We caught up with the brilliant and insightful Joe Homs a few weeks ago and have shared our conversation below.

Joe, thanks for joining us, excited to have you contributing your stories and insights. We’d love to hear about the early days of establishing your own firm. What can you share?

Four years ago, I embarked on a transformative journey as the Regional Broker for Pellego, a rapidly expanding real estate brokerage with a unique virtual model. What initially drew me in was Pellego’s innovative approach—95% virtual, investor-friendly, with lightning-fast support and a groundbreaking 100% commission structure.

Pellego’s website, www.pellego.com, was a game-changer. By directly accessing MLS data, it empowers investors with crucial information like ARV (After Repair Value), rehab costs, closing expenses, commissions, and projected profits. This technology-driven platform intrigued me, and I knew I had to be part of it.

Since joining Pellego, I’ve witnessed remarkable growth. From a modest team of 40 agents, we’ve surged to an impressive count of around 280 agents. Our appeal lies in our competitive commission rates, cutting-edge website, and my extensive 43 years of experience in real estate investment. Notably, over 75% of our agents are investors themselves or specialize in working with investors, creating a dynamic and knowledgeable community.

Interestingly, the majority of our agent acquisitions have stemmed from a Craigslist post, with the remainder finding us through Google. Once they reach out, my role is to gently guide them towards Pellego—a task made easier by our website’s compelling features and my own track record in the industry.

Reflecting on this journey, I can’t stress enough the importance of carving out a niche within your expertise. Whether you’re starting a business or venturing into a new career, having a distinct specialization can be the key to success. Pellego’s focus on investor-friendly services has certainly set us apart and propelled our growth in the ever-evolving real estate landscape.

Joe, love having you share your insights with us. Before we ask you more questions, maybe you can take a moment to introduce yourself to our readers who might have missed our earlier conversations?

“From Hammer and Tool Belt to Real Estate Mogul: A Journey of Learning and Teaching”

My initiation into the world of real estate investing began at an early age, under the tutelage of my late father. His philosophy was simple yet profound: “Go get your tool belt and hammer, we have a job to do.” With this hands-on approach, he imparted invaluable lessons that laid the foundation for my career.

In my formative years, I cut my teeth on “buy and hold” properties alongside my father. These were the building blocks of my understanding of real estate dynamics. At the tender age of 20 in 1975, I purchased my first primary residence, followed by my inaugural investment property at 22 in 1977—a rental that came into my possession amidst a divorce settlement. The seller’s proposition was straightforward: assume the first mortgage and rectify two late payments, and the property was mine. Little did I know, this investment would set the stage for a lifelong journey in real estate.

Over the years, I delved deeper into creative financing strategies, exploring avenues like seller financing and subject-to properties. One of my earliest investments, the rental property acquired through a divorce settlement, still stands today, its mortgage entirely paid off by tenants—a testament to the enduring value of strategic investing.

Living and operating in California presented unique challenges, particularly with the “buy and hold” approach. As market conditions shifted, so did my strategy. Transitioning to “Fix and Flips” proved to be a lucrative pivot, offering flexibility in any market environment. With astute purchasing decisions, diligent rehabilitation efforts, and timely sales, I generated quick cash flow to fuel subsequent investments and fortify my portfolio against market downturns.

Navigating through market cycles, I learned to adapt and evolve. During downturns, I reverted to the “buy and hold” strategy, leveraging market fluctuations to acquire properties at opportune prices. My conservative investment approach garnered attention, attracting individuals eager to learn from my experiences. I willingly shared my knowledge, emphasizing the importance of prudent decision-making and calculated risk management.

The most recent downturn proved to be the most volatile yet. Sensing the impending storm, I safeguarded my assets, biding my time on the sidelines. As property values plummeted, I seized the opportunity to acquire distressed assets, capitalizing on the inevitable market rebound. What once seemed like a setback transformed into a strategic advantage, propelling my portfolio to new heights.

Driven by a passion for sharing knowledge, I embarked on a mission to educate others. Starting with my own children, I instilled in them the principles of savvy investing and sound financial stewardship. This passion culminated in the establishment of my own real estate brokerage and later, the stewardship of a discount commission brokerage, Pellego.

For me, flipping homes is more than a business—it’s a calling to empower others. Through free educational initiatives, I equip aspiring investors with the tools and know-how to navigate the real estate landscape. My only request? A simple gesture of gratitude—coffee or lunch—to facilitate meaningful conversations and mentorship.

In a world where success is often measured by wealth amassed, I find fulfillment in the lives I touch and the legacies I help build. From humble beginnings with a hammer and tool belt to a seasoned real estate entrepreneur, my journey is a testament to the enduring power of knowledge, perseverance, and the willingness to pay it forward.

Flipping is a numbers game, and anyone can flip with the right knowledge. I teach others how to flip homes for FREE and only ask that you pay for coffee or lunch to meet with me at www.calendly.com/joepellego.

Let’s talk about resilience next – do you have a story you can share with us?

In the ever-fluctuating landscape of California real estate, my business partner and I encountered a valuable lesson during one particularly challenging downturn. As the market began to rise and peak, we seized an opportunity to flip a home, fueled by optimism and ambition.

My partner, a skilled contractor, took charge of rehabilitating the property, including the installation of kitchen cabinets—a task that unexpectedly consumed six months of valuable time. Compounding our challenge was the decision to finance the venture with hard money at a hefty 10% interest rate.

As the market started to soften, we faced the harsh reality of misjudging both the timeline and the listing price. Despite my reservations, we listed the property too high, driven by optimism and perhaps a touch of overconfidence. It was a costly mistake, one that resulted in a significant loss of approximately $80,000 when the property finally sold.

In hindsight, this experience served as a stark reminder of the importance of due diligence and prudent decision-making in real estate partnerships. While collaboration is essential, it’s equally crucial to carefully vet potential partners and ensure alignment in vision, strategy, and execution.

Furthermore, it underscored the significance of understanding market dynamics and adhering to a realistic timeline. As the designated real estate expert in our partnership, I realized the imperative of asserting myself when necessary, even if it meant challenging my partner’s decisions. In hindsight, I should have exercised greater authority in setting the listing price to mitigate potential losses.

Despite the setback, we persevered, closing on several more properties that year and gradually recouping our losses. This experience instilled in me a newfound sense of caution and vigilance, guiding my approach to future investments.

In the unpredictable world of real estate, setbacks are inevitable, but they also offer invaluable lessons for growth and resilience. As I continue to navigate the ever-changing landscape of California real estate, I remain steadfast in my commitment to prudent decision-making, diligent risk management, and the relentless pursuit of expertise.

Any thoughts, advice, or strategies you can share for fostering brand loyalty?

In the competitive world of real estate, it’s easy to fall into the trap of focusing solely on closing deals and moving on to the next transaction. However, what sets top agents apart is their ability to foster lasting relationships with clients, nurturing brand loyalty that transcends individual transactions.

Far too often, agents overlook the importance of follow-up and ongoing communication with past clients. Yet, as the saying goes, “you’re only as good as your last transaction.” It’s incumbent upon agents to maintain regular contact with past clients through various channels, whether it’s through emails, phone calls, or even in-person meetings over lunches or coffee.

Why is this so crucial? Because brand presence is everything in the real estate industry. By staying top of mind with past clients, agents increase the likelihood of repeat business and referrals, which are the lifeblood of sustained success in this business.

Yes, maintaining consistent communication requires effort and dedication, but the dividends it pays in terms of repeat business and referrals are immeasurable. Fortunately, there are tools and programs available that can streamline this process, such as drip email campaigns and automated reminders for important dates and events.

In essence, building lasting client relationships isn’t just about closing deals—it’s about cultivating trust, loyalty, and rapport over time. By prioritizing follow-up and consistent communication, agents can position themselves as trusted advisors and indispensable partners in their clients’ real estate journeys. And in an industry where reputation is everything, that’s a competitive advantage worth investing in.

Contact Info:

• Website: www.joehoms.com
• Instagram: https://www.instagram.com/joehoms/
• Facebook: https://www.facebook.com/JoeHomsRealtor/
• Linkedin: https://www.linkedin.com/in/joehomsrealtor/
• Twitter: https://twitter.com/JoeHoms4RE
• Youtube: https://www.youtube.com/joehoms
• Other: www.pellego.com

Image Credits
All mine