Andrew Luong is the CEO and Co-Founder of Doorvest. This entirely online platform simplifies the process of buying and managing an affordable, high-yield rental home out-of-state through a personalized approach to buying real estate that helps you build equity and increase wealth.
Doorvest‘s mission is to democratize financial security for everyone.
In an exclusive interview with AsiaTechDaily, Andrew says:
“A good plan, violently executed now, is better than a perfect plan next week,” by George Patton is a quote I love and live by.
I believe most people spend far too much time theorizing about potential outcomes versus actually doing. The beauty of doing it is it gives strong feedback from the market as to whether you’re on the right track or not.
- Dream. Don’t let the world train you to live “normally”
- Passion is earned. Try out many things, double and triple down on the things you enjoy and are good at
- Be nice! Being nice builds this virtuous cycle that makes you and the world happier
Read on to know more about Andrew Luong and his journey.
Please tell me about your personal background and What motivated you to get started with your company?
Andrew Luong: I have long been frustrated by the absence of personal finance from standard curriculums. During my time starting as a young professional working at a tech startup, I found single-family rental homes as a way to build my nest egg on the side. I became a Realtor and mortgage loan officer along the way while amassing a portfolio of single-family rentals. As friends and family became intrigued, I offered guidance and even started coaching some through purchasing their investment properties. After hearing the aspirations of homeownership but the struggles people close to me faced during the process, I realized that the participation gap was attributed to the fragmented state of real estate investing.
I co-founded Doorvest with CTO Justin Kasad, restructuring the process for real estate investing so that everyday professionals can now easily invest in the $3 trillion single-family rental real estate market to build their financial independence. Within a year, Doorvest is now the only platform that provides complete transparency for anyone looking to own an income-generating rental property while providing documentation and investment tracking through Doorvest’s property management portal along with guaranteed tenant placement.
What is your current main product, and can you share any previous product pivot story to the current product?
Andrew Luong: We’ve built a modern, frictionless way to buy and own income-generating rental homes entirely online.
How much money have you raised in total so far? When was the recent funding round?
Andrew Luong: We raised a $1 million pre-seed funding round in September.
What were the internal decision processes in determining when to begin fund-raising, and what were the logistics for this? And how many investors have you met so far, and how did you meet these investors, and which channels worked best for you?
Andrew Luong: The key factor to consider when beginning to raise is understanding how cash will accelerate the business. Internally, this can be cash to pay yourselves a salary, to spend on marketing, or hire team members.
We’ve met with over 70 venture investors and received a “no” from nearly all of them. The typical approach is to get to know other founders in an adjacent space and further along. They’ll be the best source of introductions for you to their investors, and sometimes, they can be potential angel investors too.
That said, we are eternally grateful for Mucker Capital to place a bet on us even though we were entirely outside of their ecosystem and got in touch through a cold email!
What are the biggest challenges and obstacles that you have faced in the process of fund-raising? If you had to start over, what would you do differently?
Andrew Luong: The friends and family round were challenging because we worked to educate our friends and family about angel investing.
What are your milestones for the next round? And what are your goals for the future?
Andrew Luong: Our mission is to bring financial security to everyone, beginning with real estate investing. Our goal is to perform more transactions better, quicker, and more efficiently on the path towards the vision.
How have you attracted users, and with what strategy have you grown your company from the start to now?
Andrew Luong: The marketing strategy that has worked for us thus far has been through Facebook advertising.
What do most startups get wrong about marketing in general?
Andrew Luong: Sometimes, startups can get caught up in doubling down on marketing channels that work but do not allocate enough to test/diversify different channels early enough.
How do you plan to expand globally?
Andrew Luong: We believe real estate in the United States is a valuable asset class and that there is a strong appetite globally to purchase without having to operate the homes.
What are the most common mistakes companies make with global expansion?
Andrew Luong: I can’t say since we haven’t done this yet! We’ll all have to wait and see together! 🙂
How do you handle this COVID-19 outbreak situation for your company’s survival in the future?
Andrew Luong: The pandemic has accelerated the appeal of the entirely-online platform for private real estate and made customers seek more reliable investing methods away from volatile public markets. We have seen a 32% month-over-month increase in customers and a 250% customer increase since the COVID-19 hit.
What are the most common mistakes founders make when they start a company?
Andrew Luong: I believe most people spend far too much time theorizing about potential outcomes versus actually doing. The beauty of doing it is it gives strong feedback from the market as to whether you’re on the right track or not.
What’s the best advice you’ve ever received? And What advice do you have for someone who is interested in doing similar things like yours or in a similar direction?
Andrew Luong: “A good plan, violently executed now, is better than a perfect plan next week,” by George Patton is a quote I love and live by.
What are the top-three books or movies (TV series) that changed your life and why?
Andrew Luong:
- Four Hour Work Week – taught me to dream
- Rich Dad Poor Dad – taught me about real estate
- Thinking in Bets – taught me to make good decisions
How do you keep yourself motivated every day?
Andrew Luong: The ability to positively contribute to others, beginning with helping participate in real estate.
What are the top three life lessons that you want your (future) sons and daughters to know?
Andrew Luong:
- Dream. Don’t let the world train you to live “normally”
- Passion is earned. Try out many things, double and triple down on the things you enjoy and are good at
- Be nice! Being nice builds this virtuous cycle that makes you and the world happier
What would you like to be remembered for?
Andrew Luong: Hopefully, I make a small, positive impact on the world.
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