Real Estate Investing School Podcast
Episode 200: REAL DEAL: Contractor’s Leap to Investing Wealth with Gene Murashko (Part 2)
Release Date: October 10, 2024
Host: Brody Fawcett
Guest: Gene Murashko
Introduction
In the 200th episode of the Real Estate Investing School Podcast, host Brody Fawcett continues his in-depth conversation with Gene Murashko, a seasoned general contractor who has successfully transitioned into real estate investing. This second part of their two-part series delves deeper into Gene’s journey, the challenges he faced, and the strategies that led to his success in Maui’s competitive real estate market.
Gene’s Background and Transition to Maui
[00:00 - 02:08]
Brody opens the discussion by highlighting Gene’s extensive experience both as a general contractor with over a decade in the field and as a relatively young real estate investor. Gene recounts his early career moves, including getting married at 19, pursuing an electrical apprenticeship, and spending eight years as an electrician.
Gene: "I was, I had three goals when we moved out to Maui... I was always curious about why is this drywall guy doing that?"
[00:59]
Gene’s curiosity about the intricacies of various trades and his involvement in commercial work laid the foundation for his later ventures into real estate.
Initial Goals and Unexpected Opportunities
[02:09 - 04:12]
Originally, Gene moved to Maui with three specific goals:
- Disrupt Brandon’s (presumably another key figure in their network) expectations for contractors.
- Purchase property in Maui.
- Potentially partner with Brandon in real estate syndications.
However, Gene’s move turned out to be more opportunistic than planned. Upon his arrival, his expertise quickly became known within Brandon’s network, leading to an influx of contracting jobs that far exceeded his initial internship-type role.
Family and Housing Challenges in Maui
[04:12 - 07:36]
Discussing the significant lifestyle changes, Gene shares the challenges of relocating his family to one of the world’s most expensive locations. The high cost of living, especially housing, was a major hurdle. Initially, Gene and his family encountered exorbitant rental prices, with basic three-bedroom condos costing around $4,200 per month compared to their previous low-cost living situation.
Gene: "It was supposed to be a temporary thing... we saw what was actually a decent deal on the first condo."
[07:08]
Despite the financial strain, Gene emphasizes the value of adjusting one’s mindset to embrace the new normal, ultimately securing better housing with stunning views that justified the higher costs.
Contractor Experience and Team Building
[07:36 - 12:44]
Gene discusses his role in managing large renovation projects in Maui, including a significant kitchen renovation involving sliding doors. He highlights the importance of building a reliable team and the impact of hiring the right people.
A notable part of their discussion revolves around hiring interns and the mixed outcomes of such endeavors. Gene shares an anecdote about Mark, a tile specialist, who started as an intern and evolved into a highly skilled professional.
Gene: "Mark is now... he sits there and reads the code book. It's weird."
[18:30]
Gene underscores that while some interns may not work out, the benefits often outweigh the drawbacks, citing success stories like Mark to illustrate his point.
Real Estate Investment Journey
[12:44 - 15:34]
Transitioning from contracting to investing, Gene explains how his first real estate flip inadvertently set him on his investment path. After remodeling a house in Portland, Oregon, he sold it for a substantial profit, which was a pivotal moment despite initial fears of financial loss.
Gene: "I started reading a bunch of books... Rich Dad, Poor Dad was my number one thing."
[14:52]
Gene emphasizes continuous learning as crucial, recommending resources like "Rich Dad, Poor Dad" and various audiobooks to build a strong foundation in real estate investing.
Advice for Blue-Collar Professionals
[15:34 - 17:49]
Gene offers valuable advice for blue-collar workers contemplating a shift into real estate investing:
- Continuous Learning: Invest time in educating oneself through books and podcasts.
- Leverage Skills Wisely: Use existing skills to add value without becoming a bottleneck.
- Mindset Shift: Adopt a frugal lifestyle to maximize investment potential.
Gene: "If you have a blue-collar job, don't be a foreman. Be the guy that does the work. Get some headphones, download Audible, and download every single investing book you can."
[15:05]
By focusing on education and strategic delegation, blue-collar professionals can effectively transition into successful real estate investors.
Conclusion
Gene Murashko’s journey from a general contractor to a thriving real estate investor in Maui exemplifies the power of adaptability, continuous learning, and strategic leveraging of one’s skills. His story serves as an inspiration for blue-collar professionals looking to diversify their income streams and enter the world of real estate investing.
Brody and Gene wrap up the episode by reflecting on the importance of mindset and the benefits of combining construction expertise with real estate acumen. The episode concludes with anticipation for future collaborations and projects between Brody and Gene, highlighting the lasting impact of Gene’s transition on his personal and professional life.
Notable Quotes:
-
Gene: "I have ruined Brandon's expectations for contractors forever."
[02:09] -
Gene: "It was supposed to be a temporary thing... we saw what was actually a decent deal on the first condo."
[07:08] -
Gene: "If you have a blue-collar job, don't be a foreman. Be the guy that does the work. Get some headphones, download Audible, and download every single investing book you can."
[15:05] -
Gene: "Mark is now... he sits there and reads the code book. It's weird."
[18:30]
This detailed summary encapsulates the key points and insights from the podcast, providing a comprehensive overview for listeners and those interested in the intersection of contracting and real estate investing.