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Jake Harris
Founder & Managing Partner, Harris Bay Real Estate Firm
Bring humor and energy to real estate topics.
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Why you need to leverage other people's balance sheets.
How did I start buying distressed real estate? Let me tell you!
You’re part of my community, so I bet you’re familiar with the part of my story where I lost everything. It was 2009, my credit was shot, I ran out of money, and I had two foreclosures. Point blank, I ran out of money before I ran out of properties.
This led me to work in the trenches with one of the “Rich Guys.” He had seen this kind of economic collapse happen before and had liquidated a bunch of his properties so he was sitting on cash. That’s when he said, “Okay, now it’s time to buy. There’s blood in the streets.”
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Recessions are a great time to buy. Why? Because investors and property owners are in distress. They’ve started something they can’t quite finish, and it’s costing them to keep it. That’s when you can hop in and get some killer deals. I started buying at foreclosures and trustee sales until I was ready for bigger deals. I put together a whole portfolio of single-family rentals, built a system, and scaled the operation!
I've done nearly 1,300 of these deals in 23 states, and as a result, I’ve gravitated to wanting to do bigger deals. For example, I bought a preschool in foreclosure. I was able to remodel it and bring in another tenant. I put half a million dollars in and sold it for 3 million bucks. Now THAT’S a life-changing gain!
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We sold some of these early properties off to institutions and realized that playing just ahead of the institutional capital is what we're most successful at.
By playing just ahead of the institutional capital and assemblies, you can take advantage of incredible investment opportunities. When there’s a recession, when you lose big, when others are losing big, when there’s blood in the streets, that’s when it’s time to buy. Look for distressed assets and go from there!
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When it comes to real estate investing, slow and steady wins the race.
Have you ever used a meat smoker?
The “low and slow” technique of smoking meat allows the layers of flavor and texture to build on each other while maintaining the integrity of the meat. It’s torturous how long it takes, but once you pull that meat out of the smoker, it only takes one bite to know it was worth the wait.
Sure, you can throw a piece of meat over an open flame and cook it super fast. But in doing so, you’ll char the outside, making the meat tough and flattening the flavor profile.
Too many people want an instant return when they invest in real estate. They throw their investment into the fire and expect to make millions overnight.
And that’s why they fail.
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As someone who made (and lost) a quick fortune, I can tell you from experience, expecting a quick return on your real estate investment threatens the integrity of your investment, simplifies the deals you can make long-term, and quite frankly, makes it really tough on you as the investor.
Instead, real estate investors need to manage their expectations. If you’re in a rush to make $50,000 or $100,000 this year, you're setting yourself up for failure.
Play slower. Take time to get crystal clear on what exactly you want to do. This will help you find the right deals and better advantages in your competitive market set or asset type.
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For example, you can say, “I buy self-storage units that are MOPA operators in tertiary markets that have no sophistication from a technology platform.” Now, this is the lever that you can play. And that's how you can build out your wealth in those units.
When you have that level of sophistication in the commercial real estate space, then you attract other people's capital and you can add layers, depth, and sustainability to your investments. Don’t compromise the integrity of your investment by rushing the outcome. Go low. Go slow. Let it build on itself as the long-term investment it’s intended to be.
It’s worth the wait.
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It pays to know what you’re getting into.
Have you ever made a decision without checking all the boxes?
A few years back, I was visiting Mexico. I fell in love with a painting of a sugar skull by an artist from Guadalajara. Even though I was captivated by it, my wife was not a fan.
Now whether you’re married, live with a roommate, or share an office space with others, you can make decisions without doing your due diligence and checking with other people but you’re also risking the consequences of that decision without checking with those that are impacted by your decision.
Well if you know me I thought this painting would look great in our house and I purchased it at the gallery right away. It was a great deal! $$ Well I’ll cut to the chase my wife did not share in my enthusiasm for the painting. So now I have a painting shipped to the States and my beautiful wife is very much opposed to the idea of it in her house… if I had some forethought I would have maybe checked with her before I bought it.
Do I try and sell it and let it sit there? Hmm 🤔 well, I was able to pivot and spoiler: the painting is not in our home, but it is proudly displayed in my office and you can see it on many of my videos or zoom calls.
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Here’s the point: due diligence matters. When making decisions, especially in real estate, it’s essential that you consider all the factors that could make your potential deal a total slam dunk or a complete failure. And trust me – the bigger the deal, the bigger the consequences if it goes south.
Obviously, purchasing deals have a lot more potential pitfalls than paintings, so it’s important that you don’t miss anything that will cause future headaches or even bankruptcy. Don’t white-knuckle your deals. Develop systems that allow your decision-making to be predictable so it can reoccur and grow upon itself. Does that sound like a daunting task? The good news is that I’ve already done it for you.
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David J. Orr, president and founder of REI Development, Inc., has referred to me as a front-runner in the industry because of my ability to identify and evaluate investment real estate opportunities.
I’ve translated this insight into an investment strategy for distressed real estate, and I want you to have access to what David has called a “powerful tool.”
In my opinion, and based on the rave review from John Lockwood, CFP, CLU, the biggest takeaway from the due diligence course is the Due Diligence Checklist. John says, “Overall the course was a big confidence booster to give me the courage to take the risk, invest the money, and to continue to learn from my mistakes.”
If you see something you like, make sure you’re doing your homework so you can get the ROI you deserve!
Amy Lafko
CEO & Founder, Cairn Consulting Solutions
Offer deeper connection while equipping healthcare leaders.
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I admit it. I’m an assessment junkie. I’ve taken them all. Some are fun, “Which animal are you?”. Others are valid and reliable tools to be used as part of additional information gathering. Some serve a single purpose. Others can serve multiple purposes, making them essential business tools.
As a reformed assessment junkie, I focus my energy on assessment tools that offer the biggest bang for my buck. And that is why DISC is one of the tools I use most often with my clients. As a Physical Therapist, my evaluations and treatment plans were grounded in scientific research. Looking for reliability and validity in all the tools I use, I found TTI Success Insights. With brain science and tools normed at least every two years, I found a scientific shortcut to understanding myself and others.
The behavioral tendencies evaluated in the DISC profile explain how people influence others and respond to problems and challenges, the pace of the environment, and the rules and procedures set by others.
Here are 4 ways the DISC assessment acts as a shortcut to leadership success.
Emotional Intelligence: Self-Awareness
Self-awareness is a key leadership skill. It speaks to our ability to know who we are at our core, and what that means when interacting with the world around us. The DISC assessment helps us understand ourselves so much better. And that's foundational when it comes to teams as well. When we understand how we behave naturally, we can be strategic about leveraging that behavior. DISC also provides a map for us to interpret how our behavior impacts our interactions with other people. This self-awareness can be even more thoroughly leveraged when we understand how others approach interactions as well.
Emotional Intelligence: Social Awareness
Not only does the DISC assessment give us a map for understanding ourselves, but it also gives us insight into understanding others. If we want to be emotionally intelligent leaders, having more data for interpreting others’ behavior is truly a game changer. When we don’t understand our teams, it can be tempting to “blame” them for mistakes or be upset by certain interactions. Boiled down, DISC can help you as a leader to “blame less and help more.” What employee wouldn’t prefer that? With the information from a DISC assessment, Krumma Jónsdóttir, a Forbes Councils Member, explains that we can “become proactive and mindful, creating the conditions to evolve in [y]our comfort zone and managing situations outside [y]our comfort zone.” It’s this self-management that impacts emotional intelligence.
Communication
Outside of emotional intelligence, the DISC assessment also equips leaders to communicate more effectively. In short, the DISC assessment creates a language around observable behavior. It’s a communication cheat sheet! You could set aside six months for a team to figure out how they want to interact together, or you could take an assessment that gives you language and solutions within minutes. The bottom line is we all want people to understand who we are, and how we're going to do things. DISC does exactly this, which enhances communication and identifies communication gaps so you can prevent misunderstandings and dips in productivity.
Collaboration
The DISC assessment tells us explicitly what each person's quantifiable value is and how they can make the most impact on a team. It’s true, identifying these superpowers and strengths can create tension. After all, it highlights our differences. That being said, DISC validates these differences while offering solutions for overcoming this natural friction. Understanding how and why people operate in the ways that they do will minimize unnecessary conflict while maximizing the team's strengths. Lastly, Terry Segerberg, CEO of Mesa Industries explains that DISC can also reveal collaborative gaps where a team is missing a strength or quality that could be beneficial. This information is key when making hiring decisions.
We use science to improve our patient care and advance technology, but are we willing to use it as a shortcut for getting to know our teams? When we as leaders are able to influence self-awareness, emotional intelligence, communication, and collaboration with minimal time and effort, that sets our team up for long-term success. Consider making the DISC assessment your next investment in your business.
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When you consider the criteria for a new hire, how much weight do you give to how they are going to behave? While you likely use behavioral interviewing questions, they are subjective- both for the person answering the question and the person asking the question. Because we all have biases, it is important to add objectivity into the selection process.
Assessing behavioral tendencies doesn’t mean you’re looking for a team of identical robots. That said, if someone’s natural behaviors are aligned with what’s needed for the job, they are more likely to be successful.
Here are three ways you can use the DISC assessment to design a high-performance team.
Understand yourself.
If you don’t know where you are, you won’t know what steps to take or which direction to head in to reach your destination. As a leader and participant in a team, self-awareness is key to designing a team that works well together under your leadership style. As Forbes Council Member, Alex Llorens describes, “leaders with self-knowledge are better equipped to draw from their personal purpose and strengths—while also accepting their setbacks and blindspots—in order to bring more heart, authenticity and even fun to the business.”
DISC gives you tools for understanding your own behavioral tendencies, as well as your team members’. This knowledge allows you to flex and bend to meet others where they are. You don’t need to break with who you are; you simply need to adapt to ensure that your interactions with others create a connection instead of a barrier. This connection is what establishes a successful, People First team.
Understand your team.
Social awareness is having your antenna up to observe communication cues that may reveal other people’s emotional experiences – the motivations behind their behavior. Because you can never know for certain what is informing someone’s behavior, tools like DISC can give you a common language and a starting place for understanding.
Behavioral tendencies evaluated in the DISC profile explain how someone:
Responds to problems and challenges
Influences others to their point of view
Responds to the pace of the environment
Responds to rules and procedures set by others
By understanding the behavior of your current team, you can better assess what gaps need to be filled by a new candidate, and what type of candidate will mesh well. Instead of listing a generic job description and the minimum job requirements, focus on the organization’s values and culture. You want to attract people whose behaviors reflect your company’s values and support the culture you’ve worked so hard to design.
Diversify your hires.
Some behavioral styles are better suited for certain roles than others. A decisive and venturesome person will be more successful as a leader than as a back office person focused on process work. Likewise, a solitary, fact-loving person will probably enjoy bookkeeping more than an outgoing, people-oriented person would. Job matching provides clarity on what styles will match each role.
Individual roles will likely have a common primary style. In a leadership team, diversity of behavioral styles adds value. Leaders with a high sense of urgency are balanced by people wanting to make sure there is enough information to make a decision. Leaders focused on the task are balanced by those focused on the people aspect of the decision.
Selection should be an objective process. TTI Success Insights says, “Job matching is the science of carefully defining superior performance for each position and then using objective
criteria to determine who is selected.” To that end, your hiring model needs to look at four critical areas where the candidate and the job need to match:
Technical skills and knowledge
How they behave
Why they do what they do
Soft skills
Let’s be clear: no candidate will exactly match all four components, but job matching allows you to examine the candidate from the context of the “ideal,” identify the gaps, and make a thoughtful decision. If someone lacks a technical skill, you evaluate if it’s a must-have or something the person can be trained on later.
Skills and systems can be taught, but behavior is much more set in stone. By using the DISC assessment tool to understand yourself, understand those around you, and diversify your hires, you can more efficiently and effectively design a high-performance team.
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Self-awareness is a key leadership skill, one that most leaders overlook and most employees focus on intently.
We know self-awareness is essential for growth. If you don’t know where you are, you won’t know what steps to take to reach your goals. But more importantly, a lack of self-awareness impacts our emotional intelligence which directly affects our ability to regulate our behavior. This self-regulation is essential to effective leadership and sets the tone for our teams.
Why Emotional Intelligence Matters to Leadership
The Oxford Dictionary defines emotional intelligence (EQ ) as “the capacity to be aware of, control, and express one’s emotions, and to handle interpersonal relationships judiciously and empathetically.” In short, it’s the ability to recognize, understand, and effectively manage our emotions so we can facilitate high levels of collaboration and productivity. In both cases, self-awareness is the foundation.
Unlike behavioral tendencies and inherent motivations, which are for the most part fixed, EQ is a skill, a competency of leadership, and like all skills, it can be improved if you work on it. EQ is also recognized as one of the key drivers of performance success; a recent Udemy report showed that 88% of employees value emotional intelligence in leaders.
When skilled at regulating emotional responses, you can stay clear-headed in challenging situations. This calm and clarity in thinking allow you to make better decisions despite what is happening around you.
How to Cultivate Self-Awareness
Self-awareness is the cornerstone of emotional intelligence. Simply put, it’s our ability to understand what we are experiencing (elation, sadness, anger), what triggers it, and what the impact is. Identifying and tracking triggers helps us notice when we are having a strong response, and understand what triggered the emotion.
You can master self-awareness in two steps:
Track situations that elicit strong emotions. Pay close attention to your emotions. Notice when you have intense feelings of joy or frustration in response to specific events or a response that was or wasn’t helpful in a particular situation.
Identify the trigger. It’s tempting to attribute an emotion to something on the surface, but the trigger often stems from something deeper. You can’t respond appropriately if you don’t understand what is happening and why, so dig into the emotion to find the root cause.
How to Self- Regulate
Once you understand what triggers you and why, you can focus on the act of self-regulation. Managing your reactions allows you to stay in control and do the work that needs to get done instead of being held hostage by what you’re experiencing internally.
Here are 3 steps for developing self-regulation skills:
Seek feedback. Initially, it may be difficult to recognize when you are having a strong reaction. Sometimes, your colleagues notice your reactions even if you don’t. For example, you might not feel your face grimace, but they will see it. Seek their feedback on how you respond to triggers.
Find a better way. Once you understand your responses, resolve to give a better response next time.
Practice. There are many methods to manage your reactions. Experiment to find the one that works for you.
Self-regulation extends beyond emotions. Understanding your own behavioral tendencies, as well as your team members’, allows you to flex and bend to meet others where they are. When you set an emotionally intelligent tone for your team, you empower everyone to cultivate their own emotional intelligence and self-regulation, which over time dramatically improves workplace culture and performance.
Steffany Aye
Founder, Adoption & Beyond
Educate readers through accessible resources and tips.
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Hello,
Having been in the adoption profession for as long as I have, I have answered many of the same questions for hopeful adopting families. Below is a list of some of the most frequently asked questions that I have received over the years:
How long will it take to receive a child through adoption?
How often do expecting moms change their minds about their adoption plan or not follow through with placing their child for adoption?
Will we receive medical and family background on the child?
What is the cost of adoption?
You can read the answers to these questions in this week’s blog.
If I could impart any words of wisdom to you, it would be this: it’s really important to be very flexible in the adoption process. Be patient and prepare for the unexpected. Go into adoption with an open heart and an open mind.
I hope you find these questions helpful!
Wishing you the best,
Steffany Aye
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Hello,
Are you feeling overwhelmed by all there is to know about adoption?
Adoption has many layers and can feel overwhelming at times. That’s why having the best resources to help you navigate the adoption process is so important. In my most recent blog post, I explore 4 of my favorite adoption resources that have helped many hopeful adoptive families adopt the child of their dreams.
I hope these resources can be helpful to you on your adoption journey too!
Read the blog to learn more.
Wishing you the best,
Steffany Aye
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Hello,
For many families, the hardest part of the adoption process is the waiting. During the waiting period, you can feel very powerless, and it’s challenging to feel like the adoption process is moving along.
At Adoption & Beyond, we encourage hopeful adoptive families to use the waiting period to educate themselves. One of the courses we require is the Infant Care Course by Valerie Trumbower from the New Parent’s Academy. As a postpartum doula, Valerie works in the homes of new families immediately after they bring their babies home.
In my recent conversation with Valerie, we talk about what you can do while you have the time to prepare for your adoption placement. To learn about these tips, read the latest blog post.
Wishing you the best,
Steffany Aye