Toby Potter: How Can Real Estate Investors Thrive in a Tough Market?

Toby Potter is a seasoned real estate investor and lender with 30 years of experience, having navigated the 2008 crash, the COVID-19 turmoil, and beyond. We spoke about the challenges real estate investors face today—sky-high interest rates, inflated property valuations, and a housing shortage of over 6.5 million units nationwide. Toby shares battle-tested strategies for finding off-market deals, negotiating distressed properties, and building long-term wealth through smart portfolio growth.

What stands out most is Toby’s emphasis on turning obstacles into opportunities. He recounts buying a 94-unit complex in Longview, Texas, for just $5,000 out of pocket by assuming a distressed seller’s note, then securing a million-dollar line of credit for rehab. “We bought a three million dollar property for five thousand dollars,” he reveals, showcasing how to spot value where others see problems. His approach—combining meticulous due diligence, creative financing, and a focus on high-demand areas—offers a roadmap for success in a fickle market.

You’ll learn how to avoid common pitfalls, like chasing Zillow listings where “7,000, 10,000 other investors have already looked at that property and walked away.” Toby stresses the power of off-market deals: “You have to find the deals before everybody else finds them.” He also dives into balancing short-term flips for cash flow with long-term holds for generational wealth, cautioning, “If I went back to 1994… and I still had all those properties… I’d be worth probably four or five billion dollars easily.”

Key Takeaways:

• Find Off-Market Gold: Skip Zillow and realtor.com; leverage relationships and brokers to uncover distressed, unlisted properties.
• Negotiate Like a Pro: “We point out all the problems… that tells the seller, ‘Oh, crap, I got more problems than I thought I had,’” driving prices down.
• Build for the Future: Mix flips for quick cash with rentals for equity growth—buy in high-demand, expanding areas like Atlanta or McKinney, Texas.
• Stay Resilient: Toby’s secret to success? “Never, ever, ever give up,” but stay spiritually, mentally, and physically strong to weather life’s storms.
• Life-Changing Perspective: Real estate isn’t just profit—it’s freedom. Toby’s shift to this industry let him prioritize family, from selling a company to be with his daughter to cherishing grandkids today.

Toby’s journey—from losing millions in 2008 to rebuilding and thriving—pairs practical tactics with a heartfelt why: creating a legacy for family and financial freedom. His book, The Unshakable Self, ties it all together, urging you to build a foundation to tackle any challenge. Whether you’re lost in today’s market or aiming for a richer tomorrow, this conversation equips you to grow, adapt, and win.