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What Are the Secrets of Massive Real Estate Success?

With Joseph LubeckEP 169

Although Joseph Lubeck left home at age 15 with only $400 to his name, he has become one of the world’s most successful real estate investors and is the Chairman and Co-Managing Partner of Electra America, and Founder and Chief Executive Officer of American Landmark.

In this fascinating episode of Let’s Talk Business, Joe lets Meny in on the secrets of his success and the ways that anyone can learn how to wisely invest in the real estate market. Among the topics they discuss are what you need to do to start off in real estate, whether down cycles should be seen as an obstacle or an opportunity, why some successful real estate investors sometimes lose everything (and how to avoid falling into that trap), the biggest mistakes people make in real estate, and much more. He also tells his own story and emphasizes the importance of charity not just as a religious obligation, but also in creating a company culture where people can thrive.

Transcript

What Are the Secrets of Massive Real Estate Success? A Conversation with Joseph Lubeck

[00:01 – 07:59] Joseph Lubeck’s Inspiring Journey to Success

• Joseph has overseen the build-out of four successful multifamily portfolios

How he got involved in real estate and became COO of an early apartment company
• In 1996, Joseph took every penny he had and bought one building in St. Petersburg, Florida

• How hard work and giving can lead to success

[08:00 – 16:03] Navigating Real Estate Cycles

• American Landmark has 800 full-time employees and 36,000 apartments

The value of customers, investors, and team members
• Giving till it hurts is important to HaShem

• The quote ‘Buy when there’s blood in the street’

[16:04 – 24:49] Low Leverage Real Estate and Taking Advantage of Opportunities

• Why you should be as lowly leveraged as possible

• Sleep at night by having good partners rather than lenders

• Cycles must be expected and anticipated

• Specialty businesses require sophisticated knowledge

[24:50 – 34:30] Tips for Protecting Your Life Savings

• Take a job and learn from somebody else before starting on your own

Surround yourself with people smarter than you
• Start small and use smarts to grow – Make HaShem your partner

• Stay under control and don’t get involved in bidding wars

[34:31 – 42:55] Closing Segment

• Stay under control and don’t get involved in bidding wars

• Don’t go outside your area of expertise

• Joseph on the rapid-fire questions

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Practical Pointers
Adopt a spirit of giving even before you have achieved great wealth - in Joseph’s terms, “Give ‘til it hurts.” If you see charity as an essential part of your business efforts - as an actual part of your DNA - you’ll be surprised at how much it can help your business as well as your soul.
Make sure to be as lowly leveraged as possible. The less debt you take on, the more you’ll be able to manage through the inevitable down cycles in the real estate market. Don’t forget that when successful real estate investors suddenly fall apart, it’s most often because they’re over-leveraged.
Even when there is a down cycle, don’t necessarily assume that it’s the wrong time to invest. A down cycle has its dangers, but it also offers opportunities to take advantage of situations that only appear when times are tough. By surrounding yourself with people who are as smart or smarter than you, you can together discover what those situations are, and how you can jump in at the right time.
If you would like to become a real estate entrepreneur, start by taking a job with an existing company. That way, you can learn, see what works, and make your mistakes before you set off on your own. At the same time, make sure to read everything you can, go to meetings and seminars, and do everything possible to get a full real estate education. Then, when you’re ready to begin investing on your own, you’ll have the experience and the knowledge to be successful.
Don’t be fooled by the classic formula that the three rules of real estate are “location, location, location.” In fact, the three rules are knowledge, discipline, and location. This means, in part, to know what you know, and to avoid investing in locations where you lack the requisite experience and understanding. If you don’t have people in the area whom you trust, you should stay away or risk getting involved in a losing proposition.
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Guest Bio
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Joseph Lubeck

Although Joseph Lubeck left home at age 15 with only $400 to his name, he has become one of the world’s most successful real estate investors and is the Chairman and Co-Managing Partner of Electra America, and Founder and Chief Executive Officer of American Landmark.

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