Just Start Real Estate with Mike Simmons

My guest today is Dustin Heiner. Dustin is a successful investor and he started his real estate business from the ground up, with no money, no knowledge, and no properties. He has been able to build a business that makes him tens of thousands of dollars each month in passive income while giving him 40+ hours of his life back. With Master Passive Income, Dustin is on a mission to teach as many people as possible the step-by-step process of investing in real estate by building a business first.  

 

We begin the episode with Dustin sharing his background story and how he got into real estate. He shares that he got into real estate when he was first laid off from his county job. Though Dustin was lucky to get another one, he realized that he defined his value in terms of his job and needed to make sure it didn’t happen again. He decided to make his job his part-time career, and he became a full-time investor. Dustin invested in real estate, and when he was 37 years old, he was able to quit his job because he had so many rental properties that brought in income. Though Dustin was making $75,000 a year from his job, he discovered that he was losing money and needed to make more money on his own. 

 

We then talk about how Dustin found his properties when he got into real estate. He shares that in 2006 when he started investing, he was staying in California, and the price of properties was high. So, he started buying in other places with lower prices where he could still make passive income. From his experience, Dustin says that he started off the wrong way, but to do it right, you have to build the business first and then buy the inventory to put into the business. For him, he starts by finding a good city with a lot of inventory, potential properties that he can buy, then he finds the right property managers, and lastly, he finds the property itself. Dustin gets everybody that is going to run his business in before buying the property. This ensures that he gets it right and continues to make money in his new investments.  

 

Next, we talk about Dustin’s current strategy of acquiring and buying properties. Dustin shares that he uses everybody and anybody who wants to sell him a property. He identifies himself to everybody as an investor, and by doing that, people know that he’s a buyer. He’s always looking for new properties, and one reason he’s able to capture a lot of equity is that he puts out a lot of offers. And when it comes to choosing a property, he always opts for wholesalers rather than retailers because they work hard for his cash equities. However, one of the best tips Dustin recommends when getting properties capturing equity is finding a property on sale on the MLS and then contacting the seller’s realtor to help you get the property at a discount.  

 

We then talk about the financing side of Dustin’s investment strategy. According to Dustin, funding and managing a property fall under the same strategy. For him, he figures out tools that he can use in all parts of his business. For instance, if he needs to find a property, he needs realtors, wholesalers, other investors, and REIA groups. These are the tools and ways for him to find a property and the same thing with financing properties. He uses private money, hard money, credit card, loans, portfolio loans, mortgages, and commercials as tools, and he teaches his students to deploy them into properties. Dustin has used fourteen different ways to finance properties, but he says not all of them are a fit for every property. As an investor, you need to be problem solvers, and you need many tools to solve these problems and implement them in the best ways possible. 

 

Lastly, we talk about the economy of scales and why Dustin spreads his investments out. Dustin's main goal initially was to quit his job and have money coming in through passive income. He realized if he bought one property, it made $250 in a month and $3000 a year, which was not worth it. On the other hand, with 10 properties, he made $2500 a month and $30,000 a year without working, and with 20 properties, he made $20,000 a month and $60,000 a year passive income. For him, he knew he had to scale his business to get more and more. However, he discovered that investing in one area can be risky, and he started diversifying to build a consistent income

 

Make sure you don’t miss another amazing episode of the Just Start Real Estate Podcast with Dustin Heiner and get valuable information on low-risk strategies for acquiring properties and financing your projects!





Notable Quotes:

 

“Your value does not come from your job..”

  • Dustin Heiner 

 

“Your boss is paying you just enough to keep you working without quitting. They are not paying you for your value.”

  • Dustin Heiner 

 

“Don’t wait for your boss to lay you off, work on your passive income and instead lay them off.”

  • Dustin Heiner

 

“Don’t let any single thing ruin your business or your family income. Embrace diversity and be on the safe side.“

 

  • Mike Simmons

 

“As an investor, you need to be a problem solver and you need as many tools as possible to help you do that.”

  • Dustin Heiner 

 

“To be successful in real estate investments you have to build your business first, before buying the inventory to put into the business.”

  • Dustin Heiner 




Links:

Master Passive income

Dustin on LinkedIn

Dustin on YouTube

7 Figure Investor

Just Start Real Estate

JSRE on Facebook

Mike on Facebook

Mike on Instagram

Mike on LinkedIn

Mike on Twitter

Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months

 

Direct download: Layoff_your_boss_through_passive_income_with_Dustin_Heiner.mp3
Category:general -- posted at: 3:30am EDT

Welcome to this version of the Just Start Real Estate Podcast! I am excited to bring you another replay of my Facebook Live Question and Answer sessions. I just started doing these live forums in April and they are going so well and I am getting such great feedback and questions, I thought I would share them here on the podcast. Especially for those people that are unable to join us live, this will provide an opportunity to hear the awesome questions I am fielding about business, taking risks, real estate, and so much more! Some of the questions have been very real estate specific, but others have been general business questions, like asking about overcoming fear in order to get started and how to successfully scale. I have also received more personal questions like how I decided real estate investing was right for me and the steps I took to get my business off the ground.

 

This presentation is the live Q&A that I did the week of January 12th and each Thursday we will offer you another chance to take advantage of listening to the answers to our guests’ fabulous and compelling questions! Don’t miss this new episode of the Just Start Real Estate Podcast!




Notable Quotes:

 

“It is a short-sighted statement to say you need a partner to have credibility. You only need to do one or two deals to have credibility.”

 

“Partnerships can be very tricky.”

 

“Instead of bringing on a partner, invest in coaching or mentorship.”

 

“We don’t typically give earnest money deposits to the seller when we are doing wholesale deals.”

 

“Find someone to fund your EMD if it is a smoking deal.”

 

“You need to do a good job of listening to the sellers and truly empathizing with what they are going through.”

 

“You have to find out from them why selling their house to you is a better solution than putting it on the MLS.”

 

“When hiring, many times companies will trade a good culture fit for a particular skill set.”

 

“I almost had a full-out mutiny in my company when I hired purely for skills and not a good company culture fit.”



Links:

7 Figure Investor

Multifamily Live

Flip Hacking Live

7 Figure Flipping

Return on Investments

Just Start Real Estate

JSRE on Facebook

Mike on Facebook

Mike on Instagram

Mike on LinkedIn

Mike on Twitter

Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months

 


I am thrilled to welcome my friend Adam Whitney to the podcast today! Adam is a co-owner and the CEO of Blackjack Real Estate and has served in the Marine Corps since 2004 and remains on active duty. He is a specialist in managing teams and possesses accountability traits learned in the military which are absolutely pivotal to being a successful entrepreneur.  Adam utilizes laser-focused marketing techniques in order to achieve his current level of success.

 

We begin the episode with Adam sharing his background story and how he ended up in real estate. He shares that he has served 17 years in active duty in the Marine Corps. He started investing in real estate in 2017 in rental properties but later got into a partnership in private welding. Adam realized he needed to develop the very important skills of marketing and sales in order to grow his business. By following flipping communities he ended up learning a ton in sales, finding marketing deals, and ultimately ended up as the CEO for Blackjack Real Estate.  

 

We then talk about how Bill Allen approached Adam when he wanted to pitch him the idea of buying Blackjack. He shares that it was less divine interaction than people usually think. He was on a podcast and a trip with Bill and that is where they started building their friendship. Adam was just working hard, trying to be a good person, and executing a game plan that the flipping group gave him. However, after the trip, Bill offered him an opportunity to be the majority owner of the company. Adam was shocked, but he was up for the task, and he knew he could help build and grow the company.

 

Next, we talk about Adam’s transition and what surprised him when he took the wheel. Adam shares that there were some assumptions that he made that were not true. One of the amazing things was that the company was without leadership or strategic guidance, but it was functioning well. According to Adam, when you take over something that is so successful, you tend to make assumptions that everything is being done for the right reasons. For him, he assumed that the people were in positions for the right reasons, but some of the people weren’t a good fit for the company. They didn’t meet the core values and did not execute in their roles. They had to let some employees go, which was a surprise to him, but it worked, and they stabilized. 

 

We then talk about Blackjack Real Estate company and where it stands at the moment. According to Adam, they are getting to that point where they’re getting the right people in the right seats. Adam says their big goal in the first quarter of 2022 is to get their leadership and their vision in place and to figure out who's going to lead their departments effectively. This should be the goal of every business. They also have a projection to hit $1.6 million this year and eventually go back to being a three million dollar company.

 

Next, we discuss the marketing and lead-generating strategies that are working best for Adam and his team. He shares that they are primarily doing direct mail, cold calling, and SEO for their business. Almost every business uses direct mail as the primary lead source, and they have been using the same postcards they have been using for a long time. However, in real estate, marketing, especially with direct mail, is all about timing. Your message has to hit the hand of a person who is in a position to sell or buy a property from you. Timing is everything, and if you want to get to the right hands at the right time, drop the production cost and do it more often.  

 

Lastly, we talk about KPI metrics role in growth. Adam shares that he looks at his metrics weekly. According to him, if you don’t have KPIs, it’s equivalent to driving in a foreign place without a GPS, and you are incapable of understanding your business. There are a lot of metrics that you can track in your business, such as your average contracts, calls, sales, and so on. Tracking these baseline numbers will help you understand your business, where things are going wrong, and what you need to address. The bottom line is that you have to know what is going on in your company, so tracking your KPIs is essential.

 

Make sure you don’t miss another amazing episode of the Just Start Real Estate Podcast! This interview with Adam Whitney was awesome and he provides so much valuable information on how you can establish yourself and thrive in real estate!



Notable Quotes:

 

“When we take over something that is so successful, we tend to make assumptions that everything is being done for the right reasons, which might not be the case.”

  • Adam Whitney

 

“Timing is everything, and if you want to get to the right hands at the right time, drop your production cost and do it more often.”

  • Mike Simmons

 

“Who you spend time with is who you become. Maximize your exposure to the people that are doing the things you want to be doing.”

  • Adam Whitney

 

"If you don’t have KPIs that you are tracking, it’s the equivalent to driving in a foreign place without a GPS, and you will be incapable of understanding your business.”

  • Adam Whitney

 

“It’s much harder to break through when operating in isolation without help or surrounding yourself with high achievers.”

  • Mike Simmons




Links:

Blackjack Real Estate 

Adam Whitney on LinkedIn

Adam Whitney on Facebook

Adam Whitney on Instagram

Adam Whitney on Twitter

7 Figure Investor

Just Start Real Estate

JSRE on Facebook

Mike on Facebook

Mike on Instagram

Mike on LinkedIn

Mike on Twitter

Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months

 


Welcome to this version of the Just Start Real Estate Podcast! I am excited to bring you another replay of my Facebook Live Question and Answer sessions. I just started doing these live forums in April and they are going so well and I am getting such great feedback and questions, I thought I would share them here on the podcast. Especially for those people that are unable to join us live, this will provide an opportunity to hear the awesome questions I am fielding about business, taking risks, real estate, and so much more! Some of the questions have been very real estate specific, but others have been general business questions, like asking about overcoming fear in order to get started and how to successfully scale. I have also received more personal questions like how I decided real estate investing was right for me and the steps I took to get my business off the ground.

 

This presentation is the live Q&A that I did the week of January 5th and each Thursday we will offer you another chance to take advantage of listening to the answers to our guests’ fabulous and compelling questions! Don’t miss this new episode of the Just Start Real Estate Podcast!




Notable Quotes:

 

“First you nail it, then you scale it.”

  • Mike Simmons quoting Andy McFarland

 

“I absolutely think you can do $1.2M with four or five employees.”

 

“The reason they most likely called you is that they can’t list their house on the MLS and it is your job to find out why.”

 

“We buy houses from people that need to sell their house quickly and for a fair price, in cash.”

 

“I am less interested in making year-long goals than I am in creating 90-day goals.”

 

“One of the failures of New Year’s Resolutions is that we lose momentum and motivation because they are too long-term.”

 

“Twelve-month goals get lost in the shuffle.”

 

“With 90-day goals, you can’t slip up very much or else you are in jeopardy of missing it.”




Links:

7 Figure Investor

Flip Hacking Live

7 Figure Flipping

Return on Investments

Just Start Real Estate

JSRE on Facebook

Mike on Facebook

Mike on Instagram

Mike on LinkedIn

Mike on Twitter

Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months

 


I am happy to welcome Scott Smith to the podcast today! Scott is the founder of Royal Legal Solutions, a real estate investor, and asset protection attorney in Austin, Texas. He graduated from Albany Law School and began his career in high-stakes corporate litigation. Scott has spent the past eight years of his career diving through case law, mastering tax code, and analyzing real estate investments to help investors protect their hard-earned assets.

 

We begin the episode with Scott sharing his career background and how he ended up in real estate. Scott is an asset protection attorney and a long-time real estate investor. He started real estate investing while in law school. After college, he worked as a litigator suing insurance companies for denying coverage until he started making enough money in real estate. Scott had no intentions of starting a firm, but he created Royal Legal Solutions after realizing that people needed help in asset protection, estate planning, and tax issues. According to him, most real estate investors have a limited knowledge of legal protection strategies.

 

We then talk about the kind of real estate investments Scott made to start earning more than he was making as an attorney. He shares that he invested in single-family homes. For him, focusing on real estate and legal systems for seven years now with a team of five attorneys, seven paralegals, and over 2000 clients nationwide has given him an opportunity to expand and help people. Scott says that single-family homes are a great investment avenue, especially for your first ten properties. The level of passive income they provide makes them a great place to start and then investors can branch out when they are ready. 

 

Next, we talk about LLCs and how many times it’s the right entity to form. Scott shares that an LLC or a series of LLCs is always the right entity to form, especially during the initial stages. According to him, If you’re someone that does not have any properties yet, but you want to protect yourself personally and your clients from losses, you need an LLC to do that. Similarly, if you own one asset or real estate property, then you need an LLC so that you don’t hold assets under your name. For multiple pieces of real estate, the most efficient tool to use is a series LLC, which you can form in one state and use anywhere. This means if somebody sues you, they can’t take hold of your assets. Scott says that 95% of their clients are single-family home investors with one to seven properties, and the series LLC is by far the best vehicle of asset protection.

 

We then talk about ways that you can protect your real estate investments. Scott shares that the number one thing is knowing what is appropriate for you. Everybody has assets regardless of how much money they have in the bank account, their credit score, and they need to protect their access to funds. The way you protect your credit score is by establishing an LLC and operating through it for your contracts and any documentation that you’re signing. So, if a lawsuit is filed, it will sue the LLC because it’s the one that entered into an agreement and made the representation. This will give you a much cheaper downside where you can just form a new LLC versus having to defend a lawsuit that will cost you no less than $5000. According to him, LLC structures are so powerful when applied correctly.

 

Lastly, we talk about Scott’s company and what they offer. He shares that their approach has been to give away all the information and secrets for free. His goal is to get as many people as possible protected using the right structures. They offer an incredible amount of education for free on their website. Their giveaways include eBooks and instructional videos to get people educated to help them take action on their own or work with them. They put people who chose to work with them through an advisory process that walks them through the theories and structures that are appropriate for them. From there, they are assigned an attorney, a paralegal, and a dedicated team to help through the execution process to ensure they are doing the right things.   

 

Make sure you don’t miss another amazing episode of the Just Start Real Estate Podcast with Scott Smith and get valuable information on asset protection strategies that you must implement today!



Notable Quotes:

 

“Insurance protects you from most of the risks but it doesn't cover things like misleading someone in an email or text message or a breach of contract.”

  • Scott Smith 

 

“If you own one asset in real estate then you need an LLC. You don’t hold assets in your own name.”

  • Scott Smith

 

“You need to be thinking about ligation when you are dealing with any kind of person.”

  • Scott Smith

 

“The series LLC is by far the best vehicle for asset protection, but if you are starting out, then an LLC is better than having nothing at all.“

  • Scott Smith

 

“An LLC will give you a much cheaper downside if you get into a lawsuit by helping you form a new LLC versus having to defend a lawsuit.”

  • Scott Smith

 

“LLC structures are so powerful when applied correctly.”

  • Scott Smith 

 

“We need to look at the totality of what our lives are, and our investing should match what we’re trying to accomplish with our lives.” 

  • Scott Smith



Links:

Royal Legal Solutions

Scott on LinkedIn

Just Start Real Estate

JSRE on Facebook

Mike on Facebook

Mike on Instagram

Mike on LinkedIn

Mike on Twitter

Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months

Direct download: Why_asset_protection_is_important_for_all_investors_with_Scott_Smith.mp3
Category:general -- posted at: 3:30am EDT

Welcome to this version of the Just Start Real Estate Podcast! I am excited to bring you another replay of my Facebook Live Question and Answer sessions. I just started doing these live forums in April and they are going so well and I am getting such great feedback and questions, I thought I would share them here on the podcast. Especially for those people that are unable to join us live, this will provide an opportunity to hear the awesome questions I am fielding about business, taking risks, real estate, and so much more! Some of the questions have been very real estate specific, but others have been general business questions, like asking about overcoming fear in order to get started and how to successfully scale. I have also received more personal questions like how I decided real estate investing was right for me and the steps I took to get my business off the ground.

 

This presentation is the live Q&A that I did the week of December 29th and each Thursday we will offer you another chance to take advantage of listening to the answers to our guests’ fabulous and compelling questions! Don’t miss this new episode of the Just Start Real Estate Podcast!




Notable Quotes:

 

“I have several friends that are in the short-term rental market and they are handling them in vastly different ways from each other.”

 

“Most short-term rentals investors are getting enough return on their investment to pay off the property in 4 to 6 years.”

 

“Make sure the numbers make sense for you.”

 

“In real estate, you want to have a marketing budget that gives you a four-to-six-month runway.”

 

“The bigger a company gets, the slower it tends to move.”

 

“Use speed to your advantage in marketing.”

 

“Entrepreneurship can be really lonely. You have to surround yourself with people that remind you why you are doing what you are doing.”

 

“You have to have a really powerful ‘why” to stay motivated in your business.”





Links:

7 Figure Investor

Flip Hacking Live

7 Figure Flipping

Return on Investments

Just Start Real Estate

JSRE on Facebook

Mike on Facebook

Mike on Instagram

Mike on LinkedIn

Mike on Twitter

Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months


My guest today is Brent Bowers. Brent has five years of experience in the land wholesaling business. As an Army Officer with over eight years of service, Brent was spending a great deal of time away from his family, and he knew he needed a business that could help him be more present in his family life. His interest in real estate began in 2007 when he purchased his first rental house. From there, he started exploring real estate investing to support his family while enjoying more time with them.

 

We begin the episode with Brent sharing his backstory and how he ended up owning a very successful land company. After graduating from high school in 2004, Brent started a land company, and in 2007 he acquired his real estate license. He started buying rental houses and became a real estate agent, but it got so bad that he moved out to join the military. Some years later, Brent got back into business, this time into house hacking. It didn’t take long before he was in massive debt and broke again. To make things better, he started building a team, and in his quest, he stumbled on land business. He did several transactions, and before he knew it, his business was growing, which led him to his financial freedom, and ever since, he started focusing on land more.  

 

We then talk about Brent’s transition to the land business and the lessons he learned along the way. He shares that he was doing well in wholesaling, but he was still searching for the answers. He was running from the pain of losing his first marriage, and he didn’t want what happened to happen to him again. The thought of leaving crushed his soul, and he knew he had to have some businesses to take care of all their expenses if he was to leave the military to be with his family. Coincidentally, he heard a guy from a podcast who was buying land at a massive discount and tripling and quadrupling his money during sales. Brent thought he could do the same. He had a land business, he took action, and within three weeks, he was able to make sales and later stabilize his cash flow.   

 

Next, we talk about Brent’s wholesale company’s selling process. Brent’s biggest projects have been on land and assigning land contracts. According to him, a land business is unique because land doesn’t have a roof falling in, a foundation that needs fixing, or plumbing that needs repair. To find land for sale, Brent starts by finding an area, picking his playground, and then looking for land owners’ information from platforms like PropStream, Resource Guru, or the country tax treasury. The information includes their name and mailing address which he uses to send LOLs (Land Offer Letters).  

 

We then discuss how Brent deals with cases where buyers on long-term contracts default on their payments before the due period and the full payment are complete. According to Brent, this happens all the time, and one out of twelve will default. However, the bigger the down payment, the less likely the buyers will default. In some cases, they try to modify the loans to enable the buyers to pay in full, but sometimes they let the land go into default even after paying almost 78%, which is heartbreaking.  When this happens, Brent says that he usually cancels the contract by sending a certified letter or email through his attorney.

 

Lastly, we talk about Brent’s criteria and checklists for identifying land to buy. For Brent, his target is always 3x his money. He works with a margin of ⅓ of what land is worth, which guarantees him a return. When it comes to selling, Brent sales are triple the buying price, and the buyers often pay in installments with an interest of 9%. They operate on contracts for deed, the land remains under his name, and they don’t allow construction until the whole contract is paid.

 

Make sure you don’t miss this amazing episode of the Just Start Real Estate Podcast with Brent Bowers and get valuable information on real estate land investments!

 

Notable Quotes:

“Just start today, take action, and do it! We don’t always have the answers that we need tomorrow, but we have the answers for today.”

  • Brent Bowers

 

“What makes the land business different is that it doesn’t have a roof falling in or a foundation that needs fixing.”

  • Brent Bowers

 

“The bigger the downpayment the less the buyers are likely to default long-term payment contracts.”

  • Brent Bowers

 

“There’s a secret with every house especially when you flip them and renovate them.”

  • Brent Bowers

 

“Successful people in real estate are coincidentally the people who go out and take action.”

  • Mike Simmons 

 

“Implementors tend to be the luckiest and the most successful people.”  

  • Mike Simmons 



Links:

Brent's Website; The Land Shark

Brent Bowers on YouTube

Brent's Podcast

Brent on LinkedIn

Just Start Real Estate

JSRE on Facebook

Mike on Facebook

Mike on Instagram

Mike on LinkedIn

Mike on Twitter

Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months



Direct download: How_to_invest_in_land_with_Brent_Bowers.mp3
Category:general -- posted at: 3:30am EDT

Welcome to this version of the Just Start Real Estate Podcast! I am excited to bring you another replay of my Facebook Live Question and Answer sessions. I just started doing these live forums in April and they are going so well and I am getting such great feedback and questions, I thought I would share them here on the podcast. Especially for those people that are unable to join us live, this will provide an opportunity to hear the awesome questions I am fielding about business, taking risks, real estate, and so much more! Some of the questions have been very real estate specific, but others have been general business questions, like asking about overcoming fear in order to get started and how to successfully scale. I have also received more personal questions like how I decided real estate investing was right for me and the steps I took to get my business off the ground.

 

This presentation is the live Q&A that I did the week of December 22nd and each Thursday we will offer you another chance to take advantage of listening to the answers to our guests’ fabulous and compelling questions! Don’t miss this new episode of the Just Start Real Estate Podcast!




Notable Quotes:

 

“You just have to show up and ask the questions to get you where you want to be.”

 

“You need to have someone else’s hindsight to use as your foresight.”

 

“You need to sit down and really listen to a potential seller.”

 

“Solve the problem - buy the house.”

 

“Find out the problem so you can help them with the solution.”

 

“If direct mail and cold calling are working and you are happy with the results, I wouldn’t change a thing.”

 

“If something works, do more of it.”

 

“Niche marketing, and niche lists, are smaller and time-sensitive.”

 

Links:

7 Figure Investor

Flip Hacking Live

7 Figure Flipping

Return on Investments

Just Start Real Estate

JSRE on Facebook

Mike on Facebook

Mike on Instagram

Mike on LinkedIn

Mike on Twitter

Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months

 


My guest today is Nico Ortega. Nico is the co-founder and CEO at NUOVO. He has over eight years of experience in real estate development and more than five years of experience in real estate short-term rental multifamily properties. He’s knowledgeable in all aspects of the hospitality industry, from sourcing, management, operations, CXP,  and sales. He has proven management and leadership skills demonstrated by increasing property owners’ rental income with a margin of 20-30 % from what they earned before. 

We begin the episode with Nico sharing his background story and how he got into real estate. After graduating from college, he started working with his brother, who was in the industry but needed help with commercial real estate brokerages for a shopping mall. Two to three years later, they sold their project and went over to Miami, partnered, and did more projects in the real estate. They started their operations with five units of multifamily properties.

We then talk about Nico’s focus and the strategies they employed to identify properties that met their criteria. He says that their focus from the beginning was multifamily houses that were in top shape. They went after class A properties in downtown locations, so there was no need to negotiate renovation costs. To identify the suitable properties, they used a filter to select the best multifamily units available. For Nico, If he was to go back to 2015, he would take the same steps, but he would choose a different route in today’s real estate environment. Between 2015 and today, there have been a lot of new entrants in the market that are doing it on scale, and the competition for the same properties is growing. Initially, Nico said that their personalized approach was the reason for their growth and success. He personally went to the owners and regional managers to find the right fit. 

Next, we talk about Nico units determining criteria. Nico and his partner took into consideration a variety of factors, and the most important were management and ownership. They had experiences where they had an owner who didn’t understand the business 100%, and property managers were very skeptical, making it difficult to maintain long-lasting business relations. You need to find an owner who understands that it’s more about the consistency and safety of rental units and maintaining a margin. The second factor is the quality of the property. The property needs to be in tip-top shape and well taken care of. Thirdly, Nico says that hotels and motels have a strong influence on real estate. Lastly, Nico explains the importance of clarity in rules. Before you try to do real estate at scale or individual property management, you have to understand the area’s regulations.

We then discuss how Nico finances their real estate properties and his business strategy.  According to Nico, they usually have a benchmark between 1.7x and 2x for the rent. They had a very organic approach towards their growth, and they would send follow-up emails to clients explaining the advantages of security, consistency, a professional manager, and strong communication to remove skepticism in any contract Their occupancy is usually 80-85% depending on the season. They scale it using their revenue management system developed by a professor from his brother’s data analysis and machine learning MBA class. The revenue management system takes into account every internal and external including review, competition, and budget to produce a recommended rate.

Lastly, we talk about Nico’s market. According to Nico, his ideal property is a 25 unit property, with studios, one-bedroom, kitchen, in-unit laundry, no pools, and no front desk. If you’re such an owner, if you put your property in their program they will take care of everything from managing the customers to managing the units and payments. This is a passive income opportunity, and you will be generating 20-30% more for short-term rent than you were generating before.

Make sure you don’t miss this amazing episode of the Just Start Real Estate Podcast with Nico Ortega. Tune in! Get valuable information on creative ways of financing and growing your real estate projects!



Notable Quotes:

“If you see a property that is damaged, not well taken care of, the management is being super lenient with the upkeep of the property. That will come back and bite you.”

  •     Nico Ortega

 

“Hotels and motels have a strong influence on the real estate industry.”

  •     Nico Ortega

 

“Opportunities come when you least expect them to.”

  •   Nico Ortega

 

We don’t shy away from opportunities. We are going to look at it what people have available and try to help in whatever way we can if it fits whatever we’re looking for.”

  •   Nico Ortega

 

 

Links:

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Nico on Twitter

Nico Email; nicostaynuovo.com/

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Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months




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