Greg Dekalb and John Thomas: Mastering Real Estate Risks and Rewards

Real Estate Moguls

Greg Dekalb sits down with John Thomas, a seasoned real estate expert who has been in the industry since he was 19. John’s journey is a testament to creativity, risk-taking, and an unwavering pursuit of knowledge. His story is filled with valuable insights that can inspire and guide you in your own real estate endeavors.

John’s foray into real estate began while he was still in college, with his first deal involving Fred Smith of Federal Express. Recognizing the unsustainable nature of Federal Express’s retail space strategy, John proposed a revenue-sharing model that integrated companies with similar demographics. This innovative approach set the stage for his future success.

One of the key takeaways from John’s story is the importance of understanding the market. “Knowledge is the key to real estate,” John emphasizes. By staying informed about market trends and conditions, you can make more effective and strategic decisions. John’s anti-cyclical investment strategy, where he buys assets that others overlook, has been a cornerstone of his success. Whether it’s hotels, shopping centers, or industrial buildings, he consistently goes against the market grain, finding opportunities where others see risk.

John’s career is also marked by his ability to reposition assets. An excellent example of this is his purchase of a hospital in Elgin for $900,000, which he later leased to the state of Illinois. This knack for transforming properties into profitable ventures underscores the value of creative thinking in real estate.

Despite facing significant challenges, including a stint in prison and losing a billion-dollar fortune, John’s resilience and adaptability shine through. He shares how he used his time in prison to teach fellow inmates about real estate, helping them rebuild their lives post-incarceration. “Being a felon doesn’t define you as a person,” John asserts. His story is a powerful reminder that no matter the setbacks, you can always rebuild and come back stronger.

John’s current venture, BlockStar, is a testament to his forward-thinking approach. Combining real estate with artificial intelligence and cryptocurrency, BlockStar aims to revolutionize the way properties are bought and sold. “We’re the first company totally tied to assets, tied to real estate,” John explains. This innovative approach not only provides liquidity to property owners but also opens up new avenues for investment.

Throughout the episode, John’s insights offer practical advice for anyone interested in real estate. He stresses the importance of cash flow in any deal and advises against falling in love with transactions that don’t generate revenue. This pragmatic approach is crucial for long-term success in the industry.

John also highlights the importance of observation and local knowledge. By paying attention to the conditions of properties in your neighborhood, you can identify opportunities that others might miss. This hands-on approach can be especially valuable when starting out in real estate.

Moreover, John’s story underscores the significance of perseverance and making connections. He encourages you not to be afraid of making phone calls and pushing ahead despite rejections. His own experience of re-entering the real estate market after prison serves as a powerful example of what determination and persistence can achieve.

John Thomas’s story is a rich source of inspiration and practical wisdom. His journey from humble beginnings to becoming a real estate mogul demonstrates that with knowledge, creativity, and resilience, you can navigate the complexities of the real estate market and achieve remarkable success.