Hannah Hammond - The Firm
On the Power of Having a Solid Team: "I think if you are your authentic self and you are putting yourself out there, then people who align with you are are gonna reach out to you and be like, I wanna work for you."
Real estate investing is one of the best ways to grow your wealth. But where do you start and how do you invest in real estate?
Hannah Hammond was a self-made millionaire by the age of 25, has invested in residential and commercial properties, started her own real estate brokerage firm and has build a lending company to help get deals done. On top of all of this, she happens to be an incredible person to chat with.
Like the best entrepreneurs that find success, Hannah has taken on the mission of learning more so she can share more, helping other entrepreneurs and inspiring almost everyone that is lucky enough to meet her.
Listen as Hannah shares her story, from starting and building her companies and the challenges she faced along the way. Problems are a sign of life, and it is the grace that Hannah has shown as she navigated these problems that helped her grow into the powerhouse she is.
Enjoy!
Visit Hannah at: KashedLending.com and https://realestateatthefirm.com/
Podcast Overview:
00:00 Wanted wealth, found guidance in "Rich Dad Poor Dad."
06:11 Retired lender offers private loans in Arizona.
09:38 Managing a fund requires more diligence now.
12:22 Transitioning from microloans to broader real estate funding.
13:37 Small loans have higher interest; larger loans lower.
20:20 Seeking balance beyond work-focused identity through meditation.
21:46 Authenticity attracts aligned talent through social media.
27:05 Commercial real estate sales down significantly post-COVID.
28:57 High prices persist; real opportunities require recession.
32:57 Had to self-manage finances for better outcomes.
34:03 Started own brokerage to handle both markets.
38:05 Hire values-aligned, entrepreneurial, independent, self-led individuals.
42:54 Real estate remained my consistent career path.
44:25 Partnerships are challenging; independence feels compromised.
48:08 Sharing experiences organically attracts interested individuals.
50:54 Driven by healing childhood trauma and self-worth.
56:18 Assistants handle comments; direct messages prioritized.
Podcast Transcription:
Hannah Hammond [00:00:00]:
I think if you are your authentic self and you are putting yourself out there, then people who align with you are gonna reach out to you and be like, I wanna work for you. And you almost get, like, a cult like following.
James Kademan [00:00:15]:
You have found Authentic Business Adventures, the business program that brings you the struggle stories and triumphant successes of business owners across the land. Downloadable audio episodes can be found in the podcast link found at draw in customers.com. We are locally underwritten by the Bank of Sun Prairie, Calls On Call Extraordinary Answering Service, as well as The Bold Business Book. And today, we're welcoming slash preparing to learn from Hannah Hammond, the founder of HB Capital and The Firm RE. So, Hannah, how is it going today?
Hannah Hammond [00:00:45]:
It is awesome. Thank you so much for having me here today.
James Kademan [00:00:48]:
Yeah. I'm excited to talk real estate with you because, well, it's a shifting market, but shifting in different ways that I didn't necessarily expect with interest rates going higher and then kinda lower and all that. So let's just start with the foundation here. Tell us what you do.
Hannah Hammond [00:01:05]:
Yeah. So I, I'm here local in Arizona, and I own a real estate brokerage called The Firm, and we do commercial and residential purchases, sales, leasing for our clients. And I also have a national private lending company. So we specialize in offering bridge loans to real estate investors so they can acquire value add assets at a discount, get quick cash, do their capital improvements, and then they generally will refinance us out within 12 months with a conventional loan.
James Kademan [00:01:33]:
Nice. Let's chat about the way beginning. How did you end up getting into real estate?
Hannah Hammond [00:01:39]:
So, I came from a family that didn't have a lot of money and wasn't very entrepreneurial, and I really wanted freedom in my life and was very drawn to, my best friend who had a lot of wealth and her parents her her dad owned a large company and, real estate portfolio, everything like that. And, I just started researching, like, how to build wealth, how to build, how to make a lot of money ultimately and how to have freedom in my life. And I found Rich Dad Poor Dad by Ryan Kiyosaki.
James Kademan [00:02:11]:
The Bible of Real Estate Professionals. Right?
Hannah Hammond [00:02:14]:
Exactly. Yeah. So, he's, he's a good friend today, and that book was kinda my lifeline as a child. And I decided I was gonna be an entrepreneur, and I was gonna be a real estate investor. So at 18 years old, I signed up for real estate school, and here I am 10 years later.
James Kademan [00:02:30]:
Wow. At 18, you signed up for that. That's pretty insightful.
Hannah Hammond [00:02:33]:
Yeah. Yeah. Thank you. I think, by 18, I bought my first property. I sold a few $1,000,000 worth of real estate and started doing the renovation value add, and the ball just got rolling.
James Kademan [00:02:45]:
Nice. How tell us about that process. Because I imagine when you're 18 and you go to get a loan, the bank is gonna say, what do you want? Or something like that. So I imagine that had to be a challenge.
Hannah Hammond [00:02:56]:
Exactly. Yeah. I had no no credit, really, no money other than the commission, and I had just sold. Fortunately, my very first deal was a $1,100,000 commercial property. It was a lot
James Kademan [00:03:08]:
At 18.
Hannah Hammond [00:03:09]:
Yeah. And I, it was the only person that showed up to the open house that I held for another agent at my residential brokerage office. So talk about, manifest destiny and
James Kademan [00:03:21]:
Yeah. Right?
Hannah Hammond [00:03:21]:
Hard work. Yeah. So I got that deal, made $36,000 and was able to use that. My very first condo I bought was $76,900. I still own it today. It's been cash flowing about $2,000 a month over the past 10 years. It's, you know, gone up over time, but I always have done, the short term, midterm furnished rental with it. And so I've always been able to cash flow a lot more than traditional.
Hannah Hammond [00:03:46]:
And, my mom helped me tremendously at 18. She cosigned on that loan. It was like a $50,000 loan. It was not a huge loan. And I did have you know, I got a credit card right when I turned 18, and did all the credit card tricks of, like, you know, put a few $100 on it, very low of what you're able to spend, and then just pay it off right away. I did that so I had a, like, a little tiny bit of credit. And, I think I was almost almost 19 by the time I closed on it, and then she cosigned and and helped me out and that got the ball rolling. But, I quickly learned that my own credit was never gonna get me very far, regardless of how good it was.
Hannah Hammond [00:04:26]:
And so that's how I found out about private lending, which is now the business I'm in now. And I found out about them by starting to use private lenders for my own real estate invest investments because the banks were an absolute nightmare. And as an entrepreneur, you know, we write everything off. We depreciate everything. And so it's, just a nightmare to try to get bank loans.
James Kademan [00:04:48]:
Yeah. I remember when we tried to get our first house, I had my own business. I'm sorry. 2nd house. I had my own business, and the banker just said, don't we're not even gonna look at your income. We're just gonna look at my wife's income. And I'm like, what? I think I make more than her. Yeah.
James Kademan [00:05:07]:
They're like, small business. No. Look at w two. We want w two's kinda thing.
Hannah Hammond [00:05:12]:
Exactly.
James Kademan [00:05:13]:
So it was interesting, but whatever. That's the that's the game that they have. Tell me about that financing and, the private, private financing, I should say, because that's a world that I just actually got introduced to. I'm gonna say relatively recently that I didn't even know as much of a thing. I knew of outside financing besides banks, but I didn't know it was I didn't know that it was as spread out as it is now. So tell me a little bit about that.
Hannah Hammond [00:05:39]:
Yeah. And that's the exact reason I just, started the debt fund because, it's an amazing way for investors to make really high returns and keep their cash very liquid. And if they have a self directed IRA, then it's also tax free. So it's been amazing for me. I absolutely love being the bank and same concept. I didn't think I could ever be the bank. I thought only banks could be banks, and I didn't think banks could be individual people. And if they could, I thought you'd have to be, you know, Uber super crazy rich or billionaire or centimillionaire or something to even think about that.
Hannah Hammond [00:06:11]:
But I, knew this guy local to Arizona, and I ended up using him for a private money loan, started chatting with them, and he said he had saved up $10,000,000 over the course of his career. He was kind of a retired, older gentleman, and he's like, yeah. I just, you know, get referrals from friends and family in Arizona, and I know real estate well, and I lend them, you know, up to 75% loan to value on their fix and flips. And I just charge them interest only, a point a month, and, they pay me off whenever they like, and that's it. And I'm like, okay. Well, that sounds really awesome. And so I, hired an attorney, kinda learned everything I needed to learn,...