Armando Montelongo — Real Estate Mogul and Host of A&E’s “Flip This House” — Shares Secrets for Turning Over a Quick Profit

By Deborah Jeanne Sergeant
 
Armando Montelongo wasn’t always the brash, wildly successful real estate mogul presented weekly on A&E’s “Flip This House.” Five years ago, his family’s unexpected medical problems left him unemployed, broke, with poor credit, and $50,000 in debt. They borrowed $1,000 to move from his in-law’s garage on a cross country adventure to start over in San Antonio. Within two months, he flipped his first house and hasn’t looked back since. Home Business® Magazine recently spoke with Armando about his secrets for turning over a quick profit.

Home Business Magazine (HBM): What are the top principles you’ve learned about quick profitability that can apply to any home-based business?

Armando Montelongo (AM): Without much education, you’ll lose tons of money and you won’t be successful. Find a mentor who’s been incredibly successful. There are really multiple parts to any business. With real estate flipping, there’s buying at the right ratios, fixing them up, and making sure you’re not spending all your time doing any one thing. It is about balance. Eighty percent of your time needs to be about buying properties.

HBM: What mistakes do most home-based entrepreneurs make when it comes to making a quick profit?

AM: It goes back to thinking they know the answers, but the system has the answers. It is the answers. Also, never get greedy. I see this happen so much. People try to eke out every dime of payables or receivables. Remember your overall strategy. Don’t be penny wise and pound foolish.

HBM: It’s currently a “buyer’s market” in real estate. How can entrepreneurs make a profit when their industry is stagnate or in decline?

AM: If it’s a buyer’s market, there are still people buying. At a time when it’s a recession, the average person works 70 percent less. If you work 30 percent smarter, you’ll do better than the competition. I have seen so many people just go and shut it down and throw their hands up and say, “Oh, I can’t do well.” They lose their focus. All money making is a head game, and not about the circumstances around you. I’m so huge on having mentors because they’ve already been thru these circumstances.

HBM: After turning a profit —what’s next?

AM: It depends upon how big they want to go. For me, once it’s turning a profit, it’s about systemizing. We “whiteboard” our entire business every six months. We see what we’d change if we were restarting our business right now. It keeps customers incredibly happy. We work on what we can do to make it more profitable and keep our students happy. It works amazingly. Focus on the systems.

HBM: How important is networking when it comes to making money?

AM: Networking with productivity is everything. You get way too many people who go out there and entertain themselves by networking and being part of an association under the illusion that they’re going to make more money. Be very careful about that. I’m not big on associations, but spending time with people who have more money than I do.

HBM: You practice Tae Kwon Do and as with any martial art, success depends upon a positive attitude and consistency. How do you apply those principles to business?

AM: There are no problems, only challenges and you look forward to those challenges. Most people won’t ever figure them out. It goes from “I’m going to have a positive attitude” to becoming who you are. Some people have to fake being positive, and there’s nothing wrong with that as long as you’re not deceiving people. It’s a habit you have to practice.

HBM: As their companies grow, how can home business entrepreneurs effectively delegate to employees and/or contractors?

AM: The control factor is hardest. No one wants to lose control. Any successful person will have a sense of control. I’ll slow my business down and make sure everyone is properly trained, and then I feel comfortable in letting go. I’ve come to a point where I know what I’m good at. I’ve focused on my realty business that makes me the money. What makes money in this business is being creative. Everything else is leveraged out. HBM

Previously published in the April 2010 issue of HOME BUSINESS® Magazine, an international publication for the growing and dynamic home-based market. Available on newsstands, in bookstores and chain stores, and via subscriptions ($19.00 for 1 year, six issues). Visit www.homebusinessmag.com

Deborah Jeanne Sergeant writes from her home office in Wolcott, N.Y. Her Web site is www.skilledquill.net.  

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