Ep 44: The Relationship Dimension of Real Estate Investing with Travis Smith, TribeVest
People get into real estate for any number of reasons, one definitely being that it’s an excuse to get together with the people they love! Partners take on a communal risk which they fight for together and deep bonds can be forged through this process. This is one of the dimensions of real estate investing that Travis Smith and his brothers are satisfying with TribeVest, a platform that helps people link up and pool capital to buy property across the country. Travis is CEO of the company, and he joins us on the show today to talk about how the whole project came about, how it works, and the value it is bringing particularly at this moment in time. Travis tells listeners about how he and his brothers got into real estate to diversify their investment portfolios and to keep in touch. He talks about how they raised capital slowly together by making manageable monthly capital contributions, and we hear about the benefits of this strategy.
Travis lets us in on how he used his background in fintech to build up the software for the website, and all the functionality it offers to link strangers with one another and help them unlock a future together by forming mutual funds. A key takeaway is the fact that sign-ups have doubled on the platform in recent weeks and we speak about how this could feed into the great restructuring that is happening with plans to make money since the crisis. We wrap up our conversation hearing about some unusual but fun investments Travis bought with his brothers and exchanging thoughts on some of the fundamental reasons people get into real estate. You should definitely catch this one!
Key Points from This Episode:
Travis’ mission to usher regular Americans into real estate by pooling capital.
A transition from retail into fintech and how software-enabled Travis to achieve his goal.
The story behind TribeVest’s origin; Travis and his brothers’ capital pooling strategy.
Side hustles and why Travis and his brothers didn’t pick a no money down strategy.
Sexy deals with no ROI versus the long and boring but lucrative road into real estate.
Vital lessons need to be learned by taking the slow route into real estate.
The Profit First strategy: quick fixes versus nabbing deals after slowly building capital.
Getting past strong emotions and attachment to deals.
Specs of TribeVest’s functionality and how it prioritizes the relationships of its users.
Provision for rules and hierarchies by the TribeVest platform.
Reasons why TribeVest has seen an influx of new investor users since coronavirus.
The relationship dimension of real estate: the country club model.
Ranges and scopes of deals and syndications Travis and his brothers cut their teeth on.
Opportunities and challenges Travis is facing in his investments due to coronavirus.
Percentages of TribeVest users doing it for money versus the social aspect.
How real estate coalitions satisfy survival instincts and tribe mentality.
“By forming and funding that investor group, that tribe, we unlocked a future that we could have never dreamed of.” — @TribeTrav [0:06:48]
“Where our real value is is that we are that neutral third party that puts relationships first.” — @TribeTrav [0:20:32]
“Nine out of 10 millionaires are real estate investors. Most of them probably because they are networking with people that help them do that. TribeVest is a way of leveling that playing field.” — @TribeTrav [0:29:01]
“We didn’t invent tribe investing. We’re just hoping that we make it ten times easier and take the pressure off on the relationship side so that more people do it.” — @TribeTrav [0:42:03]
Links Mentioned in Today’s Episode:
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