Table of Contents - Levelling up your Investing with JV Queen Mandy Branham
Dave Debeau [00:00:09] Hey, everyone, welcome to another episode of the Property Profits Real Estate podcast, this is Dave Debeau, And today, it's my pleasure to be talking with Manti Bradham all the way from Simcoe County, Ontario. How are you doing today?
Mandy Branham [00:00:24] Excellent. First day of spring always brings the spirits up around this area
Dave Debeau [00:00:29] that's looking bright and spring in your neck of the woods, that's for sure. That's great. And if you haven't heard of her, better listen to Mandy speak before. She's a very, very astute and accomplished real estate entrepreneur. They've been doing this for quite some time. She's also known as the JV queen. And seeing that I'm really focused on finding money partners and raising capital, I'm really interested in and ready to take on the whole thing. So very welcome to the program and to get started with. Why don't you tell us a little bit about how you got started in real estate investing in the first place and how you became the joint venture queen?
Mandy Branham [00:01:07] Absolutely. Thanks for having me. Thanks for watching. We got started because the way in twenty seven when the whole automotive industry went down, my husband and I thought we were doing really well. We was working overtime, we had the toys and then they took the overtime away. And then they took they went down to a shared work week and we were all of a sudden realizing that our wealth was all dependent on somebody else's, giving us the the right to work more or and so we needed to create our own financial security. So we put a second mortgage on our house and we bought our first duplex in two thousand and seven. And then we started to work harder on ourselves than we did on our job. We realized that we had a lot of motivation and we had a lot of extra energy. And instead of working overtime for somebody else, we turned that around and we started to work overtime on ourselves and we started to go to personal development stuff. And then we just said, how can we take more of a control of our financial future? And that went from their first property. We refinance that first property seven years later and we got into a coaching program and then just went what I would call very fast into into real estate. So we did a first couple flips on our own. And we did we did well. We still own those assets. We did a flip to ourselves. And I went to a mentor at the time and I said, like, how do I attract joint ventures? And he sat back and he said, Mandy, just keep doing what you're doing and people are watching. And so I realized that from the momentum that we were creating for ourselves, we were attracting people to come in and they were saying, hey, the next feeling fine like that, I want to invest with you. The next deal you find like that, I want to invest with you. So we really realized that it was a combination of how hard you are working on ourselves and our communication and our presence and our energy and as well as the real estate and the deals in our power team, in our systems and stuff. And then it just all kind of came together.
Dave Debeau [00:03:06] Well, that's that's very, very interesting. So first of all, so now what kind of strategy is your bread and butter when it comes to real estate investing? What is it that you do kind of day in, day out,
Mandy Branham [00:03:17] single family conversions to duplexes with a very much renovate to rent mentality? We make sure that we know what our tenant profile is. So we we don't like the tenant profile. Those are granite countertops, people that are going to be qualifying for this new first time buyers program. We're going for the tenants. You'll be plus that are really great people, but they're just not the ones that are going to be owning a home for various different reasons. But they are really respectful of our units and we keep them at a minimum price range. So we do see secondary sweet conversions with a tenant profile in mind.
Dave Debeau [00:03:55] That's very interesting. So a tatton profile, what kind of a person would that be typically with?
Mandy Branham [00:03:59] Tall, beautiful people, full time law clerk at the hospital and her husband, who has a I think he has some kind of disability. He's a full time bus driver. They're lovely people. And they wanted to sign a ten year lease. I've got full time at Home Depot and the wife works part time at Tim Horton's around her children's school schedule. They're never late on their rent. They just that's just who they are. So they have they have jobs. They have consistent jobs, but just not that next level up that's going to be able to get them that. But but I always encourage home ownership. I tell them I tell any of my tenants. The value that I add will be that if they want to talk how they can own their own home, I'd be happy to have a conversation.
Dave Debeau [00:04:42] Very, very interesting. So kind of lower middle class type folks. Good, good, solid people. But they're not making a lot of money. They're probably not
Mandy Branham [00:04:51] just. Yeah, some of them had some financial issues in the past. So maybe a divorce or just decisions that they made when they were younger and they're kind of cleaning that stuff up and then you kind of get a couple steps behind it. It's hard to be able to catch up. Yeah, they're just lovely.
Dave Debeau [00:05:09] OK, so I warn you ahead of time, Maddy, that would probably get all good off the questions, I said you had it, but a very, very curious because because you've got so much experience with joint ventures and you were asking that mentor in the first place, how do we find joint venture partners keep doing what you're doing? So, I mean, there are a lot of people out there that maybe they weren't as active as your husband, did you with with the number of deals growing. But they've got some deals. They've got some experience under their belt, but they're not attracting joint venture capital like like you did. So what are some of the steps or some maybe some little suggestions you give people about how to create that success aura around them that attracts people to be asking about their deals? Because that's that's huge.
Mandy Branham [00:05:57] Yeah. So I actually was standing in the living room one day and I was like, Larry, why me? What what are we doing here? Right. And I realized that there's I call them the four pillars to joint venture success. So a lot of and you realize that some people have one or two of these pillars, but they don't have all of them to be able to put together the whole the whole puzzle. So a lot of people have the deal. And that's that's the first pillar is to be able to have this deal that you can see a vision for, you know, where it's going to go. You can negotiate a good amount of money. You can negotiate good terms. Maybe it's vacant. Maybe it's 10, 20 thousand dollars under asking. However, that looks second one. Is the partner right. You've got to be able to track the partner. But what people kind of miss on that is that the partners aren't necessarily looking at the deal. They're looking at you. They're looking at how are you communicating? Are you listening to what this partners needs are? So people that are like, yeah, I've got these great student student rentals and I don't know why people aren't interested in them. I'm like, well, but did you ask them if they wanted a student rental? You might be assuming that they want cash flow in. This person's over. They're going like heck. I just got my kid out of university. The last thing I want is to own student rental because it was a headache when my kids. Right. There's all kinds of different stories. And so sometimes people are they're actually they're listening to themselves and they're not actually responding to what the partner might need. They're presuming that somebody wants something that maybe they don't. So so the other thing is, is so the second pillar is the partner, but how are you listening to them? And what you're offering to them is congruent to what they truly want. And then the third pillar is, is where contractors come in. So I believe contractors have they've thought the change of usage. They've got the the paint, the trim, the lipstick. They've got the conversion. They've got all those skills, OK? And some people, they have those skills, but they don't know how to communicate to a partner or they don't necessarily know how to find the deal or whatever. So keep in mind, we're at pillar number three. Pillar number four is the vision. OK, a lot of people can say, here's this great property and we're going to do this to it. But again, they have to be able to convey to this partner what the partner is looking for in how long they want to have it. This is a five year vision for me. This is where I see the property in five years. This is how I know the property is going to be there in five years. So it's finding the property. It's knowing that that property is what your partner is looking for. It's knowing that this is the kind of renovation and the confidence in saying that this is what we're going to do to the property. And then this is the vision for the property as to where we're going to be able to go with it. So it's really taking all of those pieces together and the confidence that you're able to to find the deal, find the partner, talk to the partner, convert the property and hold the property for that length of time that you so choose to be able to put it all together to say that's that's where we're going with the property. That's the vision. And you get people to buy into your whole vision. If they don't buy into the vision, you're thinking they're just going to buy into this great deal, but they don't know what your plan is for it, then you've you've left them at the start line and you kind of need to bring them with you the whole way.
Dave Debeau [00:09:08] So do you find that you're finding a lot of your joint venture partners through real estate clubs and and things like that? Or where where are they coming from? Because it sounds like they have a just about what real estate is all about it.
Mandy Branham [00:09:22] Yeah, I don't convert the unbelievers. I, I don't have time. I don't I mean, I love them. I think they're great people. And when they awaken to the belief system then then I'll have a conversation. But if somebody doesn't believe I love everybody where they are. Right. And and I'm not somebody to to change them. So you're right. I find the majority of my joint ventures, real estate investing groups. I have a lot of people have contacted me from podcasts, from webinars, from very different places that I go, because as you can tell, I am a real estate investor and people love to be attracted to me because I believe in and I'm confident and I don't get wavered very often. So another key thing, though, to be. What to say to people is how can you mitigate your risk? Like, what are my risks? And a lot of times investors focus on this glory and they pretend that the risks don't exist.
Dave Debeau [00:10:20] And I've made that mistake myself back in the day. So, yeah, it always bites you in the butt.
Mandy Branham [00:10:28] Right. And so you're almost telling somebody's best case scenario. But eyes wide open, here's worst case. But here's how we would mitigate all these different risks, which is why I do single family conversions, because I can easily tell somebody that if it doesn't work as a conversion, we can rent it Airbnb. We can convert it back to a single family. We could flip it right. And so somebody just goes, oh, we have options and are allowing them to have all these questions answered that they might not even be they don't even know what they don't know. So if you're answering questions that they don't even know to ask, they go, wow, like she's ahead of the game here. Yeah.
Dave Debeau [00:11:05] Very, very, very, very, very smart. Yes. That's that's excellent. So we kind of covered this a little bit, but. There's going to ask you about some of the biggest mistakes, but I think you probably answered that one. What's the biggest mistakes?
Mandy Branham [00:11:22] I do design a joint venture agreement, though. I look at people. I have a visionary who did a PhD in partnerships, and she certainly taught me a lot. But she said that there's two there's two ends of the spectrum when it comes to a partnership. There's the let's sign the legal document, which is the joint venture agreement, and then let's have this relationship. And there are almost two ends of the spectrum. And in a joint venture agreement, a joint venture partnership, you want to be here in the middle, you want to have the agreement, you want to have the relationship, but you kind of want to be able to stay here. And so for these lovely people, they taught me a very valuable lesson and I'll be ever grateful for them. We were really great friends. We had the relationship. I went to their house. We had wine at Christmas celebration. This is the best investments we ever made. And then it came to tax time. And my accountant was like, hey, we need those joint venture agreements signed. So I sent them a little note and they came back to say, we're not comfortable with this relationship anymore. Disclaimer the property values had gone up one hundred thousand dollars apiece. We bought to side by side duplexes, so I'd actually made two hundred thousand dollars in one year. One hundred thousand would have been my portion and one hundred thousand would have been theirs. In the end, they gave me about forty thousand and a super great learning lesson. So my lesson semi cost me sixty thousand, but at least it didn't cost me any money, but I still got paid, so it's still a happy ending. But that signed joint venture agreement is is essential.
Dave Debeau [00:12:54] Those lessons really stick, don't they. Yeah. Well thanks for sharing that. That's a that's a painful experience. But you know what? If it helps avoid somebody else, avoid making the same mistake, that's that's fantastic. So a different question for anybody. What would you consider to be your when it comes your superpower or your unfair advantage when it comes to your real estate investing business? What do you think is
Mandy Branham [00:13:21] my energy, my enthusiasm? I wake up thinking real estate. I go to sleep thinking real estate. My friends are in real estate. My master mind is real estate. And in it's it's competitive, but yet it's I'm very inspired by it. So my I'm going to help humanity by creating housing for humanity. My mark on the world is going to be how I leave the world change through through housing. And so it's like it's like so many visionaries of our world that they just wake up inspired to do what they're meant to do. I found that. So that's mine.
Dave Debeau [00:13:59] The what what would you suggest to somebody who wants to get better at that, who wants to up their energy, who wants to find their vision? They're into real estate, but they aren't quite as on fire as you might be. How how can the rest of us get that fire under our butts and
Mandy Branham [00:14:18] kick it up a notch? Honestly, I at a presentation, I always, always, always leave it with balance. OK, and you are working hard on the real estate part. So that's the industry knowledge, the market knowledge, what's going on? Financing prices, markets, things like that. And on this side of the teeter totter is work hard on yourself. So I meditate. I'm I have gratitude practices. We have we are I mastermind with my husband and family is important and our health is important and we're going to the gym. And so you can work just as hard on this. But if you don't have this side, if you don't have the balance in life for whatever that is, then you're you're out of whack. You're out of whack. Right. You could be right. That's the workaholic. You're super successful. But on the other side, your marriage is falling apart. Your health is going to hassle, your kids are out of control. And so it's not balanced. And so whatever that is, find the balance so that you can say, I love what I do, I do what I love, and I get paid beautifully to do it as well.
Dave Debeau [00:15:25] Said so it from all your years of experience, what would be a valuable and actionable tip that you could give people about becoming more successful as real estate investors?
Mandy Branham [00:15:38] Success leaves clues. OK, I think that a lot, and that's a common term, but people try and reinvent the wheel. They're like, I'm going to try and do a new thing that nobody's ever done. Hey, go for it. But you're kind of you're brazen, your own trail there. Whereas you know what? There's just so many successful people that have already done it. You don't have to say what market should I invest in? Because, gosh, Rain Canada does a beautiful top 10 city. So why question where to invest when there's the information for you? Why question what strategy works when you look around and go, huh? Who are my highest? Who are the investors that I would like to be like her, that I would follow what they're doing. And so I just find a lot of people are trying to create their own way and that's fine. Or they can just say, hey, I'm going to do what this person does because they're super successful. And that's the direction that I want to go. But if you don't want to and you want to stay in your little world, then that's fine. So that's my piece of advice is success. Leave clues, find some mentors that you really admire and do what they're doing.
Dave Debeau [00:16:41] Very, very good. Yes, that makes sense now many I know that you do some mentorships and speaking of following people, that people are watching this like to find out more about you.
Mandy Branham [00:16:52] Yeah, they do. Mandy Branom, dot com Facebook, Mandy Branom. I've got a couple of really cool groups that I share, really high level investing information around Canada so that people can come on board. And I am right now looking for people who are who are looking to be mentors, who want to follow what I am doing. Success leaves clues. I'd be happy to be able to share with some people that information.
Dave Debeau [00:17:18] Very good. Mandy, thank you very much for your time today on the Call. It flew by very quickly, that's for sure. So that means maybe sometime in the future Will we'll have to have you back to to get some more of that phenomenal knowledge and inspiration that you got. Thank you so much
Mandy Branham [00:17:33] so much, Dave.
Dave Debeau [00:17:35] 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 to review it. 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 Ticker.