Agent Investor Podcast Tom Cafarella - Real Estate Investor & Coach

The recent NAR Lawsuit Settlement drives home one important point: real estate agents who don’t invest aren’t safe. They should be worried.
 
Without the solid safety net of income-earning assets, you’ll always be a victim to the ups and downs of the market. With just one investing deal, you can protect your income and never have to worry about shrinking commissions or industry disruptions.
 
Many agents are in deep denial about the impact the NAR Settlement will have, and that’s a dangerous position to be in.
 
While it’s definitely too soon to tell what will happen to the industry, make no mistake - things won’t be the same. The faster we adapt, the more bulletproof our businesses will be.
 
What are the implications of the NAR Settlement? How do we bulletproof our income before it’s too late? In this episode, I talk about how to adapt to this development and protect yourself from the worst case scenario. 
 
There’s never been a time where it’s more important for agents to add investing income into their arsenal. -Tom Cafarella
 
Three Things You’ll Learn In This Episode
 
-The bad news about the NAR Settlement 
Whether we want to admit it or not, this development doesn’t bode well for a lot of agents. Does it mean we’ll have to work harder for less money?
 
-Adapt sooner than later 
The majority of agents believe that the changes of the NAR Settlement will take up to 5 years to kick in. Why should we make changes now regardless of how long it will take?
 
-Investing is evergreen 
Due to disruptions and shifting market conditions, commissions will always be under threat. How can we use investing to build something that can never be taken away from us?

In school, we learn a lot about a multitude of subjects, topics and concepts in order to succeed. While it worked in that space, it can hold us back in our careers, especially as real estate investors.
 
Because of how we were taught, we end up gathering more information than we need in order to get started. We think we need to read every book, absorb all the knowledge and go to all the events to be ready to pull the trigger, but that’s really not necessary.
 
In this game, 80% of our results can come from 20% of the information. Instead of knowing everything, we can go pretty far with a few simple pieces of information, especially when it comes to getting that first deal under our belts.
 
How do we eliminate the information that doesn’t matter and focus on what truly moves the needle? In this episode, I talk about how school might be the thing keeping you from success, wealth and financial freedom.
 
In school, you learn about a lot of things but only end up implementing just a few things, investing is the same. -Tom Cafarella  
 
Three Things You’ll Learn In This Episode
 
-Focus on deal #1
Thinking we need to have everything figured out keeps us from taking action. What do we need to focus on if we’re new to the game?
 
-The Pareto Principle 
What is the simple minimal work that takes less than an hour a week, but will produce 80% of our results?
 
-Shortcut the path to success 
How does a mentor help you cut out mistakes and gain you confidence in the deals you are and aren’t doing?

One of the critical components of being a successful investor is finding deals, but not all deal sources are created equal. In fact, some of the most common places to find deals, I wouldn’t recommend.
 
As solopreneurs, how we spend our time is directly connected to the results we get. Anytime we’re focused on the wrong lead sources, we’re not getting the most value out of our time. That doesn’t mean any one of these channels won’t get you deals, it just means they aren’t the most efficient.
 
What are some of the most popular deal sources, and why would I recommend you look elsewhere? Which methods lead to us burning time?
 
In this episode, I share where not to look when it comes to finding great investment deals.
 
The odds of getting a deal on the MLS are very low. You’re not just competing with other flippers and buy-and-hold people, you’re also competing with people who want to live in those properties. -Tom Cafarella  

Three Things You’ll Learn In This Episode
 
-Cut out the competition 
Why do we have to avoid deal sources where there’s always someone looking to pay a little bit more?
 
-The guiding principle of finding good deals 
How do we avoid fishing in red water and fighting other investors when it comes to finding deals? 
 
-Why FSBOS don’t work for investors
FSBOs by their very nature aren’t great for people looking for great deals. What makes them challenging and inefficient? 

Many agents are tired of the rollercoaster ride that small multifamily took them on in 2023 - including us. The constant stress of dealing with high-risk ventures, the disappointing returns that didn't match the effort invested is a far cry from the passive income dream.
 
Managing these units demands constant effort, hardly constituting the 'passive income' dream. And let's not forget the lurking beast of deferred maintenance, ready to devour profits which is why we sold all our rental properties.
 
How do rental properties often fall short in delivering promised rewards? Is there a smarter way to invest our resources?
 
In this episode, I talk about the reasons why we sold our rental properties, how the risk is not worth the meager reward and why we don’t recommend buying them right now.
 
Do not allow 100% of your income to come from residential real estate. -Tom Cafarella
 
Three Things You’ll Learn In This Episode
 
-Swimming against the tide
They say going against the status quo is smart, but can it tire us out in some situations?
 
-Individual case situations in rental properties
Every case is different so how do we figure out what works for us?
 
-Risk vs. reward
Is the risk in rental properties higher than the reward?

If you’re looking for investing opportunities, you’d think the MLS is the right place to find them. Hundreds of properties and motivated sellers at your fingertips, and as an agent, you have front row access.
 
Well, that’s not the case…
 
Relying on the MLS to find deals might just be the worst way to run an investing business, especially in this market. While some people can certainly find great opportunities on the retail market, those are extreme rare cases. Seasoned investors looking to build a predictable, reliable business go off-market.
 
Why is the MLS the last place we go looking for deals? Are there cases where MLS properties can work in our favor?
 
In this episode, I answer a question I get asked constantly: why we don’t buy MLS properties.
 
The odds of you getting a great deal on the MLS are far less than if you were to get it off-market. -Tom Cafarella
 
Three Things You’ll Learn In This Episode
 
-Two ponds, two different results  
You might think the MLS and the off-market are similar. What’s the difference between the two? 
 
-Why it’s hard to get a discount on the MLS 
Properties off the MLS definitely don’t work for flips and quick turn deals, but what if you want to do a long-term buy and hold?
 
-The secret competitor you’re not aware of 
If an MLS property needs a ton of work, does that make it a great investment deal?

Selling real estate can be lucrative, but it's far from a consistent income stream. Some months might bring in substantial earnings, while others leave us scraping by.
 
It's a constant juggling act - trying to maintain a comfortable lifestyle while navigating the unpredictable nature of the market.
 
Diversifying our income streams is the key to overcoming this challenge. By supplementing our earnings from sales with investments, we can create a more stable financial foundation.
 
Is the benefit of just selling real estate enough? How does investing allow us to build wealth and achieve financial freedom?
 
In this episode, I talk about the real reason why I stopped just selling real estate and tapped into being an agent investor. I also talk about how investing helped me gain autonomy over my business and life.
 
What investing is doing for you is giving you leverage. -Tom Cafarella
 
Three Things You’ll Learn In This Episode
 
-Why flips are necessary 
Is flipping and fixing homes a quick way to earn big chunks of income?
 
-Investing and autonomy
How does investing free up our workload and give us time back to spend elsewhere?
 
-Spending resources with no results
Why do some agents spend their resources on building a team and then disbanding it soon after?