Real Estate Investing with Santino Filippelli

Introduction

• Speaker: Santino Filippelli, 32-year-old owner of a real estate firm, two construction companies, and an investment company.
• Growth: Over 500% in the last three years, with a revenue of $2.1 million last year.

Steps to Start Real Estate Investing

1. Assess Risk Tolerance: Decide between cash investments or financing.
2. Source of Funds: Identify where your money will come from (credit score, experience, etc.).
3. Look for Deals: Start small and leverage early.

Businesses Owned by Santino

• Modern Realty: Real estate brokerage.
• Modern Construction: Construction company.
• Northwest Home Investments: Acquiring properties.
• Urban Rentals: Rental management.

Acquiring Properties and Deals

• Focus on off-market deals.
• Use platforms like Batchleads, Batchdialer, and Remind.com instead of Redfin or Zillow.

Airbnb Strategy

• Convert properties to Airbnb to avoid tenant issues.
• Short-term rentals can preserve property condition and are more profitable.

Financial Strategies

• Starting Costs: Real estate brokerage can start small with minimal costs.
• For construction companies, consider how involved you will be.
• Use SBA loans for financing larger projects (90% loan to value).

Real Estate Investment Strategies

• Focus on areas that are gentrifying.
• Decisions based on profit margins and area potential.
• Batch Platforms: Provide leads and property data.

Company Synergies

• Combining real estate, construction, and investment companies for tax benefits and liability management.

Challenges and Growth

• As business grows, challenges include space and staff management.
• Importance of good staff and systems.

Brand Awareness

• Essential for business growth.
• Utilize social media and video content for visibility.

Profit Sources and Margins

• Flips: Used to have high margins, but the market is competitive.
• Rentals and Airbnb: Consistent cash flow and potential appreciation.

Operational Insights

• Systems: Use apps like Contractor Foreman for project management.
• Growth Management: Managing rapid growth requires effective use of space and hiring processes.

Advice for Aspiring Real Estate Investors

• Start small and leverage finances.
• Engage with real estate agents and join networks.
• Use the BRRR method and focus on good buys.

Personal Reflections

• Leadership Style: Empowering and trusting employees.
• Work-Life Balance: Important but challenging; carve out intentional time for family.

Conclusion

• Santino emphasizes patience, smart leveraging, and making money on the buying side.
• Encourages aspiring investors to focus on good deals and thorough research.