Business
If you want to know how to succeed at real estate, understand that becoming an investor doesn't end with acquiring a license. From there, you'd have to go through a lot of learning curves. You can't just dive headfirst without planning smartly and not knowing what you can bring to the table. With the fast-paced real estate world, you won't survive without having a firm grasp of the basics and establishing professional relationships. In this episode, Dom Santaniello from Naples Home Buyers & Naples Realty Group joins us to speak about how to succeed at real estate. He shares how being overly cautious about deals held him back in the beginning and how he got over this dilemma. Dom also discusses how they found success through the BRRRR method and explains their portfolio. Most importantly, he imparts invaluable advice to real estate beginners. Tune in to the full episode to learn how to succeed at real estate and attain tremendous growth! 3 Reasons Why You Should Listen to This Episode: Understand how to succeed at real estate and how the BRRRR model can help. Find out why being direct to the point will help you in the early stages of your real estate career. Learn the value of leveraging professional resources instead of doing the work yourself. Resources Connect with Brandon: Website | Facebook | LinkedIn | Instagram Looking for credit repair done-for-you service? Check out Credit Repair Mobile! Apply to be part of an exclusive mastermind group at Credit Counsel Elite! Action Driven by Brandon Elliott Connect with Dom: Email | LinkedIn | Instagram Naples Home Buyers Naples Realty Group Episode Highlights [01:38] Dom’s Background Dom was a pipeline engineer for a Fortune 500 company for seven years. He decided that being an engineer wasn't for him, so he acquired a real estate license. Dom started two companies with his business partner, Luke Giusto: Naples Realty Group and Naples Home Buyers. Naples Realty Group is a brokerage firm, while Naples Home Buyers is a fix and flip company. Dom wants to share the importance of taking action and how "less is more" allows you to scale. [04:11] Why Dom Gravitated Towards Real Estate Dom had no intention of being a serious investor. His initial purpose in getting a real estate license was to start making money on the side. At the time, it wasn't sustainable for him to live in a single-family house. He realized he could get into multifamilies instead for a 3.5% down and live for free. While researching, he ended up experiencing analysis paralysis. Dom only started going all-in after meeting the right people and gaining motivation. [06:08] The Pivotal Point for Dom Dom used to be very cautious when pursuing deals. His risk tolerance improved thanks to his more decisive business partner. There wasn't a massive catalyst or event that pivoted him to move forward. It was a compounding effect from missing out on deals. [08:17] How to Succeed at Real Estate: Looking for Deals Currently, the focus of their deals is within one hour of home because of the availability of resources. You’ll find that there’s a surplus of deals in an area once you figure out the market. Dom: "Before, we thought it was impossible to raise money. And then once we kind of figured that element out and met the right resources, we're able to not worry about that piece and really just focus on the deals where, as we know—that's the whole game." [09:44] Dom’s First Projects Dom did his first three projects by himself. All other projects afterward have been with a partner. His partner runs the rehab side of the business, while Dom handles the back end. Part of knowing how to succeed at real estate is doing these two correctly. Dom shares that he constantly got outbid on his first projects because he was unrealistically conservative. After realizing cautiousness isn't the way to go, he started aggressively networking with other agents. Tune in to the full episode to get a vivid look at the numbers on Dom’s first projects! [13:38] Leaving Self-Management and Using the BRRRR Model Dom and his partner don’t do self-management anymore. Instead, they moved their portfolio to a third party. Using the BRRRR model, they buy distressed properties, stabilize them, add value, and refinance them. Then, they roll them over to the property manager at a discounted rate so they don’t have to deal with rent collection and accounting. Cutbacks and maintenance are almost zero after undergoing this process. Opting for a light value add makes it harder to hit LTV and get the money out. [16:43] On Appraisals Know that the value of the property will also depend on the appraisal of the bank. If you want to know how to succeed at real estate, you need to build and leverage relationships. There was only one time Dom had an appraisal come in low. Still, they broke even as the other refi (refinancing) at the time came in high. You still make a solid asset even with a 5% or 10% appraisal. [20:01] The Value of Their Tenants For Dom and his team, the value of being able to put their own tenants in is game-changing. Their average net profit per door is between 500 to 650 thousand. It's double or triple what the standard is. Their tenants are either six-figure earners or around that income level. The “less is more” mentality started with Dom bringing his all-around engineering role to examine another business. [21:20] Less is More Doubling the portfolio with higher-touch stuff is like maintaining something that can only bring you down. It’s best to look at the properties in the neighborhood instead of relying on a spreadsheet. [24:48] Advice for How to Succeed at Real Estate As you’re learning how to succeed at real estate, you have to think outside the box. Dom found that cutting to the chase and showing how he can provide value is the best strategy to reach successful people. As a licensed real estate agent, you have to invest either time or money. People in the real estate business are hustlers. Following Dom’s strategy will help you cultivate relationships in the early stages. Dom: “My thing is, how do I provide tremendous value to this person for as little time as possible?” [30:04] Some Learning Curves for Dom Initially, Dom spent a lot of money and time in marketing. He mistakenly thought that if you spend money, you’ll automatically get leads. He later learned the power of building a brand first and foremost. So, they decided to go all-in when COVID hit. During COVID, they've built their brand quickly, grew their agent rosters, and have had deals getting brought to them. [33:57] Getting Attached to a Project Dom made two critical mistakes when he started working in real estate: overly remodeling a property and doing the work himself. You lose so much growth by focusing on the little things and doing the work by yourself. Another piece of advice on how to succeed at real estate: learn how to leverage professional resources. Dom: “Do you wait until you have a 100 unit, seven-figure machine and hand it off to someone you don't know? Or do you start with one duplex and lose 100 bucks a month? So right now, paradigm shift, the biggest mistake was keeping everything in the house under control.” You might lose money initially when you bid out contractors to do the job. However, you’ll save money and time in the long run. You can speed through for the next flips because you already formed relationships. [39:52] Final Takeaways Dom disagrees with quitting your job and jumping into real estate — or any other venture — immediately. Remember, success will not happen overnight. You have to engineer your exit strategy and actions smartly because your credit, savings, and reputation are all on the line. All it takes is creative financing to put yourself two years ahead. It's life-changing once you get to leverage and sell a property from a zero-down situation. [46:01] What’s Next for Dom and His Team Their goals for the next year: 20+ flips, 40+ wholesales, 20+ new BRRRR units, and 20+ buy-and-holds. The businesses went from being just him and his business partner to hiring remote part-time and full-time workers. They’re huge on networking and aim to provide value to other businesses. About Dom Dom Santaniello is a licensed real estate broker and the co-owner of Naples Home Buyers and Naples Realty Group. Dom is an experienced real estate landlord and investor. Specifically, he is the VP of Acquisitions & Sales at Naples Home Buyers where he focuses on business development, lead generation, and project acquisitions. Meanwhile, he specializes in representing investors as the Managing Broker of Naples Realty Group. Since 2020, Dom and his business partner have closed more than 50 deals with a diverse project portfolio. Dom brings his unique perspective to real estate from his strong analytical, financial, and sales foundation. Before being a real estate broker, he worked as a gas pipeline engineer for Kinder Morgan. If you wish to connect with Dom, you may send him an email directly at dom@naples-group.com. You can also reach out to him on LinkedIn and Instagram or visit Naples Home Buyers and Naples Realty Group. Enjoyed this Episode? If you did, don’t forget to subscribe and share it with your friends! Post a review and share it! If you enjoyed tuning in on the show, we’d appreciate your review. You can also share this episode with your friends and family, so they can learn more about how to succeed at real estate. Have any questions? You can connect with me on Facebook, LinkedIn, and Instagram. Thank you for tuning in! For more updates, visit my website, YouTube channel, or tune in on Apple Podcasts. To achieving financial freedom, Brandon Youtube Description If you want to know how to succeed at real estate, understand that becoming an investor doesn't end with acquiring a license. From there, you'd have to go through a lot of learning curves. You can't just dive headfirst without planning smartly and not knowing what you can bring to the table. With the fast-paced real estate world, you won't survive without having a firm grasp of the basics and establishing professional relationships. In this episode, Dom Santaniello from Naples Home Buyers & Naples Realty Group joins us to speak about how to succeed at real estate. He shares how being overly cautious about deals held him back in the beginning and how he got over this dilemma. Dom also discusses how they found success through the BRRRR method and discusses their portfolio. Most importantly, he imparts invaluable advice to real estate beginners. Tune in to the full episode to learn how to succeed at real estate and attain tremendous growth! Connect with Brandon Facebook: https://www.facebook.com/brandonelliottinvestor LinkedIn: https://www.linkedin.com/in/brandon-elliott-6b1643148/ Instagram: https://www.instagram.com/brandonelliottinvestments/ Website: https://www.brandonelliottinvestments.com/podcast Apple Podcasts: https://podcasts.apple.com/us/podcast/ready-set-go-real-estate-investing-podcast/id1341397059?mt=2 Looking for credit repair done-for-you service? Check out Credit Repair Mobile: https://creditrepairmobile.com/ Apply to be part of an exclusive mastermind group at Credit Counsel Elite: https://www.creditcounselelite.com/ Action Driven Book: https://www.amazon.com/Action-Driven-brandon-Elliott/dp/1978280831 Connect with Dom Email: mailto:dom@naples-group.com LinkedIn: https://www.linkedin.com/in/domsantaniello/ Instagram: https://www.linkedin.com/in/domsantaniello/ Naples Home Buyers: https://www.naples-group.com/ Naples Realty Group: http://www.naplesrealtyma.com/