Episode 78: Building Your Dream Team – How the Right People and Systems Will Take Your Business to 7-Figures Featuring Tiffany & Josh High
The Profit First REI Podcast
MAR 10, 2022
If you want to take the plunge and start your own successful real estate business, generate massive profits, and build legacy wealth, then this episode is the right fit for you.
Tiffany and Josh High are on the show to bring in helpful tips that will guide you to drive better and faster results for your growing business. They will also instill insights like how to invest your money consistently, track KPIs, and keep systems. This power couple knows the ins and outs of the business, so make sure to amp up your volume and tune in for more!
[7:10} Learning the value of having a mentor
[8:17] Staying away from fear and friendships attachments
[9:37] What early lessons did both learn regarding handling money, and how is that compared to their current financial situation?
[10:13] If you don’t spend and invest money consistently, it doesn’t result in predictable results
[12:59] Even though times might be challenging, there’s a lesson in that resistance. Take that lesson and apply it, make changes that you need to make, and everything else will work out in the end, so trust the process.
[17:43] What lesson do they want to pass down to their child regarding money?
[20:00] How do they track their KPIs in the business?
[27:01] Building a business all starts with the foundation and the systems
[11:47] “When it comes to money, the more you grow the bigger problems get.”
[12:22] “Just keep doing what you’re doing, have faith and trust the process because it’s all going to work out in the end.”
[19:11] “What you lose in risking it all is so much more valuable than not taking the chance.”
- Tiffany’s Instagram – https://www.instagram.com/tiffanyhighofficial/?hl=en
- Josh’s Instagram – https://www.instagram.com/joshhighofficial/?hl=en
- Tiffany and Josh’s Website – https://solo.to/tiffanyandjoshhigh
Tired of living deal-to-deal?
If you are a real estate investor or business owner who is tired of living deal to deal, and want to double your profits, head over here to book your no-obligation discovery call with me. Either myself or someone from my team will hop on a short call with you to get clear on your business goals, remove any obstacles holding you back, and map out a game plan to help you finally start keeping more of the money you work so hard to make.
Hey, this is David Richter with the Profit First REI podcast. Have another exciting couple here today that we have, Tiffany and Josh. Hi, super excited to have them. I see them all over the place on Facebook. It’s super motivating to me. I love what they’re both doing. They’re actually not only just teaching it, but they do it, and they do it right. They drive results for their own business, for themselves, for the people that they work with. They care about their employees. They care about their family. They work together. They’re raising a child and they’re making sure that they have the right things in place. So I’m super excited about this episode. Tiffany, Josh, thanks for coming on today.
Thanks for having us on today.
It’s been a pleasure. So thank you very much for the opportunity.
And I’m really excited because you have a virtual group. You’ve got workshops. I see all over Facebook, YouTube, your seven-figure flippers. But if I had to boil it down to just, so if you’re listening to this episode and a couple words that come to mind results, they’re genuine, they care, they’re authentic, they’re numbers-oriented, they know their numbers. They’re actually driven by that data and not just by the seat of their pants so they know what they’re doing. So I’m excited to start into this. So what got you both started in real estate? Let’s just start from the beginning here.
So to keep a long story short, about five years ago, I was a leader in the building material space for Owens Corning Global and I oversaw an asphalt division and on the roofing side. And honestly I loved my career. Before that I was an oil trader and I oversaw North American oil trading and I loved trading deal making negotiations. I loved every part of my career path. And what happened was, I’m the oldest of four kids. My youngest brother at the time was only 17 years old. He was diagnosed with cancer and unfortunately he was in a nationwide children’s hospital for almost a year straight. And during that year, while I was climbing my corporate career, I was traveling to a different city and state five days a week. And my parents on the other hand owned a few companies themselves. And as the months went on and I could only see him on Sundays when I’d fly in and drive two hours to the hospital.
I noticed that my parents never left his side for over 300 days. Literally, physically, never left the hospital. And I woke up one day. It was actually on good Friday of Easter of may of 2017. And I prayed about it. I had actually no intention of leaving my career, but something told me that I knew that if I wanted to be a good mom someday, that what I’m doing today won’t work, at least not to the type of mom I personally wanted to be. So I walked in, it was actually a corporate holiday. I brought in my boss, I asked him to come in. I’ll never forget the conversation cause I had just gotten promoted a couple weeks prior and I just said, “Look, I don’t know what I’m doing.”, I didn’t even know I was going into real estate, by the way. I said, “But here’s what’s happening. I’m going to put in my notice, I’ll give you a month or two month notice, whatever you guys need. But I feel like God’s telling me to do something else.” And I said, “But if I fail, I hope you guys take me back.”
So anyways, that’s how we got the role. At the time I was a private lender for another flipper. And I ended up calling him saying, “Hey, I would love to see the split that I’m lending on. Because I was getting paid 1% a month on my money for about the last two years. I was taking my corporate bonuses, private lending it to my cousin who is a flipper. And he takes me to this house and I walk through it. He explains everything he did and that he was going to make $80,000 on this house. I was like, “$80,000!? No disrespect, cousin, but if you can do this, I can do this too.” And so I said, “How did you learn how to do this?” So he pointed me towards an educational program where he learned how to flip. And I said, “This is what I’m going to do.” Cause my dad was in construction.
He own a mortgage company. And this was kind of in my blood. And I thought, “I can do this.” So long story short, I joined the education program. It took me six months to find my first deal. Lots of anxiety in between those six months. And then once I got my first deal, it really ramped up my confidence. And from there it skyrocketed. So we did about 40 rehabs our first year. Then we learned what wholesaling was and we did about 165 wholesales the next year. And we’ve done hundreds ever since.
The phone call, Tiff calls me on a good Friday and goes, “Just quit my job.” I was like, “What you… Hold on, wait a second. You did what? So you didn’t want to run this by me or anything? Come on, what’s going on here? So one thing that she was able to do while she had her career, she built small room portfolio as well. And she kind of broke down the numbers and was like, “Hey, even if I’m still doing this, I still have some income coming in over here.” And that income was more than what I was making as a project engineer. So I was in the construction business and that’s where I plugged into the flipping of houses is, I was in commercial construction working as a project manager. And that’s where I saw I could add some value to what she was starting, but she was making more than I was as a project engineer off of her rentals. And I was like, “Wait a second.” My parents didn’t own real estate, they didn’t own businesses or anything. And I took a step back. I said, “This real estate thing is the real deal. I need to start learning about this.” So I picked up a book and then we got into that program and just kind of took off from there.
That’s awesome. I also want to point out that you’ve got that little power couple behind you. It sounds like, making that decision on the fly that you’ve got a strong marriage. It sounds like you’ve grown this business together. It seems like type A, because Josh, you run sales, right? Both of you are that power couple. So how is it working in the business day to day together and going through that?
So we had a lot of lessons that we learned early on and we had some advice to separate our roles. So before, when we first started the business, we were both doing a little bit of everything. And naturally we were either stepping on each other’s toes or balls were getting dropped. I’d be like, “Hey, did you call this seller?” And she’d be like, “No, you were supposed to call him.” I’m like, “Well, I thought you were calling him.” And then that would cause arguments. Well, eventually we got smart and we started to separate our roles and responsibilities. And once we did that, it was amazing how quick we were able to grow. I was solely responsible for sales she was solely responsible for the systems and marketing and it just grew so fast. It was amazing.
We’re really fortunate. When we first started, I learned quickly the value of hiring a mentor, that’s in a place where you want to become. So within the first year we hired a one-on-one mentor that sat us down. And the first thing they did was get to know us and understand what parts of the business him and I should be responsible for. And on that day they said, “Tiffany, you’re responsible for X, Y, and Z. Josh, you’re responsible for X, Y, and Z.” And we said, “Okay.” And literally from that day forward, we completely segregated it. So for example, he oversees construction and sales. So when a deal comes in, it goes to transactions. All I’m told is, “Hey, I’ve decided,” he says, “I’ve decided we’re going to rehab this. I need you to raise $150,000 by the state.” So I’m responsible for that.
He doesn’t have to question it. I know it’s my job to go and raise the money for that and get that thing to closing. So we don’t step on each other’s to when it comes to leadership, management. Now, is there conflict behind the doors every once in a while? Yes. And it’s healthy conflict ultimately, cause any partnership in a business should challenge each other to level up. But ultimately a lot of people I see in the industry, cause we also measure ourselves to other people now. I see a lot of people join partnerships for the wrong reasons. And typically they’re from the two Fs, the fear or friendship. So they have a fear of not being able to do this on their own. And so they go attach themselves to someone else or they have a friend they think, “Oh, let me go get into business with my friend”, which ultimately results in disaster. So they think, just because they have construction experience or transaction experience or something else that maybe they haven’t learned yet, that they go jump into something and it results in a disaster later on.
That’s really good advice. So fear and friendship, stay away from those. The other thing that I want to mention there that you said that you actually listened to what your mentor said, he said, “You do this, you do this. And then from that day on, we did that.” And it’s that simple sometimes, to have someone come in there and be that mentor to you, but then that’s where you hear the stories of like, “Oh, this didn’t work or that.” It’s like, did you do it? No, it didn’t. or I didn’t take that action. So I love that. I love that you practice what you are preaching now. And you’ve practiced it for a long time and have seen great success. So since this is the Profit First REI podcast, let’s shift a little bit to the focus on money and that topic. So what early lessons, both of you, did you learn about money and how does that compare to what you think about it now and how you use it? And I just want to hear, I like to hear people’s backgrounds.
One thing I learned pretty early. So think about the first six months that I told you, I didn’t get my first deal, took six months. You know what that was a result of?. I didn’t spend money consistently. And so what happened, what a lot of people do is, they maybe drop $2,000 on mail. They don’t get results on it. They get scared. They wait a few weeks, then maybe they test something else out. They wait. And what happens is if you don’t spend and invest money consistently, it doesn’t result in predictable results. So in our line of business, if you’re wholesaling, you’re listening to this, it’s a marketing and sales company at the end of the day, every decision that you make on the sales side should be based off of data-driven decisions. And in order to make decisions off of data, our marketing dollars got to be spent consistently.
And so that’s one big thing that I think really hurt me that first six months, is I blew tons of money, just getting my first deal because I wasn’t consistent. Now, as we’ve scaled up and we’re in the multi seven-figure business now, you learn a whole another level of money. So then we get into taxes and we get a lot of other things. One big lesson I learned last year was, I paid Uncle Sam way too much money. So now one big thing that we’ve done this year is we’ve looked to put a board together of a CPA, an attorney and HR, and they’re fractional, just like what you do. They’re fractional people, so that we can make better guided decisions because at the end of the day, once you get to a certain income level, that’s not my forte, it’s not my expertise.
And I’ll be honest with you. About 10 months ago, I woke up and I said, “Oh my gosh, I just spent so much money on taxes.” I bought all these books off Amazon. I started reading them and realized I hated reading them. And I was like, “This is not for me. I’d rather just have an expert tell me what to do, why to do it and how to do it next.” And so that’s kind of some of the lessons we’re learning currently when it comes to money. And it’s just the more you grow, the bigger problems get.
Another lesson we had learned was one of our first few flips that we bought. We lost $106,000 on and I’ll never forget. We called, actually, Tiff’s parents. We called them. We’re like, “We’re probably going to have to sell our house. We’re probably move in with you guys. We’re kind of in a tough spot.” And they gave us some honest feedback. They said, “Hey, listen. You guys are doing things. You’re doing big things. It’s just, I think that you guys are right there. You’re this close to hitting it. And to just keep doing what you’re doing, have faith, trust the process. And I’m sure it’s going to work out in the end.” So they gave us some solid advice at a tough time. And sure enough, from that property, we were forced to grow. It was like burn the boats type mentality.
We’re not going to go back. We’ve already committed to this and we’re right here. We didn’t come this far to just come this far. So what it forced us to do was now we knew we had to shift quickly. This is when we learned what wholesaling was. And literally what came from that is, we did 165 wholesale transactions as a result of that one property. So the lesson learned there was, even though times might be tough, there’s a lesson in that resistance. So take that lesson and apply it and make the changes that you need to make. And everything else will work out in the end, trust the process.
That was some awesome advice from parents as well too. It sounds like they’re grounded. They gave you that solid advice at the time where you could have gone two very different routes. One, like you just said, fear or friendship that would’ve been like, the decision made out of the fear. And it sounds like they were like, “No, here’s where you need to go.” So it sounds like that they had that good grounding for you too. Because one of the questions I like to ask is like, “Did your parents ever talk to you about money? Was those conversations around the dinner table or was this more like, “No, you had to foray into it on your own once you got to be an adult.”” So can you speak to that? It sounds like they did, at least on Tiffany’s side.
That’s a good question. Josh and I were actually raised very differently. So it’s been a journey with us, especially, because I was very fortunate. I had two parents that were both entrepreneurs. When I was eight years old, I love telling the story to anyone out there that’s having a struggle, but when I was eight years old, my dad, long story short, I lost my real dad when I was younger. I have my dad’s engaged to my mom right now. And I’m eight years old. And right before the wedding, he walks into my mom’s house and he goes, “I decided to quit my job. I’m starting a company.” Obviously my mom had me at that time. So I’ll never forget her response. It was conflict, all the stuff. And he looked at me at eight years old and said, “Honey, we’re going to do this. I’m handing you a phone. And this is what you’re doing next.”
He opened up, he literally got out a car table in our garage, handed me a phone, handed me a script and said, “We’re going to sell windows siding and doors today.” I literally, at eight years old, had to read off of a piece of paper and call people. And I have stories for days on those calls. So my dad then, took it to a step further. He said, “Why don’t we go door-knocking?” We go door-knocking. I go with him. He teaches me how to read a brochure. So I’m coming up. He comes up saying, “Hey, I’m trying to teach my daughter how to work for a living. If you don’t mind, I’m going to have her read this brochure first.” I read it, got professional reading it and said, “Would you like to buy windows and siding doors for me today?”
No one ever didn’t buy from me. I was his network salesperson for like eight years. And so the lessons that I personally got from that, I’ll never forget when we got rich enough to drywall the garage, when we got rich enough to put carpet in the garage. These were big moments in my childhood life. And I’m very fortunate that my parents were able to provide that for me, because I learned a lot from it. And Josh, he comes from a blue-collar family, some of the most loving human beings you’ve ever come from with his parents, but they’re you’re worked a hard job for 20, 30 years and save a little bit of money and live a little bit paycheck to paycheck. So coming in as a marriage, I don’t know, I’m sure other people experience this, but we came back, we came from two different philosophies and that really goes into a marriage conversation of like how you bring those together. But I was fortunate enough personally to see someone else risk our entire family’s life to go after their vision.
Yes, I love that, because I probably identify more with Josh. I had a blue-collar, came from that. So I respect both sides of that. Because we’ve interviewed a lot of people too that are in real estate. They were like brought up in that and they were having these conversations. Then we talked with a lot of people and it is, the other side it was. They have to go through their own learning process. So Josh, it sounds like you went through that process. Now you are, you risked it all that. I’m sure that was probably a little bit fearful at that $106,000 loss on the property as well for you too.
Absolutely. Without a doubt. There’s one thing that my parents would say to us, every day before we go to school and it was kind of like that blue-collar mentality. They would always look at us and say, “Hey, what are the two keys of the day? Stay focused and stay positive. And when you’re able to do that and work hard, everything else would come together.” And those lessons are something that I’ve taken to heart. I ended up playing college football, so my career playing football, I took that to heart. And then it was no different building this company out. You have to stay focused, you have to stay positive, have faith and everything will work out. So pretty cool experience, getting to this point and we’re just getting started.
I was going to say, you guys are just getting to started. I’m really excited where you are now. And can’t imagine in the next few years, so one other quick question on money. What lessons do you want to pass down to your child, in the future, now as she’s growing up to be a toddler and into the future as well too?
For me, the biggest thing that I would say is, we’re never going to just give her something. We always want her to know that she’s going to have to work for something. So I don’t want her to feel entitled ever and really instilling that hard work results-driven mentality early on and often.
Yeah, unfortunately my daughter’s going to be working early. But one thing I’m probably going to teach her, as she grows up, is not to be afraid to lose it all. Cause I’ve lost, think about this. You can go to college, get yourself in $50,000, $60,000 worth of debt. The reality is most people in America today leave college and are already broke as hell. So if you are 30, 40, 50, 60 years old on here and you risk a bunch of money you have saved to go after some vision or some dream and you lose it all. You were probably there before. Every one of us, unless you got handed money down to you, started at zero and you figured it out. So I just want my daughter and any other future kids that I have to understand and love the fact and embrace the fact that they can lose it all and it’s going to be okay. It’ll be okay, everyone survives and what you lose in risking it all is so much more valuable than not taking the chance.
And that’s amazing. No, I love that. We ask that with a lot of people and you know, they’re all great answers, but it is, it’s that passing down, making sure that she knows that she’ll have to work for it, knowing that, and if she loses it all, that’s something that not a lot of parents teach their children or even just how we’re reared, the school system, especially, punish mistakes. Punish the mistakes instead of saying, “Oh no, it’s okay. You’re going to make those mistakes. And you can build from there. It’s how you keep going.” So absolutely love that. Love that mindset mentality. So just a couple last questions here. You’ve already talked about data, the results-driven, all that. So tell us about what you track in your business. It doesn’t have to go every number, but are you tracking every single thing from beginning to end? How and what’s the importance of tracking those KPIs and the data for the results?
I want to start this one off because one thing that we’re big believers in is keeping it simple. And another thing too is when you start to build a team, whatever you track, your team’s going to perceive to be important. So one thing we did early on is that we would track the number of dials, for example. So what we track today instead of dials is the number of quality conversations, the number of offers and the number of deals. So the reason why we made that shift was because I saw people, they would be so focused on getting the dial count to where it needed to be every day. Well, that’s not what we want to focus on. I want to focus on the quality conversations. If the dials going to be there for focusing on having the right number of quality conversations. And when we have the right number of quality conversations will come offers and from offers deals. So shifting that focus a little bit, we were able to really align on the end result that we actually wanted and it really drove results.
Yeah. And I’ll never forget some of the first events we went to the industry. And they spend like three hours and throw all these spreadsheets and blow everyone’s mind with all these KPIs. And what happens is, it results in all these students walking out the door and instead of focusing on the actions that get the results, they’re having all these anxiety attacks over, “Oh my gosh, I’m not tracking these 500 KPIs.” Very few KPIs are what impact the actual bottom line of your company. And it’s not that you shouldn’t have sheets that are tracking other KPIs, but your primary KPIs, that individual folk, that every individual on your team focuses on, should be three to five at max.
One thing we do a lot is, we do an exercise. So if anyone’s listening, grab a pen, grab a paper and start to write down this example. A lot of times people ask, “Hey, how do I get to six-figure months?” So if you want to have $100,000 a month, there’s six or seven KPIs that you need to know. First and foremost, you need to know your average profit per deal. You need to know how many leads you need to create, to create a deal or a contract. You need to know how many offers you’re going to create or how many offers you have to make in order to land a contract. So then when you’re able to backtrack, “Okay, my average profit per deal, I have a $100,000 deal divide that by my average profit per deal. That means that I have to have X amount of deals. In order to create this many deals, I have to this many leads and I have to make this many offers.” So now we can backtrack to the exact week, down to the exact number of offers that we need to make and how many leads we need to create, to create enough opportunity to make the right amount of offers, to have that six-figure month.
So let’s say, someone out there has two closers on their team and the data is saying that it takes 24 offers to hit your goal. So if you divide that by two closers, now your closers have a number that they’re held accountable to on a weekly and daily basis. So if they have 12 offers, they have to make this week, then they know how many on average they should be making a day. So if you’re having daily consistent meetings with your team going over yesterday’s metrics, you can’t get too far behind when you’re making all of your management leadership decisions based on data. So if someone’s not performing in your company, but they have metrics they’re held accountable for, it’s not a surprise if they have to go, cause you’re constantly meeting with them leading them and managing them by data. So that’s on the acquisition side.
Once a deal closes, we have some key metrics that we close or that we pay attention to. How long was the lead in the system until we landed it? So let’s hypothetically say that cold calling leads, on average, for the last year, have taken 165 days to go into contract, let alone turning into money 30, 60 days later. I track that by campaign, I track my cost per lead by campaign. One big thing we have in our company is what we call file specialists in a closer. And some companies call it setter/closer, they have all different names. And we pass off how much revenues coming from those follow specialists to that. So let’s say my company closes two million dollars, but 1.9 million of the 2 million came from a file specialist passing on to a closer.
All these data sets tell me a story and tell me where to focus my time, energy and investment into the future. But back in the day, when I first started in the industry, I would go to these events and they’d be tracking just crazy Cape. I don’t even know if it was like a sales tactic, on some guru ends where they would get you so freaking confused in an event that they would try to upsell you or something. But we try to keep it really simple. Now, obviously there’s other data that can give you red flag indicators to help you manage your team. But ultimately there should be some very core KPIs that your team’s held accountable for in every single role in the company.
Yeah, no, I love that. And you can’t manage without that data and build that business. And like you said, those numbers tell the story, it tells a real story. There’s no sales tactic that a salesperson can bring to you and cover up when you’re looking at the raw data right in front of you. So absolutely love that. Then I think another key piece there that you said is those daily meetings that you have with the team, because it’s those daily things that turn into weekly, quarterly, yearly wins to when you eventually, if you ever sell your business or whatever, and score, grand slam, home runs, whatever, because it’s usually people think, “Oh, I just have to put in this small amount of effort this time, and I’m going to see these huge results.” It’s not, it’s these daily things, over and over again. The daily measurements and holding those people accountable.
So you guys have provided an insane amount of value here today on this episode, so I really appreciate that. I have one more question and then we will wrap it up here. Since you provide so much here that I could just go on and on, but is there anywhere our listeners can provide value back to you? How can they connect with you? What are you working on right now? I know that you do mentor, and highly endorse Josh and Tiffany here. So please follow them, follow their social media if you just want to be encouraged. Tiffany’s always posting, I see her posting a lot about the ups and downs. Just the real things that have gone on in her life of like, “Here’s what it is. Here’s how you can do better.” So follow them on social. But then what would you say they can get in touch with you or how they can provide value to you?
Yep. You can follow our social media. We both have Instagram, it’s @tiffanyhighofficial, and then @joshhighofficial. Our website is tiffanyandjoshhigh.com. And you can read about, or you can see a link there about, our monthly virtual group and then our two-day workshop. We also have a six-month program. But one thing that probably is a little bit different about us is, I’m a big believer that people, I don’t care if you do three deals a month, 20, 30, 40, it doesn’t matter to me, that it all starts in a foundation in the systems and then from there we build a team upon it and then from there we train our team and continue to build upon that. So I get a lot of people that come to me doing 30 deals a month in my program, and I still make them start at square one. So I don’t just take money to take money, I believe in the process. So I make everyone follow the process, but you can find us there. We both have Facebook. Is there anything else I’m missing? We do have TikTok, but we don’t have very many followers, so it’d be great if you all followed us.
There you go. There’s one way you could blow up their TikTok. So listen to this episode, go follow them there. Then we’ll make sure that we have those in the show notes too. If you missed that, we can make sure that you can reach out to them. Josh, Tiffany, this was an amazing episode. Thank you so much for providing the value that you did today and thanks for sharing your thoughts.
Thank you for having us.
Thank you so much for listening to today’s show. If you found this episode valuable, could you do me a quick favor? Can you give us an honest rating within iTunes and be honest, you could say whether you liked it or not. And obviously with iTunes, the more reviews and ratings we have, the better it is for other people that are searching for Profit First in a podcast. So we’d love to be ranked on there and that’s thanks to your help. So we would really appreciate that, if you would like to go give us a rating. Also, if you’re looking to connect with us further, I would highly recommend checking out our Facebook group Profit First for Real Estate Investors and that’s literally what it’s called. So you can type in Profit First for Real Estate Investors and you’ll be able to find our Facebook group right there.
So come join active real estate investors who are supporting each other and growing their businesses and profits together. That’s what that group is all about. The links should be in the description below. And if you’re interested in working with us and implementing Profit First in your real estate business, we offer coaching and guidance. So if you want to work with someone who’s actually Profit First Certified and who works right now currently with real estate businesses, you can actually go start your application process by going to simplecfo.wpengine.com/apply, or just go right to simplecfo.wpengine.com. And there’s an apply button right on there. If you want to actually start your Profit First journey with someone who can actually walk you through those step by step and help you know and grow your cash flow. Thanks again for joining us for another episode on the Profit First REI podcast. See you next episode.
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