Real Estate Rookie Podcast Summary
Episode: How to Build a Scalable Real Estate Business (While Working a W2!) in 2025
Release Date: January 6, 2025
Introduction
In this episode of the Real Estate Rookie podcast, hosts Ashley Kerr and Tony J. Robbins engage in an insightful conversation with Steve Rosenberg, a seasoned real estate investor and former airline pilot. The discussion centers on building a scalable real estate business while maintaining a traditional 9-to-5 job, emphasizing the importance of systems, mindset, and continual education.
Steve Rosenberg's Background
Steve Rosenberg shares his transition from an airline pilot to a successful real estate investor. Post-9/11, when furlowed from the airlines, Steve ventured into real estate, exploring flipping, wholesaling, and buy-and-hold strategies. His entrepreneurial journey led him to establish a property management company managing over a thousand properties, which he eventually sold to a venture capital firm. Today, Steve remains deeply involved in real estate, focusing on coaching and speaking to help others scale their investments.
Notable Quote:
"We all started from zero and didn’t know what to do. But the difference is the action that was taken from that zero moment." ([05:06])
The Importance of Action Over Inaction
Steve emphasizes that taking action is crucial for success in real estate. He underscores the dilemma between the costs of action versus inaction, advocating for proactive decisions even in the face of uncertainty.
Notable Quote:
"The question people have to ask themselves is, is the cost of inaction greater or less than the cost of taking action." ([05:06])
Mindset Shifts for 2025 Real Estate Investors
As the real estate market evolves, Steve advises investors to adapt their tactics to current environments. He compares outdated strategies to using water skis in winter—conceptually sound but practically ineffective. The key is to start with the end in mind and reverse engineer the steps needed to achieve specific real estate goals.
Notable Quote:
"You have to start with the end in mind and reverse engineer everything that you're doing." ([05:35])
Common Mistakes Among Rookie Investors
Steve identifies several pitfalls that new investors often encounter:
- Ignoring the Numbers: Decisions should be driven by data rather than emotions or superficial factors.
- Lack of Foundational Systems: Successful businesses are built on marketing, sales, operations, financing, and leadership.
- Overexpansion Without Proper Models: Scaling too quickly without adapting business models to fit different property types and markets.
Notable Quote:
"The numbers always dictate the deal. Not your emotions, not your gut feelings." ([10:52])
Learning from Failures: Real-World Examples
Steve recounts his experiences managing subpar properties that led to high tenant turnover and escalating maintenance costs. Realizing the unsustainability, he creatively exited these bad deals by offering owner financing to investors, thereby alleviating financial stress and repurposing the properties effectively.
Notable Quote:
"If there are any red flags when you're looking at a deal, you're much better backing off." ([17:34])
Overcoming Ego and Investing in Education
Acknowledging that ego and pride can hinder success, Steve shares how investing in mentorship paid off. His mentor highlighted the value of time over money, a lesson that shifted his perspective on education and strategic investments.
Notable Quote:
"You are spending that money. And I was like, oh. He goes, you think that you have a choice?" ([19:18])
Scaling Your Real Estate Business
When discussing scaling strategies, Steve advises consistent action and systemization. He recommends practicing the fundamentals rigorously, akin to professional athletes mastering their basics. Depending on individual goals, investors might explore diverse avenues such as apartment complexes, self-storage units, or multifamily properties.
Notable Quote:
"You are one decision away from changing your life and that decision is taking action." ([21:16])
Adapting to 2025 Market Trends
With potential shifts in interest rates and market conditions in 2025, Steve advises building a diverse toolbox of strategies. Rather than sticking to a single approach, he encourages investors to educate themselves on various methods to remain adaptable and capitalize on emerging opportunities.
Notable Quote:
"If you know all the tools and you have them sitting in a toolbox when the deal comes across your plate, you can make smart decisions." ([28:17])
Automating Systems in Property Management
Steve delves into the significance of standardized systems and processes in property management. He highlights the use of virtual assistants and AI to handle repetitive tasks efficiently, ensuring compliance with laws and maintaining consistent operations across a growing portfolio.
Notable Quote:
"You have to make sure that you can do these repetitive tasks over and over again via the system." ([33:07])
Starting Documentation from Scratch
For investors struggling with zero documentation, Steve suggests prioritizing the most critical and urgent processes first. By addressing "what's on fire," investors can gradually build a comprehensive system, ensuring that each process is simple and scalable.
Notable Quote:
"Start with what's on fire and start working out from there." ([37:54])
Best Practices for Checklists and SOPs
Effective checklists and Standard Operating Procedures (SOPs) should focus on essential steps without unnecessary complexity. Steve shares his experience of simplifying processes to ensure efficiency and prevent operational bottlenecks, drawing parallels to airline checklists used in critical situations.
Notable Quote:
"It doesn't need to be so detailed that you're just like, this is going to take me 50 minutes." ([41:58])
Conclusion and Key Takeaways
Steve encourages listeners to give back once successful, engage with communities like BiggerPockets, and continually seek knowledge. He reiterates the importance of action, adaptability, and systemic processes in building a scalable real estate business.
Notable Quote:
"The more you give, the more you will get back." ([47:36])
Where to Connect with Steve Rosenberg
Listeners interested in learning more from Steve Rosenberg can reach out through his website steverosenberg.com and follow him on social media platforms such as Instagram, Facebook, LinkedIn, and YouTube.
Final Thoughts:
This episode offers a wealth of practical advice for rookie investors aiming to scale their real estate ventures while balancing other professional commitments. By emphasizing the significance of action, adaptable strategies, and robust systems, Steve Rosenberg provides a comprehensive roadmap for achieving long-term success in the dynamic real estate market of 2025.