BRRRR Strategy, Property Management, and Mobile Park Investing with Ryan Murdock REWIND

Investor Cheat Code Podcast with Mike Simmons

Today’s Guest: Ryan Murdock

Ryan spent ten years in the electronics manufacturing industry before transitioning to real estate investing and property management in 2007. Today, he is VP of Acquisitions at Open Door Capital, a real estate investment company from Bigger Pocket’s Brandon Turner. Ryan has extensive management experience in many facets of real estate including retail, office, multi-family, HOA, nationwide consulting, and mobile home parks. He has been a licensed real estate broker since 2008 and owns and operates a portfolio of residential rental properties.

Highlights From The Show:

Before Ryan got into real estate investing, he worked as a production facility technician in the electronics manufacturing industry, traveling all over the world. His priorities really changed when he got married and found himself having to decide if he wanted to continue to live overseas. He bought his first rental property when he was thirty years old and has been building his “empire” ever since!

Ryan’s first investment was in a duplex in Bangor, Maine and he lived on one side while renting out the other, “house hack” style. He financed this investment very traditionally and talks about how this was his first experience with having difficult tenants to deal with. He bought a few more duplexes and was looking aggressively at foreclosures to find other deals, while at the same time, he started his own property management company. He ran this company himself for about five years and then eventually paired up with a bigger management company that had a network of employees that he did not. At about this same time, he also got his real estate license so he could pursue his own deals.

Eventually, Ryan got to a point with his own portfolio where he was able to leave this company and go back to managing only his rental properties, aided by much better systems, technology, and automation. As he started to broker other deals and do some consulting, it made sense for him to give the project management portion to his past employers so he could spend his time in more profitable endeavors.

Ryan utilizes the BRRRR strategy with his properties, so we spent some time discussing how that worked for him. He talked about how he was completely reinvigorated by finding the BiggerPockets podcast and learning about different strategies that he had not yet explored. It made him take a hard look at his portfolio and get money out to use as working capital to invest in more properties. He encourages our listeners to take a hard look at their own properties in order to maximize their cash flow.

I then asked Ryan what made him pick up his life and move to Maui and join forces with Brandon Turner. Ryan and Brandon had partnered to buy a mobile home park and developed a relationship through that process. When Brandon moved to Maui, he asked Ryan to come out and give him a hand, and a week-long stay turned into a month. Brandon eventually hired Ryan as his personal assistant.

Because Ryan initially hooked up with Brandon by feeding him a mobile park investment lead, we spent some time exploring this investing strategy. Ryan talked about how to evaluate these types of investments and the techniques they used to add value to these communities. Once Ryan moved to Hawaii, they got really invested in Open Door Capital, Brandon’s company which exclusively buys mobile home parks. At the time of recording, they owned about 10 different communities with approximately 1500 lots. Ryan went into quite a bit of detail about what they look for in an investment of this kind and also the type of investor that they look for to partner up with them. He also pitched the “Bring Brandon A Deal” promotion they are running now if someone finds them an off-market mobile park deal.

Ryan has an incredibly diverse background in investing and in life, so you do not want to miss this entertaining and informative episode of the Just Start Real Estate Podcast!

Notable Quotes:

“The real driving factor for getting into real estate was that I just couldn’t see myself in another corporate job for the next thirty years.”

• Ryan Murdock

“I went on Amazon and bought every real estate and property management book they had because I had no idea what I was doing.”

• Ryan Murdock

“Maybe if I had read some different or better books I wouldn’t have made so many mistakes.”

• Ryan Murdock

“If I am going to be married to my own rental properties, I might as well start managing some for other people and generate a little income.”

• Ryan Murdock

“If you feel like you are getting close to hiring help, you are probably already past the point when you should.”

• Mike Simmons

“I think a lot of people are like me - I had 10 cents in my bank account and every day is a struggle to hustle.”

• Ryan Murdock

“There are different tiers to financial freedom… it doesn’t happen overnight.”

• Ryan Murdock

“Finding and listening to the BiggerPockets podcast really lit a fire under me again.”

• Ryan Murdock

“I encourage other investors to keep an eye on their properties’ financials.”

• Ryan Murdock

“I just want to buy and hold everything.”

• Ryan Murdock

“Because of Brandon’s platform and reach, he is able to attract some extremely talented people.”

• Ryan Murdock

“I’m always amazed at the ways you can make money in real estate.”

• Mike Simmons

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Resources and Links From Today's Show:

Real Estate Investing for Dummies

Property Management for Dummies

BiggerPockets Podcast

Open Door Capital

More Resources From Mike:

• Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months
• WINNING DIRECT MAIL - How to CRUSH IT with direct mail!