The Essential Legal Checklist for Real Estate Investors

Title: “The Essential Legal Checklist for Real Estate Investors”

Episode: 236

Joining us in this episode of Profit First for REI podcast is Chris Johnsen. He is a lawyer in the real estate space and worked primarily for commercial real estate.

In this episode, Chris talks about the common pitfalls people go through in real estate and when you need a lawyer in your business.

Listen as he explains why you should hire a lawyer for your business contracts. Enjoy the show!

Key Takeaways:

[01:03] Introducing Chris Johnsen

[04:34] Getting into a specific niche as a lawyer

[09:03] Education as an investment

[14:52] The Golden Handcuffs

[17:21] Most common questions he gets as a lawyer

[23:20] Operating Agreement

[26:48] At what point should people get a lawyer?

[30:47] Connect with Chris Johnsen


[02:43] “I saw two things in lawyers. I saw that they provide value that is needed and are expensive.”

[09:03] “You should look at your education as an investment in yourself.”

[23:20] “Operating agreement is a contract between the company’s owners on how to run the company… there are so many pitfalls.”

Connect with Chris:

Website: https://www.johnsenlaw.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


Speaker 1 (00:00):

So if you do it wrong and you don’t make disclosures, what it means if the deal goes south, you might have to return all the money to the investor. So if they put in a hundred thousand dollars in a deal and they lose all their money, you are going to have to come up with a hundred thousand dollars out of your pocket. So hiring a securities attorney, not just a real estate attorney, but a securities attorney that knows how to do syndications is a type of insurance policy.

Speaker 2 (00:36):

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 (01:03):

We have Warrior Chris Johnson on the podcast today. Really excited about this one because he talks through the common pitfalls, the common things that people go through. When do you need a warrior in the real estate space? If you need help here, he’s got some great practical info, puts it on the bottom shelf. He’s real estate investing specific, so understands those needs there and is just no bs. Like when should you hire a lawyer and engage one on a more permanent basis rather than just for the one-off contracts. So hopefully this is very helpful to you and very practical and thank you for being a listener of the show. Hey, welcome back to the Profit first RI podcast. Have Chris Johnson today excited to talk about this because we don’t put many warriors on the podcast and it’s not by intention or design. It is though. I’m just kidding. Chris, thanks for being on the show. Excited to have you here today.

Speaker 1 (01:54):

Thank you. And if it makes you feel any better, I’ve never put a CFO on my show either.

Speaker 3 (02:00):

That’s great. Touche, touche. I love it. Okay, so being a warrior in this space, how did you get into this? Did you say? I woke up one day, I was like, yes, want to? I want to go and do this, I want to help or how did it morph into this?

Speaker 1 (02:18):

Yeah, I get asked that question all the time. So I’m a business person first and a lawyer second. Nice. My first career was really in real estate and doing that, I started about 20 years old working for a company that did commercial real estate more in the retail sector and I interfaced with lawyers. We used lawyers and I saw two things. I saw that they provide value that they’re needed and that they are expensive. So that kind of stuck in my head. Also being a business major, I think pretty much everyone that has a business degree has taken business law. I thought it was fascinating. I loved the class. It was one of my favorite classes. So that’s kind of a number two and then number three, which is really the deciding factor is my mother and she did not tell me to go to law school.


I’m actually the first lawyer in the family. But what she did say is an education is something that no one can take away from you. So when I was about that age graduating from undergrad, you make the decision, am I going to just go work or am I going to go keep going through school? I knew that if I didn’t keep going through school that I never would. And so I was like, okay, it’s now or never and a law degree is a worthwhile investment in myself. I never intended on actually practicing law at a law firm. I was just going to go to law school and then go back into developing real estate. I was going to go move back down to southeast Florida where I grew up and do townhomes and different developments like that. But somewhere along the way, an attorney friend of mine said, you don’t learn shit in law school. You really need to go practice for a while to learn the law. And so fortunately I did well and law school and decided to go practice at a firm for a while.

Speaker 3 (04:17):

How did you get into the niche of where you are today and go down that path?

Speaker 1 (04:23):

And so you mean practice areas?

Speaker 3 (04:25):

Yeah, your practice areas, and I know you would work with real estate people. I know that was a little bit of your background, but it’s like how did you pick going down into your specific niche?

Speaker 1 (04:34):

Yeah, so this is important for kids in law school or kids that think they might want to go to law school. So I’m not sure if it’s particularly helpful for the listeners, but definitely their kids and I think people should know this and it probably is applicable to any type of degree. So I’ll start here. You don’t always get to do what you want to do. Things just kind of pick you and that depends on the economy. So I think that is relevant a lot to real estate, just depends on how the economy’s doing at the time. So I was going to be a real estate attorney. I came from real estate, that’s what I was going to do. I went to intern at a big firm. I had an offer in their real estate department with the managing shareholder of that offer. What

Speaker 3 (05:22):

Year was that?

Speaker 1 (05:23):

That just taking

Speaker 3 (05:24):


Speaker 1 (05:24):


Speaker 3 (05:26):


Speaker 1 (05:28):

You can see where we’re going with this. Yes. 2008 was when I was going to start and they said, well, good news is we want you still have a job. Bad news is you’re not going to be in real estate because there is no real estate work. You are going to be in litigation. I didn’t even take trial add in law school because I was like, I will never need that. I’m never going to step foot in a courtroom, never going to do anything like that. My MBA professor urged against that. He said, you know what? This is the advice I’m giving right now is you don’t know where life’s going to take you and you said, tag trial ad you should learn how to do litigation. I was like, yeah, that’s garbage. I’m only going to be a transactional attorney. So I did a stint in litigation doing a lot of real estate litigation because we had foreclosure work and things like that. So it wasn’t like I was completely removed from real estate, but I went into litigation which definitely didn’t fit in with my disposition and personality type, but I didn’t have a choice.


I was newly married, I had a baby on the way. I didn’t have the luxury of just saying, you know what? I don’t like this so I’m going to quit. So I was like, okay, suck it up and do it. This transitions into how I got where I’m at now. I have a litigation background, but I transitioned more into into really started with employment work and then it started with corporate work and then I went in-house, meaning I was general counsel of a company. I was their employee rather than working for a law firm. So there was zero litigation. Everything was corporate work, the nuts and bolts of corporate work. And so I went from doing that to doing more transactions and now I kind of couch myself as outside general counsel as I have my own firm and I do corporate work for number of companies, but that a lot of that includes some litigation.


If it gets real hot and heavy, I send it over to litigation team. You never know where life’s going to take you. My path, I wouldn’t have picked it, but I went along for the ride and didn’t fight too much about it, and what it did is it made me very much a generalist, which is good. I’ve done both litigation and transactional work. So I think it gives me a deeper understanding of when you’re doing deals where some of the pitfalls are going to be, and unlike someone that’s only a deal person, I am not scared. I’m not as scared of a fight. I know the process. I can trust the process. I know it’s ugly, I know it’s slow, and unlike someone that only does litigation, I actually understand transactional work too.

Speaker 3 (08:21):

Yeah. Now you’re in an interesting position, I think because business owner also got an education. I feel like the rallying cry or battle cry of entrepreneurs, don’t go to college, just go out there and make the money, be an entrepreneur. Where do you sit on that side of the fence? You got the education your mom heavily fluency of. That’s something that no one can ever take away. I really like that perspective because I feel like in the entrepreneur world it’s the opposite. Don’t go to school, don’t do all that. So where do you sit on that fence there? I know for your own life which route you took, but looking back,

Speaker 1 (08:57):

So where I sit, and I think it’s a really common sense, reasonable approach is you should look at your education as an investment in yourself. So I make investments and every investment I make, whether it’s a stock or a bond or real estate, I’m going to look at the return, I’m going to look at the risk and I’m going to look at the opportunity costs. Those are really the three factors that you’re going to look at in any investment. So when I’m choosing to do my education, I want to look at what kind of return am I going to get, and a lot of that’s tied to the type of degree that you’re going to get. The risk I think would be,


I don’t know where I’m going with that, but the return, I’m definitely on that piece with your education, just look at it, return on investment, and then the opportunity cost is I guess the amount of time that you’re going to spend not doing what you’re doing. So let’s kind of boil that down into education. And I don’t mean to demean any profession because I’m truly not doing that. This is the same advice that I would tell my kids. First of all, I would discourage my children from doing any degree where the only jobs are teaching more kids how to get that degree. To me, that’s a fundamentally broken system because it’s just like feedback loop. Whatcha going to do go to college so you can work at a college to teach more kids to work at a college? That doesn’t make any sense to me.


And I also think that there are trade schools out there that are fantastic for what someone might want to do. So like a welder, you could go to trade school for welding and work in oil and gas and easily make six figures easily and do very well for yourself. So why would you go to a four-year degree just so you can go out of school and be a welder? That actually doesn’t make sense. You’re spending money, it’s not giving you return on investment and then the opportunity cost, you’re losing out on career path trajectory than if you just went in first. However, I do think college degrees and other things, open doors, being a lawyer certainly opens doors to me being on deals.


So if I was a doctor, I wouldn’t be networking with business people and they’d be like, oh, you’re a doctor really? I need to get you in on this deal. I could get a board seat of a medical tech company or something like that if it’s transferable. So again, I got to look at the transferability of my degree and what I’m intending to do with my degree. It certainly can help. So I think being a lawyer has helped open tons of doors and I think it was the wise move for me. Another thing that I’ll point out is cash. So I don’t think you should forget the value of cash. I see a lot of investors that want to get involved in the hustle that real estate and other things like that. It’s funny when you talk to people that their sole job is syndicating deals or finding investors who do they go to? A lot of dentists, doctors, lawyers. So those professions might be demeaned by other people as oh yeah, you’re going to be miserable and you’re never going to make seven, 10 figures on an exit. So you’re giving up and those professions are very cash oriented. You can make a very good living every year, but you’re giving up equity growth. You’re certainly not the tech company start off. So again, that’s like an investment. You have different kinds of investments, you have dividend stocks and you have growth stocks.


So back to that example, I think a lot of entrepreneurs tend to focus on the growth, which is fine. I think there’s nothing wrong with that, but don’t discount the value of cash, the ability to make half a million dollars a year and just shove money in deals and real estate and investments in a way it makes it easier for people to get off the train than if you had to start scrapping it together. So I know I threw a lot on the board, but I don’t think education should be totally demeaned. Of course I love education, but what I don’t like is people just going to school just to go to school. They don’t know what they want to do. There’s no path and their parents pay for it. That’s flushing a hundred thousand dollars down a toilet

Speaker 3 (14:03):

And that was a mature perspective. It’s like you have to figure in your whole plan of what you’re also thinking of doing. And like you said, you can’t dig it the four year degree if you’re going to do welding or something, that’s totally not going to be beneficial to it and that’s going to be your long-term play if you know that and if you don’t know it, it’s be cautious and maybe invest some of that time upfront. Then on the back end, I like what you said most people do demean it from the aspect of some of those high paying jobs. It’s like, yeah, but it’s just a high paying job that you’re chained to. Well, it’s also a path to becoming that and Robert Kiyosaki’s four quadrants an investor making that cash work for itself. So it’s another way to access it just if that’s the way that you’re going. So I really like that

Speaker 1 (14:47):

If you’re disciplined, David, if you’re disciplined. So what happens is a lot of these high paid professionals just end up raising their spending and so they’re constantly stuck in that Go Rob Kentucky, the rat race and I call it the golden handcuffs. But yeah, making a shit ton of cash very quickly in life can be the way to an out.

Speaker 3 (15:15):

Yeah, no, I agree. That’s so good. I like what you said, discipline. This is a profit first I podcast. So we’re trying to teach discipline on the cash side to a lot of the investors and it’s like that’s just as important no matter where you’re stationed in life is to have that discipline, especially when, and I love that you brought up the value of cash. You can’t overlook that in whatever career or path or entrepreneurship direction you’re going.

Speaker 1 (15:39):

Hence, I haven’t quit doing what I’m doing, Dave. Right,

Speaker 3 (15:41):

Right. I was just going to go into that.

Speaker 1 (15:43):

Yeah, I mean if you want hear, a lot of people want to do passive investing, which is fine, but man, I can’t support it in my lifestyle and I’ve built up some investments, but first of all, I want to reinvest my dividends. I want to reinvest my income because that compounds growth. Second, I love what I do and third man cash has its place that earning income that I can just spend on the crap and then have some leftover to invest has its place. You got to have a lot of real estate to have a lavish life on real estate, and I do. I come from a family of real estate people and they just naturally knew the live below your means mentality. They don’t drive flashy cars or any of that. They have no desire for that. So you wouldn’t know that they have millions of dollars in real estate, but you have to have tons to actually make that cash work for you and with a fancy lifestyle that the average person wants with vacations and sports cars, boats and all that crap,

Speaker 3 (16:50):

Right? Yeah. It’s one thing to get out of the rat race where you stand today. It’s another thing to have the discipline to keep building to where most of people don’t live or don’t live. So no, that’s a really good perspective. Okay. Shifting to your actual profession, what are some of the, I don’t know, the most commonly asked questions you get or the most common cases that come across your desk? How can people help themselves with some of the stuff that you might get on a daily, weekly, or monthly basis that keeps recurring popping up?

Speaker 1 (17:21):

Okay, that’s a good question. So one thing the listeners can do is go to the Johnson Law YouTube channel, that’s J-O-H-N-S-E-N. It’s with an E, not an O, so Johnson Law. And then they can also go to the Fidelity Lake Houston YouTube page. So Fidelity, Houston’s my title company I underwrite through Fidelity National Title. Johnson Law is the business law firm. I also have estate planning firm, but I’m not going to go into that for your listeners, but for the real estate stuff, I tend to, it’s either on one or two of those channels. Fidelity tends to be a little more realtor focused. Those are a lot of the clients. Johnson law tends to be a little bit more like investor focused, but when I see a reoccurring issue, something that pops up a lot, I will spend the time to make a video and put it on there.


It’s hard. So what we do is really is so broad that there’s so many things. Let me say that as a firm, that is hard for me to really drill down on some things and go into detail, but I think what I might just do if this is more real estate focused is go over some of those issues that I see commonly come up. Okay, so when you’re a real estate investor, I think definitely just basic corporate formation work. You hear a lot of asset protection attorneys talk about it like it’s asset protection. It is, but it’s really, it’s so basic. I just view it as corporate work and that’s just creating buckets, different buckets for different things. So you’re isolating your exposure to that bucket for risk purposes. Then you can get real complicated with asset protection and there’s difference between different types of trusts and family limited partnership.


I’m not going to go into that stuff, but that is a topic that’s of interest to investors, something that we handle. Series LC is commonly used in real estate, so that’s a common topic. That’s something that I have on the YouTube channel as well as some tax deferment strategies like 10 31 and some other tax things you’ll find there for real estate. Other things of interest? Well, if you have a real estate business, one thing of interest right now, and I’m going to present it at family David, I decided this is going to be the topic of the masterclass. I think I have in a month or something. I’m not sure. The FTCs ruling on non-competes is very interesting and that’s very timely.


I think a lot of people, I’m going to wait until the C said what they’re going to do. They haven’t done it yet, and you got to wait for the rule to actually come out. And then there’s going to be a lot of nuances on non-competes. So the umbrella that non-compete falls under is restrictive covenant and there’s different kinds. There’s a confidentiality agreement as a type of restrictive covenant, a non-solicit as to customers as a non-solicit as to employees as a type. None of those that I just listed were a non-compete, and I don’t think that was intended by the FTC to ban those types of restrictive covenants. So there’s a lot of other tools in the toolbox. Then you have your non-compete and those are, they’ve been pretty much wiped out and that’s okay. There will be some exceptions to that. Look, lawyers aren’t subject to non-competes and they’ve been going out without ’em for a while. And let me say too, that everyone’s already gearing up to fight this ruling is unconstitutional because it came from an agency and it didn’t come from a legislature and there’s going to be other issues. I think that’s going to be really big over the next couple years for business people.


Another topic that comes up a lot for real estate people, just the basic contracts. I find that real estate investors tend to, they’re very DIY type of people. That’s just kind of the mentality that they are and there’s nothing wrong with that. But no, they’re cheap. Maybe they’re falling profit first too. Well, I don’t know. So the investment in the contract, I find that oftentimes real estate investors will do their own and they’re just really bad. I see ’em all the time, and if you get sued over one, it’s going to be like 10 or 20 times at least than what you would’ve just paid to actually have an attorney do it. Chad GBT might do a pretty good job. I don’t know. I’m sure with certain provisions and if you actually know what you’re looking at, you could use generative AI to create some decent contracts for your deals that work for you and you have some outs.


So back to corporate governance, anytime there’s more than one member of a deal, there should be a good operating agreement. That’s another one. I see tons of people screw up on that. Tons of litigation pop out of that because people pull a document off legal zoom and then they are like, I think there’s a common understanding amongst people like, oh, well an operating agreement’s just an operating agreement. It’s a template, which kind is true with bylaws. So I can see where that assumption’s made an operating agreement’s a contract between the owners of the company on how to run the company, and there can be so many nuances in it and there’s so many pitfalls and I’ve just seen it time and time again. And if you go to a lawyer after you signed it and there’s a problem, it is too late. I’m sorry, the answer is going to be, I’m going to need a $20,000 retainer to get where you could have done in the beginning for much less.


And it is just unfortunate. If whatever attorney tells you that is not taking advantage of you, it just is what it is. It’s just going to be expensive to fight it. I’ll end with this so I don’t ramble on too long, but syndicating deals, syndicating the real estate deal does not simply mean that you create an entity and have multiple owners. Anytime you are bringing in money for a deal, you are selling securities. In exchange, there is some, the securities laws are being implicated, which means that there are certain disclosure requirements that need to be made, and the extent of those disclosure requirements are very dependent on kind of more detail. So I’m just going to be real general about it, but real estate investors need to know that now. So who cares? Who cares if I do it wrong? So if you do it wrong and you don’t make disclosures, what it means if the deal goes south, you might have to return all the money to the investor. So if they put in a hundred thousand dollars in a deal and they lose all their money, you are going to have to come up with a hundred thousand dollars out of your pocket. So hiring a securities attorney, not just a real estate attorney, but a securities attorney that knows how to do syndications is a type of insurance policy.

Speaker 3 (25:22):

No, that’s really good. Now I like this. This is good because what I heard, a lot of the most common things, the corporate formation in that structure, the asset protection, the series LLC, the non-competes is a big one right now. Contracts. Oh, man, you touched on something there. I mean, if you’re listening to this and you don’t have good contracts in place, I think the person that I used to work with just he had spent thousands of dollars on his contracts for real estate. He was doing a bunch of different types of exit strategies, so it wasn’t just one templated contract. So I was like, he took that super serious, and I’m like, I just wish everyone would be as serious as that, the operating agreement. That was really good. I like how you said that. It’s literally that agreement between the owners of the company.


If you’ve got multiple people on that, that is your binding agreement there. And it’s not just a legal zoom thing where you’re just like, all right, yeah, let’s just spit that out. That was really good. And then the syndicating deal is like you could get real into trouble real quick, real fast for a lot if you don’t have the right people there. No, that was good stuff. I did want to ask at one point, should people get a lawyer or you guys or, because I know there’s probably different tiers of lawyers too because like you said, illegal zoom, which is like anyone can go out there and try and play a lawyer themself, which is also bad, but where do you see people on that scale, especially I would say in the real estate world since it’s that our show is around that

Speaker 1 (26:48):

I hate to be overly cautious and I’m really not. Maybe I’m under cautious. I think my answer is going to be pretty common sense and no one should rely on this. This is literally my opinion. I think for the average person, just forming an entity is pretty simple. I think they can figure it out. If it’s only one member, one owner, if it’s multiple owners, I think you should use an attorney for the operating agreement. I’ve really never, I’d just say I, I’ve never seen a non-attorney do operating agreements. Well, I I’ve seen them doing pretty good, actually. There’s one old guy I’m thinking of that’s pretty darn good, but he still makes mistakes that could be costly. So once you do those things for the majority of people, the next question is, and so you need an attorney to answer your question in the beginning a little bit.


Okay, just a little bit. There’s really not much money to spend, so what’s the next thing you could do? You could do, well, are you going to have employees or subcontractors? That’s kind of my question. If you are, you might need an employment agreement, subcontract agreement, and you might have a lease issue, some lease negotiation. Other than that, I can’t see you spending that much on a lawyer in the beginning of a company. And real estate is a funny business. I would say most real estate is not a business. I actually won’t be in real estate unless it’s not a business. I don’t want any more businesses. I have a title company that’s in real estate industry. I don’t need my real estate property to be a business for me. So I like ’em to be really passive. You’re not going to use any lawyer stuff for that.


If the more active you are in real estate, the active the business is, the more you’ll have. I think the general threshold for me is when a business reaches a million, now they need legal services on a pretty consistent basis, and this is the part that you got to just take with a grain of salt. I would not fault anyone for pretty much doing things themselves except for the operating agreement. I think they should invest in that, but for the majority, just kind of scrapping it together up until you get to that million mark. And then what a lot of companies do is they’re like, look, we scrapped this together. We’ve been in business for five years. We’re now hit a million because a million, you have some extra money to spend. You’re feeling good. You’ve got your stride. So now they can come in and just take a deep breath and they can say, look, can you just audit everything we have? And they’re going to spend some money to do that. They’re willing to. They don’t care at that point. They have the money. But I think it would be unrealistic for me to go out there, started businesses before. I know I’m not just some voyeur that doesn’t understand these things, but if you’re going to start a business, I mean, why are you going to spend five grand a month on legal or make a $30,000 investment when let’s be real. A lot of businesses fail. You may even pivot in six months to do something else.

Speaker 3 (30:17):

That’s a good perspective. I like how you said the million mark. You’re kind of getting hit in your stride there and the end, you’re more set like you said, because if you’re before that, you could be going the different ways now. I like that a lot and I’m sure that’s where you probably help people there a lot. Is that million or over as well too. Just the last question here. It sounds like people can go to your YouTube channel to find more out about you, but how do you want people to connect with you? Is it just YouTube or do you want to go to a website or is there somewhere else?

Speaker 1 (30:47):

We can go to the website as well. Johnson law.com and it’s SEN. There’s a scheduling link on there, like a widget, and it goes to my calendar and you can schedule a 15 minute call. Talk to me about anything that’s free, 15 minute consultation, happy to talk to anyone. I do what I do and love what I do because I just like businesses. I like business myself and doing what I do. I get to live vicariously through a lot of people. It would be impossible for me to understand this many types of businesses, but for being an attorney or maybe an accountant, accountants and CFOs do as well, and consultants. I find that we have very holistic understandings of different industries because we work with so many different industries.

Speaker 3 (31:37):

Yeah, no, that’s really good. So you can find him at, that was Johnson Law, so with an SEN at the end of Johnson, and then johnson law.com. He’s got the YouTube channel as well. And then Fidelity Lake Houston was another YouTube channel you gave during the episode as well too. So it’s how you can connect with Chris. Chris, this was awesome. Thanks for imparting wisdom here and giving very practical stuff of what people are usually searching for. What are the first things or when should you engage with a lawyer as well? I thought that was good and not telling them, oh yeah, you need it from day one all the time. Give us good stuff. So make sure to go to his site and remember if you need help on the financial end, if you’re on your way to that million and wanting to keep more of what you’re making, go to simple cfo.com. We can help you from the CFO and the financial department perspective. We want to help you get to where you want to be. Chris, thanks again for being a great guest.

Speaker 1 (32:30):

Thanks for having me on. I appreciate you for

Speaker 3 (32:32):

Sure. And remember, if you’re listening, make Profit a Habit in your business. Thank you very much.

Speaker 2 (32:39):

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.

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


[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


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.


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.


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.


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.


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.


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.


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?


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):


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.


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.


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.


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.


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.


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.


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.


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.


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.


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.