Tips for Growing a Real Estate Business with Family and Friends

Rome Lingenfelter is a commercial real estate mogul who loves teaching others so that they gain financial freedom. He began investing a few years ago with his wife. His process entails fixing, flipping, and wholesaling, with a major focus on the multifamily market. He is anxious to give people helpful tips towards growing a real estate business with family and friends.

Lingenfelter was not always involved with commercial real estate. His first position was managing a national grocery store chain. After 16 years in this type of work, he stepped away and dove into real estate. His wife joined him, and the rest is history.

Rome explains that his wife is his perfect partner. She is an expert at negotiating deals. He prefers to act behind the scenes with things like calculating numbers and deciding on contracts. They both left their jobs to create a business that allowed them to spend more time together and with their son.

Getting Family Involved

Rome’s pre-teen son Max is also becoming a helpful part of the family business. He explains that he and his wife play to Max’s strengths. Since he is an only child, he has excellent adult communication skills. Therefore, he has been involved with door-to-door sales and has advanced to social media. Also, he has helped with some of their rehabs.

Rome understands the importance of getting a solid grasp on financial matters. He found the game Cashflow 101 to be extremely helpful. He began playing with his son from a young age. This is a free online game that makes learning how to invest fun while teaching investment strategies in different scenarios. They have been involved with local REIAs as well.

Challenging Properties

Rome has been in commercial real estate for almost a decade. Through the years, there have been many challenging properties. He cites one transaction that was particularly ugly. During one of his flips, he had a third partner. It was an expensive Portland property with a value of approximately $1 million. His partner claimed that the numbers were too good to pass, so they borrowed money for a down payment. Long story short, things fell through. Rome ended up losing half of his money on top of owing interest on the deal.

Learning From Past Mistakes

While revisiting this deal gone sour, Rome discusses all the things that he has learned from past mistakes. To begin, he emphasizes that it is always important to have the correct numbers before entering a deal. Also, he no longer takes out large loans to use as down payments. He gives the tip that it is better to walk away from a transaction than to get into one that shouldn’t be had.

Challenges of Growing His Company

Overall, Rome notes that marketing is a big challenge. Also, he explains that it is challenging to get things up and running. Luckily, he is able to find deals. However, he notes that things get very busy with just him and his wife. It is not uncommon for them to have multiple projects in the works. However, it becomes difficult to get everything out to the market. This is rough, especially since the market is where the money is located.

Rome has decided to take time and to concentrate solely on marketing efforts. He understands the necessity of getting his systems running smoothly. He intends to hire a virtual assistant so that it is possible to break up the business’s processes. In this manner, not just one person is responsible for everything.

Lingenfelter’s Corporate Experience Is Key

To repeat, Rome spent many years in a management position for a large grocery store chain. He explains that it is essential for each person to understand his or her role and to remain focused. When he began in the real estate business, he let his hands-on personality cloud his judgment. He learned quickly that it is essential to observe the big picture and to step back from jobs that require outside hires.

Another crucial aspect of business is customer service. He states that one of the most important tips to any business owner in real estate is to take care of people. He reiterates that many individuals get stuck on the numbers and explains that future deals come from perseverance.

Top Real Estate Investing Advice

Rome says that the biggest tip about buying property is practicing due diligence. Part of due diligence is making a checklist, especially when buying real estate in an unfamiliar area. For example, when a seller gives information about a septic tank or another part of the property, it is important to follow up and to make sure to check facts.

Rome was once burned on a transaction where he needed to replace a bad septic system. He never took the time to check it out, and it required expensive repairs that cost him dearly during the resale process. On a different note, Lingenfelter explains that it is essential to have an accountant and a lawyer available to answer questions and to offer protection.

Giving Back

Rome recognizes the need to give back to the community and to encourage other entrepreneurs to do the same. He offers financial education to budding businesspeople and teaches how to think like an entrepreneur rather than an employee.  He hopes to grow his passion and ignite it in others. Through his advice and example, Rome hopes that it is easier for others to begin growing a real estate business with family and friends.