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How Overcoming Mental Roadblocks Will Make You More Profitable featuring Mark Stubler

Episode 82: How Overcoming Mental Roadblocks Will Make You More Profitable featuring Mark Stubler

THE PROFIT FIRST REI PODCAST

April 10, 2022

DAVID RICHTER


Summary:

Without an intentional focus on measuring and growing cash, as well as profit, your business might turn into an awful 360 degrees. Sharp-witted business owners are always one step ahead in maximizing growth, profitability, and value — especially in a competitive market like real estate. These strategies help leverage upcycles, weather downturns, and achieve your growth and value targets. If you’re not yet convinced, then you should give this episode a listen. 

Mark Stubler, owner and founder of Joe Homebuyer, is here to provide us with a blueprint on how to operate the “franchise model” in your business, understand your numbers better, and focus on profitability so you can achieve high levels of personal and financial success. But of course, success comes with failures. He will also talk about the mental roadblocks he encountered throughout his journey. So be ready to deep dive into these exciting topics!


Key Takeaways:

[1:44] What is the hardest lesson he learned as a real estate investor?

[4:53] What keeps Mark going in real estate?

[6:34] Has he had any money struggles in his business as he grew business and branched out?

[8:07] What are his struggles? How did he get past some of those, and what systems does he have to make sure that he’s taking as few risks as possible?

[10:40] Has he incorporated the profit first system

[12:24] The franchise model, how can you turn a successful business into a successful franchise?

[16:27] What early lessons did he learn about money, and how does that compare to how he thinks about money today?

[23:54] Understanding your numbers better and focusing on profitability


Quotes:

[2:03] “There are many ways to make money in real estate; if you’re not careful, you can chase two rabbits and catch none.”

[5:30] “It’s not an easy industry, but it’s simple. And if you apply consistently, you can yield such incredible returns on a fair amount of effort.”

[11:07] “At the end of the day, if you’re not paying yourself, if you do not realize profits, you’re looking at it backward.”


Links:

Mark’s LinkedIn- https://www.linkedin.com/in/mark-stubler-a201b56b

Joe Homebuyer’s Website- https://joehomebuyer.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:

Mark Stubler:

I adopted this idea that I actually believe that we’re all entitled to becoming the best versions of ourselves. And a lot of times that translates to financial independence, there is a greater law, being, whatever you call it, a God that actually has interest in you, not just surviving, but thriving.

Intro:

Welcome to The Profit First REI Podcast, where real estate investors, master financial management, eradicate entrepreneurial poverty, and learn to be profitable from day one. Now, for your host, David Richter.

David Richter:

Today, we have Mark Stubler on The Profit First REI Podcast. I am your host, David Richter. I am really excited about this episode because he is the co-founder with Cody Hofhine at Utah Sell Now, Texas Sell Now and Joe Homebuyer, which does franchising, which is amazing if you want some help and getting the deals done. We talk about that inside this episode, but we also talk about some other things which are incredible from what Mark is talking about.

He talked about some of the mental roadblocks of when he started actually making money in real estate. So many people make money in real estate, but they don’t know what to do with it, and he gives you the answer. If you listen to the very end, he gives you the answer of how he got out of that mental block. And we talk about how revenue is vanity, profit is sanity and how his businesses really reflect that now and what he had to go through. I’m super excited about this episode. So let’s dive into it. Mark, so tell me just right out of the gate here, what is the hardest lesson you’ve learned as a real estate investor?

Mark Stubler:

Dude, I love the question. Stay in your lane. I realized early on that when I tried to get a little bit of commercial and land development, and even in the early days, taking on a rehab before I knew what I was doing or had somebody to manage it, man, it’s stay in your lane. There’s so many ways to make money in real estate. If you’re not careful, you can chase two rabbits, as the saying goes, if you chase two, you catch none. And I’ve been guilty of that.

David Richter:

Yeah. I think that shiny object syndrome gets a hold of everyone and then it’s like that focus and you just go, crazy everywhere. That’s a big one, stay in your lane, and that’s where if you’re wearing too many hats in your business, it’s very easy to drop the balls in the air if you’re trying to juggle 15 of them at a time and you’ve never juggled before.

Mark Stubler:

That’s right. Now, there’s a time and a season to take on additional exit strategies, additional focuses, but be good, really good at what you’re doing. We started wholesaling in Utah and we thought, “Hey, we’ve been doing this for 12 months, now it’s time to expand to another market.” And it was a foolish mistake. We weren’t ready to expand. We didn’t even have our infrastructure built out in Utah. Just that simple step of now we’ve expanded to another market, but it was after we had the infrastructure, the foundation in place. And we were in a position where we could take on another project or take on an additional element to real estate.

David Richter:

Yeah. Awesome. So, tell me then, why real estate? Why did you get into it?

Mark Stubler:

I feel fortunate that real estate found me or I felt found real estate. I have to tell you a quick story. So I was a fence and deck salesman for 10 years, worked with a great company. Regional sales rep, had a lot of success, made pretty good money because I’d been there, felt comfortable, worked with a great organization. And it was just time, I realized through what I referred to as a gift that the employer gave me. They said, “Hey, you’re an outside sales rep. You’re killing it. You’ve been doing great for us for 10 years. But by the way, to cut budgets, we actually need you to come into the office and be an inside sales rep for four to six hours a week.” And so I called that the pencil sharpener position. Now all of a sudden, instead of having complete autonomy, showing up once a week to report sales, I felt like I was literally sharpening pencils.

And it just triggered in my brain that, “Wait a minute, I don’t work for myself. I’m not completely autonomous. I got to do my own thing.” And it was a blessing in disguise because I started on a heavy journey to find my next path. And because I’d had a rental and done a rehab, I knew a little bit about real estate. Fortunately, I knew I needed to get on that path. So, I started taking friends out to lunch, started asking questions. Cody Hofhine and I were close friends. We stayed in touch because he and I worked together years prior. And I said, what are you doing, man? He says, “I’m doing wholesaling in real estate and it’s working great.” And that was my introduction and kind of the beginning of the journey.

David Richter:

Awesome. I love knowing how people got into it. And how about now, you’ve been in real estate now for years, what keeps you in real estate?

Mark Stubler:

Oh my heck, it’s such a journey, man. To be honest, real estate to me is really just a really fantastic industry. I just feel fortunate to found it in the sense that, I mean, what industry can produce the type of income without having the requirement to have brick and mortar, you don’t have to hire a bunch of pimple faced teenagers, you don’t have to have a ton of overhead, you don’t even have to have an inventory, a bunch of stuff that you have to buy and try to sell. It’s just unique. And then to be able to do a transaction that could be 20, 30, $100,000 or more if we’re talking a multifamily or commercial or development. I mean, it’s just wild. So, I guess it’s the return. It’s not an easy industry, but it’s simple. And you apply the simple principles consistently, you can yield some incredible returns on a fair amount of effort. And I don’t know of an industry that can yield that type of return relative to the contribution.

David Richter:

Awesome. Now, I love that. Real estate is such a great game. And then what you said before about there’s so many exit strategies too, it’s like there’s so many options and opportunities. It’s like, yes, you need to stay in your lane, but you get to pick a lane because it’s a very wide road there on the real estate journey where you can have … there’s enough for everyone to do something and to help people and to go out there.

Mark Stubler:

Well said.

David Richter:

That’s the real estate side. Let’s get to the business side of things, because if you want to be in real estate for years and years and be successful, you have to learn some business principles and abide by them. But I want to ask you first, maybe you’re the first one, but have you had any money struggles in your business as you have grown your businesses and branched out and done those things?

Mark Stubler:

We all have business struggle, or financial struggles and cash needs and I feel the pinch for sure. Because even when things are going great, you can leverage and tie up your cash, and before you know it, you’re still feeling the pinch even though you’re doing pretty well. But you have to have that because it makes you appreciate the profits that you are making and it makes you appreciate the grind. So yes, the day in the life of what we do with the several exit strategies we have is a lot of our cash is tied up, tied up in a rehab, tied up in investment on a bigger project. You never really feel overly a fluid as it comes to cash, but I am a pretty conservative guide. I like to take risk when it’s calculated, but I’m pretty conservative in terms of I like to keep a healthy number in the account so that at least I feel like I’m in control. So I feel like I can write a check for something if I need to. It’s finding that balance at the same time.

David Richter:

Yeah. Man, that’s good stuff, because it is. There’s a huge difference between being profitable, I love what you were saying there. We could be doing good, but our cash is all tied up and I feel like, “What’s going on here?” So, there’s a big difference between your profit and what cash is in the bank. So, don’t always trust those numbers. Here we go. With your struggles, how did you get past some of those or what systems do you have in place now to make sure that you’re making that risk as less as possible for running out of the cash?

Mark Stubler:

So, a couple things that we’ve done and this may not be overly orthodox, but obviously we do whatever we can to leverage other people’s money as often as we can at the best rates possible. So, we do that and we always want to have a baseline relative to the amount of projects we have going on so that we have buying power when we need it. But one ninja trick that we’ve used, and I can tell you, this is not going to be overly typical or it’s a variation of other people’s techniques, but we’ve actually paid for property without having a lean position on it. Meaning we don’t have a lender on it. And we paid, we own a rental that’s collecting whatever per month, small multifamily or a single family. And then we’ll put a line of credit on it. Generally, banks because it’s a non-owner occupied.

Don’t want to … Home equity line of credit more or less. It’s a little different because it’s not owner occupied, and we’ll leverage it. Meaning, we’re 100% cash flow positive on everybody. We’re tying up cash, that’s the an orthodox part that people are going to be like, “I don’t know if I like this strategy.” But I like it because I feel like I’m double dipping the chip. I’m able when I’m not leveraging the funds and I don’t need the cash, I’m not paying any interest at all on that property. And the rent that I’m collecting each month go straight to the bottom line. There’s no debt affixed to the property. But I can leverage up to 60, 70% of the property. So, if that property’s worth 500,000, I might be able to leverage 350 at the drop of a hat.

It’s totally liquid, and I can put it into something for two months, three months, a year, whatever I want. Sure. Then I’m paying interest at a little bit higher rate than you would if it was a fixed mortgage, not much higher. So, I feel like I have the autonomy, the flexibility, leverage it, but at the same time, there’s plenty of times when I’m in a cycle where I might not need the money for a month or two or three. And I like being able to draw small quantities, large quantities. Anyway, that’s an ninja trick that we leverage to have as much cash as we have, can have accessible, but not necessarily be committed to it in a fixed payment.

David Richter:

Okay. That makes sense. So, on this show too it’s all about the Profit First REI Podcast, have you incorporated, or anything with the Profit first system as far as like different bank accounts or are you able to see at the drop of a hat like, “Okay, this is how much money we have and I know we could spend this or whatnot too,” because that’s where a lot of people come and say, “Oh yeah, now we’ve got a good system to be able to see where that money’s going at any time.”

Mark Stubler:

Yeah. That’s obviously the most fundamental aspect of it is I think we get ambitious to, all right, I’m going to scale, I’m going to grow, I’m going to double down on this efforts, I’m going to put more into marketing. But at the end of the day, if you’re not paying yourself, if you’re not realizing profits, you’re looking at it backwards in the sense that you’re not really experiencing success if you’re not able to pay yourself. It doesn’t have to be a killer amount, it just needs to be modest, it needs to represent growth, and again, profit. So, I’ve found that multiple bank accounts that are dedicated, you have the tax, you have owners pay, you have some of these things that are set aside so that you’re in a position where you’re not surprised, but yet it’s very clear, calculated the way to know where I’m actually at as a result, where am I actually at when I’m talking cash? How much do I actually have?

David Richter:

Right. Exactly. What’s yours versus what is other people’s. So yeah, I love that, which as I was reading your bio, and as the questions that I love reading those things of everyone what they send over, but you seem to have a corner on the market on how do you take a business and franchise it as well too? Because if you’re going to franchise a business, you better as heck know your numbers and know to a T because that can get very tedious and very much, you could go down a slippery slope there if you don’t know it. So, can you talk about that a little bit, the franchise model and how you can turn a successful business into a successful franchise?

Mark Stubler:

Yeah. It’s been the most rewarding and challenging experience as a business owner that I’ve been ever had. And one of the most challenging experiences. So we started Joe Homebuyer franchise, which is a home buying franchise almost two and a half years ago. And you’re exactly right, we have franchisees that have a lot of I would say money background or finance background, and we have others that are very fairly elementary with their experience. That’s okay. And so we have to have a pretty systematic way of helping them utilize these principles that are going to set them up for success and making sure that they leverage even the most fundamental things like, “Hey, we’re going to track your expenses. We’re going to track your profitability. There’s going to be metrics that are going to be meaningful to you so that you can drive the bottom line and be as healthy as possible.”

And so that’s a fun aspect of the business for them to realize their profits, to help them recognize what’s going to help them get to revenue as quickly as possible and maintain and keep as much of it is as they can as well. So yes, in implementing systems is simple as like, do you have a bookkeeper and helping them plug into a system to track those things, very elementary, but can have just instrumental impact on their business if it started from the beginning that way.

David Richter:

Right. Yeah. That’s really good. I’m sure you see all types of owners, all types of different people, how they handle the business. And what would you say with the franchise model, what provides the most value to that end person that’s purchasing a franchise to be able to go out there and be successful?

Mark Stubler:

David, I appreciate the question. We have some franchisees that are already successful wholesalers and they just were ready to scale their business to the next level. And they were doing lots of deals, but now they just … What do I need to do to become you in my market? I want to do more deals. I want to be more profitable. I want to scale my business. And then we have others that didn’t do anything with real estate, but they wanted to get into real estate because they wanted to have rentals and passive income. So, every franchisee, I can tell you that there’s just some common themes. A lot of people like the culture, the community, the mastermind behind it. Others like the resources. We’re really big on the art of negotiation and the acquisition, how to acquire properties at a deeply discounted rate.

And what are the best processes to structure deals with sellers. And a lot of acquisition related and negotiation specific type support and training. And then it’s how do I maximize my profits on the back end, the disposition process? Do I rehab this one, do I wholesale it? And various things. How do I build out a plan for the next five years to become financially independent by keeping rentals? That’s what the franchise model is, is a turnkey system to leverage our experience, our team, and the collective group that we’ve put together, this guy can help you build out a plan for … create a finance structure with the sales you’re working with and that type of thing. So, every franchisees, if you talk to 30 of them, you’d probably get 20 or 30 different answers as to my favorite part of the franchise is this. But I can tell you, it’s been a rewarding experience to see our franchisees thrive and grow their businesses.

David Richter:

That’s awesome. Sounds like it’s a great way for, like you said, community, for structure, for system, for negotiation, for knowing what’s important, the numbers and making sure they are actually profitable at the end of the day-

Mark Stubler:

That’s right.

David Richter:

… and knowing those things as well too. That’s awesome. I think that provided a lot of value to the listeners here. And if you’re looking for something like that, make sure to reach out to Joe, we’ll make sure Joe at the end, that there’s a way that people can reach out to you. But we’re going to like take it a little different direction here now. I’m going to get a little bit personal if you’re okay with this.

Mark Stubler:

Absolutely.

David Richter:

I want to see what early lessons did you learn about money and how does that compare to how you think about money today?

Mark Stubler:

I might go a little different direction with this, but for me, I have to be honest, when I started making a decent amount of money, I have this mental block, maybe it was a confidence thing where I wondered if I was one that was supposed to … Is there some bigger law out there that says, “Mark, you’re not going to be wealthy. That’s not just the plan I have for you.” And it took me some time to realize, and again, I’ll try to be sensitive to the listeners, I adopted this idea that I actually believe that we’re all entitled to becoming the best versions of ourselves. And a lot of times that translates to financial independence, there is a greater law, being, whatever you call it, a God that actually has interest in you thriving, not just surviving, but thriving.

And it took me a minute to get there, both the self confidence and reminding myself that prosperity is available to all of us, and prosperity comes in different forms. We all know that. I’m a father of four and a husband of 18 years. And so I feel like I’m prospering. But there was a time that I was like, “Man, am I supposed to be wealthy? Am I supposed to accomplish these great things?” And at the end of the day, I’m here to tell you that I’m a pretty average dude. You’re going to find that even on this presentation on this podcast, I don’t know that I have a silver tongue.

I do work incredibly hard. I’m really disciplined, but at the end of the day, I’m a pretty average dude that feels grateful to say that I’ve been able to prosper in some areas and I think that’s available. In fact, I’m confident it’s available to all of us, but it does require the disciplines and the hard work to achieve it. That was my biggest roadblock I had to overcome is, “was this an opportunity for me?” Am I being afforded the opportunity to be prosperous and develop these wealth strategies and be fortunate enough to have those.

David Richter:

Man, you just hit on what I believe most real estate investors that get into this game struggle with, because they come from, they read Rich Dad Poor Dad, or they read a book or they have a mentor, they have a good person, a friend that helps them get into real state-

Mark Stubler:

That’s right.

David Richter:

… and they come from a background of maybe they make good money, but in real estate you could do a 20, $30,000 on one deal. It’s like-

Mark Stubler:

One deal.

David Richter:

“Holy crud. I just did.” If you do two of those deals in a month, like beginners luck here and you get two deals, like right away, it’s like, “I just made as much as I made in a year or whatnot,” for some people.

Mark Stubler:

Right. Right.

David Richter:

They’re like, “I’ve never made this much money before.” And then that’s when those feelings start coming in. They feel, “Am I worthy?”

Mark Stubler:

Crazy.

David Richter:

“Do I need to do this?”

Mark Stubler:

That’s right.

David Richter:

Man, I love that you bring that up because there’s so many people that feel like that I talk to. Man, I’ve already had 100 calls this year just with investors that are in that mind space of, “I’ve never made this much money, I don’t know what to do with it. Just help me know, is it okay that I take money out of my business? I’ve never taken out $20,000 for myself in a month. Is that okay?”

Mark Stubler:

Is that okay? Yeah.

David Richter:

It’s like giving them that permission. So, that was really great. You did say you’re a father of four, I do need to ask, what lessons about money do you want to pass on to your children?

Mark Stubler:

Thank you for asking that. I actually have an 18 year old son, three daughters after him. He’s kind of at the later stages. And I have to be honest, in some ways I feel like I’ve failed him. He’s had to earn his own money. I’ve made it pretty hard. My kids think I’m poor in a lot of ways. So, maybe that’s the one inherent principle I’ve succeeded at. Not that they think I’m poor because we have some nice things, we go on some nice vacations, it drives them nuts that they have to buy their own shoes. And it drives them nuts that they have to earn everything. And they’re just like, “Well, why don’t you just pay for it?” Type thing. And we have a good relationship, but we have a friendly banter about it.

But with my 18 year old, I’m realizing, “Hey, you’re going to the real world.” So recently, in fact, a day or two ago, I’m like, “No, I want you to get on Google Sheets. I want you to create a financial plan. I want you to look at what you’re bringing in. I want to look at what you’re saving.” Again, don’t know that I’ve done anything perfect, but I’m realizing at least with him, I’m a little behind the eight ball. I’ve got to put some more things on his plate so that he can have those tools, evaluate, and hopefully, be a little bit better prepared as he takes on the chapter of his life. But such a important thing to do. So, do better than I’ve done, those that are observing and listening because it’s important.

David Richter:

I would say, I just want to give a little bit maybe of advice right to you. I think you’re already providing a good example for them of where you are. That’s the biggest thing you can and give them. You can talk to you’re blue in the face, but if you’re showing them hard work, that discipline, you’re showing them, “You have to, you have to buy this stuff.” And you’re guiding them on that path. I think that you’ve been married, you said 18 years, right?

Mark Stubler:

That’s right. 19 in June.

David Richter:

  1. See, it’s stuff like this that they’re really looking at. That’s where I’m like, if you’re listening to this now as a listener, or Mark right here, it’s like, “That’s what they’re really looking for.” So I feel like you’ve already … Just the fact that you’re on here talking about like, “I had to go through some growth pains in myself as I was growing, because I never made this money before.” This stuff, that’s the stuff that they’re seeing, that they’re like, “Okay,” even if they don’t see it specifically behind the scenes at your real estate company, we bring all this stuff to every conversation with who we are. So, I just think-

Mark Stubler:

Well said. Thank you.

David Richter:

I think you’re doing … Yeah, don’t beat yourself up too, I think you’re doing well with what you’re doing there, and it sounds like your kids have a great example. And being married for 18 years, I mean, that really solidifies a lot of things with them as well too.

Mark Stubler:

Yeah. Thank you.

David Richter:

That’s stability. Awesome. We’re going to wrap up here pretty soon. I just want to know a couple other things. Let’s go to the business side. That was kind of the personal side, let’s go back to business. In your business, what would you say is the biggest challenge when it comes to the finances in your business? Is it still the cash flow of, I’ve got a lot of money tied up would you say? Or now at a different stage, years down the road, do you see different challenges?

Mark Stubler:

Well, I can tell you knowing your numbers is super important. I’m technical in a sense, I like to know my numbers, I like to know profitability. I like to know net. But I can also tell you that I’m better at hiring somebody to know those numbers for me. Because there’s somebody that’s better, there’s somebody that pays attention to the detail. The one thing that I would share with you that I have observed from myself and learned recently, it’s just so important to know your numbers, and learn how to read your P&L and understand it. And when I say that, I’m challenging myself to continue my journey with understanding it and really appreciating the details there. But as I’ve learned to really understand my numbers better, profitability, and really I’ve been focused so many years.

David, you might appreciate this and some of the listeners, I was so focused on top line and how set that sounds and how big my business is and how much revenue I’m pulling in. It just doesn’t matter. End of the day, top line means nothing if … I mean, there was years we had some pretty sexy top line, but the net, we just kept on adding personnel. Our labor efficiency was going down, our net profit was going down, but yet our gross rev, our sexy top line looked attractive. And that’s the wrong way to look at the profit ability in your company. That’s one major lesson I’ve learned.

David Richter:

No, that’s good stuff right there, because that’s what this podcast is all about. I don’t care how much you make, I care how much you keep. At the end of the day, that’s really what it’s about. It can sound sexy to say, “I have a seven figure business,” but if you’re seven figures in debt after that year two, it’s like, “What’s going on? I think I spend a little too much.” No, what a great thing to bring to the listeners as well too because it is, is we’ve all heard that cash is king, that net is what really matters and it’s like the top line. What is that? Revenue is vanity, profit is sanity. That’s really what we are.

Mark Stubler:

That’s right.

David Richter:

That’s really what it’s all about. Here we go, just a couple last questions here. What advice would you give to the real estate investing community? This doesn’t have to be financial related. It can be anything on your journey that you’ve taken down your path.

Mark Stubler:

Well, and you just said, one of the words I’d use here is enjoy the journey. I will tell you that the thing I share with anybody any chance I get is that I believe that part of what helped me overcome the psychology of money, and am I worthy of this wealth or this opportunity type thing is developing myself as a leader. And that’s an ongoing journey, meaning that I’m continually studying what does it mean to be a good leader? What does it mean to build a good organization and to bring and establish a team of other great leaders and develop leaders within them. And I have to tell you that the more I’ve developed personally and focused specifically on leadership, that would be my advice. That has been, I believe, a catalyst to the success that I’ve experienced. I have a great mentor. The other thing I’d quickly share is I have a great mentor that I work with regularly. He’s not just a very financially successful person.

This is a person that his family’s successful. He’s successful as a husband, as a father, he’s posterity, he’s almost 80 now, but I meet with him regularly. Has just an incredible history of success in business and family and community and his involvement in so many different notable causes. But surrounding yourself with people that inspire you to be the best version of yourself, that’s another one. And I think that compliments well this idea of this journey of developing as a leader. As I’ve done those type of things, I see the world differently, I focus on the right things and I’m able to enjoy the entire process and realize … because I’m a pretty imp person, David, I want results, I want them now. And I think that’s part of what makes me good. But at the same time, as I realize, “No, this is all part of me developing as an individual and becoming better and well rounded.” A better husband, better father, better contributor. All of those things helped me enjoy the journey and made everything more meaningful.

David Richter:

Awesome. There you go, enjoy the journey. That’s definitely a big one, because it’s easy to get wrapped up in the day to day and just being yourself up. And it’s like, “No, this is it.” This is the journey that you’re going through right now. So, great stuff. Mark, you provided a ton of value here and I just want to always give back to the person that’s given to our audience. So, how can people get in touch with you? What are you working on right now? And I just want to make sure that we can connect you with the listeners.

Mark Stubler:

Thank you so much, David. I would love to connect with any of you. You can reach me on LinkedIn. It’s Mark Stubler. And then if anybody was attracted to this because they’re in investing, they want to scale their investing business, they want to buy more single family or small multifamily or focus in real estate, which is obviously what you listeners do, and you like the idea of a franchise model being part of a community where you plug into a turnkey system. That’s what Joe Homebuyer is. You can find us at joehomebuyerfranchising.com, joehomebuyerfranchising.com. I would love to connect with people, just talk ideas, love the community of investors and find some common things to hang out and talk about.

David Richter:

Awesome. Well, there you go, that’s how you can find him. We’ll make sure to put that in the show notes as well too. So I just want to recap. So, we talked about some awesome stuff on this episode. I mean, we talked about growing and scaling the business, growing it profitably, what to do when your cash is tied up. And I love this, the one top line versus net, revenue is vanity profit is sanity. Enjoy the journey. And then those mental blocks of wealth. I mean, if you can go back to that space in the middle of that episode and how he got out of that, he gave us the answer at the end, which I thought was coming full circle there, is prepare to be that leader, study, grow yourself, get out of that mind trap that you’ve laid for yourself. I thought that was great. This was a great episode. If you are a real estate investor or business owner and you want to double cash, profit and keep more of your profit, head over to Simplecfosolutions.com and click the get started button. Remember, start making profit a habit.

Thank you so much for listening to today’s show. If you found this episode valuable, could you do me a quick favor? Could you give us an honest rating within iTunes? And be honest, you could say whether you liked it or not. And obviously, with iTunes, the more reviews and ratings we have, the better it is for other people that are searching for The Profit First Podcast. So, we’d love to be ranked on there and that’s thanks to your help. We would really appreciate that if you would like to go give us a rating. Also, if you’re looking to connect with us further, I would highly recommend checking out our Facebook group, Profit First for Real Estate Investors, and that’s literally what it’s called. So you can type in Profit First for Real Estate Investors, and you’ll be able to find our Facebook group right there.

So come join active, real state investors who are supporting each other and growing their businesses and profits together. That’s what that group is all about. The links should be in the description below. And if you’re interested in working with us in implementing profit first in your real estate business, we offer coaching and guidance. So if you want to work with someone who’s actually Profit First certified and who works right now currently with real estate businesses, you can actually go start your application process by going to simplecfo.wpengine.com/apply. Or just go right to simplecfo.wpengine.com, and there’s an apply button right on there if you want to actually start your Profit First journey with someone who can actually walk you through those step by step, and help you know and grow your cash flow. Thanks again for joining us for another episode of The Profit First REI Podcast. See you next episode.

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.