One of the big real estate rookie mistakes is to turn into a Walmart shopper as you build your team. It is easy to see a coach, lawyer, or property manager as an expense and choose to go with someone less experienced—or even elect to do the job yourself. But today’s guest can attest to the fact that a quality team is an investment that can save you millions in the long run.
Damion Lupo is a serial entrepreneur with a ‘think big’ mentality. In the last 25 years, he’s founded more than 30 companies in a number of industries including insurance, precious metals, venture capital, financial consulting and real estate. Damion is also a black belt in three different disciplines and the architect of Yokido, his very own martial art.
Damion’s personal philosophy centers around self-responsibility and a conviction that candor, growth and a big vision provide the only path to freedom. His commitment to these values led to the creation of Total Control Financial, a FinTech that seeks to reinvent financial control and empower Main Street with the tools of financial transformation. Today Damion discusses his first multifamily deal, a 119-unit property in Memphis that resulted in a $2M loss, and the lessons he learned from the experience. He shares the transformational power of failure, the importance of building a team you can trust, and the extraordinary value of a mentor. Learn how Damion’s shift from consumer to contributor had a revolutionary impact on his life.
Key Takeaways
[4:03] How Damion got into real estate
- ‘Tripped’ into it
- Read Rich Dad, Poor Dad
- Attended seminar for additional resources
- Attracted to big-time cashflow potential
- Quit insurance to pursue real estate
[5:44] Damion’s first steps in real estate
- Bought house with Visa card
- Planned to sell on payments after remodel
- Strategies in place to pursue more properties, but wasn’t taking action
- Failure to return phone calls almost led to bankruptcy
[7:18] How Damion was able to avoid bankruptcy
- Gained momentum by purchasing eight houses in month
- Purchased another 50 houses over next year (AZ, AL)
[7:58] How Damion got stretched too thin early in his real estate career
- Despite success, decided to try something different
- Started high-end rehabs all over country
- No team in place to help
- Lost track of projects
- Not paying attention to numbers
- Let ego take over (want more and more)
[9:35] The lessons Damion learned from his first multifamily deal (119-unit in Memphis)
- If you can’t be there, send team member with ‘massive integrity’
- Listen to the numbers, get out if necessary
- Stress test your team before going all-in
- Don’t delegate too much, too soon
[14:31] What Damion could have done differently on the Memphis deal
- Choose experienced partner
- Move to site or have partner on-site
- Invest in an experienced team, especially project manager
- Leverage experience of mentors (make new mistakes)
[19:50] The value of a coach/ mentor
- Damion lost $5M over two years after firing coach
- Powerful to have people ‘call you on your shit’
- Don’t let ego get in the way of listening
- Helps you be methodical (rather than emotional)
- Offers perspective, intuition to pass on bad deals
[24:48] Damion’s advice around leading a team
- Clarify expectations up front
- Have team share back what was heard in own words
[25:52] How Damion reinvented himself after hitting rock bottom
- Equated net worth with self-worth (identity tied to money)
- Learned that impact must be driver, wealth as side effect
- Spent two years making shift from consumer to contributor
- Teaching (martial arts, financial literacy) allows him to give, be present
- People with contributing mentality happier, more successful
- Can’t think your way to your Om, must do
[32:45] How dark times set you up for success and fulfillment
- Must experience trauma to learn you are not in control
- Recognize difference between success and fulfillment
- Damion finds fulfillment in seeing people get out of ‘financial bondage’
Connect with Damion Lupo
Resources
Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki
The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich by Tim Ferriss
Financial Freedom Summit Wait List
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
the harder you squeeze a handful of sand the less you get- Budhist saying