MB 079: How I Lost $2M in Multifamily and Lessons Learned – With Damion Lupo

One of the big real estate rookie mistakes is to turn into a Walmart shopper as you build your team. It is easy to see a coach, lawyer, or property manager as an expense and choose to go with someone less experienced—or even elect to do the job yourself. But today’s guest can attest to the fact that a quality team is an investment that can save you millions in the long run. Damion Lupo is a serial entrepreneur with a ‘think big’ mentality. In the last 25 years, he’s founded more than 30 companies in a number of industries including insurance, precious metals, venture capital, financial consulting and real estate. Damion is also a black belt in three different disciplines and the architect of Yokido, his very own martial art. Damion’s personal philosophy centers around self-responsibility and a conviction that candor, growth and a big vision provide the only path to freedom. His commitment to these values led to the creation of Total Control Financial, a FinTech that seeks to reinvent financial control and empower Main Street with the tools of financial transformation. Today Damion discusses his first multifamily deal, a 119-unit property in Memphis that resulted in a $2M loss, and the lessons he learned from the experience. He shares the transformational power of failure, the importance of building a team you can trust, and the extraordinary value of a mentor. Learn how Damion’s shift from consumer to contributor had a revolutionary impact on his life. Key Takeaways  [4:03] How Damion got into real estate ‘Tripped’ into it Read Rich Dad, Poor Dad Attended seminar for additional resources Attracted to big-time cashflow potential Quit insurance to pursue real estate [5:44] Damion’s first steps in real estate Bought house with Visa card Planned to sell on payments after remodel Strategies in place to pursue more properties, but wasn’t taking action Failure to return phone calls almost led to bankruptcy [7:18] How Damion was able to avoid bankruptcy Gained momentum by purchasing eight houses in month Purchased another 50 houses over next year (AZ, AL)  [7:58] How Damion got stretched too thin early in his real estate career Despite success, decided to try something different Started high-end rehabs all over country No team in place to help Lost track of projects Not paying attention to numbers Let ego take over (want more and more) [9:35] The lessons Damion learned from his first multifamily deal (119-unit in Memphis) If you can’t be there, send team member with ‘massive integrity’ Listen to the numbers, get out if necessary Stress test your team before going all-in Don’t delegate too much, too soon [14:31] What Damion could have done differently on the Memphis deal Choose experienced partner Move to site or have partner on-site Invest in an experienced team, especially project manager Leverage experience of mentors (make new mistakes) [19:50] The value of a coach/ mentor Damion lost $5M over two years after firing coach Powerful to have people ‘call you on your shit’ Don’t let ego get in the way of listening Helps you be methodical (rather than emotional) Offers perspective, intuition to pass on bad deals [24:48] Damion’s advice around leading a team Clarify expectations up front Have team share back what was heard in own words