Behind the Beard | October 20th, 2021
Q&A Style Behind the Beard
Last week, I asked you to send in any questions for a special Q&A style Behind the Beard. I had A LOT of texts and great questions. I answered as many as I could below (if I didn’t answer yours, keep an eye out for the answer in future Behind the Beards)! Also, text me with your feedback - do you like this Q&A style? I do try to read as many messages as I can.
Q: What is your #1 thing to do when you're feeling unmotivated, depressed or in a rut? -Justin
A: I go hang with someone who’s killing it in something. Being around motivating people helps motivate me. Simple but true!
Q: How do you stay focused on your goals when there are so many great ideas and opportunities out there? -Viem
A: This is a real issue for me, so I fight it a lot. Here’s what works for me:
a.) I have a “don’t do” list of things that are great opportunities but not vital
b.) I talk with my performance coach about my ideas. He helps me prioritize.
c.) I remind myself that every thing I add to my plate takes time from family AND other projects
d.) I re-read “The One Thing” every year
Q: How to go about renovation on a flip? Do I let the contractor pick materials or do I pick the material and pay them labor only? - Mel
A: I’ve done it both ways. Today, I’d prefer to have the contractor pay everything. It’s just simpler!
Q: What advice would you give for exploring creative financing options on a large multifamily deal? -Crystal
A: First, read my “No-and-Low Money Down” book. Knowing your options is step one. Second, find out the seller’s story. What could help them? Listen for their problems, pain points, and what their goals may be. Third, offer several options to the seller. You never know what they’ll take!
Q: My wife and I are looking for an MHP but SO many have TOO many POHs (Park Owned Homes). Do you have a specific process for selling POHs at Open Door Capital that your team can share? - Cameron
A: Yeah, we don’t like parks with too many park owned homes. We don’t wanna fix toilets. So when we get parks with them, we typically utilize seller financing or lease options to transfer ownership directly to the tenant.
Q: Someone lost their job and needs to make money now - what would you do if you weren't financially free yet? -Dan
A: First, if I was flat broke, I’d get any job. McDonald’s, warehouse, whatever. Get food on the table. Then, I’d work that 40 hours a week and do another 30 hours a week on a side-hustle business. Probably something like selling roofs, gutters, windows, flooring, etc. People always need improvements on that stuff, but most contractors are TERRIBLE at running a business. I wouldn’t do the work - I’d just run a business that hired a team to do the work. In my opinion, this is the fastest way to making millions: selling blue collar services as a white collar operator.
Q: How do you stay mentally strong when faced with difficulties? - Viem
A: I try to step back mentally from my life and observe myself from the outside - like someone else watching me. Sounds weird, but it makes you more objective, see the big picture and not get caught up in the temporary. Also - prayer and meditation seems to be super helpful for this.
Q: What is the best way for a new real estate investor to find a mastermind group? -Jason
A: There are a lot of definitions of mastermind group, so I’m assuming you are referring to 3 to 5 people at a similar place in life working toward growth. (not a paid club, though those can be great). The best way? Pick up a copy of “The Intention Journal” from BiggerPockets which also includes access to your own mastermind group. Will all groups be successful? No, it depends on the people in it. But it’s a good start!
Q: Favorite Disneyland food? - Roscoe
A: Mickey beignets from the New Orleans restaurant at DisneyLand! Sadly, they weren’t at Disney World. But the best at Disney World? Pretty much anything at Epcot.
Q: How do you know when it's time to start a team? And how do you convince people to join forces with you? - No Name
A: When you find yourself doing work that doesn’t let up, you are honest with yourself and know you’ll need to gain the skills needed to be a good leader, and you have high ambitions then it’s time to build a team! How to convince people? Have a clear vision, communicate it clearly, know what the hell you are talking about and start moving!
Q: When you use other people's money for a down payment, is that money paid back from rental income? Or do they just have equity in the property? How is this structured? -Liz
A: It could be structured a number of different ways, but what I’ve done (with small deals) is when a partner brings the money, we split cash flow 50-50 and they get their money back when we sell the property (and then split any further profits 50/50). On the larger deals with Open Door Capital, it’s more like a 70/30 split but the same is true - investors get their money back when we sell the property or refinance it.
Q: How do I find money down for a deal when I have no investors willing to work with me yet? - Amanda
A: It’s the chicken or the egg question. The fact is, you probably need to find a way to build a track record now. If that means partnering with someone experienced and taking only one percent of the deal for the next year just to get experience - do it. That’s an extreme example, of course, but the point is: get experience however you can. Also, overcompensate with preparation, design, details, knowledge, communication, market knowledge, etc. Money is not the most important thing - being a trustworthy person is.
Q: What is an underrated spot or thing to do when in Maui? My fiancé and I are going for our honeymoon in June thanks! -Jack
A: Little Beach (just before Big Beach on the south side). As long as you don’t mind hanging out with some old naked men. #truth But its a favorite little surf spot of mine.
Q: Brandon I've been considering hiring a performance coach for awhile and I'm having trouble figuring how to identify a coach that's a good fit. Did your first coach just happen to work out for you, or did you have to try out a few before you found Jason Drees? Do you have tips for finding a good coach? -Sugarbay Properties
A: Similar to finding a good property manager or real estate agent. Referrals help a lot, but you won’t really know until you work with them. So get referrals from people who swear by their coach and test drive em.
Q: When's Open Door Capitals next offering!? I missed out on Fund 5 - Matthew
A: We are actually launching a new offering next week! Cheval Apartments - a 387-unit, Class A apartment complex in Houston, TX. We're partnering with Disrupt Equity on this deal who are a mile-deep in the apartment space and are based in Houston so they are experts in this market. It’s a beautiful property with huge value-add potential. Sign up here to be notified when it launches so you don't miss this one too ;)
Q: I consider both you and David Greene to be amazing public speakers. What would you advice be for anyone interested in improving their public speaking and feeling comfortable talking to a crowd? - Pedro
A: Thank you! That means a lot to me to hear that. My answer: do 500 podcasts and 300 webinars. Practice makes perfect :) But seriously, I was a terrible speaker in the beginning. But also - speaking is a skill that can be taught. Join Toastmasters, attend seminars, hire a speaking coach. Yes, some people are just naturally good just like some people are naturally good at basketball. But some one on one coaching can definitely help compensate for lack of natural talent. Lastly, listen to a lot of great speakers. But don’t just listen - analyze what they are doing that makes them so good. You will start to notice things. Then try those things.
Q: What's your thoughts on the growing Residential Assisted Living market? -Craig
A: I absolutely love the niche, but know almost nothing about it. But I love investing in “30 year problems” and that is definitely a 30 year problem.
Hope ya liked the Q&A style and found it valuable!
P.S. Have a question you want answered by me? Reply to this text with your question - I pick one to answer each week in Behind the Beard and do my best to reply to others directly via text.