA firm after the purchase. For Tom, it was all about building appropriate systems. For example, very few CPAs have a system for meeting with clients: when, how often, what is the goal, etc. Tom believes that systems are what creates value in a business, that they are the primary asset of the business.
We then move on to talking about Tom's partnership with Robert Kiyosaki. The two met when Tom bought a CPA firm that had Robert as one of the clients. This just proves that you never know where your contacts can lead you. Tom goes into detail explaining how all the pieces came together at the right time and led to him becoming Robert’s tax advisor.
We then discuss the current political situation. We talk about how political changes affect us and what should we know from a small-business standpoint. Tom’s estimate is that the taxes will probably go up in the next four years. The incentives will probably shift to clean, renewable energy. From a real-estate point of view, if you have a real estate with solar production or hydroelectric production, that will be a great source of cash-flow. These changes will require an adjustment to how we think when it comes to real estate.
Lastly, we dive into the stimulus bill. Tom takes us through some of the most important parts of the bill as far as taxes are concerned: restaurant business meals (both takeout and dine-in) are 100% deductible for the next two years, extending the universal charitable deduction through 2021, and qualifying for PPP loans. Tom then goes on to explain PPP loans even further in regards to the new act.
You do not want to miss this amazing and advice-packed episode of the Just Start Real Estate Podcast with the legendary tax expert, Tom Wheelwright!
“One of the mistakes that new entrepreneurs, new investors get into is that they are catching up on their taxes, instead of staying ahead.”
“Good tax records and good tax practices are also good business practices.”
“If you are running a good, tight business and you know your numbers, tax season won’t be so stressful because you will have the information available.”
“Your bookkeeper is there to create accuracy, accurate records that you can make good decisions from and your CPA should be there to analyze those records.”
“If you don't have the documentation, you don’t get to deduct that expense.”
“What a system does is actually create value. Because if you don’t have a system, really all you are doing is constantly selling. If you constantly have to sell, you don’t really have a business, you have a job as a salesman. ”
“You can sell a business, but a business has to have assets and primary assets are going to be the systems of the business”
“A sellable business is also a well-run business.”
“Once you find the formula that you can repeat over and over again, all of a sudden business is easy. When you are making a new decision every day, that makes business hard.”
“I happen to believe that business produces income; workers are necessary but they are not the reason that business survives. The business survives because of the assets in the business.”
“Never turn down free money.”
“A tax strategy should be a long-term tax strategy.”
Direct download: Rich_Dad_Advisor_and_Tax_Expert_-Tom_Wheelwright.mp3
Category:general -- posted at: 3:30am EDT