089: How to Get Quality “Boots on the Ground” in Your Investing Market

SHOW NOTES FOR EPISODE 089 –  HOW TO GET QUALITY “BOOTS ON THE GROUND” IN YOUR INVESTING MARKET

In this episode,  Reed Goossens, a US-based Australian investor, shares how he grew his real estate  investment business from one duplex to over 600 units.  As an out-of-state investor, he attributes much of his success to building strong teams in each property location.  He shares a few of his valuable tips on how to build top quality “boots on the ground.”

What You Will Learn

• How working a boring 9 to 5 job is strong motivation to change your situation
• How hiring a coach helped propel his real estate investing significantly
• The importance of finding a key anchor person in each market that you can trust
• How his “Australian Mafia” helped him build a strong market presence
• What three key things you need to understand to succeed

About Our Guest

Reed Goossens

Reed moved to the U.S. in 2012 to pursue a career in structural engineering, however he discovered a passion for real estate investing.  With limited funds and no credit, Reed went from purchasing a small duplex to growing his own real estate investing firm, RSN Property Group to over 600 units. – Reed now syndicates large multi-million dollar deals across the U.S.   Reed Goossens certainly lives up to the “never say die” Aussie attitude when it comes to being a successful entrepreneur.

Reed is also the host of the up & coming podcast, Investing in the U.S. –  An Aussie’s Guide to U.S. Real Estate, wherein he invites other distinguished real estate investor s and entrepreneur s to speak with him about their success and help guide other international investor s who want to successfully invest in the U.S.!

More About Reed

• Grew up in Australia
• Started as structural engineer
• At 21, got a job working in London on 2012 Olympics
• Spent 2 years in Europe, backpacking around
• Met an American girl who would later be his wife
• Returned to Australia
• Got a day job, worked in a cubicle
• Became restless, started looking at investment books – read Rich Dad Poor Dad
• Moved to New York city to be with his girlfriend
• Got an engineering job in New York in 2011
• Started attending REI networking events

First Investment Property Purchase

• Within first 6 months to a year purchased a duplex in upstate NY
• Had no credit so had to pay all cash
• Bought a bunch more (small duplexes)
• Ran out of money

How Hiring a Coach Transformed His Business

• 2013, hired a coach
• Learned about syndication
• Did first syndication in 2015 (250 units – received finder’s fee)
• A few more in 2016 (equity stake – on General Partnership side)
• And 2017, trying to close on 610 units
• Raising capital – if he brings in investors, it impacts his percentage of the deal and he communicates separately with his investors (they know and trust him)
• Building a brand
• Investors
  • Most American
  • Some Austrailian
  • Israel
  • Singapore

Biggest Mistakes

• 2013 flipped some houses
• He did all the drawings for the work
• Hired the wrong contractor
• Didn’t do effective due diligence
• He didn’t clearly outline his expectations for the contractors at the start of the job – have them sign and agree to terms and objective or suffer penalties or, if they meet deadlines and budgets, they are rewarded with bonuses
• A lot of head butting
• He had high expectations
• Things stolen on sight
• Had to fire contractor
• Lost money on the flip

His Investment Markets

• Texas
• Philadelphia
• Upstate NY
• Looking at:
  • Phoenix
  • El Paso
  • Kansas City, MO
  • DFW
  • Houston
  • San Antonio

Putting Together a Strong Out-of-State Team

• Need to trust your local people and that takes time
• He needs to find a key person in each market and trust the people that person adds to team
• He found Australians for each market (called them the Australian Mafia) – mostly found through his podcast
• It takes time to raise a good team

Advice for People Starting Out in Real Estate Investing

• Need to look at three areas
  1. Capital Preservation
  2. Cash Flow
  3. High Returns – higher risk

• Decide what you want most

• Steps
  1. Understand what you want to be investing in and what you want your money to do for you
  2. Educate yourself: mobile home parks, self-storage

His Goals

• 600 units this year
• Continually be adding
• Long-term wealth for family
• Freedom with his time
• Find good deals for investors
• Low-risk investments
• Personal
  • Brand and legacy he can be proud of
  • Did everything well and with dignity
  • Trust and transparency
  • Create a legacy

Rap-It-Up

• Favorite real estate book: Rich Dad Poor Dad by Robert Kiyosaki
• Favorite business book: 10-X Rule by Grant Cardone
• Most valuable web site for success (other than your own): BiggerPockets.com
• Favorite app: Calendly
• Favorite quote: “A fool and their money are easily parted.”
• If you had to start all over, knowing what you know, and you only had $1,000, what would you do to launch your real estate investing business? I would invest in a mentor or life coach to help me understand where I went wrong and to set a new path

How to Reach Reed

• eMail: reed@rsnpropertygroup.com
• Website: RSNPropertyGroup.com
• Podcast: Investing in the US

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Episode Sponsor: Meno Studio – menostudio777@gmail.com