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More Profit First Lesson and Tips from Jerry Green, founder of Real Estate Solutions, Inc on how

Episode 158: Profit First Lesson and Tips from Jerry Green, founder of Real Estate Solutions, Inc on how to manage Real State and  Financial Systems

The Profit First REI Podcast

February 23, 2023

David Richter 

Summary:



As investors, we’re always at the mercy of the market. Because of that, learning how to navigate economic challenges and adapt your business is crucial to keep your business surviving and thriving.

 

At 28 years in the business, our guest today has experienced the many changes in the economic climate and the real estate industry. Jerry Green is the president and founder of Real Estate Solutions, Inc., beginning his journey in wholesaling and retailing. Now, he is a successful business owner and has expanded his mission into sharing his knowledge with other people who want to enhance their businesses.

 

Tune in as we talk finances, operations, sales, and the many systems that make a business work from the insight of someone who has been tested by time! 

 

Key Takeaways:
[00:45] Introducing Jerry Green and His Background

[07:30] Making Money and Keeping Money are Different Skills 

[08:38] How Jerry Would Rank Business Skills

[10:27] Entrepreneurs Who Get Into the Real Estate Industry and the Tendency to Not Initially Treat It as a Business

[19:12] “Hodge-Podge” Properties

[23:28] Real Estate Entrepreneurs and Having Financial Systems

[25:30] The Importance of Knowing Your Numbers

[28:12] Advice for Real Estate Investors: Make Sure Your Sales Team is Dialed In 

[31:55] Connect With Jerry

 

Quotes:

[07:10] “Now what happens is all these mortgage reps, they have to sell [but] they don’t know what to do…It’s the same way with real estate investors…they’ve got to change us up here first to realize that it’s no longer the marketplace that’s going to take them through, it’s their skills.”

[12:50] “Real estate’s no different than any other product or service out there….All we [have] to do [is[ concentrate on the business component…If we build that up, then that allows us to be able to turn more product.”

[30:57] “We can grow during this time (of economic shifts). We can produce more revenue…we just gotta realize that now’s the time to grow up and be business owners—true business owners.”

 

Connect with Jerry

 

Facebook: https://www.facebook.com/jerrygreenrei/
Instagram: https://www.instagram.com/thejerrygreen
Real Estate Training Website: https://www.thejerrygreen.com/
REI Sales Academy Website: https://www.reisalesacademy.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 



Transcription:



Jerry Green:

When you’re in that position where you can actually look at the business from above more,

David Richter:

yeah,

Jerry Green:

You can play success and you’re being very strategic about moving things like, well, if I do this, what happens to this? If I do this, what happens to this? Versus checkers, what are we doing? We’re just hopping around all over the board, right?

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:

Jerry Green has been a real estate investor for 28 years, been in the business world, he has seen different markets, and he talks about what to do in a down market or in a regular market or in upmarket. He’s going to give you what his formula for staying in business for that long is, which I love cuz it touches not just the finances, but also operations and sales and systems. And just really encapsulates, okay, 28 years of experience. Dow down into a 30 minute episode here. I really think it’s going to help you no matter where you are on your business journey, help you think more like an owner and not just an individual running around from property, property deal to deal. I want this to help you a lot. Thank you so much for listening and enjoy the episode. Jerry Green, man, I am super excited about this episode and really wanting to dive in about what you teach, what you offer, but then also just a lot of the things that you do to help real estate investors. So Jerry, thanks for being on the Profit for Star podcast today. So

Jerry Green:

Absolutely my man. I’m glad to be on our brother and uh, like I said, good to see you dude.

David Richter:

So, yeah, well it’s, it’s exciting cuz I get to see Jerry at a couple different masterminds we’re a part of and like out there and he’s making a big impact with a lot of people and it’s helped a ton of people. So I wanna kind of just dive into it in a declining market. Like what are you seeing in the real estate world right now? Are a lot of people panicking? How are you doing with your real estate business? Like, maybe give a little bit of background about what you do, but then just go into like what you’re seeing around the marketplace, you know, this Well, where we are right now.

Jerry Green:

Yeah, well, you know, I’ve, you know, first of all David, I think, um, I’ve been around the block a couple times on things.

David Richter:

Yeah, yeah.

Jerry Green:

Uh, I’ve been doing this since 1994, so 28 years going on, going on 29 real shortly <laugh>. So, and over those years, um, obviously I’ve got to see a lot of different market shifts. So it’s something that, uh, I’ve seen more than once. And, um, yet it’s super important to understand, you know, going into these is that, um, you have to adjust from one. I think that’s important on that side, but I think you have to understand too, uh, David is like understanding where the adjustment really needs to be made. And, um, I, you know, one of the, I’ll tell you one of the big things that I see right now is that over the last, you know, two years or so here, you know, since Covid and stuff, I what I’ve seen so much is a lot of people are in a position where they’ve been, uh, really riding the wave of the marketplace.

David Richter:

Yeah

Jerry Green:

Okay. And I’m sure you’ve heard that a lot too on things. But, so, and what’s interesting on that David too is when people are doing that, what it does is a lot of times it gives ’em a, um, it gives ’em a whole false indication of really what this business is about. Okay. And how we do this. So yeah, and I tell you what I’ve seen on this too is that a lot of people doing this, like I said, what’s happened is a lot of their success is not so much from what they’ve been actually doing, but it’s been so much of the marketplace driving things.

David Richter:

Yeah.

Jerry Green:

Okay. And now David, well, it’s interesting and look, I’ve had to talk a lot to my own team on this. Even it’s, I told him, I said, guys, look, the last, these last two years or so, you guys have really been living in a fantasy market, okay?

David Richter:

Yeah.

Jerry Green:

And it’s never been a real market that, and now what’s happening is that things are adjusting and as we’re adjusting, it’s getting back to really not this freak out market, but a normal market.

David Richter:

Yeah.

Jerry Green:

Okay. And that’s what I spent majority of my career in, is a normal market. Yeah. But a lot of investors or team members have never experienced that, especially if they came in the last couple years. Right? Right. So they never had anything else to, uh, reference to. So what happens is they come in and they used to just locking up deals and people just buying ’em because it’s the market driving it.

David Richter:

Yeah.

Jerry Green:

And I had to, like I said, I had to reset my team on this and I’ve had to work with a lot of my students and I said, look guys, you’ve gotta look at really what the number one thing is right now you gotta depend on is not the marketplace but your skills. Okay. And David, that’s a big component. So for one is like, let’s just look at acquisitions. So acquisitions on the sale and dispositions the same thing on sales. All that was. So it was a lot easier with the market the way it was because one people were locking up deals higher and they were just pushing ’em out and they were getting it prices anyways, right?

David Richter:

Yeah. Yep.

Jerry Green:

And then dispo, if you’re, you know, even if you’re doing fix and flip or if you’re doing wholesale whatever, you were able to go out there and push to a lot of your lists and people would snatch those up and it’s you know, that’s changing. And what happens is all the people that really ignored, like true sales training are getting bit in the ass right now.

David Richter:

Okay.

Jerry Green:

Okay. Because what happened was there was not much skills in that. Okay. And another example too is in the mortgage business right now, David. Okay. So I see a couple mortgage companies I work with, uh, consult with a little bit, and I’m looking at coming in and helping their sales teams. All right? And one of the things, uh, that I’m looking at on this is like they said, everything was so easy before, cuz people just come in and they say, yeah, hey, there’s a, here’s the rate, great, and here’s a few points. Oh good, let’s just go, let’s go. But now what happens is all those mortgage reps, they have to sell and they don’t know what to do.

David Richter:

Yeah.

Jerry Green:

And it’s the same way with real estate investors or acquisitions people or dispo people. They’ve gotta change us up here first to realize that it’s no longer the marketplace that’s gonna take ’em through. It’s their skills that’s gonna take ’em through.

David Richter:

Yeah, That’s really good. Because I feel like in this market they haven’t even, you know, like, uh, if you know that statement, it’s one thing, it’s a one skill to make the money, it’s another skill to keep it, you know, we talk a lot about that, obviously on this podcast, both of those skills. And I feel like in this market for the last two, three years, you haven’t even had to have much in the way of the skills of making it. You just had to put in the offers or you were able to, if you, even if it was a horrible offer and it got accepted, you were still able to sell it for more <laugh> than what you got for. So

Jerry Green:

Yeah, exactly David. And that’s been a whole false market on things and it created a, um, I always say this, it there’s a lot of dumb people. A lot. It made a lot of money. <laugh>

David Richter:

nice. Yeah.

Jerry Green:

And I’m not trying to insult anybody, but I’m just saying this because , it’s true. And we just have to realize that you know, the people are gonna really excel during the time is the people that hammered down on their skills.

David Richter:

Yeah.

Jerry Green:

Okay. And that’s in multiple areas of the business.

David Richter:

Yeah. So obviously sales is a huge one. Where would you rank like the skills to learn during a down market? Would it be sales number one and, you know, I don’t know, operations, finance, marketing, like you’ve got a lot of different options for other skills to be a warning during the down market or any market?

Jerry Green:

Yeah, I mean, definitely I look at, um, sales, uh, I would look at definitely sales and operations being up there in the top ones because, you know, I look at when, after 2008, uh, went through a period of time there where I would say David, probably 85 to 90% of the people that I knew in business during that time, after that whole craziness that went on the actual crash in the market, I bet close to 85 to 90% of ’em went out of business.

David Richter:

Oh, wow.

Jerry Green:

And a big shift that I saw, uh, or a big reason behind all that was a lot of it was because so many of ’em were so involved into all the, they were so involved in the business and they could never, uh, have enough time to look at the business on a higher level and, you know, be able to see really what was going on. They were just grinding so fast and so hard when it shifted, they were just caught up in the grind mode to continue.

David Richter:

Yeah.

Jerry Green:

The grind, the grind, the grind. And they never got a chance to look at it on a higher level, uh, like you guys do, you know, for a lot of entrepreneurs in this space and be able to look at those numbers and say, Hey, oh geez, we, you know, this is what I’m doing here. Not, you know, it’s the numbers, it’s the team, it’s strategies we’re using and all these things. And a lot of times you, you don’t see that stuff. And what’ll happen is a good market will cover up a lot of those sins.

David Richter:

Right. So would you say then, a lot of people that get into just business in general, do you think they start out running it like a business seen, you know, like where you’ve been able to see a lot of people, especially in the real estate investing space, or would you say

Jerry Green:

No, no, most people don’t. It comes in and it’s, um, especially I think real estate is probably one of the ones that they, people are even, um, I think this is the area that people are really bad about this more than other businesses.

David Richter:

Yeah.

Jerry Green:

And I’ll, and tell you, I think why on this is because, uh, real estate is looked at so much like on a personal level a little bit more.

David Richter:

yeah

Jerry Green:

And if you look at, you think about this David, and a lot of this comes too from what we see on television on stuff like that, right?

David Richter:

Right.

Jerry Green:

HGTV and all this. And so people get involved in that and they look at, oh, I can do this, I can do this. And if I, you know, I can just go out and I can make these improvements. And then they think they’re the home designer. And then what happens is they get emotionally involved in these properties. And you know, once you, uh, look, I always say this, if you fall in love with a property you’ve been had

David Richter:

Yeah, yeah.

Jerry Green:

And you know, and I think a big, a big change for me, and this was many years ago, and I took a lot of hard hits on this over the years is when I came down to the point where literally I drew the down a center of a piece of notebook paper. One side I wrote real estate, the other side I wrote business. And what I did, and what was interesting on this, David, was I realized something up to that point, all I was doing was I was just in the real estate business and I was just, uh, real, I was just not even really state real estate business. I was just in real estate chasing deals, constantly rehabbing, doing all this, managing stuff and you know, project management and all these things. And I never looked at it on the other side of the paper. And that is really looking at as a true business. I never looked at it in regards to, okay, let me think about this. There’s overall a operating system. There’s processes back in this operating system up there’s uh, people in different boxes. There’s true numbers that people have to be accountable for all these things. And when I started looking at that, I started, wait a minute, I mean, real estate’s no different than any other product or service out there.

David Richter:

Yeah.

Jerry Green:

And all we have to do, we have to concentrate on the business component. Right. And then realize if we build that up, then that allows us to be able to turn more product. Now, it doesn’t matter if what you’re doing, I don’t care if you’re fixing, flipping your wholesaling, whole tailing ions, buying whole, it doesn’t really matter when it comes to that, what you have to look at. It is a true business model and you have to start looking at it that way. And it took me a long time to do that. And a lot of investors don’t do that. And I get asked that question a lot too. A lot of people say, Hey Jerry, just say, you know, hey, you know, when you first started this, um, back 20 some years ago, anything he would’ve done differently. And I said, oh yeah, one, I would’ve slapped myself upside the head and realized that, you know, why not look at this day one that you really truly have a business on day one.

David Richter:

Yeah.

Jerry Green:

And that’s, and let’s start looking at it that way and start planning it that way. And it’s just like you two, you know, you guys teach too, David, the same thing. It’s, you know, let’s run it as a business. Let’s understand the numbers as a business. Uh, because ultimately in the long run, you’re gonna be much better off on things. You’re gonna be happier, you’re gonna be able to remove yourself quicker from that day-to-day side of things. And it truly becomes, um, the business. And I got a friend of mine, he always looks at this way. He says, you can have a business or you can have a company.

David Richter:

hmm

Jerry Green:

And he says, a business will be in a position where you can have a hotdog stand on the corner and have a business.

David Richter:

Right.

Jerry Green:

He says, but how can you take it to a company that thrives without you being involved in the day-to-day side of things?

David Richter:

Yeah. No, that’s good. Would you say too, cuz you mentioned a lot of investors that went down before, like 85%, 90% wiped out in the last correction. Would you say a lot of them had businesses or companies at that point or they were, had the business mindset? Or were they more the, just do the deal churn and burn? Do you know, deal after deal? What?

Jerry Green:

Yeah,

David Richter:

I guess 5%.

What would you say they had?

Jerry Green:

They definitely had the, the big chunk of ’em had that mindset of just, you know, constantly grinding on things. I,

David Richter:

yeah.

Jerry Green:

I remember one in particular, uh, nice couple and, um, really nice people and I really enjoyed them and stuff, but they were so caught up in it all that, and, and, and I remember the, one of the owners, he spent majority of his time running from property to property, uh, make sure the rehabs that were being done, things like that, and just constantly out in the field on things. And what, what he wasn’t doing, it was actually overseeing to how the business could grow, how it could adjust into marketplaces. And um, and if you think about it, he was just really being an overpaid project manager. Yeah.

David Richter:

Okay. So you’ve seen different markets for the last 28 years, like you mentioned. Have you seen anyone who did have a company who was of that business owner mentality, how often do you see people like that go down in this space versus the, that other side? Well,

Jerry Green:

I think it’s greatly reduced on that side of things. I think that, um, you know, probably in that 15% or, uh, you know, to 20% range and, and there that went through the last cycle, people were more focused on that side of things because Yeah. Was thought about that. They thought about the numbers and, and, and all this all, all these moving parts that we have in any business. And they were more aware of that and they could actually plan. Right. And you know, and, and I think that’s a big component of that. They could plan, they could make, uh, strategic type moves. Cuz I, I, you know, I’ll, I’ll never forget one of my, um, friends that I got to know, and he’s been a mentor to me as well. Um, now this, not in the real estate space, but it was another business. But he took a company to uh, about 300 million a year in revenue. And, you know, he always, he, he, he always look at things too in the regards to, you know, um, he would compare it to plan, um, chest to checkers.

David Richter:

Okay.

Jerry Green:

Okay. And he says, you know, then when you’re, when you’re in that position where you can actually look at the business from above more,

David Richter:

Yeah.

Jerry Green:

You can play test and you’re being very strategic about moving things. Like, well, if I do this, what happens to this? If I do this, what happens to this? Versus checkers, what do we doing? We’re just hopping around all over the board. Right,

David Richter:

Right. Yes, I understand that game with a five-year-old daughter. So

Jerry Green:

<laugh>. So, you know, and I think that’s a good comparison on that and head home on that. And that’s like, yeah, that, I mean, it’s exactly the way it is. And I’ve experienced myself, I’ve seen a lot of investors go through this side of things. And I think, um, really to, you know, especially in this adjusting marketplace here, I mean, you know, with this adjusting market too, I mean, we’re not seeing anything. We don’t have the crash thing that we have going on before, you know, we’re having an adjustment, but the reality is we needed an adjustment. Okay.

David Richter:

Right, Yeah.

Jerry Green:

And we needed to get that back to a little but more normalized market on things. And, but if you’re not used to that, this is gonna be more of a freakout stage than anything. And then I think, you know, the other side of that too, David, is that way I see a lot of investors dealing with, and even with our sales team, we’ve had real continue to work with them even daily, I mean daily to the point where they start understanding that, you know, uh, sellers are pretty well six, seven months behind the reality of things.

David Richter:

Yeah.

Jerry Green:

Okay. And our job is to also not only put deals together, but to get to that point of putting deals together too as a salesperson is you’ve got to, you gotta educate your, your clients.

David Richter:

Yeah.

Jerry Green:

So,

David Richter:

Man,That’s really good. That’s, there’s a lot of good stuff there because, you know, we need to make sure that people are business owners and not just, you know, just running around like from deal to deal or project to project chess versus checkers. I like that you said you’re daily working with your team or other teams as well too. It’s like you gotta start educating these sellers, that’s where you call back to the, the most important skill. Right. You gotta be skilled and it can’t just be, you can’t just throw stuff at the wall anymore and it’s gonna stick.

Jerry Green:

Right? Yeah. You know, I, you know, David, the funny thing is, and look, like I said, I’ve seen this in my own team, even on some sales where they would throw a hail Mary and it would, and they would get it sold, right?

David Richter:

Yeah.

Jerry Green:

Well you can’t do that anymore.

David Richter:

No.

Jerry Green:

Okay. It’s changed on that side of things. And then even, um, what we call, um, I would call ’em like, um, hodgepodge properties, <laugh>

David Richter:

Hodge properties. Okay.

Jerry Green:

Yeah. So here’s what, uh, the thing I would see a lot of, and my team’s done it too, and I’ve seen, but I see a lot of investors do this. So over the last couple years, what they’ve done is they’ve taken properties that, what I call hodgepodge, and it’s all put together. So it’s, it looks like it’s a, um, they call it a multi-family, but it’s really a single family home with a, uh, bunch of rooms converted and they turn it into,

David Richter:

yeah

Jerry Green:

Right. You’ve seen that dude, right?

David Richter:

Yeah.

Jerry Green:

And then what happens is, um, they take those and they say, oh, great. And an investor, somebody else wants to sell it. So it comes into like my team or somebody else’s team and they think, man, I got this great multi-family deal. What’s something about multi-family deal?

David Richter:

Right.

Jerry Green:

Okay.

David Richter:

Yeah.

Jerry Green:

It was a hodgepodge put together on things. Now before the last couple years you’ve been able to sell that stuff, but now what we’re seeing already, those type of deals, if it’s an oddball one, boom, it’s out.

David Richter:

Right, Yeah.

Jerry Green:

And it could be even from the appearance. So literally I tell my team, I said, look, you can look at the appearance of a property literally on a street view photo from Google, and if it’s got a front of the property that cannot be fixed, your chance is, oh, you’re not gonna be able to sell it now.

David Richter:

Right.

Jerry Green:

Okay. It’s got like a really oddball, you know, like very low hanging front porch or uh, could be something that, I’ve seen stuff before where you can’t figure out if it’s a commercial building or if it’s a house and they converted it, you know, from, who knows what, you know, one time an old drugstore into an apartment or something

David Richter:

right,yeah

Jerry Green:

Like that old corner drug store and see those things you were able to push out because it was such a demand on that. But as the market shifts, people became, become more particular. And then all of a sudden that buyer pool, that was really the ones that we buy anything, they start to go away.

David Richter:

Yeah.

Jerry Green:

And then all of a sudden you gotta think about, again, more strategic in saying, oh, I met this stuff, you know, I had before, I gotta change it the way I’m doing things or change your strategy. Right. So, like I remember back in um, nineties as the market was shifting and things like that, I had buildings like that and I’m like, man, there’s no way I’m gonna make this thing happen. So I would just do an option on it.

David Richter:

Yeah.

Jerry Green:

Okay. So I control it with an option. I didn’t have to do anything with it, you know, it was a, basically a unilateral agreement. I have the right to act on it, but I didn’t have to. So, and I, but I controlled the deal.

David Richter:

Yeah.

Jerry Green:

So, I’ve done that like, on a lot of like small commercial properties and stuff like that. And that’s the thing that we can do. So, you know, it’s realizing too that not only your skills, but sometimes you have to change your strategies when you’re going into a deal. So you have more strategies on your exit.

David Richter:

Yeah, no, that’s really good because you don’t wanna get stuck with one of those hodgepodge properties.

Jerry Green:

Yeah, Exactly.

David Richter:

Shoot. You know, like, what do I do with this thing? I’ve gotta convert this to some office space or something. Make it worth it so you’re not just, you know, draining money there. And then I like what you said, give yourself options so that way you can give strategies. So lock it up with an option. Or just making sure going into the deal, what am I gonna do with this before I, you know, before I try and sell it first, or if I had to keep it, what would I have to do? That’s really good stuff. Would you say then, cause you say okay, sales operations, you see a lot of that on that side. Would you say a lot of the people that you help at work with, how many of them have systems for their finances and for the financial side of their business?

Jerry Green:

Very few <laugh>. Very few on that side of things. In the beginning stages.

David Richter:

Yeah.

Jerry Green:

On things. Um, you know, I think it’s obviously as they go further into things, we really talk about that a lot, you know, in regards to putting that more in place setting, you know, because I think, um, David, and that, I know that you see this a lot cuz you’re on the front lines of this, but I actually most, uh, entrepreneur, especially in this, uh, business space, that what they do is they operate off a checking account balance versus actual financials.

David Richter:

Right? Yep.

Jerry Green:

And, uh,

David Richter:

yes, indeed,

Jerry Green:

<laugh>,

David Richter:

no, If you’re seeing that too, then it’s all over the place

Jerry Green:

yeah, <laugh>

David Richter:

because where it’s what we see for sure. But then, yeah, I was just curious because I know you work with a lot of people and you help them with their sales, their operations, you know, just really tightening things up and so I was just genuinely curious like how many people you walk into and they’ve got the financial portion buttoned up, but

Jerry Green:

Yeah, very few actually have it buttoned up on things. Um, I think one other thing that I see a lot of things too, David and I experienced this years ago too, was that, um, this is another reason too, people, if you think about it, when you’re working really heavy in the business

David Richter:

Yeah.

Jerry Green:

What happens is, and you know this, you see this a lot, um, that the financial side becomes so down, it becomes way down on the to-do list,

David Richter:

right, Yeah.

Jerry Green:

Right way weighing down on there. So they’re just like boom, boom, boom, boom, going, going, going, going, going. And uh, then what happens is they get behind on tax, uh, returns, right?

David Richter:

Right. Yes.

Jerry Green:

Yeah. And, uh, I’ve been there, done that.

David Richter:

Yeah.

Jerry Green:

Um, and you get behind on that side of things and you just, and that starts piling up and then what you’re doing is you’re just flying blind.

David Richter:

Yeah, exactly. Oh man. So then I guess, can you speak to that just a little bit? What is the importance of, in your business and the others that you see, the financial portion, being able to see what your numbers are and being able to know where you stand financially?

Jerry Green:

Dude, it’s critical. I mean, it’s, look, I mean, ultimately it’s really hard to make the decisions that you need to make without that day. But, and you know that too, man, I’m, you see it all the time, but it’s, I think it gives you, um, the cool thing about it is when you really start understanding that side of things, then you can really, uh, start understanding what type of returns you’re actually getting on your marketing dollar for dollar. You start understanding too, um, you know, uh, team members you’re investing into, are they making a return? Okay. Uh, and we start understanding that side of things, which to me is, you know, it’s like, it’s easy to get to the point where you’re just pouring money out into team members and all these things, and you’re not really sure if you’re getting a return on that, uh, on that money, And you know, really once it comes down to that, once you really understand that side of things and you’re working within those parameters, then you can ramp it up, you can scale, you know, damn whatever you need to, but you know where you’re at and it really makes a big difference on that component, you know, and it’s, and you know, we like to try to go in and plan and look at any company. Like we, you know, we took over the sales academy this year, the

David Richter:

Yeah,

Jerry Green:

R R E I Sales academy from John Martinez. And, you know, we went in, we had a monthly, uh, budget that we planned with, uh, right out of the gate. Um, you know, and, uh, we had those numbers from one historical data where, you know, where the company operated at and we know what our monthly, uh, you know, our monthly nut is

David Richter:

Yeah.

Jerry Green:

On things. And, uh, we know where we need to be on that. And, you know, we understand our margins on that side of things. And, it makes a big difference on that component instead of just waiting to get into a p and l to find out, you know, if you made any money or not. So.

David Richter:

Right, man, that’s good because especially, I like that example, like, you bought a business, he had to know the numbers, he had to know what were they bringing in, what was going out.

Jerry Green:

Yeah, absolutely.

David Richter:

So I mean, that’s just part, like, I like how you said too, business versus company. You, if you’re going to acquire, you’re going to acquire companies, you want to acquire companies that have like systems, processes, list data, people, whatever it might be. So

Jerry Green:

Absolutely.

David Richter:

That was really key. I just have a couple last questions here, uh,

Jerry Green:

Sure.

David Richter:

With our time here today. So then what would be some just last minute advice that you give to the real estate investors listing here? It could be on anything sales, the skills, operations, it could be finances, whatever you think that the real estate world needs to hear right now.

Jerry Green:

Well, I think a big thing is, um, no, I really, and it’s not just because I own the sales academy now, but

David Richter:

Yeah.

Jerry Green:

Um, I think it’s extremely important to make sure your sales team members are really dialed in right now. Okay. And I mean, really, and to the point where they’re heavy on the training side because they have really been able to do a lot of stuff the last several years here that they can’t do anymore. Okay.

David Richter:

Yeah.

Jerry Green:

And, David, if people don’t get that, I’m telling your brother on that skills is going to really push you through this time and let you also not, not just put you through, but put you way ahead. I mean,

David Richter:

Yeah,

Jerry Green:

Look, during this time you can kick butt during these next, you know, couple years. But the thing is, is you gotta rely on your skills. And it’s amazing on that side of things, but you know, if you, it’s just like, if you think about things, David, a perfect example, if I’m talking to a seller and I don’t, uh, you know, we talk about a lot of times in like in the sales academy about price anchoring people. Okay? But also you have to learn how to market anchor people.

David Richter:

Yeah.

Jerry Green:

So what you do is you anchor them based upon what’s going on in the marketplace.

David Richter:

Yeah, that’s true.

Jerry Green:

Okay. That’s really, so I might be talking to Davis and David. Hey, uh, as you know already, man, um, you know, inflation’s really hitting us hard gas prices are going through the roof, you know, all these things and we’re just, we’re anchoring, you know, uh, feds are raising rates and all this stuff. So we’re anchoring on that side of things.Okay.

David Richter:

Yeah.

Jerry Green:

And, it, I think it’s important for people to understand that and that’s how you’re gonna really excel on this. So I think that’s a big component, and I’m wanna give everybody a tip on that is focus down on heavy on your sales teams in the training.

David Richter:

Yeah.

Jerry Green:

That is a huge, huge component. Okay. And then the other things is really understand your business and your numbers and uh, make sure you really tighten that up. Because ultimately what you wanna do is you wanna have a really, um, mean lean machine right now.

David Richter:

Yeah.

Jerry Green:

Okay. And understand, you know, what’s really, what’s given you the ultimate, uh, return and let’s cut out all the fat crap. Okay.

David Richter:

Yeah, no, that’s really good.

Jerry Green:

So I think if you focus in on those things, you’ll see your business grow. That’s the cool thing about we can grow during this time. Yeah. You know, and we can produce more revenue and everything else. We just gotta realize that, um, now it’s time to grow up and be business owners, uh, true business owners, right?

David Richter:

Yeah.

Jerry Green:

And not just let a market take us on a ride, but now it’s time to become and you know, that real business owner, that company that you wanna take, get and build.

David Richter:

Yeah. No, that’s really good stuff. So this has been awesome because we’ve gotten down the road from, hey, you need to work on those skills to become not only to survive but thrive during this time play chess. Now checkers, you know, working with the team sellers are seven months behind, like being able to get them up to date. I like what you said there at the end, anchoring the market, not just price, but like now you’re anchoring the market, this is where

Jerry Green:

Yeah

David Richter:

The market is. So really helping there. And then, oh, I love what you said about the numbers and making sure people know the numbers and have the grasp on their finances to really become those business owners. Last question is, you provided a ton of value there. Where can people reach out to you? What are you working on right now? I know you have the sales academy, but what else would you wanna Uh,

Jerry Green:

Yeah, absolutely. Thanks David, I appreciate that. Sure. Yeah, so a couple places you guys can reach out to me, obviously through social media, you can follow me. Um, easy to follow just uh, on Facebook. Uh, it’s Jerry Green, um, I got a business page, Jerry Green and my personal page. I think I’ve still got some friend requests. I try to clean that out of once in a while.

David Richter:

Yeah.

Jerry Green:

So you can follow me there. It’s pretty simple to pop up on that. I’m right on Ohio in, uh, Dayton, Ohio area, so you can pop that up pretty easy there. Um, the other side, uh, two guys is uh, Instagram and uh, I think my hand on has, uh, the Jerry Green. Okay. So that’s easy. And then I, uh, I have two main websites you can go to, David one is djgreen.com. Very simple. You go on there. Talks about my systems and operations training that we do. We do a two day event, show people exactly how to do what we’ve done on our business to systemize it. Um, two days. We actually got come on coming up December 1st and second right in my office. We do a small group, keep it about 20 people, and we just go through our complete business, all our departments. And then day two, you get a complete roadmap to take, run your business with.

David Richter:

Awesome.

Jerry Green:

So yeah. And then if you need help on your sales side and you really wanna master this game of, uh, converting more deals, um, and creating bigger spreads, then um, you know, check out my RDI I sales academy. That’s rdisalesacademy.com. Okay,

David Richter:

Cool. Well, there, there you go. That’s how you can follow Jerry. And then that’s where you can get in touch with him depending on what you need. Sales operations, he covers a lot of different things and I love that he flies, you know, that people fly in to watch and get to see the day-to-day operations there and get to learn from different people and get to see what go is going on in it and actual true company. So that’s good stuff. But

Jerry Green:

<laugh>,

David Richter:

Jerry, this has been great. I wanna do, if you’re listening right now and you’re a real estate investor and you wanna make that leap to business owner and run a company, reach out to simple CFO as well too. We can help you get the numbers in place and know exactly where you stand and be able to get your cash flow and everything that you need to be on the financial side. Don’t just make a ton of money. Keep it as well too. You can head over to simplecfo.com, you can make sure we can see if we’re the right fit for you, but wanna make sure you remember make Profit a Habit in your business. Jerry, thank you so much for being on today, man.

Jerry Green:

You’re welcome, brother. Thank you.

Outro:

This episode of The Prophet 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.