Making a 25 Deal/Year Business (and Marriage) Work... Together! | BiggerPockets Podcast 394

TL;DR

Elliot and Chrissy Smith share insights on thriving in real estate and marriage.

Transcript

this is the biggerpockets podcast show 394. you're listening to bigger pockets radio simplifying real estate for investors large and small if you're here looking to learn about real estate investing without all the hype you're in the right place stay tuned and be sure to join the millions of others who have benefited from biggerpockets.com your hom... Read More

Key Insights

• Elliot and Chrissy Smith left stable careers to focus on real estate, doing about 25 deals a year through flipping, wholesaling, and rentals.
• Initially, their business strained their marriage, but they adapted by defining roles and managing cash flow effectively.
• They emphasize the importance of having trust and communication in both marriage and business to ensure success.
• Elliot shares a negotiation tip: do the math with sellers at the table to reach a fair offer and build trust.
• The Smiths use a systematic approach to flipping, using the same materials and designs to streamline processes and reduce decision fatigue.
• They advocate for focusing on one business bridge at a time to completion, before starting another, to avoid spreading resources too thin.
• Their success is attributed to persistence, mindset, and leveraging resources like BiggerPockets and networking for continuous learning.
• The couple balances each other's strengths and weaknesses, with Elliot driving deals and Chrissy managing finances and systems.

Questions & Answers

Q: How did Elliot and Chrissy Smith start their real estate business?

Elliot and Chrissy Smith began their real estate business by leaving their stable careers to focus on flipping, wholesaling, and buying rental properties. They initially faced challenges balancing their business and marriage but adapted by defining roles and managing cash flow effectively. Their journey involved learning from mistakes, leveraging resources like BiggerPockets, and continuously refining their approach to real estate investing.

Q: What strategy does Elliot use for negotiating with sellers?

Elliot uses a straightforward negotiation strategy by doing the math with sellers at the table. He breaks down costs, potential profits, and necessary repairs to reach a fair offer. This approach builds trust with sellers and ensures transparency, making it easier to negotiate deals and establish a good working relationship.

Q: How do Elliot and Chrissy manage their roles in the business?

Elliot and Chrissy manage their roles by clearly defining their responsibilities within the business. Elliot focuses on driving deals and negotiations, while Chrissy handles finances and systems management. This division of labor allows them to leverage each other's strengths, minimize conflicts, and ensure that both the business and their marriage thrive.

Q: What is the importance of having a systematic approach in real estate?

Having a systematic approach in real estate is crucial for streamlining processes and reducing decision fatigue. By using consistent materials and designs in their flipping projects, Elliot and Chrissy can focus on more critical aspects of their business, such as finding deals and managing finances. This approach also allows them to scale their operations efficiently and maintain quality across projects.

Q: How do Elliot and Chrissy balance work-life as young parents and business partners?

Elliot and Chrissy balance work-life by emphasizing trust, communication, and defining clear roles within their business. They prioritize spending quality time with their child and each other, while also maintaining focus on their business goals. By leveraging each other's strengths and supporting one another, they manage to keep both their family and business thriving.

Q: What advice do Elliot and Chrissy have for new real estate investors?

Elliot and Chrissy advise new real estate investors to focus on persistence and mindset. They recommend starting with a clear plan, leveraging resources like BiggerPockets for learning, and building a network of mentors and peers. They also emphasize the importance of sticking with a process, even when faced with challenges, as consistency leads to success in the long run.

Q: What lesson did Elliot and Chrissy learn from their deal deep dive?

From their deal deep dive, Elliot and Chrissy learned the value of building and trusting systems. By having established processes for flipping houses, they were able to execute projects smoothly and efficiently. This experience reinforced the importance of having a systematic approach, which allows them to focus on scaling their business and reducing stress associated with decision-making.

Q: How do Elliot and Chrissy view the role of cash flow in their business?

Elliot and Chrissy view cash flow as a critical component of their business success. They manage cash flow meticulously to ensure they have the necessary funds for both their flipping operations and long-term rental investments. By balancing short-term profits with long-term wealth-building strategies, they maintain financial stability and continue to grow their real estate portfolio.

Summary & Key Takeaways

• Elliot and Chrissy Smith transitioned from stable careers to real estate investing, focusing on flipping, wholesaling, and rentals in Washington state. They faced challenges in balancing their business and marriage but found success by defining roles and managing cash flow effectively.

• The couple shares insights on maintaining a work-life balance as young parents and business partners. They emphasize the importance of trust, communication, and sticking to a systematic approach in real estate to streamline processes and reduce decision-making fatigue.

• Elliot offers a negotiation tip for real estate investors: do the math with sellers at the table to reach a fair offer. The Smiths also highlight the value of focusing on one business venture at a time and leveraging resources like BiggerPockets for continuous learning and networking.