The Principal Who Built a 9-Unit Real Estate Business on The Side

TL;DR

In this podcast episode, Mackenzie Grate shares her journey of balancing a full-time job as an assistant principal with her thriving real estate business. The episode serves as a guide for those interested in investing, highlighting Mackenzie's diverse portfolio, which includes single-family homes, multi-family units, and a short-term rental. The discussion covers the challenges and benefits of investing with a partner, managing properties remotely, and the importance of setting specific goals for success.

Transcript

this is real estate rookie episode 227. I was living in apartment a two-bedroom apartment for many years in East Williamsburg and although I didn't own the apartment I guess I was kind of house hacking in the sense that me and my husband boyfriend at the time would live in one room and we would rent out the other room um and we were there for a ver... Read More

Key Insights

• Mackenzie Grate balances a full-time job as an assistant principal with a successful real estate business, showcasing her ability to manage multiple responsibilities effectively.
• Her real estate portfolio includes two single-family homes, a fourplex, a duplex, a short-term rental, and her primary residence, demonstrating her diverse investment strategy.
• Investing with a partner does not necessarily mean they have to be involved in the business; support can be shown in various ways, such as managing household tasks.
• Mackenzie started her real estate journey by identifying fast-growing job markets, highlighting the importance of market research in successful investing.
• She emphasizes the value of overcoming analysis paralysis, encouraging new investors to take small, manageable steps towards their goals.
• Mackenzie shares her experience with self-managing a short-term rental, using automation tools like Guesty to streamline operations and reduce workload.
• The episode discusses the pros and cons of getting a real estate license, particularly the impact on networking and property management.
• Mackenzie plans to expand her business by exploring new strategies, such as flipping properties, and aims to leave her full-time job to focus on real estate and interior design.

Questions & Answers

Q: How does Mackenzie balance her full-time job with her real estate business?

Mackenzie Grate manages her time effectively by working as an assistant principal during the week and dedicating her nights and weekends to real estate investing. She leverages automation tools and a supportive partner to handle household tasks, allowing her to focus on expanding her real estate portfolio.

Q: What types of properties are included in Mackenzie's real estate portfolio?

Mackenzie's real estate portfolio is diverse, including two single-family homes, a fourplex, a duplex, a short-term rental, and her primary residence. This mix of properties showcases her strategic approach to investing, allowing her to benefit from various revenue streams and market opportunities.

Q: How does Mackenzie approach investing with a partner?

Mackenzie emphasizes that a partner's support does not require their involvement in the business. Her husband supports her real estate endeavors by managing household tasks, which frees up her time to focus on investing. This arrangement works well for their relationship and business goals.

Q: What was Mackenzie's strategy for selecting her first investment market?

Mackenzie selected her first investment market by researching the three fastest-growing job markets in New York. She chose Kingston, New York, for its proximity to the city and potential for growth, demonstrating the importance of thorough market research in successful real estate investing.

Q: How did Mackenzie overcome analysis paralysis in her investing journey?

Mackenzie overcame analysis paralysis by taking small, manageable steps towards her goals. Purchasing her primary residence helped her realize the feasibility of investing, which encouraged her to pursue additional properties and expand her portfolio with confidence.

Q: What tools does Mackenzie use to manage her short-term rental?

Mackenzie uses automation tools like Guesty to manage her short-term rental effectively. These tools help streamline operations, such as booking management and communication with cleaners, reducing the workload and allowing her to self-manage the property despite her busy schedule.

Q: What are the pros and cons of getting a real estate license according to Mackenzie?

Mackenzie notes that having a real estate license can expand one's network and provide valuable insights into the housing market. However, it may also impose restrictions, such as disclosure requirements for off-market deals. She advises pursuing a license if one is passionate about helping others buy and sell real estate.

Q: What are Mackenzie's future plans for her real estate business?

Mackenzie plans to expand her real estate business by exploring new strategies, such as flipping properties. She aims to leave her full-time job to focus on real estate investing and interior design, leveraging her experience and network to grow her business and achieve her goals.

Summary & Key Takeaways

• Mackenzie Grate, a full-time assistant principal, shares her journey of building a successful real estate business on the side. Her diverse portfolio includes single-family homes, multi-family units, and a short-term rental, demonstrating her strategic approach to investing.

• The podcast explores the dynamics of investing with a partner, emphasizing that involvement is not necessary for support. Mackenzie's husband supports her endeavors by managing household tasks, allowing her to focus on her real estate business.

• Mackenzie discusses the importance of setting specific goals and overcoming analysis paralysis. She highlights the role of market research in identifying investment opportunities and shares her experience with self-managing a short-term rental using automation tools.