DeepSummary
David Greene and Rob Abasolo discuss the need for 'spring cleaning' in their real estate businesses and portfolios. They talk about evaluating their business operations, making new hires or letting go of employees, and deciding whether to start new ventures or focus on existing ones. Rob mentions struggling with follow-up and accountability for his properties.
They then delve into their rental portfolios, identifying underperforming properties to sell and reinvest the proceeds into larger, more profitable assets. David plans to sell two smoky mountain cabins, a commercial property, and five single-family rentals. Rob is selling an Airbnb in West Virginia but reinvesting in building new short-term rentals in Joshua Tree.
Towards the end, they discuss personal life changes - David contemplates leaving California and renting out his primary residence, while Rob considers transitioning to a one-car household to embrace a more walkable lifestyle.
Key Episodes Takeaways
- Regularly evaluate and 'spring clean' your real estate business operations, including hiring/firing and new venture decisions.
- Identify underperforming rental properties in your portfolio and consider selling them to reinvest proceeds into larger, more profitable assets.
- Pay close attention to details and follow-up on your rental properties to maintain their performance and value.
- Be selective about the assets you hold onto, and divest ones you are not passionate about or that no longer align with your goals.
- Personal lifestyle changes like relocating or minimizing possessions can also be part of the 'spring cleaning' process.
- View the cycle of growth and pruning in business as natural and healthy, just like the human body's cellular regeneration.
- Consolidating smaller rentals into larger, more lucrative 'hotels' can be an effective wealth-building strategy.
- Constantly re-evaluate and optimize your real estate portfolio to align with changing market conditions and personal priorities.
Top Episodes Quotes
- “When you let your business deviate one degree at a time, at a certain point, you're going the opposite direction.“ by Rob Abasolo
- “I'm selling these to move into bigger properties, too.“ by Rob Abasolo
- “You should never own something you don't care about. That's kind of my opinion, especially in the short term rental space or medium term rental space. You should be like, they should be your babies.“ by Rob Abasolo
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Episode Information
BiggerPockets Real Estate Podcast
BiggerPockets
4/4/24
Why are David and Rob selling off parts of their rental portfolios? It’s a new season, and you know what that means—spring cleaning! And if you’ve got underperforming properties, a real estate business that’s just treading water, or employees who aren’t moving the needle, this is the episode for you. David and Rob are talking about “trimming the fat” of their portfolios and businesses, weeding out the bad expenses, and selling off their problem rental properties. And with spring being the best time to sell, you may want to consider doing the same.
First, we’re going through David and Rob’s real estate businesses—they’re talking about hiring, firing, starting new businesses, and when it’s time to slow INSTEAD of grow. Next, the investing duo takes a hard look at their portfolios, triaging the properties into winners, losers, and the ones that need a little love. If you’ve got a rental property that isn’t pulling in the numbers you want, now may be the time to sell!
But, if you’re going to sell some of your rentals, how do you use that money to keep building wealth? We’ll get into exactly what David and Rob are doing with the money from their problem rental properties and how they’re using it to multiply their cash flow even more. Don’t leave your portfolio collecting dust—you’ve got some spring cleaning to do!
In This Episode We Cover
When it’s time to sell your rental properties (and how to know they’re underperforming)
Why you should NOT start a new business until you evaluate THIS
Hiring, firing, and how to know it’s time to cut back your business expenses
The real reason you need to visit your properties more often (Rob’s BIG mistake)
Return on equity (ROE) and why you need to keep track of this crucial metric
David’s potential move and why he may be leaving the Golden State behind
And So Much More!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-929
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