00:00:00:00 - 00:00:17:18
Unknown
It needs to have an operating system. And I'm not talking about E-Myth or EOS. I'm talking about a real estate specific operating system because we're unique in business. In fact, I think real estate investors who turn into real estate business owners become the best business owners across any industry,
00:00:17:18 - 00:00:24:21
Unknown
we are in the business of taking the asset that people pay the most money for in their entire lives and helping that thing trade multiple times.
00:00:25:00 - 00:00:26:19
Unknown
It's super capital intensive.
00:00:26:19 - 00:00:39:18
Unknown
It's totally different. It's a challenging business. If you don't understand how to do it the right way.
00:00:39:20 - 00:00:59:19
Unknown
Welcome back to the Seven Figure Flipping podcast. I'm your host, Adam Whitney. And today we're going to tackle a topic I know you guys are thinking about all the time in your business. And that's what most real estate investors struggle to do in order to actually achieve scale in their business.
00:00:59:20 - 00:01:23:15
Unknown
Now, why would I talk about this? What do I know about scale? What do we know about scale in seven figure flipping? Seven figure flipping has been responsible for taking people from a few deals a year to literally 2 or 300 deals a year. Over the last ten years, we've had thousands of investors come and be a part of our community, many of which actually stayed and continue to be a part of our community today.
00:01:23:17 - 00:01:45:13
Unknown
So not only do we do this and our business, not only have we had our business doing 200 plus deals a year for a very long time. We've seen so many other people do it. So we learned some things along the way, and I want to share some of those things with you today. And these are the things that actually change when your business breaks through.
00:01:45:14 - 00:02:06:12
Unknown
First off, the pattern that most investors experienced, let's just talk about the growth path now in our community, we have something that our Alpha two community, our high level operators who are doing, who have a business. It's not just a real estate flipping company. They have an actual business. They have a team. They have systems in place and process in place.
00:02:06:14 - 00:02:29:05
Unknown
And they they can go on a vacation for 30 days if they want to. It's a business. It is not a hustle. So what are the patterns that happen in the altitude community? We employ a system called the real estate business operating System. And this is a system that gets employed. It takes you through people, it takes you through organization.
00:02:29:05 - 00:02:59:21
Unknown
It takes you through, the, the system, the operating system. And it takes you through revenue optimization. We call it the real estate business operation system, also known as Rebus inside of our community. And this is really the catalyst for people to come through scale and what we see as we see five stages of scale in businesses. It goes from survival to existence to success, and it goes all the way up to maturity.
00:02:59:23 - 00:03:20:15
Unknown
And I'm not going to go into those in depth, but I just want to talk generally about what we see. That should be you get some early wins, the drive and hustle. You know, these are the newbies who actually do some deals. I would I would call these people really, really the I hate the term newbie outcome, the serious beginner.
00:03:20:17 - 00:03:42:15
Unknown
Why? Because they actually going to do the thing. They do get deals. They do bring revenue in and it's heavily involved in them. Right? It's like it's personal heroics. And then they start to soak in information. They learn, they skill up. Maybe they bring a few people on their team, their deal volume goes up, but often times so does their stress.
00:03:42:15 - 00:04:08:17
Unknown
Because now instead of like a deal at a time, they've got multiple things happening at one time. They're not necessarily experienced in hiring yet. They don't know what infrastructure they need. And we break things and they go through this journey and they break things. And then, oftentimes they, you know, the the folks who are serious beginners and do the things that they're supposed to do, the break things along the way, they get the revenue growth, but they don't.
00:04:08:23 - 00:04:33:08
Unknown
What ends up happening is they might be doing a lot of volume, actually. They may be doing meaningful seven figure plus or multiple seven figure revenue, but then they don't have any clarity, they have no control, and they have zero predictability. They think they have some predictability. But when you just ask them simple questions, they don't they don't have reasonable answers to what's truly happening in their business.
00:04:33:10 - 00:04:53:03
Unknown
Now, from the outside, these folks all look super successful and it looks good on the internet. And, what what what I think people see from this, though, because of what they portray on the internet is like, oh, if I just work harder or find better deals, you know, things will get better in my business. And that is just flat out wrong, right?
00:04:53:05 - 00:05:21:05
Unknown
The hustle doesn't work, and the hustle doesn't. It works early, but it doesn't work forever and works early because honestly, real estate's pretty simple. And you, when you're small, you can control every aspect and your deal volumes manageable. But as the business grows, the decision volume increases. You're making so many micro decisions, it just burns you out. You get decision fatigue, you start to get capital constraints.
00:05:21:06 - 00:05:48:19
Unknown
You can only buy so much real estate with, you know, the limited. You need more money, period. It's a capital intensive business. And then mistakes start to become expensive, right? If you're doing 1 or 2 flips a month and now you're doing ten, 20 flips a month and you start to lose on 25% of your deals, like, and you've got investor money, like, things can go really bad if you don't have a great system, to be clear and control.
00:05:48:19 - 00:06:15:15
Unknown
So, you know, most investors, they think, you know, and I talk to people all the time and they're like, I have a deal problem. My market's competitive. I have a capital problem. And honestly, it's like, yeah, sure. Those are unique independent problems, but it's a business design problem. Like, you don't you aren't putting basic fundamental business things in place that are allowing you to do what you actually set off to do.
00:06:15:15 - 00:06:35:06
Unknown
And when I talk to people, I ask, why are you doing this? What did you get in this business for? Why is this important to you? There has something to do with freedom. The word freedom routinely comes up to me. Now, here's what's interesting. It's not all about like I rarely people hear people say, I just don't. I don't want to work anymore as want money to come in.
00:06:35:08 - 00:07:01:09
Unknown
I want to go to the beach. So that whole adage people want to people want the freedom to decide what they do when they do it. And most of the people who do this business will like to work. In fact, that's probably the problem isn't work. The problem is they work too much and we need to help them be more well-rounded as a as a human, a father, a husband, a mother, a daughter, you know, the whole that whole thing like that's really critical because those things are really what help you to grow and build a better business.
00:07:01:09 - 00:07:31:15
Unknown
So it's really putting a business together by design and we often talk about the symptoms. Right. We're not talking about root causes. We're talking about symptoms. You know, and it's like capital availability. That's what's dictating your growth or exit strategies are chosen reactively instead of proactively. Or you don't have the appropriate skill training or people on your team to execute the exit strategies that bring you the most money.
00:07:31:17 - 00:08:02:21
Unknown
And in order to do that, you need systems and process and framework. It needs to have an operating system. And I'm not talking about E-Myth or EOS. I'm talking about a real estate specific operating system because we're unique in business. In fact, I think real estate investors who turn into real estate business owners become the best business owners across any industry, because are we are in the business of taking the asset that people pay the most money for in their entire lives and helping that thing trade multiple times.
00:08:03:00 - 00:08:23:10
Unknown
It's super capital intensive. It's totally different. It's a challenging business. If you don't understand how to do it the right way. So then they're not tracking their numbers. These are the symptoms. You don't know any of your numbers. I talked to a house flipper one time and I said, how'd that flip do? And he said, I know it did.
00:08:23:10 - 00:08:44:12
Unknown
Well, I'm like, when you say it did well, like, did it make money? Like, what was your net profit on that deal? Was your gross profit on that deal? No idea. They have no idea. And they're trying to scale at the same time. Like you can't do that. You will fail. You will fail. And the ones who break through have an operating system.
00:08:44:17 - 00:09:06:20
Unknown
So the businesses I think of, my one of my mentors and even Bill's mentor, Andy McFarlane, Andy was on. He had a plan to go on 12 vacations last year, and he did, he's doing it this year to, in fact, like, he send me videos from like Iceland, Egypt, Israel. He's taking his kids and he's enjoying his life because he's built such a beautiful thing over the last two decades.
00:09:06:22 - 00:09:36:21
Unknown
And his real estate business, by the way, he's still flipping over 100 houses a year every year since 2013. That has not stopped. Of course, you wholesale some of those deals and flip some and wholesale some has multiple exit strategies. But what he has is the right people in the right operating system in place. And we have this, with this thing where we focus and re boss and our real estate business operating system for our seven figure flipping members.
00:09:36:21 - 00:10:03:14
Unknown
We're we're working on the capital strategy, the systems of processes, the exit optimization, the data and tracking. And then we have AI tools that are supporting our members. And they're able to use these, these these AI tools to get like very, very, very good clarity. And they implement this system in their business. And I just watch like their growth, step up and step up and step up and step up.
00:10:03:14 - 00:10:25:23
Unknown
And it's like, oh my, I can't believe people today are scaling responsibly faster than I ever had the chance to because they have so many more resources. They have such a better system. They have access to better data, better information, the ability to bring on better people faster, and it's allowing them to scale. But responsibly without breaking everything.
00:10:26:01 - 00:10:45:03
Unknown
And you know, this, this robust framework is really, if you're new, a serious beginner, you've done a deal or two like this is not for you. Like you don't need to worry about this if you're new, you need to be worried about just getting go get 250 grand revenue through your door, then give me a call. We can't be talking about business operations when you know you're not making any money.
00:10:45:03 - 00:11:03:11
Unknown
This is for investors who have already proven that they can do the deals in a consistent way. A couple deals a month at least. And these are the operators who are maybe like feeling cat by like your time or the complexity you have in your business. And maybe you're just seeking like some stability and some predictability, like, this is who I'm talking to.
00:11:03:11 - 00:11:29:03
Unknown
You have that to you, right? Not newbies, not serious beginners. And, if you're not willing, by the way, there's you could be doing deals, but you're unwilling to actually build systems and accountability in a world like this also isn't for you. You can just continue with your chaos and your lack of control and, you know, just being upset that things aren't going the way you want them to because you're unwilling to do what it takes to put the right things in place.
00:11:29:03 - 00:11:53:11
Unknown
So this is for the people who truly, truly want to be an operator who has stability and predictability that you already know. Hey, I'm capped by my time, my capital, or the complexity of my business. Like, this is the sort of for that. And why, why we like this is in our community and we haven't really. So we did this whole thing in Park City.
00:11:53:11 - 00:12:15:23
Unknown
We did a two day event. We have a business coach, who does a unique business coaching. It's like, not not like anything else you've seen. It's not us. It's not any of that garbage. And he came out for a day in Park City, Utah at our event last summer and just poured into our community and helped, folks get robots implemented into their system.
00:12:16:00 - 00:12:39:17
Unknown
And we've only done this in our seven figure altitude community with all our higher level investors. You know, we're doing dozens, a dozens of deals minimum annually. And Bill and I were talking like him and I are probably two of the best operators for any business anywhere. Like we can take an idea to implementation better than anybody, like operating systems is our game.
00:12:39:17 - 00:13:04:04
Unknown
I spent 20 years in the military. He spent 20 years in the military. He's an engineer like we built multiple seven and eight figure businesses together and we're just great at it. Just being straight, honest. Like, I know who's supposed to be humble, but like, I am really good at that kind of thing. And so we decided that, like, we believe in abundance, we try to we always do all these like free events or these really cheap events to like, put value into the marketplace.
00:13:04:04 - 00:13:26:11
Unknown
And my hope is that you get so much value in the marketplace that you go, okay, yeah, these are my people, and I want to be a part of the seven figure floating community. And that's for two reasons. One, because I'm an active real estate investor in the community, which means the more better act of real estate investing in the community, the more that I get to share good ideas with great people and they share with me, makes my business better.
00:13:26:12 - 00:13:43:16
Unknown
And the other reason is because we want to grow something bigger. Flipping with people who align with our values and that's more important to us. And if you do 300 deals, but you don't align with our values like I don't care, you can't be here. Like I'm just I'm sorry. That's not who we are. There are places for you, but it's not here.
00:13:43:18 - 00:14:07:14
Unknown
If you care about values, family, service, legacy, this is the place for you. This is where the operators live that do that. Now taking this public, what can we give? We thought we thought let's do an event called Achieve Scale. And we're going to create this to like help you identify what is actually limiting your growth. So find the constraint in your business.
00:14:07:16 - 00:14:25:21
Unknown
We want to provide clarity on what specifically you need to install next. And then we want to for play some of the stuff like you have when when we get this clarity for you through our frameworks and models, you're going to end up replacing like a lot of this stuff that's like guesswork for you. And you're going to find like, okay, that's the piece of proven structure that I need.
00:14:25:21 - 00:14:52:22
Unknown
And we're going to walk through, like how scalable investors think about the business because that's first you have to frame correctly. We need to definitely talk about how your capital is structured to support your growth, how your infrastructure is, structured to support your growth. And then we're going to have to talk about exit systems and data and how they work together to achieve scale effectively and profitably, which is the most important part.
00:14:52:23 - 00:15:15:07
Unknown
And then this all brings you from really a reactive operator to an intentional operator who's predicting and scaling, with net profit margin. Most important thing. So, we're going to do this and if you are like, crap, that's me. Like, I need those sessions. We're going to do this. I meant, you can come to it. I'd love to have you there.
00:15:15:09 - 00:15:28:23
Unknown
I don't know, there's going to be a sign up. You're probably going to have to qualify. So if you're doing a few deals, like just sign up and if you qualify, you'll get the invite to come. We'd love to have you. And I think this will be really massive because it's not gonna be a whole bunch of stuff.
00:15:28:23 - 00:15:48:01
Unknown
It's going to be. Let's find the constraint in your business. Let's bust through that and help you get the right part of the system you need right now. And it's it's our give. And I love doing it. Bill loves doing it. I think it'd be really awesome, for you guys. And I know it's like it's like something that can literally make, you know, multiple six figures to your bottom line because you do one thing and solve one constraint in your business.
00:15:48:06 - 00:16:09:22
Unknown
Okay, cool. Let's talk about a few key takeaways from this quick recap. You know, a look hustles great. It can make you some money, but you can't do it long term. You will get burnt out, period. You know, just because you're doing more deals doesn't mean you've effectively scaled. This is probably the number one problem. The industry where people see somebody else doing a zillion deals, they want to do a zillion deals.
00:16:10:00 - 00:16:33:07
Unknown
They cook up the marketing, then they don't get the ROI. They're actually not making. They're making less money doing more deals than they were before. It's crazy. It's crazy. Let's not do that. So let's get in. Let's find the constraint. This is the key takeaway. Find the constraint. Solve the constraint with a good system of process. Solve the people problems.
00:16:33:09 - 00:16:50:10
Unknown
Solve the revenue optimization problems, which is what we're going to do on this and put the right frameworks in place to make sure you're making decisions in the right way in your business. So you don't need any more motivation. We're not going to be hyping you up. That's not what It's not we're really great, to be honest.
00:16:50:10 - 00:17:08:15
Unknown
I'm certainly not built maybe a little better than me. But I am great at helping you get better business structure in place to make you more money. So registrations free. I'll put the link in the description and this is for you. If you're ready to start growing and scaling your business in a profitable way. So I hope this was useful to you.
00:17:08:15 - 00:17:30:23
Unknown
I hope to see on the training. If I were you, I would click that link and get signed up right now. Obviously we can't help every single person if we're going to do this kind of an intimate setting. So, get signed up now. I want to see you, and I want to see if if you can come, if you qualify, even if you've done a few deals, depending on your background, there could be some reasons we might let you come.
00:17:31:01 - 00:17:43:05
Unknown
So don't not apply. But definitely, definitely click the link, get your information in there and I will see you at the Achieve Scale event we're doing. I'm excited. I'm excited about it. And thanks for tuning in in this one. And I'll see you guys on the next one.
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