123: Expanding and Diversifying Investment Opportunities with Todd Pigott

Sometimes, the path to what you really want to do with your career is winding, but the rewards are even sweeter once you get there. Today’s guest started with nothing and built a successful company before selling it to dive headfirst into real estate.

On this episode of Zen and the Art of Real Estate Investing, Jonathan interviews Todd Pigott, the principal and managing member of the ZINC companies, which are wide and varied in the real estate space. They consist of ZINC Financial, ZINC Income Fund, ZINC Auto Finance, and ZINC Realty, one of the largest rehabbers in California.

As they begin their conversation, Jonathan and Todd explore Todd’s background with real estate, which began when he started a facilities maintenance company as a means of survival while still a college student. He ran that business for 17 years before selling it and pivoting to real estate, establishing the ZINC companies. Todd outlines the typical borrower who works with him, explains the balloons and confetti syndrome in real estate, and the three things he can guarantee for his investors. He also describes how he maps out trends across the country, how market differences impact investors, and why inexpensive markets may be attractive but often don’t produce great results. Jonathan and Todd share why they love Google Street View and Google Earth for evaluating a property’s location, rental standards to look for in the surrounding area, and using the Government Services Administration to assess a market. Finally, they discuss why the current market is probably not a real estate bubble and why no crash is on the horizon.

Todd Pigott’s depth of understanding of real estate investing offers valuable takeaways every investor—new and experienced—can learn from.

In this episode, you will hear:

Todd Pigott’s introduction to real estate as a kid growing up in California and what attracted him to the industry
How cleaning buildings in college led to a facilities maintenance business with more than 500 employees
Selling his facilities maintenance business to begin a real estate business that consists of three different entities
What Todd learned about real estate from caring for all different types of buildings
The typical borrower he serves and why many of them are entry-level investors
Balloons and confetti syndrome in real estate, and the three things Todd can guarantee
Mapping out trends across the country and validating information
The last resort Todd wants to avoid for his investors
How market differences impact investors, and where he gets information to analyze those markets
Why inexpensive markets may be bad for real estate investing
Todd Pigott’s strict two-minute rule and what that means
The secret value of Google Street View and Google Earth
The rental standards you should look for near an investment property that will sell the house
Using the Government Services Administration to evaluate a market and why the housing market probably isn’t in a bubble
Analyzing the current market and why there isn’t a housing crash on the horizon

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