BAM founder and CEO, Ivan Barratt, made a recent appearance on the Investing for Life podcast and talked with host Tamar Mar about his history in real estate, new plans on the horizon, who he credits with his success, and all sorts of things in between. We hit the high points of Ivan’s latest podcast appearance in today’s BAM blog…
As always, Ivan’s podcast appearance is full of insider information and industry insight that is well worth your time to take a listen – just click here. If you’re short on time today, just read on for our interesting snapshot of Ivan’s chat with Tamar Mar on Investing for Life.
Ivan’s Start in the Industry: Ivan has been in and around real estate all his life, with his father owning rental properties. After graduating from I.U. with a degree in real estate, he went to work for a property developer here in the city. Ivan credits having a “front row seat to the Great Recession” as one of the great “gifts” of his early professional life. He decided to start a company that was sustainable with as little risk as possible; for him this meant property management that he would get right and scale. BAM began in a spare room with only a few clients.
Why Property Management: Ivan says that most people don’t like to do property management (and it’s not his favorite part either) but he knew that if he got it right, he could have recurring income, scale-ability and give him the chance to work on bigger and better deals.
What’s Harder than Real Estate: According to Ivan, any operating business is harder than real estate. He said the difficulty is in getting people in the right place, and “making the fly wheel spin faster.”
On Having the Right Fit with Investors: Ivan says that they’re very selective in taking on clients. He says that if a potential client doesn’t like the culture, the way they do things, or allow autonomy, it just isn’t the right fit. One area of conflict in autonomy can come down to renovation: according to Ivan, when it comes to replacing a roof, renovating units, etc. they have to be a one-stop shop because anything less leaves too much room for blame and for things to fall apart.
How He Spots a Rookie vs. a Seasoned Investor: Ivan said that a rookie investor will ask early on about a management fee. A seasoned investor may ask for a rough 12-month operating budget for the deal, or ask about a payroll number that a broker has passed on.
BAM’s Employee Stats: Ivan says that they’re probably a little heavy on numbers, and all are full-time employees. As he puts it though, they’re always creating capacity in the machine. He says that they offer “more holidays than a bank” and want everyone to buy in to the culture and the mission.
In the Works for 2019: Ivan will be launching his first fund in 2019. He tells host Tamar Mar that he always intended to go big. As he says, there are two options: stay small and grind out a job, or go big and have an abundant, rewarding life for you and your family. The fund will allow Ivan to raise capital every day and not have to start and stop.
Who Ivan Credits with His Success: Ivan has a long list of people he credits with being where he is today, starting with his wife who believed in his vision and was the bread-winner in the early days of starting BAM in the spare bedroom. He also mentions his business partner, his executive team, and says he’s had a lot of great mentors. In his words, “it takes a village.”
Recommendations: Ivan suggest listening to, or reading, Grant Cardone. His book “If You’re Not First, You’re Last” is one of Ivan’s favorites. He also recommends YouTube videos but taking a deeper dive by catching a sale on some of Cardone’s material.
Ivan’s Goals: Ivan says that one big goal is to reach 20,000 units but he also doesn’t look at the summit of the mountain while he’s climbing. He also wants to be a better husband and father, and always keeps up on self-improvement material as well as continued sales education.
Ivan on Living an Intentional Lifestyle: In Ivan’s view, living an intentional lifestyle is being the spiritual leader of his family, getting the thumbs-up from his wife, raising healthy, well-adjusted kids, and having the freedom to do anything, go anywhere, whenever they want. To Ivan, income property and growing business is the only way to achieve that.
Interested in learning more from Ivan? Go to ivanbarratteducation.com! You’ll find educational videos and articles featuring Ivan Barratt and his wealth of industry knowledge.