Trust, Wealth, & Real Estate w/Jeff Ervick
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Episode Description
Welcome to the Freedom Point Real Estate podcast! Jeff Ervick joins Jeremy Dyer in today's episode to share some effective strategies for raising capital and building trust with investors, to identify key qualities separating great investors from average investors, to offer advice on scaling a business while maintaining balance, and more.
Jeff is an accomplished operator and Investors Relations Maverick. He has been vital in successfully deploying over $37M of equity into our $150M portfolio of industrial, multifamily, luxury SFHs, and built-to-rent development. Jeff likes to spend quality time with his wife and three kids, boating, golfing, and coaching youth Travel Baseball.
CONNECT WITH JEFF ERVICK!
LinkedIn: https://www.linkedin.com/in/jeff-ervick/
Website: https://valoriscapitalpartners.com/contact-us/jeff-ervick/
LinkTree: https://linktr.ee/jeff_ervick
CONNECT WITH JEREMY DYER!
Website: https://startingpointcapital.com/
Instagram: https://www.instagram.com/startingpointcapital/
LinkedIn: https://www.linkedin.com/in/jeremydyer
Facebook: https://www.facebook.com/startingpointcapital
Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12
Summary
Tip #1: Overcommunicate with Investors for Trust
“We pride ourselves on communication... overcommunicating with our investors, making sure that we provide newsletters with pictures... We're actually putting together a video newsletter for one of our development projects.”
Transparent and consistent communication is essential in building trust with investors. Jeff emphasizes the importance of not just sending out periodic updates but also enhancing them with visuals like photos and videos. This level of engagement helps investors feel more connected to the project and reassured about its progress, leading to stronger, long-term relationships.Transparent and consistent communication is essential in building trust with investors. Jeff emphasizes the importance of not just sending out periodic updates but also enhancing them with visuals like photos and videos. This level of engagement helps investors feel more connected to the project and reassured about its progress, leading to stronger, long-term relationships.
Tip #2: Understand Debt Terms to Protect Your Investments
“The power of relationships... incredibly important that you know people... and sometimes unfortunately you don’t know whether or not you’re entering into a relationship with somebody else that’s going to provide value to the team.”
Managing relationships is as crucial as managing the financial side of a real estate deal. Jeff’s perspective emphasizes that solid relationships help protect investments, especially when unforeseen challenges arise. Knowing that you have reliable partners and stakeholders in place reduces risk, ensuring a smoother process even when debt terms or market conditions shift unexpectedly.
Tip #3: The Power of Building Strong Relationships
“Building strong partnerships and aligning with like-minded investors is key to scaling in real estate.”
Successful real estate ventures often rely on trusted partnerships. By aligning with others who share your vision, goals, and values, you create a collaborative environment that can withstand challenges. Jeff stresses that choosing the right partners is just as critical as selecting the right property, as strong partnerships can offer resources, knowledge, and support.
Tip #4: Communication and Transparency Are Essential in Investor Relations
“Overcommunicating with investors, including monthly and quarterly updates, helps build trust and keep investors informed.”
Transparency fosters trust, a crucial element in maintaining long-term investor relationships. By providing regular updates, even when challenges arise, you demonstrate accountability and respect for your investors. Jeff’s method of over-communicating ensures that investors never feel left in the dark, building confidence in both the operator and the project.
Tip #5: Treat Investors Like Owners, Because They Are
“Treat your investors as co-owners, keeping them in the loop and honoring their contributions to the deal.”
Investors are not just contributors of capital—they are essential stakeholders in your business. By treating them as owners and keeping them informed about the project's progress, you foster a sense of partnership. Jeff’s philosophy of respecting investor contributions creates stronger relationships and, in turn, more successful investment outcomes.
Tip #6: Learn Through Doing, Not Just Watching
“We bring people into our fold to help them create their business structure, LLCs, websites, and marketing and teach them by actually doing it.”
Hands-on experience is one of the most effective ways to learn. Jeff’s approach to mentorship involves actively involving new partners in the process, allowing them to gain real-world knowledge that they can apply immediately. This strategy not only accelerates learning but also builds a network of capable partners who can contribute to the company’s success.
Tip #7: Mentorship and Helping Others Is Key to Growth
“Someone did it for me. If I could help other people learn how to do and be a part of the industry, it only grows our partnerships and trust.”
Mentorship isn’t just about teaching; it’s about giving back and helping others grow. Jeff’s commitment to supporting others who are starting out in real estate reflects a broader philosophy of collaboration and community. By nurturing the next generation of investors and operators, Jeff builds a stronger ecosystem that benefits everyone involved.
Tip #8: Create Multiple Streams of Income to Manage Financial Uncertainty
“Having multiple streams of income can balance out financial challenges, especially when juggling a W2 job and real estate investments.”
Relying on a single income stream can be risky, especially in a volatile market. Jeff highlights the importance of diversifying income sources—such as having both a W2 job and real estate investments—to ensure financial stability. By having multiple streams of income, you mitigate risk and provide yourself with more flexibility to weather economic storms.
Tip #9: Work-Life Balance Is Crucial for Long-Term Success
“I wake up early, go to the gym, help get my kids ready for school, and then block schedule my day for W2 work, real estate tasks, and family time.”
Achieving work-life balance is a challenge, especially when juggling multiple roles. Jeff’s strategy of waking up early, prioritizing workouts, and creating a structured schedule helps him manage his time effectively. By scheduling tasks and intentionally allocating time for family and business, Jeff ensures that neither side of his life suffers and that he remains productive in both areas.
Tip #10: Leverage Your W2 Job to Build Passive Income Streams
“I’ve created a pathway for folks to use their W2 to create passive income through real estate and other ventures like private lending and syndications.”
Jeff advocates for leveraging the stability of a W2 job to fund passive income streams, such as private lending and syndications. By using your W2 income to invest in these ventures, you can create long-term wealth without relying solely on active income. This approach not only builds financial security but also offers a way for those with full-time jobs to start creating wealth through real estate.
