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How this real estate investor Kaitlyn Phillips ultimately achieved success by applying Profit First

Episode 154: How this real estate investor Kaitlyn Phillips ultimately achieved success by applying Profit First.

The Profit First REI Podcast

February 9, 2023

David Richter 

Summary:

 

In the world of real estate investing, a background in accounting or finance can be a great asset. Our guest today proves that success in the industry can be achieved even without it. 

 

Kaitlyn Phillips is an active real estate investor of Property Strides, rehabilitating houses in Utah with her husband. She and her husband have managed to grow their company into a full-time operation over the course of five years. In this episode, Phillips shares the story of their journey, including the challenges they faced, applying Profit First, and how they ultimately achieved success.

 

Whether you’re just starting out in real estate investing as a side hustle or are already well-established, Kaitlyn’s story is sure to inspire. Don’t miss this episode!

 

Key Takeaways:
[00:47] Introducing Kaitlyn Phillips and Her Background

[03:16] On Achieving Success That Allowed Her Husband to Retire and Become an Investor Full-Time

[05:36] On Implementing Profit First

[11:03] The Effect of Applying Profit First to Their Business

[15:56] On Applying the Profit First Method

[21:10] What Kaitlyn Would Do Differently if She Started Their Business Again

[23:18] Connect With Kaitlyn

 

Quotes:

[11:27] “It’s been way easier to just be able to…log on to the bank account and be like, ‘Okay…there’s enough to do that rehab, and there’s enough to pay the taxes. [Profit First] just makes it really clear-cut.

[17:04] “When he dragged me to that seminar, and I listened to them speaking, I was like, ‘this makes so much sense…Why not make your money make money for you?’”

[21:44] “ Start taking action, and don’t wait to know everything before you start doing things. Because…we wouldn’t even be started yet if I was waiting to know everything.”

Connect with Kaitlyn 

 

Facebook: https://www.facebook.com/kaitlyn.phillips.180
Property Strides Facebook: https://www.facebook.com/propertystrides

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 



Transcription:



Kaitlyn Phillips:

<affirmative> when he dragged me to that seminar and I listened to them speaking. I was like, this makes so much sense. Like why not make your money make money for you?

David Richter:

Yeah.

 Kaitlyn Phillips:

And this seems like a way to be a good steward of what we have. And you can do it if you put the work in.

Outro:

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.

David Richter:

We have Caitlin Phillips here who is an active real estate investor who does not have a background in finance accounting, neither does her husband, but they’re both active in real estate and was, she was able to retire her husband this year and bring him home from his W2 job and now he’s in the real estate world and they are loving it. They’re gonna tell their story, the struggles they faced, the also giving you hope for no matter where you are. Implementing something like this can help get you to where you want to be. So just listen to their story. Listen to how she was able to stop making this, just feel like a side hustle and feel like something that was actually benefiting her as a real business. This is what I want for you. She gives you a lot of hope from wherever you might be to where you want to be. Thank you so much for listening. This podcast wouldn’t be where it is without you. Thank you for making us one of the top rated real estate investing podcasts out there. I want you to have hope for your financial future. Thank you so much, and enjoy the episode.

Hey everyone, I’m super excited about this one cuz it’s Caitlin Phillips. She had me on with a book club that where she was actually reading Profit First for real estate investing with other investors, which was amazing. She’s getting that out there as well. But I wanted, Caitlin, thank you so much for being on the show today.

 Kaitlyn Phillips:

Yeah, thank you for having me. I’m happy to be here.

David Richter:

Yeah. Well this is awesome because I wanna make sure that more people have hope in the real estate investing industry, that they don’t have to be living deal to deal in the rat race. So let’s just dive into it a little bit. Tell a little bit where you are right now. Like what are you doing in the real estate world? What are you a part of? Like, just give a little bit of that, that background.

 Kaitlyn Phillips:

Yeah. Um, my husband and I rehab houses in Utah. Um, we just started with like no knowledge about five years ago and just have been learning and taking action. Um, we were, we started with one deal at a time. Currently we have four flips

David Richter:

Awesome.

 Kaitlyn Phillips:

Going right now. Um, so we’ve grown quite a bit. Um, and he just recently stepped away from his day job to come join me full-time in the rehab business.

David Richter:

Wow. That’s a big milestone right? Was something you’ve been working for over the last five years.

 Kaitlyn Phillips:

Yeah. It happened sooner than we anticipated. <laugh>

David Richter:

awesome.

 Kaitlyn Phillips:

But yeah, that was kind of our end goal. And now we need a new end goal. <laugh>.

David Richter:

I was gonna say, you need a new end goal now that is awesome. So what helped? Well, okay, what’s that story? How did, how were you a, what was the goal originally and how much did you beat that by and what, what were catalysts there? Like? Okay, I’m just gonna ask the point of questions here that probably everyone’s asking. Like, how did you do this, Caitlin? How did you retire your husband to come work in the business with you?

 Kaitlyn Phillips:

Yeah, so when we first, uh, were interested in getting into real estate investing, we kind of had two motivators there. Like, one was, um, retirement. My husband’s job did not offer very good retirement options

David Richter:

mm-hmm. <affirmative>.

 Kaitlyn Phillips:

So we were kind of looking ahead to that, like how can we set ourselves up? And then, um, we were also looking for a way to fund adoptions. Our kids are adopted and I didn’t wanna be working a full-time job, so it was kind of hard to be able to fund that off of one income.

David Richter:

Yeah.

 Kaitlyn Phillips:

Um, so that’s kind of what drew us to it. And as we, um, connected with other investors and mentors, uh, we kind of opened up our eyes to bigger things. And we had originally thought and realized that we could have a little bit of time freedom and money freedom as we went down this road some more and realized that him leaving his day job to work in our business would be a really cool change to our family

David Richter:

yeah

 Kaitlyn Phillips:

That we were doing. And so we decided to pursue that. Um, and uh, we last year we’d talked about if we could profit in our real estate business as much as he was bringing home from his W2 job, um, then we would feel comfortable making that leap. And in April of this year, we had a conversation and realized we’d already hit that dollar

David Richter:

awesome.

 Kaitlyn Phillips:

In April. And so we said, okay, let’s make the leap. Let’s do it. So now we work together.

David Richter:

That’s cool,

 Kaitlyn Phillips:

yeah<laugh>.

David Richter:

That is so cool. I love hearing people’s stories and why they got into real estate or why they have the goals that they do. Sound like you guys are amazing people funding your adoptions, you know, the getting your husband to be able to work with you, you know, some people would rather no, you just stay over there

 Kaitlyn Phillips:

<laugh>

David Richter:

In your job. So that’s great. I absolutely love that. Um, oh man, there’s a lot we could go there. But then I wanted to ask you too, let’s just dive into, since it’s a private first for Real Estate Investors podcast, what got you excited about the Profit first message?

 Kaitlyn Phillips:

Um, I really liked that it was a system for our finances because I realized as we were trying to turn our side hustle into a business that we needed systems and it couldn’t just all exist up in my head because if it only existed in my head, I was gonna keep doing it all by myself.

David Richter:

wow

 Kaitlyn Phillips:

And that was gonna keep us from growing.

David Richter:

Yeah.

 Kaitlyn Phillips:

Um, and we wanted to grow, so we needed to have a good system in place.

David Richter:

Had you heard of any other systems for the financials or had you ever gotten any training in the business financials before?

 Kaitlyn Phillips:

Um, no. I <laugh> I actually almost like no business training at all. <laugh>.

David Richter:

Yeah.

 Kaitlyn Phillips:

So I’m like loading as I go. Um, but it was a system that was recommended by, um, some in our mastermind group were part of a real estate mastermind group and so they had recommended using Profit First and I’d heard it mentioned here and there at different meetings. So I thought, you know, I’m going to, I’m gonna start reading that book. And then I heard, uh, some other people in my group wanted to read it as well and one of ’em just kind of offhandedly said like, well you should start a book club.

David Richter:

hmm-mm

 Kaitlyn Phillips:

And I was like, I should <laugh>.

David Richter:

Yeah.

 Kaitlyn Phillips:

So I just put it out there to our whole group and said, I’m gonna be reading this book, here’s the schedule I’m gonna be following. You guys can meet with me if you want. And we had quite a handful of people who were interested in it as well.

David Richter:

Yeah.

 Kaitlyn Phillips:

That joined us.

David Richter:

No, that’s awesome. So that was this year then that you got a hold of the book and started reading and started implementing.

 Kaitlyn Phillips:

Yeah. I believe it was like in May

David Richter:

Okay

 Kaitlyn Phillips:

When we started reading and implementing.

David Richter:

So May of 22. I’m just taking some notes here because I want to ask what was life like for the last four or five years in real estate investing then? How would you say not having the system up until this point? Like, can you tell me a little bit of how that was going?

 Kaitlyn Phillips:

Um, well I didn’t take home any paycheck.

David Richter:

Okay

 Kaitlyn Phillips:

I didn’t pay myself at all. Um, we were just like, we would do a deal and then all of the money would go back into the business. Every now and then we’d be like, well let’s take a thousand dollars to do this or to do that.

David Richter:

Yeah.

 Kaitlyn Phillips:

Um, but it was really like, it wasn’t something that I was getting paid for. So I don’t know, maybe it was a really time consuming hobby or something.

David Richter:

Right. Yeah.

 Kaitlyn Phillips:

Um, But when we realized like, oh, we’re gonna do this as a way to earn money and support our family, like we couldn’t just keep putting all the money back into the business. We had to have a system for paying ourselves.

David Richter:

Right, exactly. And it sounds like especially this year, if you’re gonna bring your husband home and put ’em to work in the real estate business that you needed to have a system there. So then I guess during that time, was your husband’s income enough to support the family while you were able to do the real estate? Like you didn’t have to rely on the real estate investing, you know, to bring everything in?

 Kaitlyn Phillips:

Yeah. He was bringing enough to support us. Uh, you know, sometimes we’d take some money from the real estate

David Richter:

yeah

 Kaitlyn Phillips:

For like bonus things <laugh>.

David Richter:

Sure. Yeah.

 Kaitlyn Phillips:

But yeah, like we were cared for financially.

David Richter:

Okay. Because that’s where I feel a lot of people are. You know, they’re either, they used still have the W2 job and then they’re like in real estate, but then, you know, taking that leap. So then this year you were able to, how did you figure out in April that you were, you know, profitable enough to bring your husband on full-time?

 Kaitlyn Phillips:

Uh, well we had just finished two flips

David Richter:

mm-hmm. <affirmative>,

 Kaitlyn Phillips:

And we looked at the profit numbers from our flips and said, oh, these two flips equal your annual income

David Richter:

Wow.

 Kaitlyn Phillips:

That you did at your job. So we know we have more flips on the horizon. Um, so we felt like it was time to make that leap.

David Richter:

Awesome. So then you read the book in around May and

 Kaitlyn Phillips:

mm-hmm. <affirmative>,

David Richter:

What do you, I guess since then, since May, what have you started setting up? Have you started setting up stuff? I’m putting you on the spot here.

 Kaitlyn Phillips:

yeah,<laugh>

David Richter:

So like what have you, what have you started to implement of the Profit First system?

 Kaitlyn Phillips:

Um, so we implemented per chapter

David Richter:

uhhuh.

 Kaitlyn Phillips:

So we read a chapter per week, and then we would go implement that chapter. Um, and some of the stuff, you know, like in the rehab world, like you don’t have money coming into your business every week or

David Richter:

Right. Yeah.

 Kaitlyn Phillips:

You know, it’s a little bit more like, oh, and here’s a chunk.

David Richter:

Right.

 Kaitlyn Phillips:

Um, but like we went to the bank and we set up our bank accounts and we put the percentages and the title of the bank accounts so that we could remember how much goes where. And just got us all set up to follow that system. We communicated with each other about it, this is what we’re gonna do.

David Richter:

Yeah.

 Kaitlyn Phillips:

We were both on the same page. We don’t have a team yet, so

David Richter:

Yeah.

 Kaitlyn Phillips:

It didn’t take a lot of implementation to involve the whole team since there’s two of us.

David Richter:

Right. Yeah. Well that’s good. But it sounds like he was on board too with it.

 Kaitlyn Phillips:

Mm-hmm. <affirmative>.

David Richter:

So at least your, at least your business partner was on board with

 Kaitlyn Phillips:

<laugh>

David Richter:

With this, your husband slash business partner there was on board

 Kaitlyn Phillips:

yeah

David Richter:

With implementing. Well that’s great. Well then how has it felt being on the system now that he’s being, having to be fully support or you guys, your household having to be fully supported by the business? Has having Profit first implemented helped at all?

 Kaitlyn Phillips:

Yeah, it’s like I’ve always been the one who like looks at the financials and budgets

David Richter:

mm-hmm. <affirmative>

 Kaitlyn Phillips:

And you know, I just kinda always have it up in my head, but it’s been way easier to just be able to like log onto the bank account and be like, okay, this is how much there, there’s enough to do that rehab and there’s enough to pay the taxes. And

David Richter:

yeah,

 Kaitlyn Phillips:

It just makes it really clear cut and you don’t have to think through like, okay, what was I going to use that $20,000 for? And is that $10,000 earmarked for something?

David Richter:

Yeah.

 Kaitlyn Phillips:

Because it’s already all labeled in its correct buckets.

David Richter:

Awesome. Now you don’t have to tell me the amount, but have you been able with the system to pay yourselves enough on a monthly basis or when the, when the money comes in and you’re transferring it to be able to replace what he was bringing home up to this point?

 Kaitlyn Phillips:

Yeah, we have been running payroll and

David Richter:

Wow.

 Kaitlyn Phillips:

See outta our business account. Yep,

David Richter:

Yep. I love that because it sounds like you were going to take the leap anyway even before you read the book then I’m wondering if once you read the book, did that give you any more peace of mind about the decisions that you were making, you know, around him coming to help full-time and around, you know, actually having financial literacy or financial control or freedom inside of the business?

 Kaitlyn Phillips:

It gave me, like confidence that we would have a system in place

David Richter:

okay

 Kaitlyn Phillips:

That would be

David Richter:

well-communicated.

 Kaitlyn Phillips:

Um, yeah, because a lot of my worry at bringing my husband into the business was like, how do I share this business that right now I’ve been doing myself and it’s been

David Richter:

yeah

 Kaitlyn Phillips:

Up in my head and it was just a clear cut way of this is how we’re doing the finances and everybody can see it on paper. You can log on. I can log on. Yeah. Um, and there’s transparency there.

David Richter:

So I have to ask then too, does he have a finance background or is he more inclined, you know, like does he have a, anything like that? Because you said that like no, you jumped into it, you don’t have the finance background business or anything. It’s like you’re learning area from different systems or you know, masterminds or people. What about him on his side?

 Kaitlyn Phillips:

Uh, It’s the same. We both come from, we are both school teachers and he was a That’s

David Richter:

awesome

 Kaitlyn Phillips:

Administrator. So we come from an education background, but neither of us have like business or finance background

David Richter:

<laugh>

 Kaitlyn Phillips:

So we’re learning as we go.

David Richter:

That’s, I honestly, I was hoping you would say something like that, even if you did. I could have taken it a different direction, but that just, I hope if you’re listening right now, if you’re listening to what Caitlin is saying, neither of them had financial backgrounds. They’re school teachers. They’re school teachers. That was my background too. You know, why I went to college for secondary education and that’s what I went to college for and got to use it a little bit, but then jumped in here. So it’s, no matter where you are right now, you could have a financial background or you could be like Caitlin and her husband wear no financial background, schoolteacher background and still be successful with your money. I guarantee that. Caitlin and what’s your husband’s name? So I could stop referring to him

 Kaitlyn Phillips:

<laugh> as Caitlyn’s husband. Tim.

Tim.

David Richter:

Tim So Caitlin and Tim are out there and they’re probably more successful than a lot of the people you see on Facebook, Instagram, all of that just because of the system that they have in place. Because a lot of people are running around like chickens with their heads cut off saying, I wish I could get my husband or wife home, you know, to be able to do this, but I have no idea if we’re profitable or enough or if we have enough money coming in or like, we have enough a deal flow, but can I actually use that money for, you know, for what they need and for what our house needs. So thank you. I was hoping he didn’t have that background self selfishly for that answer,

 Kaitlyn Phillips:

<laugh>

David Richter:

But that was No, that’s really good because now you can get on the same page at any point. And I really like so, okay, so school teacher background was that was he was doing in, you know, last year or like was that his job that he came from?

 Kaitlyn Phillips:

He was an assistant principal most recently.

David Richter:

Okay. So an assistant principal. So then he came out of there and wanted to help you. So what you, if I just wanna see if I’m interpreting this right. You started the business or the real estate business to create the wealth of freedom and fund adoptions. That’s one of the big things that I heard as well too. So was that what started, you know, going down this path? Because coming from the teacher background, I’ve known a lot of teachers that have jumped in the real estate space and who have done well and now like guess what, they’re teaching other people. They’re on podcasts or they’re a book club and like, how can we get this information out? So would you say that was, you know, the catalyst was to jump into real estate, was the funding, the adoptions and then you wanted him to come on board as well too because there wasn’t the good retirement and all of that with where he was currently and you know, just basically saying, I wanna, we want control of our own destiny or like, was that the real catalyst there?

 Kaitlyn Phillips:

Well, it was actually his idea. <laugh> in the big

David Richter:

Awesome. It gets better and better.

 Kaitlyn Phillips:

Yeah. So he, it was his idea. He dragged me to a seminar and he said, we’re going to this

David Richter:

<laugh>

 Kaitlyn Phillips:

And Oh

David Richter:

That’s great.

 Kaitlyn Phillips:

And I just, we both like to he’s been interested in real estate since he was a teenager and I’ve always been really interested in just being smart with your money.

David Richter:

Yeah.

 Kaitlyn Phillips:

Um, making it work for you somehow, even though I didn’t have any like, official training in it. So when he dragged me to that seminar and I listened to them speaking, I was like, this makes so much sense. Like why not

David Richter:

hmm-mm

 Kaitlyn Phillips:

Make your money make money for you?

David Richter:

Yeah

 Kaitlyn Phillips:

And this seems like a way to be a good steward of what we have and you can do it if you put the work in. So from there I was like, yeah, I’ll take off with this <laugh>, I’ll get it going. Um, and because I was the one with, you know, more flexible time, I did the work in the business for the most part

David Richter:

<laugh>. So he directed to the seminar and then you’ve been running it for the past five years.

 Kaitlyn Phillips:

yeah < laugh>

David Richter:

That’s amazing. I love that. It’s like, hey, it’s got a great idea, but can I help, can you help me with this? It’s like that he already was showing signs of the true entrepreneur there. Like,

 Kaitlyn Phillips:

yeah, <laugh>,

David Richter:

It’s a great idea. Can you help me? So man that is, I love real estate. Isn’t this great? Like now real estate has afforded you to be able to now bring him into the business. You guys are working together, you guys get to be, build something that has the potential to be massive for you down the road. And right now, today, you know, like one deal can be life changing <laugh>. So I love that you guys are in that yolk together, that you’re rowing that same direction now, having that financial system to make sure you’re actually not gonna get burned out. Cuz I don’t know about you, but like in your masterminds and other groups, have you ever seen real estate investors get burned out on the real estate business and you know, like <laugh> that they’re not making or keeping the money that they’re wanting to?

 Kaitlyn Phillips:

Yeah, I think it’s something as entrepreneurs you always have to be aware of, you know,

David Richter:

yes

 Kaitlyn Phillips:

Could always get you, like, you have to be intentional that you don’t let yourself get burnt out or let your business run you instead

David Richter:

yeah

 Kaitlyn Phillips:

Of you run your business.

David Richter:

Why do you think most entrepreneurs get into that place or real estate investors?

 Kaitlyn Phillips:

Oh, that’s a good question. I know like, I have a very, like my personality is pretty fast paced and I like to work hard and I like to get things done

David Richter:

Yeah.

 Kaitlyn Phillips:

And so I think I just kind of get stuck in that cycle of like, let’s just get things done and I’m not worrying about compensation necessarily <laugh>

David Richter:

Sure.

 Kaitlyn Phillips:

But, um, but really if we’re not improving lives including our own, then what’s the point?

David Richter:

<laugh>. Yeah. <laugh>. A lot of people get to that point and then that’s either burnout or breakout, you know, like they either go up or down. So I feel like with you guys, it’s been a good progression and you guys have been on the same, it sounds like you’ve been on the same page too for a long time with this. I don’t wanna dive too much into that, but you know, like, or if you don’t want to, but it sounds like you’ve been on the same page, you’ve been working in the business, you’ve been helping a lot with the real estate side for the past few years and now him coming on board and having those conversations, um, I think that says a lot too as well. Uh, do you see, I don’t know, in the groups that you’re a part of, this is just out of curiosity, do you see the husband, wife situation work well, not work well? You know, like what are some of the struggles that could happen there when working with the spouse?

 Kaitlyn Phillips:

Um, yeah, we have a lot of husband and wife teams in our mastermind group and then we have a lot of people too that are in the mastermind group and their spouse has no interest in the business as well.

David Richter:

Mm-hmm. <affirmative>.

 Kaitlyn Phillips:

And I think really it just comes down to like, as a husband and wife deciding what you guys want. Do you want to work on it together or do you wanna work separately? And it really doesn’t matter what you choose as long as you’re, you’re on board with each and you have the decision made together.

David Richter:

Awesome. Now I love that it’s so many people we see in this space, as long as they get on that same page. It sounds like you guys have been on the same page for a long time, like I’ve mentioned and this is, I love that. Just any help that you can give there. This has been really good. I just have a couple final questions. If you had to start your business over again, your real estate business over again, is there anything that you would do differently?

 Kaitlyn Phillips:

You know, this is a question I’ve asked myself a bit over the last few months.

David Richter:

Okay.

 Kaitlyn Phillips:

And I don’t know that there is anything I would do differently because all the things we did were important. Educational

David Richter:

Yeah

 Kaitlyn Phillips:

Experiences, you know, like the mistakes we made.

David Richter:

Yeah.

 Kaitlyn Phillips:

We needed to learn from, to learn how to do it right. Um, but I think the biggest thing would just be like, start taking action and don’t like wait to know everything before you start doing things. Cause I wouldn’t, we wouldn’t even be started yet if I was waiting to know everything because there’s still so much, I don’t know,<laugh>,

David Richter:

Right, yeah. That is the truth, man. That’s what I see. You, any of one that’s out there doing stuff is doing stuff <laugh>, they’re taking action.

 Kaitlyn Phillips:

Yeah.

David Richter:

So that’s definitely a big part of this and I’m really grateful for you coming on today Kayla, and talking about your profit first journey, implementing the system, being on the same page with your husband. Honestly, talking about all the things there, like why they even feel like they’re living deal to deal or like why they’re in that rat race. You know, we just are so fast sometimes we just want to get things done without worrying like the steps of its actual system. I like how you kept calling it that system, that this is a system for your finances. It just gives you a clear cut outline. Kept saying that over and over again. I’m glad because I felt like in this one you gave hope for anyone too, that if you’re what whomever your background is, zero financial background as a teacher or if you’ve got a crazy one, like there’s still a system out there to help you as the business owner. So that was really good as well too. And then I love that you were able to retire, oh, retire husband from his job to work with you

 Kaitlyn Phillips:

<laugh>.

David Richter:

So like, you were able to retire him, but then put him to work in the business that you’ve been helping to build and you know, really taken off. So I think this is all great stuff. It’s been my privilege to have you on here. The last thing, since you provide a lot of value here and provide that hope to people, where would people want you, would, uh, want to connect with you? Like what are you looking for right now and how can they bring value to you?

 Kaitlyn Phillips:

Yeah, um, I think the biggest thing that we’re looking for right now is, um, more money partners. Anybody interested in being private money lenders? Um, we, we would love to employ an opportunity for people to make money on their money, um, a win-win situation. So, uh, they could reach out probably the easiest ways to find me on Facebook. Caitlin Phillips. Awesome. Um, they could also look up property strides if they can’t find Caitlin Phillips on there. Um, and just take action. If you wanna get into this and you haven’t yet do something, go do something, stop listening to podcasts and go do something

David Richter:

<laugh>. Yeah. Go implement prophet first and

 Kaitlyn Phillips:

yeah <laugh>

David Richter:

Be like Caitlin and Tim so that they, and I can stop calling him, you know,

 Kaitlyn Phillips:

<laugh>

David Richter:

My husband because I think he’s in the background too and can hear me. So I’m sure he loves me at this point. So, Tim, I’m sorry if you can hear me, but that’s where, listen to her, if you can connect with her and do, obviously. I endorse them. They are running non profit first. They’re gonna handle the money correctly. They’re gonna, they’re working together as the husband wife team on the rowing in the same direction, on the same page, you know, doing great things together in the real estate space. Look them up that she’s a teacher by heart, I’m sure, and her husband as well too.

 Kaitlyn Phillips:

hmm-mm

David Richter:

So they have those book clubs, they’re in a mastermind. They could introduce you to that as well too. So there’s a wealth of knowledge just in Caitlin and what she’s done over the last four or five years in the real estate space. If you wanna learn more about this story, you know, like look up their website, look at what they’re doing, follow her on Facebook and all the different stuff. Connect with her. If you want to connect with someone who’s really, who’s active in this space and who’s maybe a few steps ahead of where you are or maybe, you know, like maybe a few steps ahead of where you are financially too, no matter where you are in the real estate world, doing a thousand deals a month, you know, she’s got some of those principles down in that system. But Caitlin, thank you for being here today. It’s been an honor to have you. And I just wanted to tell our listeners, if you are struggling with the money at all and you don’t have the background of the finances, just like Caitlin and Tim admitted to, that’s where a lot of people struggle. But a lot of people are like Caitlin, they want to learn, they’re hungry to learn to know what to do with the money. If that’s you and you want to know where to put it and where should I be putting the money on a monthly basis, how do I pay myself more? Go to simplecfo.com. We can help you. We have our CFOs, our part-time CFOs to help you implement Profit First, hold you accountable. We’d love to do that. And if we can’t help get on the call to be connected to someone, I want you to not have an excuse not to take action just because you think, oh, I’m too small for them or whatever. Just have that conversation with us and we’ll connect you to the right person as well. Thank you so much for you for listening, for being here today for you know, for absorbing this content. Go out and do something. Like Caitlin said, remember to make profit a habit in your business. Caitlin, thank you so much for being here today.

 Kaitlyn Phillips:

Yeah, thank you.

Outro:

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 at Simplecfo.com right now. We’ll see you next time on the Profit First for REI podcast with David Richter.




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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.