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Turn Key Real Estate Investing with Nathan Brooks

SHOW SUMMARY:

Nathan Brooks is the co-founder and CEO of Bridge Turnkey Investments. It is a Kansas City-based company renovating and selling more than 100 turnkey properties per year. Nathan is a seasoned investor with a large personal portfolio and a growing business portfolio.

In this episode, Nathan talked about how turnkey works, all about their deals, and many more.

SHOW HIGHLIGHTS:

  • Who Nathan Brook is
  • How they started a REIA group
  • The purpose of their REIA group
  • What Bridge Turnkey Investments' business model is
  • What Turnkey is all about
  • Doing 3 checks to ensure the quality of the property
  • Their typical deals
  • 3 types of market
  • On serving clients
  • Leveraging their property management to a third party company
  • Being good at various things
  • Knowing the company's culture
  • How they structure their deals
  • Understanding the rates
  • Why Fannie Mae is important
  • Who their typical investors are
  • Using your retirement account
  • What their team looks like
  • Advice to those who are just starting out
  • Focusing on the right thing

Quotes:

  • "Know your strengths. Know your weaknesses. Know what you need to be doing and what your clients need."
  • "The longer the amortisation, the lower the cost of your mortgage payment."
  • "Where we put our focus is where we have our result."

RESOURCES AND LINKS FROM THIS SHOW:

SHOW TRANSCRIPT:

Larry: Welcome to the Brain Pick-A-Pro show live from Lake Wylie, South Carolina, I’m Larry Goins. Thanks again for watching guys. I really, really appreciate the feedback. Please be sure and share. Please be sure and give us some feedback. We really appreciate that. It’s just awesome. We love that. I’ll try to bring you the best of the rest, right? The best of the best and the best of the rest. And today is no exception. I’ve got a great guy on today. I’ve known him for a long time from a Mastermind that I am in. This guy is a mover and a shaker. He is out of Kansas City and he does turnkey. He is in the martial arts. He’s got a huge property where he is out, he might be out shooting guns or driving a tractor one day and then out flipping houses the next day. So, please give a warm welcome to my good friend, Nathan Brooks. What’s going on buddy?

Nathan: What’s up Larry? Thanks so much for having me on, man.

Larry: Man, I appreciate you being here. I really, really do. And you got your own podcast, you’re doing turnkey, you’re doing some coaching and stuff too. So, why don’t you start out and tell our viewers and listeners a little bit about yourself. Who is Nathan Brooks?

Nathan: That’s a great intro by the way. I appreciate you and I might have to steal your timing there, it’s good. And seriously, thank you again for having me on the podcast. So, it’s fun. I love chatting with people who are amazing like yourself and with vast experience and everything. So, I’m Nathan Brooks out of Kansas City. I am a real estate investor like you said. I’ve been doing it 10 plus years. I have been down through the crash and back. So, it’s interesting now that that conversation coming up more and more but my primary business is turnkey business, so we will do about 150 houses out of Kansas City in 2019. So, we also have a small real estate team and we also just started a Meetup which is pretty cool. So, we overtook kinda the largest Kansas City Meetup or REIA or whatever you wanna call it in like 3 months. So, we went from literally non-existent on December 4 to we’ve had literally hundreds of people show up already and we already have almost 150 people registered for our March event and literally almost 3,000 people in our Facebook group in just 3 months. So, it’s been pretty cool.

Larry: That’s huge. That’s huge man. Some people run a REIA group (Real Estate Investors Association) or club or whatever for years and they only get 20, 30, 40, 50 people and you must be a marketing guru.

Nathan: You know, I’ll tell what, we’ve spent zero dollars in marketing, we have literally just worked on like what is the message, how do we want to help. So, I started with 4 principles, connect and learn to help others and take action and, you know, just talking about like literally we are not going to just meet and then blab about how good I am or blab about how good Bridge is or you know we are here for you as a community and a city and if you want to actually do those things and by the way come and help somebody else then you are welcome here. And not only are you welcome here, you’re gonna be successful here and so we outgrew our space. Our first space that we thought we have 50 show up, 90 showed up. Our second space, we figured maybe 100, maybe we will get a little bump and 160 plus showed up. And then the third one, we ended up just running a theater. So, we literally went-- yeah. So it’s been a really cool journey so far.

Larry: That’s really cool man. That is really good. That’s really good. Now, what is your purpose of doing the REIA group, you are bringing other people into the fold to be able to teach them and have them help others as well?

Nathan: Exactly, yes. And we intentionally called it a Meetup so it’s a Bridge Real Estate Investing Meetup and literally we just said, yeah, this is a place to come with the intention of having incredible education and incredible opportunity for you as an investor and also be a place if you live in Kansas City that the biggest and most awesome and vast investors in the city are there and that’s one of my biggest complaintsof any REIA group is like, you know, we don’t want just, you know, first some investors are great and it’s a wonderful thing, right? But we want to also surround ourselves with people who are crushing it and so the first phone calls I made were not to like sell somebody on the membership, that was to invite my buddies in town who are getting after it and how could they be a part and we could help transform their businesses at the same time.

Larry: Sweet. That’s really good. That’s really good, man. That’s good. So, tell us a little bit about Bridge. What’s the business model? What are you doing?

Nathan: Yup. So, we are a turnkey provider. Our focus is, you know, turnkey had gotten a bad rap for a long time because for a good reason when companies would say they have a fully renovated house and they would sell a property and then it wouldn’t really be turnkey, right? So, what does that mean? It means everything, you know, that needs to be fixed or replaced and we take it out 10 years. I think most of the companies I know, you know, call it 5 years but, you know, roof, windows, HVAC, plumbing, electrical, everything. So, if it doesn’t have a 10-year useful life or more, we are fixing it and replacing it. So, when I first got into it, I heard all of these horror stories about people who had bought these homes and, you know, they got the song and the dance and they had a great sales person, but they didn’t get the backend fulfillment of having a property that was actually worthwhile, the investment that they worked so hard to buy and so, you know, I told our clients from the beginning, I was like, hey, I like to sleep at night, we are not perfect but if we screw something up, we’re gonna fix it. But our trajectory and what we are trying to do is to make this the best, you know, make this the gold standard of what a turnkey property is.

Larry: That’s really cool. Will you take just a minute for some of the people who may or may not be familiar with the term turnkey, explain a little bit about that.

Nathan: Okay, sure. Yeah. So, you know, turnkey is not for everybody but it’s for those somebody who wants to invest in real estate, you know, we have attorneys, we have doctors, we have dentist, we have firefighters and police officers and financial planners and stuff and we have some investors live in KC but we have lots and lots of our clients who live not only outside of the Kansas City area but also even internationally. So, we work with lots of soldiers. It’s super cool too by the way to get to work with military folks. We get to help them invest that money instead of buying some fancy truck or something. When they get back, they’ll have a cashflowing asset. So, all that to say, so what do we do, we buy a house, off market, wholesaler, direct seller, whatever, MLS and so we buy that house and we look at it and say can we make this work and do that 10-year useful life or more, can we do that? And then second, we say great. Is this gonna be a home that a tenant wants to live in? Because of course ultimately a rental property is nothing without a tenant, right? Because you are not making any money.

Larry: It’s a vacant house.

Nathan: Yeah. It’s a vacant house and that person is gonna want to live in it. So, that’s what the buy side is then we renovate it and we take that same approach and we say, if it doesn’t have a 10-year useful life, it’s getting to be fixed, roof, windows, HVAC, plumbing, electrical, whatever. So, by that time that thing comes out of factory, it is a beautiful totally renovated property. So, the client says, okay, well how do I know that? So, we actually do 3 checks. So, first my team does the punch list, you know, so we go through and we go through to find a home and go through the entire thing and fix that. Then we send in the third party inspector and we get that third party inspection back and we literally take every item that is out of that, put it in an excel spreadsheet, identify the problem, identify the solution and take a picture of the repair. And so that our scope of work, third party inspection and then those professional pictures, so we take professional pictures on every property. So, that way we can literally tell the client, hey, we not only do we say we do all these stuff, not only do we give you the scope of work, here’s what we did, here’s any issues that came up and how they’re repaired and here is professional picture so you can see what your property looks like. Send it off to property management, they put a tenant in it and then by the time our client is closing on it, they have a cashflowing asset, totally renovated property, already occupied and cashflow is day one.

Larry: That’s sweet man. I love it. I love it. So, you’re basically, you’re taking the headache out of it, right? And you are doing it simple for the investor who maybe is not used to doing real estate, doesn’t want to do real estate in the sense of go out and do direct mail, find deals, and deal with contractors, and tenants, trash, termites and toilets, so you’re taking all of that out of it and giving them a more passive investment than being a real estate investor as you and I are.

Nathan: Exactly, yeah. You know, the nice thing is in some people, you know, we find that some turnkey investors, they want to just do turnkey, sometimes they ultimately want to do a few of themselves, but they want to see what that whole buying process and reviewing and learning process looks like so maybe they buy 2, 3, 4, 5 turnkeys and then they go, you know, BRRRR strategy, (Buy, Renovate, Rent, Refinance and Repeat), but you know, for our clients, they want that stability, right? And they don’t want to know how to fix the toilet. They don’t wanna know how to place that tenant. They want to be able to take that $20,000 or $30,000 or $40,000, flip their 20%, 25% down and have an asset that they get to buy and own and not have, you know, I hate to use the word passive because there is something you need to do once in a while, right?

Larry: Right. Right.

Nathan: But it’s a great asset and by the way if you have not talked to your account and understanding that the tax laws right now, the benefits in real estate, I mean there’s never been a better time to invest and there’s no time like today either when you watch just, you know, that tenants paying that property off. So, the clock starts ticking as soon as that happens whether it’s depreciation, whether it’s paying it down and so it’s just fun to be able to see people starts to have that light bulb moment, you know, like oh, Larry do you remember when you have that moment and you’re like, man, this is awesome. Real estate is awesome. So, we get to do that for people every day which is so cool.

Larry: That’s really cool, man. I love it. I love it. So, can you give us a rundown of a typical type of deal that one of your turnkey clients would get and you know, are they paying cash or they finance in that? What kind of returns are they getting and you know, tax benefits that sort of things like you mentioned right now is the absolute best time there’s ever been because with the new tax laws, there’s some extra depreciation that you can get and some other things as well. So, right now is a great time to be getting into like what you said turnkey.

Nathan: Absolutely, yes. So, typical deal, one of the things that-- so we operated a Kansas City Market, we have looked at other markets and you know that has been a topic of conversation. We don’t really have anything outside of KC right now. So, I’ll just be speaking about Kansas City specifically so one of the cool things about the market is the secondary market so, you know, we think about those first tier markets like in Atlanta or LA or something like that, New York, but cashflow is basically non-existent. When I think about 3 types of markets. You have to have that kind of straight-straight cashflow market, you have that kind of appreciation market and then you have kind of that hybrid market between the three and so I really look at Kansas City as that hybrid and so when you look at the market, we’ve had to your question, I’m hopefully not veering toofar off but I promise I’m coming back so, you know, average house say it’s $100,000, we’re typically like $100,000 to $130,000. It’s about 1% rent rate so that means $100,000 house, $1,000 rent and here’s the thing that most people miss when they look at this is what is the cost of the taxes and so Kansas City is also about 1% to 1.25% and 1.5% in some places but it is still very low comparatively to the average of a lot of those cashflow markets. So, when you get into those deals right now, let’s say around the 7 cap and you know, say 9% to 10% cash-on-cash and those are of course with the estimated cost of actually having CapEx, actually having a maintenance, actually having, you know, all the normal stuff that really does come up and that we actually identify that and put it on the paper and instead let’s make this actual assumptions. So, to the appreciation/cashflow market, we still do see great strong cashflows out of KC, but we also have seen not big but steady appreciation over the last decade and into the home values too which is pretty cool.

Larry: Yeah, the appreciation is just the bonus, right?

Nathan: Just a bonus, yup.

Larry: It’s just a bonus and I mean you’re gonna get your cashflow and 1% per month is very respectable and I’m assuming you guys handle the management, correct?

Nathan: So, you know, interestingly enough, we started our property management company and Larry I hate to tell you this and, you know, for whoever is listening, you can laugh, we are awful, okay. So, we were awful at property management, so we ended up selling that and went through some transitions that were not very smooth I will say. But we now have a third party property manager that we work with. We work with for 2-1/2 years, they are awesome.

Larry: That’s great.

Nathan: Yeah. So, we have a very clear systems in place now with that transition and so rather than like beating around the bush and trying to make it a different story than it is, I was like no, this is true, there’s a lot of turnkey companies out there that own their own management, we do not and we just found that we could-- you know, my job as the owner and CEO of my business is to make sure we serve our client and so serving our client in this case was saying we are not doing that, we are gonna make sure you’ll get a great property manager who loves property management and can do a great job.

Larry: You know what, I’m really glad you brought that up because so many people try to be everything to everybody and I think it’s very important to know your strengths, know your weaknesses, and know what you need to be doing and what your client needs and if you can’t provide that to the best of your ability for them then find somebody else that can. The other thing that that does too that not a lot of people even think about is because you have a third party management company and you give them a lot of business that gives you some leverage with them, right?

Nathan: 100%. And you know, I like that you just said that there’s a benefit or strength because, you know, I like to tell our clients too it’s like, hey, listen now you also have another set of eyes on this property, they have your best interest as we do as well and now you have 2 groups of people who are here have your back and give you a lot of scale and opportunity to keep buying and investing in Kansas City too. So, you know, early on it was a tough conversation because it’s a real ego, you know, punch to the gut. I mean like, hey, we are not that good at this and we scaled from zero to almost 150 doors in like 16 months. So, the doors weren’t the problem. It was being a great management company and I tell you what, I don’t like doing something or going after something if, you know, learning that, love it and that passion for it and we just didn’t have the passion to solve the problems that really needed to be solved and so this is a blessing and it’s a blessing for our clients and as long as we are truthful of that and transparent about it and then of course that third party property manager has to crush it for them too but you know it’s been a great win.

Larry: You know, there’s some things I’ve always admired about the turnkey providers like yourself is you’ve got to be good in a lot of different things, right? And you have to figure out what you are good at and what somebody else might be better at now that you were bad at it but somebody else might be better at it and you’ve leverage that, right? You’ve got to be able to acquire deals, you’ve got to be able to rehab deals, project management, keep track of everything and find buyers for the property, find financing for your buyers for the property and then manage the ongoing management or manage the manager, right?

Nathan: Yes.

Larry: A lot of pieces to the puzzle for turnkey, so I have really always admired turnkey providers because personally for me, I’m like that’s too much work, right?

Nathan: You know, it is a lot of work and I think I appreciate you stating it in that way because it is a really great way to state it and there are so many things we have to be good at and with the business requires of us, right? We think about what is the business require of us to serve our client and to serve our staff, right? And then ultimately those things serve us as a company and our success and so you know, I think that everything that I ever look at when I do a great job or something I’m obsessed about it, I’m fired up about it, I can’t stop thinking about it and so I know that if it’s 4 years in in Bridge Turnkey and we are still pump about doing turnkey houses, we got the right thing, you know.

Larry: Right.

Nathan: For an investor, you want to know too like you’re culturally in alignment with the people that you are investing with and you know I know we are not the right partner for everybody and that’s okay, right? So, it’s more like if you are an investor and you are looking for a company, you wanna know what is that culture? How do they approach their renovation? How do they manage? Where are those properties located?

Larry; Right.

Nathan: And then get to have that relationship and then that’s what makes it fun because now we get to do it together and we get to make it something that’s a real value add and a win-win for everybody.

Larry: That’s great. That’s great. So, what does a typical buyer? I’m assuming the majority of them will leverage the property so they could get a better cash-on-cash return and what’s the whole model there if you don’t mind sharing that. I mean I know there’s some really good lenders out there that, you know,, we got CG as well but yeah share a little bit about that, how they would structure deal because you mentioned, you know, your typical deal is $100,000 to $130,000. It’s not like they got to have $130,000 to play, right?

Nathan: Exactly, yup. And I love this question. Leverage is a wonderful thing as long as we are thoughtful with it. We understand what it means. So, let’s just use $100,000 house so that it’s a simple math for everybody. So, you know, we are looking at a $100,000 house and so, you know, if you want to put 20% or 25% down that would be $20,000 or $25,000 and so even if you are sitting and thinking about like man I barely got 5 grand in my savings account or I have a hard time to be able to make this happen then you have to be able to say okay every month I’m gonna put away $500 or I’m gonna put away $300 and then you’re able to go through that and be able to say I’m going to set this money aside and I’m going to make sure no matter what that I do anything with it but put it and give it to myself. I’m paying myself first. So, you know, you’re talking about $500 that’s $6,000, well guess what, 6 x 4 is 24. It might take you 4 years to save up for your first property. So, what? Right? Either way or maybe you make 100 grand a year and you can put 20% of your income away and guess what, problem solved year 1. So, you put your 20% down, you go through a regular lender, it’s just like any other process of like buying your own personal house except it’s now considered an investment property not your primary mortgage. So, interest rates are a little bit higher but you can still do a 30-year fixed mortgage and we talked about this a lot where you have like 10 Fannie Mae mortgages and if you have a spouse, you can also just put that property in your name with your W-2 income or however you’re doing it and then you can actually do 20 of those. If your spouse has 10, you have 10 and voila. So, let’s back up for a second too. So, once you identify that property, you know, it doesn’t take that long. So, we are talking, you know, 30 to 45 days, put your money down, got inspection, got appraisal and then you are ready to close and rock and roll on that thing, right? So, that’s the high level like wham-bam version. And so let’s also mentioned too that there’s a lot of investors out there who owned more than 20 or 10 properties. So, that is not a limiting factor, it’s just a limiting factor on that mortgage product. So, if you wanna own more than 10 houses, you could either wipe clean those 10, put them into a portfolio loan which is a bank that, you know, lends their own money and they put it out there and there’s also commercial products now because there’s a lot of institutional money coming into the single family space right now, you can easily invest into, you know, 20, 30, 50, 100-unit packages of properties or grow your portfolio and do that. So, don’t think for a second that you can’t scale beyond 5 or 10 properties.

Larry: That’s really good, man. That’s good information. There are a lot of people that think wow, I’ll never be able to do this but it all starts with that very first deal. And it’s amazing. Yeah, it’s amazing what you can do to leverage and move forward and do more and more and more and more.

Nathan: Meet us.

Larry: That’s exactly right. That’s exactly right. You mentioned rates are a little bit higher than owner occupied and you mentioned Fannie Mae, expand a little bit on the rates and on why Fannie Mae is the first source you go to and then you either do 10 or 20 if you’re married and then you go to the Fannie Maelook-a-like. Explain a little bit about that if you don’t mind.

Nathan: Sure, yeah. So, the investment properties are typically, you know, I don’t wanna state incorrectly but, you know, it’s a little bit higher, not a lot higher, but typically a little bit higher interest rate just as it is an investment property.

Larry: Yeah, like a percentage of a point, not even, yeah.

Nathan: Yeah, exactly. So, there’s a difference though. You wanna make sure that if you’re looking online that you understand kinda what those average rates are, so second the Fannie Maeones are important just because they are the cheapest cost of money so they are kind of that cheapest bank money and you also can have 10 of those kinda using that standard 30-year amortization, so it’s kind of the cheapest money and the longest amortization. So, the longer the amortization the lower the cost of your mortgage payment. Now, I will put a caveatin there that if there’s a certain thing like let’s say for instance you are like, hey, I don’t need a dollar of cashflow right now, I make 6 figures, I just literally want to have like say sub 50% loan-to-value or whatever your goal is in your portfolio then you can always put that into a 10 or 15-year note or put a 30-year note but pay it faster, put your cashflow right back in the deal. So, it’s good to know like what the long game is when you start thinking about those deals. So, once you have those 10 properties and I think after 5 or 6 properties, there’s also additional money required in reserves, so I’m not a lender, I don’t know specifically how much it is but just to be aware of that but once you have 10 properties, you know, you can go to your community bank, local bank whatever, there’s also you know, like we said national lenders who have some pretty awesome programs frankly right now and so you can go and take the whole package of properties. So, let’s say you own 5 or you own 10, you could bundle that whole thing and then put it into a portfolio loan where either each individual property has its own loan or you know, every properties in one loan. You can do it both ways so you can put those properties together so let’s say there’s 5 of them and you have $400,000 worth of total mortgages so they make 1 mortgage $400,000 and bum you have a portfolio loan and then you can go back and assuming you just took those Fannie Mae mortgage or whatever now you can go get 10 more.

Larry: That’s awesome. I love that. I love it. There’s so many things that you can do with creative financing and there’s so many good financing programs out there right now and you as a turnkey provider, you’ve got to have your finger on the pulse and know who is the best lender for this, who is the best lender for this, I’ve got a borrower that is self-employed, they make a ton of money but they don’t show any income, you know, which lender or which loan program so you don’t have to personally know but you have to know who does know, right?

Nathan: Exactly. Yup. Exactly, right. And it’s all about, you know, I keep coming back to this but it’s all about that real estate partner, right? In the turnkey provider, if they are not in the game to help you, ultimately you don’t feel that love that is not the right one for you. Because you want somebody who is gonna walk you through each one of those steps, they have the players on their team ready to go and you know it’s all about that communication, all about the problem solving, all about the transparency and all about making sure that ultimately at the end of this, you know, we want to get a little bit better, get a little bit faster, get a little bit more knowledge and so us as a company, we do a better job every single time, we are learning and you as our client, now you are a little faster too, right? So, you have a little bit more real estate knowledge, have a little bit more skill in what the process looks like. In that way, we both are learning on the same parallel journey together and we get to help each other, you know, obviously we make money selling a house hopefully and you also as an investor gets to come in, you get to have a great asset and also get to learn something in the process too.

Larry: That’s great. That’s really good. So, who is your typical investor that is going to buy a turnkey property from you? What does that typical investor look like?

Nathan: Yup. So, we got a couple kinda profiles. So, we have those kinda just got a really good first job, not buying a bunch of fancy stuff but investing like, hey, in 10 years I wanna retire so we got those guys. We got the people with maybe their second and third job now, they crack 6 figures, they probably just started a family, saving for college, getting a spouse home from work, building wealth, you know, starting to really kinda think about those longer term holy crap I have a baby coming, how I’m making sure, you know, and by the way I’ll just mention this in the side too like I own most of my net worth in real estate. So, I’ve been thinking about how do I make sure I have some diversification in my assets. It’s the same approach for other people to who have just like a 401(k) or just have standard stock portfolio and now we can also help bring that diversification to you in a really possibleway. So, I don’t wanna forget that. But the last, you know, group of people we have are those maybe soon to be retirees and they are looking for just something great to park some money into. They want to invest in having some cashflow down the road, maybe they don’t need the money for the next 15 years or 20 years. They expect to go play and enjoy retirement and go get after it. And that’s kind of that advance pay down method and now hey guess what we can add 3 or 5 or 10 or whatever $1,000 a month to our income for the future, but we don’t need it now. We’re gonna just park some money, take the depreciation, take a nice tax benefit from that and set it.

Larry: That’s awesome. I love that. You mentioned the third is a retirement, nearing retirement. Speaking of that, a lot of people aren’t aware, I mean most people if they are listening to podcast like this, they do know that you can use your retirement account, you know, whether it be a self-directed IRA, 401(k), simple, even ESA and HSA. Can you touch a little bit on that if you have many people that use their SDIRA or other type of account to buy your turnkeys?

Nathan: Yes. So, there’s a couple of ways. In the self-directed, you do have some pretty different loan requirements, so there’s a substantially larger amount down and then you also have to have some different type of loan. I’m pretty sure it’s a nonrecourse as well. You have to have the right type of lender. So, it’s a little bit more complicated. What I see more often is not the investing in the turnkey out of the self-directed but I see more private lending and so we also have a lot of private lenders who fund deals for us and so that absolutely is a great tool for people who are really at any place but you know retiree having that steady income and so we have raised honestly a lot of money, you know, over 6 million dollars of people who have their IRA money and whatever might be and hope buying and selling deals so we get to benefit investors and clients of ours on the front end of those deals who are funding them and then we also get to benefit and work with those clients in the backend who are buying the asset.

Larry: That’s really cool. So, are your private lenders, are they funding your deals for you to buy it and rehab it or are they funding for your turnkey buyers?

Nathan: They are funding it for our buying and selling activity.

Larry: Oh, okay. That’s really good, man. That’s really good. Would you mind sharing Nathan what is your team look like? I mean to me it sounds like you got 30 or 40 employees, you got 10 project managers, you got 10 different crews running around. So, it sounds like a huge team to me. Would you mind sharing what your team looks like?

Nathan: Sure, yeah, absolutely. So, we have just a couple people in the acquisition side. So, we have 2 folks on acquisitions. On the construction side, we have project manager, design and estimator, admin in the office, transaction coordinator and then we have sales side person for the turnkey side. We have a director of marketing who helps really guide the ship. We just hired her. She is amazing. And then it’s my business partner and I. So, we run a pretty tight ship and we have a large number of general contractors and then subcontractors that we work with all over the city, but we’re really looking for ways to just continue to get better, use technology, use skill, you know, we really think about having higher skilled people and really focus on not just having a person that I am a fill-in-the-blank but you have the skill set, you have the drive, you have the passion and then understanding what the actual tasks are but then being able to own it and run with it and so that’s really what I’ve been just obsessing about is how do we find people who have whatever they are doing, whatever their daily job is it’s in the like-it-love-it box of things instead of like the I’m not good at it or I can do it but I don’t like it and I know for me, when I’m sitting in that like-it-love-it box I’m the most effective and so I want my whole team doing that too.

Larry: That’s great. That is really good. I love that. I love that. It sounds like you keep it lean and mean.

Nathan: Lean and mean, we try. You know, it’s a daunting act because, you know, having great people is an incredible resource and also from a business perspective, it can be a very daunting and terrifying thing having that a big overhead and I don’t think people really understand it until you get to right those checks, what it looks like to have a big staff and you and I, we are talking about this before we started, right? You know, having a big overhead is a massive responsibility and every time we bring somebody on our staff and we think about, you know, hey these people are putting their food on the table from what we do and they are giving their life and their time to us and so we respect that. We really take our time through that process of going through interviews and we interview people 4, 5 or 6 times and just make sure that we really to the best of our ability found somebody who is a great match, understands what their position is, understands and fits with the core values and can get after it with us.

Larry: That’s great. That’s great. Before we go, I got to ask you I mean you are obviously very, very disciplined. You are really into the mixed martial arts and you’ve got to have a vision, you’ve got to have goals and you’ve got to be really, really good leader to be able to do what you are doing obviously, so what would you say to somebody out there that is maybe starting a business or need to scale their business, you know, what do they need to do to know if they’re heading down the right path or have their ladder leaning against the right wall so to speak and they want to either get their business started or grow it and scale it. What do you think that secret is?

Nathan: Man, that’s such a great question and I will give you a couple things. First, I will say this is the question. This is the question. And it’s so easy if you are the visionary, which I sit in that visionary seat in my business, it’s so easy, disgustingly easy to get off track. It is so much harder to be just lights out right on the path, still on target. Yeah, put your freaking head down and go get it. And so one of the things in the last couple of days honestly we’ve been talking about in our business is if it’s not about buying houses, renovating houses or selling houses, I don’t want to hear about it.

Larry: Wow. Man, I got to write that down. I’ve already got a page full of notes anyway. But I’ve got to write that down.

Nathan: It just clears out all of the nonsense and it clears out all of the things that we talk about and the chatter that we hear in our own voice and otherwise and so you know, if you are trying to figure out what you wanna do then I love this question. The question is what does it look like when it’s built? What does it look like when it’s running? We talked about the factory. The factory is tooled, we have the supervisor in place, we have the people who are running it in place, the machines are perfectly in tune and it’s running at full capacity. What does it look like? So once you start to have that vision and let me just tell you whatever you write down, in 2 years it’s gonna be different, right?

Larry: That’s the way we are as visionaries, right?

Nathan: Yeah. But that’s okay, right? So, that’s okay but you have to have that Big Hairy Audacious Goal that is pushing you in that direction and you are going at it and so once you have the clear vision of at least what the goal is, you can still be on target. And I tell my team that all the time, where you put your focus is where we have our result. It’s that simple. So, whatever I’m thinking about is what I’m working on. And whatever I’m working on is where I will have a result. So, guess what that means. If you are focus on the right thing, that means you are working on your goal. If you are focused on the wrong thing, think about just like the distance something travels. If you go from here to here but this is not the destination now you’ve gone twice as far because you have to get back to it and so, you know, I am obsessed with making sure that we find the right thing, the right still on target if you will that whenever we put that force, we put that energy into something that we are actually going after what creates the result.

Larry: Man, that’s really good stuff. That is really good. I like that.

Nathan: Thanks. I’m obsess about it.

Larry: That’s a great way to kinda start wrapping it up. If somebody wanted to reach out to you Nathan to get more information on maybe, you know, buying one of your turnkey properties, being one of your private money lenders or connecting with you, how would they do that?

Nathan: Absolutely, thanks for asking the question too. So, BridgeTurnkey.com is our website for the properties so you can see what’s available there. There also is of course the sweet off market stuff that we don’t put out yet. So, the clients we are talking to and we love kinda understanding your philosophy as an investor, what your goals are, what you like to buy and make sure we help fit that as much as possible and then second if you wanna connect with me personally or talk about the investment side or you know funding deals or whatever, Facebook is the most social place I’m on so you can always Google Nathan Brooks Facebook or Bridge Turnkey and I’m on there. So, I love to connect with you on Facebook as well.

Larry: That’s awesome man. Hey, thanks so much for taking the time. I know you are a very busy guy I mean come on 150 fully rehabbed turnkey deals a year, man, I don’t see how you have time to do anything.

Nathan: Well, you know, it starts with vision. I starts with putting yourself in the right seat, have people in their right seats. What does Jim Collins say right, we are on the bus, people in the right seats is going to the right direction and just having vision to get there. So, that’s we are after.

Larry: That’s true. And Nathan is referring to a book called Good to Great, right?

Nathan: Yup, exactly.

Larry: Exactly. So, man I really, really appreciate you being on. Thank you so much. It’s been awesome and guys please reach out to him if you have any interest in turnkey, if you are looking for some passive as it can get, right? Real estate investing using leverage, man he is the guy right there. So, Nathan thank you so much buddy I really appreciate it.

Nathan: Thank you Larry. I appreciate it.

Larry: And I’ll be seeing you in a couple of weeks at CG.

Nathan: Yes, sir. I look forward to it.

Larry: It sounds good man. Thanks a lot.

Nathan: Thank you.