RG 064 – Massive action equals massive results with Michael Quarles
- Michael is an entrepreneur, investor, contrctor, author and broker.
- At 18 Michael built his first duplex.
- He has since built over 70 new construction units.
Nuts and Bolts
Michael has always been involved in construction because his father owned a construction company. This meant that he worked
on building sites during all school holidays and learnt about the property business. When he was 18 and waiting to join the air force he saw an ad for an R2 lot and so he wrote a cheque and purchased the land. An R2 lot means that you can built a residential property for every 3000 square foot. Michael built a duplex and learned a lot by the mistakes he made on this project. He started with mistakes in financing because his first cheque bounced and he didn’t know what escrow was however all of these mistakes helped teach him for next time. Although he didn’t know what he was doing much of the time, he managed to make $16,000 on the property and it’s still standing today. Michael believes that mistakes are only mistakes the second time you make them.
Michael spends a lot of his time helping people face their fear of failure in business. He views failure slightly differently to most people; most people are scared of doing things because they might fail whereas Michael is scared of failing if he doesn’t do things. If you don’t fail along the way then you can’t appreciate what you have when you get there. Michael advises people who are scared of failure in real estate investing to go and talk to people that have the resources you want to use. If you don’t talk to them then you’ve already lost. If you really want to succeed then Michael suggests changing your friends and hanging around with the people you want to be like. Set daily goals and always strive to be better today then you were yesterday, even if it’s only a small thing like saving an extra 10 cents. Michael’s main message is to live a life where you are responsible to yourself and live in an ethical moral and legal manner.
Michael believes that with extraordinary systems you can hire ordinary people but if you have ordinary systems and extraordinary people then you’re doomed for failure. You can’t replace at the same level with people as you can with ordinary people. Because of this, Michael has set up extraordinary systems that can be placed in any market and start working immediately. He created categories of people to do the things he didn’t want to do, for example cold calling. When you (as a potential seller) call Michael’s company you will talk to an Alex who will gather your details and forward you onto a Ryan for negotiation. If negotiation goes well then you will be passed onto an Angel who will manage the deal and improve it. The Alex/Ryan/Angel system has been replicated all over the country whenever Michael expands the business. By using a system like this it’s easy to train new recruits and replace any workers who move on, this creates boots on the ground in any new market so that you don’t have to wear the boots.
Strategies and Goals
When Michael started his investment career he was a contractor but when the fees for building properties grew it became more sensible to buy a built house and do it up to sell instead of building a new one. Now with his Alex/Ryan/Angel system he doesn’t fix and flip but buys at the cost it’s worth in the current condition then he sells to someone else to do the fix and flip. He makes money on the space between what he buys it for and what it’s potentially worth. Michael uses this strategy in California, Texas, Florida, North Carolina and Ohio and he never visits the property because that could lead to emotional involvement and it’s better for the systems to do this virtually.
Top 5 investing tips
Most important habit – Tries to thank everyone he works with on a daily basis
Most influential person – The gentlemen who was good to him at 18, himself and god.
Most important tool – His phone.
Most important mistake – Not being responsible with money – should treat it like a person in life and not an object.