Passive Wealth Strategy Show - Real Estate for Busy Pros Taylor The Investor

How can streamlining maintenance help maximize a rental property's net operating income?
 
In this episode of The Passive Wealth Strategy Show, host Taylor Loht talks with Ray Hespen, co-founder of Property Meld, about how their software helps property managers efficiently track and resolve maintenance issues at their rental properties. They discuss how taking a data-driven approach to prioritizing and quickly addressing problems can improve tenant satisfaction and retention, resulting in higher profits for property owners.
 
Ray Hespen's opportunity to start Property Meld came from a bad personal rental experience where maintenance issues weren't being addressed. He and co-founder David Kingman did market research with property managers to understand pain points, then built software to connect renters, service providers, and property managers to streamline maintenance coordination. This solved a major renter's frustration while saving owners and managers money. Hespen and Kingman quit their jobs and invested fully in the new venture, with Hespen working from his basement while Kingman built the platform. Though complex, Hespen's engineering background helped him understand system scaling and processes. The Ascent Innovation Center at Mines offered space as the company gained traction. Now a major success story, Property Meld has 40 employees and is doubling in size, becoming a leading real estate software provider that's especially critical during COVID. Hespen is grateful to watch the company grow and help property managers leverage technology.
 
[00:03:00 - 00:06:00] The origin story of Property Meld
Ray and his co-founder started Property Meld after a terrible personal rental experience trying to get maintenance done
Their goal was to fix the coordination issues in property maintenance
They now serve over 575,000 rental units
 
[00:06:00 - 00:09:00] Identifying and prioritizing maintenance problems
The software captures maintenance requests and uses data to triage issue priority
HVAC issues need to be addressed within 3 days to avoid dissatisfaction
Plumbing issues can wait 4.5 days before tenants get frustrated
Electrical issues have a 5-day satisfaction threshold
 
[00:09:00 - 00:14:00] Finding and managing vendors
With 50,000 vendors in the system, Property Meld evaluates speed, cost, and tenant ratings
This data helps optimize spending on maintenance
Can identify the best vendors for quality, reliability, and fair pricing
 
[00:14:00 - 00:19:00] Scheduling repairs efficiently
By using text reminders and algorithms, 85% of repairs are scheduled in under 4 minutes
Tenants today expect a high level of coordination
Software facilitates faster scheduling between tenants, vendors, property managers
 
[00:19:00 - 00:25:00] Getting owner approvals
The system enables streamlined approvals from investors on bigger repairs
Owners can review images and info, approve via their phone
Average approval takes around 6 hours
Still faster than traditional methods
 
Quotes:
"The second largest impactor to net operating income is maintenance. I’ll tell you the breakdown. 5 percent goes to vacancy. 15 percent goes to property taxes...12.7 percent is maintenance repairs and maintenance." - Ray Hespen
 
"If you get an HVAC issue, you don’t have more than three days. You will get a bad rating, a bad experience, a bad potential decrease in the chance of renewal three days yet on a plumbing issue, you have four and a half on electrical, you have five." - Ray Hespen
 
Connect with Ray
Website: https://propertymeld.com/
 
Apply to Invest with Taylor at www.investwithtaylor.com
 
Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com
 
Please leave a review and help others escape Wall Street and build wealth on Main Street!
 
 

Connect with Taylor: www.investwithtaylor.com
Connect with CJ: www.wnnproperties.com  
Open your Self Directed IRA: www.passivewealthstrategy.com/rocket/
CJ Calio is a successful full-time real estate investor who achieved financial independence through real estate in just five years. He started as a UPS driver and now owns a large portfolio of rental properties.
Summary: CJ Calio shares his journey from being a UPS driver to achieving financial independence through real estate investing. He talks about the turning point in his career when he realized he wanted more than just a comfortable lifestyle. With the support of his wife, he decided to explore real estate investing as a way to achieve financial freedom. CJ started by investing in turnkey properties in the Midwest and gradually grew his portfolio. He emphasizes the importance of taking massive action, being coachable, and focusing on what you can control. CJ also shares his best and worst deals, highlighting the lessons he learned along the way.
Key Takeaways:
CJ achieved financial independence through real estate investing in just five years.
He started by investing in turnkey properties and gradually grew his portfolio.
CJ emphasizes the importance of taking massive action and being coachable.
Trust, but verify.
Always do your due diligence and research before making investment decisions.
Quotes:
"I didn't have the connection or relationship that I feel Christmas is all about."
"I wanted a change. And the cool thing was, when things started to subside, I was able to actually have a conversation with my wife after six months."
"I didn't have any knowledge, any background, any trade experience, or any family members that did real estate at all."
"I went to more of them after. And the more I went to these meetups, the more people I met, and hearing their stories of success and failures and obstacles overcome, I started to believe it."

Learn about investing with Taylor at www.investwithtaylor.com
Mindset, Education, and Network!
Taylor discusses the importance of having a success mindset in real estate investing. He shares a recent example of someone with a disempowering mindset who believed they couldn't acquire 10 rental properties due to their financial situation. Taylor emphasizes the need to shift from a mindset of "I can't" to "How can I?" He advises listeners to get educated about real estate investing, learn from successful investors, and network with others in the industry. Taylor highlights the power of mindset, education, and taking action to achieve real estate goals.
Key Takeaways:
Success in real estate starts with a positive and empowering mindset.
Instead of concluding that you can't achieve a goal, ask yourself how you can make it happen.
Education is crucial in understanding real estate investing strategies and methods.
Networking with successful investors can provide valuable insights and inspiration.
People from diverse backgrounds can achieve success in real estate with the right mindset and effort.
Quotes:
"Start asking, how could I go achieve that goal?"
"Real estate investing is difficult. It's not an easy thing to do. But we need to start with the mindset that I can achieve this thing."
"You don't need a whole lot of credentials or an amazing background to be successful in real estate."
"Get educated, network, and take action. You'd be surprised at what you can achieve."

Investing with Taylor at www.investwithtaylor.com
Open your self directed IRA today at www.passivewealthstrategy.com/rocket/
About The Guest: Jordan Berry is a laundromat investor who started investing in laundromats as a way to create financial freedom and independence for himself and his family. He has successfully turned around a failing laundromat and has since scaled up his investments in the laundromat space. Jordan is also the host of the Laundromat Resource podcast and offers a course on investing in laundromats.
Summary: Jordan Berry, a laundromat investor, shares his journey of investing in laundromats and how he turned around a failing deal to achieve financial independence. He emphasizes the potential for laundromats to provide passive cash flow and discusses the time commitment required to run a successful laundromat. Jordan also provides insights into finding deals, the pain points of sellers, and the tax advantages of investing in laundromats.
Key Takeaways:
Laundromats can provide financial freedom with just one to three well-run laundromats, depending on the size and management of the business.
Building relationships with laundromat brokers and small business brokers can help in finding off-market deals.
Common pain points for laundromat sellers include retirement, health issues, wanting to spend more time with family, or realizing the business is not as passive as expected.
Depreciation of laundromat equipment and tax benefits of running a business can be advantageous for investors.
A well-run laundromat typically requires 5 to 7 hours of commitment per week, including checking in with employees, collecting money, and scheduling repairs.
Quotes:
"More than 99% of America can replace their 9 to 5 income with one to three laundromats." - Jordan Berry
"Laundromats provide a 20% to 25% return on investment, compared to 8% to 10% in typical real estate deals." - Jordan Berry
"Don't go it alone. You're gonna learn a lot of hard lessons that way." - Jordan Berry

How do real estate investors identify potential markets for multifamily investing?
 
Today, Jen and Stacy Conkey, two experienced real estate investors, discuss strategies for scaling up in real estate investing - especially in multifamily- such as looking at job and population growth to narrow down market searches, having a contingency plan, and going beyond one's local area for greater opportunities. They emphasize that teams can provide expertise and knowledge that an individual investor may lack but urge investors to build relationships with team members for successful investing. They suggest starting small with manageable deals before going deep into it, speaking confidently by using the word “we,” and having the right motivation (not wanting to get rich quick), sufficient time, and support from family or friends. Let's dive in!
 
 
[00:01 - 06:48] How to Build Wealth with Real Estate: The Remote Multifamily Investing Academy
• How to build wealth with multifamily real estate
The Remote Multifamily Investing Academy
• How to select markets and reasons why people fail in multifamily
• What flippers and single-family investors need to know to take real estate to the next level
 
[06:49 - 13:46] Digging Deeper Into Scaling and Multifamily Real Estate Investing
• Network is vital in real estate investing, no matter the asset class or strategy
• The misconception that people need to touch, see, and feel real estate to invest
• Look at properties from a perspective of what if things hit the fan and have a contingency plan
• In-person market due diligence is essential for boots-on-the-ground experience
 
[13:47 - 20:09] How to Acquire Your First Multifamily Property
• How to lead teams to identify the best possible team in a market
• Data-driven decisions and use of technology to have eyes on the property
• Build relationships with team members motivated by money and grow wealth together
• Educate yourself and prepare for conversations
 
[20:10 - 26:26] The Key to Real Estate Success is Growing Your Network
• Use the word 'we' when talking to people and practice in a market you're not planning on investing in
• People fail in real estate due to wrong motivation, wrong expectations, lack of time, and lack of support
• Mastery takes time, and people should not jump into bigger buildings without understanding what they're doing
• The significance of joining networks and growing them
 
[26:27 - 34:42] Closing Segment
• Best investment: Joining networks and masterminds
• Worst investment: A motel that required staff and an understanding of seasonality
• Most important lesson learned: Due diligence and surrounding yourself with people playing at a higher level
 
 
Quotes:
 
"Anytime you're in a market, you're looking at things, filtering everything through your experience, whether positive or negative. And that might have absolutely nothing to do with how the real estate will perform." - Jen & Stacy Conkey
 
"We all make decisions based on emotions. That's where we're naturally drawn. But when you pull yourself, and you have that distance, you look at the numbers, if they don't pencil out, you're going to be less inclined to be emotionally attached to the experience you had while you were there." - Jen & Stacy Conkey
 
 
Connect with Jen & Stacy:
 
Facebook: Apartment Investing with Jen & Stacy
Website: rmfiacademy.com
 
 
Apply to Invest with Taylor at www.investwithtaylor.com
 
Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com
 
Please leave a review and help others escape Wall Street and build wealth on Main Street!

What does it take to scale up a high-volume real estate wholesaling business?
 
TJ Kosen shares his experience building a thriving real estate wholesaling company doing hundreds of deals per year. He provides insights into scaling up through hiring the right people, investing in marketing and leads, and developing processes to repeatedly close transactions.
 
TJ has been in the market since 2006. He has owned and managed residential real estate from 1 to 112 units in addition to a residential Real Estate note portfolio and self-storage facilities. His Dallas-based investment company TNT Property Solutions moves a high volume of distressed and retail-grade residential properties in the Texas and Florida markets. TNT is a tight-knit DFW-based company that sources direct-to-seller distressed properties, recapitalizes them, and either holds them in their portfolio or positions them for resale on either the retail, wholesale, or seller finance markets.
 
We don’t believe in a “one-size-fits-all all” business model. We believe members and students should build the business they want - to suit their lifestyles and goals. To that end, we facilitate their success through a robust community whose guiding principle is “brutal honesty” when it comes to business development.
 
[00:02:18 - 00:03:45] Opening Segment
TJ bought his first 112 unit apartment complex off Craigslist in 2006, just before the 2008 housing crisis caused him to lose millions.
He restarted with house flipping in San Diego before moving to Texas to scale up his volume.
 
[00:03:45 - 00:05:35] Transitioning from a Dealer to Building a Business
TJ disliked talking to sellers, so he started hiring people to do it instead.
He realized he had to shift from a transactional dealer mindset to building out the business.
This involved developing processes that could be repeated and finding employees passionate about acquisition.
 
[00:05:35 - 00:08:21] Generating High-Quality Leads at Scale
TJ uses PPC, direct mail, referrals, and targeted Facebook ads to drive leads.
PPC provides high-intent inbound leads that convert quickly. It's expensive but optimized over 5+ years.
He adds team members only after increasing leads to ensure their success.
[00:08:21 - 00:10:18] Coaching Employees from Junior to Senior Roles
New hires start assisting on calls before taking the lead to build confidence.
Inbound leads require closing fast, so junior team members are coached to convert high-intent sellers.
This training helps transition them into fully independent roles.
[00:10:18 - 00:12:37] Transitioning from Deal Focus to Process Focus
TJ doesn't worry about margins on lower-profit deals. He cares about repeating the process.
This means focusing on marketing costs, conversion rates, and closing costs rather than profit per deal.
Empowered employees can negotiate both low and high-profit deals effectively.
Best deal: His primary residences with more than 1 Million in Equity
Worst deal: Buying two apartment complexes right before the 2008 financial crisis 
Top lesson learned: Hitting a stress limit is a sign you need to hire and delegate tasks to others.
 
Quotes:
 
"I didn't like talking to sellers. Just, they bummed me out. I mean, you're motivated by two things, right? Pain or pleasure. And the pain of talking to sellers was worse than the pain of having to pay people to talk to sellers." - TJ Kosen
 
"Invest in people because yeah, just invest in people. That's the only way to get out of doing all the stuff yourself. It's going to be a headache. It's going to be expensive. It's going to be stressful. But, once you hit a certain stress level, just doing more stuff, it doesn't actually provide more stress. It just means you prioritize what's actually important." - TJ Kosen
 
Connect with TJ:
 
Instagram: https://www.instagram.com/tjkosen/
 
Apply to Invest with Taylor at www.investwithtaylor.com
 
Track your wealth for free with Personal Capital, go to www.escaping