Episode 24: Setbacks to Success: Mastering the Art of Productive Real Estate Investing

00:00:00:14 - 00:00:23:06

Matt Biggley

And I think overall, this list sounds to me like it's about approach. Are you speculating in the heat of the moment? And speculating is not sound investing strategy? And I think our approach has been very careful, conservative, detailed, and listen, there's no such thing as a perfect property out there. But we certainly, as you said, through the due diligence process, make sure that we've checked as many boxes as possible.

00:00:23:06 - 00:00:39:00

Matt Biggley

And one of the interesting things about our investing journey is some of the regrets or mistakes we would have had early on over time and time is just a beautiful filter for these things. We can now kind of look back and almost laugh at ourselves or chuckle or because the mistake isn't quite so fresh. So time is the great healer.

00:00:39:04 - 00:01:00:03

Matt Biggley

And in this case, time really allows you to revisit the way that you think about those mistakes or about those regrets.

00:01:00:15 - 00:01:05:21

Jon Orr

Welcome to the Invest Teacher podcast with Cal Pierce, ley and John or.

00:01:06:09 - 00:01:17:22

Kyle Pearce

Get ready to be taught as we share our successes and our failures encountered during real life lessons. Learning how to build generational wealth from the ground up.

00:01:18:05 - 00:01:40:08

Matt Biggley

Welcome investment students to another episode of the Investing Teacher Podcast. On today's episode, we are going to discuss the most common regrets of real estate investors and choose the tips on how to avoid them. And this topic has really come up from the conversations you've been having with a would be real estate investors or novice realty investors who've reached out to us.

00:01:40:08 - 00:02:04:16

Matt Biggley

And I think one of the most common things we see in new or aspiring investors is fear, paralyzing fear, the fears that they have about investing really feed the reluctance that then feeds the inaction. And then you just get in a spin cycle of analysis, paralysis. So today we want to explore some of our regrets about our experience in real estate investing.

00:02:04:21 - 00:02:22:15

Matt Biggley

And maybe we're going to talk about what some of the Internet's biggest regrets are and we're going to talk about our perspective on those and how we can maybe pivot, avoid some of those. And I think we've got a really key message to share at the end just about your philosophy and perspective on encountering regrets or mistakes in real estate investing.

00:02:22:18 - 00:02:40:22

Kyle Pearce

I love it. I love it. Yeah. And it's interesting because we're going to be talking about mistakes and regrets and we're going to try to almost define maybe the difference or how we view those two terms in terms of our own investing journey. And we turn to the Internet like Mr. Bigley over here had told us. Now, we didn't just hit Google, though.

00:02:40:22 - 00:03:02:08

Kyle Pearce

We heard about this thing called chat Gbtc Maybe you've heard of it as well. We've been goofing around with that quite a bit, trying to understand and sort of stay on this whole the cutting edge of AI technology. And we just asked chat CBT before hitting record. We said, What are the biggest regrets real estate investors have shared over the past 20 years?

00:03:02:17 - 00:03:31:09

Kyle Pearce

And Chat Up is very, very well say politically correct and always likes to a preface with I can't tell you everybody's experience, but what I can do is take some of the most popular ones and they came back with eight different. And again, the word we used was regret. And ultimately when you look at this, these regrets to us sort of seemed like part of our checklist of what you'd want to do on every deal anyway.

00:03:31:16 - 00:03:52:04

Kyle Pearce

So it's one of those things where we almost think, Oh, it sounds like if these eight and I'll list them off for you here hit us with yeah, I'll hit you guys with them in just a second. These eight sounds to me more like ignorance. It sounds to me more like maybe getting in over your head and maybe not recognizing what should be done ahead of time.

00:03:52:06 - 00:04:05:19

Jon Orr

So maybe an early investor who has then over time with experience and getting into deals have come to realize, I should have done this, I should have done that and I should have done that. And maybe they didn't listen to a podcast that kind of helped them go through this all along.

00:04:05:24 - 00:04:35:08

Kyle Pearce

Absolutely. Now, I would argue that someone who does do that and does it that way, we like to think of that as learning, right? It might be an expensive lesson, but ultimately a lesson nonetheless. And now you know that lesson and now you probably won't repeat that same issue. So let's go through the lesson. We're not going to dig into them deeply here because we actually want to take these ideas and kind of dig a little bit deeper and almost share more of our perspective, of our own personal regret, some of the mistakes that we've made along the way.

00:04:35:16 - 00:05:02:22

Kyle Pearce

So due diligence, not conducting enough was listed overestimating rental income or property value. Again, something that if that happens, you go, oh, shoot after the fact. I guess it really wasn't worth this or the income wouldn't be that. Again, to us, that's part of that due diligence phase, right? Underestimating expenses. So how well do I understand the different expenses that we should be experiencing?

00:05:02:22 - 00:05:27:03

Kyle Pearce

If you're paying utilities, for example, or you're paying property tax, are you just estimating the property tax or are you actually looking to last year's property tax budget? Maybe you're using some sort of percentage and that percentage might be skewed a little higher just in case for any sorts of raises in taxes, ignoring market trends and economic factors, that is definitely one that could have an impact.

00:05:27:03 - 00:05:48:23

Kyle Pearce

We'll talk about that in a little bit. Not having a contingency plan. So what happens if we've talked about that one on previous episodes? Remember back when I bought my first property, my plan was, if I can't rent this thing, can I hold the mortgage? Can I pay the bills? That was my contingency plan. It wasn't what I wanted to do.

00:05:48:23 - 00:06:15:01

Kyle Pearce

But ultimately, again, to us, that's just part of due diligence. Poor financing choices. Sure, Yeah. Picking maybe not a great option. For example, those who just took a variable mortgage and let's say the last maybe 18 months ago when we were at all time lows, they might say, Hey, man, I wish I would have just locked in that fixed rate because now the rates are much higher, lack of diversification.

00:06:15:06 - 00:06:47:19

Kyle Pearce

And then finally, the last one that's listed is inadequate property management. But fellas, I want your perspective clear to me. I look at this list and I sort of look at it as the list of things that you want to consider with any investment. And to me, I feel like it doesn't seem like they would lead to the biggest regrets unless you learn something new after the fact that maybe you never knew in the beginning, which once again, it's like if I couldn't change anything about it is it really a full on regret?

00:06:47:19 - 00:06:54:03

Kyle Pearce

Is it really my fault? What does that look like in sound like? John? What's your perspective on this list and where's your head going here?

00:06:54:11 - 00:07:23:20

Jon Orr

I think what we stated before you read the list is that this is a list of folks who've expressed if they had to give off recommendations, insights to new investors. This is the stuff you should have done before you entered into the deal. Or maybe you should have thought about or come up with a plan around. When I hear that contingency plan, I think a lot of people might have realized, you know what, I got into this deal, but I didn't have the backup plan of what happens if this happens and what happens if this happens.

00:07:23:20 - 00:07:39:21

Jon Orr

Think about one of our recent deals, Kyle, we got into a flip with this is our goal. This is where we're going. But then we did have a back up plan for when things kind of don't go the way that we planned. And we actually in this case had to follow the backup plan and we're currently living the backup plan.

00:07:39:21 - 00:08:07:14

Jon Orr

And you know what? I think having that backup plan makes us, even though we're like a little disappointed, but we're like, hey, we plan for the contingency plan is now taking place and we've got that plan in place as a potential win still. So I think when you go through this list, it's people kind of saying, this is what I should have known or I wished I had known first instead of an actual, Hey, if I did all these things, I've made good deals and maybe some not so good deals, but these are the things we have to do anyway and we should be doing anyway.

00:08:07:18 - 00:08:27:10

Jon Orr

I don't think these are the real regrets. And actually I really want to get your both impressions on some of the real regrets you two have had over the last ten years or approaching ten years of real estate investing. So I don't know. Matt, what do you think? What is one of the real things outside of this list that you either regret or think was a mistake?

00:08:27:21 - 00:08:51:09

Matt Biggley

Yeah, Thanks, John. And I think overall this list sounds to me like it's about approach. Are you speculating in the heat of the moment? And speculating is not sound investing strategy? And I think our approach has been very careful, conservative, detailed and listen, there's no such thing as a perfect property out there. But we certainly, as you said, through the due diligence process, make sure that we've checked as many boxes as possible.

00:08:51:09 - 00:09:14:13

Matt Biggley

And one of the interesting things about our investing journey is some of the regrets or mistakes we would have had early on over time. And time is just a beautiful filter for these things. We can now kind of look back and almost laugh at ourselves or chuckle or because the mistake isn't quite so fresh. So time is the great healer and in this case, time really allows you to revisit the way that you think about those mistakes or about those regrets.

00:09:14:23 - 00:09:36:07

Matt Biggley

And so I would say probably one of our regrets is not buying more properties. It is interesting because one of the chat CBT regrets was talking about not looking at economic indicators or ignoring market trends. And of course you only know that the markets say hit bottom when the market has already started coming back up. It's impossible to time the real estate market and that's a mistake.

00:09:36:07 - 00:09:54:12

Matt Biggley

I would maybe say a regret that a lot of people make in trying to time the bottom because it's impossible. You don't know what's the bottom until the bottom is already gone. And so I think for us, looking back, I wish that we had bought more properties at a time when you could really buy cash flowing solid properties.

00:09:54:19 - 00:10:24:18

Matt Biggley

I think that we were almost too conservative or too careful or can only talk about a lot or we reflect on a lot and are going to call it a mistake or necessarily because we weren't wrong. Because I think our approach to investing has always been conservative, detailed, careful. We were careful not to overextend ourselves, talked about poor financing choices, and each output was so I think, not buying more properties at a time when certainly property values are much lower than they are today is a regret of mine.

00:10:24:18 - 00:10:30:08

Matt Biggley

I think you can probably expand on that because these were conversations we were having over the last seven, eight years.

00:10:30:15 - 00:10:56:19

Kyle Pearce

Totally. I think that conservative nature and that's my thinking around the numbers and all of those things is very conservative, or at least initially was very conservative, maybe too conservative. And I think it was more or less to convince yourself that you can do it right. And when you look at that list, that those eight it's almost like even though you might do all of those things ahead of time, you're still maybe questioning whether you did it right.

00:10:56:20 - 00:11:18:10

Kyle Pearce

It's like, oh, if I'm looking and making sure I want to make sure that I overestimated expenses, have I overestimated enough? I want to make sure I don't overestimate the income. Have I underestimated the income enough? Right. And it's all of those factors that I think give you sort of maybe pause where you're going. I just don't know.

00:11:18:18 - 00:11:44:12

Kyle Pearce

Now I recognize that obviously, I have confidence in the numbers and what we do. And now what I realize as well and I've talked about this previously, we were looking for the best deal all the time. And that's the craziest part about this whole journey, is that what we now realize is that some of the best baseball we're using baseball analogy here, some of the best baseball teams actually don't have a lot of home runs or a lot of Grand Slams.

00:11:44:12 - 00:12:07:05

Kyle Pearce

Right. They have lots of hits, though. They got lots of singles. They've got lots of doubles, maybe even a walk here. And they're right. And those are the teams that are actually the best teams overall because they're just looking for quick wins. So really now we'll call it a regret, but we like to look at it as learning and we've learned a ton through this process.

00:12:07:17 - 00:12:37:02

Kyle Pearce

Could we go back and say, you know what, There were a lot of deals out there that were great doubles, that were great singles. And ultimately, when you go through that list, that chat you shared with us, do the numbers work? Do I have a contingency plan? So am I okay to make sure we can float this thing and are we going to essentially be able to ensure that this thing isn't going to put us in a stressful sort of situation?

00:12:37:02 - 00:13:03:06

Kyle Pearce

Now, as you scale a portfolio? Right. And that's another part of what maybe hindered us from growing as rapidly as we could have. The way things worked out is that when you do think about whether we can sustain, assuming no one rents, right, eventually we probably would have tapped out pretty close to where we were. Right? If every single renter walked away and we had to make sure we maintained all these properties, then yeah, that could have been a concern.

00:13:03:06 - 00:13:23:04

Kyle Pearce

Now we start to realize that, oh my gosh, we have to recognize the statistics, we have to use data and we have to understand that, guess what? There's always going to be someone to rent. And when we think about this, we go, Well, let's imagine if the rental on average the rental income for a two bedroom single family home that we had is this number.

00:13:23:12 - 00:13:43:12

Kyle Pearce

It's like, how low can we push that rent until it becomes a problem for us? Because I'm going to tell you this, is that if it's 1500 dollars making up a number here, 1500 dollars is the average rent. Let's say the lowest you see is 13. The highest you see is 18, 19. Well, if the rent was $1,000, where would that put you?

00:13:43:12 - 00:13:59:18

Kyle Pearce

Right. So these are some of the things that now we look at it more differently and say there's going to be someone out there that's going to want to rent our property if we're charging less than everyone else, right? So starting to use the data and starting to build your confidence and understand that, hey, we can do this.

00:13:59:18 - 00:14:12:12

Kyle Pearce

If we are thinking about this deeply enough, then we're going to put ourselves in a position where when we make mistakes because mistakes are going to happen, that it'll be less of a regret and more of just learning.

00:14:12:19 - 00:14:38:13

Jon Orr

I'm curious on your thoughts on your decision making and where these kind of regrets mistakes. You feel like you've morphed your thinking along the way to better help the people who are listening right now or the person who's listening right now in specifically. I know that we've discussed on the podcast prior three Silver Bullets of Real Estate Investing and the Getting Appreciation, which we've called the Cherry on top, the mortgage paydown and then cash flow in your pocket.

00:14:39:00 - 00:14:56:05

Jon Orr

And I'm curious about when you think about some of those deals in the previous time or earlier, you've talked about kind of shifting your thinking over time that what are some of those hits or those doubles that you're like, Man, we were waiting for the Grand Slam. I think what I'm hearing you say, Kyle, is we are waiting for all three of these silver bullets to work out perfectly.

00:14:56:17 - 00:15:19:16

Jon Orr

And then now I'm curious, is your hit or your double maybe one of those we're going to like, hey, it's okay that we don't get this one thing here now and it might change later, but I'm curious about what the hit is versus the Grand Slam, because I think a lot of people are going like, okay, well, if my regret was not getting in sooner, how do I get in sooner?

00:15:19:16 - 00:15:22:19

Jon Orr

And what should I be thinking about on looking for those specific deals.

00:15:23:01 - 00:15:45:00

Matt Biggley

I think for us, John, and we're going to do a whole future episode, I think on almost rethinking the three Silver Bullets, particularly around cash flow, because current market conditions are such that cash flow isn't always necessarily available here in Windsor-essex. And I continue to get calls from investors in the GTA, agents in the GTA, they're looking for cash selling properties and they're searching all the way from Windsor to U.S..

00:15:45:00 - 00:16:05:11

Matt Biggley

Murray looking for that magic bullet. And I think part of our rethink here around singles and doubles has actually I'm going to take this in an interesting trajectory here. Interesting way has actually been about partnerships and about JVs joint ventures and accepting joint ventures. And so there was a time and I think my thinking is evolve so much on this that I would probably call it a regret.

00:16:05:11 - 00:16:27:00

Matt Biggley

Now is not being more open minded to sharing the wealth, not being more open minded earlier to partnerships. So part of the Grand Slam mentality for me was I wanted to keep 100% of everything and I've had to do a lot of learning and a lot of growing and I think a lot of discussing to get to a point where now I'm very much open to sharing these opportunities with others.

00:16:27:00 - 00:16:49:16

Matt Biggley

And so accepting as my portion a single or a double of what might be a homerun or Grand slam deal. That's one of the ways that my thinking has evolved around singles and doubles and not just going for those moonshot deals. In fact, the social part, the dynamics that even the three of us when talking about the properties we own together, that's now become one of my favorite parts of real estate investing.

00:16:49:21 - 00:17:13:13

Matt Biggley

If I was only investing on my own and Kyle and I have always invested together, it would be a pretty lonely existence. Not a lot of people are into this to begin with, and so finding a little bit of community and being able to bring others into these deals and open up their minds to the amazing possibilities and life changing opportunities with real estate investing, that's been part of my evolution.

00:17:13:13 - 00:17:25:11

Matt Biggley

So maybe not the answer. You are looking for a job, but as you ask that question, I thought that is one of the ways that my thinking has evolved the most. So regret would be not embracing that sooner in our real estate investing journey.

00:17:25:20 - 00:17:40:13

Kyle Pearce

I love that. I love that. Matt It's interesting because I didn't know where you were going to go with that question. I was picturing some of the properties that we've done in the past. We've done a few flips that we came out okay, but it was just a lot of work and we just felt maybe more stress than we would.

00:17:40:13 - 00:18:00:20

Kyle Pearce

On typical buy and Hold Deal. So I was picturing that. But your articulation of the whole idea of joint venturing and really thinking about, like you had said, not only by connecting, we're connecting with so many people now, especially from the podcast, from your work in real estate. And both John and I are very, very active in those communities as well.

00:18:00:20 - 00:18:21:05

Kyle Pearce

Now one thing that's interesting that came up in the chat up t list that gets addressed when you start opening the door to joint ventures. So if you think about this, you and I have been very heavily invested in Windsor, Essex. I had some properties in the U.S. that's sort of how I began my journey and now still have a property in Arizona.

00:18:21:05 - 00:18:49:22

Kyle Pearce

Something that's interesting is when we talk about diversification, right, Rather than diversifying, let's say, out of real estate, an opportunity that people have to diversify out of their own market is through joint venturing, and that helps both sides. So while in Windsor, Essex, we tend to be the deal finders, we tend to be the managing partner. It's interesting because we also access joint ventures as money partners, but in different areas.

00:18:49:22 - 00:19:14:23

Kyle Pearce

So when you think about where you are, if you're sitting in Toronto and we just spoke with someone last week, we won't say their name because we never ask them asked to share it. But this particular individual has a very secure job. We'll call it like a golden Handcuffs career. They have two properties in the GTA and they were kind of wondering about coming to Windsor and should I do it alone in Windsor?

00:19:14:23 - 00:19:36:00

Kyle Pearce

Should I do it through a JV? For us, it makes a ton of sense to go, you know what? When we find a good Windsor Essex deal to find a money partner so that we can conserve our capital to then diversify out into a different area, whether it's GTA or whether for us we find it hard in GTA, we find it very difficult to meet our personal needs.

00:19:36:08 - 00:19:54:12

Kyle Pearce

But if we want to go into a different market, be it in the U.S. being in different parts of Canada, we can then take our capital and then we can be the money partner for a joint venture in a different area right in a different postcode because we don't know that area as well as the managing partner in that area.

00:19:54:12 - 00:20:15:00

Kyle Pearce

So when you think about it, it's like we can give a little bit here in order to access more diversification somewhere else. Now, if you're in Windsor, Essex and you're listening to this, we're not suggesting that you go outside of Windsor, Essex if you don't have any investment properties yet, probably doing that first in your own area with a partner is a great idea.

00:20:15:08 - 00:20:36:11

Kyle Pearce

But over time, as you start building that portfolio, if you're concerned about market risk, if you're concerned about diversifying because of different factors, for example, here are plant, the battery plant is on pause because market conditions I don't know if we talked about it on the podcast earlier, but it's something that I've been talking locally with people about.

00:20:36:11 - 00:21:07:20

Kyle Pearce

They're like, Oh, Windsor, Essex is going to be great no matter what. Well, we don't know what will come, right? So having different options and being able to go outside of your area is one of the big, big wins from a joint venture situation. So I'm so happy that you went there, Matt, because it definitely wasn't on my radar, but it's something that I think we could have been more involved in along the process, both as a managing partner, but then also on the money side and venturing out of Windsor, Essex a little bit earlier.

00:21:07:24 - 00:21:30:09

Jon Orr

I'm glad you guys articulated that as something that you've kind of wished was a little bit different or a little bit earlier. I think that earlier kind of regret is usually the case when we talk about real estate investing. And I know that this earlier idea is one of my biggest regrets. I'm sure you guys could also say the same thing is probably the most stated regret, even though it did not come up in the list.

00:21:30:16 - 00:21:58:02

Jon Orr

Then when we talk with potential joint venture partners or other real estate investors, is the fact that maybe you wish you started sooner. And I know that that's the case that I wish that I was in. I haven't been involved in real estate investing as long as you two have, and I already kind of have that regret going like I wish I had been involved or I had learned along the way earlier, because you would already be that farther along and that's, I think, where people start to go.

00:21:58:02 - 00:22:08:20

Jon Orr

I wish I just had started earlier. I wish I know more, and I think that's my biggest regret. I'm sure you guys can say the same thing because you know that your portfolio would be that much bigger if you started earlier.

00:22:09:00 - 00:22:39:06

Matt Biggley

Yeah, absolutely. I think this is probably one of the biggest regrets of people that we talk to is not getting started Earlier, I wish us really erstwhile properties are so much less expensive, although maybe we wouldn't have enjoyed a massive appreciation we've had of this bull run in the real estate market. Kyle and I have a friend who is actually a realtor, someone we've attended training with, a really great guy and a great realtor and years ago and we attended training, he was already saying he regretted not investing in real estate at that time and he was an agent at that time as well.

00:22:39:09 - 00:22:57:01

Matt Biggley

He's gone on to become a much more successful agent. And oftentimes when I run into we start talking real estate, he'll say, Man, I still haven't an in real estate. I really wish I did. And I would actually say in that case, his regret given that it stretched out for so long, is actually going to have turned out to be a mistake.

00:22:57:01 - 00:23:24:06

Matt Biggley

And we differentiated between regrets and mistakes before because it's all about time in the market. And so the longer you wait, the last time you have for that property to have those three magic bullets of appreciation, mortgage paydown and cash flow, well, the cost of properties only goes up. And something that as people are, they're like, Well, of course I feel like I'm too inexperienced or not ready or I don't know enough to get started.

00:23:24:06 - 00:23:45:20

Matt Biggley

That's why I'm not getting started. But is exactly what we just talked about. This joint venture way of investing offers everyone a safety net because on the flip side of that joint venture, you get to leverage someone's experience, know how aptitude for all of this, and you can literally be as passive or as involved as you want to be.

00:23:45:20 - 00:24:07:09

Matt Biggley

So I'm going to say like, let's cut the B.S. There's actually almost no reason for not getting started in real estate investing. Of course, some people are in need to raise the funds or what have you, but that's that spin cycle that so many people get in that analysis. Paralysis is rubbish because we've got a real safe entry point for you to get started in real estate investing.

00:24:07:13 - 00:24:24:00

Matt Biggley

When I first started real estate investing, my dad used to say, I'm too old to do that. I'm too old. And I say, Dad, come on. I mean, we had no idea what fortunes real estate investing would bring us, but certainly it's been an incredible thing for us. And here we are. My dad in his early seventies now we're eight, seven, eight years later.

00:24:24:06 - 00:24:39:06

Matt Biggley

It would have been a benefit to him as well. But at that time he didn't feel ready. And so many others, my dad, certainly not alone, so many others did not feel ready or were scared to get a real investor. And what I'm saying here is there's simply no reason for that.

00:24:39:14 - 00:25:04:19

Kyle Pearce

I love it. And if I rewind all the way back in, recap some of my own personal journey, it's obviously very easy for me to recall here, is that I started picking up real estate books before the housing market crash in the U.S. I started that journey back in 2006 27, and I didn't pull the trigger until 2012 or 2011, I believe it was for my Florida property.

00:25:04:19 - 00:25:26:16

Kyle Pearce

So that was a long time. Now, that was also with me. I'm very I think the word is obsessive. When I have an idea, I go down the rabbit hole and it took me that long to build enough confidence to be able to actually pull the trigger and invest. And really one of our big goals here through this podcast is to try to shorten that window down for you.

00:25:26:16 - 00:25:43:21

Kyle Pearce

Now, at the time I had no idea what a JV was or a joint venture, so that wasn't even an option for me. But knowing who I am, I needed to go through that sort of pain and suffering. So hopefully you feel like this podcast is helping you get there a little bit sooner and to give you that confidence.

00:25:43:21 - 00:26:05:24

Kyle Pearce

But one thing that I think is probably an area that I wish I knew or recognized ahead of time will shift into some big takeaways from this lesson or from this episode. In my own world, I wish that I had someone to help me become more clear on what my actual goal was. And your goal cannot be vague.

00:26:06:00 - 00:26:28:23

Kyle Pearce

When John and I work with school districts, we're math geeks and we work with district leaders to help them set plans and their vision. What we find is that people know we want kids to be successful in math. That's very vague. What does that look like? Think about that for your own investment journey. If you look down the road, you just say, I want to be wealthy or I want to have lots of money.

00:26:29:12 - 00:26:59:16

Kyle Pearce

What does that mean? And then what's my best strategy? What's my timeline? Do I want that to happen next year? Your strategies can be very different if you want your self to be rich next year, It's also going to be very hard and scary and maybe speculative. But if you're looking down the road, you say, Listen, by this date I want to be able to have passive income coming in that will be this many dollars that's very specific and we can help.

00:26:59:16 - 00:27:22:24

Kyle Pearce

And I say we folks who are in this world can help you try to find the strategy that makes sense for you. Our friend that we spoke with last week from the podcast reached out to us and wanted to learn more about joint ventures. And what we found through the conversation was this person was open to all kinds of ideas, but didn't necessarily know exactly what they were looking for.

00:27:22:24 - 00:27:44:16

Kyle Pearce

They just wanted investment, right? A successful investment. Hey, listen, that is going to make it harder for you to take that first step because you're not exactly sure what you want out of the investment so that you can decide, is the stock market the right move? Is it index funds? Is it real estate? If it's real estate, do I want to do it on my own?

00:27:44:16 - 00:28:11:10

Kyle Pearce

Do I want to do it in my own market? Do I want to manage it? All of these things are questions that we have to figure out, because if we don't figure those questions out, my big takeaway, and I hope you're hearing it here, is that one or more mistakes or regrets, whatever you want to call them, will likely happen because later at a later date, you're going to recognize what it is you really wanted and you picked the wrong path to help you get there.

00:28:11:14 - 00:28:40:24

Kyle Pearce

So if you're unclear what you want, you're starting down a path. But the path is super wide, super wide, and you can end up anywhere. Think about that trajectory. You change that trajectory one degree ten years down the road, you're going to be way in a very different place than if you were one degree in the opposite or in the other direction, even though it seems like not a lot now, getting clear on what it is you want is going to set you up so that later you can look back and say, I did everything I could do.

00:28:41:10 - 00:29:02:13

Kyle Pearce

And my contingency plan, even if, like John and I on this current quote unquote flip, that will now probably be part of our portfolio for the next little while. That was our contingency plan. So we don't have a regret. We don't actually have a regret on this. It didn't turn out as optimally as we would have liked, but we knew what could potentially happen.

00:29:02:23 - 00:29:27:09

Kyle Pearce

It was low probability chance and it did happen. And now we're going to go with the contingency plan. So later we look back and go, sure, maybe there's a few things we would change, but we don't have to look at it with regret. We can look at it as learning and we know next time, hey, here's a little maybe a flag we now see that we never saw initially, and we're still going to be okay and we'll learn from that.

00:29:27:12 - 00:29:30:21

Kyle Pearce

How about you, fellows? What's the takeaway for you? Let's go to John Kyle.

00:29:30:21 - 00:29:52:17

Jon Orr

That's a great eye opening message. I think you've left with the listener right now by stating that we can't actually decide if things are going to be a regret or a mistake until we clarify where we want and what we are looking for with investing or with any decision. I think this isn't just only a real estate investing kind of message that you're sharing here with us.

00:29:52:18 - 00:30:13:04

Jon Orr

This is a huge message of where do you see yourself? Where do you see where you're going? And setting up objectives and measurable key results can help you get there. Writing them down is super important to achieve that, and I think being clear on what you want and when you want it and what it's going to look like is going to kind of clear the path for you.

00:30:13:10 - 00:30:38:12

Jon Orr

And it will take, I'm sure, and this is what it helped with me, is it will take that hesitation to act in the fact that you've got that plan in place because you clarified the vision is going to make you act. It's going to actually make you act so that a year from now you're going to look back and go, I'm so glad that I made this pathway or I made that vision because now I have my portfolio started and it's already working for me versus being that person.

00:30:38:12 - 00:30:41:01

Jon Orr

That's like, I didn't take action yet.

00:30:41:10 - 00:31:07:08

Matt Biggley

I love that. I think in general, people spend far too much time rethinking mistakes or regrets, almost like looking for some kind of deeper meaning or trying to understand why it happened. And I think that we've talked about it throughout this podcast as a theme. There are really no mistakes. It's only learning. And I think that so much of life, real estate investing, the journey of it isn't a straight line, it's not A to B, it's just a lot messier than that.

00:31:07:16 - 00:31:28:04

Matt Biggley

And the good news is that's okay and it's worth it. All of that learning is worth it. Now, if we can help you avoid some of those regrets or mistakes, then all the power to you. And that's part of your learning journey. And what are my real estate coaches said to me once upon a time to never make yourself rob, just to accept that it happened and to move forward and focus on the solution.

00:31:28:04 - 00:31:43:23

Matt Biggley

And I thought psychologically that was a really great approach to life, to real estate and in this case, to real estate investing. So it's not about being wrong, it's just accepting it. It happened and it's about moving forward with solution based thinking. That hit me. And I really like that.

00:31:44:11 - 00:32:11:04

Kyle Pearce

I love it. I love it. So friends, when you're reflecting there after listening to this episode, think to yourself, What is your goal? Why are you listening to this podcast today? Right? Maybe you're not that clear yet, but you can start that journey now by thinking through what is it that you want to achieve through this work. Now, you don't have to set a ceiling on it, but at least get your first goal taken care of if it's something to live a little bit better in retirement.

00:32:11:10 - 00:32:30:16

Kyle Pearce

Hey, guess what? That puts you in a really great spot to not have to worry about things like market conditions. Because if retirement's ten years off for you, you've got a good runway to help you do that if you're trying to leave your job. A lot of people have reached out to us and said, Hey, I want to leave my job by next year, over the next five years.

00:32:31:01 - 00:32:57:15

Kyle Pearce

What we would say is, okay, you've got your goal set. Now, what investment or strategies are going to help you get there? And let's make sure that you've already got them in place over this five year runway so that you're not retiring or leaving a profession and not actually having known whether you can replace that income. Member Grant Cardone says poor people replace their income, wealthy people add to their income, right?

00:32:57:15 - 00:33:27:19

Kyle Pearce

So keep those things in mind if you find any of these episodes helpful to you, helping you think through where you want to go next. From an investment standpoint, we would so appreciate that subscribe button getting clicked. Whether it's on your favorite podcast platform, if it's on YouTube, that would be great. And of course, ratings and reviews go a long way to ensuring that the interwebs share this information with more people just like you who are struggling with the same thing.

00:33:27:19 - 00:33:40:07

Kyle Pearce

So we're on the same journey as you and you're trying to help nudge forward in your investment journey. So we so appreciate it. And of course we can't wait to hang out with you in our next episode.

00:33:40:07 - 00:33:58:06

Jon Orr

All links and resources and a complete transcript from today's episode can be found over on our website. I invest in teacher and the specific page you want to head to as best teacher dot com forgot Episode 24 Again that is invest in teacher dot com forward slash episode two or.

00:33:58:17 - 00:34:17:23

Matt Biggley

If you would like to find out about some joint venture investment opportunities to book a call with us to ask us questions to layout your scenario and get some advice or some opinions reach out to us at Canadian Wealth Secrets dot com forward slash JD that's investing teacher dot com forward slash JV.

00:34:18:09 - 00:34:23:18

Kyle Pearce

All right our invested students class dismissed.

00:34:37:23 - 00:34:48:21

Jon Orr

Just as a reminder the content you heard here today is for informational purposes only you should not construe any such information or other material as illegal tax investment, financial or other advice.