Latest / The Academy Presents podcast / From Ranch Life to Real Estate: Joe Rinderknecht’s Journey Into Investing

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From Ranch Life to Real Estate: Joe Rinderknecht’s Journey Into Investing · The Academy Presents podcast

0:01
Did you know that 90 % of the world's millionaires
0:05
invest in real estate? Well, I'm Angel with the
0:08
Academy Presents Real Estate Investing Rocks,
0:11
and I'm here to help you if you want to go for
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your piece of that pie. Are you new? Are you
0:18
new to this and you just don't know where to
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start? It's okay. Are you someone that has invested,
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but you feel stuck? You feel like you've lost
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momentum. You don't know where to really head
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from here. Are you a seasoned real estate investor
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who is doing great, but maybe you just want to
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hone a few skills here and there? This is the
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place for you. The Academy Presents Real Estate
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Investing Rocks podcast will connect you with
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industry experts so that you can save time, avoid
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costly mistakes, and begin living the life you've
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dreamed of all through real estate investing.
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You're already taking the first step. just by
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joining us here today. Hey guys, we are back
1:06
again with the Real Estate Rocks podcast here.
1:10
And you guessed it, we have another amazing guest.
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This is my friend Joe, and he actually knows
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my husband too, and they've worked together on
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some projects as well. So I'm super excited to
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just get to talk with him for these next few
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posts. next few podcasts and just get some information.
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So Joe, I'm going to let you kind of intro yourself
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and then if you can give us a little bit about
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your background. Yeah. Thanks Angel. And yeah,
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I really appreciate your husband, Jason. He's
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underwritten a number of deals for me and for
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anybody looking for third party underwriting
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services like Jason is, it's definitely worth
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it. He's got like this. He's a great coach too.
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So he's, he can teach you how to do it on your
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own also. And he's got full blown like institutional
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model with lots of sensitivity analysis. It's
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cool to where you can plug and play and change
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outcomes. And so, yeah, definitely jump in with
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these guys. Yeah. So, yeah. Name's Joe Rinder
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connect for those of you who can see and who
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are watching this podcast. I've got a cowboy
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hat on, which is kind of. out of the norm, if
2:20
you will, in the real estate community. I grew
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up doing ranching and farming. What's kind of
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funny is my last name, Rinderknecht, in German
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actually means keeper of the herd. So pretty
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much since the beginning of time, we've been
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ranchers. And early on, you know, I grew up in
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eastern Idaho and northern Utah pretty much my
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whole life. I mean, I'm back in eastern Idaho
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right now. That's where my grandpa's cattle ranch
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was. So I grew up doing that and, you know, built
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a lot of, learned a lot of standards that you
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do, you know, working on a ranch, working hard,
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you know, you know, your words, your, your handshake
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is your word. Your word is your bond. You know,
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like that's very important in our line of work.
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You know, being able to face challenges head
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on and make, you know, solve problems quickly.
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Those are all things like. You have to solve
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on the ranch quickly or animals die and that
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affects your lifestyle, right? And so, you know,
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grew up doing that. And then my dad was kind
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of the black sheep of the family. He kind of
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went away from the ranching lifestyle a little
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bit and got into construction, which, you know,
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I ended up getting into. I'm the oldest of my
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five siblings. And so during high school. My
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dad would he's trimming out, you know, spec houses
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and I would, you know, go to high school and
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then go to the job site with him and trim out
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houses all night long. You know, I remember times
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where it's just like when I was younger, like
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I get tired and cold and I'd go, you know, lay
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down in front of the. the big shop light fall
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asleep trying to stay warm because there was
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not typically heat in those spec houses you know
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in the middle of winter um but you know i learned
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construction that way and i've done you know
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concrete and framing and siding and all the different
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kind of verticals of of construction which i
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didn't appreciate as much as i should have back
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in those days but Even before getting on this
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call, Angel was listening to me on a call about
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setting up painters and trim guys for a deal
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in Montana. So it's serving me well now, which
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has been very helpful. And then pretty much did
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that whole scene up until I graduated high school.
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After high school, it was 09, right? My parents
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kind of got hit by the 08 bubble. And I didn't
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really it didn't really affect me personally.
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But, you know, my parents tried to get me to
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go to school to be an x ray tech because it was
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a safe, secure job and people in the medical
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industry would always be in demand. And, you
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know, because they were hurting and I didn't
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really understand it. And so I started, you know,
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down that path. And then but I've always had
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kind of an entrepreneurial heart. I think I'm
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like most people who got into real estate. My
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dad had me read Rich Dad, Poor Dad. at like 16
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years old um and that really really got me going
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um so i you know he kind of instilled that into
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me and and i actually got started like actually
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got started in the entrepreneurial world real
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estate world back in 2014 2015 um i i was in
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an entrepreneurship club and saw that you know
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i wanted to really learn real estate there was
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a mentor a resident mentor at the university
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who was a you know fix and flipper um he did
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mainly duplex fourplex you know so i started
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bird dogging for him so for any of you newbies
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out there who don't know what bird dogging is
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is you're essentially going out finding somebody
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who is doing deals and going and finding deals
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for that person based on their criteria that's
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like one way to get your foot in the door if
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you want to get into this game you don't have
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any other resources or knowledge right So, I
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mean, that's how I started, brought them a couple
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of deals, never really got paid for them, but
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I got experience, which is, you know, really
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what I was there for, you know. I think it's
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hard too. And people who are, especially people
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who are just now starting out. And I think that
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a lot of what they've been taught is not applicable
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right now, you know. five six seven years ago
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i think it was incredibly applicable but yeah
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some of it just doesn't work now um beyond just
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beyond the whole thing and people say oh well
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it doesn't work you overpaid there's more to
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it than that even if you pay right like in that
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moment you really feel like it's right the underwriting
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is perfect if the economic landscape changes
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even just a little bit especially in a value
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add with a class c it's going to affect your
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residents exponentially because they're already
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on tight incomes. And so any, any changes to
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what their bills are, how much they have to pay
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each month is it can be detrimental. And I think
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that is especially true right now. It's true
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all the time, but usually, you know, they could
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handle, you know, a $500 emergency, maybe at
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this point in time, I don't think most people
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can handle a $500 emergency. uh much less people
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that are working in industries where hours have
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been cut and they're not hiring so it's just
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rewriting some of the playbook i think um so
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it's it's nice to hear that there are other ways
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to to get on board than being boots on the ground
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or anything like that because i i never knew
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what bird dogging was until i got into this space
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um and My husband and I grew up in families that
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invested in real estate. We got our first house
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in 2003. We've been doing this for quite some
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time, but we had never really worked with anyone
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else. Yeah. So coming up with unique ways to
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get involved is pretty awesome. Yeah. But just
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like your experience of not actually being paid,
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make sure if you're offering services to someone,
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you agree ahead of time. That's right. It's going
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to be, or you may not be compensated. So yeah,
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he was kind of a shark. And so we're on good
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terms now because he might be investing large
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checks into my future deals. But early on, I
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was a little pissed, but now that's hard. Yeah.
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So, so when, when you got started, how were things
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like. Were there a lot of problems with finding
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good properties? Was it not so hard? How did
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you decide where to invest? And then what was
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the difficulty in getting those first couple
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of properties? Yeah. I mean, I was at that time
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living in Logan, Utah. It's a little town in
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northern Utah. And so I just started where I
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was at. I knew of people that had been buying
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single family homes in like Ohio for 50 grand
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or, you know, but I was just like, I, I had zero
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comfort level, zero risk level for wanting to
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buy anything even outside of the state of Utah.
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Like there, like when you're getting started,
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you have zero knowledge typically of like even
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your local markets. So for me, it made the most
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sense to start local. Right. Because I am usually
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the kind of guy to like hit the pavement, go
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get my name out there. And so like early on,
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I just, you know, for sell by, so we call them
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Fizbo's right for sell by owners or Furbo's for
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rent by owners, you know, go knock on those guys'
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doors, go give them a call, you know, cause if
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they're doing a for rent by owner, sell by owner,
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usually there's some level of motivation there,
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you know, if they're. And usually, and this happens
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more often than not, that those people are kind
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of your DIY landlords that have owned the property
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for 10 plus years. And those are the people we
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like to buy deals from, right? Like the last
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four deals we bought in the last 12 months, three
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of those four were from 10 plus year owners,
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which we can get to later down in the podcast.
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So like, that's what I would say is leverage
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the existing relationships that you have now,
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no matter like what market you're in, even if
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you're in California or New York, you know, which
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are the worst places to invest. Like you can
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still go find deals and find people who are buying
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in that market because everybody's buying in
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any market or anybody is investing or buying
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in that market. So like, you just got to find
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that guy or gal. And, you know, bring value to
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them. So I would say just start where you're
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at. Start local. Use your relationships that
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you have. You know, go talk to your pastor or
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your bishop or whatever your religious leader
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is and say, hey, I'm trying to find a house to
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buy. Or, you know, go to people you'd never think
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have anything to do with real estate. You know,
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I use the pastor as like a kind of a wild example,
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but it's like. You know, go talk to the waitress
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at the cafe. You know, I think the biggest thing
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I'm trying to explain here is if you want to
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get in this business, you got to start telling
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people what you want to do and what you are doing.
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It's kind of that fake it till you make it situation,
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even before you're in it. Like, I remember sitting
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in a, I just remember it kind of like feeling
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like a dungeon of a basement at a, is a real
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estate investors, like a new area. the Northern
12:26
Utah real estate investors association in, in
12:29
Logan telling this guy who just sold a company
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that I'm a multifamily investor, even though
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I'd never done a deal, you know, and it's really
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cool. Cause like 10 years later, he did his first
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deal with me two, three months ago, you know,
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um, had no experience, nothing. I just said that.
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And he and I've been friends ever since. Right.
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So it's, it's starting where you're at with what
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you have. and the relationships that you have
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and just start talking to people about what you're
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doing because you never know. You may talk to
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somebody at the grocery store and their grandma
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just passed away and they need to sell a house.
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They're doing probate or something. You just
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never know. And it's crazy because I've gone
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to a steakhouse in Scottsdale and I raised a
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million dollars in the men's bathroom. Just because
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I'm a chatty person and I just start talking
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to people for no reason. You know? I mean, he
13:29
was the only one else in there. That's hilarious.
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But that's the way it is. So I really, you know,
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if somebody's sitting out there and they do not
13:40
have an avatar, never fear. I still don't have
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one. because I talk to anybody and I talk to
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everybody because that's what I do, which if
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you've met my husband, it's really funny because
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he is not that person at all. Um, but I am, I
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am absolutely the chatty Kathy. Like I will talk
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to anybody and even if they don't look the part,
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um, because I think, I think that's something
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that we wind up doing. We get biased towards
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people that dress a certain way or have certain
14:15
things. And those aren't the people that will
14:19
actually pull through for you a lot of times.
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And this is just kind of like a really goofy
14:24
example that I'm fixing to give. And you're gonna
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be like, wait, how does that even apply? But
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when we're selling things, when my kids are selling
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things and they're doing door to door, maybe
14:33
as a group, they call them wagon sales. I will
14:37
tell the leaders, we don't need to go to the
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nice ritzy neighborhoods. We need to go to the
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neighborhoods that are, you know, 20 years old.
14:45
Cars are a little older, but it looks like established
14:48
people because those people actually have disposable
14:50
income. A lot of times the people that are in
14:53
those flashy neighborhoods are living paycheck
14:55
to paycheck and they have nothing extra. And
14:58
we've been way more successful in the older neighborhoods.
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And I don't mean like older people neighborhoods.
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I mean like older home neighborhoods. So like
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the neighborhood we're in, our houses were built
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in the 80s. A couple streets over, those houses
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were built after 2010. And whenever we've done
15:15
door -to -door, we've always done better in our
15:16
own neighborhood. Not because people know us.
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Because people, all the driveways are in the
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back. So people don't hang out and talk in their
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front yards. So we don't really know who our
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neighbors are as well. But we've always done
15:29
better in this neighborhood. Just because people
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have been paying on their houses for, you know,
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10, 15, 20 years. Maybe they have a mortgage.
15:38
Maybe they don't. Maybe their car is paid off.
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They don't have a car payment. And so they've
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got that disposable income and they want to support
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local groups. And so if you're sitting there
15:48
thinking, well, how does that ever apply? That
15:51
person in the t -shirt and blue jeans could very
15:55
well be the multimillionaire next door. Whereas
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that person carrying, you know, the Louis Vuitton
16:01
bag or wearing those red, red bottom shoes may
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literally have 200 bucks in their checking account.
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Yeah. Keeping up with the Joneses. Yeah. The
16:12
whole lifestyle creep. So just, I think it's
16:15
good to talk to everybody and just get a feel
16:17
like you will eventually hit a point where you
16:19
can get a feel for people. Yeah. Even now when
16:23
it's so scary to be raising anyway. Yeah. Funny
16:27
thing. The other thing too, cause like, you know,
16:29
if you're like, if people on here listening or
16:32
like say Jason or like my wife is like reserves,
16:35
not really the person who's gonna make small
16:39
talk. Like, I don't know necessarily how you
16:42
get over that other than think about like, if
16:48
it, in my mind, I, you know, maybe my wife or
16:51
Jason could tell me if I'm wrong here, but it's
16:53
like, what do you want more? Do you want to feel
16:55
uncomfortable? are you more willing to feel uncomfortable,
16:59
uncomfortable or not chase your dreams? Like
17:02
if your dream is to get into real estate and
17:05
like, you know, you're one conversation away
17:08
from, you know, making that next million or getting
17:12
that first deal, you know, it's like, are you
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willing to have that uncomfortable conversation
17:15
within yourself? You know, you want to get out
17:19
there? Like what, which, what do you want worse?
17:23
I always give people advice too. Like, Jason
17:26
and I can, we can move through a room now because
17:30
he's not a small talker. He does not like small
17:32
talk. It's wasteful to him. I can tell the same
17:36
story 20 times to 20 different groups in the
17:39
same room with the same laughter and the same
17:42
excitement as telling it day one. It's all the
17:46
same to me. I just love it. And so what we'll
17:49
do is like, I'll go and start a conversation
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and I'll do the small talk. And then when it
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turns to numbers or it turns to that media or
17:55
stuff that I really, it's not that I don't care.
17:58
It's just that it's not as fun. He'll be there
18:01
to take over the conversation. And then he can
18:04
get into that conversation and it's more of the
18:06
conversation he wants to have. And then I can
18:08
move on. And so we can kind of tag team a group
18:11
that way. And so I always tell people like, If
18:15
you're introverted and if you have a hard time
18:18
starting conversations or keeping conversations
18:20
going, get yourself an extroverted wingman and
18:24
just start taking them to events with you. And
18:26
they don't have to be real estate people. Like
18:28
if an introvert invited me to, I don't even know,
18:32
a Star Trek festival, which I love Star Wars,
18:34
not necessarily Star Trek, but I'll watch Star
18:36
Trek too. But like, if they took me to that,
18:38
I would still go because I just want to talk
18:40
to people. And as crazy as it is, those. I think
18:45
about those costumes. Those costumes cost a lot
18:47
of money. They're giving that money from somewhere.
18:50
Money is somewhere in that room. That's hilarious.
18:53
I never would have thought about that. Even if
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it's something else, like a librarian's convention.
19:01
I don't care. You're an introvert. Let's go practice.
19:05
You're into books? Hey, let's go. I'll work through
19:08
it with you. Because I just want to talk to people.
19:11
And I just like being at events. Nice. I like
19:15
it. That's how, I mean, that's how I've helped
19:18
people. And because I, yes, you probably need
19:21
to be more comfortable with being uncomfortable,
19:23
but I'm not that person that thinks you have
19:25
to be uncomfortable to grow. I think you can
19:28
grow in your comfort zone too. Cause your comfort
19:30
zone is going to expand. Yeah, that's true. But
19:34
you do have to get uncomfortable sometimes. Like,
19:36
I mean, I'll be honest. Like when you called
19:38
before we started recording, like I don't. I
19:42
don't usually worry. Like people don't usually
19:44
call me. Like they just text me back and I'm
19:47
like, do I pick this up? What do I do here? I
19:52
did pick up, but it was just, most people don't
19:57
call. I've had, I guess in the last five years,
20:02
situations have arose where someone could have
20:05
just texted me back and they've called me. And
20:07
I won't even, I mean, like I almost don't pick
20:09
up because I'm like, Wait, what is going on here?
20:12
Why are they calling me? And I love talking to
20:14
people. And so it's not the norm to pick up the
20:19
phone and call. So it's not just like – and I
20:23
say you just kind of out there, but it's not
20:25
just you that is uncomfortable picking up the
20:27
phone. Like even your extroverts might second
20:30
guess picking up the phone. So I think it's a
20:33
universal issue, not just a I don't like talking
20:37
to people issue. Yeah. Yeah, I would agree. So
20:42
how did you get over it? How did you just pick
20:44
up the phone and start calling? Because like
20:46
I said, I was like, why is he calling me? He
20:48
just texted me back. I was driving, so it was
20:52
easier to call you than text you. And I'd rather
20:56
just get straight to the point. It's easier to
21:00
just get things fixed or resolved. Yeah, just
21:04
based on what I've seen, you do seem like that
21:07
kind of person that's just going to try and get
21:09
things done. I would say this too, for people
21:14
that are afraid to kind of be that person can
21:18
get you in trouble. Most people do not have the
21:23
entrepreneurial spirit. And so they don't know
21:27
how to react to someone when they are faced with
21:30
it. Because like, we just get things done. Parent
21:34
teacher conferences come up. We can't make those
21:36
times work based on when we have to pick our
21:37
son up from therapy. So I'm going to shoot out
21:39
a Zoom meeting link to everybody. And let's just
21:42
do this thing by Zoom. And then we get an email
21:44
back saying that it was rude and that we should
21:48
have tried to discuss it with the administrator
21:49
first. But our thing was just like, problem,
21:53
let's solve it. Let's have a Zoom meeting. And
21:56
here's the link. Just join us when we would regularly
21:59
be sitting here across from the desk from you.
22:01
Just hop on the Zoom meeting. And so we just
22:03
solved the problem. 0 .25, man. COVID fixed this
22:10
for us. Did, but I think there's still that,
22:14
that idea of there's still a chain of command.
22:16
There's still a hierarchy. And I think that a
22:19
lot of entrepreneurs buck that system.