Raising your first million can be tough, but with the right track record and a healthy network of investors, you’ll get to the finish line in good time. This is a lesson that Joe Robert learned during his years in the game and he joins us today to share more about his journey. In this episode, we talk to Joe about the many sides of real estate he is involved in, his approach to raising capital, the tax benefits of being a Puerto Rico resident, and a whole lot more!
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Joe started real estate in 2001 at the age of 19 and has invested in over 100 residential properties and 40 commercial properties since. He is also involved in note investing, having acquired over 2,800 residential mortgages over eight years. Our discussion with Joe begins with a story about how he got into the game, and he highlights the value of his experience in the contracting industry, his first purchase, and the challenges involved. He talks about the lessons he learned in his early 20s about being over-leveraged and then speaks to his approach to raising involving networking, having a good track record, and working with fewer investors who contribute larger sums of capital. After talking about how Joe wants to start his own family office, we move onto the tax benefits of residency in Puerto Rico, and he explains how he is exploiting these in his business. Wrapping up for the day, we talk to Joe about some of his favorite software, habits for self-discipline, and views on where real estate is heading in the next few months. Be sure to tune in to this episode for a ton of value provided by today’s great guest.
Key Points From This Episode:
- An overview of Joe’s education and how he got into real estate at the age of 19.
- What real estate Joe was involved in during his 20s and the lessons he learned about debt.
- Investing in the Philadelphia area around 2010 and hearing about note investing.
- How Joe did his first raise of one million dollars and the biggest challenges he faced.
- The value of having previous experience for getting investors to trust you.
- A system for raising money more easily by partnering with family offices
- How deals are structured between Joe and his ‘whale’ partners.
- The other sides of real estate Joe is involved in: Mortgage notes, being an LP, and more.
- A deep dive into the tax benefits of living in Puerto Rico and how Joe is exploiting these.
- One of the hardest parts of Joe’s syndication journey; acquiring a Puerto Rico deal.
- Tips from Joe for how to avoid a downturn by conservatively underwriting deals.
- Predictions for real estate in the coming years considering quantitative easing.
- Lessons learned about over-leverage that have taught Joe his self-discipline.
- Morning habits of Joe’s that keep him disciplined: Slaying dragons early.
- How software has improved Joe’s business and which apps are his favorite.
- Joe’s best source for meeting new investors and why he loves in-person meetings.
- The number-one contributor to Joe’s success and how he likes to give back.
[bctt tweet=”To become a better real estate asset manager, I think it’s better to be knowledgeable about how things work on the construction side. — Joe Robert” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Joe Robert
Joe grew up in the Philadelphia suburbs and has been a lifelong entrepreneur who started when it wasn’t cool. His start in the contracting industry as a teenager led him to start acquiring real estate at the age of 19, back in 2001. Over the last 19 years, he has invested in over 100 residential properties and 40 commercial properties. In 2011, one of his private investors led him to note investing, where he bought non-performing mortgages from hedge funds and banks. Joe got in at the right time and acquired over 2800 residential mortgages over the course of 8 years. His success in note investing created income and wealth for his investors, partners, and founders. Throughout the last decade, his fascination with minimizing his tax bill led the partners to start a retirement plan back in 2013 for his note company. The plan would ultimately invest in a loan portfolio and return great profits. From there he established multiple retirement accounts over the years and used them to diversify into alternative assets and continues to beat out the returns of Wall Street. In 2014, he decided to make the move to Puerto Rico and participate in certain tax benefits known as Act 22. He spent over 4 years there and was able to sell off his loan investment portfolio at the right time to maximize his gains. As all entrepreneurs, Joe has a desire to constantly learn and seek out trends. While residing in Puerto Rico he met some great people in the blockchain industry. These relationships started his investment into blockchain startups and crypto. He continues to expand his knowledge and investments into the sector.
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