This month I sat down with Chris Tabanico, the co-founder of Simply Cash Homes, a large-scale real estate investment firm. We explore his decision to move from a corporate career in financial services and strike out on his own, how he achieved such aggressive start-up growth, and important lessons he learned about the real estate investment industry along the way. Mr. Tabanico emphasizes the benefits of testing your venture in a controlled environment where it is possible to mitigate risk and exposure, and the critical importance of networking.
The Interview
Griffin Connolly: Hi Mr. Tabanico, let’s start by getting to know a bit about you and the inception of Simply Cash Homes.
Chris Tabanico: Hi Griffin, I’m Chris Tabanico, my wife and I founded Simply Cash Homes, LLC in 2018. We’re a real estate company that buys, and sells homes, as well as rents them out on Airbnb. I’m originally from Phoenix, Arizona, born and raised, but most of my real estate portfolio is in Ohio.
I got into this after graduating from ASU with a degree in marketing and working at American Express for about 7 years. Facing uncertainties due to economic shifts and the loss of a major partnership, I started exploring alternative paths to secure my family’s financial future.
I stumbled upon a real estate entrepreneur named Clayton Morris on YouTube, who inspired me with his success in buying and renting homes in the Midwest. Intrigued, I considered joining a program he offered, but thankfully I never invested, as it turned out to be an elaborate scam that is now part of a class action lawsuit. Despite this setback, I was determined to pursue real estate. Instead of trading time for money in a corporate role, real estate can be used as a passive income source. This ultimately led to our founding Simply Cash Homes.
We went from zero to 32 homes in two years. It was an incredible amount of work that has allowed my wife and I to achieve a form of retirement through our rental portfolio.
Griffin Connolly: Impressive growth! How did you go about raising capital and finding deals in the early stages?
Chris Tabanico: I chose Ohio as my investment location due to affordability. Failing on a $50,000 investment is a recoverable risk compared to failing on a $500,000 investment in some of the more aggressive real estate markets around the country.
Then I focused on building a reliable network. Networking was crucial in finding contractors, lenders, and other key players. I spent a week in Ohio meeting with various professionals for breakfast, lunch, and dinner – real estate investors, agents, lenders, property managers, and contractors.
I found a private hard money lender who knows real estate investment intricately. He lends the money and collects interest payments for 12 months. At the end of that time, you either pay him in full or he gets the property. He funded my first three deals simultaneously. We made good on that initial investment and from there, we had a successful blueprint to attract more investors, whether they’re family, friends, or other connections. To scale that quickly we needed a lot of investors. Networking was pivotal.
Aggressive goal setting is also key. There’s a real estate investing podcast called ‘Bigger Pockets’ which I highly recommend. I listened to an episode with a gentleman from Arkansas who went from zero to 18 homes in 18 months. This motivated me to exceed this. So I set myself a goal of 50 homes in two years. I ended up falling short of this at 32 homes but it’s many more homes than it would have been if my goal was 10. Aim high.
Griffin Connolly: It’s clear that networking played a vital role. Were there specific struggles you encountered, and how did you overcome them?
Chris Tabanico: The biggest challenge was dealing with contractors remotely. Ensuring quality work without being physically present was demanding. We were basically taking the homes down to the studs and renovating completely. Poor craftsmanship can lead to issues down the line. Learning from early experiences, I emphasized the importance of trustworthy contractors and introduced controls to maintain quality standards. Your success in real estate often hinges on the people you work with.
Griffin Connolly: Looking back, is there anything you would have done differently or something you believe contributed significantly to your success?
Chris Tabanico: If I had to do it again, I’d involve licensed contractors earlier in the process to ensure quality work. Learning from mistakes, I recognized the value of professional expertise.
In terms of what contributed to my success, setting ambitious goals, even if I fell short, drove me to achieve more than I initially thought possible.
Griffin Connolly: That makes a lot of sense. Shifting gears slightly, what do you find most fulfilling about being an entrepreneur, especially compared to being in the corporate world?
Chris Tabanico: Autonomy is a major perk. And the direct correlation between effort and outcomes is immensely fulfilling. In a corporate role, your income ceiling is limited, but entrepreneurship allows for exponential growth. Knowing that my results are a direct reflection of my dedication is the most rewarding aspect.
Griffin Connolly: With your extensive background in financial services, do you think that experience was vital for starting your own business?
Chris Tabanico: Education and background, especially in areas relevant to entrepreneurship, can be beneficial. But entrepreneurship is really about vision and execution – real-world experiences and failures are the best teachers. So, for me, it wasn’t essential. Networking is a universal key to entrepreneurial success, so wherever you are, learn from the people around you.
Griffin Connolly: With years of experience in the real estate market, what trends do you see currently that differ from when you started your journey?
Chris Tabanico: The landscape has shifted significantly in the past year, primarily due to skyrocketing interest rates. Buying and holding properties has become less profitable because your loan payment is probably going to be higher than the rent you can charge. As a response, we’ve scaled back on real estate and pivoted to other ventures, such as our construction company in Arizona. The focus of that venture is new building site preparation; grading and excavating land for large scale residential developments. The ability to remain nimble and pivot based on market conditions is very important in entrepreneurship.
Griffin Connolly: That’s good advice. Lastly, I run a Student Launch Club at school. If you could give some advice to budding entrepreneurs, what would it be?
Chris Tabanico: Fail fast and embrace failures as learning opportunities. If possible, test ideas in a small, controlled environment to mitigate risk and exposure. Because whether you fail on one home or 100 homes it’s probably the exact same underlying cause.
Surround yourself with like-minded individuals. Surrounding yourself with positive, ambitious people will lift you up and motivate you
Always remember, networking is critical. Most challenges have been faced by others, and finding quick solutions with the least amount of risk is key.
Griffin Connolly: That’s great. Thank you for meeting with me. I appreciate your insights and experiences.
Chris Tabanico: It was a pleasure, Griffin. If you ever have questions please feel free to reach out.