50% of successful company builders hire people with experience. The other 50% hire friends and family and college buddies and people from twitter.
For the record I'm camp #2.
And they almost never come crawling to me asking for a job.

They almost always do something in real life to give me a look into how they think. And then I pounce!
If you want real talent...

You won't find it applying to your job and you definitely won't find it without plenty of prospects for other employment.

You have to find a way to spot it. Then sell it. Then motivate it and make sure to hold on to it for dear life!
75% of the world is incompetent.

And in an interview you have no way to tell. Trust me.

I've met very good conversationalists who are terribly incompetent.

You need to catch them in action!

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More from @sweatystartup

22 Jan
A THREAD that will allow you to fit right in around real estate Twitter.

With terms, definitions and the basics of the lingo you need to know:
NOI = net operating income

This is the profit a real estate asset makes BEFORE you consider the debt service payments.

We use this term as the ALMIGHTY measure because each investor may get different debt terms and thus debt payments.
Cap rate = NOI / Value

Divide the net operating income by the value of an asset (or what somebody paid for it) and you get a %.

That % is a cap rate. 7 cap means 7%.

If you pay $1MM for an asset at a 7 cap that asset generates 70k of NOI
Read 20 tweets
22 Jan
On Sep 3rd 2020 we closed on a 120k sf glove factory built in 1890 in a small NY town.

Has 45k sf of self storage inside and had $14k a month of net operating income at closing.

Let's breakdown this deal.

A THREAD on creating $2 million out of thin air in 18 months...

👇👇 ImageImage
First saw the property on Loopnet in mid 2018. I ignored it. Who wants to try to operate a business in an old factory in a dying NY town.

A few months later I reached out. Broker sent me financials. They were good. $24k a month in revenue and $10k in expenses. Image
So I visited the property. It was old. Needed a new roof. Full time manager. Only accessible to customers 9am-5pm M-S. No autopay. A lot of folks paying 1/2 market rent.

I loved everything about it.
Read 18 tweets
21 Jan
The hardest thing about entrepreneurship, real estate, or anything else worth doing:

You have to be able to look at incomplete information...

Or a complicated problem without a clear-cut solution...

And make a good decision on which way to proceed.

A thread 👇👇👇
There is nobody who can take you by the hand and lead you through a step by step guide to win.

Everybody's journey is different.

The 1,000 important decisions I made to win will look nothing like yours.

This is why success is so hard to teach..
Because there is one skill you need to have to win:

Resourcefulness.

The ability to find what you need and figure out solutions to problems that there are no correct answers to.
Read 10 tweets
21 Jan
We've used "seller financing" on two self storage deals in the past year.

And it raised our cash on cash return by 20%+.

And lowered the amount of capital we needed by $500k.

Here's a THREAD about a deal of mine and how this magical debt structure can work.

👇👇
My method is simple. In the late stages of negotiation I submit two offers:

One at a lower price.

And one at the exact price the seller wants but with him holding back 10-20% of the purchase price in the form of a 2nd mortgage (with a second position to your bank loan).
Contrary to popular belief seller financing rarely includes the seller holding back 70-80% and acting as your bank.

Two reasons:

#1 most have some debt on the property.

#2 most want most of their money now.
Read 13 tweets
20 Jan
Want to know how to get brokers to bring you deals first?

Want to build a machine that can buy real estate while you play golf?

Have a very professional and organized METHOD for closing on a property.

It's a system. And here's how we do it.

A thread 👇👇👇
The thing is most sellers (that I deal with) have never sold a property before.

They don't know what to expect. They don't know how it works.

So they naturally have unreasonable expectations and there is a lot that can get lost in the shuffle.

And it creates stress.
And most brokers are working several deals at a time. And they aren't at liberty to tell a buyer how to do business.

So their hands are tied.

And for that reason a lot of closings are shit show. They are delayed. They end up with lawyers huddled up on Thursday night at 10pm.
Read 13 tweets
20 Jan
How you know you've made it:

You get to stop doing business with assholes.

No asshole clients.

No asshole partners.

No asshole investors.
In the early days, when you're hungry, you have to do what you have to do.

Bend over backwards for customers.

Deal with disrespectful partners.

Take investments from folks who don't have the same vision as you do and bend the terms to their liking.
As you build enough experience and wealth this slowly shifts.

And you can start firing the bad customers.

Breaking up with the bad partners.

And buying out the bad investors.
Read 10 tweets

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