439: How to Find Opportunities Hiding in Crappy Situations with David Greene

By May 15, 2019Podcasts

 

 

David Greene shares how you can identify valuable opportunities in any situation you find yourself in–even the crappy ones.

You’ll Learn:

  1. How difficulties often indicate valuable opportunities
  2. Why analyzing your anxiety often yields valuable insight
  3. David’s salad story which reveals how to 8X your efficiency on certain tasks

About David

David Greene is the co-host of the BiggerPockets Podcast, author of “Long Distance Real Estate Investing: How To Buy, Rehab, and Manage Out Of State Rental Property,” online blog contributor, Keller Williams Rookie of the Year, and a top producing real estate agent in Northern CA.

As a former police officer who started investing in real estate in 2009, David has built a portfolio of over 30 single family homes, as well as shares in large apartment complexes, mortgage notes, and note funds.

David teaches free monthly seminars on real estate investing and has been featured on numerous real estate related podcasts. He runs GreeneIncome.com, a blog where he teaches others to build wealth through real estate, as well as “The David Greene Team”—and is one of the top Keller Williams agents in the East Bay.

Items Mentioned in this Show:

David Greene Interview Transcript

Pete Mockaitis
David, thanks so much for joining us here on the How to Be Awesome at Your Job Podcast.

David Greene
My pleasure. I’m excited.

Pete Mockaitis
Well, I’m excited to chat with you too ever since I’ve listened to the BiggerPockets podcast many times. So, I’ve heard your voice, but then when I got to hear your story on the BiggerPockets Money podcast, which I’m excited to appear on, in some weeks from now, I really got a kick out of how time after time after time, you saw some opportunities that others didn’t. So, I’d love it if we could start your tale with back in the day when you were a waiter.

David Greene
That’s actually really fun to talk about that, BiggerPockets Money Podcast. I think it was maybe Episode 12, was the first time that I had ever talked about my story on a podcast, for sure, but maybe even in like the last 10 years. So, I had a lot of fun going back to remembering how I used to think and the doubts and the fears and the worries I had. And now seeing how it worked out. It’s kind of incredible. So, this should be fun.

Pete Mockaitis
Certainly, well, let’s take it away.

David Greene
Okay, where should we start?

Pete Mockaitis
Well so, there you are, you’re a waiter and you are starting to wonder how can I make some more money here?

David Greene
Yeah, so I was always a very driven guy, like I wanted to make as much money as I could, I knew it. I wouldn’t say it was necessarily greed that was driving that but like ambition might be a better word. I knew that I didn’t want my time to not count for anything.

So, I was very, very, like, motivated by if I was going to show up somewhere. And if I was going to put six hours of time, eight hours of time into somewhere, I might as well work hard when I’m there. It didn’t benefit me to show up and not work.

And that was one thing that I noticed that was different in me than other people, we both had to be stuck there for eight hours not doing the stuff we’d rather do, right. You can’t go snowboarding— for me playing basketball was what I loved to do, I can’t play basketball when I’m here at this restaurant.

So, I might as well work hard. And I noticed that a lot of other people were content to be there but not work. And I always looked at it like well, if you’re stuck here, you might as well get something out of it.

So as a waiter, the more tables you had and the better job you did at those tables would determine your income because it was like you know, 90% tips. That’s how you were getting paid. So, I noticed if I could wait more tables, I could make more money. And I knew at the end of my shift when I clocked out and I was going home, all that matter was how much money I had in my pocket. It didn’t matter if I sat around and did nothing or I worked super hard, that was over. And the money that I had was only thing I was taking with me.

So, I became determined to get as good as I could at waiting tables as well as I could and learning the skills that I would need to be able to do that to be able to make more money.

Pete Mockaitis
That’s cool. So, it starts with a different perspective like, “Okay more tables equals more money—”.

David Greene
Right.

Pete Mockaitis
“I want to make the most of my time, so, giddy up, and let’s make that happen.” And so how did you do that?

David Greene
So, the first thing I did was I looked at who in the restaurant is already the best, who’s doing this at the highest level. So, there was two waitresses that were kind of like to go-tos when they got really busy. All the tables would go to them. When there was a big party coming in, they would get the big parties, right?

And, and I started so like ingratiate myself to those girls. It was “hey, what do you need? Can I fill up your tables’ waters? Can I get them some coffee? Can I help brush your tables? Can I bring your drinks from the bar to your tables?” I always be them a priority. When my tables were all done and there was nothing to do and everyone else was standing in the kitchen kind of BS-ing, I would then go help those girls.

And I noticed that they would start to say things to the owner like, “an, this David guy is incredible. We love him.” So, I kind of got a little, “Ooh, this is good. The owner likes me now she’s treating me a little better.” So, I would start doing what we call side work at the end of the night. This is like the cleaning up of the restaurant that they make the waitstaff do.

I would get mine done and then I would go to theirs two, right, because if I have to be here for this time, I might as well clean my stuff up fast and then go help them, more compliments my way. Now I noticed that the owner was kind of pulling me aside and giving me extra training or maybe testing that other waiters weren’t getting.

She’d pull me aside and say, “Hey, these are the eight different kinds of glasses that the bartender uses. We use this type for this cocktail, we use this type for this cocktail.” I being 19 years old or whatever I was, didn’t understand what this had to do with my job. But looking back now I realize she was looking to see, is he a flash in the pan or is this a kid who really wants to learn the industry?

And when I would memorize it, she was very happy and I would get more responsibility, right? And this was my first kind of like, foray into, “you can earn your way into a better position, you don’t have to just wait for someone to notice you and say let me give you a raise, let me give you a promotion.”

So, I went to the owner at a certain point and said, “Hey, I want to wait more tables, so, what do I need to do to be like Haley and Kelly?” Those were the top two waitresses. And she said, “I’m so glad you asked. This is what I look forward to see if you’re ready for the next level.” And she gave me a list of stuff. Now I had a literal blueprint for what I needed to do if I wanted to be successful at this job.

Pete Mockaitis
So much good stuff there, that’s applicable just about anywhere in terms of, alright, attitude and making the most of the time, zeroing in on role models, on who’s the best here. Helping out, proactive favors, ingratiating to the best, asking the questions, “How do I be like that person?”

All that’s great stuff and I guess what’s interesting is, most people did not do that and you shared it in your story that’s a part of that equation could be that the owner was kind of demanding, had some high standards that rub some people the wrong way?

David Greene
Yeah, I guess I should mention that, she was a terror. I mean, people were terrified of this woman, right? When she would show up, everybody went to like, scurry like cockroaches to find somewhere to hide because they didn’t want to be seen by her right?

You hit it on the head, she had extremely high standards. Now, I was used to that in my life before this, I had been playing sports and coaches had really high standards. My parents had really high standards. Now that you mentioned it, so yeah, I’m learning something about that myself. That might be one of the reasons why I do better in life is because I have higher standards. I didn’t really think about that till right now.

Pete Mockaitis
Happy to help.

David Greene
Thank you for that. So rather than me running away from the person with the high standards, I ran towards the person and said, “How can I help you hit these standards?” And because everybody else was running away, I made me stand out.

So, I realized the reason she was always cranky and grumpy was because the standards were not being met. And I would have been part of the problem by running away. That’s why the standards weren’t being met. And by her increasing her expectations of me, it was actually a compliment, right? When everyone else was complaining, why did she care if the cracker wrapper gets left on my table or who cares if their water was empty for a minute.

I was looking at it differently like, if she’s paying this much attention to what goes on at my table, she’s noticing me, this is my opportunity to show her that she can trust me, because I was so motivated by getting more.

And what I found, Pete, is that like, the difference between taking it easy and getting three or four tables and working hard and getting eight or nine tables was literally double your income, right? So, like, if your average waiter was making 40 grand a year, and you worked harder and got eight tables, you could make $80,000 a year as like 18 or 19-year-old kid in 2000/2001, whenever this was happening. It’s a big amount of money for somebody in that position, right?

And that was what motivated me to get good at the job. So, once I got to where she was trusting me with more responsibilities, which meant getting more tables, now I had to learn how to keep the same level of service even though my workload had increased. And that was my first like, foray into being more efficient.

Pete Mockaitis
Oh yeah. There’s so much good stuff here. And at first I want to key in on that notion of you ran toward the person with the highest standard rather than running away and you being noticed is a good thing even if it doesn’t feel like it like “oh my gosh, get off my back.” That reminds me of a previous guest Eddie Davila, who said that, “Pressure is really a gift, you give pressure to someone you trust and that you’re expecting great things of as opposed to giving pressure to someone who you think is everything in them out too much or be able to accomplish much for you.”

David Greene
Yeah, that’s absolutely true and you see it with everything, you see it with professional athletes, you see it with the best performers. You see, I think even to a degree with like teachers and their students, that principle runs through everything.

Pete Mockaitis
Well, so then how in practice did you execute, doing more tables?

David Greene
When it came down to at this specific restaurant, it was not run very efficiently, the waiters had to do an insane amount of the actual work. And the busboys and the helpers, if there was any, didn’t do very much at all.

So, what it meant was like every dinner would come with a salad or soup and the waiter had to make the salad. And the salad had to be tossed in the dressing. And there was like nine different things you had to put in it, right. And then we had like 12 different kinds of salads. And then there was no food runner, so you had to run your own food, there were no computers, you had to handwrite all this on a ticket, right.

So, I started to notice just from listening to my own emotions, what would cause me stress or anxiety. So when I would get like a table of eight and I would take all their orders on a piece of paper, I would then go in the kitchen and I’d have to pull up a menu and look at the menu and write down the price of every item that I was going to give to the kitchen staff.

So, if they wanted a T-bone steak, I would have to write a T-bone, medium rare. I’d have to put whatever starch they wanted, a baked potato, rice or pasta, right. And then I’d have to put the price of whatever that thing cost on the ticket because that was also going to be the receipt that we gave to the customer at the end.

And all these waiters would be all like huddled around the area where the menu was trying to fight and see over the top of each other to write down all the prices and I’m like, I would get anxiety when I knew I had to go do that. It was going to slow me down and what if my food comes up, I have to run out to the tables while I’m doing this.

What if my drinks are up at the bar? So, I would memorize that menu. I took one home and I just memorized the price of everything. I made flashcards, then when I would go running, I would go in my head and I would say porterhouse $28, T-bone $26, filet mignon, oh, I can’t remember.

Then I would make a note, I need to go look up the price of filet mignon, right. And I would just run them over in my head over and over and over until I had the entire menu memorized. And that would save me the time of having to go look at that menu and write the price in as well as fighting with the other servers to be able to see it.

Now, some people said, “David, that saves you 30 seconds, big deal.” But 30 seconds in the middle of a crunch is huge.

Pete Mockaitis
Oh yeah and again and again and again repeatedly.

David Greene
Over and over and over, that’s exactly right. So, that was the first thing I did. Then the next thing I noticed was I would feel anxiety whenever I had to go like make all those salads, right. And there was a ton of steps that would have to go into each one.

So, one night when we closed, I went to the little salad station and I broke down every step I had to take to make a salad with my hands. So, we would—this may be a lot of detail but we had the salad kept above you at like eye level in this really big bin and we would take a scoop of it out and put it in a bowl, then we would scoop the dressing from the little container into the bowl, then we would grab a fork and we would toss it all around, then we would take us a chilled plate out of a fridge, pour the lettuce on to the plate.

So, we’re like four steps here, then I would take a handful of croutons and a handful of like cut up cabbage and stuff like that, put it on the top. So, we’re at six steps, then there was a tomato that you added that was step seven, then you would have to put that salad plate on a tray behind you and make the next one.

So, I went there and I would practice this like dance of my right hand goes to grab the lettuce, my left hand goes to grab the dressing. I’ve already put the bowl where I’m going to put them in place. How quickly can I get those two things done?

The minute that the left hand is pouring the dressing into the bowl, my right hand has nothing to do, it should already be going to grab the croutons, right. And I would practice how to grab the right amount of croutons fast, how to grab the right handful size of lettuce so that it almost became like second nature to me. And I got to where I could rip through these things in maybe 10 to 15% of the time that the other waitresses were taking because they just kind of went at a comfortable pace.

Pete Mockaitis
10 to 15%, in other words eight times as fast.

David Greene
Yes, I was like, I was a blur, right. And I made it a game like how quickly can I do this. And it almost became fun when you get into the zone and you’re concentrating that hard. So, I could make it eight times as fast. And again, maybe that saved me two and a half minutes. But that two and a half minutes was really big when you were in the middle of a crunch, two and a half minutes when a table wants to order food and you’re not there can be a big impact on your tip, right.

And so, what I would do is I would go through the process of all my responsibilities of a waiter. And I would notice at what point do I get all the anxiety? At what point are we like, “Oh, I hate this part?”—because we all have those thoughts. And then how can I be better or more efficient? How can I solve that problem? Because that was the same problem my competition was having, and they probably weren’t being as purposeful at solving it.

Pete Mockaitis
Oh, certainly. Well, that’s really cool how the anxiety serves as an emotional indicator for what’s happening in sort of a business process flow logistics context as a bottleneck. It’s just like, this thing is slowing it down and you’re feeling the anxiety when you’re in the midst of the slow down.

And so, by really focusing with great, I guess precision on, alright, memorize the price, alright, salad dance, let’s just flash this in half and half again and again. That’s really cool and has applications to all kinds of jobs, like this process seems to be taking a stupid amount of time, let me really go after how I can accelerate it.

David Greene
That’s exactly right and I’ve used that same strategy or technique or whatever you want to call it in every job I’ve had. Like right now I’m a real estate agent. And there are steps to every single transaction that happen and some of those I do really well and some of those I don’t do well or I feel that same level of “oh, I hate this part.”

This is always where I mess it up, right. I’m gonna have to call the client and tell them this and they’re going to give me attitude and my natural response is to be cold and apathetic because I don’t like when I get attitude, right. I’m not going to do well here.

Most of us ignore that feeling of anxiety and we just say like, we either ignore the tasks that would require it or we have half-butt it to get through there because we don’t like it. What I did as a real estate agent was I said, “Okay, this is not my favorite part. How do I get somebody else and train them to do that for me, that does love doing it?”, right.

Now the anxiety is gone and I’m focusing on the parts I like and I’m doing better. I ended up working at a different restaurant after this when I had reconstructive ankle surgery from a basketball injury. And when I came back, I said, what could I do to make more money, I can only take so many tables at a certain point, there’s diminishing returns, you can’t take more.

And I realized I better go work in a more expensive restaurant. So, I found a more expensive restaurant that was much further away. But it was like twice or three times as expensive as the steakhouse I had been working at. And that was my first foray into seeing like, different businesses are structured and use different models. And you have to take these skills I’m talking about and apply them in new ways in different places that you go.

Pete Mockaitis
Absolutely, and that’s good stuff. Well, maybe when we get a couple more examples of you and noticing opportunities and how you’re making it happen. You pulled off a pretty neat stunt in terms of getting way, way, way cheaper rent in California. How did this come about?

David Greene
As far as where I was living?

Pete Mockaitis
That’s right.

David Greene
Yeah, so what I did was I was— man, how did this start? I moved to the Bay Area in California to become a deputy sheriff and go to the police academy. And I was paying a fee to live in a house with a bunch of strangers from Craigslist. So, it was only like $650 a month, which is pretty good rent but I hated it. I mean I absolutely hated living with these mutants that I was having to spend my time with—

Pete Mockaitis
One of them is listening, these mutants.

David Greene
Yeah, I doubt they even know what a podcast is, Pete. These were people, who were very negative, very problematic, complained about everything. It was really rough. And I knew if I wanted to go get like an apartment, rent was around $2000/$2500 a month, and I could have paid it but I just didn’t want to.

So, I heard all the guys at work talking about one deputy who said that he had just bought a house. And they said, “Yeah, he got this big old huge house, it’s just him, his wife doesn’t even live with them right now, she’s overseas working. Why did he buy it?” And they were all kind of laughing at him. And they brought me into the conversation to mock him also because they knew I was like a real estate guy.

And I didn’t think I should mock him, I was like, “What’s he gonna do with all that space? Why did he buy it?” Right. So, I went to talk to Vaughn and I asked Vaughn like, why he did it. He’s like, “You know what, I just always wanted a big house man. I grew up in a small poor area.” He grew up in East LA, was very rough.

He said, “I’ve always wanted a big house. I knew it was bigger than I needed but I didn’t care. I feel great having it.” And I was like, “Well, do you want to make another $300 a month?” He said, “Yeah.” I said, “Let me move in.” He goes, “Okay”.

Pete Mockaitis
Here we go.

David Greene
We’ve got like five bedrooms, I’m not using.
And that’s what the number I threw out, right. Like, I could have said $200, he probably would have went with that. So, I didn’t say, “Hey, can I rent a room?” And he said, “Sure.” And then how much and now we’re negotiating the price. I structured that differently, right.

So, now I move in with this guy, I’m paying $300 a month, no utilities, no electricity, like nothing at all other than this $300 a month, and I have an entire like upstairs mansion completely to myself and a house that was about five years old.

Pete Mockaitis
I love that there. And I think there’s a cool lesson when it comes to wherever there is stupidity, there is often a mismatch of resources and thusly, an opportunity. They say, “Hey David, can you believe this guy?” and like, interesting.

David Greene
That’s exactly right, yes.

Pete Mockaitis
And that’s so much more productive and uplifting, I would say just for people being kind to each other, approach to go there as well as great way to phrase the question. In terms of free money you weren’t planning on having as opposed to “Oh, I have a resource called a room that’s empty. What should that go for?”

David Greene
Yes, and so he obviously wasn’t good with money. We knew that before we started the conversation, right. So, he didn’t value money, what he valued was like, “I want to feel like I’m a somebody.” So, he also got a little jolt out of knowing he was helping me, that made him feel like a good friend, a good person, he was providing for somebody.

So, I think a lot of us make the mistake of assuming everybody values money as much as we do when for him it meant nothing. I mean, I probably could have lived there for free if I could have sold him on how much it would have helped me or what it would have meant to me or if I did chores or something like that. But yeah, you’re right, like, he was very stupid when it came to money. And so there was opportunity that was within that kind of environment.

Pete Mockaitis
That’s good. That’s real nice. So well, nowadays, much of your opportunity identification comes about in real estate investing, and you’ve got a hot new book, The BRRRR Rental Property Investment Strategy Made Simple, which I’ve enjoyed reading. So, there’s a few things I’ll point to, but maybe you could just give us your quick take on what is this strategy? And how do you go about identifying opportunities in this particular context?

David Greene
So, the BRRRR strategy itself is, it’s a cool name first off, but is that really, the idea itself is still pretty simple. The problem with buying rental properties that you spend a lot of money on a down payment, then you spend a lot of money to fix the house up to get it ready.

Now you’ve got a property you can rent out to somebody else, but all your capital is sunk into the house. Okay, so you can’t use that capital to buy another house, that’s the inefficiency in buying rental properties, it takes you a long time to save up all the money that you’re going to dump into the property, right.

The BRRRR strategy involves buying it and fixing it up and once it’s been fixed up and it’s worth more, at that point you refinance it and take your money out as opposed to financing it in the very beginning when you buy it.

So, you can use your own money, borrow from your 401K, borrow from a retirement account, take a HELOC on your house, partner with a friend, however you find the money to buy the house, you go by the most undervalued asset that you can, and you’re looking for opportunity in homes other people don’t want.

You’re literally looking for the stinky, smelly, nasty house that most people look and say, “no, why would I ever want it”, right. Because you’re not going to be renting out that stinky, smelly thing, you’re going to be fixing it up to make it worth more.

It’s very similar to if you want to go buy a business, you don’t want to go buy a business that’s already be running incredibly efficient and would sell for top dollar. You want to step into a business that’s being mismanaged, their sales team is terrible, their operations team is off the hook, they’re spending way too much money, their profits are very thin.

So, you can buy it at a low margin, then use your skills to make that business run more efficiently and better. And then either enjoy the profit or go sell it at a margin, right. It’s the very same principle applied to real estate investing, but it’s so much easier to do it because all you got to look for is a crummy looking house.

So, you buy it, you fix it up, I often add square footage to it if it’s extra small house, I look to add square footage. If it only has two bedrooms, I look to take maybe the dining room and turn that into a bedroom to make it at least three because that’s what makes it worth more. Once that’s done, I pull the money out and I have all my capital back that I can then go use to buy the next house and I can increase the scale.

Pete Mockaitis
Well, I love that and that’s a great lesson right there when it comes to the opportunity, when something seems gross or crummy, there is an opportunity there, whether you’re buying a real estate property or a business. I’ve got a buddy who’s done this with websites.

He says, “Hmm, this is a website that has some decent traffic but could have way more if they just did a few things like A, B, C, D, I’m gonna go ahead and buy that website and crank up the traffic with these smart strategies”, and lo and behold, he’s got a really valuable source over there.

So, that’s cool and of itself is not to be disgusted by the grossness but to say, “ah, there’s something here.” And I think my favorite part of the book that I read was about— so you’ve got your five stages, your buy, your rehab, your refinance, your rent, and you repeat, so BRRRR, that’s four RRRRs, the BRRRR is where that it comes from.

And so when it comes to the rehabbing, I’ve got my property here. And it’s been a heck of a time with contractors and renovation professionals. But you had a really clever tactic when it comes to paying for bids, can you tell us about that?

David Greene
Paying a contract to do a bid for you?

Pete Mockaitis
Right.

David Greene
Yeah, so if you’re getting a contractor that’s going to go out to the house, take his time, give you a bid of what it’s going to cost to fix it up, and then you’re not using them, you’re not going to get a very good contractor. At a certain point, they’re not going to want to give you anything for free.

So, you can get free bids from guys when you’ve worked with them in the past. But if you haven’t worked in the past or you don’t have a very strong, like future potential to give them a lot of business, they’re going to want you to pay. If you really don’t want to pay, you want to look for ways around that, like “how can I bring this person value, so he’s not going to have to necessarily charge me all the time for whatever this bid that I’m looking for is,” right.

One of the ways that you do that is you send them other people who need the same work, you send them referrals, right. What business doesn’t want referrals, any sales person whose job is to find business, if you send them referrals, you’re helping them do their job, they’re going to like you, they’re going to give you something back, right.

Another one would be I would say, “Hey, if you get this job, I’ll put you on my social media, I’ll let everyone know you’re the one that did this, will take the best pictures, the best angles, it’s free promotion for your business.”

Contractors are usually not business minded people. They don’t understand bookkeeping, let alone marketing, sales and a CRM, right. So, when you’re providing this stuff, it’s immensely valuable to them because it’s like magic. Like “I’d never even thought of doing something like that,” right.

And I like to take that approach with all the people that I’m using is, “what can I bring?” Or what do I know that’s easy for me that I can use to help them that’s very difficult, much like doing the side work for like a woman who’s worked really hard and maybe has two kids, and she’s trying to raise them alone is the end of the day. She’s been up since six o’clock in the morning. She’s exhausted, she does not want to clean that coffee station. I probably slept until 10:30 that morning. I’m a 19-year-old dude, I’m in great shape. That is not a very big deal for me to go clean the coffee station, but it meant a lot to her.

Pete Mockaitis
Understood. Yeah, that’s excellent. And so, what I think is fun about your mindset that differs from any others would be like, “I’m not going to pay someone to come by and not do anything.” But you’re thinking, “No, no, no, I am paying someone for the bid in order to (1) get more bids and explore more people to see what they can do. And hey, maybe you’ll end up saving coming out ahead of a deal, and (2) to build up a relationship with the folks you find to ultimately be the rock stars.

David Greene
Yeah, when you think about the value that a good contractor can bring you versus the price of a bid, it’s not even worth comparing, right. A good contractor can make me tens of thousands of dollars just in the work that they’re doing. For me to give them 100 bucks for their time to go make a bid means a world to them but it’s nothing to me with what they’re going to bring me, right.

And that’s assuming that they’re not actually bringing you deals. I get deals from my contractors, like someone will say, “Hey, can you come look at my buddy’s house, it’s in bad shape,” and he has no one to do? And they’ll go look at it, and they’ll say, “Yeah, it’s gonna cost you $50,000 to fix it,” and those people say, “We don’t have $50,000, what are we going to do? I guess we give it back to the bank.”

I want him coming to me and saying, “Hey David, there’s this opportunity over here, they’re going to give the house up to the bank,” where I can step in and buy it and then he gets his job, he gets his $50,000 job that he wanted and I get an incredibly good deal that’s worth a whole lot more to me. I mean, some of these deals, you’ll make $50,000 in equity on an average mediocre one, right. That’s not a bad return for the hundred dollars I was willing to pay that guy to give me a bid.

Pete Mockaitis
That’s huge. I do the exact same thing with a lot of hiring for I guess, they’re contractors in terms of they are sort of contract workers in sort of the digital or information knowledge working space in terms of it’s like, “Hmm I want someone to write something or to design something, or to do transcripts,” or whatever it may be.

I will like to take a peek in terms of “Okay, well, what can you do? Let me pay you for a sample,” even though if I have no need to use that sample, just so I could see “Oh, wow, that looks way better than the other.” So, I’ve done this before is where I’ll pay 30 people for a sample piece of work, and then say, “Ah, these are the two who are really rocking it. I want to use you now hundreds of times over.”

David Greene
Yeah, and it’s a model that a lot of industries use often, like imagine a music producer trying to find the next big boy band or something, right.

Pete Mockaitis
I’m imagining that right now, with all the guys, high five again, “Hey, girl—”

David Greene
Yes.

Pete Mockaitis
I’m right there with you, David.

David Greene
Exactly. Is there a better ROI than a boy band that blows up, makes billions of dollars to sing and dance, and you sell throw pillows and all kinds of other crazy stuff. They have to go through a whole lot of people that are underwhelming, right. And they’re going to have to spend a little bit of time and money taking people lots of dinner, flying around to get to know them. But when you find that one rock star, you don’t care how much money you spent, you’re earning so much more back in the process.

Pete Mockaitis
I didn’t think we end up at boy bands but I’m glad we did.

David Greene
I don’t think that’s ever come up in one interview I’ve ever done. Good job Pete, you pulled something out of me no one else has.

Pete Mockaitis
Oh, thank you, thank you. Well, tell you before we shift gears to hear about a few of your favorite things, do you have any kind of final tips that you’d share with others who were trying to notice hidden opportunities, in their own careers, in in real estate or send the course of living life?

David Greene
Yes, I’m a huge proponent of Warren Buffett’s advice that you should be fearful when others are greedy, and greedy when others are fearful. Now he gives that advice in the context of when you’re buying stocks or when you’re investing.

So, when everyone else is saying buy, buy, buy, you should be a little worried, pull back. When everyone else is saying you’re an idiot, don’t buy, the sky is falling and they’re running around like a bunch of chicken littles, that’s when you should actually have the courage to jump in and buy.

I’ve taken that reasoning or that principle, and I’ve applied it to almost everything else. So, when everyone at my job was like, “oh, she’s coming again, I don’t want to deal with her” and they ran away, I ran towards her, right.

When their emotions were saying, “oh, this anxiety, I hate it, I should quit” or “I don’t want to take more than three tables because I don’t like the feeling I get when I do,” I would say I don’t like that feeling either but what does that feeling signaling to me that I could be improving, right. And that’s what drove me to be better to memorize the menu to get faster and making salads and bunch of other things I did that made me much more efficient, right.

Like one thing I didn’t even mention is most waiters would go to the kitchen, get ketchup come back, drop it off, the person would say, “can I have some pepper”, go to the kitchen, get the pepper come back, drop it off, I would make around to my tables and talk to all six of them and have all of them see what they needed, go to the kitchen, get all six tables’ stuff and in one trip, come back and drop it all off.

You do that seven or eight times a night and you’re saving yourself like 30 minutes of time, right. Just that one thing. But that was because I noticed every time I was going back and forth between the kitchen, the table and anxiety, “oh, I’m falling behind”, right. Everybody else was, their answer was to quit, to pull back, to try less hard, to give less. And I went the other way and I busted through.

That’s the advice that I would give people. When you have that boss that just drives you crazy and you can’t stand them, right. There’s a reason they’re acting that way. Understand what’s in their head. Are they getting it from their boss? Are they getting this pressure coming downhill? Are they insecure and they don’t really know how to do their job very well. As a cop, I got that all the time by supervisors that knew the least about law enforcement were the hardest to work for, because they were constantly afraid that a mistake was going to be made and they didn’t know how to predict it.

Well, I knowing what should be done was their favorite because I would say I would do things for them basically. So, they didn’t have to have anxiety when they were just all over me about stupid details, rather than pushing back. I was like, “oh, this guy’s terrified that something’s gonna go wrong,” right.

So, I would step in and do a lot of this stuff for them to make sure nothing did go wrong. You become their favorite. They stop ragging on you. And if and if anything, they look for opportunities to help you, right.

That’s the advice I would give your listeners. If you have a problem with the boss and you don’t like the way it feels, ask yourself how you can run towards that problem instead of away from it. If they’re constantly hounding you about deadlines, do whatever it takes to be better at your job to get it done before the deadline, then go to your boss and say, “Hey, I’m done, what other problems you have stacking up I can help you with?”, right.

Pete Mockaitis
Yes, that is so perfect and it’s so funny when you mentioned the Warren Buffett advice. I thought “Oh yeah, I read a really great article about that simplifies from Warren Buffett, guides me to deals no one else’s findings, like, “Oh, David wrote that—!” I read that years ago and it’s so good.

David Greene
That’s so funny.

Pete Mockaitis
So, if I may I’m going to embarrass you to read an excerpt, it says, “I have to target the people that others are overlooking. I want a lender able to actually return my calls. I want a property manager who doesn’t have a portfolio so large that they can’t even tell me when I have a vacancy because they’re too busy. And I want a handyman who can go immediately when something significant breaks as opposed to chasing the folks who have a ton of amazing reviews and are booked up for weeks and months to come.”

David Greene
Absolutely.

Pete Mockaitis
So good. Well, David, let’s shift gears and hear about a few of your favorite things now, can you share a favorite quote something you find inspiring?

David Greene
Well, the Warren Buffett one is pretty good. But I got another one, I got another one. It’s a Bruce Lee quote, which makes it cool right off the bat ‘cause Bruce Lee said it, right. He said, “I do not fear the man who knows 10,000 kicks, I fear the man who has practiced one kick 10,000 times.”

That’s what I did with making salads or memorizing the menu. And I got way better at that one thing and that one thing was super important for whatever my goal was, which at the time was having more tables, right.

The reason I love the BRRRR strategy with rental property investing is that it allows me to spend a dollar, get a house, get that dollar back and buy another house with the same dollar. I can scale way, way, way faster than someone who has to earn $50,000 and put that into a house and then wait till they can earn another $50,000. By buying more houses, I’m practicing that kick more than other people. And I become better and more efficient at doing it than the people who buy maybe one house a year.

Pete Mockaitis
And could you share favorite study or experiment or a bit of research?

David Greene
I love the Stanford one. I’m sure a lot of your people probably talk about that, one where they brought little kids in and they said, “Hey, I’m going to leave this room, and here’s a marshmallow. If you eat this marshmallow, that’s okay. But if I come back and the marshmallow still here, I’ll give you another marshmallow.”

And the little kids that were able to wait for the second marshmallow before they ate the first, they tracked them all. And they found that they were much more successful in work. They had much higher happiness scores, they had much less like, problems like with law enforcement and mental disorders and alcoholism and substance abuse. And the implication from the study was that the better you are at delaying gratification, the happier and more successful you’ll be.

Pete Mockaitis
That’s a good one. Thank you. And how about a favorite book?

David Greene
Man, I got a couple but I really, really, really like the book So Good They Can’t Ignore You by Cal Newport. It’s funny, we just interviewed him on our podcast yesterday. So, in a couple weeks, that one will be coming out. That’s an incredible book at just basically—a lot of the points I’m making right now, he was making similar ones, but he’s just sounds a lot smarter than me because he’s a Georgetown professor, of course. But I read it and I was like, “Yes, that’s it, that’s what I’ve been doing!” And now there’s a person with a PhD who’s saying the same thing. So, people will actually believe me.

Pete Mockaitis
Well, I’d say different voices, different credentials, a PhD or a fat portfolio of properties, I think both adds credibility to it, yeah. How about a favorite tool that helps you be awesome at your job.

David Greene
Google Drive, believe it or not, is a huge, huge help for me. Part of part of the problem with me is I’m involved in a ton of different things all the time and it’s very hard to keep my thoughts organized. Google Drive works really good for taking a thought that I have, getting it out of my head, putting it on, I would say paper but it’s actually a computer screen that looks like a piece of paper.

And from there, I can kind of flesh out whatever that idea was, and assign it to someone else and say, “I need you to take this and I need you to make it a reality.” So, Google Drive is one of the tools that I really, really, really like and it’s simple but before I had it, I was immensely frustrated with just I don’t know how to turn this process into something someone else can do. And making checklist on Google Drive and giving it to people, making a video showing how I’m doing this like a screenshot and putting the link in Google Drive that I gave to someone really brought all that stuff to life.

Pete Mockaitis
Oh, yeah, that is so huge. And for your video making, I don’t know if you’re already on to Loom as in www.useloom.com but it is so good.

David Greene
Yeah, shout out to my best friend and buyer’s agent Kyle Rankie, he told me about Loom and it’s been incredible. We were using Screencast-O-Matic before that. But it like limits you at 15 minutes, which I had to learn the hard way after making like an hour of video and then realizing it stopped recording at 15 minutes.

But Loom doesn’t do that. So yeah, we use that. Like as a real estate agent, I’m constantly training other agents on my team and I find myself saying the same thing a hundred times a week. So, now I use Loom to make these videos and say, “Just watch that.” And that should answer your question.

Pete Mockaitis
Oh, it’s so good. I like to have Loom with, I’ve got my text instructions on the left-hand side, I’ve gotten the website or whatever I’m working with on the right, and so you can reference them both. And then you can read the text and so it’s like unmistakable, what I meant by any step along the way. So, so good stuff—

David Greene
Beautiful.

Pete Mockaitis
And how about a key nugget, something you share often with your team or readers or listeners that really resonates with them and they repeat back to you often?

David Greene
I think “rock stars know rock stars” is a phrase I say a lot that sounds simple but it’s actually really deep. It’s just this concept that the best people at what they do hang out with other people that are the best at what they do. And that just this is a principle we see throughout life.

I’ve heard people say “eagles don’t fly with ducks”, “birds of a feather flock together”, like all these little sayings but when people ask me, “I need someone to do X, how would I find them?” The answer is always going to be “who do you already know that’s doing Y that would know somebody in the world of X?” That’s where I find my referrals from.

So, if you were to say, “David, I need to figure out how to solve this problem,” my mind would immediately go to who do I know that’s doing that at a high level? And if no one, who do I know this doing something similar to that at a high level? And who would they recommend?

I think most of us take way too much responsibility on ourselves to figure things out, like I’m going to go through Yelp and read 100 reviews. And I’m going to Google this for seven hours and then call all 20 people and interview each of them as if we actually have the credentials for like reading someone’s mind and knowing from an interview if they’ll be good, as opposed to talking to someone who’s already really good at it and saying who would you use?

“Oh, you know what, actually that guy, he’s great. My buddy uses him and he’s doing a high level. And that’s where I start”.

Pete Mockaitis
Yeah, that’s so good. And David, if folks want to learn more or get in touch, where would you point them?

David Greene
I have a personal blog, www.greeneincome.com where they can follow me there and read some of the articles that I write. I’m very involved at www.biggerpockets.com. This is the website where we teach people how to invest in real estate for free and the podcasts that I run, the books I publisher are through there.

And then I’m DavidGreen24 on all social media, Instagram is the when I check the most but I’m also on Facebook, Twitter, LinkedIn, like all those sites, Greene is spelled with an E. So it’s DavidGreene24.

Pete Mockaitis
And you have a final challenge or call to action to issue to folks seeking to be awesome at their jobs?

David Greene
Yeah, what I would say is most of the things that cause us to be frustrated with our lack of success can be identified as a barrier to entry in some way. There’s something making it hard for you to get from where you are to where you’re going, right. Learn to look at that like an incredibly good thing. Because that’s keeping all of your competition from raising up to go anymore. When you figure out what you need to do to get through that barrier to entry, there’s very little competition on the other side of it, and you rise very quickly.

So, for me in this example I gave the barrier to entry was memorizing menu prices. That was all that I had to do. Make some flashcards and memorize a frequent video. And the next thing that I know or memorize the menu, my boss was like, “Hey, David can handle tables, give them all to him.” And when they would get three, I would get eight or nine and then I would stay late to close and they were all going home, and when they were getting other four or five and I can triple or quadruple my income.

So, it’s the same way like being a real estate agent, it’s very hard to get started it because there’s no one that gives you business. It’s on yourself to get it and for most of us, we don’t know how to go find business on our own. That’s a big barrier to entry, keeps a lot of agents from doing well.

But if you can solve it, like all the business is yours because nobody else could figure it out. So, as I’ve gotten older, I’ve actually looked for only opportunities where it’s difficult to do because I know there’s not going to be as many people competing with me, and it will be easier to succeed once I figure it out.

Pete Mockaitis
I love it, once again, you’re reframing for opportunity. David, this has been a huge pleasure. Thank you and good luck with your real estate investing and book writing and all you’re up to.

David Greene
Thanks Peter. I really appreciate it. Have a great day.

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