Table of Contents - Real Estate + Pocasting = JVs with Jacob Ayers
Dave Debeau [00:00:09] Well, hey there, everyone, this is Dave Debeau with another episode of the Property Profits Real Estate podcast. Jacob, please do not try to say that three times in real quickly. It doesn't work very well. But my special guest today is Jacob IREs, calling in all the way from beautiful Houston, Texas. We were just talking about barbecue in Texas and all things Texas fantastic state. And Jacob is a professional real estate investor. As you can tell by looking at him. He's a pretty young guy. He's done some amazing stuff in a short period of time. And he's also a very prolific podcast for himself. So, Jacob, welcome to the call. How are you doing?
Jacob Ayers [00:00:50] I'm doing well. Thanks so much for having me. Excited to be here.
Dave Debeau [00:00:53] Well, I'm excited to have you, my friend. So tell us a little bit about what got you started in the whole real estate game in the first place.
Jacob Ayers [00:01:00] Yeah, well, you know, that's an interesting question, I guess. Kind of take you back for a minute, Dave. I got started investing when I was about twenty four, twenty five years old as a recent college graduate, sit in my cubicle in my engineering day job, kind of thinking about my next step. And I realized at that point in my life I had like a early mid-life crisis, if you will. I didn't know what to do next. So this was kind of the end of my blueprint. And that blueprint was to go to school, get a good education, get a good job, study math or science and eventually find yourself in the workplace. And that's what I did. But there is no next step for me. The next milestone I could see was like looking down the road and retirement in 40 years. I was like, well, you got to do something else, right? So I started basically shuffling cubicles.
Dave Debeau [00:01:45] Is that what was looking like?
Jacob Ayers [00:01:46] That's exactly what it was. And, you know, while I really enjoyed my work and I still do to this day, I just knew there was something else I could be doing with my time. So it's time I was really interested in personal finance investing, even though I had no idea about any of that stuff. And so I started down this rabbit hole and I remember in twenty fourteen I listen to my very first podcast, never heard of a podcast, didn't know what it was, but stumble across the app on my phone and find this awesome podcast. It just resonated with me. And from there it's just like a rabbit hole of information. I started consuming and consuming material and content books and podcast just like this one, and eventually took action, pulled the trigger. But my very first rental property at the age of twenty five, I believe, and just have been doing that ever since. So it's been a lot of fun.
Dave Debeau [00:02:31] So what kind of did you start with a single family home or what kind of property did you get started with.
Jacob Ayers [00:02:35] Yeah, I bought a single family home. It was twenty five thousand dollars in my home market. I like to throw that out there because it's a little bit of a shock factor. People around the country are probably thinking like, wow, twenty five thousand dollars does not even exist. I can tell you it does. It was rent ready even. It wasn't in the slums. It wasn't in the hood. It was a nice property. And yeah. So it was a really big risk at the time. It was like one of these like wasn't really sure whether this was. What I wanted to do was just an idea on a podcast I heard up until this point. And so I pulled the trigger, bought the property, learned a lot of things just from that one deal, learned a lot about what not to do, learn things, how to do them. And it has been a guinea pig. And I just recently sold it very first profit I ever sold. I held on to it for about four years and learned a lot of lessons with it. So that was the main purpose with that bill.
Dave Debeau [00:03:24] What do you focus on primarily these days
Jacob Ayers [00:03:27] by and hold small multi families? So the reason I like those are so traditionally have been doing anywhere from two to four units and scaling into smaller apartment deals now. So I did. The next is a duplex and another duplex and a triplex and so on. So those were really fruitful for me. And the reason I liked doing the buy and hold, there's so many ways you can do real estate investing is you and your audience members know, right? You can buy and hold. You can fix and flip, you can wholesale deals. You can do a myriad of different things, investing in role in all kinds of different things. But the reason that buy and hold kind of stuck with me and resonated with me is two things. You can create wealth over the long term and generate passive income in the near term. And those two things combined are a really powerful thing to allow you to create that generational wealth and build financial freedom in the near term, allowing you to achieve that point that I call financial freedom, allowing you to essentially be able to retire from your day job, which was a real big point in my life.
Dave Debeau [00:04:31] Yes. Yes. It's the whole rich dad. Poor dad philosophy. Right. Getting enough passive income, going to be able to support yourself and not have to punch a clock if you don't want it.
Jacob Ayers [00:04:42] Absolutely. That's what it's all about.
Dave Debeau [00:04:44] So have you been primarily self-financing your deals? You work with investor partners. How do you how do you typically buy your property these days? Now you're getting into bigger deals.
Jacob Ayers [00:04:54] Yeah, right. So up to this point, I'd always self finance my own deals, save up a chunk of money, get a conventional loan, put the down payment down. And that was great. But now scaling up. It's getting to the point of starting to syndicate deals and raise capital from private investors. Because there's only so much you can do, as you know, Dave, with your own money, right? No matter how much money you have, you're eventually going to run out of your own money to invest in real estate. So that's kind of that critical threshold point where you switch from doing your own. Dill's throwing money to raising private capital from other people.
Dave Debeau [00:05:24] Yeah. Yeah. Well, you've been in the game for a while now and you've definitely gained a lot of indirect experience from interviewing hundreds of people on your podcast. I took a look. I think you're at over two hundred and fifty episodes so far, so you're definitely done a lot more than I have. I think I'm at about 50 episodes so far.
Jacob Ayers [00:05:43] So kudos. A, it's a great endeavor, right?
Dave Debeau [00:05:46] Yeah. So tell me, knowing what you know now, if you were rewinding, you're going back to your younger not that much on yourself. Twenty five, whatever it was, what he bought that first property. Right. What, if anything, would you do differently.
Jacob Ayers [00:06:00] I would start bigger, not necessarily with a transaction but with the mindset. So, you know, you can go out and get started by a small deal, by a duplex, get your feet wet, whatever that looks like for you, but always have that vision in that skill in the back of your mind to to get big and do things bigger, quicker. And that's what I wish I would have done a little quicker, you know, rather than messing around with duplexes and try Plex, because I wish I would have kind of scaled up a little bit faster than I have. And so, you know, it's always easy to say hindsight 20, 20, what you would have done, but that's what I would have done differently.
Dave Debeau [00:06:33] All right. Yeah, I personally, I think I think your trajectory, the way that you've done is probably perfect. Right. Because you make your mistakes on the small deals. You you learn ideal of and toilets and then you get into the bigger deals and and you just got a lot more credibility, especially when you start looking for joint venture partners or for syndicating deals because you're not trying to go right out of the gate with a big deal first.
Jacob Ayers [00:06:57] Yeah, that is a good point. Yeah, I agree with you there.
Dave Debeau [00:07:00] But you're from Texas and everybody in Texas says bigger is better than no.
Jacob Ayers [00:07:03] The motto. Right.
Dave Debeau [00:07:06] Excellent. Excellent that. All right. So, Jacob, you've been around this for a while. You've been doing lots of podcasts. What are some of the biggest mistakes you see other people making when it comes to getting involved in real estate investing?
Jacob Ayers [00:07:19] I say I think I see a lot of people not taking action and not actually doing something. So you see a lot of people kind of stuck in this analysis. Paralysis face, right. Like analyzing bills or, you know, going to meet ups after meet ups, after conference after conference and never taking like that. That action, you know, really putting what they've learned and what they've accumulated and knowledge to use. And, you know, I see a lot of people sitting around who are very capable of going out and doing they're still just waiting on everything to line up just perfectly. In all reality, we know that's not how things work. Everything's not going to just line up. So I see a lot of people doing that. Just maybe it's that fear, maybe it's that hesitation which, you know, those are common things and everybody experiences those.
Dave Debeau [00:08:04] Well, you know what, my friend? I've been teaching and training in the whole real estate world for quite a few years now. And I've got to tip my hat to you, because some of the worst people, I see it getting stuck in analysis paralysis are the smart guys like you that are engineers and and financial type people and numbers and and those kind of folks. I quite often see that those are the folks that really, really get stuck in the minutia and don't get started. So did you have any internal challenges with that just because of your. Your educational background, your professional background, anything like that?
Jacob Ayers [00:08:42] Yeah, sure. I certainly appreciate those kind words. I don't know if they're completely true, but yeah, I think I completely agree with you that a lot of people who are numbers focused, really drilled down and focus on those numbers. And, yeah, it's a huge part of it. But I think one thing you've got to focus on is just that mindset of like, why are you doing this? What's driving you? And if you can tap into something deep there, I think that will motivate you to really take action. And to me, it came down to mindset, having that abundance mindset, having that drive to build something for yourself. That desire kind of is really what pushed me over that cliff, if you will.
Dave Debeau [00:09:17] So what was it, if you don't mind sharing, Jacob? It was really that because I've just been talking about this, the importance of your why dialing in your why really figuring out what the heck you're doing this for, because if it's just to make a bunch of money, then as soon as the going gets tough, people are going to fall back into their comfort zone. But if they really have a deeper reason why they want to become financially independent, why they want to become professional real estate investors, that's going to carry them through and they'll figure it out no matter what obstacles come up in their path, which always happens. So how did you, as a young guy, really dial into your wife?
Jacob Ayers [00:09:57] Yes, I'd have to do a little bit of self reflection, but, you know, I just always thought of myself as capable as, you know, envisioning myself being really successful. And, you know, I thought that going to school and getting a good education was the path to that. And I realized what that led me to and as well as a great big, comfortable life, I just didn't feel completely fulfilled. So I think it was just one of those things to prove to myself that I'm capable of something more. And, you know, I've always felt like a strong urge to, you know, provide for a future family one day and help others and give back. And I knew I couldn't in my current state. So that was kind of one of the reasons to got me started. And yeah, I think for everybody it's going to be different. But just finding, you know, that reason why really tapping into it, being clear on what that is, that will help motivate you and keep driving you because nothing worth doing is really going to be that easy. And you've got to have something that's going to drive you to make you kind of wake up every day and tackle those problems because they're going to come at you.
Dave Debeau [00:10:59] Oh, most definitely. And again, I'm just so impressed because you do all this and you figure this out at age 20 for a lot of people, you know, they're in their 30s, 40s, 50s, 60s and beyond before they really dialed that in. So good on you for that. Now, we've got about five minutes left in our interview. And I want to switch gears and talk about something completely different. And that is, you know, it's interesting that you say the way that you first fell into real estate investing was you heard something on a podcast. Yeah. You kind of got hooked on podcasts. And now you are a very, very successful podcast yourself. You've got the real estate way to wealth and freedom. How long you've been doing that podcast for?
Jacob Ayers [00:11:45] Yeah, thanks for that. I've been doing that podcast for a little over two years now and it's been a lot of fun. I mean, I learned so much from doing it. I get a lot of fulfillment from it. I get to speak to people just like you, Dave, and meet a lot of great people. And yeah, it's been a really worthwhile experience, forced me to learn and grow and I just couldn't speak enough about it.
Dave Debeau [00:12:07] So tell me if you don't mind sharing a little bit about what have been some of the biggest benefits you've seen to yourself and your real estate investing by having your own
Jacob Ayers [00:12:17] podcast hands down networking? It's been the most phenomenal networking tool I think I could have envisioned. And I don't claim to have a bunch of original thoughts here. So I remember you not picked up that podcast for the very first time, found this world of real estate investing in a credit that to other people, I didn't invent real estate investing. I didn't invent podcasting. I'm not doing really anything original here. I'm standing on the shoulders of giants. And that comes from all angles, from real estate investing, from podcasting, from anything. So I'd say that kind of translates to to podcasting as well. I've been able to meet so many unique and awesome people from all walks of life, from all experience, much more experience. And myself, I get to learn right along with the audience members. So it's been a really fun, cool experience. And yeah, that's that's the most hands down tangible value I've got from the podcast.
Dave Debeau [00:13:09] Oh, most definitely. Most definitely. Plus, I imagine you see that it also helps to promote yourself as an expert because people kind of look up to the to the guy or the gal that's doing the interview as well.
Jacob Ayers [00:13:23] Yeah, sure. To some extent. Yeah.
Dave Debeau [00:13:25] Interesting. So have you done any direct deals or transactions or joint venture partnerships from your podcasting?
Jacob Ayers [00:13:34] Yeah, you know, that's been one of the unique things that's happened as a result of the podcast, is people reach out and say, hey, you know, I live in such and such market. The numbers don't make sense here. I'd really love to see the deals you're doing and Oklahoma or Texas or wherever it might be. And then, you know, on the other end of that, I'm reaching out to other people who are much more experienced than myself and saying, hey, you know, I'd like to partner up on this style. I'd like to help you doing do what you're doing, help you underwrite deals or analyze this market or I heard you were looking for deals in Houston. Let me go drive by this deal for you and give you the details on this part of the city or whatever that might be. So I'm always just trying to provide value one way or the other is really what I focus on doing.
Dave Debeau [00:14:15] Nice. So if somebody is listening to this, that kind of thing, hey, you know, maybe I should do my own podcast, what would you suggest to that person?
Jacob Ayers [00:14:24] Think about why you're going to do the podcast. You know, those are the reasons why I started doing it. And it's definitely not passive. So it's real estate investors were all about that passive kind of lifestyle. Right? It's Dave. You know, it's a lot of work hosting and operating and running a podcast. So it's certainly not passive. So don't go into it with that kind of mentality because you'll be sorely disappointed when you come to find out how much work it is. But if you are interested in podcasting and say, you know, listen to a podcast about podcasting, believe it or not, there are dozens of those types of podcasts out there. Pick up a book network, just learn it, because when I started doing it, I wasn't a tech guy, I wasn't anything, I wasn't an audio engineer, I didn't know anything about podcasting. And I managed to make it work somewhat. So you can certainly do it if I can.
Dave Debeau [00:15:12] Yeah, they have an old doofus like me can do it for crying out loud. The beautiful thing is you can find smart people overseas to take care all the techie stuff for you. So basically all you have to do is show up, have a chat with some interesting smart people, press record, remember to stop recording and your job is pretty much done. Yeah, absolutely awesome, Jacob. So in our last minute or so here on the interview, if people are interested in finding out more about you personally and or listening to your podcast, what would you recommend that they do?
Jacob Ayers [00:15:44] Yeah, appreciate that, Dave. So you can go to my website w w w Jacob dot com. That's the home for everything I do, including my podcast called The Real Estate Way to Wealth and Freedom. I'm an engineer, not a marketer. So I decided to name that thing like nine words. Long retrospect, probably not the best idea. It's a mouthful, but nonetheless it's there. So, yes. That interest you at any sense? Go over, check it out, connect with me. Reach out. I love talking with people. So, yeah, that's the best place to do that.
Dave Debeau [00:16:13] Awesome. And I've listened to a couple of your podcasts. You do a great job. Keep doing what you're doing. And and I really appreciate you being on this podcast today.
Jacob Ayers [00:16:20] Dave, thanks so much for having me on. It's been a lot of fun.
Dave Debeau [00:16:23] My pleasure. All right, everybody, take care and we'll talk to you on the next episode. 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. Very, very much appreciated. 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.