Table of Contents - Julie Hoffman: From Massive Success To Massive Failure And Back Up Again!
Dave Debeau [00:00:08] Well, hey there, everyone, this is Dave Debeau with another episode of the Property Profits podcast today. It is my pleasure to have this lovely lady on the call. With me, Julie Hoffman, who is a phenomenally successful and experienced real estate investor. Her experience definitely not reflected in how young she looks. She's got a lot of deals under her belt, which is really, really impressive, actually. You've done over three hundred transactions. You've made it big. You've lost it all. You've recuperated. You've seen the good, the bad, the ugly of real estate investing. You've seen what it's like when it's great. You've seen what it's like when it's really crappy. And not only have you lived to tell the tale, but you're still doing it. So that's very, very impressive. Not only that, we're going to be focusing on what Julie does to raise capital, and she has raised a lot of it at fifty million dollars plus so far. And Julie, welcome to the show.
Julie Hoffman [00:01:10] Thanks, David. So good to be here. You are really one of my favorite people, and I love just being able to hang out with you. So being able to do this and hopefully help some other people at the same time, it's just right up my alley. By the time I was two thousand five thousand six, we had thirty six houses between Grand Prairie, Edison, Edmonton, see now Burt Sherwood Park. So we're primarily focused, of course, in Alberta and we were introduced to condo conversion. So that's where you buy an apartment building, you convert it to condos myself and pieces
Dave Debeau [00:01:44] make big bucks.
Julie Hoffman [00:01:45] It was insane. The amount of money that we made, we sold all of our houses, the condo conversions we would make anywhere from three hundred thousand seven hundred thousand dollars a building and they would sell in a month. Well, it was really fun. I'm like bonkers, crazy, bananas, fun, and I highly recommend it. I do like Quigley here. Well, but it was really a special time. We're like, all right, let's let this ride. Let's keep going. Let's do it again. Let's do it. Get the students as many times as we possibly can. About five more buildings going into the fall of two thousand and seven because our buyers went away. We had bought the buildings with basically the equivalent of a credit card, very expensive money because we had no intention of holding on to them and holding on to them or an additional four years. It was really intense. So we spent about eighteen months trying to save the properties and then another two, two and a half years fighting with each other. We were fighting, fighting, fighting, and then eventually I decided to stop fighting. It was like trying to save a dead horse that had been dead for two years. Right. And I decided to enter bankruptcy protection. By then. We had twenty two doors foreclosed on. Lost our houses like that we lived in. Yeah, yeah, it was just a terrible, terrible time and my husband and I needed a fresh start. He was able to keep his business, by the way, that was one of the one of the assets that we did not lose in the fallout. But we moved to Cloner. But that's when the real estate started back up because I ended up continuing to tell my story about. But it happened. So people were kind of come out of the woodwork who needed help. Yeah. And the cool thing about what I went through is I didn't find anybody who could help me. So I had to become the person who could help people like me in the situation that I was in. And anyway, I was able to acquire a whole bunch of properties, no money down, no bank qualify without that, because if people knew I understood what they were going through. Right. A very easy for me to talk to a motivated seller because I've been in their shoes and I'm so lucky to have gone through what I did because I've been able to save people from bankruptcy. I've been able to help people get into the market who have been told no and no and no by the banks and by their relatives and by their advisors. Pretty cool because, you know, there's just not a situation because of the magnitude of everything that we went through, that situation that we can handle. That's a blessing,
Dave Debeau [00:04:40] definitely, and is always turning lemons into lemonade. So what do you focus on primarily these days, Juli? What are you and Jeff?
Julie Hoffman [00:04:46] We do primarily right now, we're focused on flipping right now. I still do rent. We still have some buy and hold that we acquired basically for rent to own or lease options. Everything I've got I've since rebuilt another multi-million dollar real estate investment portfolio. I have use any of my own might have qualified for single. No.
Dave Debeau [00:05:08] Let's just talk a little bit about that. When did you first start raising capital for your deals?
Julie Hoffman [00:05:13] Well, I raise capital for deals starting way back in thousand or back then, I was really wanting to grow my real estate investment business and we were tapped out. And every investor happens to every day. People with the money don't need to go to seminars usually to learn how to do real estate. Usually people are looking for more. So we've got we got tapped out and I went there, I said, watch, thank you. And he said, well, how are you getting investors? I'm like, well, I'm just telling people all about my deal. So I was like, attacking people, stalking people, absolutely scaring people off. So embarrassing. I remember one time I hounded this guy, left him twenty voicemails. Now he's back with it is like a tape recorder. So I tried to tape for him and then I stopped calling him because I was like, I'm thinking maybe he's dead or something. I was not interested. So I stopped him at a Pizza Hut. And I remember ducking down my car so embarrassed because I'm like, oh, he's alive. Some of the other thing. Oh, gosh. So Darians like take sales training, eidetic, took sales training is absolutely amazing. Before I even took my first course before even to my first class, I raised thirty six thousand dollars from a dentist or and it was just more money than I'd ever seen.
Dave Debeau [00:06:42] So fast forward to now. What do you think after all this experience and all these years of raising capital, what do you think is kind of your unfair advantage when it comes to approaching, finding or getting investment partners you come on board with?
Julie Hoffman [00:06:57] I think my unfair advantage is that I go I work with people so quickly like I am three. How close are either close the money or I close the file. And I always remember that things change with time and circumstance. Somebody that's not yesterday. Today I say close the file by. But, you know, I leave a little wedge in the door.
Dave Debeau [00:07:19] It's not going to chase after money. You're not going to you're not going to leave twenty messages on their voicemail anymore.
Julie Hoffman [00:07:24] Yeah, I don't do that anymore. I, I know right away somebody's just kicking tires and I move on so quickly, you know, a lot of people, kind of a lot of trainers kind of have strategies where you say if you run somebody again and you say, oh no, you lost out on that deal decrease or I don't ever do stuff like that. I just you know, I always leave the door open and then I'll send stuff out like this. I do a podcast and coaching and you just never know if things change this time of circumstance. And I've had people who've said no, I'd say yes. Eighteen months later. Right. Yeah. Because you left the door,
Dave Debeau [00:08:01] you didn't burn the bridge there,
Julie Hoffman [00:08:03] so. And you got it. You got to be detached. Yeah. And you can't need video
Dave Debeau [00:08:10] like because I need the money, right? I need that particular person's cash.
Julie Hoffman [00:08:15] That's right.
Dave Debeau [00:08:16] So speaking of finding people, I know you're a very bubbly, outgoing person, that you're not shy. What are your best ways of finding new investors?
Julie Hoffman [00:08:29] Networking. Yeah, absolutely going to networking events. The second thing that I recommend, and I've got this whole like it's called Networking Street Smart networking handbook that you're all your folks will have access to for free if they're just. It's great to network, but you want to make it efficient, OK, I'm all about efficiency. I've got five kids now working now to make it the most efficient type of networking you can. My recommendation, what I did to accelerate my presence in Cologne, because that's a big, small town. I can't tell. It's a small town. I know that. And I know you're very well established there, which is, say, saying something. And I join a women's working group and I volunteered for the executive. That means it's extra work, it's volunteer work. But you get stage time and when you get stage time, then you are instead of talking about 50 people, one at a time, you're talking to 50 people at once. And the better you can get at that boy, it just gives you instant credibility. If you can speak in front of people, it takes a lot of practice. And as you know, Dave, I mean, it's it's huge.
Dave Debeau [00:09:43] Very, very smart. So it's not just networking. It's not just joining the Chamber of Commerce, joining the women's network, enjoying being joining whatever, take a leadership role within the organization so everybody there knows who you are. And you're not just one of the mass who's schmoozing with one on one with everybody.
Julie Hoffman [00:10:05] And don't do it from a place of I'm doing this to raise money, it from a genuine I want to help be part of something great. If you don't, people see right through that. It's also a great way to network as a leader because they you're then you're with other leaders, you know, and you want to surround yourself with like minded people. And if you're with other leaders, then they're probably influencers. And if they're influencers, they're probably going to recommend you. So like the reach, I'm reaching my arms.
Dave Debeau [00:10:33] So if somebody is watching this, listening to this and they are kind of like me back in the day and they're they're more on the shy side than bubbly and effusive and natural networkers, where would you suggest they start? What it would be like a safe place to start a network,
Julie Hoffman [00:10:51] somebody that the sky who wants network to meet people and raise money needs to change.
Dave Debeau [00:10:56] Yeah, so I was going to suggest the maybe Toastmasters would be a good place to start if you're if you really, really, really shy and especially if you're afraid of speaking in public. Those messages. Great. Have you had experience with Toastmasters?
Julie Hoffman [00:11:10] I have had experience with Toastmasters and I love everybody who's ever been in Toastmasters. I really admire their they've got a format so they can make. Yeah, you're exactly right. They can order.
Dave Debeau [00:11:23] What I like about it is for the wallflowers out there, the really shy people. It's amazing the transformation I've seen in people and just a few short months because they learn a few tricks of the trade, so to speak, when it comes to public speaking that they can apply. And then the. They blossom. It's really, really amazing. So if you're wondering where to start Toastmasters, I would highly recommend Saulnier training is awesome for sale stuff. I'm familiar with that, too.
Julie Hoffman [00:11:51] By the way, everybody can always be networking, and that is a great listener. Great question. And that's all related to real estate, but ask somebody what they do and you know that they've been working for the city of Colmore for the past 18 years. Well, you know, they probably have somewhere to stay in their job. They probably like their job and probably qualify for financing. And that's
Dave Debeau [00:12:17] probably a lot of other people in a similar position,
Julie Hoffman [00:12:20] a lot of other people a exactly as birds of a feather. So, yeah, it's great. I think I got off topic there, Dave, that I
Dave Debeau [00:12:29] would never think
Julie Hoffman [00:12:32] about women in business, that the Chamber of Commerce in your town is great. Toastmasters is great network not only to learn, but network events like personal growth events, Tony Robbins events, hardback events, millionaire minds, all those people get people in in a room together. Some real magic can happen.
Dave Debeau [00:12:52] All right. Let's switch gears a little bit here, Julie. So let's see. We've got our networking, let's say, might even have an investor to under your belt. What are your suggestions for getting referrals? How do you how do you get referrals? Because I understand you're pretty good at that.
Julie Hoffman [00:13:05] But I'm always mentioning what I what I do, how I help people. I like to tell stories about how I helped people because then they can relate. And if they can't relate, then maybe they're talking to somebody two weeks from now. That's in the same situation I was talking about. And they say, hey, you should go talk to this lady. So that kind of thing. I let it happen quite organically. But the other thing that I do mention a lot I like to mention often is I'll say, listen, if you send me some somebody and they end up turning into a business, whether it be a buyer or an investor, I usually pay about a thousand bucks for Ferral. It just depends on how much is generated. So keep that. And that's a really not could she not like make things awkward way to to let people know,
Dave Debeau [00:13:55] by the way, taxes. I'm not a lawyer nor an accountant nor a securities person. Yeah. And that my general knowledge of things, a little anecdotal, indirect experience from from other folks are these things. What are your thoughts on this and what do you do to stay on the good side of the not so friendly Securities Commission
Julie Hoffman [00:14:19] when it comes time to structure every deal so that my investor is on title so they are entitled to secure it as a as is or they are the title owner or they are on title as a mortgage. And I don't you know, I don't have a big conglomerate deal. I still I'm still a a one offs. But, you know, sometimes a off is five hundred thousand dollars, sometimes a one off three hundred thousand dollars. I don't mix a lot of investors typically unless I can secure everybody on a title like Slate. So that is one way to keep on the good side because then it's it's an investment in a rather than a paper asset in a hard asset. I've never had a problem with the Securities Commission, you know, knock on wood. And I think it's probably because every every time somebody spend it on real estate, that is that's big. And when it comes to, say, Olimpio trusts or PEs, you can't do our fees without following everything to the letter. Yeah. And I know what I want to, but there are some really clever things you can do with our space now that I couldn't do ten years ago, that it's pretty exciting. It saves a huge amount of money in legal fees, probably of thirty or thirty five minute talk in and of itself. You and I can tell you later, if you like the you know about syndication.
Dave Debeau [00:15:45] I know of it. I haven't personally done it, but yeah,
Julie Hoffman [00:15:48] it's incredibly powerful.
Dave Debeau [00:15:50] We talking about with our funds,
Julie Hoffman [00:15:53] with RRSP funds and you can mix, I mean you can mix cash into there if you want. And the point is you keep people secured on title and that is really the safest place to be when it comes to investments. It's the Securities Commission secure and they've got to keep their money secure enough and secure your investors is absolutely best as possible.
Dave Debeau [00:16:12] Makes sense. All right. So five hundred thousand dollar question for jewelry. So if heaven forbid. But if you were having to start all over again from scratch. Yeah. None of your current investors.
Julie Hoffman [00:16:25] Yeah.
Dave Debeau [00:16:26] No money, no portfolio. And you had to raise five hundred thousand dollars in the next 90 days. Yes. Knowing what you know now, what would you do.
Julie Hoffman [00:16:36] I give away the lion's share to the partner. I do it 90 days. I can raise money pretty fast. I can not everybody can. But I would if I really needed to get it done in ninety five structure. So my deal partner gets 90 percent of the profit and I get ten. Got to get it done and then I move on to the next 90 days and maybe I'd structure it 80, 20 and then the next 90 days. So I'm at a 50 50 position, and then by that time, I have already established another track record right now, and I would also emphasize when I'm selling to the investor that we've been doing in sales now, everybody surprise him and say, oh, yeah, you're in sales if you are in real estate investments. And it is so important to be able to let people know what's in it for them. I always recommend people get started. It's better to get started because your experience is what's really valuable, not the deal.
Dave Debeau [00:17:35] We're going to wrap things up here. So do you have any favorite books or resources that you would recommend when it comes to, well, sales or raising capital or networking?
Julie Hoffman [00:17:47] Lekman. I would recommend from the grand book any books by her on the ground, he's fantastic might also recommend that Khordad, if you haven't already read that, I recommend runestone for Canadian investors with that book.
Dave Debeau [00:18:06] Yeah, I think so, yeah. Well well, one last question here for you. So if people who are watching this or listening to this would like to find out more information about you, what should they do? And I think you you you gave a little hint about perhaps even giving folks some suggestions on how to network more effectively. Got a reporter book or something on that site?
Julie Hoffman [00:18:29] Yes, I have. Basically, it's just a series of emails that will come to you. You can find on my website called w w that street smarts devah dot com and it's just free tools. Click on that and you will get a series of real estate investments, although that I hope will help you get started or enhance your existing real estate investment.
Dave Debeau [00:18:53] Awesome. There you have it. Street smart. Diva Dotcom as Julie Hoffman, a very, very astute, experienced real estate entrepreneur and a phenomenal person, as you can tell already. So, Julie Rovner, wrap things up. Any last words or anything else that you shout out that you'd like to have as we wrap things up?
Julie Hoffman [00:19:14] I'd just like to say, if I can do it, you can do it, but I'm one I have five kids. There's really and I lost everything and we rebuilt. There's just no excuse. And I don't mean that in a harsh way and I mean that in an encouraging way. I want you to be able to listen and say she can go through all that. And kind of have the odds stacked against her. Then I can do it, too, and you feel like you can do it then? Well, you're halfway there.
Dave Debeau [00:19:41] Exactly. There you go. I highly recommend it. Check out. But Julie has to offer street smarts. Diva dot com. Right.
Julie Hoffman [00:19:51] That's who I am. Thanks a lot, Dave.
Dave Debeau [00:19:53] Thank you. Take care. Well, thanks very much for checking out the property profits podcast. And you like what we're doing here. Please head on over to iTunes, subscribe read us and leave us a review. He very, very much appreciated. And if you're looking to create a regular flow of inbound investor inquiries about your real estate deals, then I invite you to attend one of my upcoming live online demonstrations. And you can check that out at Investor Attraction Demo Dotcom. Take care.