Why You Need Property Management

Christian (00:01.284)
Hey guys, welcome back to the show. I am here with my friend, Grant Anderson. And today we’re going to talk about everything that he’s doing inside of the real estate market and his company and business. but before we get into that guys here at investor fuel, we help real estate investors, service providers and real estate entrepreneurs, two to five extra businesses to allow them to build the businesses they’ve always wanted and to allow them to live the lives they’ve always dreamed of. without further ado,

Grant, my man, welcome to the show. I’m excited to talk with you. I know we just spent about 10 minutes before this, just getting to know your background and it sounds like you have a lot of cool stuff going on that I know the audience is gonna love to hear about. So before we get started, the floor is yours. How about you just share a little bit about yourself and how you got here.

Grant Anderson (00:48.483)
Yeah, great. Thanks, Christian. Thanks for having me. I met Mike not too long ago at one of the Investor Fuel events. I went to Investor Fuel Live. I work with Real Wealth, and we help provide turnkey rental properties throughout the country to our members. They’re all single-family home investors, and we partner with people on the ground that are actually the ones doing the work. They’re the ones buying the properties, rehabbing them, and then selling them to our members.

or new construction. We also have a lot of new construction. And typically those teams have a property management aspect to it. Cause as we know, owning rental properties, especially from afar, you definitely need a good property management company to help out with that as well. And then I also do investments myself. I own a portfolio of rental properties in Indianapolis, started out in Sacramento, California.

started building up some properties there, did some 1031 exchanges. And then now we have our whole portfolio in Indianapolis and we do the BIRS strategy, which obviously I know a lot of people do. It’s a really good way to increase your portfolio with the least amount of money into each of the deals. And that’s kind of what we did as well.

Christian (02:06.426)
Very cool. I appreciate the introduction, Grant. That’s awesome, man. So in your property management, right, what you’re doing, mean, where do you feel like the gaps are with property management right now? Why does someone need a property management company?

Grant Anderson (02:19.382)
Well, if you are afar from the property, it is imperative that you have at least property management company or somebody on the ground that one knows the laws in that area and two understands how to get a qualified tenant into your property, being able to manage that tenant while they’re through the tenancy. If anything breaks, having those boots on the ground to be able to go do that.

I’ve actually always kind of managed my own properties. So I understand that, but I was always in Indianapolis and until about a year and a half ago, my wife and I actually moved into our RV and that’s where I am right now. We kind of travel around the country. So it was imperative that I had people on the ground that actually are the ones doing the like maintenance stuff and things like that. So

Doing it in your own backyard is obviously a lot easier as you don’t necessarily need a property management. And I always recommend people who start off to say, okay, it’s nice if you can manage your own, because then you can learn what a property management actually goes through to manage that property. And it is difficult and it is different. So it is nice to learn about it and then pass it off to somebody if you’re like, I’m not built for this.

Christian (03:39.952)
Yeah, absolutely, man. You got to hire the experts, right? That’s the way to go. So you can work on the things that actually matter in your business, right? So you can keep growing. That’s what it is. So cool. So why don’t you talk about your process for recruiting and vetting and managing your property teams nationwide? I’m really interested to hear about that.

Grant Anderson (03:43.938)
Yep. Yeah. Yep. That is.

Grant Anderson (04:00.08)
Yeah, so I am one of the property teams managers for real wealth. Basically what we do, my wife and I do the same thing. So we go around and meet people that are turnkey, either they’re rehabbers, they’re doing a turnkey, they’re getting it all ready to rent, and then they’re selling it. Sometimes those properties are either already leased or they don’t have to be leased. Our members right now in the way that the

the world is working, our members are really liking the ones that are already rented because as we know the rental market seems to be kind of softening a little bit in certain areas. So we want to make sure that those they have least amount of variables and rent is one of them. You know, if you can have something fully leased, our members are eating those up because there’s already a tenant in place. They already know what the rents are going to be. They don’t have to wait 60 days or 90 days or however long it’s going to take to get it rented out.

And then they don’t have to go with like price drops or anything like that. it’s already leased. They already know what those caught those income will be. And then now they just have to figure out what the costs are, which are the property management fees, the insurance and property taxes. And if there are any HOAs, and then we also work with some people who are doing new builds. Sometimes they’re in a rent to own a rental community like a

a build for rent community and sometimes they’re in fill lots. We like to work with the ones that are in fill lots because typically those are in typically nicer neighborhoods, but we’re able to work with all of them. Yep. Yeah.

Christian (05:37.712)
you’re able to work with all of them. Very nice. Very cool, man. Very cool. you know, the, potential investors that you’re working with right now, mean, I know you mentioned you’re educating them on some really interesting key investing strategies, right? So cashflow appreciation. Why don’t you talk a little bit about that?

Grant Anderson (05:53.543)
Yeah, so we have members, we have about 60,000 members within real wealth. And obviously not all of them are active and not all of them are gonna be buying, but a lot of them are from out of state. So they’re in California, they’re in New York, they’re in Colorado, some of those areas where the numbers don’t really work in their backyard. And so we’re encouraging people to go outside of their backyard and say, hey, look, I can go from California, right? We all know that tenant landlord laws are

in the favor of the tenant more than the landlord. So that is one thing that we kind of look at when we’re choosing different markets that we’re going to be in, but also what the team is on the ground, what type of industries are happening in that area. But our members really want to see that real wealth is doing their due diligence in making sure that these teams that we’re bringing our quality, are making sure that they’re having good properties.

And a lot of them are doctors, attorneys, business owners that don’t have the time to go invest. And obviously a lot of the investor fuel people are probably the active investors, right? We’re not really looking for the active investors. We’re looking for the more passive ones that are like too far away. They want to, they’re willing to buy it at full price.

you know, and obviously every investor and everybody likes to have some equity in it at the end of the day. But as long as they’re not feeling like they’re, they’re paying too much for the property, meaning over what the appraised value is, then they’re willing to pay that because they understand that they’re buying a fully turnkey, ready to rent property as compared to a lot of active investors who are going out and burning like I was, you know,

buying a property, doing that, that’s a lot of work for somebody who is extremely busy in their own personal business, the way that they make their money. So now they’re building wealth by buying rental properties.

Christian (07:56.336)
that makes a lot of sense, right? I mean, that’s the whole key is to provide and build wealth, right? And that’s the thing, you know, if you want to be on the beach one day or the whole week, then there you go. This is what you should do, right? To be able to accomplish that dream. And also it’s about being able to provide for your family, right? I mean, I’m sure everybody else and on this audience as well, that’s what we’re all here for, right? Take care of our family for the next 20, 30 years and the next generation to come, right? So that’s awesome, Grant.

Grant Anderson (08:04.848)
you

Yep.

Christian (08:24.11)
Why don’t you talk a little bit about your experience, right? mean, you’ve been doing this for a long time. I mean, how did you even get into this? I mean, this is, yeah.

Grant Anderson (08:30.996)
Yeah. I started in real estate in 2001. I bought my first house. I’m still in college. I did a house hack. And before that, I had bought I read Rich Dad Poor Dad like a lot of us. I go, you know, I want to do this. I want to invest in real estate. And so the first thing I did is I went and I approached my dad and I said, Hey, dad, you know, I have a

have an idea of buying this house. I have enough money to pay the three and a half percent down at that time FHA loan. But I didn’t have the income because I was still in college and I said, I have two buddies that want to move in with me. Let me try this out. And my dad, know, luckily I had set some stones up in prior my life that my dad knew I was responsible. They said, yeah, I’ll sign the dotted line with you and help you get your property. And then

about six months later, I refinanced him off the loan because I didn’t want him to be responsible for anything that I may have messed up. And then that was my feet on the ground and starting to learn about real estate, renting out our own, the house that I was living in. Then as I got married, I kicked out my roommates and now I didn’t have any rental properties. So.

Christian (09:48.688)
Yeah.

Grant Anderson (09:51.505)
I went out and bought a couple of out of state from California. I bought a couple of properties in Oklahoma and I just started using the cash that I had and I go, man, this doesn’t work out very well. I can only buy like one or two properties. So I started looking into how I can invest in real estate a little bit more. Started doing some wholesaling and got into some flips, did a couple of those. And then that’s when I really started picking up, okay, I could buy a rental property, fix it up.

And this was before I knew anything about the BRRRR strategy. I thought of it, you know, kind of myself before that, know, Bigger Pockets was doing it and stuff like that. So I just said, I’ll go out and do it and rehab a house. And then the first one we did, we got 20 grand more than we put into it. And I was like, Hey, this is successful. But then obviously not all of them do that. So it’s, was a great first start because it got me really thinking, wow, I could really do this. So we

Christian (10:39.088)
Yeah.

Grant Anderson (10:49.525)
started and that was out in California and then about 2015 and 16 the prices started going up a little bit higher than rents and so even doing the BRRRR strategy was like barely making any cash flow. So I decided to look at other markets and at first I was investing in Indianapolis without moving out there. I started doing it from afar and I really learned

That is a hard thing to do because you really have to trust the contractors. I got screwed by contractors. I got screwed by some real estate agents and probably some of the wholesalers that I ended up buying from. But it was a big learning experience. So I convinced my wife that it would be a good idea to move out to Indianapolis. And so we could increase more of our portfolio. So that’s what we started doing. And since then, we’ve been mostly doing

the BRRRR strategy and sometimes we do some flips every so often, but mostly we like to do the BRRRR strategy because we know that long-term wealth with rental properties.

Christian (11:57.924)
Wow, that’s incredible, man. So I mean, the birth strategy, is that something you’re, do you recommend to everybody to do the birth strategy if they’re just looking to get into real estate, right? I mean, what would you say?

Grant Anderson (12:08.329)
Yeah, I would say yes, but they obviously have to be able to fulfill that contract side. Like they have to kind of understand, okay, not every property is going to be just paint and carpet, right? Or paint and flooring. So they really have to know what they’re getting into. hopefully they already have a contractor who can walk properties with them and give them pricing because otherwise they could be well.

Christian (12:15.546)
Mm-hmm.

Grant Anderson (12:35.573)
They could spend more than they would have if they bought it on from the MLS or just already a turnkey property. But if you are thinking about rental properties, even if you do make a mistake, let’s say you do pay more, you have time on your hand. If you are a flipper, you don’t have that time, right? You need to sell it at the end of the day to get your money back to go do something else or

You know to move on to the next project and you can’t afford to put ten thousand dollars into it But as a rental property Maybe if you lost that ten thousand dollars up front and you held on to it for the next ten fifteen years You’ll probably make a lot more than just that ten thousand dollars back

Christian (13:20.048)
That makes a lot of sense that makes a lot of grant I appreciate you breaking that down a lot of people are I’m telling you guys It’s a million dollars worth the game right here that grants given out. So great. Keep it coming, man So, I mean, I’m really interested to hear to grant. mean you’ve been a pioneer a leader, you know, especially real wealth I mean, it sounds like you guys just have so many great systems and you’re able to optimize, know and help these people It’s such a high level. I mean, how did you build those skills? You know, what type of systems are you guys using in place for that? I mean

Grant Anderson (13:28.951)
Thanks.

Christian (13:50.416)
Why don’t you talk a little bit about that?

Grant Anderson (13:52.694)
Yeah, so all of my past experiences doing rehabs and stuff like that helps me with the job that I do now, because one of the things we do is we really do vet the area that the companies are in. So our property teams are all in areas that we feel are growing, have population growth increased, hopefully also increased appreciation over time.

and having it in an area where rents can actually float a property. not all of our teams are in, or all of our teams are in areas where at least the numbers work out and they break even. So that’s one of the things that we really look at is the first we look at the properties themselves, what kind of properties are they? All of our members like B, A properties, they’re not typically looking maybe high C,

Christian (14:34.544)
Mmm.

Grant Anderson (14:50.433)
Low C, D areas, they’re not looking for those. It’s a lot more risky for them. So they’re looking for the higher quality product. And then so we just make sure that they cashflow. If they cashflow, then we start looking into the market. Then we start, then we go out and vet the team. So we look at their projects, drive by their projects, make sure what are they providing to our members? How are they, how do they work? Will they fit in within real wealth culture?

Christian (14:58.597)
Mm-hmm.

Grant Anderson (15:19.671)
Our culture is really like transparency, making sure that everybody is on the up and up. There’s a lot of people out there trying to buy turnkey rental properties. Everything looks good, but then you turn on the faucet and there’s no water coming out because the plumbing isn’t hooked up. Those aren’t the types of people that we want to work with because we want to build that long-term relationship with them. We want to make sure that our members are taken care of.

Christian (15:41.434)
Yeah.

Grant Anderson (15:47.874)
Obviously things are going to happen within real estate. Obviously things are going to happen from a property team standpoint. Like, you know, they’re going to forget to do something or wasn’t on the scope of work. Well, how do you handle that afterwards with our member? Right. Once we give them in there, bought the property and they go in and they say, man, you know, this, what, okay, a sewer line on a brand new construction wasn’t hooked up. So they were having backup.

Christian (16:02.586)
sure.

Christian (16:17.24)
Oof.

Grant Anderson (16:17.257)
into it back up into the house and we’re like, okay, well what’s happening? Well, the sewer line wasn’t hooked up and the property team went in and made sure that that was fixed even though it was really the city utilities that should have done that. So those are the types of things that we wanna make sure that people are being taken care of. And even though they didn’t have to do that, they understand the relationship with one, the buyer because the buyer is gonna be a repeat buyer if they keep.

Christian (16:31.312)
Bye.

Grant Anderson (16:43.926)
If they have good experience, they’re going to continue to buy over and over from the property team. And they understand that real wealth in general, if they have a bad experience with say the Dallas team, then they’re not going to go buy something from the Jacksonville team. Right. So they’re, they, the teams themselves understand that as well. We also have, like mastermind type stuff where we get the teams together to talk about them.

about what’s going on in their markets, what they’re doing with their members, property management, all of the aspects of real estate so that they can learn from each other, just like Investor Fuel does, just like the same types of things. But we wanna make sure that they’re understanding that rental side of things, because I know Investor Fuel focuses a lot on the people who are flipping selling to other homeowners.

We want to make sure that they understand the other side selling to other investors.

Christian (17:43.162)
Got it, got it, got it. That pieces it all together right there. I mean, that’s huge. Wow, that’s incredible, man. mean, Grant, mean, somebody that, because obviously there’s so many people in our audience, right? People that are doing 50 plus deals, property management, commercial real estate, department syndication, you name it, right? But the beginners, right? I mean, how does someone build systems, right? How does someone learn how to hire?

Grant Anderson (17:48.25)
Yeah.

Christian (18:10.704)
I mean, do you guys assist with anything like that? mean, what does that look like? What would you give advice on that?

Grant Anderson (18:16.126)
Not really, Real Wealth doesn’t really help the people come up with the systems. We do help our members. So it’s free for members to join at realwealth.com. And so our members are able to go in. have Cathy and Rich Fedke are both the co-founders of Real Wealth and they’re out there doing a lot of education and a lot of things out in the market.

Christian (18:29.576)
it’s free. Cool. Okay.

Grant Anderson (18:45.756)
Kathy is really good at studying the markets and looking at markets and she does a lot of work doing that. And then we also help to educate our members on buying a turnkey rental property. So in anything that has to do with that, like tax advice, things like we have partners that we deal with that. have mortgage companies, we have insurance companies. So our members have kind of like a one-stop shop.

And then for our property teams, a lot of that would be if you don’t have a system, I know the other property team that probably does. So we have some property teams that are really good at AI and they’re like teaching other property teams how to have more AI included into their business or how to hire somebody a little bit better. had some property teams that are better at property management. And then we have some property teams that are going through property management growing pains.

Christian (19:22.032)
Grant Anderson (19:42.509)
And so we kind of connect the two of them together to make sure that they’re able to help each other out and grow, one, as people and as their company, but also that in turn will help real wealth grow as well.

Christian (19:57.754)
Wow, Grant, guess the real question is what you guys don’t offer, right? Because it sounds like you guys just do everything. mean, ladies and gentlemen, mean, this is the guy that… That is awesome, man. I mean, that’s incredible. That’s the way it should be, right? I mean, it’s like, how can you provide as much value to the people you work with, right? The people that trust in you to work in business with, that’s everything. And I feel like in this industry, we need that more than ever.

Grant Anderson (20:01.872)
Yeah. I don’t know that we do everything, we typically don’t, we don’t. Yeah.

Christian (20:27.64)
Right? Because as you know, there’s, there are some bad characters as in any industry. but this is what it needs to be about. Right? If, if you teach a man to fish, teach them for a lifetime. Right? And that’s the thing. It’s how can you help other people get to the next level? And then you also advance yourself as a person as well in that process. Right? So that’s what it’s about, man. Grant, I appreciate you sharing everything, with me. And I know the audience once again, just got more than a million dollars worth of game.

Grant Anderson (20:48.304)
Yeah.

Christian (20:56.304)
With that, I know I did, but unfortunately we’re running out of time. But Grant, I just want to give you my praise and thanks for joining us today. And I’m going to give it back to you now to, if anyone wants to learn more about you, what you’re working on, how can people work with you, where do they need to go? Where do they need to sign up? Because they need to.

Grant Anderson (21:18.01)
Yeah, yeah, definitely. If you go to realwealth.com, if you want to become just a member and see some of the free education that Real Wealth puts out on buying rental properties specifically, just log in. You’ll get connected. have investment counselors that can help counsel somebody through. We have 15 different markets, so that is one of the biggest things, like picking out the different markets. So we have investments counselors to help everybody walk through the steps of buying their first rental property.

If they want, if they’re interested in becoming a property team, which is the ones that are providing the properties to our members, and Real Wealth typically gets a referral fee, they can still go to realwealth.com and then if they click on other resources, there is a thing at the bottom that says, become a property team. And if they click on that, they’ll see all of the information that Real Wealth has out there.

as far as how we help our property teams and how we’re able to get them to buy selling more rental properties to our members. Even if you are somebody who is a new construction person or a flipper, it’s not bad to have in the back pocket, hey, I can sell some of these to investors as well. And we encourage people to still sell it if they want to sell it on the open market to other people as well.

that’s fine. We just want to make sure that we’re able to sell them to our members as well. So it kind of opens up the door if the one side is slow, then hey, let’s ramp up the other side. And it gives people a little bit more of other exit strategies as they’re going along with return key properties. And then if they just they can read through it, and then there’s a little application, it’s not really an application, it submits their information that tells us about them, what their market is, what their experience is.

and then a couple of sample proformas. And then we will take it from there and we’ll contact them and then usually set up a meeting.

Christian (23:19.472)
Beautiful, beautiful. Thanks for breaking it down, Grant. We’re also gonna drop all those links in the description as well so people know exactly where to go for that. So that’s gonna be great. Awesome guys, you’re here first. Once again, Grant, thank you so much for your time. It was a pleasure. I hope everyone enjoyed today’s show. And as always, we’ll see you on the next episode. Take care everybody.

Grant Anderson (23:28.805)
Yeah, awesome.

Grant Anderson (23:34.45)
Yeah, thanks, Christian.