Unlocking the Secrets of Real Estate Investing: A Backstage Guide

Matt Picheny is the founder of Picheny, a company that acquires underperforming real estate assets and adds value through various methods such as rehabilitation, repositioning, etc. He has over 15 years of experience in real estate and through those years he’s acquired over 10,000 units of assets.
Join us in this episode as we interview Matt on what he thinks is the most important mindset a real estate investor needs, and how his background as an actor has helped him become successful as an investor.

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Don’t Forget To Reach Out to Matt Picheny
Website: https://picheny.com/
Instagram: https://www.instagram.com/mattpicheny/?hl=en
Linkedin: https://www.linkedin.com/in/picheny

Quotes
“As an actor, you face a lot of rejection. I go out there, I sing my song or read my lines and I hope that they like it and they might even like it but for one reason or another, they can’t cast me in the role.”

“I underwrote well over a hundred deals and I’m not talking about just kind of looked at a deal. These deals I looked at and I knew right away they didn’t work but I had over a hundred deals that I actually did full underwriting on, put in offers and just got rejection after rejection after rejection and then finally got one that made sense.”

“Movies make you famous, television makes you rich, and theater makes you an actor and I wanted to be an actor. I was into the are you? I was an artist, I was a craftsman.”

“I was a project manager for many years in digital marketing and so I’m really good at managing people, budgets, and timelines. So that brings me to sort of the asset management of things. That’s kind of how my skill sets apply to real estate.”

“My goal when I’m doing these deals is not about holding them forever, but you need to have the ability to do that. You need to have that cash flow because when you don’t expect it, that’s when things are going to go back right and you need to have that cushion. You need to have those reserves.”

Concepts
In real estate, you will get rejections. Don’t take these rejections so seriously, you can do the best that you can but there are just some factors that you can’t control.
One of the best mindsets to have in real estate is persistence. Being persistent with the deals that you want to make and being persistent even after facing a lot of rejections will help you become successful.
If you are passionate about something, pursue a career related to that. You’ll work harder doing something that you love which gives you more chances of succeeding. Don’t listen to the people who tell you to do something else if you really love what you are doing.
Don’t trade your time for money. Figure out ways to generate money without it taking your time because you can only generate money, not your time.
Cash flow is king. Look for ways to generate income from your properties without selling. Selling should be the last option like if there was a market crash and you can’t sustain some properties anymore, then you can sell. But having a positive cash flow means you’re gonna be benefitting from the property longer than selling it.
You can be financially free and have debt. Having a positive cash flow where you generate more money passively than your mortgages. A longer loan term for your mortgages may make more sense as you would be saving more money that way and from these savings, you can reinvest into other investments that will also add more to your passive income.
You can get into real estate as a limited partner while you are looking for your first deal so you can get into investing faster. As a limited partner, you are only liable for the amount of your investment.
You can learn many things as a passive investor. Observe how different operators structure their contracts, and how they communicate with their investors. You can then apply these when you get your first deals.
Investors appreciate it when you give them detailed reports on the deals that they’re investing in.

Time Stamps
0:00 Introduction
7:10 How has your experience in the world of acting helped you in real estate
11:45 Overcoming rejections
15:05 How has your life as an actor compared to your life now as an investor
22:00 Discovering yourself in real estate
26:50 Building relationships in the real estate world as an actor
28:30 Three most impactful principles you live by
38:10 How have you built your relationships in real estate syndication
42:05 Limited Partnerships vs. General Partnerships
46:35 What are you going to do when you achieve financial freedom
50:55 Art in Real Estate
52:35 Vision for the next 12 to 18 months

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