How this General Contractor Made $5M Feat. Esteban Ceron
Introduction
In this video, Esteban Ceron, a successful general contractor, shares his journey and insights into the construction industry. He talks about how he made $5 million and offers advice for those considering a career in the trades. Esteban emphasizes the importance of making informed decisions about education and career paths, highlighting the benefits of trade school over traditional college. We will summarize the key points from the video and provide SEO-optimized content for readers interested in the construction and real estate industry.
Key Takeaways:
1. Finding a trustworthy contractor is crucial when investing out of state.
2. Believing in oneself, finding a mentor, and networking are catalysts for success.
3. Passion and dedication are essential for achieving goals in real estate.
4. Leveraging existing assets can help secure funding for new projects.
5. Building a strong reputation as a reliable contractor can lead to increased business opportunities."
Finding a Trustworthy Contractor for Out-of-State Investing
In this episode, we interview Esteban Ceron, a general contractor who has helped with a property in Columbus, Ohio. He shares his insights on finding a reliable contractor, discusses some of his projects, and even talks about a million-dollar flip he completed in Columbus. Esteban's journey in the real estate industry is inspiring, and his success is a result of his passion, belief in himself, and the guidance of a mentor.
Esteban's Journey in Real Estate
Esteban is a general contractor, real estate developer, flipper, and property manager. His involvement in various aspects of real estate makes it difficult to define his role with just one title. He was born in Columbia, South America, and immigrated to the United States in 1999. After living in small towns in Ohio, he eventually settled in Columbus. Esteban's path to success was not a straight line, as he dropped out of college and worked as a waiter for several years. However, in 2019, he decided to dedicate himself to the construction industry and real estate.
The Catalyst for Success
Esteban attributes his rapid growth in the industry to three factors: self-belief, finding a mentor, and networking. He started believing in himself and developed a passion for his work, which fueled his motivation to succeed. Additionally, he was fortunate to find a mentor who provided guidance and support. Through networking events and mastermind groups, Esteban connected with other investors who were struggling to find reliable contractors. This led to an influx of projects, and Esteban went from handling a few houses at a time to managing up to 60 projects simultaneously.
Esteban's Impressive Portfolio
Currently, Esteban is juggling around 28 to 30 construction projects at any given time. He also has a rental portfolio consisting of 17 units, which he manages with his mother, who is now his business partner. In addition to flips, Esteban has completed over 100 projects since he started in the industry. He has now ventured into development deals, taking on larger and more complex projects.
The Turning Point Conversation
One pivotal moment in Esteban's journey was a conversation with his mentor, Austin Rutherford. They were discussing the challenges of finding reliable contractors for out-of-state investing. Esteban expressed his frustration with the lack of trust he had encountered in the industry. Austin listened intently and then shared his own experiences, offering valuable advice on how to navigate the contractor selection process.
Building Trust in a Chaotic Industry
Esteban learned that building trust with contractors is crucial, especially when investing in properties outside of his local area. He realized that establishing a strong network of reliable contractors was essential for the success of his projects. Austin emphasized the importance of thoroughly vetting contractors, checking references, and even visiting their previous job sites to assess the quality of their work.
The Power of Referrals
Another valuable lesson Esteban learned from Austin was the power of referrals. Austin explained that contractors who consistently deliver high-quality work and meet deadlines are often recommended by other investors and industry professionals. Esteban took this advice to heart and began reaching out to his network for recommendations. He also started attending local real estate networking events to connect with other investors and gather referrals.
Leveraging Technology for Contractor Selection
In addition to referrals, Esteban discovered the power of technology in finding trustworthy contractors. He started using online platforms and apps that connect investors with contractors, allowing him to read reviews, view portfolios, and even request quotes. This streamlined the contractor selection process and gave Esteban more confidence in his choices.
Esteban's Approach to Project Management
With a growing number of projects on his plate, Esteban had to develop an efficient approach to project management. He emphasized the importance of clear communication and setting realistic expectations with contractors. Esteban also implemented a system for tracking project progress and ensuring that deadlines were met. This level of organization and attention to detail helped him successfully manage multiple projects simultaneously.
The Million-Dollar Flip
One of Esteban's most notable achievements was a million-dollar flip he completed in Columbus. The property was in a prime location and had great potential, but it required extensive renovations. Esteban assembled a team of skilled contractors and managed the project from start to finish. Despite the challenges, the flip was a resounding success, and Esteban earned a substantial profit.
The Power of Free and Clear Property
Esteban begins by discussing a deal he made with a random person who had three free and clear houses. He proposed a project that required $60,000, and in return, the person would have the opportunity to foreclose on the properties if Esteban failed to deliver. This arrangement was a no-brainer for the person, as the numbers worked in their favor. Esteban reflects on this experience and realizes the value of analyzing opportunities from a financial perspective.
The Value of Content Creation in Contracting
The host of the show praises Esteban for his content creation efforts in the contracting industry. He acknowledges that there are not many contractors who actively produce content, making Esteban's contributions unique. Esteban attributes his interest in contracting to his family background and explains how he saw an opportunity to fill a gap in the market by sharing his knowledge and experiences. He encourages other contractors to consider creating content as a way to stand out and attract more business.
College vs. Trades: Making Informed Choices
Esteban addresses the common dilemma of choosing between college and trade school. He emphasizes that he supports individuals pursuing their own paths, but he criticizes the societal pressure to attend college without considering other options. Esteban believes that many young people are not ready to make such a significant decision at the age of 17 or 18. He argues that pushing students into massive debt for degrees that may not lead to well-paying jobs is not a wise choice. However, he acknowledges that certain professions, such as doctors, engineers, and lawyers, require a college education due to the higher income potential.
The Benefits of Trade School
Esteban advocates for trade school as a viable alternative to college. He highlights the fact that many companies are willing to pay for trade school education, allowing individuals to learn and earn simultaneously. Unlike college graduates burdened with student debt, trade school graduates can enter the workforce with valuable skills and little to no debt. Esteban also mentions the potential for higher earning potential in the trades, as skilled tradespeople are in high demand and can command higher wages. He encourages young people to consider trade school as a practical and financially beneficial option.
The Importance of Networking in Contracting
Esteban stresses the importance of networking in the contracting industry. He shares how he built his network by attending industry events, joining trade associations, and actively engaging with other professionals in the field. Esteban believes that networking is crucial for finding new clients, subcontractors, and suppliers. He also mentions the power of word-of-mouth referrals and how they have contributed to his success. Esteban advises aspiring contractors to invest time and effort into building relationships within the industry, as it can lead to valuable opportunities and partnerships.
The Value of Specializing in a Niche
Esteban discusses the benefits of specializing in a niche within the construction industry. He explains that by focusing on a specific area, such as plumbing or carpentry, contractors can become experts in their field and differentiate themselves from competitors. Esteban shares his own experience of specializing in window installations, which allowed him to develop a reputation for quality work and attract clients who specifically needed window services. He advises contractors to identify their strengths and interests and consider specializing in a niche that aligns with their skills and passions.
The Importance of Licenses and Certifications
Esteban emphasizes the importance of obtaining the necessary licenses and certifications in the construction industry. He explains that these credentials not only demonstrate a contractor's expertise and professionalism but also open up opportunities for larger and more lucrative projects. Esteban shares his own journey of obtaining various licenses and certifications, including becoming a certified general contractor. He encourages aspiring contractors to research the specific requirements in their area and invest in the necessary training and exams to obtain the relevant licenses and certifications.
Making Money as a General Contractor
Esteban Ceron starts by sharing his impressive earnings as a general contractor. He mentions that he made $180,000 on one project with zero risk, which was a significant achievement. He also mentions that the most he has ever made without having equity in a project was around $40,000 to $50,000 on a kitchen renovation in a high-worth area. These examples highlight the potential for substantial earnings in the construction industry, even without owning equity in the projects.
Finding a Good Contractor
Moving on to the investor mindset, Esteban emphasizes the importance of finding a reliable contractor. He believes that contractors and property managers are crucial members of an investor's team. To identify a good contractor, Esteban suggests getting references from past clients and asking for pictures of their previous work. For out-of-state investors, he recommends requesting a visit to their active projects to assess their work quality and organization. Additionally, he advises investors to be cautious of contractors who ask for more than 50% upfront payment, as this can be a red flag.
The Role of Contracts
Esteban shares his perspective on contracts between investors and contractors. He acknowledges that contracts can provide a sense of security for both parties involved. However, he mentions that he rarely uses contracts with his clients because he has built trust and strong relationships with them over time. He believes that trust and reliability are more important than formal contracts. Nevertheless, for new clients or out-of-state investors, he is open to drafting contracts to ensure mutual protection.
Red Flags When Walking a Property
When asked about red flags when inspecting a property, Esteban provides valuable insights. He advises investors to be cautious if they notice unfinished areas being covered up, such as basement ceilings. This could indicate hidden issues that may require costly repairs. He also warns against properties with foundation problems, outdated electrical systems, old furnaces, and issues with the well or septic system. These are all potential red flags that could lead to additional expenses and headaches for investors.
Investing Strategies: Cashflow vs. Flipping Houses
Esteban discusses two popular investing strategies in the real estate industry: cashflow and flipping houses. He explains that cashflow refers to the rental income generated by owning and renting out properties. This strategy focuses on long-term wealth accumulation through consistent rental income. On the other hand, flipping houses involves buying properties, renovating them, and selling them quickly for a profit. Esteban shares that his favorite deal was a mansion in Canal Winchester, Ohio, which he bought for $200,000, invested $100,000 in renovations, and sold for $500,000. He emphasizes the importance of market timing and interest rates when considering these strategies.
Esteban's Advice for New Investors
Esteban offers valuable advice for new investors entering the construction and real estate industry. He suggests starting with smaller projects to gain experience and build a network of reliable contractors and tradespeople. He also emphasizes the importance of having a mentor who can guide and support new investors through the process. Esteban encourages new investors to focus on building relationships and trust with contractors and property managers, as these partnerships are crucial for success in the industry.
Conclusion
In conclusion, this blog post features an interview with Esteban Ceron, a successful general contractor and real estate investor. Esteban shares his journey from being a waiter to scaling his contracting business to $5 million in revenue within 10 months. He emphasizes the importance of self-belief, finding a mentor, and networking in achieving such rapid growth. Esteban's story highlights the challenges of finding a trustworthy contractor and offers valuable lessons for those looking to invest in real estate. If you're seeking a reliable general contractor for your out-of-state projects, Esteban's insights and experiences can guide you in making the right choice.
The blog emphasizes the importance of considering trade school as an alternative to college, especially for those who are unsure of their career path. It argues that trade school offers better ROI, as students can learn while getting paid and avoid accumulating massive amounts of debt. Overall, the post encourages individuals to explore the trades and choose a specialty that interests them the most in the construction field.
As a general contractor, Esteban have had the opportunity to make significant profits without taking on any risk. From earning $180,000 on a single project to making $40,000 to $50,000 on a kitchen renovation, he have experienced the financial benefits of his trade. However, he have also learned the importance of finding reliable contractors and property managers as an investor. By getting references, visiting active projects, and avoiding contractors who ask for more than 50% upfront, investors can mitigate risks and ensure successful partnerships.
When it comes to investing, Esteban have recognized the need for diversification and cash flow. While his contracting business provides a steady income, he have also ventured into flipping houses and holding rentals to maximize my profits. Overall, as a contractor turned investor, he have learned valuable lessons and strategies that have contributed to my success in the industry.
