Real Estate Investing School Podcast

Episode 215: Collaborate to Dominate in Real Estate with Cory Jacobson
Host: Joe Jensen
Guest: Corey Jacobson
Release Date: December 2, 2024

Introduction and Background

In Episode 215 of the Real Estate Investing School Podcast, host Joe Jensen welcomes Corey Jacobson, a seasoned business owner, investor, and entrepreneur. Corey, alongside his business partner Ryan, has established a robust real estate portfolio comprising over 70 units across various markets, including long-term and short-term rentals, multifamily apartments, and a large multipurpose resort. They also co-own a short-term rental property management and hospitality company managing over 100 units and are hosts of the Wealth Juice podcast.

Journey in Real Estate Investing (00:00 - 03:23)

Corey begins by reflecting on their six-year journey in real estate, expressing a sense of ongoing growth despite feeling a bit of imposter syndrome when comparing themselves to more seasoned investors.

Corey Jacobson [01:32]: "It's always a little bit of imposter syndrome as you work your way up. But I just love what I do. So it's been great."

Joe Jensen emphasizes the rapid progress made in six years, highlighting the contrast between real estate investing and other entrepreneurial ventures like sales or house flipping, which often leave entrepreneurs with nothing tangible after years of effort.

Building a Sustainable Portfolio (03:23 - 06:04)

Corey underscores the importance of real estate as a means to build a lasting and sustainable portfolio compared to other business models that might yield temporary gains without long-term assets.

Corey Jacobson [04:09]: "Real estate is really a delayed gratification game. If you can keep that in your head and think about building for the future, you're going to create significant equity over time."

Joe shares his personal experience of initially dabbling in real estate, which later transformed into a substantial portfolio after understanding the underlying principles and leveraging existing assets.

Taking Action Over Analysis Paralysis (06:04 - 12:57)

A key theme of the discussion revolves around the importance of taking decisive action rather than getting bogged down by overanalysis. Corey advocates for jumping into deals, learning from failures, and continuously moving forward.

Corey Jacobson [06:58]: "It's all about diving in head first and being willing and knowing that you're going to take some losses and having that failure just be a propelling moment to get you to the next stage."

Joe echoes this sentiment, sharing anecdotes of seemingly insignificant deals that later yielded substantial returns, highlighting the value of experience and perseverance.

Scaling Through Partnerships (12:57 - 19:10)

Corey explains how partnerships have been pivotal in scaling their real estate business. Starting with Ryan, his college friend, the duo expanded by networking through their podcast, leading to collaborations with more experienced operators and investors.

Corey Jacobson [16:48]: "We figured why not join forces with people who are doing this, who have all the operations, but maybe they need a partner of people to bring in money to run these deals."

They emphasize the importance of selecting the right partners, leveraging each other's strengths in investor relations, capital raising, and operational management to grow their portfolio effectively.

Investing Out of State and Building Trust (19:10 - 26:47)

Expanding beyond local markets poses challenges, especially in terms of trust and management. Corey discusses their strategy for out-of-state investments, which involves thorough research, building relationships with local property managers, and personally visiting new markets to ensure reliability.

Corey Jacobson [22:36]: "It's about the relationships that you build in the team that you build with boots on the ground that you trust."

Joe raises concerns about managing properties remotely, which Corey addresses by highlighting the benefits of having trustworthy local teams that handle daily operations, allowing investors to scale without being physically present.

Current Strategies and Market Timing (26:47 - 33:37)

Corey outlines their dual strategy: managing syndications with operational partners while continuing to grow their personal portfolio in familiar markets like Florida. He also touches on the concept of "burring" (a strategy Corey refers to regarding financing and investing) and its viability in the current market.

Corey Jacobson [29:08]: "Real estate always worked. It's about what are your expectations going into it."

Joe Jensen reinforces that real estate is always a viable investment, provided one adopts the right approach and adapts strategies to current market conditions.

The Impact of Real Estate Investing (33:37 - 39:58)

Both Corey and Joe discuss the profound personal and financial impact of real estate investing. Corey emphasizes the role of delayed gratification and creating security through passive income, while Joe highlights the accessibility of real estate as a wealth-building tool compared to other investments.

Corey Jacobson [40:48]: "It's about creating security and enough passive income that work becomes optional."

They advocate for starting with manageable investments, such as owning a few units, to build equity and leverage, making real estate accessible and less intimidating for newcomers.

Partnerships: The Good, the Bad, and the Lessons Learned (39:58 - 43:59)

In addressing partnerships, Corey shares insights on maintaining trust and prioritizing relationships over business gains. He recounts amicable buyouts and the importance of vetting partners thoroughly to ensure alignment of values and mutual respect.

Corey Jacobson [43:07]: "It's about alignment of values. Do your values align? Are you willing to put the person over the business?"

Joe complements this by referencing Stephen Covey's book "The Speed of Trust," emphasizing that trust accelerates progress and smooths operations. Corey adds that valuing partners and maintaining transparent, honest relationships is crucial for long-term success.

Final Insights and Recommendations (43:59 - 53:03)

In the concluding segment, Corey shares personal recommendations, including his favorite podcast "Modern Wisdom" by Chris Williamson and the book "$100 Million Offers" by Alex Hormozi. He also recounts an unexpected yet fortunate mistake where a property was damaged but ultimately benefited from good insurance coverage.

When asked to encapsulate why he loves real estate investing, Corey articulates a deep-seated philosophy of keeping promises to oneself, which translates into integrity and trust in real estate dealings.

Corey Jacobson [50:16]: "Keep your promises. If you do what you say you're going to do and continue to show up for other people, it's hard to lose."

Joe Jensen adds a personal touch, reflecting on Corey’s message about self-trust and consistency, reinforcing the podcast's emphasis on integrity and perseverance in real estate investing.

Conclusion

Joe Jensen wraps up the episode by highlighting the impactful yet relatable nature of Corey Jacobson's journey, encouraging listeners to take actionable steps in real estate investing. The episode underscores the importance of collaboration, trust, and continuous learning in building a successful and sustainable real estate portfolio.

Notable Quotes:

• Corey Jacobson [01:32]: "It's always a little bit of imposter syndrome as you work your way up. But I just love what I do. So it's been great."
• Corey Jacobson [06:58]: "It's all about diving in head first and being willing and knowing that you're going to take some losses and having that failure just be a propelling moment to get you to the next stage."
• Corey Jacobson [16:48]: "We figured why not join forces with people who are doing this, who have all the operations, but maybe they need a partner of people to bring in money to run these deals."
• Corey Jacobson [22:36]: "It's about the relationships that you build in the team that you build with boots on the ground that you trust."
• Corey Jacobson [29:08]: "Real estate always worked. It's about what are your expectations going into it."
• Corey Jacobson [40:48]: "It's about creating security and enough passive income that work becomes optional."
• Corey Jacobson [43:07]: "It's about alignment of values. Do your values align? Are you willing to put the person over the business?"
• Corey Jacobson [50:16]: "Keep your promises. If you do what you say you're going to do and continue to show up for other people, it's hard to lose."

This episode offers invaluable insights for both novice and experienced real estate investors, emphasizing the power of collaboration, strategic partnerships, and maintaining unwavering trust and integrity in all dealings.