July 21st, 2022
Something I’m Reading
Currently reading Do Epic Sh** by Ankur Warikoo. It’s written by an Indian entrepreneur and business owner on some of his successes, failures, lessons etc. It’s not a “must read” but is a good read nonetheless. Enjoying it so far!
Something I Teach
Let’s talk about an organizational chart. I believe an organizational chart is something every single real estate investor and entrepreneur should have, even if you are the only person in your company. What an org chart does is show your company structure as a whole from the CEO down to the grunt workers and the divisions that they all work within.
Imagine your company is significantly larger than it is today. Write up all the different roles and who works under which department and spend some time narrowing down what your org structure looks like. Only write the roles, not the names of people.
Once your done and you have an outline of what your ideal business structure should look like, then you can fill names into those roles. In the beginning, your name may be in every single spot.
The reason I believe this is so hopeful is three-fold:
a) It forces you to remember that you play different roles at different times and helps you create processes for those roles while you’re in them
b) It helps you to start noticing who could fill those roles for you and helps you rapidly expand into that
c) As you build your team, it gives clarity to your team to see who is responsible for what and who reports to who
If you haven’t yet done an org chart for your business, I highly recommend it. Here’s a very simple sketch and example:
Something I Photographed
Hanging with the kids at Lake Coeur d’Alene :)
Something I’m Excited About
It’s been just over a week since ODC launched Array Apartments and we’ve already received over $21M in commitments, putting us over 60% subscribed 🤯 Crazy! Click here to see what all the excitement is about.
Something I Can Answer
Every week, I answer one question asked by a BTB subscriber. Have a question you want me to answer? Reply to this text with your question!
Question: “What is your favorite creative financing option in real estate?”
It really depends on what stage of the real estate investing journey you are in. If you are just starting out with very little money, I am a huge fan of the FHA 203k loan to do a househack while doing a rehab to improve the property. You get the best of everything. You only have to put 3.5% down of the total property cost, including repair costs. You get to build instant equity by improving the property to make it worth more. And you get the experience of managing a rehab and working with contractors.
If you’re more experienced, I am big fan of the BRRRR strategy - Buy Rehab Rent Refinance Repeat. You take your cash you do have to buy a property, fix it up, refinance it to get your money back out and redeploy your capital to do it again and again. You can BRRRR a single family house, 5-plex, a 200-unit apartment complex and everything in between.
Your Friend,
P.S. Comment below and let me know your thoughts on this week’s BTB! Please be friendly :)