From one vending machine to Real Estate Empire |Japan Elite|Entrepreneur,Investor&Real Estate Expert

Summary

The speaker recounts their journey from an initial focus on jidam (vending machines) to a successful real estate venture in Japan. Starting with 17 rooms in Saitama, they rapidly expanded to 45, implementing strategies like no rent increases and free Wi-Fi to retain tenants and maximize profits. Despite challenges, they found success, especially during COVID-19, by minimizing renovation costs and leveraging their network for reduced service fees. The narrative highlights the importance of trust, calculated risks, and adapting business models for long-term gains in the property market.

Takeaways

• 🚀 The speaker's initial venture was in jidam (vending machines), not real estate, but they transitioned into real estate after a suggestion from a senior executive in a fan company.
• 🏢 The first real estate project started with 17 rooms in a Japanese condominium in Saitama, which was a typical Japanese place with Japanese contracts and practices.
• 📈 The speaker quickly expanded to 45 rooms within the same year, including properties in Shinjuku and Kawasaki, with aggressive strategies and trust in the advice given.
• 💡 A realization that profit requires hard work led to the decision to manage properties more directly, including firing kandas (management companies) and bringing in their own at a lower cost.
• 🤝 The importance of networking was highlighted, with a personal network from insurance, renovation, and advertising agencies helping to reduce costs and increase profits.
• 🏠 The speaker's policy of not raising rents and offering free Wi-Fi to long-term tenants was mentioned as a strategy to retain tenants and maximize profits.
• 📉 The COVID-19 pandemic was seen as an opportunity due to reduced renovation costs and the ability to maintain or even reduce operational costs.
• 🌟 The speaker's favorite property was highlighted, purchased in 2016 for its location, garden view, and open view, which attracted tenants and provided stability.
• 💼 The story of starting with jidam and then transitioning to real estate was initiated by a godfather figure who suggested starting with jidam first, leading to the purchase of the entire building.
• 📈 The capital gain from long-term property ownership was emphasized, with the speaker explaining how paying off a loan can lead to significant capital gains over time.
• 🤔 The speaker reflects on the decision-making process when purchasing properties, mentioning that actual profits were larger than initially anticipated due to a lack of detailed calculations.

Q & A

What was the initial focus of the speaker's business journey?

The speaker initially focused on jidam (vending machines), not real estate, as they wanted to but found it unprofitable and it went into litigation.

How did the speaker get involved in real estate?

The speaker got involved in real estate after a senior executive from a large fan company suggested they try it, which led to the speaker starting with a building in Saitama with 17 rooms.

What was the speaker's approach to managing the properties they acquired?

The speaker decided to fire the kandas (management companies) and bring in their own kandasha to manage the properties at a minimum cost, ensuring the profit was theirs.

How did the speaker's network help in their real estate business?

The speaker's network from insurance, renovation, and advertising agencies helped by charging less and doing good work, which contributed to profit maximization and cash flow management.

What policy did the speaker implement regarding rent increases for their tenants?

The speaker implemented a policy of not raising rents for their tenants, maintaining the same rent for eight years and even offering freebies as part of their strategy.

How did the COVID-19 pandemic affect the speaker's real estate business?

The speaker found the COVID-19 pandemic to be the best time for their business because renovation costs were very low, which helped in maximizing profits.

What was the speaker's strategy for adding value to their properties?

The speaker's strategy included adding free Wi-Fi to all buildings and reducing operational costs by getting their own maintenance companies, which helped in retaining tenants and maximizing profits.

How did the speaker's experience with the first property in Saitama lead to further opportunities?

After the initial success with the Saitama property, the speaker was quickly offered the opportunity to acquire more buildings in Shinjuku and Kawasaki, increasing their portfolio to 45 rooms.

What was the speaker's advice for people considering investing in real estate?

The speaker advised that investing in good quality apartments is a good idea, as they can command a premium in the market, especially for properties near stations and in high-demand areas.

How did the speaker's involvement with BNI lead to their first real estate opportunity?

The speaker met their 'godfather' at a BNI meeting, a business networking group, who offered them a jidam (vending machine) opportunity, which eventually led to the speaker buying the entire building.

What was the speaker's experience with the jidam business model?

The speaker found the jidam business model interesting as it required no investment and provided a small but consistent monthly revenue, which sparked their interest in the property where the jidam was located.