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Matt Faircloth has been a full-time investor since 2005. In that time he has successfully completed projects involving dozens of fix and flips, office buildings, single family homes, and apartment buildings. He has completed over a Hundred Million in real estate transactions and controls thousands of units of multi family.
He is a regular contributor and podcast guest on Bigger Pockets.com, has an active YouTube Channel dedicated to educating investors, and the author of the Amazon Best Seller, Raising Private Capital, How to Build your Real Estate Empire with Other People’s Money.
In this week’s episode, we explore the following:
1. How and why do people with engineering backgrounds excel in real estate investing
2. What is the best team structure for a successful real estate business? Keep it lean!
3. How can entrepreneurs use their personality traits to their advantage when building a real estate business?
4. Why you should avoid giving up equity in your business too easily and hire help instead, whenever possible
5. Some key ways to engage and convert your potential investors by using email outreach
“Besides coming equipped with maths skills, people with backgrounds in engineering are natural problem-solvers, which lends itself well to working in the real estate world.”
Some key points:
(01:47) Who is Matt Faircloth? From engineering, to sales, to reading Rich Dad Poor Dad and meeting his wife, who is a great RE investor in her own right
(04:45) Why are so many people with engineering backgrounds involved in real estate?
Many have backgrounds in maths, which is obvious; and many have a bug for entrepreneurship, which is surprising, but very common all the same
(07:30) Engineers are natural problems solvers, which carries over well into real estate
(09:30) Matt manages to make practical use of his knowledge of thermodynamics when working in real-estate problems
(11:04) Once your business grows, you can “fire yourself” from a lot of the daily duties, and instead become the guy with the veto power
(12:41) Matt breaks down the composition of people in his team
Matt handles marketing and sales himself, his other two partners handle acquisitions and operations
(14:12) Initially, Matt brought in too many partners. His recommendation: don’t give up equity unless you have to; hire instead of partnering
(15:59) How to decide which functions should remain at the partner level, which ones at the employee leveI. In Matt’s view, you need 3 key functions: someone to find the deals, someone to do analysis, and someone to do the funding
(19:05) It’s good to have a mix of introverts and extraverts on your team
(21:57) The stuff you find yourself procrastinating on is the stuff you are (probably) not good at and should outsource
(25:56) Matt’s high-level system for raising money and getting investors
Matt makes use of InvestNext
(28:41) Getting eye-balls on your project is all about solid emails: collect emails and engage your audience with persistence
(31:06) Matt explains the JAB-JAB-JAB-HOOK method for getting people’s emails and doing outreach
(03:27) The conversion rate for a list of potential buyers is around 5% to 10%
(35:31) The current environment for raising capital
(38:44) Matt’s plans for the next 3 to 5 years: multi-family will remain the core; Matt is also consider adding some other real estate classes into to mix
(40:14) How to reach out to Matt
🌎Reach out to Matt Faircloth
Website https://derosagroup.com/team/
LinkedIN: https://www.linkedin.com/in/mdfaircloth
IG: https://www.instagram.com/themattfaircloth/?hl=en
Matt on YOUTUBE: https://www.youtube.com/@Abundantking/videos
🌎Reach out to Jonathan Twombly
LinkedIn: https://www.linkedin.com/in/jonathandtwombly
Loved this episode? Leave us a review and rating on Apple podcasts by clicking here.
Make sure to also check some of our previous episodes:
Going From Working In Hospitality To Multifamily Investing & Hotel Conversions With Charlie Rushton
Hotel Conversions To Multi Family Housing With David Peters
🎤 Podcast production Everglade Media
