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

In today’s challenging real estate landscape, investors face high interest rates, soaring property valuations, and a market still reeling from the impacts of COVID-19. For many, the dream of building a profitable portfolio feels out of reach. But for Toby Potter, a 30-year veteran of real estate investing and the founder of Global Integrity Finance, these obstacles are opportunities in disguise.

In this podcast episode, Toby shared his hard-earned wisdom, practical strategies, and inspiring journey to help real estate investors navigate tough markets and achieve success. So, how can real estate investors thrive in today’s environment? Let’s explore.

From Crisis to Comeback: Toby Potter’s Story

Toby Potter’s journey in real estate is a testament to resilience. Having weathered the 2008 real estate crash, where he lost millions, and the economic turbulence of COVID-19, Toby rebuilt his career and founded Global Integrity Finance, twice earning a spot on Inc. 5000’s list of the fastest-growing companies. His experience spans flipping over 200 properties, underwriting 6,000 deals, and funding more than 3,700 transactions. But beyond the numbers, Toby’s motivation is deeply personal. A father and grandfather, he entered real estate to prioritize family, selling a demanding landscaping business to be present for his daughter’s early years.

“I came home one afternoon… and my wife tells me, ‘I was vacuuming the living room… and [our daughter] was following me,’” Toby recalls. “Right then and there, I said, ‘I ain’t doing this. I am not going to miss my firstborn growing up.’ And I went the next day and sold my company and got into real estate.” This pivot not only transformed his life but also fueled his mission to guide others toward financial freedom and a better quality of life through real estate investing.

The Current Real Estate Challenge

Today’s market is tough. Interest rates have climbed to historic highs, property valuations are elevated, and many investors who entered the market during the low-rate era of COVID-19 now feel lost. Toby sees this daily at Global Integrity Finance, where he coaches and mentors investors nationwide. “We see a lot of real estate investors that are just lost. They’re confused, they don’t know where to turn, they don’t know if they should wait,” he explains. The uncertainty—coupled with a 6.5 million housing shortage—creates both challenges and opportunities. The key, according to Toby, is finding the right deals and structuring them for success and profitability.

Strategies to Thrive in Real Estate Investing

Look Beyond the MLS for Off-Market Deals

One of Toby’s core lessons is to avoid the usual suspects like Zillow, Realtor.com, and the Multiple Listing Service (MLS). “By the time a property hits the internet, it’s too late,” he warns. “If 7,000, 10,000 other investors have already looked at that property and walked away, that’s not a good deal.” Instead, Toby teaches investors to seek off-market properties—distressed assets or unlisted deals accessed through relationships, brokers, or direct negotiations. A standout example: Toby’s purchase of a 94-unit multifamily complex in Longview, Texas, for just $5,000 in closing costs by assuming the seller’s note. “It was a $3 million property… and we got a million-dollar line of credit to rehab it,” he shares. This deal, now valued at $6.5 million, showcases the power of creative deal-making.

Focus on Distressed Properties and Due Diligence

Distressed properties are a goldmine for savvy investors. Toby’s approach involves meticulous due diligence—identifying every flaw to negotiate better terms. For the Longview deal, his team walked all 94 units, took 270+ photos, and compiled 300 pages of notes to highlight issues. This convinced the bank to not only allow the note assumption but also provide additional funding. By presenting problems with solutions, Toby positions investors as experts, driving down prices and creating value. New investors can start by targeting distressed multifamily or single-family properties in growing areas, then rehabbing and holding for long-term gains.

Build for the Long Term, Not Just the Flip

While flipping properties can generate quick cash, Toby urges investors to think long-term. “Most of our clients today are not flipping properties. They’re buying them, fixing up, and renting them, building a portfolio which is long-term retirement growth,” he says. A rental strategy offers cash flow today and equity tomorrow, making portfolios recession-proof. For example, a $300,000 property might cash flow $200-$400 monthly and triple in value over a decade. Toby also advises leveraging equity—refinancing to pull cash out for more investments—when rates drop, multiplying wealth over time.

Follow the Trends and Demand

Location remains king, but Toby redefines it: buy where demand is growing. With markets like Phoenix cooling, he points to the Southeast—stabilized, economically strong regions—as the new frontier. “You have to follow the trend as to where the demands are and buy those properties in those trend cities,” he advises. Look for areas with population growth, like McKinney, Texas, where a population of 2,000 five years ago has surged to 30,000-50,000. Buying ahead of the curve in places like Atlanta, Georgia, or Evansville, Indiana, can yield massive returns as cities expand.

The Power of Coaching and Mentorship

At Global Integrity Finance, Toby and his team offer hands-on coaching, lending, and partnership. They help investors set goals—whether funding college, preparing for weddings, or building generational wealth. Free consultations assess where you are and where you want to be in 2, 5, or 10 years. Toby’s book, The Unshakable Self, complements this, emphasizing spiritual, mental, and physical discipline to weather life’s storms. His one secret to success? “Never, ever, ever give up.” With his experience, from losing millions in 2008 to rebuilding, Toby proves resilience and guidance are key.

Resources for Real Estate Investors

• Toby’s Book: Grab The Unshakable Self by Toby Potter on Amazon for mindset tips.

• National Association of Realtors: For market data and trends, visit nar.realtor.

• BiggerPockets: Connect with investors and learn strategies at biggerpockets.com.

  
  
  
  

Key Takeaways and Your Next Step

Toby Potter’s insights offer a roadmap for real estate investors to thrive in a tough market. Seek off-market deals, target distressed properties, and conduct thorough due diligence to negotiate better terms. Balance short-term flips with long-term rentals for cash flow and equity. Follow population and demand trends to buy in growing areas. Above all, lean on experienced mentors and stay resilient.