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Show Summary
In this conversation, Quentin and Jon Reid discuss the importance of building a legacy, the value of networking in real estate, and the challenges faced in the industry. Jon shares insights on the significance of having a solid network and the right education, emphasizing the need for real-life advice from experienced individuals. They also touch on the mindset required to navigate challenges and the importance of collaboration for growth.
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Investor Fuel Show Transcript:
Jon Reid (00:00)
Yeah, I think social media is now to the point where everybody seems to be a guru and they’re not actually gurus. So, you know, one of things, you say, what’s on my heart is that people get the right education from people who are actually doing it and have made mistakes. Everything is not as rosy as you see, but you know, like one of my real estate agents says there’s an answer for everything. There’s a solution for everything.It’s about coming up with that solution, coming up with an answer. But then having enough wherewithal to talk to individuals who really are in that mix, in that throw, right? And then, you one of things I say is a negative mind will never give you a positive life.
Quentin (01:59)
Hello everyone. Welcome to the Real Estate Pros podcast. I am your host Q Edmonds. Excited to be here, excited about the guests that I have. This gentleman, man, I mean, one thing he loves to do is definitely educate. And so for me, that lets me know, you know, he want to excel and elevate people as much as possible because he just want to keep all the information for himself. He wants to educate. He want people to know thatall the boats we were going to rise together, right? Like he’s going to give the information. He’s going to get education to say, you know, Hey, I’m here to help you. And I love that mindset, but you know, he’s a developer, you know, he, he, he makes things listen when he leaves, it’s going to be better off than when he came. And so I’m super excited to introduce you guys to Mr. Jon Reid. Mr. Jon, you doing today,
Jon Reid (02:48)
I’m doing well. doing well, man. Thanks. I appreciate that.Quentin (02:51)
Absolutely, man. Absolutely. It’s been a joy getting to know you, getting to talk to you. And I’m excited about this episode. I always like to say, you know, I love when people take us into their world so we can look through things through their perspective and their lens. So Mr. Jon, that’s what I want you to do, man. Take us into your world. Let us know what you’re mainly focused on these days. If you want to tell us how you got started, we would love to know that too, but then also what markets you’re operating in. So man, immerse us into your world, Mr. Jon.Jon Reid (03:20)
So, you know, I’ll give you the Cliff Notes version, because I’m pretty seasoned right now. I’m in the Atlanta, Georgia market. And then when I moved here, I was working as a CFO for Fortune 100 firm. And, you know, doing well. And I got introduced to real estate by a a professional basketball player. He’d never had a job after he retired. He started doing real estate. So he was like, Jon, you need to invest in real estate. You know, I said, I’ll show you how.And I didn’t know that he had just got started too, but he sounded so good, right? He was that, like that Pied Piper kind of individual. So when I was learning it, still doing it, just doing it on the side. And I was like, man, after a while, I’m starting to make more money than in my six figure corporate job. So I started fixing and flipping. And then at the same time, we started doing free seminars and showing people how to invest in real estate. So we used to do these free seminars because…
These individuals that we’re showing how to do it, they’re going to come to us for their first deals, right? So we had closing attorneys, real estate agents, mortgage brokers, contractors. We had everybody as part of our conferences that we used to do. And I was still starting to do fixing and flip. When I left the corporate world specifically, I kept doing it. New construction and fixing flips. A couple of duplexes. And then from that,
I was still educating individuals about how to invest in real estate, but I became more aware I’m doing it myself and such that I have my son involved now and we’re making communities better communities, if that makes sense.
Quentin (05:33)
Yeah, no, it makes total sense. And I hope it’s okay to use this because you describe yourself as an urban developer and I love it, man. Going into these places, making it better, making things look more revitalized. And I absolutely love it. And thank you for taking us on your journey, coming from the corporate world to being in real estate now. And so I know you’re focused, you’re educating. I guess my question would be like, what keeps that machine running smoothly? What are some of your systems?that keep things turning the way they supposed to turn.
Jon Reid (06:03)
So we have this thing, like I said before earlier that you have to do three things in real estate. You have to find a great deal, you have to evaluate a good deal, and then you have to fund a good deal. So we’ve built a rehab evaluator where we can go in, throw some numbers in initially to see whether it really makes sense for us to even get into the deal. And then we consult with…professionals, right? Real estate agents, real estate brokers, mortgage brokers, closing attorneys, general contractors. And we take all that information together, if you will, and then put it into a model to say, yep, let’s go ahead and go after this deal. But the key is having that funding in place to do that. But you have to have a great network involved around you so you can do that. And then we’ve made so many mistakes and successes. The only way that we are successful now is by learning from our past mistakes and what not to do going forward, right?
Quentin (06:51)
Absolutely. And I love you talk that about making mistakes. ⁓ because I like to tell people, know, we can always talk about the success, but a lot of times it’s the journey is the process to get into the success. And I always, you know, I get to a point in the podcast where I say, you know, things and you know, this get real. Like there are times when sales deals go sideways. There’s times when you have to pivot fast. so Mr. Jon, I would love man, you’ve been around for a while.Jon Reid (07:01)
Yeah, right.Yeah.
Yeah
Quentin (07:18)
if there’s a story like that that you can share. Again, so the viewers, because there are several journeys, so different points of that journey. Some are successful, but some are kind of like, right, facing some things right now, like, man, this is tough. I’ve never seen this before. So I would love, man, if you can tell one of those stories for us. Yeah.Jon Reid (07:27)
Yeah.I give you a perfect one. And a lot of times
on social media and these TV shows, you don’t see, you see some of the journey, but you don’t see all the journey, what goes on behind the scenes. So I try to let people know, this is really factual. This is what really happens. Real life example, I have my son and I, I my son now as my project manager. So he’s learning real estate from me. We got a great deal.
It was almost like a probate deal. The guy sold it to us. We went in, we estimated, you know, six figures to get the rehab done. We get it finished, we get it staged, and then we find the buyer. Now that’s whole process with about a six to eight month process. But what I do is I try to mitigate a lot of things before a buyer gets in. Like I hire my own home inspector.
So I hired my own home inspector so that he can come in and like, you know, tell me what he finds that way I can correct it before a potential buyer gets there. Right. Cause the buyer is still going to bring their own inspector. So we did that. We got it on the contract. had a buyer that came in and they bought their own home inspector and they came up with 18 pages of items that had to be corrected from a home inspection standpoint.
Now, I thought that I had mitigated that because I hired my own home inspector beforehand, right? Now, this was, which means that it’s additional costs for me to actually get this done. And in fact, had an argument with my real estate agent at the time, because she was like, you didn’t know that this was going to be done? No, we finished the house. We got a certificate of occupancy, hired my own home inspection.
He didn’t catch all the stuff that happened. So, end of the day, I had to come to the table with another 20 or $30,000 to fix the items on the inspection list. So that couldn’t be anticipated, right? Because I think I’m mitigating that loss initially. But no, some things happen that you just cannot anticipate, right? But going forward, I said, I’m still going to, you know, once we finish and we get a CO, I’m still going to have my own home inspector that I hired to come in and find.
I just might not use that same home inspector that last time I used. Lessons learned. You know? Nah, nah, nah, nah, not at all. Not at all. That process to find out, you know?
Quentin (09:30)
Yeah.He didn’t have a good dress performance at all. Yeah, absolutely.
There you go. It’s a process to find out. And I think you said it so well. Some things you can mitigate, some things you can’t. Some things only experience teach you, right? And so, you know, there’s really, I mean, depending on your perspective, you can say, Eva, it’s a lesson and not necessarily a loss. It’s a lesson, right? You can learn from this and move forward. And that’s why I’m glad you told that story, because you were showing.
the difference between just dabbling and staying in it for the long term, right? You’re going to hit things in the road, but how do we pivot and get past that? And I mean, and I know we just talking, I know it’s a process, but you’re telling like this is part of the process. And so I appreciate you for sharing. really, really do. Let me ask you this, Mr. Jon, what are you most focused on solving or scaling next? Like what’s the next real goal for you?
Jon Reid (10:49)
Yep.Yeah. ⁓
Right. Yeah.
So for me, think it’s two things. One is new construction, doing more new construction projects. I’ve only been doing like one every couple of years and a lot of fix and flips kind of deals. But new construction, because then we can control more of the construction costs, right? Not opening up walls and finding things behind them that we didn’t anticipate. Everything we have will be new. And then I think for long-term wealth, is rentals or MDUs.
which is multi-dueling units, right? Town homes. Some things that can provide you with longer term income versus that short term hit. And so those are the two major things that I think I’m pivoting more towards versus just, you know, like a one-off.
Quentin (11:48)
Yeah, yeah, yeah, yeah. Nope, absolutely. I hear you. You looking for that, like you said, that long-term wealth, that residual income, you know, that money coming in, like clockwork. Like, I definitely understand. that’s huge. That’s huge. That’s big. I love it. I see the vision. And listening to you just with your systems in place, I have no doubt that you’re going to hit every single goal. I’m excited that you got your son involved. I mean, this is like legacy, right?Jon Reid (11:59)
Right, yep, exactly.Well, yeah.
Quentin (12:16)
Like this,Jon Reid (12:16)
Right.Quentin (12:16)
legacy is going to continue. And so, you you mentioned your son, you know, he was in a high C suite. So I know, you know, a little bit about relationships, right? And so I would love to talk about relationships. And so when it comes to building relationships and growing your network, what’s made the biggest difference for you, Mr. Jon?Jon Reid (12:25)
Yeah.So I established some good relationships in terms of things that I don’t know. Like I’m not a real estate agent, not a real estate broker.
So I have to build a team, because that’s what they do, right? That’s their expertise that are able to work with me as an investor, you know, and then give me advice as to price points in terms of selling, right? And then also contractors are sometimes a headache, but then you have to find a great GC that you can work with, provide them with ongoing, you know, work, and then they can see exactly what your vision is. And now you’ve built a great team. Another one.
Quentin (12:45)
Yeah. Yeah.Jon Reid (13:07)
⁓ finance and capital, mortgage brokers, right? They can tell you what sort of programs are out there for you to get your next deal or maybe even help your potential buyer, right? So a network with a group of individuals who I’ve known have gotten things done, right? So you wanna work with individuals who have doubted their eyes and crossed the T’s already, but they have had some success in it, know, versus networking where you really don’t know the individuals, right?early on, do a lot of networking in different groups, right? Different agencies, different investor and real estate business groups. I don’t do as much as that now because I think I’ve built a pretty solid team. in case I do need to find out something new, because there’s always something new, there are individuals who I can now call or bounce some ideas out and say, hey, what are you using for this particular tile?
Are you getting your windows overseas or not? So there are other individuals who like me are developers, but they may be doing a lot more differently than I am. And I’ve built a relationship with them that I can now go to them as well.
Quentin (13:59)
Yeah.Yeah. Nope. I love it, Relationships are everything. And I love how you said you’ve built your network. You got people that you can lean on. You can call, bounce ideas about. And I mean, that’s one of the reasons why we built this ecosystem with the podcast. It’s because you want people to know you got a place that you can come to. You don’t have to do it by yourself. You have people who has been there that’s probably in the same position as you. Some who has been in the same position.
And so that’s one thing we really want to preach is that’s the value of relationships and building a community. And so I love that you have that network of people that you can go to. And so I’d be honest with you, Mr. Jon, when I talk to someone like you that has such a rich perspective and experience, I always like to throw this question out. You know, we have people who are, like I said before, they’re in different parts of their journey. And I just want to know if there’s any inspiration.
Jon Reid (15:17)
Yeah.Quentin (15:41)
any education, like if there’s anything on your heart maybe that you can give to our listeners that you feel like would encourage them. I would love to hear that if you have.Jon Reid (15:49)
Yeah, I think social media is now to the point where everybody seems to be a guru and they’re not actually gurus. So, you know, one of things, you say, what’s on my heart is that people get the right education from people who are actually doing it and have made mistakes. Everything is not as rosy as you see, but you know, like one of my real estate agents says there’s an answer for everything. There’s a solution for everything.It’s about coming up with that solution, coming up with an answer. But then having enough wherewithal to talk to individuals who really are in that mix, in that throw, right? And then, you one of things I say is a negative mind will never give you a positive life.
So when it comes to real estate, we have to sometimes get those negative thoughts out of the way.
Quentin (16:29)
OOFJon Reid (16:34)
So then we can positively move forward with the deal, even if it’s a mole here or some headaches that come into it, right? So, you know, I’m telling my son this because he really wants to do real estate, you know, full-time, but he sees the challenges. And so I think if we realize the challenges, but talk to individuals who really have gotten it done, they can give you real life advice and not trying to just get in your pocket. That makes sense. So that stays on me.Quentin (16:34)
Yeah.Yeah.
Yes, man. no.
makes total sense. So I wrote it down. I just want to make sure I’m quoting you right. A negative mind will never give you a positive life. Did I hear that right? Man. Yeah, man. That’s powerful. Your son is blessed to have a father like you that can help with his mindset. You know, I have a father that through the years, he has helped me shift my mindset. And so hats off to you, man, reporting to your son.
Jon Reid (17:10)
correct. ⁓Yeah, I’ll give you a quick
story too. He gets on me now. you know, I’m kind of over the top sometimes, right? Let’s get it done. He’s like, hold up there, hold, wait a minute, man. Calm down. So it’s a give and take, right? I’m learning, I learned from him too, you know?
Quentin (17:28)
Yeah, yes sir. Yeah.Yeah, yeah. Yeah.
Yeah. Uh huh.
There you go. Listen, you’d have created a monster now. Like you’d have put that mindset in him now. So he’s like, wait a Pop. Hold up. Hold up. When you gonna get it done, slow down. Nah, I love it. Yeah, I love it, man. Mr. Jon, thank you so much. I’m so excited that you got a chance to share. So excited about the value that I know people are gonna get from this conversation. listen, before we wrap.
Jon Reid (17:50)
Yeah.Quentin (18:07)
If someone wanted to reach out to you, connect with you, maybe collaborate or learn more about what you’re doing, what’s the best way for them to reach out to you?Jon Reid (18:15)
⁓ Since we mentioned social media, think my Instagram is jblreid. So that’s the Instagram. I’m more of an email kind of a person. My email is jon at tier, the number one, mgmt.net. And then my website is www.T I E R the number one mgmt.net ⁓
So the name of my company is Tier One Management. So that’s the website, email and Instagram.
Quentin (18:43)
There it is. There we go.I love it. love it. ⁓ Listen Jon, sir. Thank you so much, man. Thank you for your time. Thank you for your story. Thank you for your perspective. We definitely need people like you within this space. And so thank you for showing up through life and your son’s life, just showing up with your community, showing up with people and definitely thank you for showing up with this podcast. I greatly appreciate you, sir.
Jon Reid (19:09)
I thank you for the invite. think more of knowledge like this needs to be spread and real reflections of what’s really going on. That’s what I think. So I thank you guys for the invite, if you will.Quentin (19:18)
Yes, sir.Absolutely. Well, listen, y’all heard Mr. Jon, y’all heard Mr. Reid, y’all got the value of this conversation. You can keep going back to it. And speaking of going back to it, go ahead and hit the subscribe button. That way you can come back as soon as we give the alert and you can keep getting these valuable conversations. So Mr. Jon, I thank you so much again, sir. And to everyone else, we will see you on the next time.
