I sometimes act like an arrogant know-it-all on here.

But my opinions are loosely held. I do that to get better and I love it when you challenge me.

Keep holding me accountable and making me smarter!
A few things I’ve changed my mind on:

I think folks with no money can start in real estate through brokerage or leasing and make a lot of money to start doing deals.

I used to have a major extreme ownership mentality and if you weren’t successful it’s your fault.
I used to think self storage was superior to other asset classes but I know now I’ll have a diversified portfolio when I’m 60.

I think Bitcoin has a place and is a great hedge.

I think HCoL cities are decent places to earn great yield and appreciation can’t be underestimated.
I’ve learned a sweaty startup isn’t a cakewalk and I got lucky when I did it. Far too many people get stuck with risky stressful jobs instead of success.

I also think technology innovation is a great place to be an entrepreneur if you have the right skill set and network.
I used to think social media was a complete waste of time. Listen to my early podcast episodes. Here’s a quote from me:

“Social media doesn’t make me money so I don’t waste my time”

That aged well and here I am.
I’ve learned I have my own confirmation and selection bias around sweaty service businesses. I filter information that supports my view. Working on this daily.

I’ve learned my emotions and ego can get me in trouble and that I’m not as successful as I think I am.
I used to think online course salesmen were sleezy and greedy.

And now I’m an online course salesman trying not to be sleezy and greedy.
I used to think poor people were lazy and there was no excuse. Now I know that situations are outside of the control of a lot of people and the deck is stacked against them.
I used to think folks complained about things because they wanted help solving their problems.

Now I know that most people complain as a method of coping with tough situations and they need / want / crave sympathy and understanding.
I used to think being a white male was a disadvantage in a lot of ways. Then I saw that the wealthy folks at the top were all white men and it’s really hard to break into that club without rich parents who send you to the Ivy League.
I used to think working long hours for a company was a waste of life.

Now I understand that it’s the best route for the vast majority of folks.
I used to think entrepreneurship was easy and everyone should do it.

I don’t think that’s the case at all anymore.

Should more people do it? Sure.

But many who try aren’t doing it for the right reasons.
I used to think the point of live was to see who could die with the most money.

Now that I have enough of it to live the life I want I realize there is so much more and I was chasing the wrong thing all along.
I used to think there was one way to win: service based entrepreneurship.

I’m a hammer and everything was a nail.

Now I know there are thousands of ways to win and many many many different methods to achieve success.
I used to think the past was a predictor of the future.

Now I know that everything is cyclical and if you can’t change or adjust when the rules are different you’re destined to fail.
I used to think being private and extremely humble was the key to success.

Now I know you have to put on a bit of a show and share an uncomfortable amount to really get ahead.
I used to think the smartest person in the room would be the most successful person in the room.

Now I understand the best salesman in the room has the world at his fingertips.
I used to think the way to learn was to read books and listen to great teachers.

Now i know you can learn 10x as much teaching than you can as a student.
I used to think I could please everyone.

Now I know I have to accept being hated by a few folks to really add the most value to the others.
I used to think business competence could be taught.

Recently I’m not so sure.

There are thousands of decisions every day in the life of an entrepreneur.

Now I see my roll as simply to encourage the folks who have what it takes to give it a shot.
I used to think a new city with flashy things, better weather and a great culture would mean a better life.

Now I know it’s all about the group of people you have around you.
I used to think making friends was something that just happened if you were lucky.

Now I know you have to work at it like you work at anything else if you want to reap the rewards of deep relationships.
I used to think a few big bets paying off was all it took to get wealthy.

Now I know it’s a series of little bitty low risk bets over and over again for years.
I used to think the roll of bosses and fathers was to tell people what to do so they could get better.

Now I know the real winners are good at getting other folks to WANT to do the things they need to do to get better.
I used to think being a cynic was a great way to stay out of trouble.

Now I know being a cynic will never get you anywhere if you don’t have anything to begin with.

Positivity wins every time.
I used to think saving money was the sure fire way to keep money.

Now I know energy is put to a much better use when you focus on making more money.
I used to think being a bear took courage.

Now I know it’s being a bull that takes real courage. And the early bulls get the worms.
I used to think self-made was a thing.

Now I know everyone who claims they are self-made is a liar.

You get ahead by collaborating and pulling others up alongside you. And taking a lot of helping hands along the way.
I used to think there was always some kind of action that could be taken right now to improve something or fix something.

Now I understand that patience is the toughest thing to practice and often the most effective thing you can do.
I used to think the most successful people on twitter had “VC, investor, 3x exit” in their bio.

Now I know the real badasses don’t even want you to know who they are.
I used to think sweat equity was worth something.

Now I understand the golden rule - cash is king.

No cash? Very little leverage and even less equity.
I used to think that ideas were worth something.

Now I know that ideas are a dime a dozen because nobody is willing to do the damn work.
I used to think ideas were what was important.

Now I know execution is 10x as important and finding folks who can execute is 10x harder.
I used to think money was the most important and scare resource in the world.

Now I know money is abundant and TIME is what is scarce.

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More from @sweatystartup

14 Jan
It’s not about how much money you make. It’s about how much money you get to keep.

There are two types of CPAs:

1. Those who act like they work for the IRS.

2. Those work and fight for their clients.

I’ve fired number 1s and I pay good money for number 2s.

What I’ve learned:
You want a tax planner who gets aggressive, develops strategies for you to implement, and is prepared to take on the IRS.

You pay them good money for this.

You pay them to WORK FOR YOU.

But let’s think about the motivating factors:
Taking this approach is more work for the CPA. Bad CPAs don’t like doing work.

I had arguments with my first CPA about depreciation. He said getting aggressive was a bad idea because recapture taxes are significant.

He didn’t want to do the extra work.

I fired that CPA.
Read 11 tweets
13 Jan
Why is it I could check into an Airbnb 8 years ago with no human interaction by walking straight to my room...

But I spend 10 minutes at a hotel front desk signing papers and getting a room key.

Who is going to automate this industry and cut $300k a year in payroll?
The front-desk employee sits on their hands and does absolutely nothing all night.

A great cleaning and maintenance crew is all you need! Cut the breakfast and workout room / pool as well.

Big opportunity to automate some of these small mom-and-pop hotels in tertiary markets.
I know Hilton offers this as an option. But they still staff the front desk.

99.99% of small town America hotels staff the front desk or have a family that owns it and has to sleep nearby.

I'm talking about this from the lens of an operator and cutting costs, increasing NOI.
Read 5 tweets
11 Jan
If you trace back the lineage of the great real estate families who hold millions or hundreds of millions in property you’ll always find that one person who started it all.

The person who didn’t have the capital but created some through entrepreneurship.

The person who didn’t have the knowledge but took a chance, made the best decisions they could given the information they had, made a lot of mistakes, but found a way to build wealth through real estate.
They took what they learned and slowly but surely multiplied it over the years. Rolling the family wealth snowball down the hill.

I didn’t come from a real estate family.
Read 5 tweets
9 Jan
Why do most real estate folks sell their properties?

Because most aren’t real estate investors at all. They run a service business and they get paid in fees when they buy and in promotes when they sell.

True investors get paid by owning great assets for a long time.
Okay okay it’s still real estate investing.

But if you need to buy and sell every 2-4 years to make money and you stop working the money stops coming.

Finding a structure and getting enough capital into the stack that allows you to make enough money while you own it is the key!
If you can find a way to hold real estate for 10+ years that’s when the magic happens.

And it’s when you make money doing nothing but waiting!
Read 10 tweets
8 Jan
Amidst the chaos this year folks forget the following industries all had record sales / performance in 2020:

Exercise / fitness
Car sales
Video games
Domestic appliances
Ghost kitchens
Online meeting platforms
PPE suppliers
Dating apps
Online teaching
Online fitness
Children's Toys
Entertainment streaming
Food delivery
Divorce attorneys
Outdoor experience venues
ATVs UTVs Dirt Bikes
Photography equipment
Hiking supplies
Running shoes
Yoga supplies / online platforms
Cooking supplies
Painting supplies
Tools of all kinds
Guns and ammo
Guitars and instruments
Pools and spas
Videography equipemnt
Craft beer
All alcohol
Interior design
Read 9 tweets
8 Jan
If you're new to real estate twitter this is a must-read.

A thread on how most real estate folks structure deals with outside investors.

Most GPs utilize the "preferred equity" structure when they raise money from outside investors. They "syndicate" deals.

Here's the basics:
The person (or team of people) putting the deal together is the "sponsor". Also called general parter. Referred to on twitter as the GP.

They find the property, do all the work, hire the management company and take fees. They often co-sign debt and always secure the financing.
The investor is generally passive, doing no work and putting in cash. This is the "limited partner". Referred to on twitter as the LP.

They don't co-sign debt. They simply read reports and ask the sponsors questions and cash checks every month (if the deal is going well).
Read 30 tweets

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