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Listen "E10: Managing Property Managers: You Get What You Tolerate with Brian Beers"
Episode Synopsis
Investing in a property or business requires an investment of your time, money, and effort. And so, how do those three come into play? In this episode, real estate investor and entrepreneur, Brian Beers, shares FOUR things that you need to be looking at when analyzing your investments.
Now, when it comes to the realm of property management, Brian believes you’ve got to have control over it at the end of the day – and setting expectations is key. Otherwise, you get what you tolerate.
Brian owns automotive repair franchises spanning 24 locations throughout Philadelphia and New Jersey. His philosophy is to have a primary business that generates cash flow and to leverage the power of compounding by redeploying the returns back to his capital.
Brian is on a mission to teach other entrepreneurs how to buy other businesses using owner financing as well as create passive income through investments.
Here are some power takeaways from today’s conversation:
Brian’s real estate background
A primary business that generates cash flow
The power of compounding
Four things to look at when analyzing investments
Choosing partners that align with your core values
Tips for hiring people
The value of setting expectations with your property managers
Episode Highlights:
[04:56] The Power of Compounding
Having a primary income that generates cash flow is just one aspect of wealth creation. Once you have that, think of ways that you can compound the money. Either redeploy the money back to your capital so you can grow the business faster. Real estate is another great place for investing because there’s good cash flow, appreciation, debt paydown, and tax benefits.
Whatever avenue you wish to take, it’s all about putting the money back into the machine because that's how you grow really fast. It's not necessarily saving your way to wealth, but using the power of money to your advantage.
[10:05] Four Things to Consider When Analyzing an Investment
There are four things you should be looking at when analyzing any investment no matter what it is:
*Return - Look at the return on capital based on various metrics (ex. cash on cash)
*Risk - Look at the potential of losing capital. When you're working with a syndicator, look at the experience and portfolio of the team.
*Time - Look at how much of the investment's success is based on your personal involvement. Find things that are uncorrelated to the time you put into them, and syndications are great avenues.
*Turn - Look at how long the money is locked up for. Sometimes, the deals that lock up your money longest can be really good ones. But you don't want to lock all your money up in 10-year deals, otherwise, you're not going to have the cash to take advantage of new things. And so, a mixture of long-term and short-term deals is good.
[36:29] How to Manage Your Property Manager
Even if it looks great on the spreadsheet, the reality is way different. And so, to scale and keep stress at a minimum, you have to learn how to manage your own people. Remember, you get what you tolerate. If you tolerate poor communication and a unit to take three months before it gets turned, then that's what you will get.
You have to set expectations. You can’t get frustrated if you don’t hear anything because you didn’t even ask in the first place. Therefore, learn how to voice out your concerns and be clear about what you’re willing to tolerate.
Resources Mentioned:
www.rentwell.com/vision
https://www.brianbeers.com/
Now, when it comes to the realm of property management, Brian believes you’ve got to have control over it at the end of the day – and setting expectations is key. Otherwise, you get what you tolerate.
Brian owns automotive repair franchises spanning 24 locations throughout Philadelphia and New Jersey. His philosophy is to have a primary business that generates cash flow and to leverage the power of compounding by redeploying the returns back to his capital.
Brian is on a mission to teach other entrepreneurs how to buy other businesses using owner financing as well as create passive income through investments.
Here are some power takeaways from today’s conversation:
Brian’s real estate background
A primary business that generates cash flow
The power of compounding
Four things to look at when analyzing investments
Choosing partners that align with your core values
Tips for hiring people
The value of setting expectations with your property managers
Episode Highlights:
[04:56] The Power of Compounding
Having a primary income that generates cash flow is just one aspect of wealth creation. Once you have that, think of ways that you can compound the money. Either redeploy the money back to your capital so you can grow the business faster. Real estate is another great place for investing because there’s good cash flow, appreciation, debt paydown, and tax benefits.
Whatever avenue you wish to take, it’s all about putting the money back into the machine because that's how you grow really fast. It's not necessarily saving your way to wealth, but using the power of money to your advantage.
[10:05] Four Things to Consider When Analyzing an Investment
There are four things you should be looking at when analyzing any investment no matter what it is:
*Return - Look at the return on capital based on various metrics (ex. cash on cash)
*Risk - Look at the potential of losing capital. When you're working with a syndicator, look at the experience and portfolio of the team.
*Time - Look at how much of the investment's success is based on your personal involvement. Find things that are uncorrelated to the time you put into them, and syndications are great avenues.
*Turn - Look at how long the money is locked up for. Sometimes, the deals that lock up your money longest can be really good ones. But you don't want to lock all your money up in 10-year deals, otherwise, you're not going to have the cash to take advantage of new things. And so, a mixture of long-term and short-term deals is good.
[36:29] How to Manage Your Property Manager
Even if it looks great on the spreadsheet, the reality is way different. And so, to scale and keep stress at a minimum, you have to learn how to manage your own people. Remember, you get what you tolerate. If you tolerate poor communication and a unit to take three months before it gets turned, then that's what you will get.
You have to set expectations. You can’t get frustrated if you don’t hear anything because you didn’t even ask in the first place. Therefore, learn how to voice out your concerns and be clear about what you’re willing to tolerate.
Resources Mentioned:
www.rentwell.com/vision
https://www.brianbeers.com/
In God we trust