The struggles of being an entrepreneur and starting a new business

I took a job as a 22 year old 100% commission salesman.  I didn't realize that I was now a business owner until I discovered that I had no business.  I had bills, student loans, and things that I wanted, but what I was missing was an income.  I didn't know it then, but that's the day I became an entrepreneur.  With my back against the wall it drove me to do things that I struggle to do today.  I spent the day on the phone dialing, I would go to where my clients might be to strike up conversations, and I ran down each and every lead until someone told me no, don't call me anymore (because sometimes no isn't enough).  My goal was to make 150$ a day and anything over that was a bonus.  My first 6 months was slow, but by the end of my first year I was well over 100k.  I was off to the races after that as a solo-preneur.  The money was too good not to be working all the time.  100k miles a year on a car, 18 hour work days, and 7 days a week soon became the norm.  Some people would say I worked away my 20s, but it didn't seem that bad at the time.  I was 23, new Cadillac, new house, and I was enjoying my work!  I got to see my business and my bank account grow and I felt tired and fulfilled by the end of the day.  I got into investment real estate, a new addiction, and every dollar I made went right into my new hobby.  I didn't know what I was doing at the time, but luckily the deals were so good I couldn't miss!  I was always broke because I was putting every dollar into the next deal.  

Now I had two businesses and both were doing OK, but they all revolved around me. I was getting fat riding in the car all day, I met and married the woman of my dreams, but I didn't have any time to spend with her, and we had a couple kids that I never got to see.  The pressure of beating last years number, keeping a wife happy, and balancing work/life takes its tole on a person.  Luckily, I had a competitor that I liked call me to inquire about a job.  It seemed like the craziest idea in the world to share my commissions with someone else, but he was desperate, and I was in a position to help.  This decision changed my life.  We split the work 50/50 and I took a cut out of his commissions.  It was a good deal for him and it was a great deal for me.  Today, years and years later we still work under the same terms.  There are now 6 or 7 other contractors in my business operating under these same terms, and as far as I know they all love it like I did.  

I brought the same idea over to real estate. First I brought on a lady to clean and paint the units as they turn over (previously my job).  Today that lady is our lead property manager and will soon be one of the busiest real estate agents in the area.  I believe!  My wife was able to leave her job as a physical therapist, work from home, and created the systems needed to solve our problems.  I'm not great at organization, struggle with focus, and don't love technology.  The ladies in my life are good at all of this these things, and the management of our portfolio is nothing short of amazing compared to the industry average.  Since I've been able to get the day to day handled I've turned my attention to the marketing.  We have to grow our funnel to grow our business.  The internet is a new and changing ball game that small business owners have to play to remain relevant.  It really does take a lot of work and effort to stay consistent in social media and Digital marketing.  

This brings me to today and the struggles of starting a new business.  Today it's tough to make cold calls, strike up random business conversations, and enter a new field.  Most portfolio owners already have "a guy" or try to self-manage.  Also, if they were going to hire a property manager they would hire the Big Name in our area despite the fact that their rating on yelp is 1.5 stars on 258 reviews!  For the love of God.  People refuse to pay for property management which I find the craziest of all.  You don't want to pay us $75 a month when I'm going to raise your rent $300, net you 2700$ a year (or $32,400) on your 12 plex?  You don't want us to solve all of your headaches, run all aspects of your side job, and make you more money?  You don't screen tenants at all because that didn't seem to work?  You hired a property management company that wasn't licensed, didn't have any track record, and you were surprised when that didn't work out?  We have only been going on the new business a couple months, but I'm starting to remember how difficult it is to get a new business off the ground. 

I call every For Sale By Owner sign I see.  You just never know when you are going to get a good deal, but more often than not, it's time wasted.  I called a a FSBO and met them at a property 6 months ago.  The place looked dated but it was OK.  They had just purchased the property at auction.  The thrill of the auction must have gotten the best of them because they paid over retail.  They had fixed it up the best they could but decided that it wasn't something that they wanted to live in.  Thus, the For sale by owner sign in the yard.  I drove by that property today, 6 months later, and the house still sits empty with that same sign in the yard.  I called the number and talk to one of the nicest guys in the world again.  I try to get him to list the property with us (cheaper than our competitors) or let us manage the property for 75$, but he says he still needs time to think about it!  For the love of God, you've already missed out on $7800 in rent and you still need more time?  Starting a property business has proved to be frustrating.  Just like my other business; I know there is a need and I know we are the people to solve it.  Nothing in life is easy, this business will succeed, I just have to channel my inner 20 year old hunger, and make it work.  Stay consistent.  

I wanted to tell a little bit of my story on my blog, but I also wanted to hopefully inspire a 20 year old to go get off the damn couch and go do something.  Take your risk and work hard when you're young because it's hard to do both when you're old.  I want to encourage that hard working self employed individual to start a team.  To really get ahead we have to leverage money or people.  I want to encourage all of us real estate investors that enough is never enough!  I read so many, "I put all my properties on a 15 year loan because I will retire in 15 years".  No you won't!  Your friends are at work, you'll be bored, and your spouse will get sick of you.  You're never too old for a great real estate deal!

Lets make it happen in 2020!