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From Chaos to Clarity: How Profit First Revolutionized Our Real Estate Business

Title: “From Chaos to Clarity: How Profit First Revolutionized Our Real Estate Business”

 

Episode: 186                                          

From having one of his companies go from a chaotic mess to having more revenue and net profit to pay for taxes and other operational expenses, let us know more about Andrew Lucas’ transformation story!

In this episode, Andrew Lucas, a real estate investor who runs a family-owned business, shares his real estate investing journey that will give you hope from failure to success!

Listen as he also shares how his wife got involved and got her an outlet for her wonderful talent! Enjoy the show!

 

Key Takeaways:

[01:30] Introducing Andrew Lucas

[04:58] What his business looks like before Profit First

[11:20] Starting the wholesaling business

[15:51] Challenges Andrew and his wife had to face in the real estate investing journey

[21:30] Husband-wife team on their real estate investing journey

[24:32] Andrew’s Profit First story

[28:02] Get in touch with Andrew Lucas



Quotes:

[06:15] “They know they are making money, they don’t know where it’s going. They know they don’t have as much now as they thought they would.”

[25:40] “It’s easy to lose track, but when you implement this, you will have opportunities that open up.” 

[26:14] “The people that succeed in real estate are the ones that can stick around the longest.”

 

Connect with Andrew:

 

Website: https://reidealfinders.club/ 

 

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:

I guess would’ve been 2021. Maybe that’s when you wrote the book. I’m not sure. Yeah,

Speaker 2:

At the end of the year is when it came out.

Speaker 1:

Yeah. Yeah. So we got it early on and started mentally changing the way we thought. Yeah. And processed. But as far as the full method, the full separate accounts and actually working them, we did it for one business all of last year.

Speaker 3:

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 r e I 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 2:

Definitely one of my favorite episodes here with Andrew Lucas. He dives deep into how Profit First helped one of his companies go from just a chaotic mess to having more revenue, not just profit, but more revenue, more net profit, extra taxes at the end of the year and extra operational expenses. And got his wife involved and got her a outlet for her talents and just their whole transformation and the story. So I know this is gonna be a great one for you. Gonna give you a lot of hope. Listen to Andrew and listen to what he has to say about Profit First to help you on your journey. Hey, we have Andrew Lucas here. I’m super excited about this because he is a real estate investor, runs a family owned business, but then also is a profit first fan, major profit, first fan, and is implemented. So we’ll definitely talk about that today. Maybe give some people some hope here. Don’t have to stay stuck where you are. So Andrew, thanks for being on.

Speaker 1:

Thanks David. I really appreciate it. And yes, profit, first, fan user and supporter. Where I’m, I I give the book away to new investors that come into our deal Finders club. It’s like y’all start with this <laugh> that’s you can have money when you end.

Speaker 2:

Yeah. Well I love that. That’s great. I getting that message out there and that’s what we’re doing here. But first, just give people a background who you are real quick so that way people are on the same page cuz real estate investor means different things to different people. So tell people what you’re into right now.

Speaker 1:

Absolutely. So I started right outta college. I got moved home with my parents for like a month and said, I don’t want this. Found a house near the college and bought it with no money outta my pocket. Didn’t know what I was doing. They just had a really good mortgage broker and he kind of just found all the fun things for me. Got me a really good package. So I got into a house and was renting a room to a roommate. Moved out, started renting the whole house and just kinda liked the idea. We weren’t making any money, but it was nice. It was retirement. And a few years later I met my soon to be wife, you know, right after that. Got another house, another house. And then that was 2007, 2015, 16. We had about five houses.

I think it was five houses where we just picked up, you know, slowly. And we figured that would be retirement income. We weren’t really making much, but at that time we had two kids, little kids two of ’em under three. One was cooking in, in Mama’s belly over there. And we said, you know what? We were painting one of the rental houses after a move out. We said, we can’t do this. This is not worth it either we go in and we make money with this or we get out. And so we said, well let’s make money with it. We set a goal to get rental houses, buy enough rental houses that we could supplement one of our incomes and quit, you know, retire from our day job. And that happened in 2018.

Speaker 2:

Awesome.

Speaker 1:

And before 2018, in between 2016 and 2018, we found wholesaling, found out what that was. We had no idea before everything else was m l s. So we found out what wholesaling was and we both quit our jobs. My goal was to start the wholesaling business and that would be our income. Yeah. And she was quote retired, which that doesn’t really mean anything cuz she was also in the wholesaling business. Yeah. And now it’s been five years I guess of that. So we now have a little over a hundred rental units. We have a wholesaling company with a team that we’ll do. We’re going for, we’re gonna say 2 million this year. Last year was a little over one. So we’ve got a little growth coming this year and we have a retail agency with real estate agents here. And of course we fix and flip along the way. Yeah. So that is our big picture where we are now.

Speaker 2:

Okay, awesome. So let’s talk about, that’s the big picture. What did the business look like before Profit First?

Speaker 1:

Well, it’s, I mean, a jumbled, a jumbled mess of, of <laugh>, you know, it’s, and and I say it and people don’t understand, I heard it before too, right? I, I was in circles of other investors, thankfully. 2018 we started the deal, the local deal finders live here to get connected with other investors. So I heard, hey, be careful with all the funds coming in. You wanna make sure you have funds at the end of the day. And starting a business that I’d say successful, like where revenue is being generated. Yeah. it can get like you just kind of go with the flow revenue’s coming in, all right, well we got money here, we could send it out to go this, do this thing that we wanna do. And what you end up looking at, and we never struggled to eat or to pay our bills or anything, but we weren’t building a profitable business. We were building a business that just kept putting money back in. And now with some maturity, I’ll say, my wife may not agree, I’ve matured some, but <laugh>, when people say, oh, I just rein, I just reinvest everything back in the business. Yeah. What the really saying is they don’t really know where the, they know they’re making money. They don’t really know where it’s going and they, they know they don’t have as much now as they thought they would <laugh>. Yeah.

Speaker 2:

So let, let’s go a little deeper though. Like on your situation, it was a jumble mess. So like how many flips were you doing beforehand or like, were you doing the wholesales and like, was it like money going in, money going out? Were you doing the reinvesting, like when you say jumbled mess, what was going on in your situation specifically?

Speaker 1:

Yeah, so we had we’ve always done about 20 to 25 flips every year. Yeah, that’s great. So whatever that looks like and the wholesale business. So of course we, you know, I’m smart entrepreneur, we separated the bank accounts. Yeah. Right. So the wholesaling business wasn’t coming in to the fix and flip and Yeah. Isn’t going into the good the home or to the retail, but, but that’s just, you know, that’s like basic 1 0 1. Yeah. That’s what everyone tells you to do. But, but that really doesn’t help you manage that business. Right. individually. So for instance, the wholesale business, which is the most profitable, you know, the, it’s a wonderful business. It takes a lot of work, you gotta hustle. Yeah. But that the revenue, the wholesale fees would come in, but we already had marketing set up and marketing is being paid out so that marketing automatically comes out.

Right? Yeah. So the wholesale fees come in and it’s just kind of like, it’s like a, I think of a bucket of water. You keep putting the water in the top and then the marketing fees keep coming outta the, the, the bottom, right? Yeah. And, and you don’t, and what what we saw is that it would just, the bank balance would just kind of stay about the same. And we knew we were making money, but we would find ways to spend it Yeah. If it’s in the account. And, and we’re kind of getting deep into the profit first model now. Yeah. But, but you know, if it’s in the, if it’s there and it looks available, we’ll find ways to spend it and we spend it on the business. Right? Yeah. And, and that’s how we justify it. Because we did, if we didn’t have it allocated for something, well hey, we could, we could buy this for the business. We could buy that for the business and not even not wasteful things. Right? Yeah. I’m not, it’s not like we bought a Lamborghini for marketing. Right. That’s right. That’s not it. And which is why I love your the method, the book, the message, because it’s the little things in our business, the little things in the, the like new marketing things, the, the little expenses that keep adding up. And we find ways to spend that money when it comes in unless we allocate it right away.

Speaker 2:

Okay. So a lot of money was going out the door. It sounds like, you know, it was coming in, going out. What year was that? Like what year before you know, profit first?

Speaker 1:

So we did, we went all of 2022. So last year our goal was to implement it into multiple businesses. We actually got it up and running and did the whole year in one. Yeah. That’s so great. Which is the retail retail agent business. Mostly because my wife took on that one <laugh>, she nice. She like ran with the ship. And so we, we did that one for the whole year. So in 2020, I guess it would’ve been 2021 maybe that’s when you wrote the book. I’m not sure.

Speaker 2:

Yeah. That the end of the year when it came out. Yeah.

Speaker 1:

Yeah. So we, we got it early on and, and started mentally changing the way we thought. Yeah. And processed. But as far as the full method, the full, yeah. Separate accounts and actually working them, we did it for one business all of last

Speaker 2:

Year. That’s awesome. So then I guess beforehand too, cuz it is, it’s very easy to have all the money go out the door. You had said a goal was to have enough rental income from 2016, you know, and then by 2018 you had retired, you know, it was your wife at that came on board, correct? Like was she full-time at that point? That’s like you retired like her income in 2018.

Speaker 1:

Yeah, so we were both full-time up to 2018 and I did the math basically we did the math that said if we got 35 rental properties Okay. You know, at a 150 to $200 a door, then we could her after tax salary we could replace. Right. Okay. And then reduce a little bit of expenses here and, and we kind of made it work. And so that’s how we did that. And so the rental properties were the, the right there at the beginning we said this can support us. Now we never actually used it because we started the wholesale business and we started drawing.

Speaker 2:

Okay. Cuz that’s what my question was like, did you start to draw, like when were you running it, like where you could actually pay yourself, you know, like, so it sounds like from the wholesale business you were able to start paying yourself and you actually did, cuz a lot of people don’t. So were you paying yourself from the wholesale business?

Speaker 1:

Yes. That’s how we started paying ourselves straight from the wholesale business. You know, we had some great mentors, great great coaches to help us get started on there and that launched really well. And, and so we, yeah, we were immediately able to pay ourselves from that. And, and this kind of goes to what I was talking about earlier, like, oh, I reinvest everything. That’s the way I thought about our rental properties. Like oh, just keep buying and reinvesting. Well, rental properties could also be paying us Right. You know, if we set the system and put it in place, there should also be a place for payment for the owner each month, each year from the rental house. Right. Rental properties. But, but we kind of put it to the side and said, no, this is where we’ll get our money. That’s fine wholesaling, we’ll keep buying rentals and and do that. Yeah. And, and without the method, without the the plan in place and just, they’re in your face every day. Yeah. It’s easy to let it go. It’s easy to let the money, you know, not necessarily go negative or, or lose money in the rentals but not send it to us <laugh>.

Speaker 2:

Right. Yeah, exactly. Now and that’s where I was wondering like what did you do with that money there, but sounds like it went to just either sitting there or did you ever do capital repairs from that stuff? Or like, you know, did, did you have a nest egg, you know, at that time or were you spending all the money from the, the rental company as well too? Cuz like you said, it’s hard for investor to just have money sit any place.

Speaker 1:

Exactly. Like when it, if it sits there in the account, you’re like, oh wait, I could do this, I could do that. Because there’s always something you, you can, you can find something always to do with the money. What we continue to do is to buy rentals, thankfully. So continue to grow the portfolio. Yeah. right now we’re at a little over a hundred units, so Awesome. You know, we’ve grown, we’ve Yep. Bought some, sold some and we continue to do that. And with using that rental account for like you said, capital expenditures and taxes Yeah. And that sort of thing. But still not, cuz we, we didn’t implement the full thing for the whole year. We’re still not taking owner’s pay like we should. Right. Yeah. From the rental account.

Speaker 2:

So then what was the tur, was it getting the book proffers for real estate investing that made you say, Hey, we’re gonna finally set this up inside of the business. Like what was the catalyst for like saying, Hey, 2022, we’re gonna do this

Speaker 1:

A hundred percent. Yeah, it was the book. It was <laugh> and not, not to be a fan girl or anything. Right, sure. But it was the book, the, the ease of getting through it. I, I probably read it on a plane coming back from where you launched it in, in Tampa or something. Yeah, yeah. So it, it was the ease of that, it made it simple, it made sense to us. It was kind of what it was, the structure we were looking for. Yeah. Before, before I was went full-time in real estate investing, I managed hotels, I managed multiple hotels as a GM where we have budgets and we have things, you know, we have p and ls and balance sheets that we review and that’s how we ran our business. Right. We would, we would do everything and look at the p and l at the end of the month.

 But what we weren’t doing is saying, okay, here’s the budget in the forefront and let’s make the buckets, let’s put the, when the money comes in, put it into that bucket so that it stays in that bucket. Right. as a manager of the hotels, it, I didn’t necessarily have to worry about that part. Right. So, because when the money came in, you know, I guess they dealt with that, the ownership, the, the VPs stuff, they dealt with that part. I had to worry about expenses. Yeah. And so it’s different. And so I think a lot of entrepreneurs, when you get into that position, if you’re not paying attention on the forefront, on the front end, having a plan for the money coming in, like I said, it’s, it’s easy to find some how to spend it on the business.

Speaker 2:

Okay. Yeah. It’s a hundred percent. So then you started implementing it in the retail side. What, was there any hurdles that came up? Like maybe for your wife as she spearheaded it where she was like, oh, what do I do here? Like, I didn’t realize this was gonna happen or like, this is not, you know, like I just wonder if there’s any roadblocks that she faced.

Speaker 1:

The only, you know, the only roadblocks, I’d say not roadblocks, but maybe little speed bumps was getting it set up with the banks. Getting the process for QuickBooks. Yeah. Like reconciling how we, what, what does this mean, not transferred or whatever. So figuring that out. We spent some time doing that, we’ve gotta figure it out now. And so those were kind of the little speed bumps. And honestly, you know, it’s one of those things that maybe some people quit when they hit the speed bumps. Right. And like, this is too hard or ah, this isn’t worth it. But my wife would not have quit. She’s, she’s gonna plow through and get it done. So, so that’s why she spearheaded it. Yeah. And, and so we, we were able to get through that, put it in place and then, you know, there weren’t any more other speed bumps. There were some prizes, some surprises.

Speaker 2:

Yeah. Talk about those then. What were the surprises?

Speaker 1:

Yeah. As in, as in good surprises, which is like at the end of the year we look and like the owner’s tax had a whole bunch of money in it where we didn’t have to pay taxes on, you know. Yeah. We didn’t have to spend that much money on, on taxes. Yeah. operating expenses, the retail business doesn’t really have a whole lot of expenses, but we put some in there and, and we had opportunity to spend it. Right. Yeah. Some of those things. And of course the profit <laugh>, the fact that there was profit in the profit account at the end of the year. And so we, Michelle, my wife, she’s like, and she, I don’t, she didn’t know, like, you know, that’s our money. She’s like, what do we do with this now? I’m like, what do you mean it’s ours? Like what do you wanna do with it? <Laugh> <laugh>. She’s like, well I, but she likes seeing it grow, you know, she’s like, oh, I wanted more. And, and so we, I think we took half of it out Yeah. And did something with it. So what’d

Speaker 2:

You do with it? Everyone’s

Speaker 1:

Gonna wanna I ask that question. Yeah. Right. I had no idea. Okay. <laugh> she probably knows. Yeah.

Speaker 2:

Get Michelle on here.

Speaker 1:

Yeah, I know, right? So I mean that those were the surprises because

Speaker 2:

Yeah. Good surprises.

Speaker 1:

Yeah. Cuz instead of, instead of it dripping out the bottom of the bucket slowly into like all these expenses just coming Right. Without us really knowing it was the opposite effect where it was, it was building up these other buckets really, you know, slowly small bits at a time. And those surprises were great at the end of the year. Yeah. When you can say, man, you know, well that profit thing just kept adding up. And so when I think I told you this, when I went towards, at the end of the year, we did our review of everything, all the financials and pulled up the, the Excel spreadsheet for profit first and we were $5,000 off. So $5,000 off of what the owner’s pay was gonna be from Nice. That account. So have it just so close, be right in line. Yeah. And, and all the things worked out. So that’s that’s when I told you when, whenever I saw you last. I don’t remember when that was or when you were on our podcast. Maybe I was talking about just how exciting that was to see that it worked and that we had the money at the end of the day we had extra to, to use it with and, and we had owners pay, we had pay coming home on a regular defined interval. And

Speaker 2:

So how long have you had the retail business up and running?

Speaker 1:

So about, well three is be three years in July, so,

Speaker 2:

Okay. No, so that’s all. So you’ve got to see it beforehand, like how the business was running before and versus now. So that, I guess is that a big difference of feeling for that specific business too? I mean, do you like the retail side anyway and this just makes you love it? You know, I don’t know, like Yeah. Explain that feeling of it as

Speaker 1:

Well. That’s a, that is a great question and and I’m glad you asked that because before, before last year before we really looked at it and said, oh my gosh, we, we did what we said we would, the retail side, we started really as just support for our wholesale business and our flipping business. Yeah. We just wanted agents that were here in the office that we could say, here you go. Right. Just support. We, it was never, there wasn’t a profit mindset. It wasn’t like, sure this was gonna be a revenue generator, but after doing the, after reading the book, putting it together in the spreadsheet and saying, you know what, there’s no reason why it shouldn’t provide profit. Right? Yeah. And so looking at that then changed our minds and said, well let’s run it like it’s going to provide profit. And, and so we did, and now it’s completely changed my viewpoint on the retail agency where so much so that we, we grew it, we brought in new agents and we’re looking to add more to make so that we’ll be, you know, another arm of the business versus just support.

Right. Yeah. It’s just kinda like support

Speaker 2:

And Oh, that’s awesome.

Speaker 1:

So really, yeah, I mean it’s opened up our eyes to a revenue piece of revenue that we weren’t really tapping into.

Speaker 2:

That’s awesome. Because see that’s what I, I love hearing those stories cuz it’s like the surprises, those surprises, it’s like you might not even realize the benefits of once you have that money sitting, there’re giving you options and the different things that you’re able to do with it. So I really like that. That’s that’s great. So let me ask too, since Michelle has gone through this process, what are her thoughts on this whole system and like her feelings of like having the money there and you know, like seeing it actually grow over the year. Like, I just wanna know from your perspective getting to see what, if she has any thoughts on that.

Speaker 1:

Oh, she, she loves it. Now I’m the entrepreneur at the high level the Yeah. We’ve talked about earlier like <laugh> we were joking in the office, you know, maybe she’s the ooc D or you know, like things gotta be in line and things are straight and and she’s like, you don’t care about anything. I’m like, I care about some stuff <laugh>, but, you know, and, and that’s great. And that’s, that’s why we’re different. That’s what, you know, God gave us some good, some talents to match. Yep,

Speaker 2:

Exactly.

Speaker 1:

But she loves having a handle on it. Security is one of her drivers, I guess is the word. Right word. Yeah, sure. And, and having that security, having the buckets fill up and not be emptied constantly and knowing that no, we’re not touching this bucket. It is off limits. And having the security to know that that’s possible really changes the way she functions in our business. There, and this is probably getting, that’s awesome. This is getting a little bit high level or whatever, but in this entrepreneurial world with me kind of running all over the place, like yeah. She almost was like, I don’t, I don’t fit in. Like this is not for me. Wheres my space? Yeah. Because we didn’t have that kind of structure in that part of it. Sure. And so now she has that structure in that space and that’s kind of built, we’re able to build outta that more places and things that kinda get me out of it <laugh>. Yeah. Because my chaos is tough for, for people like her.

Speaker 2:

No, I get it. Yeah. It’s a, it’s a classic visionaries versus integrator operations, you know, executor for, you know, for the business. And I I love that. I love that connection you made of like, it helps her feel like she has a spot and it’s like a very good spot to be able to have there and like to make sure that the holes aren’t going outta the bottom of the bucket. Man, this is why I, like I said, this is why I love hearing these stories cuz it’s like these other things where, you know, husband, wife team sounds like just like, like you said, the high level, it helped to become more of a husband, wife team, like gave her a place on that team. Would you agree? And

Speaker 1:

Would Absolutely. With the

Speaker 2:

Oh yeah. Okay. Awesome. Well no, I, we do, we we need to get Michelle on here. Like, everyone that’s listening now is like, I want to hear Michelle’s side of the story.

Speaker 1:

You wanna hear her side of the story,

Speaker 2:

Right? I, yeah, everyone’s gonna wanna hear what she has to say as well cuz it sounds like it helped her find the place of the business and have a good outlet for her talents too to be able to shine through. Mm-Hmm. <affirmative>. No, that’s awesome. Cuz I love the husband wife teams. It’s just sometimes it is, it’s a struggle cuz sometimes it could be, you know, in the reverse. Like the wife is like, Hey let’s go gun ho and that husband’s like, Hey whoa, we gotta make sure the money’s in the bank and doing this stuff. So it’s like, it’s it’s fun to hear the dynamic of the different situations, but, oh yeah. No, that’s awesome. I just have a couple last questions. Sure. In order, now let’s save that one. Is there any other either surprises or good benefits or anything else or a pr first story that you have before I ask you My final two questions?

Speaker 1:

I don’t know if there’s any other surprises, but I would say the whole story, the, the good story is that we’ve been able to give it to some of our students and awesome peers and say start here. Yeah. And just to hear kind of how it’s opened their eyes from the beginning. Right. We, we work with a lot of people that are just beginning. Yep. And so being able to help people start there from the beginning. I I really appreciate how easy it is to digest the, you know, the way you kind of wrote it and the, the templates, the forms, all that is is great because it’s hard to, some people don’t wanna get into the math and the numbers right? Yeah. So it sometimes it’s hard to convince people to do that, but you made it really accessible.

Speaker 2:

Well I appreciate that and that’s where it’s like, just wanna make, make it as simple as possible for people to get inside there. So I guess that’s, that’s usually my next to last question is what advice would you give to a real estate investor looking to implement profit first? Like how would you get them to, to start it?

Speaker 1:

Well, yeah, I mean that’s, that’s usually when I tell people to get started is I kind of give the story of, you know, we have multiple businesses and it’s easy to lose track, but when you implement this you will have opportunities that open up because you have funds still in the bank. Yeah. So that, that’s kind of how we usually tell people. But it’s, and it’s really just, just open it up, get started. We spend so much time on, on marketing or negotiations Yeah. How to get the deal or you know, where to find the deal and sometimes people kind of gloss over this business aspect. Yeah. Which really in order to stick around and the people that succeed in real estate sticker are the ones that are just able to stick around the longest. Yeah. You can make it through whatever craziness is going now and where everyone else falls out. If you can make it through because you had a solid business and solid bank account, then you can succeed. And those are the ones that are just continue to keep going and, you know, real estate we always say you can’t really, you don’t lose money in real estate unless you get out too soon. Right, right. Yeah. So if you could stay in long enough, which means keeping money in the bank long enough you will succeed, you’ll, you’ll win.

Speaker 2:

Well I cannot agree with that anymore than all those words that he just said. That was, that was great because if you are looking to implement private first, like you gotta start and you gotta make sure that you know that it’s possible and then it’s like if you want to be around for a long time, you gotta fix those holes in the bucket. And so that was just, that was so good because I do this whole podcast is exactly for what you just said. Like I want people to build just solid businesses so they can, so they can do what they love for a long time. So now that was a great way and then I will do is you’ve man, there’s so much good here I feel like from the husband wife dynamic and then you opening up about like this helped my wife find a place like she could, you know, exposes her talents and like helps her to see this to you.

Like hey, I’m the crazy chaos guy and it’s like, it’s great to know that the, where the money is and like on the back end then it’s like all the other stuff that like going from a jumble mess to knowing where stuff is and just seeing the possibilities, passing it along too. I wanted to ask how can people get ahold of you? Like how can they provide value back to you if they’re interested in real estate? Cuz I definitely endorsed Andrew and his wife and like what they’re doing. So how can they get in touch with you?

Speaker 1:

The best place, the easiest place is probably deal finders club.com really easy deal, find deal finders club.com. Of course we’re on Facebook with our group deal finders group as well. So those are the best places to find me and you know, you can contact me through any one of those places,

Speaker 2:

Deal finders club.com, make sure to go there and see if you want to work with Andrew cuz this is awesome. Like I love this. I love when people give profit first. It’s one of the key foundational things cuz I feel like you’re saying them up for real success for a long time. It’s not just about like, yes Andrew’s gonna teach you to get deals in the door and get money to flow into your bank account, but then he is gonna give you a tool to make sure it doesn’t flow right about <laugh> out, out again and you’re just stuck where you were, you know, when you first started. So I absolutely love that. And if you are listening to this as a real estate investor and you’re saying, I want what Andrew has, like I want a place for my wife, I think she could do great at this, or my husband or I could, you know, like I want clarity around the finances.

I want extra profit, I want extra taxes in my tax account. I wanna know that I have extra opex for all my expend and that it’s not all going out the door. You could go to simple cfo.com, we could put a fr a fractional part-time CFO on the team to make sure and hold you accountable to set it up and that you have extra profit at the end of the day deal month like quarter, making sure that it’s there. That simple CFO would love to see if we’re a good fit. If not, we can p it to someone good. Maybe you need to start making money, maybe we pay you to Andrew to make sure that you can actually get up and running first. But I just wanna give that outlet to you as well. Then go to deal finders club.com for Andrew stuff. That’s a great place to get started if you’re started in real estate. And then no matter what, I want you, if you are listening to this make profit a habit in your business. Andrew, thank you so much for being on here and providing so much value today.

Speaker 1:

Thanks David, it was great. Appreciate it.

Speaker 3:

This episode of The Profit First for r e I 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 r e I 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.