Starting new ventures require capital, which can come off as a challenge to some. But how can you break through this? What steps should you take to be able to get assets that will transform your dreams into reality?
Tune in to today’s episode as we strategize how to break out of the drawbacks that prevent us from striving for success with the real estate investor and business owner, Doug Depte. Whether you’re a first timer or a seasoned investor, this episode surely has a lot to offer so you can step up your game.
Doug is the CEO of FLD Properties, a real estate consulting firm that specializes in construction, financing, property management and acquisition. Before taking the real estate path, he previously worked for the finance department of the Bank of America. Doug also organizes mentorship programs where he shares skills and strategies on how to win.
Here’s What You Missed
What to do when getting a Property
- “I think first they really have to look at their finances. Because so often people just want to go ahead and do investments and such, but they really have to look at their financial picture and they have to trim the fat.” (12:31)
- “Where is your money going? Is there any way to save or to eliminate certain things?” (12:47)
- “What I recommend is cutting your living costs down as close to zero as possible. Because when I cut my living costs down, then that allowed for more money to invest in. When you look at someone’s financial picture, the majority of their funds is going to just keeping a roof over their head. (13:49)
- “If you could eliminate that large costs and live for free or close to it, then you’re in a position where you’re going to have an abundance of cash flow.” (14:06)
Ways to cut your Expenses
- “If you have a three bedroom apartment or house, if one room is open, you can rent that room out. It makes your cash flow coming in.” (14:39)
- “The cable bill, most people are switching over to streaming. There’s Netflix, there’s Hulu, there’s so many different platforms, IGTV. There’s other source to entertain yourself. And really truthfully, I would just recommend cutting cable completely.” (14:48)
How to not lose your First Property
- “For me, I wish that I reached out and got an actual mentor, someone to coach me through step by step.” (16:20)
- “I made a lot of mistakes throughout those 8 to 10 years. I wish there was someone there that was just going to be able to break everything down for me.” (16:31)
- “…making sure that you know how to analyze a deal.” (16:42)
Ways to analyze Deals
- “I put together a whole deal analytical calculator, but one of the key strategies and how I invest now and just to kind of take a step back, I’m looking for undervalued assets that I rehab. I rent them out.” (17:51)
- “I basically put a new mortgage on the property to get rid of my short term financing, put a new mortgage on the property, and then I keep doing that process over and over again.” (18:13)
- “So when it comes to analyzing a deal, I use something called the 65% rule.” (18:21)
- “When we’re looking at the 65% rule, that means you don’t want to be in a project any more than 65% on the purchase as well as the rehab.” (18:35)
How to find Deals
- “You gotta keep that consistency and persistency over and over and over again. If you want to have longevity in this game, if you want to improve in this game and you just have to have that attitude that you want to get better and you have to have that why.” (21:16)
- “You have to keep that why here, keep that hunger so you can keep going, keep adding properties each and every day and all it’s going to do is provide that freedom of mobility.” (22:00)
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Having access to Capital
- “I’ll always be a big component of credit cards and having access to capital even when I didn’t need it.” (28:48)
- “I’m sitting on the couch one day and I get this balance transfer check, right in my mail. For those that don’t know what a balance transfer check is, this is a blank check that’s coming from your credit card company.” (29:19)
- “Know where the value of that property that you’re looking to purchase is going to be, once you fix it up, then staying at that 65% rule is going to keep you safe.” (33:25)
- “The beautiful thing is when you have control. My biggest thing is control.” (44:00)
- “You got to have some cash in this game. So now you’re able to shoot when you see opportunities because your cash never get depleted.” (44:57)
Building financial relationships
- “Having those [financial] relationships is very important especially in this business. I mean, it’s a relationship business at the end of the day, you have to be somebody that’s likeable, you have to be able to communicate with people. You have to be able to negotiate with people.” (48:56)
- “You just gotta sell that vision. And now you’re able to get people to work for you, move for you in different kinds of ways that are going to be advantageous for you as well as them.” (49:34)
What it takes to develop your confidence
- “Lack of confidence is what’s keeping a lot of people back. And what I noticed is the more knowledge you have, the more competence you have.” (50:32)
- “One thing is you start to get small wins. A small win is simply going into the store and asking for a discount, and them saying yes.” (50:48)
- (27) “You’re here at this point right now, and you’ve probably had some trials and tribulations through that time and you’re alive, right? You’re here today. You’re breathing. So what I recommend is, obtaining the knowledge. But knowledge is just not enough. You have to put the action behind the knowledge and you have to have confidence in yourself that no matter what happens, you’re smart enough to figure it out.” (51:15)
Quotes and Advices from our host and guest:
- “Whatever your passion is that you want to learn, you can really devote that time into building your business, building your knowledge, getting that information because information is key. Information changes the situation. So the more information you have, now you’re able to elevate faster than just sitting down and watching the TV and getting sold by commercial after commercial after commercial hit you on top of the head.” – Doug (15:21)
- “…it all starts with analyzing that deal and knowing where the values come in at.” – Doug (19:45)
- “My goal has to be bigger than me.” (21:47)
- “Real estate changes everything and it’s so beautiful for the economy.” – Casanova (22:30)
- “I think the biggest [lesson] was delegation. Delegating, delegating, delegating. So basically, being okay, being comfortable, letting other people handle different areas of the business.” – Doug (36:31)
- “If you give up, you’re done. If you stop learning, you’re done. If you stopped changing, you’re done.” – Doug (51:59)
- “Real estate is the key to generational wealth.” – Casanova (53:07)
Books, Mentions and Links: