Big Law Capitalist

Most people do not accurately understand what it takes to start a successful business.  The sacrifice can be taxing.  In theory, you come up with a brilliant idea, put some money and a little effort into it, and wait for the money to start rolling in. Unfortunately, that’s almost never the case — in reality, many businesses struggle right out of the gate.  The successful business owners are students of their craft, and their determination during the challenging periods is what allows them to achieve great success.

In this episode, Chris shares his journey in entrepreneurship, building his company, ProspHire, and investing in real estate. He talks about the challenges he experienced along the way and the priceless lessons he learned from his experiences.

If you want to learn how to build business and personal success, tune in to this episode!

Here are some power takeaways from today’s conversation:

Episode Highlights:

[05:47] Building ProspHire

It’s challenging to sell professional services as they are intangible. Chris spent several years in Deloitte Consulting and gained a lot of experience. He had three failed businesses before he founded ProspHire.

Whatever capitalist venture you go into, you need to go in with both feet. Businesses are built on strong relationships with colleagues and clients. Tell the world what you want to do and others will help you.

[12:42] How to Create a Good Business

Hire the right people then get out of their way. Finding someone competent allows them to replace you so you can work on the business instead of in it.

[16:27] Getting Into Real Estate

Chris finds real estate fun. He also realized the benefits of real estate:

[22:49] Learning the Game

You need to learn the game. Do your research. Surround yourself with the right people. If you hang with five wealthy people then you will be wealthy someday. Find people with similar goals that inspire you.

[27:49] Advice for Aspiring Entrepreneurs and Investors

Success is different for everyone. Chris considers three factors:

Finding something where all those three factors overlap is success for Chris.

Notable Quotes:

[12:43] “I think the recipe for a good business is hiring the right people and getting out of their way.”

[16:44] “You shouldn’t dabble in things that aren’t fun or aren’t interesting or you’re not good at.”

Resources Mentioned:

ProspHire

Chris Miladinovich: LinkedIn

About the Guest

Chris Miladinovich is the Principal and Chief Operating Officer of ProspHire. With more than 16 years of experience in leading large-scale, complex business transformations, he is an expert at building strong teams of professionals. He is passionate about leaving organizations better than he found them.

He serves as a Board Member of the Pittsburgh Entrepreneurs’ Organization. He is also a commercial pilot, certified flight instructor, real estate investor, and the Treasurer of the Condor Aero Club, Inc.

The journey to achieving your goals takes time and effort. It’s easy to let fears and worries control your decisions. I didn’t let fear stop me from making his dream lifestyle a reality. His mindset and experience have brought him financial freedom and the opportunities to achieve his goals.

In this episode, Jeremy Tomes shares his journey in real estate. He talks about key lessons that played an important part in his success. Listen to his advice on setting goals, investing, and developing a growth and abundance mindset to create your own opportunities.

If you want to know more about the mindset to achieve your goals, then tune in to this episode!

Here are some power takeaways from today’s conversation:

Episode Highlights:

[04:21] Jeremy’s Journey into Entrepreneurship

Jeremy has always had an interest in entrepreneurship and real estate. Getting into law school, Jeremy continued to look into real estate. During his summer internships, he worked  as a finance attorney and gained experience. Despite this, he came to realize the work, stress and tough lifestyle of a professional.

[11:32] Clarity From a Goal

Jeremy went through the growing and learning process in his career. Fear of losing his job motivated him to grow. What he needed was clarity on his long-term goals in life. Jeremy realized he didn’t want to live a life without control. He didn’t want to lose his best years working and grinding.

[14:24] Leveraging Your Professional Career

You have the ability to leverage. Jeremy first invested and purchased a property with a great deal. But he found he was a terrible operator. Using strategy, he found how to use cash refinance and gain cash flow from his property. Now he has reached his goal with several businesses bringing him passive income.

[22:11] Becoming Mindset Driven

Put things in place so opportunities may come to you. Reflect on how to make your lifestyle and work more hyper-efficient. Develop an abundance mindset and understand the impact of passive income.

When you invest in other people, they reciprocate. The service mentality and abundance mindset gives the right approach to create the lifestyle you want. Being mindset-driven Jeremy has grown his portfolio and created opportunities for financial freedom. Now his goal is to continue to grow and have a legacy.

Notable Quotes: 

[07:21] “I work crazy hard, more than happy doing it. But what I wanted was a hyper-efficient approach to work.”

[13:17] “ I didn't think I wanted to look back on life and think I lived a life over which I had no control.“

[24:43] “We've been able to grow something substantial, just simply based on the fact that we had a service and abundance mentality.”

[27:37] “When you've focused on a goal, it's all mindset-driven.”

Resources Mentioned:

Jeremy Tomes: LinkedIn

The 4-Hour Work Week by Tim Ferris

The Boon on Investing in Real Estate with No (and Low) Money Down By Brandon Turner

Do you want to succeed in real estate investing? You need to build and leverage relationships.

It’s not enough to know a few people in the industry — you need to consistently develop relationships with those who can help you level-up your wealth, and who you can help do the same! Why? Because relationships are the key to getting involved in game-changing deals.

In this episode, Rick Perez, Senior Vice President at loanDepot, joins us to share how he started investing and how he leverages his relationships to access high-level deals. Knowing the right people who can point you in the right direction could open many opportunities in the real estate industry. He discusses the importance of building connections and leveraging them to succeed in your industry.

If you want to know how to build and leverage your relationships, then this episode is for you!

Here are some power takeaways from today’s conversation:

Episode Highlights:

[02:31] Seeing the Growth Potential

He found areas in San Francisco that were not expensive at the time but had growth potential, and so he invested in the Outer Richmond area, among other areas. Although they were relatively unknown at that time, currently, they are the places to be.

[09:09] Hard Money

Hard money is a type of financing that is leveraged out to a client that has the capital to use but does not want to use all their money quickly, and the client is seeking to avoid traditional financing. They also want to get a transaction done quickly.

[10:26] Balancing Investments

During his time in San Francisco, he worked on his business and investments at the same time. Currently, he is working in the mortgage origination side of loanDepot. Two of his specialties were condos in San Francisco and many of the high rises located in San Francisco.

[16:59] Leveraging Relationships

Expanding your network and meeting more people in the target industry is critical. And knowing what people like and are looking for allows you to leverage those relationships for mutual gain.

Build trust and rapport. If you do that, people will see the value and credibility in your work and want to work with you. When you want something, you must fight and do whatever it takes. Sometimes all you need is the right people to point you in the right direction and extend a helping hand.

Notable Quotes:  

[13:53] “Everyone’s got a niche. Some people want doctors. Some people just work with investors. I work with condos.”

[17:09] “The more people you reach, the more ability you get to understand what they do.“

[24:20] “You got to do whatever it takes to get that property.”

[27:53] “You really get to know somebody when you sit down with them.”

Resources Mentioned:

Rick Perez: LinkedIn

About Rick

Rick Perez is the Senior VP at loanDepot. He is a mortgage professional that uses his knowledge and experience to help people make confident decisions about real estate financing. In his career, he has helped people navigate the mortgage process with high-quality service. His mission is to give clients the best possible loan experience.

As we go along life and reach milestones, we may sometimes forget how significant it is to keep giving back to our community.

In this episode, Theresa Ward, real estate broker and entrepreneur, joins us to share how she got into impact investing. Real estate investing is not only a tool to build wealth, but it can also initiate genuine impact if we concentrate our efforts on bringing social good. She shares her advice on leveraging real estate investing to pay forward to people in her community.

If you want to know how to create a social impact as a real estate investor, then this episode is for you!

Here are some power takeaways from today’s conversation:

Episode Highlights:

[12:08] Impact Investing

Impact investing is a financial strategy used to gain financial returns while creating social impact. Theresa is currently raising an impact fund, which will be used to purchase and renovate properties with the goal of effecting positive change in her local community.

[19:14] Team Effort

Theresa is currently managing more than 100 property flips and is still in the process of purchasing more. Team effort made this milestone possible.

[21:48] The Benefits of Seeking Help from Others

Be humble. It’s okay not to know about everything. What matters is that we know who to ask or where to get the answers to our questions.

Most people are scared to ask questions for fear of looking stupid or having negative consequences. Instead of figuring everything out on our own, reach out to talented people and create relationships with people who know what they’re doing. By asking for guidance or advice, you can fast forward your success.

[25:01] Theresa’s End Goal

Real estate is an avenue to fulfill any kind of dream in life. Theresa has a dream of improving education in her local community by opening a charter high school by 2030. She’s making her dreams a reality through real estate and building relationships with people in the public and private sectors to help with youth access to resources and networks.

[26:11] Social Impact

As years pass into building a business, we can forget the bigger picture of what we’re doing. Wanting to be wealthier or work less are valid aspirations. But at the end of the day, we want to create a true social impact on our surroundings. We can affect genuine change using real estate.

Notable Quote:

[12:10] “Impact investing is really just investing money and getting a financial return, but you’re also doing social good.”

[21:48] “Be humble and say, ‘Hey, I don’t know how to figure this out. I don’t know everything. But I know who to ask.’”

[25:09] “So, real estate, I believe it’s an avenue to fulfill any dream in life.”

Resources Mentioned:

Good to Great by Jim Collins

The Hedgehog Concept by Jim Collins

New Local Realty

Theresa Ward: LinkedIn

@pghhomegirl

@newlocalrealty]

Real estate investing can generate massive profits, but it takes a clear strategy before it becomes passive income. Your systems and operations need to be efficient. It’s also critical to avoid reinventing the wheel just because you think you can do something better.

In this episode, John Wappler, President of Evergreen RE LLC, joins us to share his experience building his real estate portfolio and the suite of companies he uses to manage his growing real estate empire. He weighs in on the future of real estate investing and what metrics we should consider when considering property deals in today’s market.

If you want to know how to build a real estate portfolio efficiently, then this episode is for you!

Here are some power takeaways from today’s conversation:

Episode Highlights:

[06:40] Property Management

Evergreen, among other things, manages scattered site single-family portfolios. At first, John did everything solo. But handling the portfolio alone was too much, so he built a management team. Once he creates a business plan for a deal, he and his team execute his vision from there.

[14:45] Don’t Reinvent the Wheel

There’s no reason to reinvent the wheel when somebody’s doing it well already. Reach out to experts or outsource to firms that have already built lasting relationships and can get the job done efficiently. What is your time worth?

[16:25] Future of Real Estate Investing

Many external factors have affected the multi-family and single-family markets. Despite this, John thinks the market is not that different from normal. He observes that value in real estate still exists, but these opportunities need to be created. The cap rates are still higher than interest rates. If the latter eclipses the former, things might change a little bit.

[25:24] Metrics to Look Out For in a Deal

Make sure you trust the sponsor. Dig into their track record and experience. The person running it has to be a good operator for the deal to be successful.

Internal rate of return (IRR) is the best metric as it provides a neutral way to compare one project to another. It’s based on cash inflows and cash outflows. IRR is also independent of time. Looking into the cap rate is also recommended.

Notable Quotes:

[13:10] “Putting together the pro forma at the beginning of the deal, everything looks great on paper. It's about hitting the numbers. And, if you can't hit the numbers, then the whole thing was worthless, so you got to figure out a way to keep that on track.”

[17:15] “My feel for the market actually is not much different than where we normally are. I still feel like the value that is there needs to be created.”

[31:00] “The flexibility, family, all of that, and again, kind of generating that income growth stream off of real estate. Real estate gives you a unique ability to do that as opposed to some other professions.”

Links to Resources:

Evergreen Real Estate Website

Evergreen RE LLC Website and Instagram

John Wappler: LinkedIn

House flipping with live-in flips and house hacking are all the rage these days. By doing a live-in flip, you can take advantage of the housing market to make a significant profit, and if you do it right, you can do it TAX-FREE. By house hacking, you can live in your dream home expense-free while also increasing its value — or even using it to create sustainable profits. But before you try live-in flipping and house hacking, there are many things you need to know so that you can maximize its benefits.

In this episode, Matt Graves, co-founder of NuHomes Capital Management, joins us to share his journey into real estate. He talks about his experience flipping houses, shares advice on how to flip and house hack to generate substantial wealth, and tells us how he earned over $200,000 TAX FREE on a live-in flip!

If you want to find out how to do a live-in flip and house hack in a tax-advantaged way for maximum gain, then this episode is for you!

Here are some power takeaways from today’s conversation:

Episode Highlights:

[03:54] How Matt Entered Real Estate

Matt grew up in Illinois, where he received a degree in law enforcement and worked as a private investigator. His wife encouraged his interest in real estate, and he later became the co-founder of NuHomes Capital Management.

[12:53] The First Flip

Matt's first flip was profitable both financially and educationally. Taking out a $45,000 HELOC loan and purchasing a house for $25,000, they renovated it for a year and then sold it for $85,000.

[16:34] Doing Live-In Flips

Matt and his wife later moved to Charlotte and lived in a house they bought for $265,000. However, the Charlotte housing market was rapidly increasing in value, so they renovated the house with $40,000 while living in it for two years. The house sold for over $500,000 dollars!

Matt wanted to do a live-in flip for these three reasons:

[22:00] Weighing Comfort Against Profit

Run the idea of live-in flipping past your loved ones because it won’t be comfortable, but it can be lucrative. If you can put up with some difficulties, live-in flipping can be highly profitable!

[25:31] The House Hack

Matt and his wife found a duplex in a phenomenal location that he knew he could house hack — utilizing your personal residence to make a profit. They plan to live on one side and rent the other side out as an Airbnb. It will cover their mortgage and living expenses and they will essentially live there for free.

Notable Quotes: 

[16:40] “It’s very hard for me to find, you know, to actually buy something like a piece of real estate that doesn’t have some type of value add.”

[18:50] “It’s always about trying to put as little money of your own as possible.”

[21:10] “You figure out literally how to keep all of your profit. And then not only that, but then grow that further. It’s all about making your money work for you.”

Links to Resources:

nuhomes

Matt Graves: Instagram

Jeremy Tomes: LinkedIn

As an attorney, building passive income to achieve financial freedom doesn’t have to be as difficult as you might think. Consider this your official invitation to join Jeremy Tomes, host of the Big Law Capitalist Podcast, weekly to find out how to make your money work for you by passively investing in alternative investments such as commercial real estate. Allow him to show you how to gain passive income streams by debunking common investing myths, introducing you to investing experts and real estate investing strategies, and showing you not only what to do, but HOW to do it.