How to Treat Your Real Estate Like a Business with Michael Glaspie

Passive Wealth Strategy Show - Real Estate for Busy Pros

Are you a real estate investor looking to scale your portfolio? Tune in as Michael Glaspie shares his experience scaling a portfolio of 134 units and offers vital lessons he learned. From house hacking to understanding the numbers, Michael advises looking at your business like a car manufacturing company, managing operational costs, and understanding financial statements. Plus, he shares his worst and best investments and how they shaped his overall strategy.

Aspiring real estate investors will want to experience this episode full of practical advice for managing a successful portfolio!

[00:00 - 08:19] Opening Segment

• Introducing Michael to the show
• He scaled his portfolio to over 134 units and founded an agency of 100 agents
• He teaches investors how to run their real estate like a business

[08:20 - 14:00] Understanding the Profitability of Real Estate Investing

• Real estate investors should strive not to be the smartest person in the room and hire experts to help them scale
• Having bookkeeping in place is essential, no matter what level of experience you have
• Be aware of additional costs, such as third-party property management, when looking at profitability

[14:01 - 21:30] Understanding Financial Statements

• Investopedia.com is a good source for understanding how to read financial statements
• Tax planning is essential for all investments, mainly flipping, which gets hit hard with short-term capital gains taxes
• The importance of being mindful of financial statements
• Track profit margins rather than individual dollars to be prepared for increases in property taxes and insurance

[21:31 - 25:56] The Impact of Real Estate Investing

• There is a need to increase revenue to keep the same profit margin
• A fractional CFO should be hired when generating over 100K in revenue
• CEOs are looking for a return on their investment in every decision they make

[25:57 - 30:46] Closing Segment

• Best investment: Michaels's first property, which was bought with a VA loan
• Worst investment: a wholesale assignment that led to someone being displaced and homeless.
• The most important lesson learned: it is okay to ask for help

Quotes:

"When we want to scale a company, all we're doing is we're improving efficiency." - Michael Glaspie

"I don't care what your passion is or what you envision you want to do. There's one thing in this world that can help supply and fund it all, and that's money." - Michael Glaspie

Connect with Michael!

Instagram: https://www.instagram.com/michael.s.glaspie/

YouTube: https://www.youtube.com/@michaelsglaspie

Website: www.MichaelSGlaspie.com

Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/

Track your rental property's finances with Stessa. Go to www.escapingwallstreet.com.

Join our Passive Investor Club to access passive commercial real estate investment opportunities.

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