When creating your master-plan, make peace with the fact that you may get hurt a little bit – but you’re going to be fine.– David Greene
Double Your Commissions Without Doubling Your Team w/ David Greene of Bigger Pockets [HYBRID Part 1]
David Greene is an award-winning agent, investor, businessman, and the co-host of the Bigger Pockets Real Estate Podcast. His “ecosystem” of services is changing the real estate game.
By being a one-stop-shop for his clients, David is able to provide service that is superior to many others in his field. Today, we’re diving into how he has built his incredible team, what he is doing today that is unlike other agents and investors out there, and why you don’t need to have it all figured out… you just need to take action.
Read the Full Show Notes Below…
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I’ve been looking forward to this podcast for a long time. I’m a huge fan of the Bigger Pockets Podcast, and I appreciate how they have brought the world of real estate investment to the main-stream.
David Green and Brandon Turner help explain the fundamentals of real estate while featuring some awesome guests along the way. But David is much more than this podcast. His team-building skills and ability to adjust his mindset are second to none.
Here’s how he does it…
Monkey See, Monkey Do
When it comes to team-building, David has the process down. Between his real estate brokerage, mortgage brokerage, investment business, and other endeavors in the works, it is important that David has the right team of people on his side, operating in a manner that he has deliberately designed.
He calls it his “Barrel of Monkeys” approach. We all remember the game with the hanging monkeys from when we were kids. One money would have one hand up and the other down.
As it relates to agents, the agent would be learning from the vets, while passing their knowledge on to those who are newer on the team.
Veteran agents don’t want to show houses, enter property data, or call listing agents. But agents who are first starting out, need this experience. Partner the veterans with the rookies and everyone wins.
Creating Your Master Plan
David was a cop for a long time before falling into real estate. He fell into it when a friend was under contract with a home but had to move at the last minute. He was going to lose his money, but David stepped in, took over the contract, saw the possibility, and the rest is history.
He didn’t go in knowing all the answers or how things were going to turn out. He went in knowing he had a lot to learn, and one of the best ways to learn was by making mistakes.
As David began investing in real estate, he was saving up money, buying rentals, and getting his butt kicked. Then he learned the BRRR method, and he began to do things better.
He became an agent and he got his butt kicked there too. He realized he needed to hire out, and gain assistance in the areas he lacked. Once he had the right team in place, his business took off. Last year, he and his partner sold over $93 million in real estate.
Action is More Important Than Perfection
Yes, running the numbers is important. But studying every analytic, crunching every number, and getting so caught up in what may be can keep you from closing on some of the very best deals. When looking at a property, David will look at these three things:
- Start with the 1% rule. This rule states that the property should rent out for 1% of your purchase price each month. As the home value goes up, the percentage goes down. For example, a $100k house should rent for $1,000 per month, whereas a $500k house should rent for $3500 or so.
- Buy in an area you know. David doesn’t buy in areas with snow. These properties have problems he isn’t familiar with, so he sticks to investments in sunny CA and AZ.
- Never buy in a rough neighborhood. While it can work out for those looking to get their feet wet, most of the time the properties are more trouble than they’re worth.
If you look at every potential factor or what-if, you will get paralysis. Get your momentum going, then figure out step 27.
The Bigger Pockets podcast is the perfect place for agents and investors who are just starting out. In the episodes that do not feature a guest, David and Brandon really get down to the fundamentals, providing a deeper perspective on a general concept.
As David puts it, just like in basketball, you’re not taught to slam-dunk right out of the gate. Instead, you are taught footwork, you run drills, and you scrimmage with your team. The podcast breaks it all down, so you can get started confidently in your real estate business.
David brings invaluable wisdom and experience to the table. He’s written a number of books, packed with information that will help agents and investors succeed. We are excited to be giving away 5 copies of his latest book to the first 5 people who leave us a review on Apple Podcasts.
All you have to do is screenshot your review and send it to firstname.lastname@example.org.
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Mentioned In This Episode:
- The Bigger Pockets Real Estate Podcast
- David’s Book, SOLD: Every Real Estate Agent’s Guide to Building a Profitable Business