Make your money work for YOU. How to Build Wealth through investing in Real Estate

Friday, June 1st

Investing your money is the key to building substantial wealth. This week, we invite Paul Pant back on the podcast to help us make money through investing in real estate.

Paula is the founder of the website and a writer and speaker specializing in money, business and real estate investing.

She has been featured more than four dozen major publications, including Forbes, Fortune,, AOL DailyFinance, Marketplace Money, Kiplinger, Bloomberg Business, Inc. Magazine, Business Insider, and many more (and this is only half of her resume)

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

What is the best way. Dimming your money work for you don't. It's seven figures all the information that you need to dominate your finances I am seeing fighters. Thanks for being here each week we tap into a financially savvy people. And learn from that take away little nuggets of financial and Alex that we can apply to our own lives. And create that well paved path. To financial independence before we get into it it might take a quick sex to say thank you to our sponsors and family first credit union global financial products and services designed to with you in mind is to help you and your family spend and save Smart. So you've heard the phrase make your money work for you frank what does that really need it. When you get to the point where you feel like you're in a good spot is spending what you can afford which means spend less than what you're earning. Good paying your bills on time to have that emergency fund as a fallback now. We can talk about building wealth is making the money you have Ralph. Making it work trio. And there's a couple of ways you can do that we fashion whether actually today it's a chance who has been on the podcast before founder of afford anything dot com. She has her own podcast called afford anything. Paula I've writer speaker specializing in money business and real estate investing. You follow our. So thank you for being on the podcast. Yeah I think that probably you can focus on investing our money stock market vs real estate because you have extensive knowledge in both areas. And for you personally though what what first was that your interest in real estate where the market. Well I mean eating there are more money in the stock market really keepers because I started reading about that being. Our backs are to be in most of the literature at least. General personal finance literature that's that's being that talked about it and I'd been out. When I began learning about the plan. The stock market and index fund rigor and mutual fund where the first being that I read and learned out. I believe this is something that you and I have in common and I'm sure there's others who say the same. We heard this story is when we were growing up over and over from our parents I know my dad would always talk about. Moving to this country to quote making it coming here with Mary little and Daniel I got better camera guy. I hear it. Yeah yeah. And then his nose was always in a box and learning about investing. Had with 100. So for me I only feel comfortable with investing in the market because. That's what I heard dad always talking about how winning on those safe investments like the index funds to supplement my retirement. The world of real estate investing battle. Is unfamiliar territory for me for a lot of class but a lot of people make a lot of money in real estate. So. For the beginner beginner. What advice would you give where would you start a what's the pros and cons of each. Well over the state acting. Like an act are deemed value in it. To re use of its capital appreciation on the act and are now and their income stream or could get it and accept it. So when you think the stock or an index fund. Not historically speaking will pry me out he earned value from capitol each each. Army infantryman to get it and that it plays is army 82% to 3% but it's small fraction of heat over our check. The keypad and next on a pathetic. That returns. 8% in total or it maybe that. By the expert senate that growth comes from appreciation and current dangers in it. With the rental properties. If he had earlier at. We have rental property. Your primary form of return is when we come from income treatment. From the cash flow or what specifically. Beat property and it produced. And then capital appreciation actual people who medical EP for completion but no more so in other words. There will be eight of those two aspects derived Richard aren't like them there Mir and each other their indirect. To build wealth that ocean we'd try to dabble in both. Ali so he'll need a pick or choose one or the other I mean I certainly don't eat eat eat real estate acting. In your portfolio you can have a practically. Wonderful happy healthy. Light. Without ever going into the world they are acting so I absolutely would never allow somebody to go into it because they are as any type of pressure. In fact I think they can feel like you acts to. I think I need to say you're really into it probably not gonna do very lap out you only do marinate it you're excited about being. Looking you would stand out most in need when you went mine did that bike and now are and would be ecstatic by act first home. We wanted our own out of pocket housing costs to be. As cooked at the over possible. And current status by a single family home like most people are killed. We decided instead to buy it try. We move into one of the unit with crewmates. And rented out the other exit and agriculture doing that are out of pocket how. Are not literally hear it or not. And that was that are properties at once he bought that property. That was like our interest in buying more. For the man who bought at their son and he let out and started biting. Single family home to use as rental property. How old were you at the time. At him. I feel like I hear more more stories of the younger generation doing that to our thinking that way I was that was not even in my wheel house when I was in my twenties. Dracula it was a deep commitment to try and keep our housing costs down narrow. It down the road studios possible. Ellen don't really red hot spot that's coming come. Never you are your has been handy person because there's an Amy get more lucrative if you know how to fix those problems that did that come up or are. Are the one very important thing about. For anybody with considering real estate investing yeah is to always have run me out it's as though you are outburst in everything. The property management contractor work. One woman at an order form math to truly be Mac. It must be identity cannot. If you are evaluating your current current at the Euro and you balloting somebody else for plan and created imperial. That's BS accounting. Though you need to run a spread sheets in such a way that that spreadsheet is identity cannot thank. And nurture and do not depend. On the name of the person performing that act. OK so value your time to as much. As you went if you hired it out. Charlie embrace a little bit of what personalities and that there isn't it than that he's beauty older birth review the worker. You can choose to be at work inning if you want to. That you can also quit or get sick or move away and I hate yourself. And replaced it alpha and the number status state Omniture and epic and on whether bop or be or chimney is performing that task. They're returned should be the same no matter what that's. That's what running a business and. Okay now what if though the market that your interest for us in the Rochester market probably not as lucrative maybe as some other major markets would you even suggest entertaining the idea of going out to another city or is that hard to monitor what happens with your rental property PD so. I personally will meet. Would bought from this point forward would only want an element properties and other cities don't really I okay. Typically do not want to own in my own city pilot and off they can't. I'm not great rentals in the Antarctic market where it. But the recent that I intentionally not buying an ad appeared. Because when you own your own city it's very easy to pick a candidate for Harvey. And to go by and try to be network is now a batter either Al within the detector you know it would probably out. If they can't eat it distracts how to make it out the caller today. Barack and in a property is in a different Stevie. And you have to go eat somebody high near a contractor. Go there. And look Belfort at Indy five dollars to Europe meet their attic. We you'd better believe. That you don't open up that chocolate you've had your boot in Duval or month check it. And it in a little box on the island a line item as all right every tenant who have been in Duval. We will leaguer at these replaced the battery that's gonna be a new item on the check it right. Third that its value where that is now. It by developing system development process. And you're much more likely to do a good job at bat when he left forced to do a good job that. Current isn't it eat into the cost of Hamachi can make if you do always high you're out. Now not a lot of money and numbers and then waited identity cannot. Remember of all the numbers need to make sent the corridor. And the identity of the person performing that are now. Can you just dabble in it in in still get a good return on investment or air in order to make a lot of money you have to have a lot of properties. That while your return to their enlistment index on I. Your return on property let's see a property or property. Percent. Last I appreciate that that the rate of inflation which 3%. Then you're torque turn on the property. Is 9%. So just like index fund. You can making ninety and you're making ninety cents now is that a lot of money or a little money depends on how much money's not invest it. But 9% to 9% accurate term. Then one piece of advice for somebody who is. Thinking about real estate but not to shore are may be a warning came before you get into this. I know who they're putting it on your contradicts happily on a property shortly capitalization rate. Will learn how to calculate that and run back on every property protection and again now at the park again. We run the numbers in the week but it identity cannot stay at a probably the single most important but I like it because that is where. Almost every geek and it gets it wrong. You okay and then one piece of advice for the person who wants death. You know dipped their toe into the stock market. If you want under the stock market I would I wouldn't bet on there that are though that type of vehicle Packard are. Because they are a little speedier path that we managed to pick outlook and she knows. I am not a secret broad market index fund. Young kids out loud by some of these success stories of these individual stocks right as with everything that story there's a million failures that. Now. In you know another reason why I'm very grateful to have you I'm Natalie your extensive knowledge in all of this but as we know the financial industry. Whether it's in the market or in real estate is still more are men vs women you know there's more men involved Manson women do you feel like it's holding you back in any way or advice to women to build up their on confidence with finances. Well instead of dealing with contractors intent of that aspect of real estate back on. That can be frustrating because a lot of our a lot of contractors and talk you'd get an election year differently as a woman on the are there and act I think it's great I mean the women. At least speaking live longer. And and is also take more breaks in the work force authentic. For the purpose of getting credit and remembered. I think that the woman had. Extra important to be in charge of your finances because. Statistically speaking you're likely to earn less. Take more or. The year Alex aren't. Live longer and that's very important to act now be overwhelmed and intimidated by finances it really is nimble and there's so many resources legged your website before anything got half your podcast how force anything's. Paula thank you so much for post here the good for us. She's great super Smart about real estate investing in building wealth in general so we appreciate column can't comment on the I've cast. And we appreciate you for take anti money you're busy day to listen to the seven figures podcasts and spreading the word about the podcast you can hear it on Google play. The free radio dot com ask and if you're on iTunes right now just rolled down a little bit. And give us have rating and a review. Have a great weekend dominate your finances and multi seat next week.