Building a "One Stop Shop" with Tyler Madden

Introduction

In this section, Noah Evans introduces the Chasing Freedom Show and his guest Tyler Madden.

Introducing Tyler Madden

• Noah introduces Tyler Madden as a GC (General Contractor).

• Noah and Tyler met at the New Orleans Bigger Pockets Conference and connected again in Las Vegas at another real estate meetup.

• Noah wants to dive into Tyler's story because he believes it will inspire many people.

Why Real Estate?

In this section, Tyler shares why he chose real estate as his career path.

Background

• Tyler has a biology and chemistry degree and wanted to be a doctor through the Air Force ROTC program.

• He realized that he didn't want to trade a majority of his life for money and wanted more freedom.

Passion for Fixing Things

• After buying his first house with his girlfriend (now wife), Tyler discovered that he was good with his hands and loved fixing things.

• His guiding principle became providing for his family by giving them the nicest things possible.

Working for Our Families

In this section, Noah and Tyler discuss how working for ourselves means we're really working for our families.

Connection to Children

• The connection to children is even deeper than that of spouses because they are mini versions of us.

Working for Our Families

• When we work for ourselves, we're really working for our families.

• Tyler finds satisfaction in working for himself because of the freedom and passive income that real estate provides.

Conclusion

In this section, Noah wraps up the episode.

Recap

• Noah thanks Tyler for sharing his story and insights on real estate investing.

• He encourages listeners to attend real estate conferences to network and make connections.

The Importance of Impactful Work

In this section, the speaker discusses the importance of doing impactful work and how it can affect future generations.

Doing Work for Future Generations

• The speaker believes that their future family's lives will be impacted by the work they do today.

• They emphasize that there is not a selfish bone in their body and that they are not working solely for wealth or money in their bank account.

• Instead, they care about the lifestyle and freedom that money allows, especially for future generations like their grandkids.

• The speaker shares a quote by Warren Buffet about planting trees and how they want to plant enough seeds to benefit their grandkids and beyond.

Real Estate as a Tool for Impact

In this section, the speaker talks about real estate as a tool for leaving an impact on future generations.

Real Estate as Tangible Impact

• The speaker believes that many entrepreneurs are driven by impact, and real estate is a great tool to leave an impact because it is tangible.

• They explain that real estate extends beyond our lifetime if we take care of the asset properly.

• However, they acknowledge that some properties may not last longer than them depending on how it was built.

First Deal: Accidental House Hack

In this section, the speaker talks about their first deal which was an accidental house hack.

Accidental House Hack

• The speaker's first deal was an accidental house hack where they fixed up the house they were living in to afford remodels.

• They then kept the property when they bought a new house and used a HELOC to help with repairs on the new property.

• The speaker also talks about their intentional first deal, which was buying seven multi-family units simultaneously. However, they choose to focus on the accidental house hack for this section.

Buying Multi-Family Units

In this section, the speaker talks about buying multi-family units and shares their experience of buying a triplex.

Buying Multi-Family Units

• The speaker invests in Denver and was making offers left and right at deals in the area.

• They found a fourplex while on vacation in Hawaii but lost it after going way over asking price.

• Their agent found them a triplex that was under contract but likely to drop out. They convinced the seller to let them take over if they went in with the same terms as before.

Taking Down Two Properties Simultaneously

In this section, the speaker talks about how he was able to take down two properties simultaneously and remodel them.

Mindset is Key

• The speaker emphasizes the importance of having a solutions-oriented mindset in business.

• He believes that until you believe that you can do something, you will never be able to achieve it.

• The speaker reached out to successful real estate investors for advice on how to take down two properties simultaneously.

Taking Risks and Betting on Yourself

• The speaker was willing to take a risk and bet on himself by putting up earnest money and investing time and energy into the deals.

• He believed that if he wasn't willing to bet on himself, he wouldn't find success.

Remodeling the Triplex

• The speaker remodeled an entire triplex himself as a general contractor.

• He put $80,000 into the remodel of three units, which was more than what property managers thought they should spend.

• After refinancing, they were able to burr out of it with only $18,000 left in the deal.

Renting Out Units

• The properties are located next to a major hospital complex with four hospitals on campus.

• They are renting out all three units of the triplex at mid-term rates for traveling nurses.

• They are getting $2,000 per unit instead of market rates of $1,200 per unit.

Networking and Indirect Ask

The speaker talks about the importance of networking and indirect ask when it comes to tying other people to your properties.

Importance of Networking

• Existing relationships and friendships can help in networking.

• Many people would be interested in investing if they are approached through networking.

• Indirect ask is important as it breaks the intimidation barrier.

Indirect Ask

• Asking for referrals instead of direct money can be more effective.

• Even if you don't need money, asking for guidance can lead to offers for investment.

• Being top of mind is important when it comes to getting referrals.

Closing Deals with Hard Money Lenders

The speaker explains how he successfully closed deals using hard money lenders.

Using Helocs

• Accessing equity out of your property can provide capital without having to use savings account.

• Borrowed 80% from hard money lender, 10% from private funds, and 10% personal funds.

• Used helocs multiple times and will continue to do so.

Real Estate Investing and General Contracting

In this section, the speaker talks about his experience in real estate investing and general contracting. He shares how he started with a single-family house and gradually increased his net worth by investing in more properties.

Starting Small

• The speaker started with a single-family house in 2013.

• He gradually increased his net worth by investing in more properties one at a time.

• The process of increasing net worth takes time and effort, and it's not always quick.

Scaling Up

• After four years, the speaker had nine units altogether.

• Eventually, he hit a hockey stick moment where he was able to scale up quickly.

• The speaker is excited to see where his investments will go next.

Combining Real Estate Investing and General Contracting

• The speaker is also a licensed general contractor who runs a high-end luxury remodeling company that focuses on homeowner clients.

• He believes in doing things excellently and attracting people who share that philosophy.

• The speaker wants to unify his two businesses by investing in larger multi-family properties through his general contracting business.

• His goal is to provide opportunities for employees to find passive income instead of having them find their own side hustles.

Importance of Hiring the Right People

In this section, the speaker talks about the importance of hiring the right people and how it can impact a business's growth.

Hiring External Team Members

• The speaker admits to making mistakes in hiring external team members.

• He emphasizes the importance of taking time to interview and ensure that external team members fit with the company's values and culture.

• The speaker invites listeners to share their ideas on how to involve employees in a company's growth and success.

Managing Business Growth

• The speaker discusses how smaller companies often prioritize culture when starting out but may struggle as they grow faster than expected.

• He stresses the importance of managing business growth speed and being prepared for it.

• The wrong people in the wrong seats can lead to unintended consequences.

Profit Sharing for Employees

In this section, the speakers discuss profit sharing for employees and its potential impact on motivation.

Implementing Profit Sharing

• The speakers discuss adding profit sharing or allowing employees to invest in deals.

• They acknowledge that there is no exact answer on how to implement profit sharing but emphasize its importance in giving employees benefits beyond just enjoying their work.

Impact on Employee Motivation

• Justin shares his perspective that allowing workers to reap similar benefits as leaders makes him excited to go to work.

• Allowing employees to benefit from a leader's financial freedom can be impactful.

Hiring High-Level Team Members

In this section, the speakers discuss the challenges of hiring high-level team members who are financially independent and do not want to work for a boss. They also talk about the importance of treating high-level team members as partners.

Qualities of A-Team Members

• The speakers discuss some qualities that make up their A-team members.

• Patience is a key quality in real estate since it's not an instant gratification game.

• Playing the long game is important, and finding team members who understand this is crucial.

• Having a dialogue about what you're seeking instead of burying your vision internally can help find the right people.

Treating High-Level Team Members as Partners

• It's important to treat high-level team members as partners rather than employees.

• Treating team members with respect and equality can foster a sense of partnership.

• Hiring only high-level team members who can push the entire company forward is worth it in the long run.

Importance of Sharing Your Vision

In this section, the speakers discuss the importance of sharing your vision with others and how it can help attract the right people to your team.

Sharing Your Vision

• It's important to share your vision with others, especially if you're a visionary for your business.

• Don't worry about naysayers; focus on attracting people who believe in your vision.

• Even if you're just getting started, share your vision to help attract the right people.

Importance of Aligning Visions

In this section, the speakers discuss the importance of aligning visions when bringing on new team members.

Aligning Visions

• When bringing on new team members, it's important to ensure that their vision aligns with yours.

• The most important thing is having a shared vision for the next two, three, five or ten years.

• Joining forces with someone whose goals align with yours can be beneficial in achieving success long-term.

Setting Ego Aside

In this section, the speakers discuss how setting ego aside can lead to greater success when working with others.

Setting Ego Aside

• Setting ego aside is crucial when working with others and building a successful team.

• Partnering up with someone who has already achieved what you want can be more beneficial than trying to do it alone.

• Pride and ego often get in the way of realizing the benefits of working with others.

Learning from Mistakes

In this section, the speakers discuss how learning from mistakes can lead to greater success in the future.

Learning from Mistakes

• It's important to learn from your mistakes and realize that depending on others is not a sign of weakness.

• One speaker shares a story about an acquisitions manager who let their ego get in the way of success.

• Being able to set your ego aside and think of the bigger picture can lead to greater success in the long run.

Building a Team Mentality

In this section, the speaker discusses the importance of building a team mentality within an organization.

Adopting a Philosophy

• The speaker emphasizes the importance of finding people who can adopt the same philosophy and mentality.

• This mindset should spread throughout the organization like wildfire.

Importance of Team Mentality

• The speaker highlights that having a team mentality is highly overlooked in building a business.

• Working with friends to accomplish amazing things is what makes work fun and enjoyable.

Enjoying Work

• The speaker shares how he still can't believe that going to work is so much fun.

• He advises not to get used to it because that's when it stops being amazing.

Mindset for Real Estate Investing

In this section, the speaker talks about his mindset for real estate investing and how he developed it.

Investing in Mindset

• The speaker invested heavily in mindset by joining masterminds where he was surrounded by other people who were intentional about achieving their goals.

• He learned that confidence is key and that you don't need money or connections to get started.

Confidence in Yourself

• The speaker emphasizes that you're never going to know everything, but you have to be confident in yourself and your abilities.

• You have to supply the gaps that you didn't know you needed, which is a lifelong process.

Surrounding Yourself with Success

• The more people succeeding around him, the more fuel he had to see himself in their shoes.

• Instead of waiting for someone else's approval, he realized he needed to tell himself that he could do it.

Becoming the Person Capable of Success

• The speaker realized that to achieve success, he needed to become the person capable of doing so.

• He advises changing your habits and fueling your knowledge by listening to podcasts, reading books, meeting other people, and talking about subjects you were previously uncomfortable with.

Becoming the Person You Want to Be

In this section, the guest talks about how confidence is a daily practice of changing things that you previously did so that you can become the person you want to become. He also emphasizes that it takes intention and sticking with something to change the outcome of your life.

Confidence is a Daily Practice

• The guest believes that confidence is a daily practice of changing things that you previously did so that you can become the person you want to become.

• The things that got you where you are are not the things that will get you where you want to go.

• Shedding old layers of yourself and getting rid of habits that weren't serving the purpose of developing into the person you wanted to become is important.

Intention and Sticking with Something Can Change Your Life

• It takes intention and sticking with something to change the outcome of your life.

• On average, it takes 40 days to build a habit. Committing for 40 days to do something consistently one time a day can literally change the outcome of your life.

• People think something astronomical has to happen for them to get where they're going, but it really doesn't take much effort; it just takes intention and sticking with something.

Starting Over in Real Estate

In this section, Justin asks what would happen if everything was lost in real estate, including all properties purchased. The guest shares his thoughts on how he would start over by building a community around him.

Building Community First

• If everything was lost in real estate, the guest would start with building a community around him.

• He would put other people around him doing what he wanted to do and prove to himself that if these people are able to do it, he's able to do it too.

• He would make good friendships with people in the industry not for the "what's in it for me" mentality but for the sake of having people in his corner.

• Having people behind you is like fuel on a fire.

The Importance of Finding Like-Minded People

In this section, the speaker discusses how finding like-minded people in the real estate industry can be beneficial for personal growth and success.

Benefits of Having Like-Minded Friends

• Real estate is not just about deals and money, but also about life.

• Finding other people who share your values and goals can provide a sense of community and support.

• Having friends who understand your struggles can help you stay motivated during tough times.

• Being able to rely on supportive friends can make a significant difference in one's life.

Impactful Book and Podcast Recommendations

In this section, the speaker shares an impactful book he has read recently as well as podcast recommendations that have helped him in his journey.

Book Recommendation: The Gap in the Game

• The book emphasizes finding gratitude instead of constantly measuring oneself against others or striving for more.

• It encourages readers to focus on their progress rather than always looking towards the future.

Podcast Recommendations: Bigger Pockets Real Estate Podcast

• Listening to other people's stories on these podcasts has helped the speaker gain confidence in his own real estate journey.

Building Relationships and Chasing Freedom

In this section, the speaker talks about building relationships with high-level people and chasing freedom.

Building Relationships

• The speaker talks about how Ashley from the BiggerPockets Rookie Podcast helped him in his formative process by talking through things with him and helping him gain confidence.

• He emphasizes that he became friends with Ashley because he tried to be friends with her instead of trying to use her. He encourages people to build relationships because they want to add value to them instead of taking value from them.

• The speaker believes that if you reach out to high-level people without ulterior motives and just want to be a decent human being, you might be surprised at what you can expect from that friendship.

Chasing Freedom

• The speaker thinks that chasing freedom is a pursuit because the goal post is ever-moving. He mentions gratitude and satisfaction as being at the top of his list for figuring out how to quit forsaking today's satisfaction for tomorrow's gains.

• He finds appreciation for the life he has now on a daily basis, even though it is stressful, anxiety-inducing, heavy, and busy.

Tyler Madden Shares His Wisdom

In this section, Tyler Madden shares his contact information and how people can reach him. He also talks about his personal and business Instagram pages.

Contact Information

• Tyler can be reached by writing a letter or checking out his Myspace page.

• Tyler's personal and business Instagram pages are great ways to connect with him.

• Tyler is willing to share his story and be an asset to anyone trying to get started in real estate.

Bigger Pockets Rookie Conference

• Tyler will be speaking at the Bigger Pockets Rookie Conference on building teams.

• The conference runs from April 30th through May 1st, and a link for tickets will be provided in the show notes.

• Noah Evans thanks Tyler for coming on the podcast and handing out bumper stickers at the conference.

Conclusion

• Tyler had fun sharing his wisdom with everyone on the podcast.

• Noah Evans provides links to more real estate content on his Instagram page, website, and YouTube channel.