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Overcoming Habits and Fears and Developing as a Leader with Joe Theriault

Episode 126: Overcoming Habits and Fears and Developing as a Leader with Joe Theriault

The Profit First REI Podcast

November 3, 2022

David Richter

Summary:

Joseph “Joe” Theriault is today’s guest on Profit First for REI! He’s a real estate investor and owner of Inherited Property Solutions, a company focused on helping people liquidate inherited property. He is also actively involved in rehabs, novations, wholetail, wholesale, and brokerage.

This is one of my favorite episodes so far. Joe goes into the struggles he experienced when he took over the financial side of his business while retaining his old habits. He became unable to pay himself first, stressed over work, and found difficulty managing the company’s numbers. 

Everything changed when Joe made the conscious decision to take leadership coaching and apply Profit First in his business, developing his systems and mindset. Check out the whole discussion here!

Key Takeaways:
[00:49] Joe Theriault, His Background, and Journey

[07:39] On Getting Leadership Coaching

[09:29] On His Financial Struggles and the Benefit Profit First

[15:26] How His Business Struggles Affected His Life and Leadership

[19:24] On Being Able to Pay Himself 

[22:32] On Overcoming His Habits and Fears and Developing as a Leader

[29:55] How to Connect With Joe

Quotes:

[08:38] “I’m a big fan of…do what other people do. Just do it better…[You] don’t [have to] reinvent the wheel.”

[19:13] “[After Profit First,] my ego and money, all that stuff isn’t intertwined anymore.”

[28:22] “Right people, right seats. That’s what my coaches are right now, hands down. Right people right seats…That includes bringing you guys in Profit First.”

Connect with Joe: 

Facebook: https://www.facebook.com/joseph.theriault.35

Email: joe@ipscash.com

Website: https://www.ipscash.com/

Tired of living deal to deal? 

If you are a real estate investor or business owner who is tired of living deal to deal, and want to double your profits, head over here to book your no-obligation discovery call with me. Either myself or someone from my team will hop on a short call with you to get clear on your business goals, remove any obstacles holding you back, and map out a game plan to help you finally start keeping more of the money you work so hard to make. – David 

Transcript:

Joe Theriault:

Now I have no problems getting money. People I wanna give me, just give me money, right? Yeah. Cause everything’s straight. Everything was always straight. Cause I had a business partner and he was good with finances, but now I’m on top of it so I can go talk to people about money, right? Right. So it’s just, um, definite ceilings and that’s it, right? People write seats.

Intro:

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:

I’m going to get myself in trouble here, but I believe this is one of my favorite episodes, if not my favorite episode that you’re about to listen to. Joe Theriault is an active real estate investor. He’s come from a background of being a W2 employee to making that switch full time into real estate. And he talks about some hard things that he’s gone through in his life, in his business where he felt like he was sacrificing for his real estate investing company. He was paying himself a last, he was feeling stressed and burnt out. He would go to his 9:00 AM meetings and saying to people literally in that meeting, I haven’t gotten paid yet. We gotta rally together. And he thought that was gonna be motivational. Listen to his story. Listen to where he is been and where he is come to now, and how he can help you have hope for your business no matter where you are, even if you haven’t started investing in real estate or if you’ve done a million deals, I don’t care.

 

You’re going to get something from Joe. And the main thing, I believe is hope for wherever you are. Listen to this episode. I know you’re going to get a lot of value from it. Thank you for being a listener, and I appreciate you. Hey everyone. We have theJoe Theriault here. He’s an active real estate investor with Inherited Property Solutions. I’m excited to have ’em on. He also works with us as well too. He’s gonna tell about his profit First journey and how it’s been going, and we’re just gonna dive deep into it. But Joe, thanks for being on here today.

Joe Theriault:

You’re welcome.

David Richter:

And he’s a straight shooter. So, uh, just the disclaimer up front. I tell, he even asked me, he’s like, I, I use colorful language, you know, should I, should I tone it back or should I actually, you know, just be who I am? And I said, Please be who you are. So if you hear th those expedited today, it’s okay. I just want him, I want Joe to be Joe on this podcast. So I’m really excited about having him here. So, Joe, tell a little bit right now, what are you actively involved in? Is it flips rentals? Just let the, let the listener know what you’re doing?

 

Joe Theriault:

Yeah, generally speaking, uh, it’s rehabs, innovations, whole hotels, brokerage and wholesale is that typical business.

David Richter:

So what don’t you do in real estate? I’m

Joe Theriault:

Just kidding, <laugh>. Yeah, that’s fine. The, I would like to be in the bigger, you know, some of the bigger asset classes, but I’m not into rentals and, um, we have, we got our mortgage, I got my banking license so that, um, I don’t have to hold rentals so that the game for me is the banking game.

David Richter:

Okay, That makes sense. So how many deals just collectively a month, would you say that you’re doing right now or that you’re buying? Either buying or selling? I,

Joe Theriault:

Yeah, I’d break it out for the year. Probably will fall in the realm of about 130 this year ish deals.

David Richter:

So you’re listing, if you’re listing right now, this is not someone who just got started in real estate. How long have you been doing it too, Joe?

Joe Theriault:

We, uh, full-time. I left my job, uh, seven years ago.

David Richter:

Wow. Was that, was that a monumental event for you? Was that, like, were you in the corporate world for a long time and then jumped into here? What were you doing before?

Joe Theriault:

Uh, yeah, I was, uh, I had been in manufacturing and a machinist for, since I’ve been 14. Okay. Um, you know, bought my first building when I was 21, Maybe didn’t make some good life decisions. And then, uh, ended up with, uh, no money homeless. And, uh, that was probably when I was about 30. And when I was 30 I was working in manufacturing and, um, was in a campground. And I bought my first apartment building again, uh, in that phase, I call it my first bought another one, bought another one. So I had apartment buildings, full-time job in a yoga studio. And I met my now wife who lived two hours away and said, Something’s fucking gonna give <laugh>. And, um, like, I gotta go do, like, I gotta, I gotta go do this or like, should have get off the pot. Right? Like, I can’t, can’t live in this middle world. So I, um, had 30 grand and said I got six months to make it in real estate. And that was about seven years ago.

David Richter:

Wow. You took that leap. And it seems like, I mean, you’re still in real estate, so how has it been so far?

Joe Theriault:

Yeah, it, it’s, it’s been an interesting journey, right? If you were said seven years ago, like, would I, would I be here in like class a office space with employees on a podcast, ran over to do a back to back closing this morning? And, uh, it like, no, like, would I have, you know, uh, ever thought that that was gonna be the case? So, you know, it, it’s definitely, you know, there’s lots of stress, no doubt. And I’m having to learn how to be, now it’s more of about me being a better leader and managing, you know, I come from manufacturing, right? Get, get it, get it your fucking machine at nine o’clock, the bell is off, the spindle better be turning like, let’s roll. Right? Yeah. You know, so that’s not really how you manage real estate people. And um, so, uh, you know, I’ve really had to, uh, you know, this past year especially, I mean, I have leadership coaching today, you know, so it’s like, man, that’s the stuff that struggling.

I always thought it would be like, how can I just grind more? Right? Yeah. Just do more business. And it isn’t, it’s now, it’s so there’s a, a facet of it. That’s, um, it’s definitely, I, um, saw something the other day about, I try, I’m trying to stay word from the stress, but like the pressure, right? Yeah. How do we deal with the pressure of it, right? Yeah. And, um, you know, cause I chose it, right? Right. Um, so it’s an interesting thing. It’s definitely exciting. I’m more about building a company now than I am. That’s what gets me excited. Like really building a company. Cuz then I can go build any company Right, Right. Through it with, you know, within reason. Right? So, um, that’s more what’s feeds me right now is the ins and outs of finance and relationships and growing people and employees and all that stuff that, that wasn’t, I thought I was just gonna do a flip.

David Richter:

Right?

Joe Theriault:

I don’t know. Right. Like, do a flip. I don’t know, like, however, hang some banded signs. Like I, that’s what I thought 70 and I did, I was king banded signs for a long time. Uh, so I don’t know. Long winded question. Uh, long winded answer to your question, but, uh, that’s

David Richter:

True. Believe me, I’ve had much more long-winded answers. So that was No, that was really good because I wanna focus on a couple things there. Number one, I was a machinist before I stepped into the world of real estate. Um, I was there for a few years and then jumped in. So I definitely get the, like, you gotta be there. The spindle has to be turning, you gotta punch in the numbers, It’s gotta be like go, go go. Yeah. And they’re like just hovering over you basically the whole day. And like, we had cameras up everywhere and, you know, Oh yeah. They’re just watching you. And it is totally different in the small business, the real estate world. And I love what you said that you are not just grinding anymore, you’re becoming a better leader. You know, it’s not just about how much can I work? It’s how much can I pour into others. You even mentioned leadership coaching that, was that a decision because you saw that over the, the last year or something like way, Hey, I gotta be a better leader. Like, I don’t wanna keep grinding away. Or like, what was that spark that you took the step to even reach out to get a leadership coach?



Joe Theriault:

Yeah, it, you know, I I, it, it’s a weird dynamic for me because I can be very, very driven. Yeah. But I’m also super analytical. Okay. So I like varying, like, I like bumpers to a certain degree. Yeah. Even though I don’t like bumpers, it’s kind of weird. Um, you know, a couple years ago, just suggestion of, um, you know, someone I know when we ended up, uh, you know, with Gary and Susan and, uh, shopper, you know, going through that and I saw that, you know, where I’m buying out my now bus, I’m buying out my business partner. Right. Like, all of those things that I had to go and learn Yeah. And, and be like, I was seeing other guy. I’m a big fan of like, just do what other people do. Just do it better. Right. Right. You know, don’t reinvent the wheel. And all these guys had co, you know, had coaches. Right? Yep. So, um, you know, it’s, it’s a couple times a week I probably meet with somebody that, and I’m like, Oh, yeah, okay. That’s right. All

David Richter:

Right. Yeah.

Joe Theriault:

So it

David Richter:

That’s

Joe Theriault:

Good. Yeah. It’s been an inevitable kind of just with things learning, right?

David Richter:

Right. You’re the small business owner and then you start to grow and then you’re doing 130 deals and you’re like, now the hats are different. It’s not just sales marketing, operations, it’s, it’s leadership, it’s management, it’s, you know, it’s all those other things. Those intangibles more as you get, you know, as you’re actually building a big company. Cuz the hundred 30 deals has nothing to sneeze at. That’s a, that’s a really, that’s a very healthy company as far as like the volume that you’re doing. Yeah. So then let’s talk about, we’ll go this direction too. When did you get excited about the Profit first message? Like how did that come into your world and into that being like, cuz we’re talking about coaching and leadership training, this is definitely a different type there. So Profit First. Where did that enter?

Joe Theriault:

Yeah, Funny, funny enough, uh, again, this is a, this is a story. Uh, but years ago I had heard of Profit First, uh, just straight Profit first. Right? Yeah. And took it to my business partner and was like, Man, like I would really like to do this, you know? Um, and it was like, you know, you know, no, basically, Right. So, Okay. He had money and so it was a different op. Like I didn’t have that kind of money. Right. So he’d already retired and it was a di different dynamic of where he was at his life. Right. Okay. He’s already run a 50 mil, 50 million a year revenue company. Right. So his way of doing things wasn’t necessarily my way of doing things. Yeah. So, so that was a no. And then this year, um, this past year, I stepped into running the company basically, and where he hasn’t been in the office.

And we, we both agreed to that. And then over the past, since March, I offered to buy him out. Right. And all of that, you know, one of the reasons he was my business partner was I didn’t have to worry about finance. Right. Mm. I just went and, and made sure the business was there Yeah. And was running and gunning. Right? Yeah. Like, I ran the company, but I was just running and gunning let’s do business. Like I didn’t look at QuickBooks, I knew it was in the bank roughly, and like last year we made good money, right? Yeah. But we just stripped it outta the company. Right. So we just took all the, I didn’t have, like, I didn’t have rehab budgets set up allocations, we just, we just ripped it all out. Yeah. Right. We took the profits, we said, Oh, we’ll leave a couple hundred in the bank, you know, for whatever, and we’re gonna take the rest out.

Well, well come to find out when I’m actually the owner and buy my business partner out and having to do 10 rehabs at a time, which is what about what we’re doing. Yeah. Well, there’s lots of money that comes outta my deals that don’t go to my pocket nowadays. Mm. Yeah. Right. So I had to learn and what, so what we did, you know, again, I found someone that I knew that already had a coach from you guys. Yeah. And I said, Who are you using that is the coach with, with Profit First? And, uh, you know, he, he, he told me, and, and you know, as far as I know, I have your best profit First Coach in the company <laugh>. Um, as far as from what she tells me anyway, um, you know, so, um, and I

David Richter:

Fair, she is the director of all of our other CFOs. Correct? Yeah. She, Yeah. Yeah,

Joe Theriault:

Yeah. Um, you know, so it’s, Does that answer, does that answer the question

David Richter:

Well enough? Yeah. So it sounds like years ago you heard about Profit First, you took it to the business partner, but he was kind of the financial part and he’d already run a lot of the business, but now you stepping into that seat, you’re like, Hey, I, I haven’t run the $50 million business and I was leaning on the partner. Now I need someone to come in and say, What the heck do we do with the money? And where the heck do we need to put it? So that’s where, I guess, So before you had implemented it then in the business, like when you were relying on him, how I, I guess you were just looking at the cash, like you said, you knew stuff was there, but not really knowing, having to go deep into it, was it affecting you at all up these past seven years? Yeah. Until, Yeah. So tell us a little bit about that.

Joe Theriault:

That’s piece, Yeah. Yeah. So that’s the motion piece that we, that I missed. So the piece of that as, as, as a machinist or someone that’s been on a paycheck their whole life, waiting to get paid to the end is not healthy for me. Okay. And then it also makes me, um, hate everybody. It makes me hate the employees. It makes me hate the company because now I’m getting paid at the end. Yeah. And now I just wanna drive and, and grind and be even hotter. Like, what do you mean you didn’t get that deal? Like we lost money like that, The personality out of me that you don’t want coming out of me. Yeah.

When we paid Joe last, even though he may get paid more, I don’t, I don’t want that. So what Profit First has done for me is I get paid first on an all on an allocation, Right. Because we now, we have everything set up and everything’s allocated. So if a hundred thousand dollars comes in this week, we get a certain amount goes into, we have it all figured out based off of our, uh, budget for the year and all our expenses. And, uh, with the CFO from Profit First, and then now it’s, I have 10 different business, 10 different accounts and everything gets allocated. Right. So a certain percentage goes into rehab, certain percentage goes into Joe’s account, the different, you know, income account, opex account, right? Yeah. So I’m far less stressed from at least that standpoint. Yeah. It’s more of, at least now I know I’m getting paid. Right. Because with my inevitable, and I think a lot of entrepreneurs will just dump all their money back into the company. Right. And, and burn themselves. Like, I’m guilty of it and I’ll just keep my money there. Even, even Chris, even the, uh, coach from CFO is like, Did you take that money out of that account that you’ve been allocated? Did you actually pay yourself even though it’s there? Right. So, um, anyway, Yeah. So that’s, that’s, that’s my story,

David Richter:

Man. That’s honestly, that’s a lot of people’s story. Like you said, you can speak for the entrepreneur and for that person, because I think a lot of people get that irritated or like they, the shoulders, you know, tightening. You’re like, Why that deal didn’t close. Like, we needed to close that deal, or we needed to, you know, like, what are you doing? You’re making that decision just then. I honestly, Do you feel like when you were in that part, but when Joe was playing, when Joe was paid last, let’s just say during that time, did it also affect not just the business, but like other relationships? Either like family or other thing? Like was it, was it, you know, did it seep out other places as well too?

Joe Theriault:

Yeah. Um, it, it did, but my, my candy, my wife Yeah. Uh, is a COO here. Right. So it’s kind of like, uh, Okay. You know? Right. And then, and then Jeff, who was the coo, he was taking a lot of stress of things too. Right. Okay. So when I, he went over to rehab manager, which has been a way better transition for him. Yeah. And, um, so, you know, Yes. You know, I, I, I I believe so. And I think the, uh, you know, moving on from my business partner, uh, and, and like all of that kind of like plays in, So there’s still quite a bit of like stress and angst that I’m trying to like ba balance out still of like, now I need X amount more each month. Right.

David Richter:

To

Joe Theriault:

Pay him off. Right. Yeah. So there’s still, there’s still some, some there. I, I think more of what it was is I don’t take it out on the employees as much. Okay. I can remember at nine o’clock meetings being like saying it. I haven’t saying it in front of everybody and not even realizing it, thinking that I was justified saying it would say, I haven’t even gotten paid yet. Right. To right. Like that, that was my, my like chest pounding, like, come on guy. Like the, you know, that, you know, So in the, since we’ve, and I felt truly justified that it was, and not even in a rude way Sure.

David Richter:

It’s gonna motivate them. Cause it’s almost like trying to motivate them. I’m sacrificing for you what that was that was that kind of the attitude that you brought to it. Yes,

 

Joe Theriault:

Yes. Right. I’m sacrificing for you. Right. Yeah. And in reality, you know, so I mean, the stupid airplane thing put on your mask first, Right? Sure. Whatever the Yeah. Analogy is. Right. But, you know, to a degree it’s, it’s, it’s, it’s true. And it’s kind of at least tempered me and I haven’t had any of that in my nine o’clock meetings and other meetings I’ve had. I’m way more positive.

David Richter:

Yeah. Well that, that is a huge step because I think it goes back to what you said. You’re not in the W2 punch in punch out world, you’re, it’s a lot more fluid and a lot more, especially if you’re working with salespeople, because probably back in the machinist day you probably didn’t deal with the frontline salespeople that were dealing with the contracts and everything. So it’s like in this world, you go into those meetings and you think like, Oh yeah, rah rah, you know, like, I’m not even getting paid. And, you know, it’s like that’s motivating to them and they’re just like, Oh shoot. You know, like, what are we doing wrong? Right. You know, like, looking at you. So, man, that is, that is powerful. Cuz I think a lot of people are there too. They think they’re sacrificing for them that that’s gonna motivate them. But the employees want you to be successful, Right. They want the owner to be successful. They want this company to be successful. Cuz everything hinges on that for them as well too. Would you say that’s how most people are in the companies? You know, they want you to be successful too, Just if not saying that, but for that peace of mind, would you say that’s true?

Joe Theriault:

Yeah. Yeah. For sure. Right. Like and, and that’s what I thought was the MO would motivate. Okay. Right. Yeah. Right. So I would kind of like play on that. Yeah. And instead it’s just now it’s just focused on, on growing them. Right? Yeah. And, and what do we need to work on each week? You know, if guy’s suffering on conversion, it isn’t me being like, What the fuck man, I ain’t getting paid. Right. Right. Like, dude, you better convert. It’s all right. What do we gotta do? What do we gotta coach better on? Okay. You’re not converting on, uh, action deals. Fine, let’s let’s do some more training on that. Right. Yeah. And, and my ego and money, all that stuff isn’t intertwined anymore. Right. That’s, that’s behind the scenes, you

David Richter:

Know? Ah, that’s great stuff. And that’s where, what, how did it feel that first time that you were able to pay yourself like on, you know, and you actually took a check from the company first V versus last. Did you, what feelings were going on at

Joe Theriault:

That point? Uh, you know, it, it, it definitely was. I mean, I remember telling the cfo, you know, you’re a coach from Profit First and I’m trying not to name names cause I don’t want everyone running over toward me. Like Joe said, use this person. Right. Like, so I’m not going there. Oh, unless you tell me too, then I will, but I won’t in this moment. That’s why I’m being a little like Yeah. Not saying the name. Um, and um, so there was, um, I remember very, very, uh, uh, full of gratitude, uh, towards the, uh, Profit First Coach. Uh, and I, I did let her know thank you. And I appreciated that quite a bit, uh, cuz she actually forced me to actually take the damn money out too <laugh>. So, um, you know, that was important and it was, it was, I know it sounds, this gotta, sounds stupid or whatever the fuck it is, right?

Sure. But like, it was like, to a degree, like a small little dream coming true. Mm-hmm. Right? Because what, what, what what was a, what I was able to do was keep building all these accounts and keep building this business and still get paid. Right. And right. So everything was, all my needs were being met where I didn’t have to, I was still dumping money back into the company to try and build it. Right. But in the meantime I was, I was still getting something out. Right. Yeah. So it, it, I mean you gotta understand, I’m fucking machinist man. Right? You’re talking a couple thousand dollars in your bank account, Okay. I had some rentals, fine, whatever. Like, there’s millions moving in and out of this company, right? Mm-hmm. <affirmative>, like, and I’m borrowing millions of dollars that is, that doesn’t like, like we forget very often people that are involved in this land of real estate. Yeah. And what this is like, that doesn’t happen all the time to everybody. I know there’s a lot of talk out there and the, you know, and we’re all connected in these rooms. Yeah. You go out on the street, man, and when I’m in a meeting and I’m out there in a, some kind of support group style meeting and someone’s dude just getting sober, dude, it’s pretty, pretty fucking heavy. Like the amount of shit that we’re doing that where we came from, Right? Yeah.

David Richter:

That is so true. That’s that book. Right? Um, what’s his name? Dan Sullivan. The Gap in the Gain. Yeah. Like where, where have you come from and to where you are now? Cuz that’s a, that’s huge. Like you said, going from W2 to now, millions of dollars flowing through. But then you even said like, what in the world, you know, I’m getting paid last, you know, like sacrificing everything. So it’s like even then coming outta the W two job, it’s almost like still being conditioned to almost be that W two employee, but you’re trying to run the company now with that

Joe Theriault:

That it’s a good, that’s a good analogy actually. That’s, that’s that’s fucked up. Yeah. But yeah, that, that’s funny how you, you, you Right. Go back to just what’s finding what’s comfortable no matter what. Right, Right. Um, so Exactly. Yeah. That is a good, that is a solid analogy.

David Richter:

Well, and that’s, and that’s where sometimes you have to have that kick in the pants to say you have to do this. Like you are the business owner, I’m sure on your leadership coaching too, there’s probably been breakthroughs that you’ve had of like, Oh shoot, I didn’t even realize I was doing this. Yeah. You know, and it’s like holding me back and it’s holding my people back. Yeah. Same thing with the money there. You were almost like you said, the CFO had to like force me to take this money. Right. And then, you know what you just said, you just said, you know, to a small degree here, a dream came true right. In the business because now the needs are met. Plus I get to invest in the business. Right. And in the people, you know, and it’s like, that’s what you’re wanting. So I love that.

That was to me getting the goosebumps. I know you were like, ah, maybe it sounds fine, but No, this is, you are giving people that are listening right now hope. Yep. Hope that even no matter what background they came from, that W two machinist background or real estate investing for the last seven years or however many years that you can get to this point at least. And I love what you said too. You said you, you had to put aside the ego and like, hey, and it’s like, hey, we gotta do the things we need to do in order for us to be, to be profitable. This has been, this has been amazing and I’ve just got a few last questions here, you know, on this podcast. But, uh, what would you say is one of the biggest areas of success that you’ve had in business or like one of the key factors of your success that you’ve had and growing to 130 now breaking through some of these leadership barriers, some of these, you know, other barriers as well too in finance and paying yourself, what would you say is a catalyst for a lot of that success?

Maybe a character trait or maybe something that you attribute to you that someone else could maybe learn from.

Joe Theriault:

Yeah. You know, it’s, um, I, I, I seek, uh, you know, and I’m, I’m a low burnt, right? Like a years are just grinding can burn you. I won’t, I won’t put, I’ll fucking be real about that. Right. There’s definitely some, My drive has dropped a notch over the, over the years. Um, but, um, you know, the, the, the, the, the, the money, the money piece of it was what I was scared of, right? Mm-hmm. <affirmative>, like I, I, I had a business partner and gave half of like, I was a driving catalyst behind things, right? Like I was the one that went and drove right. But I brought someone on that was detail oriented and safe and conservative and he knew about money, right? And I wasn’t willing to confront the where my weaknesses were. I could just keep going and driving down and being a better grinder and, and a bigger asshole.

Right? Like, this way I’ve had to focus on my weakness and focus on where it’s the toughest part of going and talking to people about money and finance and like all that stuff. Like, and being able to come in and offer my business partner or buyout and feel comfortable that I’m not gonna like burn this company down. Right? Right. Like that there, there’s a, the whole piece surrounding money for me is a, is a really big thing. Yeah. It, it’s, it’s, you know, I grew up poor, right? Like Yeah. You know what I’m saying? Like, I mean, this, this shit wasn’t around 30 years. Like there were no investor meeting podcast 30 years ago. Like everyone went to work, right? You were either blue collar and that’s where you were, right? Yeah. Like, okay, maybe people bought tout buildings, but we’re fucking poor growing up, you know? So this mentality of where we’re at is, uh, I can’t even get my fucking head around it half the time. Yeah. You know,

David Richter:

You’re doing deals now probably where you’ve made that amount of money in a year before in the past, you know, like now you’re making it on one deal

Joe Theriault:

Today. The deal, the thing that I signed this morning <laugh>, Right? Like the one thing I did this morning, right? Right. Like this, this week alone, what will bring in years of, stuff, right? Yeah. Like just, I don’t even, I don’t even,

David Richter:

And I get it what you’re saying because you said that’s what you were scared of. It’s because you have a power in your hand. It’s like athletes, right? Like athletes, they come from whatever their background is to superstar them. Well, in real estate it’s your, like the athlete of entrepreneurs because you could do in one deal, like he said, he did one deal today that is like years worth of what he’s made in the past. And that’s where, that’s where it can get very intimidating. So I get it. If that’s one of the biggest areas of that, you know, being able to be, you said that being able to confront that weakness, I mean, but that’s, you, you, you sought it out. You said I need the help here. Like I’m the one, you know, you were the one to be like, Hey, I need this help cuz you knew if the business partner’s going away, I can’t just rely on him anymore either.

Right. So you took that leap of faith as well too. So I think this has been, I think like I keep saying, you’re giving hope to people no matter where they are right now, that there’s either someone that can help them or facing your weaknesses, just like you said, that is just, you know, and the thing that you’re probably scared of the most is probably what you need to help the most in order to go to that next level. That’s probably where your ceiling is. I don’t know if you felt that way before. Oh yeah. That you’ve had a ceiling and I don’t know if you’re feeling like you’re being able to break through some of those

Joe Theriault:

For for sure. You know, I I I I know there’s, there’s like ceilings and even though we’ve had to like step back a little bit this year Yeah. You know, to a degree, um, we’ve become bankable. Right. There’s some pieces there Right. Of like now I have no problems getting money. Yeah. Right. People that I wanna give me just give me money. Right? Yeah. Cause everything’s straight and everything was always straight. Cause I had a business partner and he was good with finances, but now I’m on top of it so I can go talk to people about money. Right. Right. So it’s just, um, definite ceilings and um, it’s just, uh, that’s it. Right. Awesome. You know? Right. People write seats and that’s, that’s what that my coaches right now, hands down, write people right seats. Yeah. And that includes bringing you guys in profit first cfo, right. People right seats. Yeah. Gets along with my team, you know, so it’s, um, ah, shshsh.

David Richter:

Well, and I’ll tell you too, the CFO that’s working with you behind the scenes have said like she’s seen amazing leadership growth in you as well too. So it’s like you’re taking all this that you’re learning and actually implementing it. Cuz sometimes it’s so much of a barrier to people. They’ll know what to do, They’ll have the step right in front of ’em. They literally just has to reach out and grasp it or take that next step up the ladder and they just don’t, they’re frozen there. So yeah, Joe’s a good, a good example of you just listen to the right people and do the right things and then you get the confidence to be able to go in, walk in a bank or go anywhere and say, this is what we need or start paying ourselves. Get that confidence. Man, this has been incredible because I think what you provided here today more than anything else was hope for the listener that no matter where they are, if they’re still not in real estate and they’re still in the machinist job, they can know that, hey, I want to be like Joe when I get into real estate from that first deal.

Or if I’m, if I’m like, Joe doing 130 deals a year right now, like it doesn’t have to be stressful all the time or like taking it out on the employees or sacrificing everything. So you have told a lot of stuff and this has been absolute gold for the listeners. I wanna wrap this up with one last question and that’s, since you provide a ton of value here, how can people reach out to you? Like how can they provide value to you and where would you wanna send them to? Or like what do you, you know, what do you have going on right now?

Joe Theriault:

Yep. So biggest thing, if you wanna get in touch with me, you know, Facebook me for one thing, right? I’m Joe Terrio, ipss Cash is my, my what we run under on the dba. Yep. Uh, Joe at ipss Cash. Right. And just throw something in the, in the email line. Right. Like do something that it gets my attention. Right. So, uh, you know, Profit first or David’s name, right. That’s, you know, one way to get like, get my attention, you know, there biggest thing right? Right now is I’m doing, there isn’t, I think all, all the New England states I’ve done deals in truly, and I probably, I have deals in four of the New England states right now. So New England stuff, we can cover it from a standpoint of like, do you need help with doing a innovation deal? Cause I got the brokerage, I got the attorneys that we have licensed in three states with the brokerage, right?

So we can move it through. So not everybody’s here in New England and I like to keep it that way. Um, and so New England and mobile homes, I’ve gotten a reputation, uh, for buying mobile homes in various parts of the country. Awesome. Um, in couple groups, that’s my kind of my specialty. So like inherited stuff anywhere in the country I can handle mobile homes, uh, anyone wants to need some help on. Cause I buy ’em in PO all the time. That’s been my little bit of a niche is a lot of people don’t know how to buy mobile home po um, mobile homes in po. Um, cause I told ’em they can’t, they can and I do it all the time. Yeah. And it’s just having that right relationship with the pack and making sure that you’re a business and you’re not just Joe below the flipper, they don’t particularly care for that. So those are my big like things that, um, I’m doing that if anybody wants to, to any level, Pat jv, they got a question on it, I, I’m happy to see where I can, where I can lead with it.

David Richter:

Awesome. So there you go. Reach out to him on Facebook. His last name is spelled T H E R I A U L T. So you could look him up there, get in touch with him. He’s a giver. If you realize a lot of the people that have come on the podcast like Joe, who have then not on the financial side, but just the leadership training, like that they want to help others. So if you have, you know, like if you want a jv, if you have partnership lending, you’re like, whatever. Joe’s a good investment in your time and effort and like don’t just take him out for a coffee, pay him for his time. If you’re a newbie or if you’re a seasoned real estate investor, he’d be a good partner to work with. Joe, this has been incredible. Thank you for being here today.

And I just wanted to end with this. If you are, if you’re listening to this now and you’ve ever been in Joe’s position, w2, you know you’ve been in real estate investing, if you’ve ever felt like you’re sacrificing everything, living deal to deal not getting here, paying yourself last instead of first. If you ever have felt like that, it doesn’t have to be that way. Joe is giving you hope here. You can head over to simple cfo.com. That’s where you can see if we can help you as well too. Just like the CFO’s helping Joe, we would love to be able to be there for you or at least point you in the right direction. I don’t want you living in the real estate rat race. I don’t want you feeling that stress every day that you need to. And I want you to get out of that and not sacrifice everything for your own sake. Make sure that you’re a healthy business owner. So head over there and remember to start making profit a habit in your business. And then Joe, thank you so much for being here today.

Joe Theriault:

You’re welcome. Pleasure.

Intro:

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.