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In this episode of the Investor Fuel Podcast, host Michelle Kesil interviews Rebekah Taylor, a seasoned real estate investor and lender. Rebekah shares her journey in real estate, discussing her transition from a tech career to full-time investing. She elaborates on the differences between active and passive investing, the importance of having the right team, and the challenges of scaling her business. The conversation also touches on the significance of networking, relationship building, and the lessons learned from failures in the industry. Rebekah emphasizes the need for diversification in investments and shares her ambitious goals for the future of her debt fund.
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Investor Fuel Show Transcript:
Rebekah Taylor (00:00)
think one of the biggest ones is just ⁓ taking action. For a long time, we waited for the perfect deal. We waited for years and years for the right rental property to come along with all the right numbers and limited amount of work or whatever. I there’s just so many things. And I think analysis paralysis is so real. And if you don’t take action, you will be sitting on the sidelines for so long. And you’re going to probably lose money. Inflation is real.So if you’re not making money with your money right now, you’re probably losing money just sitting in a bank account earning half a percent a year. So I think it’s just so important to take action and not be afraid to fail.
Michelle Kesil (02:12)
Hey everybody, welcome to the Investor Fuel Podcast. I’m your host, Michelle Kesil, and today I’m joined by someone that I’ve been looking forward to chatting with, Rebekah Taylor, who’s been making serious moves as an investor as well as lender. So really excited to have you on the show today, Rebekah.Rebekah Taylor (02:38)
Great to be here. Thank you so much, Michelle.Michelle Kesil (02:40)
Of course, I think our listeners are really going to take something away from how you’re approaching both active and passive investing, as well as helping people with their funds and their debt and yeah, just all of the knowledge that you have in this realm of investing. So excited to dive in. Yes.Rebekah Taylor (03:07)
Great, yeah, thank you so much. ⁓Michelle Kesil (03:09)
Yeah,first off, for those that are not familiar with you and your world yet, can you give us the short version of what your main focus is?
Rebekah Taylor (03:19)
Absolutely. I’ve been investing in real estateabout 13 years now. I live in Lynchburg, Virginia with my husband of 17 years and my three kids. And I worked in the tech space for about 10 years doing sales and marketing while doing real estate very much on the side. And then back in 2020 decided to jump into a full time. I, my husband and I bought more rentals and then started working. I got my license actually as a realtor and started working for a private equity firm that was doing fund to funds within the real estate space.
and
I worked for them for a season before transitioning to another firm that was just doing value-add multifamily syndications. And so I learned a lot about the passive investing world. I worked in that space again and invested in that space in my first couple of real estate syndications that were very passive and then started our firm, Taylored Investments, in April of 2023. And so we do the same. We buy larger assets with investors around the country. In that time, we also started lending privately.
We found a lot of local rehabbers and builders that needed capital pretty quick and they needed it short-term to fund their projects and so we started funding those deals and we we realized we could get really great returns on our money and then last year we started bringing investor capital into that and then this year we launched a debt fund and so it’s been going really well growing a lot and funding more and more projects around the central Virginia area We’re getting requests for outside of Virginia. And so it’s been a lot of fun I love real estate and there’s just so many ways to make money in real
state. know, it’s like, it’s just incredible all the different opportunities out there.
Michelle Kesil (04:55)
Amazing. I love how you have that broad range of all the different ways that you’re just getting involved in this world.What are some of the keys that have allowed your business to grow and to run smoothly?
Rebekah Taylor (06:03)
Hmm You know, think having the right people in place connecting with people that can really help you grow for a long time I’ve struggled with letting go of control and doing everything myself, you know, I’m kind of a perfectionist So I like to do it my way but butWhat has really helped me grow just in the last year with the debt fund is bringing on two partners that are just amazing and they have a lot of strengths that I don’t have. And so we help balance each other out really well. And that has just been, I mean, exponentially helped us grow this year. It’s just really having them in those seats and running different parts of the business. We also hired a bookkeeper this year and had a VA for a season. I’m trying to find a VA. We had some challenges on that front. But it’s been really fun to just
to find the right people because again, you can’t do it all by yourself. There’s only so much you can do by yourself and if you really want to grow, I think you have to have some help. So I’ve loved having just their support.
Michelle Kesil (07:04)
Absolutely, that makes a lot of sense, especially when you’re growing and scaling. There’s only so much time and energy that you have and of course having the right people that can take things off your plate really expedites things.Rebekah Taylor (07:19)
Yeah, absolutely.Michelle Kesil (07:21)
Awesome. So I know that you mentioned you’re both doing passive investing and active investing. Could you share what the difference has been for you in like deciding which way to go? Maybe some pros of cons of each for people that are newer and kind of deciding how to, ⁓ yeah, just make that decision of what investing strategies are the best for them.Rebekah Taylor (07:38)
andAbsolutely. we actually, our first
real estate investment was probably, gosh, eight or 10 years ago, we loaned money to a local business here. So it wasn’t a real estate deal. It was a local business that needed a loan and they didn’t know how long it would be, but they wanted a loan at 12%. They’re willing to give us 12 % a year on our money. We invested $80,000 with them and every year we got a check with 12%. Actually, I think they paid quarterly, which was great. know, so we enjoyed having just
passive income we didn’t have to work for. That was our first kind of experience with passive income. And then as time went on, like I mentioned, I worked for two real estate firms previously that were doing syndications or group investments. And so our first passive investment in the syndication world was 100,000. It was in a fund of funds, and we were able to put our capital to work.
didn’t have to be the ones swinging the hammer or the ones dealing with toilets and tenants and trash. And so it was a longer term hold. That’s a 10 year fund. So our capital is still tied up into that deal, but we get payments every month from that. And I’m not again, having to be on site. I never have to do anything except for read the updates and enjoy that cashflow. And we even get some depreciation and there’s equity growth is those are invested in properties. And so we’ve done a number of those types of deals ranging from like 20,000 up to a hundred thousand.
And then let’s see we like I’m into we started lending our money for more short-term deals on the debt side Over two years ago and again We just we kind of encountered people in our network that were rehabbing houses or building and they just needed access to Capital for you know six to twelve months and so there is definitely more work involved in that I would say that is not as passive if you were the one you know putting the loan together You got to do a lot of due diligence You need to make sure you have attorneys who were you know put together your legal documents
You need to manage the you job not you don’t have to be on site all the time But I still want to go out and visit my loans that properties were lending on you know typically monthly So there is more hands on to that, but we do bring investors into those deals I know there’s a lot of other debt funds out there like us where they’re bringing investors in and they’re just earning a you know
8 or 10 or 12 percent a year every group’s a little different So you earn you know pretty passive income on those deals, and it’s just a different you know way of looking at it so I also
actively invest in real estate. So we have a number of rental properties here locally and most of them I have a property manager take care of.
think we have three right now that I’m still managing because I’ve just had tenants there for a long time. I haven’t passed them off to my property manager. But those are definitely more active. Even with a property manager, I still have to deal with calls sometimes. She’s amazing, but she still has questions. She still has things that she needs from me. I still have to approve big purchases. so there’s both sides of the coin. think you can often make… It’s hard to say because I talk to active investors sometimes and they’re only making 6 % cash on cash on their money.
⁓
And I think that there’s other opportunities on the passive side that can be more lucrative. So every deal is different. You know, it’s really hard to say whether active or passive is the right path for somebody because every person is so different. So I always ask a lot of questions when I’m talking to people and figuring out like what does their time look like? How much capital do they have available? What’s the risk tolerance? Where do they want to invest? You know, there’s there’s so many questions that I think you have to ask yourself and figure out about a deal in terms of whether or not you want to come in, you know, very passively or
you want to come in more actively as an investor.
Michelle Kesil (12:02)
Absolutely, that makes a lot of sense and I love how you explain the different ways that it’s working for you guys and yeah, I think there’s so many strategies with investing and everyone can Yeah, learn a little bit about all of them and see what’s gonna suit their lifestyleRebekah Taylor (12:25)
Yes, yes, absolutely. And I do think diversification is really important. Don’t put all your eggs into one basket because you never know, and I’ve seen some people do that, where a deal just doesn’t go as planned and then you lose a lot of money. So I think having options, having diversification is really important.Michelle Kesil (12:42)
Yeah, totally. think with every investing opportunity, it’s really good to diversify. Awesome. What are you most focused on solving or scaling to next in your business?Rebekah Taylor (12:52)
Mm-hmm. Yeah.Mmm.
So we are getting, I think partly because I’m a realtor, I’ve got a lot of connections in our industry, I’m an investor here, I got a lot of connections in that arena, and so we’re getting inundated with opportunities for loans to fund these rehabs or new bills, and it’s exciting. I love seeing revitalization in our communities, and again, we’re getting opportunities for loans outside of this community, so it’s awesome to see people needing capital, but we’re constantly
Absolutely bring in on investors to satisfy the loans. And so that is definitely a big opportunity for us right now is just, you know, bringing on more investors, providing really solid stellar service to them. We’re trying our best to, as we grow, communicate with them on a regular basis and figure out a good cadence for how do we, you know, we support them and we help understand them. We’re transparent and communicative and just a good partner because we want them to feel like they’re our partner and they can invest with us long term. We’re going to, you know, protect their principal investment, but also
provide really solid returns on their capital. So it’s a ⁓ good problem to have and we’re trying to figure out how do we solve it? How do we bring in more capital?
Michelle Kesil (14:17)
Absolutely, that is a good problem to have and I’m sure that there will be many solutions that come your way. Are you primarily working on this with investors only in your local area?Rebekah Taylor (14:35)
No, we’re working with investors all over, and have investors, I actually have some up in Alaska, know, we’ve got investors all over the country. yeah, it’s a lot of fun. Technology is such a blessing. I mean, there’s just so many ways to connect with people and share what’s happening through technology.Michelle Kesil (14:53)
Yeah, that’s so cool that you’re able to help people all over, yeah, the US I’m sure.Awesome. So every business owner has those moments where things get more real, maybe a deal that goes sideways, or you have to make a fast pivot. Would you mind sharing one of those moments in your business that you have experienced and how you overcame it?
Rebekah Taylor (16:09)
Yeah, I mean we had a loan that we did for an investor that just encountered a lot of roadblocks like with the plans he had originally had. He was planning to make the property a triplex and had a lot of the city shut it down. I there’s a lot of roadblocks with the loan and with what they were doing. it all took longer and typically our loans are six months. Well, you six months came and went and he kept encountering roadblocks. He wasn’t getting the projectdone on schedule, he’d spent all the money that we had given him for the loan and he had just not budgeted correctly what the rehab budget was gonna look like. And so fortunately, we had tied in, collateralized another property, so we had protected ourselves on that front and also had a co-signer on the loan that helped kind of pick up.
He ⁓ came beside this borrower and helped get the project done. so eventually they refinanced it, refinanced us out. We got our capital back and ⁓ the interest and fees. so it was challenging. was a lot of like going back and forth with the borrower, trying to figure out creative solutions for how to get this project done, how to get the capital back out. And again, fortunately, we were able to keep it under a year, ⁓ but it was definitely longer than the six months. And so that’s frustrating when you think
and they think they’re gonna get it done, but then they have all these unexpected things with the city or material or contractors that don’t do the job right or the financing group or whatever. mean, there’s just so many things that can come up. And so we eventually got through it, but it was a lot more work on our end of handholding with a borrower and making sure that he had some support to get it wrapped up and get us out of that loan.
Michelle Kesil (17:58)
Yeah, definitely those things happen and yeah, that’s good that you guys are able to find your way out of it and get that solution. Absolutely. When it comes to growing your business, whether that’s through relationship building or networking, what are some of the things that have made the biggest difference for you?Rebekah Taylor (18:10)
Yeah.Mm.
Pretty early on I…
started using a CRM. I use ActiveCampaign, which is more of an email software, but I sort of use it as a CRM as well. And so I’ve been adding to it and tracking my contacts, adding friends and family. A lot of times in this business, you start with friends and family that are investing with you. so putting their information in there and reaching out, and I think follow up is so important in this business. You have to follow up if you want to get, even if it’s a loan done or a
property or whatever it be, getting an investor in the door, the follow-up is so, so important. so, yeah, I think just the ongoing relationships, realizing that you’re going to probably hear no a lot, but…
eventually they often turn to yeses. And I’ve seen that so much, you know, being in the business as long as I have. I’ve seen friends and family or prospects come through that have, you know, initially didn’t feel like it was the right fit, but then they eventually ended up joining us. so networking, there’s a number of groups I’m a part of in our community and that’s been just awesome to connect with them. I do go to some conferences and that’s been really fruitful. I’ve been able to make some good connections with people that end up investing and, or needing capital for their deals. so, yeah, I love to be out.
It’s a lot of fun. do work remotely from home for the most part and so when I get to go out and be around people it’s a lot of fun just have that you know connection and connect with other people that are in the space and you you get to share stories and tips and tricks and advice and it’s just a it’s a really big blessing to have that ⁓ the community around you.
Michelle Kesil (20:06)
Yeah, absolutely, that community and the relationships you build can really support you and take you far in this space. ⁓Rebekah Taylor (20:16)
Absolutely.Michelle Kesil (20:20)
So I know you’ve been doing this for a long time and I’m curious what are some tips or advice that you could give for people that are just starting out, anything that’s been kind of like major themes or lessons that you’ve learned on your journey.Rebekah Taylor (20:36)
Mm.think one of the biggest ones is just ⁓ taking action. For a long time, we waited for the perfect deal. We waited for years and years for the right rental property to come along with all the right numbers and limited amount of work or whatever. I there’s just so many things. And I think analysis paralysis is so real. And if you don’t take action, you will be sitting on the sidelines for so long. And you’re going to probably lose money. Inflation is real.
So if you’re not making money with your money right now, you’re probably losing money just sitting in a bank account earning half a percent a year. So I think it’s just so important to take action and not be afraid to fail.
We all fail. And I feel like that’s probably the best way for us to learn is by making mistakes or learning from other people that have already made those mistakes. And so don’t be afraid. Take a step forward. And every step forward is putting you closer to your goals. And so I’m just so thankful that we have had some failures and they were painful.
but we’ve come so much further because of those. So that would probably be some of my best advice is just don’t be scared.
Michelle Kesil (21:52)
Yeah, I love that. I think a lot of people get stuck thinking that they have to know it all before they move forward. yeah, there’s so much learning through the action.Rebekah Taylor (22:03)
Yeah, absolutely.Michelle Kesil (22:07)
What are your biggest goals for where you want to take your business?Rebekah Taylor (22:16)
⁓ yeah, again the lending side with our debt fund has really taken off and so our goal is to hit 15 to 20 million dollars in our fund in the next probably three years. And so it’s an ambitious goal but I think it’s totally feasible and we have the right people in place. yeah, ⁓ I’m pretty pumped. I think we’re gonna be able to hit that and we’ve been moving pretty quick but also setting up the right systems and processes so that we’re able to sustain the growth.it comes.
Michelle Kesil (22:49)
Amazing, that’s such an exciting goal and yeah, I love that you are getting set up to be able to hold it.Rebekah Taylor (22:53)
Thank you.Yeah, thank you. We’re excited.
Michelle Kesil (23:00)
Awesome, yeah I’m sure.So before we wrap up here, if someone wants to reach out, connect, collaborate with you, where can people find you and connect with you?
Rebekah Taylor (23:15)
So I’m pretty active on LinkedIn and my first name is spelled a little differently. It’s R-E-B-E-K-A-H. So definitely LinkedIn is a good spot to connect ⁓ our website for Taylored Investments. It’s T-A-Y-L-O-R-E-D, tayloredinvestments.co. And so there’s a lot of helpful information on that site in terms of passive investing. ⁓ I’ve got a lot of blogs and videos there. And so definitely check out our website. If you are looking for a loan, check out machspeedlending.com.⁓ I’m sure you guys will have it in your show notes where I can provide some of those links if people want to reach out to me. Be happy to connect.
Michelle Kesil (23:58)
Absolutely. Well, I really appreciate your time, your story, and your perspective. Thank you for being here.Rebekah Taylor (24:08)
Absolutely, thank you so much for having me. It’s nice to see you, Michelle.Michelle Kesil (24:12)
And for those listeners tuning in, you got value from this, make sure you’ve subscribed. We’ve got more conversations with operators just like Rebekah who are building real businesses and we’ll see you on our next episode.
