Manage episode 185507966 series 1339116
Mike is a full-time firefighter in Birmingham who has joined the real estate venture. He joins Brian on today’s episode to talk about his Five P’s of Success and how attitude makes all the difference in real estate. Mike has a lot of advice on personal development, and he shares how he has grown on his own real estate journey.
[3:08] Mike has been living the Rich Dad, Poor Dad mentality his whole life. He worked to get himself to a point where he didn’t have to play catch up when it came to his life plan. One thing he noticed many successful people had in common was their involvement in real estate. The past three of four years he’s been learning and planning, and now he’s getting ready to move into the next phases of his plan.
[6:25] He started his real estate venture with single-family homes. His next goal is to get into the multi-family market. He explains three things that attract him to the business of multi-family homes: 1. Getting away from too much emotion in a deal; 2. Economy of scale; and 3. Lack of competition.
[11:11] Together with his business partner, Mike works on fix and flips. His business partner is a Realtor®, so Mike works as the project manager, and when it’s ready, his business partner handles the selling of the house.
[12:40] Mike talks about how he takes advantage of being able to work on his business during the downtime at his full-time job.
[14:10] Mike currently has a flip on the market. While it’s on the market, they have been using it as an AirBnB to help maintain some cash flow during the slow hold. It’s a balance game, because they have to juggle showing the house for people to buy with keeping it accessible for AirBnB guests.
[17:31] They stage all of their houses, so furnishing the flip for AirBnB is part of what they normally do. They used to lease furniture from the local furniture stores, but they’ve slowly acquired some of their own.
[19:30] He balances the schedule for showing the property with the bookings for the AirBnb. With his phone, he can manage it with his calendar.
[21:20] From AirBnB cost, he’s made about $1000 up to $3000/month in some cases. Some of the costs that come with the AirBnB are the cleaning fee, utilities, etc. When he takes out his holding costs, he is still coming out in the positive about $100 with a flip that is on the market.
[23:25] Through the conversation so far, it’s evident that Mike is very systematic and well-read. While he didn’t grow up with an entrepreneurial background, he’s always looked for clues of successful people. He notices that successful people had a veracious appetite for reading, so he began reading to take in knowledge when he started in real estate.
[25:55] What does it actually take to make it in the real estate business? For Mike, it’s his “Five P's to Success” — Purpose: When your purpose is really defined, the grind actually becomes enjoyable. Plan: Make a business plan before you get started. Performance: Take action! It doesn’t matter if you do something right or wrong, but you have to get started. Persistence: Hold yourself accountable in the pursuit of your goals. Perseverance: If you get a bad deal, keep moving forward. You can be consistent, but if you don’t have grit, you’re going to get dragged down.
[35:40] Mike is big on personal development. He got tired of being comfortable, and that’s how he got so into reading and self-learning opportunities when it comes to his real estate business.
[37:45] Mike talks about finding balance in your life. When you first start off, you have to have the right attitude and the right knowledge. As you learn more, the balance shifts to doing and growing. You also have to utilize your strengths.
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