Today we’d like to introduce you to Jonathan Reid Sr.
Hi Jonathan, can you start by introducing yourself? We’d love to learn more about how you got to where you are today?
I had been contributing to the bottom-line profit for a lot of corporations but still didn’t have time for me, my growing family, nor outside business interests. The stress and politics that goes along with being an executive was something I didn’t want to keep participating in. So, I made the decision to use the skillsets I had learned to benefit my business. That business included two distinct product lines: (1) Management Consulting, specifically focusing on Project Managment, Finance, Accounting, IT and Business Process Reengineering. (2) Real Estate Developing, Investing & Coaching.
I am currently a Managing Partner with Tier1 Management Consulting Group. I lead the Social Equity Advisory Services practice for Tier1 and have built a very strong team of certified DE&I consulting strategists, organizational trainers, and a practice that includes Environmental Equity, Health Equity, Economic Equity Judicial Equity, Digital Equity and Diversity in the Workplace, etc. I’m a Certified Diversity Professional at Cornell University. We’ve consulted with both the Public Sector (Federal, State & Local Government), as well as the Private Sector and Non-Profits.
My passion for Real Estate started while I was still in college. My uncle owned a renovation business, so I’d work with him doing various different jobs to make some extra money during the summers. They were fairly basic tasks – putting up wallpaper, painting, stuff like that – but it gave me my first taste of what the real estate industry was like.
After college, I went on to get an MBA in finance and worked for many years in corporate finance. Along the way, I began realizing just how powerful a tool real estate was for building wealth. By taking advantage of the equity and available lines of credit, you can essentially use your properties as a source of financing without having to go through an actual bank. I was excited about the possibilities real estate could offer, so I began reading and learning all I could about the industry.
Around that time, I met and befriended an experienced real estate professional who agreed to act as my mentor as I learned the ropes of flipping. We worked really well together and with his guidance, I began completing my first flips in Atlanta. We eventually decided to go into business together, and in 1995 we created House 911, an organization that provided educational seminars and mentorship for folks interested in getting started in the real estate industry. This venture, combined with the success I was having in flipping houses, enabled me to eventually quit my corporate job and dedicate myself full-time to real estate.
Since then, I’ve largely pivoted away from the fixing and flipping side of things as it’s become much more of a heavy lift. I’m now looking more toward new construction projects, and I’ve also begun mentoring my son as he embarks on his own real estate journey. My business partner and I are still running our educational program, and we’ve been able to mentor many up-and-coming real estate entrepreneurs through our online webinars and forums. In fact, two students from this group, I love that I have the opportunity to pass on what I’ve learned to the next generation so they can begin building and creating wealth for themselves. I haven’t completely left the Fixing and Flipping side of Real Estate as my son, Jonathan JR is learning and taking over that aspect (keep it all in the family 
)
Would you say it’s been a smooth road, and if not what are some of the biggest challenges you’ve faced along the way?
I’m definitely not immune to challenges. I’m sure any entrepreneur or business owner can tell you the sleepless nights they incur. For example, I’ve lost major public sector contracts working with the wrong people and have had to pivot overnight. I think I’m built for it, growing up in the “hood”. But networking and the RIGHT relationships are the keys.
Another example is in 2008, the Real Estate and Financial markets crashed and people largely stopped buying and selling homes and corporations re-aligned their business models. A lot of developers (including us) ended up getting caught, and we lost money because we were only doing fix and flip projects and real estate wholesaling. It was definitely a hard lesson to learn, but it showed me that we needed to switch up our business model to include more rentals.
I keep this adage close: “Ever Fail? Ever Try? Fail Harder. Try Harder. That’s what leads to success.
Thanks for sharing that. So, maybe next you can tell us a bit more about your business?
Our business has over 30 years of experience both in management consulting and executive industry leadership. We specialize in enhancing organizational culture, recognizing unconscious bias and how it affects the way people perceive and react to others, understanding the dimensions of diversity, assessing stereotypes and prejudices that may influence behavior, and developing a plan for transformation.
I’ve served in executive-level positions within Finance & IT with several General Electric business units and national consulting firms. I have a successful track record of leading teams in the development and deployment of mission-critical, high-quality business solutions. We’ve administered pro forma audits and IT & financial analyses for $100+ million projects including feasibility studies, DE&I Strategic planning, IT assessments, and oversaw activities performed by third-party vendors, consultants, and law firms. All while building cross-functional global teams, designing processes utilizing six sigma techniques, and delivering results supported with concrete financial metrics on budget and on time.
Within Real Estate, I’ve completed about 50+ projects – mostly rehabs & new construction – since I first got started. I recently finished two new construction projects with my lender GROUNDFLOOR, and I’m in the process of closing on two other properties using my preferred lender as well.
In general, I tend to follow three steps when it comes to my Real Estate projects. Step one is finding a good deal – I look at available listings in the locations I’m interested in and see if there is anything that looks promising. Step two is evaluating that deal – I reach out to contractors and real estate agents to make sure the numbers line up and the renovation/construction plans are viable and realistic. The final step is funding the deal – I talk to lenders and figure out timelines so I can ensure I have the financing I need when I need it. I also utilize Joint Venture (JV) Cash & Credit partners.
These days, the number one thing I’m looking at is where I’m sourcing my materials and labor. As we all know, the cost of everything has shot up with inflation, so many cost forecasts have been really off base. These cost pressures, combined with the continuing supply chain issues, are really complicating project timelines and budget predictions. In this current environment, it’s become even more important to stay on top of where your materials are coming from, when they are expected to arrive, and how you might handle any unexpected delays or issues. Increasing mortgage rates are also placing some potential buyers out of the market.
Current projects we’ve led or have been leading include Diversity Strategies for: Cumberland County, NC, Frederick County, MD, City of Milton, MA, Town of Matthews, NC, CDC-OSHI, City of Boise, ID, Spotsylvania, VA, LOC-Library of Congress, AT&T, AAASP, to name a few.
Is there anyone you’d like to thank or give credit to?
I’ve had many mentors along the way. In fact, as one of the first African American males on GE’s FMP program (Financial Management Program), I had two key men (who looked like me) mentor and coach me, not only professionally but personally also. Within Real Estate (which I started back in 1994), I’ve had a major mentor who eventually became like a brother to me. We’ve won and lost in Real Estate, but to this day, he has contributed to my growth. And of course, the major supporters are my three adult children (Brittany, Jonathan Jr and Marcus). My sister is also a Real estate investor (of course I taught her LOL). That’s the purpose – to have family in your corner and also to leave something for them (knowledge and a sense of purpose). I’ve a few close friends who have become family and pour into me; but quick to tell me when to pivot! And though my dad is no longer with us, that entrepreneur spirit came directly from him.
Contact Info:
- Website: www.tier1mgmt.net
- Instagram: https://www.instagram.com/jblreid/
- Facebook: https://www.facebook.com/AllenReidGroup
- Youtube: https://studio.youtube.com/channel/UCdKv0rZ8HmSlFFCPFmo6JhA/videos/upload?filter=%5B%5D&sort=%7B%22columnType%22%3A%22date%22%2C%22sortOrder%22%3A%22DESCENDING%22%7D
