A real-estate investor explains why you can't scale a business by doing everything yourself. He walks through closing deals in clients' names with private funds, then refinancing into their names, and why understanding which of your activities actually make money matters before you hire anyone.
Chapters
There was a couple— once we got smarter about it, we'd close the property in their name at the time with the private funds, renovate, and then refinance it into their name in the future. So that was one of the strategies we used later. Of course, the first time I was on title, and so I had to get myself off of title to make that make sense for the clients. We had some fees show up. So again, you test pilot models and then you kind of see where the glitches are and you just— oh, okay, well, we spent $1,500 to get me off title so we could refinance at better interest rates. And so we did all of those steps as we walked it through and kind of just learned as I went, right? Remodeled a few times. So my first partner, we did this and then I was talking with my coach and my coach says, hey, like, how are you paying yourself? Like, how are you going to get yourself out of the business one day if you want to operate? Like, what's— where are the breakdowns of value in what you're doing? So if you're going to hire people to, to roles, right? Because if you just do everything and you have no idea where the money's coming from, you're making money. But if you don't understand how, how can you ever hire somebody? Because if you're going to scale, you can't continue to do everything in the real estate business. I understood that very simply.
