Big Law Capitalist

We have DeRosa Group CEO & BiggerPockets Contributor Matt Faircloth on the show!  Real estate is a powerful vehicle for transformation. It can provide stability and security that a family needs to get ahead, and it also creates opportunities for entrepreneurs to build wealth. When we invest in real estate, we’re not just helping ourselves—we’re helping to make neighborhoods better places to live.

That is the mission statement that defines this episode. In this episode, Matt Faircloth shares his journey and tips on how to transform lives through real estate.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[08:46] How to Scale Smartly

Investing a large amount of money is a behemoth to manage. You have to work your way into it. Start small and do deals with your own money. Double your portfolio every time you do a deal.

[20:37] Investing with DeRosa

Some reminders for people who want to invest with the DeRosa Group include a.) Be patient. It takes time to build cash flow. b.) They invest in specific markets so you have to be okay with their markets because they have assets and operations in place already. c.) Believe in transforming lives through real estate.

[24:20] The Current Real Estate Market

The real estate market is slowly but surely coming back to a level of reasonability. But it does not change overnight. You must be patient and creative. Look at other asset classes besides housing. Find deals that make cash flow on the first day.

[32:26] Create a Positive Mindset

Your thoughts and words create your life. So try to think and speak optimistically. Things work out when you think and speak positively about things. Focus on what you want and fight for what you believe in.

Notable Quotes:

[10:36] “Put your ego down and just double your portfolio every time you do a deal.”

[29:27] “Find deals that make cash flow day one.”

[32:39] “My thoughts and words create my life.”

Resources Mentioned:

BiggerPockets

Raising Private Capital: Build Your Real Estate Empire Using Other People's Money by Matt Faircloth

Rich Dad Poor Dad by Robert Kiyosaki

Conversations with God by Neale Donald Walsch

Reach out to Jeremy on LinkedIn and Instagram

Finding your niche as a real estate investor is important to pave success, and the short-term rental space is a lucrative space to consider if you know how to do it! Once you learn how it works, you will see how much capacity it has to bring in BIG amounts of cash flow. The question is, how do you begin?

In this podcast episode, Graham Singer, the co-founder and co-CEO of real estate investment firm Blue Pine Advisors, joins us to talk about his journey investing in the short-term rental business. He tackles the importance of understanding the market to find the niche that works for you, finding the right people to do the investment with, and finally, overcoming the fear of taking big risks to deliver bigger returns.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[09:04] Lessons from the First Property

Go for an easy and low-risk property for your first investment. The first property is always a lesson to learn from - how to purchase, renovate, manage, refinance, and repeat. Over time, you’ll learn how to achieve bigger results.

[20:06] Finding Your Niche

It’s not all about just buying the first property you set your eyes on and turning that into a business. You need to find your niche by understanding how the market works. Graham decided his niche would be in luxury short-term rentals that can house a large group of people. He understood the high demand and low competition in that space. He also focused on purchasing properties in luxury locations and renovating them with luxury amenities, staying true to his chosen niche.

[28:42] Find the Right People to Do Business With

There are benefits to purchasing an Airbnb individually, but there are far greater advantages when not investing alone. Funding and management become much easier. Aside from partner investors, you’ll also want to connect with property managers, maintenance groups, etc. Expand your list of buyers and your business network.

Notable Quotes:

[20:53] “The whole logic with our investment strategy is there are far fewer luxury short-term rentals than there are studios.”

[29:52] “If you do go out in Airbnbs, you have to climb the algorithms. So your first few months aren’t going to be your best months.”

[31:48] “I would encourage people not to go out and do it yourself. Invest with you, invest with me, and let us do it because there are a lot of nuances.”

[41:01] “If you see something that’s probably too high to believe, it probably is.”

Links to Resources:

Connect with Jeremy: LinkedIn

Big Law Capitalist: Instagram | Apple

Connect with Graham: LinkedIn

Blue Pine Advisors: Website | LinkedIn

Funds: Private Equity, Hedge, and All Core Structures by Matthew Hudson, available on Amazon

AirDNA: Short-Term Rental Data Analytics: Website

The differentiator between good investors and great investors is the ability to spot opportunity in places others may not be looking.  This applies in traditional real estate and in the PropTech space.

There are no easy answers, but if you’re willing to work hard and think outside the box, you can reach extraordinary levels of success.

In this episode, Paul Wakim joins us to talk about how he entered into real estate investing and ultimately co-founded TwnSqr, a PropTech company. He discusses his entrepreneurial journey from starting a successful real estate photography company to developing a tech start-up that is disrupting the $226bn real estate sales and brokerage industry.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[06:30] Why People Sell

Real estate would not exist if people did not want to sell their homes. So Paul learned how to code and built an algorithm to interpret the reasons people want to sell and how to find motivated sellers.

[09:15] Defining “Wholetailing”

Retail real estate is the traditional act of buying and selling real estate. Wholesale real estate is selling the contract to purchase before you purchase it. Wholetailing involves finding motivated sellers, purchasing the property, and then selling it to a buyer for a profit immediately after purchasing it.

[17:05] Exploring the Benefits of TwnSqr

TwnSqr is a marketplace for real estate investors and sellers to buy and sell properties themselves. They also have tools to support investors.

One of the defining tools of TwnSqr is that real estate investors can bring a property to the platform as well as their buyers list. Users are also able to share assets with each other. That allows investors to make connections and collaborate. TwnSqr is aiming to own the off-market inventory space in PropTech.

[26:09] What Drives Paul

He simply wants to have freedom of choice - to do exactly what he wants to do whenever he wants to do it. And the only way to get there and achieve that pure freedom is through hard work. He is now working remotely and can travel freely.

Notable Quotes: 

[8:01] “There is no such thing as real estate if somebody doesn’t want to sell their house.”

[21:23] “The guys that transact in high volume that keep their buyers continuously happy, they’re the ones that are getting the most value from the platform.”

[27:29] “I want to be able to do exactly what I want to do whenever I want to do it. And the only thing that I’ve known to get me there is just brutally hard, hard work.”

Resources Mentioned:

BiggerPockets

TwnSqr

Paul Wakim: LinkedIn

Reach out to Jeremy on LinkedIn and Instagram

Connect with Paul on LinkedIn.

Apartment syndications are one way to substantially diversify your real estate portfolio and access the immense benefits that commercial real estate ownership can provide. It allows you to hold different assets in your portfolio without having to be on-site or hyper-familiar with the particular location of the investment. However, most people still do not understand how it works.

In this episode, Jonathan Tonks joins us on a deep-dive into the syndication model — its benefits and how it helped him aid more people from a financial standpoint.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[11:11] Jonathan’s Investing Strategy

His early mentality was to look at 20 to 50 assets available in his local market. However, his mentors taught him to aim for better growth markets and opportunities. This means buying higher price points and diversifying geographically.

[13:28] Defining Syndication

Syndication is an incredible way to gain substantial wealth and exposure to real estate. Simply said, syndication is partnering with individuals to purchase and acquire an asset that is not necessarily real estate.

[17:25] Why You Need to Diversify

If all your assets are centered in one city, you will be capped by the limits of that city. This is why it’s important to have assets in different areas. And this is where the syndication model comes in handy.

[19:22] Two Types of Partners

The syndication model has an active partnership team and a passive partnership team. The active group or the general partners (GPs) consists of everyone who is part of the acquisition. The passive group or limited partners (LPs) consists of the people who are contributing equity capital to help close the properties.

[26:21] Jonathan’s Underlying Mindset in Syndication

Jonathan believes in the service mentality. He wants to introduce syndication to people because he knows it can change both lives from a wealth perspective. It is less of the money aspect and more of building a relationship with his partners in the long term.

Notable Quotes:

[8:32] “Get your money working at a good number and continue to do that because over time that's going to build wealth. That's how you obtain that substantial number.”

[8:54] “If it’s getting you in a better position than you otherwise would have been in, that’s a good house hack. That’s a good investment.”

[31:09] “That's how I sort of approach everything every day: service abundance. And from there, we can all win. Right? There's no zero-sum game.”

Resources Mentioned:

Rich Dad, Poor Dad by Robert Kiyosaki

The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges

Provision Space

[email protected]

Reach out to Jeremy on  LinkedIn and Instagram

Connect with Jonathan on LinkedIn and @provisionspace 

Embracing and enjoying the process is critical to achieving greatness, which applies in your everyday life and in real estate. Your circumstances will never be perfect, so you must learn to enjoy the discomfort in your pursuit of self-improvement and, ultimately, in your pursuit of greatness.

Joe Kovacs, American Shot Put World Champion and Olympic Medalist, joins us in this episode. He shares his “pursuit of greatness” mentality that helps him power through challenges in order to constantly improve himself, both in his sport and in investing. He relates this way of thinking with how he approaches real estate investing.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[11:49] The Importance Of Seeing The World

Joe and Ashley’s careers take them around the world. He believes going to different places will benefit his kids because it will help widen their perspectives.

[14:09] Measuring your success against yourself

Joe loves how the shot put has a definite measurement of success. For example, you could have two not-so-good teams playing basketball and still get a winner. In the shot put, you put yourself up against a constant, all-time measurement.

[26:00] Embrace The Grind, Work, And Discomfort

Joe emphasizes the need to embrace the discomfort in trying to improve yourself,as well as when dealing with real estate investing. Expecting everything to be perfect will get you nowhere. Instead, you must put in the work and trust the process. Familiarize yourself with the growth opportunities that discomfort can bring you.

[38:29] The Exciting Part About Real Estate

Nobody ever really computes the principal paydown for real estate. People just focus on investment returns or how much a house could sell for. Joe thinks this is one of the best parts of real estate. He can have other people pay his bills for him and generate net worth and value for his family.

Notable Quotes: 

[09:24] “I feel like there's gonna be all these little moments along the way that just kind of take your breath away and put things in perspective.” — Joe

[15:52] “Kind of what I've learned from my sport is I'm constantly putting myself to a test.” — Joe

[17:42] “If I didn't have all those losses to get to this point, I wouldn't have had the current win.” — Joe

[26:55] “You have to be willing to get to that grind to get to the adaptation because just expecting to be better - that's a false game.” — Joe

Resources Mentioned:

Reach out to Joe: Website | Instagram | Twitter

Reach out to Jeremy: Instagram | LinkedIn

Experiencing both poverty and wealth in one lifetime provides a broad perspective on life. It allows you to see the importance of showing up, taking advantage of opportunities, understanding the value of building wealth, and moving through life with a true sense of appreciation. It also shows you the power that empathy can have on you and others.

Josh Nadzam, a professor at the University of Kentucky, former D-1 collegiate athlete, and founder and Board President of On the Move Art Studio, joins us on this episode. He shares his incredible journey from poverty and hopelessness to achieving extraordinary success, and the mindset that was required to make it happen.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[06:14] Josh’s Early Years

Josh had a rough childhood and grew up in a neighborhood riddled with crime, violence, and drugs.  His first eighteen years involved poverty and an unstable family situation, more so due to his father. He did well in school but got kicked out of class and got into fights. His basketball coach was one of the first positive male influences in his life.

[14:05] Why Showing Up Is Crucial

So many people show up every day working tirelessly, even without the assurance of results. Think of those trying to develop a cancer cure. Josh finds this inspirational. That’s why he wants to show up every day and grow old knowing he gave his all.

[24:06] The Importance of Investments

Growing up wasn’t easy for Josh, partly because of his family’s finances. With Jeremy’s help, he began making low-risk investments. He invested when he had a little extra cash  and saw it grow. That highlights how big of a help passive income is.

[28:05] Empathy is Critical to Achieve Success

Josh believes being poor takes much more work than most people realize, especially after experiencing it firsthand. He also saw it with how his mom had to work herself to the bone when he was younger just to make ends meet. Not only that, Josh calls on everyone not to judge those in poverty.

Notable Quotes:

[04:25] “I wanted to be the helping hand as much as I could to help people in similar situations like mine.” — Josh

[09:31] “If you plot my trajectory, that was one of the points where, suddenly, things started to go up because it was really one of the first positive male influences I had to kind of stabilize me.” — Josh

[14:14] “I don't know how to solve racism and homelessness and poverty, but I want to try my best to contribute to those solutions.” — Josh

[14:30] “There are so many people who show up every day trying to find the cure for cancer, and they have no idea if we actually will in their lifetime, but they keep showing up and they keep testing things…[I]f they are showing up for that, we all have to show up” — Josh

Resources Mentioned:

On the Move Art Studio: Website | Facebook | Instagram

Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones by James Clear

Reach out to Josh:  Website | Facebook | Linkedin 

Reach out to Jeremy: Instagram | Linkedin

What is your "why"? What is the one reason you get up in the morning and do the things you do? Our "why” is defined by our values and beliefs. In a way, it defines who you are. It's what drives you every day to keep going and is what gives you direction amidst the chaos life brings. That's why, in the end, your motivation is only as powerful as your "why."

In this quick episode, your host, Jeremy Tomes, shares a piece of big family news and a special announcement! He also thanks you, all the listeners, for the continued support and gives some updates on the upcoming episodes.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[00:15] Special Announcement

Jeremy and his wife are delivering their third child this week! He wants to make sure he's 100% present for his wife during this journey.

[00:42] What’s Coming Up

The podcast will be back next week with a great lineup of new  topics and guests. There's a lot more to come that will help give you the tools to continue your path toward financial freedom and building a passive income empire!

[01:29] What’s Your “Why”?

Your motivation is only as powerful as your “why”. What’s your “why”? For Jeremy, it’s family. Your “why” is defined by your values and beliefs.

Notable Quotes: 

[00:51] “Our focus has always been making sure that you have what you need—tool belt—you have the tools in your tool belt to continue your path towards financial freedom, building passive income, sort of breaking the golden handcuffs.”

[01:30] “Your motivation is only as powerful as your ‘why.’”

[1:48] “I want to know your “why” because that is going to drive whether or not this thing works out—you're always motivated as your ‘why.’”

Resources Mentioned:

Reach out to Jeremy on LinkedIn and Instagram

What’s the best way to add significant value to single-family properties?

Some people might say that remodeling is the answer, but in reality, it’s all about the comparables. As a value investor, you need to be well-versed in comparing your property to others in your area and finding creative ways to add specific value to supercharge your returns. But it can be tough to determine what a property could be worth, and lacking that knowledge can mean you are leaving $$$ on the table.

In a competitive market, it can be tough to find high upside value-add properties. But if you know how to compare property comps, you will be one step ahead of the game and in a much better position to spot hidden value. In this episode, Matt Graves shares his tips and strategies when it comes to “running” comps and finding value in single family investing!

Here are some power takeaways from today’s conversation:

Episode Highlights:

[04:33] Doing Market Comparables

Comps are sold houses in the same general area of the property you are looking at. When doing comps, stick to the same neighborhood and go off the same square footage of your property. Check the MLS to view new sales and comps. Ideally, you should look for comps that are within three to six months.

[10:51] Seeing Value in a Property

They purchased a 1300-square foot property. Their stager lived right next door to the property and they got information about the renovations and quality of their house. Thus, they knew what to do with the property they had bought. There is no better comp than the house right next to your property.

[17:03] Assessing Rental Comps

Use platforms to find out the price, area, and similar properties for rental comps, such as:

Finishes come down to what kind of appliances and furniture you have in the property. For rentals, focus more on kitchens and bathrooms. Putting stainless steel could give you an edge. But do not overdo it and spend only what you need.

[24:04] Connecting to the Right People

If this is your first rental or flip, talk to a realtor to learn. Property managers are a good source as well, as they deal with properties on a daily basis.

Notable Quotes: 

[3:29] “You can’t really figure out if it’s a good deal or not if you don’t know what the property is going to be worth after you’ve done your business plan.”

[10:22] “It’s all about seeing value in places that other people might not or other investors might not.”

[15:36] “You have to sort of see opportunity when it presents itself to you. And a lot of times, that opportunity is not the same opportunity that other investors are seeing.”

[23:09] “In some cases, there are fantastic comps. You have to sort of get really creative with the value of these properties and what you think they will be.”

Resources Mentioned:

Rentometer

Reach out to Jeremy on LinkedIn and Instagram

If you have cash or assets just sitting on the sidelines not working hard for you, you need to consider private lending as a strategy. As a private lender, you can leverage your assets, be it cash, property, or relationships, to invest and grow your passive income and wealth. You can finally make the interest rates work for you by earning above-average interest rates without lifting a finger. With private lending, you become the bank.

In this episode, I dive into the strategy of private lending, share my own experience as a borrower and how you can earn secure, profitable, and passive income as a private lender, and touch on some of the things you’ll need to watch out for when thinking about private lending.

Here are some power takeaways from today’s conversation:

Episode Highlights:

[05:24] What is a Private Lender

A private lender is a person who lends money to qualified real estate operators for an above-average rate of return. Make the rules and be the bank when you lend your money. This completely passive income can be structured to be tax-advantaged.

[09:09] Private Lending as Passive Income

Jeremy shares the story of how one of his friends put his assets to good use with private lending. His friend took out a home equity line of credit (HELOC) and used what he borrowed to grow his wealth and passive income. He was able to pay the debt service payments with cash earned from his private loan and reinvest the excess cash flow from his investment.

[14:20] The Advantages of Private Lending

Private lending can be a great strategy to add to your portfolio. Enjoy its rewards without having to lift a finger. Be smart and savvy about how you invest your money. Here are a few reasons why it’s a great opportunity for you: 1) Completely passive income; 2) Above average returns, 3) Secure your investment with collateral; 4) Price your risk by earning higher rates of return on riskier investments; 5) Short-term investment; and 6) Structure it the way you want.

[20:02] Private Lending Options For Anyone

With private lending, you can put your money to work. However, it’s not just for those with tons of cash. Leverage your assets and invest them at a higher interest rate. From properties to a Self-Directed IRA, you have a lot of options to invest with a private lending strategy.

[25:02] What to Look Out For

If you want to put your money to work with private lending, make sure you have proper legal documentation. Talk to your attorney and keep your investment protected with a security instrument and promissory note. Work with a qualified real estate operator who knows what they’re doing and is good at what they do.

Notable Quotes:  

[5:53] “You’re the banker and what’s cool about it is you make the rules.”

[14:24] “The reason it’s such a cool strategy is obviously the passive nature of it. But there’s also another component. The security of it.”

[20:25] “You’re burning money at this point. Inflation is tearing that money apart. Put that to work.”

[28:42] “If you want to add substantial passive income, you have to start thinking about these sort of options.”

Resources Mentioned:

NuHomes Capital Management

Reach out to Jeremy at LinkedIn & Instagram

The best way to predict the future is to create it. And that’s exactly what successful real estate investors do. Sitting around and waiting for things to happen will only get you so far—or nowhere at all. You have to be proactive and put in the work if you want to see results. By shifting your mindset and growing, you would be well on your way toward living the life you want.

In this episode, Tyler shares his journey from corporate to real estate. He talks about how you could shift your mindset and harness the power of learning and growth to create a successful life and business.

If you want to learn how to thrive in real estate and life, tune in to this episode!

Here are some power takeaways from today’s conversation:

Episode Highlights:

[09:25] Entering Real Estate

Upon entering real estate, he began reading up, hiring coaches, and making connections. Most people are not taught about growing their assets and passive income. Real estate is a smart way to grow wealth.

[13:27] Taking Action

Don’t tolerate your circumstances. Moving from hope to action can cause discomfort. But discontent can be a gift as it leads to progress.  When Tyler switched to real estate, it was an uphill climb premised upon action—such as building relationships, learning, and growing.

[18:51] Clarify Your Intentions

Be clear about your intentions. When you have clear intentions, you attract what you want. Real estate could be a vehicle toward designing the life you want to live. Use your mind to create greater outcomes. Invest in your learning and growth.

[25:48] How CF Capital Started

CF Capital was built in January 2020. Currently, they have over 1000 units. Their goal is to add 4000 more units. They believe that the more they grow, the more they can make an impact. They seek to elevate the lives of investors and provide access to opportunities for others.

[29:42] Asking Powerful Questions

Most people have doubts and fears about investing. Ask yourself:

Asking yourself powerful questions allows powerful opportunities to answer them. Enumerate the top 3 things that could inspire you. We all have infinite intelligence—tapping into it through our subconscious is powerful.

Notable Quotes: 

[07:53] “Ultimately, everything happens for us. It is a blessing if you look for it especially.”

[22:22] “The business itself, this real estate business, can be a vehicle towards designing a life.”

[26:58] “The more that we can grow, the more we have an opportunity to make an impact.”

[31:07] “When we ask ourselves powerful questions, we find powerful opportunities to find those answers. And all it takes is a powerful question.”

Resources Mentioned:

CF Capital

Elevate

Rich Dad, Poor Dad by Robert Kiyosaki

Think and Grow Rich by Napoleon Hill

Tyler Chesser: LinkedIn