BiggerPockets Podcast Show #343

Hosts & Guests

• Hosts: Brandon Turner, David Greene
• Guest: Steve Rosenberg (Real estate investor and airline pilot)

Introduction

• Real estate investing without the hype.
• Brandon recently wrapped up a mastermind weekend with great investors.
• Today's interview recorded in person with Steve, an airline pilot who applies systematic processes to real estate.

Quick Tips

• All podcasts are published on YouTube with additional content.
• Transcriptions of podcasts available on show notes pages.

Main Interview: Steve Rosenberg

Early Career & Entry into Real Estate

• Grew up wanting to be a pilot; hired by a major airline at age 25.
• Career impacted by 9/11, leading to job instability and eventual furlough.
• Realized need for an alternative career; turned to real estate. Started with wholesaling and option contracts.
• Formed a partnership to buy a 39-unit apartment complex, which they successfully exited.
• Made a leap into low-income housing but faced numerous challenges (e.g., high tenant turnover, high make ready costs).

Key Lessons & Strategies

• Importance of having an end goal and strategy in real estate investment.
• Low-income properties not aligning with desired passive income model; difficulties in systematic management.
• Fair housing laws and the importance of consistent tenant policies to avoid legal issues.
• Property management should be approached as a business with systems, policies, and procedures.
• Emphasis on the significance of KPIs (Key Performance Indicators) in managing business performance.

Building a Scalable Business

• Initially struggled with managing properties; turned to self-management and systematization after rejection by management companies.
• Worked with a business coach; grew a property management company to manage 1,000 properties across three cities.
• Use of KPIs to track and improve aspects like maintenance, vacancy, and tenant management.
• Systems allow for scalability, hire based on roles not individuals, and use virtual assistants.
• Managing properties (and any business) should rely on set systems and data-driven decisions.

Personal & Family Involvement

• Encourages teaching children about real estate and business from a young age to build a legacy of knowledge and wealth.
• Shares the story of his son Jet purchasing his first rental property, emphasizing education and financial responsibility.
• Passive income opportunity sets a foundation for long-term financial security and independence.

Deal Deep Dive Segment

• A single-family property in Houston, Texas, initially an expired listing for wholesaling, which Steve ended up buying out of emotion.
• Purchased at $72,000, with plans to sell at $95,000, the deal fell through leading to tenant and property issues, eventually sold via owner financing.
• Lessons: Avoid emotional decisions in real estate transactions.

Lightning Round

• Favorite Real Estate Book: Rich Dad Poor Dad by Robert Kiyosaki.
• Favorite Business Book: The E-Myth by Michael Gerber.
• Hobbies: Going to the gym, riding motorcycles, diving.
• Key to Success: Consistency and taking action despite the fear of failure.

Conclusion

• Steve's social media and contact info: Facebook, Instagram, Empire Industries LLC.
• Emphasis on the importance of consistent learning and self-improvement to success in real estate or managing other ventures.