How To Raise Money To Get Through Tough Times With Brandon Brittingham
With the current market we’re dealing with, raising money is a challenge for everyone, especially the investors. Many business owners make a mistake as they walk on a journey of a sale’s mind instead of walking through a consumer’s mind. In this episode, Brandon Brittingham shares how you can raise money with a business owner mindset to get through tough times. He also shares his experience on how he was willing to gamble to build a massive brand in the first recession. Tim Herriage took the chance to squeeze out some more insights from Brandon, not only about how he maintains trust from an ethical point of view but also how it impacts doing business. Tune in to this episode to gain more gems of wisdom from Brandon. — Watch the episode here Listen to the podcast here How To Raise Money To Get Through Tough Times With Brandon Brittingham I’m with an absolute rock star. Brandon Brittingham. Thank you for being here. I appreciate you. Thank you. Tell everybody a little bit about yourself. I do a lot of cliff notes. Anything that has to do with a home sale. I own a company around it. I have been in the investment space for a long time too. Why I originally got into real estate was to be in the investment space, and then I got into the retail side. I tried to create Amazon in real estate to how we can make it easy on the consumer. I have always had an affinity and love for investing in real estate. I have always done that too. I was lucky enough to sit next to you at Kent Clothier’s boardroom in Chicago. I remember I was sitting there, and I had no idea who you were. I got up and spoke. Sometimes I’m a little bit of the alpha in the room. People don’t want to give me feedback, and you like popped up and quietly, “I can help you with that problem.” I heard the authority come out. It was like, “What did you do then?” I was like, “Who is this guy?” The more and more the day got on, it was so fun to watch you pour into people. I’m excited to have you here. I start every episode with the bottom line up front. Do me a favor, take two minutes, tell the audience the single most important things in this market they need to be doing, avoiding, focused on, and changing. Whatever you think the bottom line is for this real estate investor. In this market, a lot of people try to make the mistake is timing the real estate market. If you look at real estate over the whole, you are going to make money if you understand how to underwrite a deal. If I could do anything over again, one thing that I would tell people is to figure out how to go after the bigger deals because it’s another zero. Your underwriting is the same, and everything is the same. In a lot of apartment deals and things like that I have done, the underwriting is easier than a smaller single-family portfolio, and it is way less pain. The appreciation and the economies of scale that I have gotten from apartments are insane. Asset classes like apartments and single-family houses, over time, are going to beat anything that’s out there. It’s one of the safest places to place your money but people are always trying to like, “Should I buy now? Can I time the market?” You underwrite a deal. It’s a good deal or a bad deal. Over time, if you buy and hold, the key to wealth is buying and holding and not emotionally selling and buying on a whim. Underwriting is being smart about what you do with your money and holding for the long-term. If you study and pay attention to anybody that’s wealthy, they hold cash-producing assets. They never pay taxes on it. Keep buying more and figure out how to never sell it. Pull their cash out of it to live off of but they never sell anything. If you follow that model in real estate over time, it’s going to make you wealthy. Don’t care about timing the market. Now, we are going to see some pain across the United States. It doesn’t necessarily mean that it’s real. There’s going to be perceived pain from people that were probably smaller investors or they didn’t know what they were doing. There’s opportunity. I would tell everybody to raise as much money as they can. Stack capital because there’s going to be an opportunity. The bulk of my wealth that I have was because I bought a ton of stuff between 2008 and 2011. Now, those assets that I bought are 10X and 15X. Stack capital now and wait for the opportunity. Opportunity is going to come but if you see a good deal now, don’t wait. If you know how to underwrite a deal and you are going to hold it for the long-term, you are going to make money either way. Don’t buy and sell. Buy and hold. Buy and hold make you wealthy. Stack cash and assets and take advantage of the compound effect of appreciation. Too many people underestimate the compound effect of appreciation. I spoke at Scale & Escape and was looking for some good examples. Besides Tim, the lender tells them, “Buy houses and always pay interest.” It was an interesting thing. I found that in 1971, Warren Buffett bought a home in Laguna Beach and borrowed $120,000 against that home. The CNBC host says, “Why would you have taken a mortgage? You didn’t need it.” He said, “The interest rates were a little high but I figured I could do better with the money than the interest would cost me.” That house he bought for $150,000. It was worth $11 million when he sold it
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