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The BetterLife Podcast
4 Mindset Shifts to Scale Your Real Estate Portfolio Faster Than Ever (EP 144)
00:10:14
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- [00:00]
A
This is the Better Life podcast where we talk about real estate investing, building wealth, and all in all, living a better life. My name is Brendan Turner and I've spent my life investing in real estate to achieve financial freedom. And alongside My co host, Mr. Cam Cathcart, we want to help you do the same. On the show, you're going to hear from world class guests who have been handpicked to help you level up your investing, your leadership, your goals, your habits and more to become the very best version of yourself. So join us as we explore the habits, the actions, the beliefs, the that it takes to build wealth through real estate investing without losing your soul.
- [00:32]
B
Today I want to talk about something near and dear to my heart and that is scaling into big deals rapidly. You know, majority of people go when they try to get into real estate, they go buy a single family house and then they buy maybe another single family, then another one a few years later. And over the course of 10 or 20 years, 30 years, they acquire a handful, maybe five, 10, 15 houses, or maybe they've thrown a duplex or triplex in there. There's nothing wrong with that. It's a great way to build wealth through real estate. Or, you know, you buy just a handful of properties and you wait 30 years and you're going to have a pretty nice looking net worth. But that's not the only path in real estate, right? There are more ways to build wealth in real estate. And so today I want to talk about a different approach, a more aggressive approach. Here's the idea. I call it the four mindset Levels of Leadership. It's kind of a lame, generic term. Maybe I'll come up with a better one for it someday. But here's what I mean by the four mindset levels. When I talk about mindset, I'm talking about the way that you approach a problem, way that your mind goes to work solving a problem. So most entrepreneurs have one of four mindsets, ways they solve problems when they're going to build a business. And this is, this is directly applicable to the topic today of how do you start with a big monster deal, like a big thing, 50 unit, 100 unit, whatever. A lot of entrepreneurs, they come from the world of a job, a W2. I worked at Cold Stone Creamery. I scooped ice cream. I was just a frontline worker. I scooped ice cream. I did what I said I was gonna. You know, I showed up when they told me to show up, I did what they said to do, I sang for tips and all that. So when you are a worker bee and you start an entrepreneurial business of any kind. Like maybe you're gonna go start a bakery, maybe you're gonna go and sell, you know, essential oils door to door. I don't know, whatever you're gonna do and you're gonna start a business. Most people start at level one. Level one is called DIY. You can write that down. DIY DIYers think that the solution to their problems is to do it themselves. So they're gonna go out and do the thing. So if they're starting real estate, they're go and analyze every deal they're out there and make every offer. They're going to go out there and learn everything there is to learn. They're going to do all of the steps themselves. Nothing wrong with that. It's a great way to grow a business. You know everything. You're the expert, you're the master. Like, you define the industry like you're, you're business. So why not do it yourself? It's great. It's a great way to do it. However, every level has a limit. Write that down. Every level has a limit. Let's go to an easy example of doing like the brrr strategy, right? We're going to buy a property and basically flip it, but instead of selling it, we're going to keep it as a rental. So you're going to buy rehab, rent, refinance, repeat. So, so you, the DIYer, you go and buy a house and then you do all the work to find it, to negotiate it, to land the deal. You're the one talking to the bank, you're doing everything. Then you go and you fix it up. You're doing all the work, the construction, all the processes. You go to refinance it, you're getting the refi, you rent it out, you're the landlord, you get everything, all your stuff. How many of those can you do in a given year? One, maybe two, maybe three if you're a really fast construction worker or the properties aren't that bad of condition. So that's level one, diy. The next level is what I call project manager level. So think of a project manager as somebody who doesn't necessarily swing the hammer, but they're on the job site, they're saying, okay, I'm going to, I'm gonna make sure that the, the frontline workers, the worker bees, they're gonna be showing up and doing their job. But I'm just managing everything. I'm moving people around, I'm making sure they show up. Project Manager is actually an official title in a lot of careers, right? Like, many of you might actually at your job be a project manager. And they're like one lineup from the people doing the work. So if you have a, if you're a co, you know, working in tech, you might be the guy doing the code. You're the writing code every day. Or you could be the project manager who's making sure the coders are doing their work. And you're still involved, you're still there, but you're project managing. It's another great mindset. You can do more projects that way because now all of a sudden you're managing other people. You're calling, you know, you got a property manager watching the property. You have a contractors fixing it up. You're still calling the contractor, but you're just, you're dealing with problems by getting random people to do the work. A lot of third parties, a lot of 1099 contract basis to do the. And again, nothing wrong with that. Probably better than being the frontline worker sometimes. But, you know, sometimes people just like doing the work themselves. And that's cool too. But remember, every level has a what limit? So the next level, if you want to elevate yourself and to do more deals, and it's again, it's all mindset. This is not, this is not very tactical in that I, that anybody can choose a mindset level. So the third one I call the coo. Because in a, in a company, a COO is somebody who like runs the entire company from an operations standpoint. Like, you could call it a CEO. But I like CEO because CEOs typically are the ones that are like, they're like defining like the systems and the processes. They're building a machine. A CEO is building a machine, but they are also a part of the machine. They're meeting with their, their directors, they're meeting with their project managers regularly. They're meeting with their teams, they're meeting, they're, they're setting the budget. They're saying, you know, here's what we stand for in this company and here's how we're going to get there. And I'm meeting with you every week. They're still part of the machine. Again, nothing wrong with it. And the CEO level is probably the max level most entrepreneurs ever get to. They are working 40, 50, 60, 70 hours in their business every single week. I mean, they're growing, they got employees, they're not doing the work. They can even take a few days off. They can go golfing because they got more freedom. Their employees are working. So if they want to sleep in one day or they're sick, work still gets done. Because they're not the ones doing the work. They're not even the ones managing the individual workers because they got project manager levels. And this applies exactly to real estate. Same thing. Let's say you wanted to do the burst strategy again. If you're the frontline worker, you're doing everything. You're diy, your project manager, your hiring contractors. You can do maybe 5, 6, 7, 8, 10 deals a year because you're just moving people around and shuffling around and stuff, but it's working all of a sudden. When you're the coo, though, you built a company, you have employees, you have a company culture. Maybe you have an office, maybe you have some cohesive machine. You're built and you're at the top of the machine. You're running the machine, you're tweaking it constantly. The fourth level, though, one higher than that. That again, most entrepreneurs probably never get to. I call the architect. The architect is somebody who designs the machine. They envision the machine, they inspire the machine and the people that work in the machine. But this is the big difference. They are not part of the machine. I mean, other than maybe just tweaking from the outside, but they're not involved at all. Let me tell you in real life why this is important and why I'm talking about it today. When it comes to big deals, it's going to be very, very hard to do big deals if you're operating at a DIY level, it's going to be hard to do it if you're operating at a project manager level. You need to approach big deals with either that COO mindset of I'm going to build a company, or the architect that I'm going to have a machine. I'm going to have a company that is going to then do real estate. So when I first got into real estate, I was DIY or my wife, and I did everything. We fixed up units, we rented out the properties, and I don't regret it. It was a great time. But then we became my project manager level mindset when we hired my wife's mom. That's right, I hired my wife's mom and I asked her for just five hours a week, can I pay you to answer phones? Because I don't like talking to tenants then. So from project manager, I got into kind of a CEO sort of role. And almost like when I built open our capital that's kind of the approach I took, was like, I'm just going to build a machine. I'm going to hire this person and this person and this person and this person and this person. I was at the top of the machine. I was still running all the meetings the first year. I was very much involved, and I was just in charge. But guess what? I do not like being that role. I don't. I would rather be a DIYer than a CEO. I don't. I just don't like running all these meetings and making everyone show up on time and being the guy that runs the machine. I don't like it. So then I took myself out. I put myself on the board of directors. I brought in a coo. And the COO is incredible. He's a great dude. His name's Walker Meadows, and Walker is so good because he loves those things that a COO should love. He loves the meetings. He loves holding people accountable. He loves having systems and processes and having conversations with people. So now I get to lead as more of the visionary or the architect. So I get to say, this is what I want the machine to look like. Walker, go make it. And all of a sudden, when I did that is when Opendoor Capital scaled from just doing nothing to, like, 13,000 units, which we're right about right now is because all of a sudden, I got into the right role for me, which was being the architect, being the design person. So that's where we're at today, is I'm the architect. When I built the Better Life Tribe, I built it as both an architect, but I'm also the DIYer in some positions. I'm teaching Financial Freedom Hour every single week, or just about every week, as long as I'm not, you know, on vacation or something. I'm teaching. I'm here because I love this. I love the DIY stuff. So, again, no level is wrong, but every level has a limit. I'll summarize it with this point. If you want to do big deals, if you want to grow rapidly, you have to grow. What is in here, in your brain, your mindset matters more than the tactic that five years from now, you look back and go, yeah, that was when I got the confidence to realize I had the capability to do big deals.
- [09:09]
A
And that, my friends, is the show. Thank you for tuning in. And hey, before you go, if you enjoyed this episode or if you just enjoy the show in general, please consider leaving us a rating and review. Wherever you listen to podcasts, we really do value your feedback. And we read the comments, we make future decisions about topics and guests and everything else. Plus it helps us reach more people and the more reviews we get, the more people hear it and watch the.
- [09:30]
B
Show and share it and it's awesome.
- [09:32]
A
Last but not least, please head over to social media. Consider befriending me, following me subscribing to all that stuff at Better Life and my personal page at beardybrandon, especially over on Instagram, YouTube and really everywhere else. So thank you again for listening. I'm honored that you would bring me along on your journey toward building wealth through real estate investing without losing your soul. Now this show is about living a better life but if you want my opinion on what it takes to live the best life ever, just go to abetterlife.com bestlight to hear some of my views on life and spirituality. I think you'll like it. Abetterlife.com BestLife with that said, thanks for listening to the show. We'll see you next week.