We had the good fortune of connecting with Eric Martel and we’ve shared our conversation below.
Hi Eric, how do you think about risk?
At university, I studied Actuarial Mathematics which is the science of financial risk. This formation helped me view risk in mathematical terms but this logical perspective is not sufficient as an entrepreneur. Not all risks are quantifiable and the emotional aspect of risk taking cannot be underestimated. I think of risk taking as a balancing act between all the potential outcomes. On a particular investment I may expect 30% return if everything goes as planned or, in the worst case scenario, I may expect a 5% loss. Part of the mental calculus includes the risk of inaction. Leaving money in the bank at 0% with 2% inflation will safely erode your purchasing power. None of that matters if you don’t take action.
Risk taking has played a critical role in my life because I took action. The small risks I took earlier in my life helped me build a tolerance for what came next. I often ask myself: “What’s the worst thing that could happen?” Most of the time, the positives outweigh the negatives.
Alright, so for those in our community who might not be familiar with your business, can you tell us more?
It all started when one of my 2 sons came to me because he wanted to do real estate investments. It gave me mixed feelings. His announcement brought me back to my very first real estate investment. I was young, fearless, and nothing to lose. I was in my second year of university with $125 in the bank. I was introduced to this real estate mentor who showed me how to do a deal one move at a time. I wasn’t afraid because I didn’t know what to be afraid of and worked tirelessly to find an 8 units apartment building that would work cashflow with a seller who was willing to give me loan in second position. Closed with no money down!
We searched for properties to flip close to our home in San Francisco Bay Area but the market was too hot. The returns were too low. We pivoted strategy a few times until we decided to build a passive income portfolio out of state. We did our research and decided on Memphis and Cleveland. Our first challenge was to build a team on the ground. Antoine who recently graduated from LMU started calling hundreds of realtors and property management companies. We bought our first house in Memphis, renovated it, rented it out. Everything went smoothly so we did 2 more. and 4 more after that.
Our friends were also interested in building a passive income portfolio and that is when we started MartelTurnkey. Today we sell close to 100 houses per year.
At MartelTurnkey, our goal is to help the everyone achieve financial freedom by building a portfolio of rental properties that will generate cash flow with excellent returns.
Let’s say your best friend was visiting the area and you wanted to show them the best time ever. Where would you take them? Give us a little itinerary – say it was a week long trip, where would you eat, drink, visit, hang out, etc.
I would start with a run/swim in Hermosa Beach. Breakfast at Gjusta in Venice. Walk/shop on Melrose ave. Go to the Original Farmer’s market for lunch., walk at the grove. Dinner at the Strand House in Manhattan Beach. Then go to Neon Beach Silent disco at Dockweiler beach
Shoutout is all about shouting out others who you feel deserve additional recognition and exposure. Who would you like to shoutout?
I have to say that I wouldn’t be where I am today without my family. Sounds clichee but it is not. I started my businesses with my wife and partner, Lynn Milos. These businesses helped us teach our sons about business and that you don’t need a full time job to be successful. My sons, Antoine and Etienne, were absolutely critical in the real estate success that we are enjoying today.
Other: Book: https://www.amazon.com/dp/B08KWM5PW1