Making the Business of Home Building Profitable with Jose Berlanga

Making the Business of Home Building Profitable with Jose Berlanga

In this episode of The Profit Answer Man, we have a fantastic guest, José Berlanga, a seasoned real estate entrepreneur who has successfully ventured into land development, residential construction, and investment properties. José shares his incredible journey from a reluctant start in real estate to becoming deeply involved in an industry that shaped his career over several decades. He dives deep into the nature of the real estate business, the complexities of cash flow, and why timing is everything when making business decisions.

In this episode, you will learn:

1. The Realities of Cash-Intensive Businesses: José explains how the long cycles of real estate investments create both opportunities and challenges, with significant capital being tied up for extended periods.
2. The Domino Effect in Real Estate Development: How one project often leads to another, creating a chain reaction that pulls entrepreneurs deeper into the industry.
3. The Emotional Side of Business Timing: When business is booming, it’s hard to let go, but when it's struggling, it can be equally hard to exit.
4. Why Real Estate is a Long-Term Game: José emphasizes that timing the market is challenging, and the cycles can be difficult to predict, but managing these cycles is essential to long-term success.

Key Takeaways:

• Cash-Flow Management is Critical: Real estate development ties up large amounts of capital for long periods, which means managing cash flow effectively is vital to sustaining the business.
• Market Timing is Unpredictable: Whether the market is booming or busting, it’s difficult to know when to pull out. Staying in too long can cost you, but leaving too soon might mean missing out on the next peak.
• The Pull of the Business: Once you start, it’s hard to get out, especially if multiple projects are in motion. This creates a domino effect where one project leads to another, keeping you deeply entrenched.
• Embrace the Long Game: Real estate is not a short-term venture; it’s a commitment that requires patience, persistence, and careful financial planning.

Bio

José Miguel Berlanga, a successful entrepreneur from Mexico City, has spent over 35 years in various industries but made his mark in Houston's real estate sector. He co-founded Tricon Homes and is deeply involved in land development and property investment. Beyond real estate, José has an extensive background in business administration, economics, and philosophy, which has contributed to his success across multiple ventures. He is also a mentor and inspiration to budding entrepreneurs, sharing his vast experience and wisdom. You can learn more about José at his website here.

Conclusion

Real estate may not have been José Berlanga’s original goal, but through decades of experience, he found his footing in this capital-intensive, long-cycle industry. His insights on cash flow, business cycles, and the pull of staying in business offer invaluable lessons for entrepreneurs in any field. Whether you're in real estate or another industry, the principles of managing cash flow and understanding market timing remain universal.

Links: Jose Berlanga https://joseberlanga.com/ LinkedIn: https://www.linkedin.com/in/jose-berlanga-900a9518/ Amazon: https://amzn.to/3ST0d9u

Hi, I'm the Profit Answer Man Rocky Lalvani! I help small business owners simplify their financial reports to make more informed business decisions with fewer hassles. We utilize the Profit First system created by Mike Michalowicz

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