fbpx

Cornerstones of Success: Building Your Real Estate Business Brick by Brick

Title: “Cornerstones of Success: Building Your Real Estate Business Brick by Brick”

Episode: 225

In this episode of Profit First for REI podcast, we have Frank Iglesias. He is a real estate investor who tells several deep things about his real estate journey.

Frank is well-versed in many areas of real estate. He talks about the right coach in his life that helped turn him around, the right timing, and books that helped him. Listen to this episode if you want to become a good business owner. Enjoy the show!

Key Takeaways:

[00:46] Introducing Frank Iglesias

[01:53] How he got into real estate

[05:10] “I wish I would have just picked one route.”

[09:04] Sales and marketing in real estate investing

[13:20] Learning about new construction

[15:18] Difference between fix and flip and new construction

[19:49] The money side of new construction

[27:23] Fundamentals and People’s Journey to Success

[30:04] Connect with Frank Iglesias

Quotes:

[06:25] “I wish I’d learned more about business because real estate is just the vehicle. It sits on top of this.”

[08:35] “Most real estate courses don’t teach business, they teach real estate. But it’s a different world when you start looking at it as a vehicle.”

[18:04] “What I like about new construction is you’re creating something. I like the creation process.”

Connect with Frank:

Website: https://frankiglesias.com/ 

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. – David

Transcript:

Speaker 1 (00:00):

The numbers are very important, but it’s a different metric of calculations, and we’ve learned to put a healthier profit margin on ’em. It is a lot of work when you build a house and you don’t make much money. You’re like, okay, we didn’t get this right. We got to make a shift.

Speaker 2 (00:19):

If you’re a real estate investor who’s sick and tired of living deal to deal, then welcome home. Hear from everyday real estate investors just like you, and discover how they’ve completely transformed their business by taking a profit First approach. This is the profit first for REI podcast, where we believe revenue is vanity. Profit is sanity. It’s time to start making profit a habit in your business. So here’s your host, David Richter.

Speaker 3 (00:46):

Hey, it’s David Richter of the Profit First RI podcast. Have Frank Iglesias here today. Have a really great episode. He talks about several deep things of his real estate journey of splitting focus and how that hurt on his journey, the right coach in his life that helped turn things around the timing and reading books, and just the books that have helped him, and the books that were shiny objects. It’s just really good information here if you want to become a better business owner. Frank Shears, a lot of wisdom and I look forward to having you listen to this episode and diving right in. Thank you for being a listener of the Profit First RI podcast. Hey everyone, it is David Richter of the Profit First, REI podcast. Super excited to have Frank Iglesias here. I was on his podcast too, you got to check out his podcast as well. But I’m super excited because he’s read Profit First, been down that road in the real estate world, helping other people. So Frank, thanks for being on the show.

Speaker 1 (01:43):

Thank you, David. I appreciate you having me out.

Speaker 3 (01:46):

Well, for people that don’t know you get into real estate, what brought you to this point? So then we can go a little bit deeper.

Speaker 1 (01:55):

How did we get to real estate? Well, I was a former IT guy for 15 years, and toward the end of that world, I like many people back in this is 2008, got that email or I don’t even remember what it was about a Rich Dad Poor Dad seminar.

Speaker 3 (02:14):

Nice.

Speaker 1 (02:15):

And of course I didn’t really know, so it was just kind of, but it was pretty with the purple or whatever his colors, the mouse and all that. So I was like, all right, we’ll go. We’ll check it out. I was just starting to learn a little bit about investing, so I was like, all right, we’ll look. And of course, at the end of whatever it was, couple hours, it was like, whoa. Right. So then that went to, and the drill, right? It goes to the one day thing, and then next thing you know you’re buying three classes. But what I didn’t know was when I bought three classes, I kind of messed myself up the more I think about it, and it’s because it was foreclosure wholesaling and lease options. And with that is all those were great. And of course, this is at the beginning of the real estate crash. So foreclosure of course blew up, but it kind of split my focus. And so I tell people right off the bat, yes, I would’ve done it a little different. I would’ve gone deep on one rather than buy three classes. I would’ve figured out one and go all in on that. But I was a former IT guy, so what was I good at? Multitasking.

(03:30):

So it was just natural. Oh yeah, three more things to do. That’s an everyday thing in my world,

(03:38):

But I didn’t realize what I was really doing was creating a little bit of a jack of all trades approach rather than a focused approach. So I tell people, don’t do it the way I did. Don’t do what I did. Pick one path and go. So what I did was the next few years, so I ended up leaving it because quite frankly, I was bored. Great company, great job, great team, everything was great, and I was bored. So it was kind of like, all right, if everything’s great and I’m bored, clearly it’s time for a change. And so we went all in on real estate, but we were always, it was the wholesale thing. It was buy foreclosures with the idea of renting and then lease options. There really wasn’t too much of back then, right? Because everybody was kind of like crazy. But we did some fix and flip as well. And so we kind of always had multiple things going the whole time. That’s how we got into it and just sort of evolved from there into bigger projects and so forth.

Speaker 3 (04:46):

Since you’re telling people not to go that route, how has real estate been for you? Was there a lot of dark times during that time, or was it like, Hey, this is good, but it’s just not getting us to where we want to be? I’m just wondering in your perspective why you’re telling people, I wish I would’ve just picked one route. You spread yourself too thin, or what were some of those factors?

Speaker 1 (05:11):

So no doubt we were spread too thin, but we didn’t even really realize it

(05:17):

Because we were doing the fix and flip, and then we would do the buy fix rent. But then I learned about wholesaling res from Lee Kearney, which everyone knows he is, and that was fantastic. And in retrospect, I wish I’d gone all in on that, but you can’t change the past. But we still did it, but not to the degree he was doing it, but we always kept that tool in our toolbox, and we did wholesale a lot, but it was just you look back and you’re like, man, if I had just done one thing instead of two or three, or maybe if we didn’t wholesale anything because all the properties were cheap, what if we just bought everything and kept it

Speaker 3 (06:04):

Right?

Speaker 1 (06:06):

We can all look back and go, wow, that’s exactly what we all should have done. Right? Right. Yeah. But you don’t know these things, especially when you’re new. And back then I was learning real estate. I really wasn’t learning business. And so now I’ve learned since then, I’m in some ways I’m like, man, I wish I’d learned more about business because real estate’s just a vehicle that sits on top of business fundamentals.

Speaker 3 (06:32):

So then where would you say you learned fundamentals of business then? If you would’ve gone back, what type of education around business would you have gotten?

Speaker 1 (06:42):

I would’ve gotten a business coach. Basically what’s happened, I got a business coach where a strong, all right, we got to learn sales, we got to learn marketing, we got to learn branding, we got to learn systems, procedures. And the crazy thing about it is I came from it, so it’s like I did it 15 years. It wasn’t like these were necessarily all new concepts, but the reality is I was burned out on it. So I didn’t have that coach to say, let’s pull those things you are good at already. And you understand into your real estate business. Yeah. You go to a class and you’re like, all right, you got to build systems to run a wholesale business, a flip business. And it’s like it’s, it’s some new concept. It’s not new. Every corporate business that’s successful has ’em, but we just didn’t link the two. And so I think to myself, man, I lost a lot of time because I didn’t take advantage of strengths that were already there. And I said, I tell people, if you’re going to be in business, have a coach do not do real estate without a coach.

Speaker 3 (07:52):

I think that’s very interesting what you said, because you’re like, I had this background, I knew systems were around, but it’s almost like you needed someone to point in your situation to be like, Hey, you’re missing this part. And you should have had someone there guiding you along that path. So did you ever invest in a business coach along your journey?

Speaker 1 (08:10):

Yeah, we finally got into that a few years ago. We finally got someone to start helping us, and it’s now opened my eyes to other people that coach business. And now you look at, and once you start getting that knowledge, it’s easy to look back and go, wow, we would’ve done this totally differently, but you can’t focus on the past. We did the best with what we knew at the time, but the reality is most real estate courses don’t teach business. They teach real estate, but it’s a different world when you start looking at it outside of when you see real estate as just a vehicle, you realize there’s a whole layer beneath it that without that it doesn’t run smoothly.

Speaker 3 (08:55):

And you kind of touched on that with those different areas of the business, but what do you think are those important areas that everyone needs to learn that’s not just real estate specific, but more business specific?

Speaker 1 (09:08):

So right off the bat, sales and marketing that you got to know sales, you got to know marketing. I mean, those are the two big ones. I mean, do you need office systems? Of course you do. You need those things to just handle those fundamentals. A big one that I wish we had understood a lot sooner was bookkeeping, the financials, because a lot of investor, I don’t want to deal with it. And then my experience, most CPAs exactly, they’re like, all right, here’s a tax return. Maybe you’ll get a tax strategy meeting, see you in a year.

Speaker 3 (09:46):

Exactly.

Speaker 1 (09:47):

Whereas that whole financials aspect, really understanding the numbers is a huge piece of it. So it’s easy to scale a real estate business and still have no idea what’s going on with numbers, at least you think. And then you start realizing, wait a minute, there’s a lot more to uncover here, but then you’re going back to that same CPA and they’re not a bad person, and they might’ve even done a great job on your returns. But the business coaching is what helps us connect the dots on how all these pieces work together. So you’re a business owner, not just a real estate investor.

Speaker 3 (10:30):

Yeah. Oh, that’s really good. So that reminds me a lot of the, what’s it called, the Cashflow Quadrant or that other book by Robert Kiyosaki? Yeah. Cashflow Quadrant. Did that help you, or where did you get that mindset of, oh, shoot, I shouldn’t just be a real estate investor, should be a business owner as well too. Was it from that training? It sounds like that was a big turning point in your life, was taking a lot of that training upfront, and I just wondered where that came from too, or if you’ve learned something through that or somewhere else.

Speaker 1 (11:07):

So the Cashflow Quadrant’s a great book, right? The whole EIS, all that. But the thing about cashflow quadrants, I read it very early, so I didn’t really, and so anything else, when you read it, it sounds great, but until you start living it, you don’t really

Speaker 3 (11:27):

Your ball game.

Speaker 1 (11:29):

When you start living it, you’re like, oh, this is the difference between a business owner and an investor. Because a lot of times those, and especially in real estate, a lot of times those things can look the same and they’re not. It’s two different worlds. So no, it was several years before I came across a business coach. I was actually doing a speaking thing, and I went a speaking event because I was running real estate meetings. So I got the email, I don’t know how I got the email, but I got the email and I was like, oh, well, I already talk every month at a couple of meetings. Let’s go learn about it. It was interesting, and one thing led to another, next thing I know is I’m signing up for what they’re doing. And I had no idea that what I really was signing up for was, this is the world of business, what it’s like to be an entrepreneur, what are the ups and downs? And it just started, began a slow shift in my mind, and I say slow because by then I’ve done real estate for a decade. And so you start building what you think is what you should be doing, and then 10 years later you’re like, maybe we need to start rethinking this. And I would tell you to this day, we’re still pivoting.

Speaker 3 (12:50):

Yeah, yeah. It’s like you build those habits in, it’s hard to change ’em or it’s hard to, there’s so many areas of business, it’s getting all the pieces to fit. Now, before we were talking or recording here, you jumped more into the new construction space, it sounds like. So what was that journey like going from doing multiple exit strategies, now you’re kind of focusing there, and why new construction? And I’m just very curious to see your take on that.

Speaker 1 (13:21):

So we did fix and flip of course for several years, and that evolved into, someone presented me a deal and it was our first full gut. So back then it was like, oh, that sounds exciting. The numbers look pretty good. It was our first edition. And so we did it and it worked out okay. It was very interesting. But any new toy, it was exciting. It’s like, all right. And then of course, I met people. I would partner with people that led to a pop the top deal we did converting a triplex to a single family, that was an interesting one, learning deal with historic properties. And some were in there, someone brought us a deal and it was a pretty rough looking house all boarded up. And so of course I’m thinking, oh, okay, it’ll be another one of these full gut remodels. And it turns out that it was in really bad shape.

(14:20):

So we had a private lender at the time that was like, all right, well, let’s do it. We got it so cheap. It was silly, especially at the time, it was silly cheap. So we were able to buy it and actually spend a few months learning about new construction, just kind of learning from whoever I could. And then next thing you know, we were like, all right, we’re going to do our first demo. We’re going to knock it down. And then we built it and it was beautiful, and we learned a lot of lessons along the way, but little I know that not only would that start of the business increase, but new construction is a very different animal from fix and flip. It really is. And I tell people, I know you’re seeing hammers and sheet rock and drywall, and you’re thinking it’s the same. I’m here to tell you it, it’s not. It’s two very different worlds.

Speaker 3 (15:12):

Talk about that. What makes the biggest differences between fix and flip and new construction?

Speaker 1 (15:18):

The biggest thing is you’re going to deal with, in new construction, you have a lot of preparatory work before you ever do a thing. There’s a lot of preparation. It doesn’t exist in remodeling because you’re dealing with existing structure. Things are going to get grandfathered in. Could you still meet an architect? Of course you could. If you have a bigger project, you could. And you can make a rehab complicated, but you don’t have to. Whereas in new construction, you’ve got to invent everything. You’re starting from square one. And then if you’re tearing down a house, I tell people a tear down is nothing more than a land deal with an extra step. That’s all. It’s

Speaker 3 (15:59):

Right. Yeah.

Speaker 1 (16:00):

At the end of the deal, at the the day, it’s a land deal that you need to get cheaper. You’ve got to get rid of an existing structure, which is its own process, but there’s a lot more prep, there’s a lot more time. Everything’s got to be up to current codes, depending on municipality. You might have meetings, you might have variances, you might have X number of things to consider. Then in that remodel project you don’t have to deal with. And if you’re doing a spec home, which is typically what investors do, okay, most investors are not doing production neighborhoods of a hundred cookie cutter homes. It’s usually that one house, two house, maybe a small block of houses, and those are treated on a one-off basis, and they’re effectively many custom homes. And you would think if you’re just going to, oh, let’s just go get plans, and it all just flows beautifully.

(16:53):

That is most definitely not reality. So it can flow pretty well, but there’s all these little things and you’ve got to be the person to answer all these questions that come up that quite frankly, you don’t even realize exists until you’ve done it and you’re just like, oh my goodness. And by the way, it might not even be the house. It might be the lot. It might be infrastructure, it might be the neighbor. We have streets in Atlanta that literally flood, and if a little bit of dirt gets off of your yard and down the street, the neighbor’s call in, they’re complaining because there’s a spot, there’s a little piece of mud in front of their yard 50 feet away. It’s like, oh my goodness. Right? Yeah. So there’s a lot of things that go into it that you just generally don’t have to deal with when you remodel, especially if it’s not a huge remodel.

Speaker 3 (17:45):

Okay, but you went the new construction route. So even with all that prep work, is it better than, do you like it better than going into a remodel?

Speaker 1 (17:57):

So this is where it becomes very preferential.

Speaker 3 (18:00):

Yeah, that’s why I want to know what you like.

Speaker 1 (18:04):

What I like about new construction is you’re creating something. I like the creation process. I get excited when you’re like, there was nothing and now there’s something.

(18:16):

And that’s not even necessarily real estate, that’s just what I like. I have that, but not everybody’s like that. Some people are more of the Let’s polish it up mindset. Yeah, well, if that’s your thing, you probably won’t lighten. New construction remodel is going to make more sense. I still enjoy some remodeling. I tend to the easier projects, but the big full Gods fire damage pop the tops. I don’t get as attracted to that because they become very intensive, but you feel like you’re always fixing something, whereas a new construction, even though you’re fixing something, it always feels like you’re creating.

Speaker 3 (18:56):

So

Speaker 1 (18:57):

It’s two different emotional, and that’s just me. Someone else might tell you something different. But that’s how I look at it is, yes, I’m creating in a remodel, but really I’m usually fixing something. It’s usually a result of something else that has to be fixed.

Speaker 3 (19:15):

What about the money side of things? So you’ve got the emotional side of which I really like that this is like your creativeness is what’s driving this. You want to create, what about the money side? Can you make more in new construction? Is that not one of the things that matters to you as much? It’s like I’d rather just create, even if I don’t make as much as maybe if I went and did pop the tops and remodels and stuff like that. I’m just wondering for your situation if you see that or what you think about on the actual dollars and cents side.

Speaker 1 (19:49):

So no, that’s a great question. And what we’ve learned is both can be very profitable

(19:57):

And both can also get you in a lot of trouble, especially if you’re dealing with bid remodels. And we’ve experienced the mountaintop and we’ve also experienced the valley. So we’ve seen both sides. We know what it’s like to win bid. We also know what it’s like to lose where it really hurts. We’ve seen both sides of it. And what I would tell you is it’s important, but it’s like any other deal. You got to make sure the numbers make sense. And the mistake I made, and I use that word carefully, is when we do remodels, what do we typically do? We learn the Mayo formula, maximum allowable offer minus rehab, and we’re assuming you’re not wholesaling. So it’s mats minus rehab, boom, buy it, go. That formula is not very effective in new construction. In fact, I don’t think it’s hardly effective at all, is what I found.

(20:54):

And the reason is in new construction, you have a lot of variables. Again, there’s a lot of preparatory work, so there’s a lot more variables involved than even in a bid remodel is a big remodel. You’re going to do X, Y, Z, and then you’re going to throw a big contingency on there. If it’s, especially on a bigger project with new construction, you’re still going to have that contingency. But there’s so many more variables to consider just now I’m dealing with a lot issues. I’m dealing permit specific issues. I, I did a video on this recently. You have impact fees that doesn’t exist in a remodel on some municipalities, impact fees can go easily well into the five digits for a single home.

(21:37):

That’s a substantial amount of money that you don’t ever have to think about over here. So what we’ve learned is we started new construction using Mayo again, thinking, well, that just makes sense. Well, not really. So we ended up building a different calculator altogether to help reverse engineer the process of new construction to determine is this going to work? And it’s funny because one of the most common questions I get is this, lot’s been sitting here for a while, nobody buys, and I can buy it cheap, very common. And the answer’s almost always the same. Well, the reason it’s really cheap is because no one’s going to make money building on it. If the RV’s 300 grand and with today’s money, you’re not making money. I mean, the seller would have to give you a hundred grand, and this is in our market, the seller would’ve to give you a hundred grand to take it off his hands for you to entertain buildings, say a 1500 square foot simple house because of the way the numbers are. So people get attracted to these cheap lots, and you’re just like, there’s a reason why it’s not too good to be true. In fact, it’s usually not good at all. So the numbers are very important, but it’s a different metric of calculations. And we’ve learned to put a healthier profit margin on it is a lot of work. It’s a lot of work. When you build a house and you don’t make much money, you’re like, okay, we didn’t get this right. We got to make a shift.

Speaker 3 (23:16):

That’s really good. And that’s where now, are you still doing other types of deals or is it just new construction that you’re focused on?

Speaker 1 (23:25):

No, we’ll still do some flips, but we’re leaning towards simple ones.

Speaker 3 (23:29):

Yeah,

Speaker 1 (23:31):

No more of the fold guts. I mean, not to say we wouldn’t do it, but we’re not looking for them per se. We’re more looking for just easy deals, some more wholesale deals, buying whole stuff. After all these years we’ve grown to appreciate, let’s just do deals that make money quickly. And then stuff like new construction is great, but it’s almost like a pet project.

Speaker 3 (23:56):

Okay, that makes

Speaker 1 (23:57):

Sense. Right? Because other, for a while we had everything was new, and the problem is they take so long and you want to have that cash flow in the middle. So if your goal is to invest in real estate, make sure you’re, and again, going back to business fundamentals, had I had that business coach, Hey, make sure your cash flow business deals, whatever they are, rentals, wholesale, whatever is solid. And then you can plug in new construction because that’s not fast money.

Speaker 3 (24:31):

That makes a lot of sense. So you’ve learned that it’s the fastest path to the cash, and then taking on some of these bigger projects where you might make more or might be a good creative outlet, but don’t do those if you need cash quickly if you’re going to dinner, correct.

Speaker 1 (24:47):

Yeah, because you’re basically creating pain. And that’s something we learned the hard way. We’re like, okay, wait a minute. But again, I wasn’t getting that the help I needed until I stepped out of certain circles and put myself in business oriented circles. When you look at it from a business perspective, a new construction or a wholesale deal at the end of the day, a transaction on the books,

Speaker 3 (25:15):

Right? Yeah.

Speaker 1 (25:18):

It’s a transaction. And you work with finance, so I know you’re right. At the end of the day, they’re all just transactions on the books. So what is that time involved to execute those transactions? And then you’re like, oh, wait a minute. I didn’t get that perspective. My perspective before is let’s go get the next deal. Let’s go get the next deal.

Speaker 3 (25:37):

Yep, exactly. And it’s like you said, it’s a transaction and you’re all just going after that same goal of, okay, do we have more money than we had before in this business to make sure that it’s actually working? If you’re going the wrong way, it’s a good way to go down in business. So I like how you put that in just very simple terms. It’s like, okay, at the end of the day it’s just a transaction. But I think there’s been lots of good insights here where you got into it from the Rich Dad seminar, but then from there, I like how you said that perspective of don’t split your focus. I feel like that’s just so resonant with so many people. They get this shiny object syndrome and then they’re like, Ooh, that sounds good. Or, I’m taking these different classes, learning these different things, going to an event and like, oh, I should be doing what they’re doing.

(26:26):

So really focusing, getting a coach in your life is specifically a business coach, someone who knows business and not necessarily just always the niche that you’re doing real estate or whatever. I thought that was really good advice. I liked what you said too about the right timing. When you talked about reading the Cashflow Quadrant, it’s almost like that was good at that point, but then once you’re actually in the trenches, things mean different things than when you read ’em before you were in it. So I thought that was really good too, which I know this is first RII podcast, so it’s like, sounds like that’s what happened when we were talking before about Profit First. It’s like, Hey, this is a great concept. Now let’s start to implement it once we get things rolling here and going down that path. So speaking to that right timing thing as well too.

Speaker 1 (27:17):

And you mentioned the book Cashflow Quadrant, and another thing I’ve learned is we’re always seeing what’s the next great book? What’s the next great book? What’s the next great book? And it’s like the books themselves become shiny objects.

Speaker 3 (27:31):

That’s so good.

Speaker 1 (27:33):

But in reality, the most important books that I’ve learned are one of twofold. One, the ones that focus on fundamentals. And I think the other one, because right, because we need those fundamentals. I always loved that Michael Jordan always talked about fundamentals and he was the best. So it’s like, right. But then you also have those books about people that their journey to success. And I think those are really valuable because when you hit hard times in this business, and you will, everybody will, it can get pretty dark. And we need those people that have walked that path before us

(28:17):

To remind us as dark as a moment might feel, you’re not the only one that’s been there. The sun will rise again. And I think that’s where also having that business coach helps to really help keep you reminded of help keep you grounded, so to speak, that as you go through a tough time, it’s like you’ll pass. And I put myself in some circles where I got to meet some very successful people in all facets of business. And one of the things I really loved about that was the ones I talked to, they echoed a similar sentiment, which was, it’s hard to appreciate a ton of success if you haven’t first walked through a very dark path. You need that when you go through that really dark time, then when you come back up to the mountaintop, it means so much more than it might have if you’ve never had a dark time. So there’s a lot of gratitude in there.

Speaker 3 (29:26):

No, that’s good. I like that last minute advice where you said books can become the shiny objects, and then how the two types of books over your career that have really helped you, fundamentals and the journey to success and knowing that you’re not alone, because that’s really good, because so many people, like you said, feel like sometimes that they’re just that island to themselves, and it’s like, well, lots of people have walked this path and just getting around those people reading the books about, that’s really good. So I really like that. So then Frank, how could people connect with you? I don’t know, a website, you’ve got the podcast, I don’t know, want to, how can people get ahold of you?

Speaker 1 (30:04):

Sure. So I’m on all the social media channels, all the common ones, Facebook, Instagram, LinkedIn, so forth. But I love phone calls. Our number (678) 408-2228. So text or calls. We’re still a little bit old fashioned that way if you call, leave a voicemail, we’ll call you back. We really will. We actually do check our voicemails. It’s pretty cool. And also my website, frank decia.com. There’s a contact form there between any of those. I mean, I’m not, if you Google me, I’m not hard to find.

Speaker 3 (30:38):

Well, there you go. That’s how you can connect with Frank if you’ve enjoyed his wisdom here. What is the name of your podcast so people can look that up too?

Speaker 1 (30:46):

Oh yeah. Our podcast is called What Worked For You? What Worked for You? And it’s a compilation of people that have had entrepreneurial success or still building up to it, having success in the process. And it’s about those journeys that people have taken. And it’s really been humbling because again, it goes back to the you’re not in this alone. People have had all these journeys to get there, and it’s some good stuff. Powerful. Very humbling. Yeah.

Speaker 3 (31:19):

Well, there you go. So what’s worked for you? That’s the name of the podcast. And then, oh man, this is really good. There’s just so many good golden nuggets here today. Remember not to split your focus. Remember to not have the shiny objects in your life, even if they’re books, then I really liked what you said, get that business coach, get the right timing, that type of stuff. But then if you’re also listening to this and you’re like, what the heck? I don’t know what I’m doing with my money and I’m making money, but feeling broke. And yeah, a lot of what he’s saying really resonates, but I don’t even know how to get ahead. You can head over to simple cfo.com. We can help you take that first step on your journey, get someone in your life that can help you and guide you and hold your hand if you don’t like the financial side of your business, so we can help you from the financial coaching aspect if you’re a business owner. Frank, this has been awesome. Thanks for coming on today, being a great guest and sharing your wisdom with all the listeners here.

Speaker 1 (32:19):

I appreciate it. Thank you for taking the time, and yeah, I enjoyed it. Thank you, David.

Speaker 3 (32:24):

And remember, if you’re listening to this Make Profit a Habit in Your Business,

Speaker 2 (32:29):

This episode of the Profit First for REI podcast is over, but there are plenty more where that came from. Are you ready to learn how David and his team can help implement the Profit First system in your business? Schedule a discovery call@simplecfo.com right now. We’ll see you next time on The Profit First for REI podcast with David Richter.

 



Title: “Realize Your REI Potential with Jennifer Steward: Authenticity, Profitability, and Consistency”



Episode: 240

In this episode of Profit First for REI podcast, we are sitting down with Jennifer Steward of REI Data Source, to unveil the secret weapon you’ve been missing: authenticity. 


Jen will crack the code on how to project a winning image that seals the deal…But wait, there’s more! Learn the top revenue activities every entrepreneur should master and discover the power of consistent strategies to solve your REI problems.


This episode is your blueprint to a thriving virtual business. Don’t miss out!


Key Takeaways:


[0:50] Introducing Jennifer Steward

[6:07] Project an image of success from

time to time

[9:16] Some best revenue activities that every entrepreneur should know

[11:00] Leveraging every avenue that you can, get consistency, and make sure you’re solving current problems

[17:43] The golden ratio in social media marketing is: 90% business and 10% personal

[25:02] The benefits of running a virtual business


Quotes:

[4:20] “Authenticity is like a business repellant.”

[10:09]  “In a market where you can’t dind deals but there’s plenty of money, you have to be the person who knows how to find the deals.” 

Connect with Jennifer:

REI Data Source Website: https://www.reidatasource.net 

Jen’s Email: jen@reidatasource.net 

Phone Number: (469) 952-8011



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. – David


Transcript:

Speaker 1 (00:00):

You need to just be able to solve the seller’s problem and just start with one exit strategy that you’re really confident in. And then once you master that, expand from there. And like you and I talked about, it’s who not how you don’t have time. Most likely to master all of those. So have a referral partner that you can build a relationship with and trust.

Speaker 2 (00:23):

If you’re a real estate investor who’s sick and tired of living deal to deal, then welcome home. Hear from everyday real estate investors just like you, and discover how they’ve completely transformed their business by taking a profit First approach. This is the profit first for REI podcast, where we believe revenue is vanity. Profit is sanity. It’s time to start making profit a habit in your business. So here’s your host, David Richter.

Speaker 3 (00:50):

Today we have Jennifer Stewart on which she is a go-getter. She’s out there, she’s doing lots of things. She’s in the cold calling space. She’s also a real estate investor. But then she’s also someone who I think has gone through a lot in her life and has come out on the other side stronger. And you can tell just from what she talks about and what she sees as the most successful real estate investors, what they do on a daily basis, on a monthly basis, it’s just good bottom line stuff to help you if you want to become someone who’s consistent in business, no matter what the market is doing. So I think this is going to be a really good episode. She gets into the nitty gritty and also just helping you get to where you want to be and making more money as a entrepreneur. Jennifer, welcome to the Profit First REI podcast. I’m so excited you’re here today.

Speaker 1 (01:37):

David, thank you so much for having me. I’ve been looking forward to this all weekend. What a great way to spend a Tuesday at noon and thank you. Thank you so much for having me today.

Speaker 3 (01:47):

Yeah, well I’m excited because we dance around in these different groups and we’re going to these events and you’re speaking a lot, you’re helping a lot of people out there, and I see you as someone who’s just very much, I hope this comes across, but just a very mature human being that has gone through a lot, but you haven’t just been a victim. You’ve been someone who said, I’m going to grow from what I’ve gone through, and that’s what I’ve just observed. And then honestly, there’s lots of my friends that respect you a lot too. I’ve gotten to know you well, so I’m excited about this one. So many things that I feel like we could go down, lots of roads here. So again, thank you for being on the show.

Speaker 1 (02:25):

I appreciate that. That’s very generous and kind observation. I think mature is a very polite word and I am just kind of overwhelmed with that kind assessment.

Speaker 3 (02:37):

Yeah, well, I don’t want to use any rude words for you here today, so we’re going to dive into it. No, but seriously I do. I see as someone who takes a lot of those lessons and applies them right away. I would also say too that you are not scared about sharing what you’ve learned and what you’ve gone through. Where do you get that deep sense of truth to share exactly what’s going on? And I don’t know if you’re a fan of the office or if you’ve ever seen that show. I like the Office, if you like the office. Where is it? I think it’s Kelly’s, Dayton, Daryl, and she says, he said, who says exactly what they’re thinking? What kind of game is that? And I’m like, that is Jennifer to a t. And I’m just wondering how did you get that as part of you? Because I think it’s so genuine, authentic, and it brings more people to you and they resonate. You’re saying what they’re scared to say.

Speaker 1 (03:30):

My business advisors have told me to do the opposite. They said

Speaker 3 (03:36):

Genuine, sorry. That’s great. Basically the

Speaker 1 (03:38):

More money you’re going to make, you have to play the game. And so what I’ll do, David being totally transparent, is I’ll turn that on and off depending on my revenue. So I know that sounds hilarious probably, but if my revenue gets lower, I will turn off the authenticity to a certain extent and go back into my polite game, the system mode. But whenever income is plentiful, I’ll go back to being more my authentic sharing self because number one, sometimes I get more business than I can possibly ever take down, and that’s overwhelming. And so I find that authenticity is like a business repellent, but it’s so much, it’s so stressful for me to be fake. It’s so stressful for me to be something I’m not. And that’s me being a little bit funny, but also kind of realistic as a business woman. And then there’s me as a person who has a soul and that person wants to connect. That person realizes that I’m not just here to make money, I am here to help people who are suffering. And I know that sounds cheesy and cliche, but it’s true. And lemme tell you, I don’t want to be one of those people who are suffering. So I will switch into a mode that is more polished, if that makes sense.

Speaker 3 (05:09):

That makes sense.

Speaker 1 (05:10):

Because I don’t want to starve. And so I do kind of go back and forth between, okay, I need to dial it back. And I think that people notice that if I was just all the time talking about what a person can overcome or the deep parts of our why and our feelings, then I think that would really drive away a lot of business. I’ve seen people who got up on stage and talked about aligning the chakras and they were never invited back. So you have to find a balance between being a compelling human who helps people overcome these internal struggles that we likely all face, especially as entrepreneurs, depression, anxiety, slow times debt overhead, really painful things that will keep up at night and destroy your health and destroy your relationships. And then we also need to focus on, unfortunately we have to project an image of success from time to time because I’ll tell you, I always get the most business whenever I’m on vacation, I can actively ask people to leave me alone while I’m on vacation.

(06:16):

And that’s whenever I get all the messages for, Hey, I want to do business with you. Because they see the success, they see that it works. When really that’s I’m spending the money, that’s whenever I’m the least successful because I’m not putting time into my business and the dollars are just flying out the window like someone who has an open wound. And so it’s funny because it’s whenever you’re doing the best that it doesn’t show, and whenever I’m making the most money, it’s usually whenever I look the worst, I haven’t had time to groom myself. I’m probably still wearing pajamas that day. And so it’s almost always the opposite as to who has money and who doesn’t. So the person you see with the super nice house and the super nice car, those people have confided in me, Hey, I have so much pressure, I feel like I’m going to lose it.

(07:03):

But those are the people that look up to and respect. And so that being said, David, if I was financially independent, 100% I would be genuine and deep and all the time, if that makes sense. It would be like, Hey, when you woke up today, did you thank God for just waking up? And what are some ways that you can lower your overhead? What are some ways you can increase revenue? Are you wasting time on non-revenue generating activities? Are you doing too much stuff for free? Those of us who are in real estate, I think we do too many things for free. And like you and I talked about, it’s not just your expenditures that are on your books, it’s also the expenditures that are on your time. And so I talked to my attorney last week about dropping non-revenue generating businesses that just aren’t converting because there’s hope in one hand and there’s numbers in the other.

(08:02):

And after a certain amount of time, you need to realize which businesses are covering for the businesses that are taking a loss. And so my lawyer kind of sat me down and I know you do this, and we had to look at which businesses are just not generating and which are carrying the ones that aren’t. And he said, just focus on the ones that are. And so that being said, whenever we wake up every day, if we are our real selves all day, it usually doesn’t translate into revenue. But when I have the luxury of being myself, David, I always want to reduce the suffering of others because that’s kind of all I’ve done my whole life is I’ve had to overcome and overcome and overcome and overcome to a degree that just feels, it could feel really unlucky if I let myself go there. But instead of feeling unlucky, I have to see the opposite side of it. So for all the extremely low probability things that happened to me, there’s also extreme low probability things that happened for me. And you have to see both.

Speaker 3 (09:11):

Right. That’s really good. That is really good. So since we’ve gone down this road, and especially for the real estate investors listening, what would you say are some of the best revenue producing activities they could be doing or that you see in your own life that you do that translates into that

Speaker 1 (09:29):

You have to fill a niche that nobody else is filling? You have to see a problem that everyone is facing a hitch in the giddy up that’s keeping everyone from making money. What I’m noticing right now, for example, people don’t have the money for down payments on their loans. So like we mentioned before the call, I’m offering a program where you can do a hundred percent financing as long as you’re one of my cold calling clients. And it blew up because people don’t have the money for a down payment right now, and my cold callers really aren’t that expensive. And so it solves that problem for them. And in the past, the biggest problem was finding deals. And in a market where you can’t find deals, but there’s plenty of money, then you have to be the person who knows how to find the deals.

(10:16):

And so you have to find what’s keeping people from making money today in the current market and then really, really leverage your social media and go speak, like you and I talked about before, go speak on those topics, mention it on social media, put it in your stories, tell people what you do, and then be really consistent with your message because people are watching, they want to see consistency. And it’s like my lawyer taught me, who’s Jeff Watson? If they see you being erratic and all over the place and not consistent in your message, then people don’t trust that they can go to you to solve these problems. And so that’s the big key is leveraging your social media and being really consistent in your message and making sure that you’re solving the problems of today. So those three things, consistency, solving the current problems and just making sure that you’re leveraging pretty much every avenue that you can.

(11:16):

And of course, always want to be competent and run an ethical business because you can spend 10 years building a reputation. And if you hire one bad employee or someone who makes you look bad or doesn’t deliver for a client, unfortunately bad news spreads like wildfire and just whatever you’re buying on Amazon, you’re going to pay more attention to the bad review than the good reviews because we’re looking for to avoid pain for good reasons. I mean, some things could take us out and set us back a decade if we make the wrong investment. And so it’s really, really important in a capital intensive business what we’re in to be someone who’s trustworthy, competent with very high integrity. Like you and I talked last week and I told you, I was like, Hey, I can’t be consulting on a topic that I don’t know about. Thank you for the inquiry. But that would be horribly unethical. And you have to do that. You have to turn down the fast money for the long-term play of having high integrity.

Speaker 3 (12:18):

Yeah, no, a hundred percent. That’s really good. I think that’s consistency, solving the problem for today and then getting the message out. So those are three steps there. And I think that’s where it’s like, it’s so simple, but it’s like that number one, you got to do it consistently and you got to move to where the market is. So I think that’s really good stuff because I can’t agree more because I think, do you think that a lot of real estate investors build themselves into a box and then when that solving the problem of what they used to do doesn’t solve it anymore, that they have a hard time pivoting to something that will and bring the revenue? Yeah,

Speaker 1 (12:57):

I mean you have your fast movers, your highly networked people who are poised to move, but for anyone who doesn’t want to hustle 24 7, it’s hard to pivot like that. I mean, at some point, I think human beings, we all want consistency, predictability. And one thing that’s really tough about this business, and I’m sure everyone notices, is how fast paced it really is. Now, if we were in the paper business, for example, David, how much do you think things change? Speaking of office space or not office space, the

Speaker 3 (13:35):

Office office,

Speaker 1 (13:36):

Yeah, yeah. I mean if we’re a paper company, how often do you think the industry changes? Right.

Speaker 3 (13:42):

It doesn’t really change. I don’t know.

Speaker 1 (13:44):

I mean maybe a paper guy comes and messages us and said, oh, you wouldn’t believe.

(13:51):

But it seems like from the outside looking in that real estate, every day there’s some new gimmicky stuff and you’re just like, I can’t handle this. I need to step away because I can’t handle one more gimmick. I can’t handle one more big change. It’s difficult. And so I think knowing the fundamentals, because I know people who make big money just using a yellow pad for their CRMs still, and some of these people are big names, and I don’t think he’d mind me saying, Adam Johnson, Leon Johnson’s son, he does a lot of deals just using a yellow pad. Courtney Frickey, she has her paper leads that she keeps in a file and only goes through them if she needs to. So a lot of these gimmicks just really aren’t the real deal. The real deal is not necessarily what software you’re using, it’s where are we in the market, are there more deals than money or is there more money than deals?

(14:47):

Those are really the main two shifts that if you pay attention to those in the market, you’re good. And people was like, oh, I do this with AI and I do that with ai. I haven’t seen AI do anything really amazing except for Google search type stuff. I mean, I’ve listened to the AI calls and they’re still not that great yet. And I keep hearing people say, oh, AI is going to be doing our acquisition management soon. Well, yes, true, but when I haven’t seen it yet and still, which problem is it solving the low money problem or the low inventory problem? And right now I think it’s market to market. It’s kind of like mushrooms and in certain markets we still have an inventory problem and other markets are more of a buyer’s market and we have more of a money problem. So you have to take it market by market, city by city and see which problem are you solving. Those are really the main two problems in real estate. And what I’ve seen is everything else is a marketing gimmick. As someone who does marketing myself, we try to repackage it to get people’s attention, but it’s kind of all the same stuff.

Speaker 3 (15:59):

Yeah, no, that makes sense. So would you say then the people like Adam and the people like Courtney, are those three things that you mentioned before consistent solve the problem for today and then the media and the messaging is that their key to success and as long as they’re consistent doing, what’s really is that or is there something that makes them different just because they go out there, and I love how you said with their CRM is a yellow legal pad, it’s none of the fancy stuff and all that where a lot of people get trapped in that rabbit hole. So that’s where my I’m wondering, yeah,

Speaker 1 (16:31):

Courtney’s really consistent on Instagram and she gets a lot of referrals. And Adam’s been in his market for 20 years, so he gets a lot of referrals. So you talk about consistency, it’s decades of consistency in Adam’s case, and Courtney has been doing it I think for 10 years, and she really gets out there in terms of, she speaks in front of realtors groups, she speaks at rhe, she holds her radio show, and she’s very consistent in her branding. She doesn’t just show herself boating on the weekend or shopping or whatever. And if you look back through her Instagram, you can see that in the past she did have more of showing her personal life. And Connor Steinbrook taught me, don’t show your personal life, just make your entire page about business. But there is one caveat to that. You don’t want to look like one of those VA generated pages where there’s no real person behind it.

Speaker 3 (17:23):

It

Speaker 1 (17:24):

Looks like a VA just runs my page and it’s just my VA who does everything. So I do post pictures of my family and going to the gym, and if I do go on vacation, I do post that. But too much of it makes people think you’re not available for business. So I would say the golden ratio that I’ve discovered is about 90% business and 10% personal, just to add that speckle of reality that you are a real person and not a va. And I think Courtney does that very well on her Instagram for example, and she doesn’t even have to spend money on marketing. She told me she doesn’t do that anymore. She’s a hundred percent referral based now and it’s taken being consistent

Speaker 3 (18:04):

And she does a lot of creative deals or that’s all she does is the creative type deals. She

Speaker 1 (18:10):

Does kind of everything. I know her to do flips, I know her to do. She’s mostly a buy and hold investor and she will do creative when she needs to. But I think I’ve had a lot of clients come to me over the years and try to curate a marketing plan where all we do is creative for them. And that is really tough. You’re going to have a low ratio of being able to do that. Typically creative should be something that comes organically from time to time. If you make that your only goal, and this was a guy with a lot of money, by the way, the one I’m thinking of. He had so much money, yet he was super focused on just doing creative. And I understand if someone has no money and they’re just focused on doing creative, but they get it in their head that this is the way to do it and there is no the way to do it.

(18:55):

You have to just solve the problem of the current seller who wants to sell, whether it’s a listing, whether it’s innovation, whether it’s a flip, whether it’s a wholesale, whether it’s long-term buying hold subject to seller finance, and anything else I’m missing in there. It shouldn’t just be, oh, I’m going to pull this list and I’m just going to do ovations or I’m going to do this campaign. I’m just going to do subject two. You need to just be able to solve the seller’s problem and just start with one, this is something I’ve taught for years. Just start with one exit strategy that you’re really competent in. And then once you master that, expand from there, and like you and I talked about, it’s who not how you don’t have time most likely to master all of those. So have a referral partner that you can build a relationship with and trust for innovations for subject to maybe even for seller financing or maybe master two, but mastering all of the above would be insanity. Even if you had been doing this for 50 years like Leon Johnson, that would be insanity. So be ready to leverage joint venture partners that you can trust with the right paperwork behind it. Of course.

Speaker 3 (20:02):

Would you say that if you go down that road, can you build a business like that? Meaning where a business is systems and other people where eventually you have a business that runs itself or runs it with the people in the processes you’ve put in place. It seems like with real estate, like you’re saying, I have to solve the seller’s problem right then and there. So it almost sounds like you need at those higher level people, you can’t just get the McDonald’s line worker that’s there or the robot or AI or something like that. That’s

Speaker 1 (20:33):

The challenge that I’ve run into. And I feel like conceptually it can be done, but then in psychology we have something called channel factors, these little things that get in the way of what sounds good on paper. And that’s usually where the human element comes in because I have staff of 180 people in my agency and I’ve learned little tricks to managing them. For example, this is going to sound weird, I don’t do company meetings because I just meet with them as I need to. I do spend a lot of time with them upfront, maybe a few hours, and then I never talk to them again except to tell them when a job has come in. And if they need more than that, they’re probably not a good fit. And I don’t do group meetings because I’ve had them all group up against me in the past to raise wages, basically wanting to unionize whenever my clients can’t afford that.

(21:27):

And I said, I’ll let the whole company burn down before I let you extort me in this way. And I did. And I did it privately. I didn’t tell anyone. I didn’t go public about it, but I just stopped the company for six months and just traveled. And it’s like I have plenty of money. And then they were suffering. And then once I was done traveling, they were like, Jen, please, please, I’ll come back. So who would think that there’s a human variable of needing to stop people from organizing against you, or it’s like Adam Johnson says, you have to make sure that you’re always in the way of a deal in order to get it done. So that’s why you can’t fully replace yourself for the most part unless you sell the company, is because at some point somewhere you need to add value. And yes, you can have an integrator, and yes, you can have a CEO, and yes, you can have a CFO, et cetera, but if you notice even in a C class corporation, you still have shareholders.

(22:24):

The shareholders are still in the way in some way because they own a part of the company. So no matter what, you have to make sure that you’re in the way of other people just taking over completely what you do and just pushing you out. And so that is the challenge. That’s where replacing, that’s what no one talks about. Everyone wants to sell these sexy business models where you’re just on the beach or whatever, but at some point you have to put yourself between yourself and someone else to make sure you’re still adding value or you’re just going to get pushed out. So another example is, I mean, you can just live like my older gentleman, friends who just own a bunch of mutual funds and they don’t manage anything. They just collect checks from the dividends, but you have to have millions in order to achieve that.

(23:17):

Lemme tell you, those are the people who have the most passive income that I’ve seen, and I know this is an REI podcast, but what’s great about real estate is you can start with a relatively small amount of money and then with appreciation, leverage that into millions, and then you can become the mutual fund, the note owner or your kids can get your portfolio, but it’s not as passive as just having your mutual fund dividends come in and as know the stock market goes up and down where rents typically, there’s not as much fluctuation in rents as there is in the stock market. And so all that being said, going back to what you asked, whenever you’re managing staff, there’s just going to be all these psychological factors that are not going to present themselves on paper with your staff is always the biggest challenge in running a company.

(24:11):

And so that’s why I don’t do company meetings because that’s whenever people get together, and pardon my language, I think it’s a poignant word. They start bitching and then that causes morale issues. All it takes is one person to start griping and then morale goes way down. And I don’t care how well you run your company, I don’t care if you are like you have in the background, I don’t care if you’re Mr. Rogers, as soon as someone starts griping and it takes hold, it’s game over. This doesn’t work if you run a brick and mortar business. But I have doctor friends, for example. They run brick and mortar businesses, and one of my doctor’s friends two weeks ago, his entire staff just walked out. They’ve been with them for 20 years and they couldn’t have organized like that if you keep them separate. If you’re running a virtual business, that’s one of the benefits is you can manage your staff. And I tell you, that has made my income extremely passive.

(25:09):

So if you take nothing else away from this by keeping my staff separated, I have generated true passive income for myself because all I do is bring the jobs, bring the clients, they work the clients, and then they do a good job and then I’m out. The only thing I have to do is keep bringing in new clients because there is always going to be some small amount of attrition no matter how good of a job you do for various reasons. So yeah, if you have a virtual business, keep your staff separate and that way they’re not coming together. And it’s amazing how peaceful things are. I have no drama. I have no complaints. I’ve known go well. so-and-so did this, and so-and-so said this, and so-and-so gets paid this and I want to get paid this. It’s like I have literally zero drama in my agency with my staff now, and that has just been amazing.

Speaker 3 (26:03):

Yeah, that’s the first time I’ve heard it put like that of keeping separate in that you don’t run meetings and you don’t get them together, which is very anti, a lot of the books out there and a lot of those systems and stuff that have the organizational meetings and that type of stuff, level 10 meetings or the level 10 meetings and all that, that goes along with it. So I love hearing a contrarian viewpoint, especially for someone who runs a virtual business like that and who’s gone through almost like you said, the utilization of that type of stuff. Yeah, I’ve been this for

Speaker 1 (26:37):

Six years, and so that’s enough time to where you’ve passed some task, kissed a lot of frogs and had every problem under the sun.

Speaker 3 (26:44):

Yeah, yeah, no kidding. So that’s very interesting. Well, this has been a lot of fun. I love the answers that you’ve given. I think there’s some really good value there too with being consistent, solving today’s problem and getting it out there, being consistent of getting out your message as well too. I also like that what you just went over that was so contrary to what other people say. That was really an interesting take. I want to, and I

Speaker 1 (27:10):

Would bet you my headaches are much smaller than theirs,

Speaker 3 (27:14):

Probably. Probably. I mean, well, most people have the headaches in business, and if you just have less than them that it probably wouldn’t take much if you just had just that many less. So that’s great. I love hearing that. What I wanted to talk

Speaker 1 (27:29):

Authentic draws better clients too. I did want to share that because I know I went on a bit of a rant and a ramble about that, but let me be pointing on one point is that by being my real self, David against my business advisor’s advice, the clients I have now, I have no drama with and I don’t know why I’m not smart enough, I guess to know why. But the ones who come to me whenever I’m going through times of being very authentic and just really sharing whatever it is, whatever business problems or personal problems that I may be facing and how I’m overcoming them, I get so many people, like you said, who may not do business immediately and it scares off a lot of people. But the clients who do come to me, we have no problems, no drama. They don’t blame me for a lack of success.

(28:13):

They just come in, show up, close their deals, and they stay long-term customers. So that is one benefit is I get fewer clients, but the ones that I do get, I have zero drama with, and we’re so simpatico that I work hard to make sure they’re successful and they don’t. Whenever I was being inauthentic and getting a lot more clients, we don’t have meetings about Jennifer, why am I spending this money and not getting any deals and then this, and they’re just being very nitpicky, but clients where I’m my authentic self, they come in and they just close deals, David, we don’t have to have awkward meetings that make me feel like crap about myself, feeling like I’m not really actually helping anyone and I’m just charging money and nothing’s happening for them. They come in and they’re like, Hey, Jen, I did this deal. I did this deal. Your staff is great. And so that was a crazy change to me. I thought, this is self-destructive behavior being this authentic, but I just felt compelled to actually help people. And then these clients are the most low maintenance clients I’ve ever had. So I would be curious what your take is on that in terms of why is it being authentic? First off, it’s interesting. It draws in less clients, but the ones that does draw in, I have zero drama, zero problems with, and they stay with me forever,

Speaker 3 (29:36):

Which is funny because what you’re describing now is in those books that tell you to have the meetings, it’s like it’s your core values. It’s the values that are shining through that. It’s people that resonate with you as a human being. So usually they’re going to be the ones, especially if you’re being authentic and being open and honest and sharing values that are just as a society, we look at and say, it’s mature what you’re doing. You draw those mature people in, so it’s like they’re going to be the ones that sit back, they do the deals, they get it done, and then they come to you and they be like, yeah, let’s keep moving forward. And that’s the low drama because projecting that out there as well too, just from what I can observe right there. But I really like that because very much of if you’re going to be yourself, you might bring in less, but you might bring more of the people that you want to work with. That’s what I took away from makes income

Speaker 1 (30:26):

More passive because that is always my goal. Low drama staff, low drama clients where we’re just doing deals. I’m providing excellent staff who are going to make sure that you’re getting in front of as many people as possible for as little money as possible, talking to those motivated sellers, getting good prices on data, getting good prices on your loans to close your deals, and just keep it simple. There shouldn’t be any insanity. There shouldn’t be a lot of complaints and craziness. And that’s not to say there’s never problems, but when there are, it’s like, Hey, Jen, we need to have a meeting because this caller’s gotten a little too lax and they’re just becoming too rote and they’re going through the motions too much. I had to have that call three months ago, but guess what? He didn’t leave. He didn’t blame. He said, Hey, let’s just fix, let’s just fix their script.

(31:12):

And so I told her, I said, Hey, you’re one of my best, and maybe you’re working too long hours. Maybe you need to take more breaks. Maybe we need to load you up with fewer clients because instead of listening to the seller, you are kind of just pushing through the script. I said, someone who started out cold calling myself, I noticed I would do that towards the end of my shift. And I said, so let’s just be aware that that’s what’s going on. But I didn’t blame or shame her. I just said, Hey, because I was sitting in that seat myself for so many years, David is a cold caller. I know what problems they face, and it makes me a better manager for them. And just say, Hey, it just sounds like you’re getting a little tired. And so take a 30 minute nap, take an hour nap and come back and you’ll see how all of a sudden, instead of just pushing through a script, you’re really an active listener.

(32:02):

But that’s the only problem client meeting I had to have in the last six months where before God, David, it seemed like it was every day. People were just pinging me with this is a problem and that’s a problem. This is a problem. And I think that’s what led to my heart attack last year at 38 years old, was just having all these clients with all these complaints and it was just driving me crazy. And now I don’t have any of that. And so just sharing my experience, whether it’s true or false or somewhere in between. It’s just my anecdotal experience.

Speaker 3 (32:36):

Well, no, that’s really good. I wish we more time, but I’m going to land the plane here. We’ll have to do another episode too about how you got through that and coming out on the other side. But if people want to get ahold of you for your cold calling and what you’re doing there and how would they get ahold of you if they want to start to work with

Speaker 1 (32:54):

You? Yeah, whether it’s the cold calling or like I said, the loans where we’re offering a hundred percent financing on both the rehab and purchase price. If they’re my cold calling client, they can just email me at jen, JEN at rre I data source.net. I’m also a really brave person who gives out my cell phone because as a cold caller, I’m not afraid to call you. You

Speaker 3 (33:18):

Can call me,

Speaker 1 (33:19):

I may think you’re a spam call and answer a little bit briskly, but my cell phone is (469) 952-8011. Feel free to call me there or Jen at REI data source.net.

Speaker 3 (33:32):

Cool. So that’s how you could get ahold of Jen, and that’s the email. And she gave your phone number as well too, so you could call her in and say, Hey, hey, just wanted to see if you answer the phone. I’m sure you will. Like you said, who does that? Right? Who? Their cell phone. Cell phone. And then who does that? And then actually answers too. I feel like today’s age, please go to voicemail. So that was good stuff. Lots of valuable information here, stuff that you could take and I think implement right away to become these type of people out there that are consistently successful. And that’s one of their keys to success is being consistent in solving today’s problem, building the message around that as well too. I really liked your insight of the type of client you draw in when you are your authentic self versus where you might get more, but it might be more headaches if you are not. So it’s like just lots of good practical things today. So that was a lot of good stuff. Thank you for sharing, Jen. I really appreciate all that you did here today.

Speaker 1 (34:26):

I appreciate it. David, thank you so much for having, thanks for asking great questions.

Speaker 3 (34:30):

And I wanted to say too, if you’re listening to this and you’re like, oh my gosh, I’m not making enough or whatever, first of all, call Jen, you can literally call her. She gave you her number. She can help you make more money if you need to keep the money too. If you’re like, I have no idea where my money’s going, don’t know what my overhead is, don’t know how much I’m making, how much I’m keeping, or I want to keep more, you can reach out to us@simplecfo.com. We want to help you get at least that stuff in place because if you don’t have any idea, you’re not running a business. So that’s where I want to help you at least be consistent in knowing where your money’s going too. That’s another consistency factor as well too there. But Jen, again, thank you so much for coming on and sharing, and if there’s anything that you need from Jen, you know how to get ahold of her. She gave you the email address and her phone number. Again, thank you so much for coming on today.

Speaker 2 (35:17):

This episode of The Profit First for REI podcast is over, but there are plenty more where that came from. Are you ready to learn how David and his team can help implement the Profit First system in your business? Schedule a discovery call@simplecfo.com right now. We’ll see you next time on The Profit First for REI podcast with David Richter.