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Show Summary
In this episode of the Real Estate Pros podcast, host Q Edmonds speaks with Rich Lauletta, a seasoned real estate developer and coach. They discuss the importance of networking and building connections in the real estate industry, the challenges and opportunities in real estate development, and the significance of having effective systems in place for business success. Rich shares his journey from managing properties to coaching others in real estate investing, emphasizing the need for mentorship and the value of helping others achieve financial freedom through real estate.
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Investor Fuel Show Transcript:
Rich Lauletta (00:00)
I think being able to pivot is huge. ⁓ kind of secretly envied those real estate investors that had like a laser focused asset class. You know, I do nothing but self storage. I do nothing but, ⁓ you know, ⁓ assisted living, whatever it may be. ⁓ But ⁓ as the market changes, the environment changes. You know, like I said, I was really having trouble, you know,Right around the time I was looking for something new to sink my teeth into anyway, I was also having trouble getting the small to mid-size deals to pencil out. know, the numbers just weren’t working with the interest rate environment, ⁓ the low inventory and high demand of single-family homes and duplexes in my area anyway. ⁓ So yeah, being able to pivot is huge.
Quentin (02:23)
Hello, everyone. Welcome to a Real Estate Pros podcast. I am your host, Q Edmonds. And yes, yes, yes, I am excited to be with you today. mean, it’s always exciting to bring to you different people, to have these conversations, people to bring different perspectives. And what excites me today about this next person that I’m bringing up is that we share the same lens of being connectors. This person is a networker.He’s a connector. ⁓ Listen, I’m gonna steal from him what his lines. You ain’t gonna find this guy just sitting around just sipping lemonade all day. It ain’t gonna happen. This guy’s gonna make sure that he builds something that’s gonna connect with people, that’s gonna help people. He is a connector heart, he’s a helper heart. I like to call it a servant’s heart, but I don’t wanna put too much on him. But that’s what I hear when I hear this gentleman talk. So, please, I would love to introduce you guys to Mr. Lauletta. How are you doing today, sir?
Rich Lauletta (03:22)
Hey Quentin, I’m great. How you doing?Quentin (03:24)
I’m doing good, man. I’m doing good, man. Those things that I said, was I spot on? Man, you a connector, right?Rich Lauletta (03:30)
Yeah, man, always. I’m out there, you know, belly to belly meeting people, ⁓ just really kind of enjoying my life. But the relationships you build along the way, you never know where they’re going to take you. you know, out there with a smile and, you know, whether a good conversation comes from it or a business deal comes from it, it’s a win.Quentin (03:32)
Yeah, man.You never… yeah.
Absolutely, man. You and I have been talking a little bit and I mean, some of your connections have led directly to your success. And so what I want you to do, man, I would love for you to take us into your world. Take our listeners into your world. know, those that’s not familiar with you. want you to give us, know, tell us what your main focus is these days and what markets you’re operating in, Mr. Rich, if you don’t mind.
Rich Lauletta (04:15)
So right now my main focus is development. ⁓ I started out in small to mid-sized multifamily. ⁓ Ever since COVID, a couple of the markets I focus on, the rental market, never really got fully back to the way I’m used to it from before COVID. ⁓ So ⁓ currently working on a parcel of land that I…was able to purchase through a connection off market at a really good deal. Right now I’m talking to a little coffee company. I won’t say which company because we don’t have our lease signed yet, but I’ll give you a hint. They have 17,186 locations nationwide. That’s it. Chances are you’ve tried their coffee.
Quentin (05:00)
Oh, that’s all? Yeah, that’s all.I may be sipping it right now, Mr. Rich, please continue though.
Rich Lauletta (05:11)
That’s highly possible.⁓ But so yeah, that’s one of my projects on my plate right now. ⁓ And then we’re also pretty early on ⁓ working with our engineers and land use attorneys to get approval for a 78,000 square foot of oversized storage development.
⁓ Oversized being mostly contractor based, know, small to midsize contractors and plumbers, electricians, HVAC, landscapers would be a ⁓ big part of our tenant pool.
but then also just luxury storage, people with boats, RVs, ⁓ someone that wants a man cave, you know, there’s plenty of space. The average ⁓ size of the unit is about a thousand square foot. ⁓ you know, bigger than your typical CubeSmart 10 by 20.
Quentin (06:50)
Yeah. So man, again, it sounds like to me that unique skill you have of being a connector, being a networker, it’s opening up opportunities for you. I mean, some big opportunities, it sounds like to me.Rich Lauletta (07:03)
Yeah, man, I You know, like I said, I started out, you know, I was doing the the BRRRR R is there another R there? I don’t know. I was doing that before it was an acronymQuentin (07:13)
Yeah, it’s full arms. Yeah, yeah, right. Yeah,it’s full arms. You got it, yeah.
Rich Lauletta (07:18)
Yes, so before someone created that acronym, I’ve been doing that since I was 22 years old. Basically, shortly after college, I saw some friends flipping properties ⁓ looked cool to me. I love the idea of buying a dilapidated property and making it beautiful. But then I didn’t like the idea of ⁓ selling it and cutting a huge check on Uncle Sam. So I basically did the same thing. But every time I bought and renovated a property, I kept it. ⁓about six, seven properties in. I said, this isn’t a side hustle anymore. I got to run this like a business. ⁓ So I really got serious about putting systems in place ⁓ and then continued to build that small one-off portfolio to about 140 units until I recently pivoted to ⁓ some different ⁓ asset classes and development projects.
Quentin (08:12)
Yeah, yeah. No, I love it, man. I love it. And, you know, it’s not always easy in this climate ⁓ to build those systems out, but it sounds like you found a way to build the systems, the systems are working. And so let me ask you, what’s been the key? Is it those systems that’s been the key to keeping the machine running smoothly? If not, what would you say is the key to keeping your machine running smoothly, Rich?Rich Lauletta (08:35)
Yes, systems are key. I just listened to an amazing book called The Almanac by Nivelle Rabicon. And one of the things he says, and I’ll probably screw up this quote, but it’s insanity to attack each situation the day gives you as if it’s the first time you’re experiencing that. ⁓ Habits, systems, being able to just get stuff done ⁓ because it’s a part of your world and it’s task.that you’re going to have to do over and over again. But it’s not easy. I have a full-time executive assistant, Josh. She’s amazing. To be honest, I have trouble keeping him busy sometimes. It’ll be a Friday and he hits me up in the morning, hey, Rich, here’s your schedule. What else can I add? What do we got going on? like, ⁓ I don’t know. Pick something to work on. I’m actually going golfing. ⁓ yeah, systems.
Quentin (09:29)
Yeah.Rich Lauletta (09:34)
challenge of systems for me has been bookkeeping. I’m currently on my, I’d say fourth bookkeeping system that seems to be working well, but I tried three of them that, know, one was working extremely well with an individual CPA where they had a life change and couldn’t keep going. I tried the, you virtual and, you know, overseas that was sort of a challenge. My Slack channel.blew up and I’m like, wow, now I have to answer 200 Slack messages, might as well be doing the books myself. So sometimes you have to, it’s trial and error, but definitely get those systems to figure out what works for you and get them in.
Quentin (10:52)
Yeah, absolutely. No, I love why you say it’s trial and error because every system don’t work for everybody. You know, we all got our, our, our types, know, levels of frequency that we communicate on. But the thing is finding the system that works for you. And I love the book that you mentioned. I probably mentioned this book so many times, but a book that has really helped me put systems in place is Atomic Habits by James Clear. That’s, that’s, I didn’t read it. I probably, I don’t know how many times I didn’t read it.Every time I’m taking notes on it, every time I’m applying different things in my life to kind of put systems in place and to form my habit and actually kind of change my identity. Cause that’s how you said the best way to keep a habit is to change your identity towards it. And so I hear you man. So I love everything I’m hearing. I love getting your perspective, hearing your lens. And I would love to get your perspective on this. know, everybody has a moment when things get real.
⁓ a time when a deal goes sideways or a time when you have to pivot fast. And I was wondering if you would mind sharing a story like that with the listeners here.
Rich Lauletta (11:57)
⁓ Yeah, absolutely. mean,I think being able to pivot is huge. ⁓ kind of secretly envied those real estate investors that had like a laser focused asset class. You know, I do nothing but self storage. I do nothing but, ⁓ you know, ⁓ assisted living, whatever it may be. ⁓ But ⁓ as the market changes, the environment changes. You know, like I said, I was really having trouble, you know,
Right around the time I was looking for something new to sink my teeth into anyway, I was also having trouble getting the small to mid-size deals to pencil out. know, the numbers just weren’t working with the interest rate environment, ⁓ the low inventory and high demand of single-family homes and duplexes in my area anyway. ⁓ So yeah, being able to pivot is huge.
I ⁓ actually, I’ve been doing some real estate coaching.
And one of the first things I do with all my students is a quiz I give them called, ⁓ finding your investor avatar. ⁓ you know, that’s big because in the beginning you want to know where, where, who you are and where you should go. ⁓ and I’ve seen people that didn’t take that first step. I have a doctor friend who, when I met him, he had, ⁓ four or five duplexes and was really struggling. said, wow, my, you know, my doctor career is very demanding.
and I’m sitting here self-managing these duplexes, where’d I go wrong? ⁓ But that’s a perfect example of someone where makes a good income, has the money, does not have the time, definitely should not be self-managing their own property. So whether that’s take the path you took, but ⁓ find the best property manager out there or take a passive investment approach could have been a better fit. ⁓ And alternatively,
I’ve had people that have all the time in the world, they’re hungry to get out there and get their hands dirty and they’re investing nickel and diamond in the stock market. It’s like, well, let me show you how to leverage that investment and make much more money with your first real estate deal.
Quentin (14:15)
Yeah. Yeah. No, man, thank you. Thank you for the story. Thank you for talking about, you know, the pivots and, you know, times, times, this climate is hard. Times is rough. You know, things are taking a little bit longer. I you mentioned, you know, things kind of haven’t went back to normal, you know, since COVID. And so, you know, these times things take, you know, take a little longer. I mean, you know, building teams, you trust in people, it’s taking longer. But I love the fact how you, you pivoted with your coaching.You’re like, listen, I’m going to make sure like, you know, things are going okay here, but I’m going to make sure I can put myself in position to help other people and give them the wisdom and the knowledge to be able to push on, maybe find out stuff they didn’t know. And I love that with you, with your coaching, how you made that pivot. I, you know, don’t want to necessarily, you know, take your work. Well, I do want to take your words, but how you said, you know, like, listen, I intend for this to be a business, but this is kind of who I am in my heart. I’m a servant. I have a servant’s heart.
And so I love it, man. I absolutely love what you stand for and the lens and the perspective that you have. ⁓ Let me ask you this. What are you most focused on solving or scaling next? What’s the next real goal for you, Mr. Rich?
Rich Lauletta (15:29)
⁓ Well, so I’m going to keep doing what I’m doing with real estate investing and development, but I’m probably as far as goals, I’m really most excited about ⁓ what we’re working on within real estate investment coaching. ⁓ I started doing it on a very small scale. You there’s only one of me. I was working with about four students a year ⁓ from 2020 until today ⁓ had tremendous results.I’m blown away that
Every single one of my students ⁓ now owns at least one rental property. ⁓ My very first student was two years away from retirement as a police officer in California. ⁓ His concern was, my pension going to be enough for me to live the lifestyle I want to live? By the time he retired, he had six duplexes in his area, ⁓ tremendous passive income, and built a lot of equity in his newfound portfolio.
⁓ so, ⁓ that was really rewarding for me to have been a part of that. ⁓ and then, ⁓ the only, I currently have a student that I’ve only been working with for about a month. So that’s the one exception. she’s not yet, ⁓ acquired her first property, but she’s on track. She’s doing amazing. ⁓ she actually has a real passion for, ⁓ nature and activities. And we’re currently working through a couple of short-term rental options in the Pocono area, which is, ⁓
you mountain town, ⁓ just north of Philadelphia. ⁓ So that’s what I’m excited about and ⁓ working on something where ⁓ we really want to be able to give back and help as many people as possible create financial freedom and generational wealth through real estate investing. ⁓ I would do it for free. I’m not really building the coaching aspect as ⁓ another business, but I’ve learned right away that if someone doesn’t
put their money where their mouth is, they’re just not gonna do the work. So in the past, I’ve charged for the coaching and like I said, it’s been going well, but I’m working on creating a program where essentially it could be free. There’s gonna be a small deposit to get started. And then as long as you show up for the meetings and the calls and do the tasks that we’re going over, then your monthly payment gets waived. ⁓ So.
So like I said, that’s in the works and probably two, three months from rolling that out. hopefully people see the value and want to learn the good, the bad and the ugly of it. We’re here to teach you what we’ve learned over 25 years. And if you could take something from it and you could probably figure it out on your own, but if you can get there faster through our teachings, tips and tricks, let’s go.
Quentin (19:03)
Yeah. No, sir. That’s big, man. That’s big. And I hear what you’re saying. And you’re exactly right. People got to have skin in the game. know, people got to have skin in the game. You got to have some type of investment. Like, you can’t expect to get something out of nothing that you didn’t put in. You know, you got it. Like, say, when you go to the refrigerator, you can open it up. If you ain’t putting nothing in there, you can’t take nothing out. So I love it, man. I love how you stabilized yourself.But now you’re trying to help other people get stabilized, other people really live their dreams. And I know you know this. We’ve made so many moves. Listen, either the next move can either compound things or create total chaos. And that’s depending on how you play it. And so I like the fact that sometimes we just got a little chaos right in the eye and look at the beauty and fit systems in place to put the chaos.
and it’s rightful place, you know, to say the least, you know, and because, you know, we making moves and we never know what’s going to happen, but we’re going keep our eyes moving forward and keeping the perspective about winning and pushing and making sure that we can gain success. So I love it. ⁓ Now from one connector to the next. Yeah, right. Now listen, from one connector to the next, Mr. Rich, I got to ask this question, you know, a lot of people that either early in their journey or looking to level up.
Rich Lauletta (20:00)
Meh.That’s the truth.
Quentin (20:26)
And I think they’ll benefit hearing from you who is a connector and a network.When it comes to building relationships and growing your network, what’s
best for you to be in a connected and building these relationships?
Rich Lauletta (20:38)
⁓ So really just getting out there belly to belly with people shaking hands and letting everyone you talk to know what it is that you do. ⁓ It’s kind of crazy looking back. I’ve had wholesalers that you know promised that they’re going to show me 10 to 20 great deals a month that I’ve never bought a property from and I have a guy that’s worked for me on my renovations in Philly.that does demolition for me. And he’s actually referred me to five or six people that I bought great deals off of. ⁓ So yeah, get out there, get the conversation going, ⁓ build connections. Like I said, I I don’t go into an introduction expecting anything. You know, I kind of, you know, show up with a smile, want to have a great conversation. ⁓ How can I help you? ⁓ You know, kind of extend that olive branch. You know, I’m not looking for anything necessarily in return, but you put the right…
the right introductions and the right vibes out there. And I think what you want is going to come back to you.
Quentin (21:44)
Love it, man. Yes, sir. You can’t fake relationships in this space. You can’t fake connections. Connections are everything. so Mr. Rich, listen, all right, you know, before we wrap up, if someone wanted to reach out to you, connect with you, maybe collaborate, learn more about what you’re doing, learn more about your coaching, if you want to put that out there, what’s the best way for them to get in contact with you, Ms. Rich?Rich Lauletta (22:07)
Yeah, absolutely. You know, always happy to have a conversation. ⁓ Social media, LinkedIn is slash Rich Law Letta, L-A-U-L-E-T-T-A. ⁓ Instagram, which I don’t necessarily, you know, do a ton of business posts on, but it’s at Rich Law Letta. ⁓ And then my website, ⁓ www.richlauletta.com, where I give away a bunch of free stuff, again, you know, somestuff I might have learned the hard way over the years. have a document I call the Dynamite due diligence checklist. You you can find a great deal, but if you don’t do the right due diligence, that deal could blow up and not in a good way. And then also have something I call the paperless portfolio pro where I’ve also learned that the hard way, know, seven, eight, 10 properties in, know, a lender asks me for a copy of my insurance policy and I can’t find it. I have to reach out to my insurance agent.
⁓ You know, now I have everything completely organized all in one place, each LLC, ⁓ each property under the LLC, each important document for that property. So I’m happy to share that for free. Anyone that wants it, just like I said, we’d love to help and get you closer to your goals.
Quentin (23:25)
Absolutely. Well, there he is. I’ve known Mr. law letter. Sir, thank you so much. Thank you so much for your time, for your perspective, for your story. We definitely need more people like you in this space that’s going at the right way. So again, Mr. Rich, thank you for being with us today.Rich Lauletta (23:43)
Thanks, Q. Awesome talking to you and I look forward to keeping in touch, my man.Quentin (23:46)
Absolutely, absolutely. Now everyone else, you know you got value out of this. So please go ahead and subscribe. We wanted to make sure that you get the alert when we’re having these great conversations and dropping these great conversations, just like we had with Mr. Lauletta. So again, Mr. Rich, thank you. And to everyone else, we will see you on the next time.
