Overestimating Your Time & Underestimating Your Value

Life by Design

Player FM - Internet Radio Done Right

Added two years ago

Content provided by Jessilyn and Brian Persson and Brian Persson. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Jessilyn and Brian Persson and Brian Persson or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://staging.podcastplayer.com/legal.

<div class="span index">1</div> <span><a class="" data-remote="true" data-type="html" href="/series/action-academy-replace-the-job-you-hate-with-a-life-you-love">Action Academy | Replace The Job You Hate With A Life You Love</a></span>

1
Action Academy | Replace The Job You Hate With A Life You Love

Unsubscribe

13 hours ago13h ago

Unsubscribe

Daily

Ready to replace your 6-figure salary with real freedom? This is the podcast for high earners who feel stuck in jobs they’ve outgrown. If you’re asking, “How do I actually replace $10K–$20K/month so I can quit and never look back?” — welcome home. At Action Academy, we teach you how to buy small businesses and commercial real estate to create cash flow that actually replaces your job. Monday through Friday, you’ll learn from 7–9 figure entrepreneurs, real estate moguls, and acquisition pros who’ve done it — and show you how to do it too. Hosted by Brian Luebben (@brianluebben), who quit his 6-figure sales role in 2022 to build a global business while traveling the world. If you're a high-income earner ready to become a high-impact entrepreneur, this show is your playbook. Subscribe now and start your path to freedom — or keep pretending your job will get better someday....

16 days ago 26:40

MP3•Episode home

Episode Title

37 - Overestimating Your Time & Underestimating Your Value

Episode Notes

In this episode of the Life by Design Podcast, Jessalyn and Brian discuss the common pitfalls in real estate investing, particularly the underestimation of time and costs associated with renovations and property management. They emphasize the importance of valuing one's time, the mental costs of DIY projects, and the benefits of hiring professionals. The conversation also touches on the significance of finding the right partners in real estate to complement one's skills and alleviate stress. Ultimately, the episode encourages listeners to measure and value their time effectively to enhance their real estate investing experience.

Chapters

00:00 Intro: Overestimating Time and Underestimating Value

03:10 The Time Sink of Managing Renters

06:34 The Cost of DIY Maintenance

09:26 Valuing Your Time in Real Estate

12:17 The Mental Cost of DIY

15:21 Finding the Right Partners in Real Estate

18:19 Measuring Your Time and Value

26:33 Outro

Resources discussed in this episode:

Contact Jessilyn and Brian Persson | Discover Life By Design:

Transcript

Jessilyn (00:10)

Welcome to the Life by Design Podcast with Jessalyn and Brian, your real estate investors and strategists to help you build your wealth. DiscoverLifeByDesign.ca has a quiz for you to see what kind of a real estate investor are you. Today's topic we're going to be talking about overestimating your time and underestimating your value. So Brian did you want to kind of intro into why we wanted to go into this topic?

Brian (00:36)

Because every real estate investor does it. They always underestimate the amount of time and they always don't include their own true value into the situation.

Jessilyn (00:49)

So when you say overestimate your time, do you mean like, I'm gonna buy a property, I get the keys, it's not all just smooth sailing from there?

Brian (00:57)

No, no, not at all. So we're not fix and flippers, but fix and flip is like the most kind of typical example of where your time gets overestimated. And the way that it looks is like, think, you you buy a property, it's going to take three to six months to renovate and it ends up taking nine or 12 and you have to carry all those costs throughout the nine or 12 months, not just like the renovation costs, but like your holding costs, the interest on whatever you're paying.

for the loan and everything else, like utilities and insurance, everything. So yeah, typical super simple example of like a way that real estate can like vastly underestimate the time that it takes.

Jessilyn (01:40)

Yes, I do remember because we obviously invest in sweated properties as we've discussed before. But two of those that we bought were not turnkey. And so we had to have the basements renovated. And some of those took longer than we had anticipated. so of course, like you said, we had to hold it for two months longer for the holding costs, not to mention the investment costs because it is more money to get the changes needed that we needed. But yeah, there was definitely...

more room for error that I think we should have estimated in than we did originally.

Brian (02:13)

Yeah, the first one was definitely the roughest because we were a little bit naive back then and trusted contractors to actually do what they were supposed to be doing. And although the quality of the work ended up being good, the timing of it was not as good. And we didn't know to be on top of the contractor as well back then. So I think if I remember correctly, that one took five months and it should have took three. So we got lucky in that sense. I've heard horror stories where it should have taken three months and it ticked.

takes 12. We were not that bad, but still, you know, that's an extra two months of interest. That's an extra two months of utilities. That's an extra two months where you don't have rent collected. All these, all that, that two months adds up into like a lot of cost in, a very short period of time.

Jessilyn (03:02)

It does. And there's of course, insurance and property tax. Those don't stop just because you don't have a renter in there. But like you said, we don't focus on fix and flips, but we do focus on buy and holds and renters. And so the time trap in there, where would you say that really takes your time that people may not really be aware of if they don't currently buy and hold?

Brian (03:25)

When it comes to the renters, you know, there's the usual of like not really controlling your time. Renters are going to text you or message you or email you whatever communication you have, like at any time they want. And you might have to deal with it or you might have to be smart enough to like somehow manage that in some way. filling a property, that's probably the biggest time sink for me and for probably property managers as well.

And that's why they charge, right? Like that they charge, you know, your, flat fee, but then they charge on top of their flat fee, very often a filling fee, like to fill that rental because it takes a heck of a lot of time. in our market right now, Sherwood park, we, it, it's very, very, very little rental in available here. So when we put something out for rent, a lot of people apply to it and you have to.

respond and manage and book and like do all these different things to get these people to view your suite so that you can actually have a renter. People think it's going to be easy. It takes a tremendous amount of time just to fill like an hour or two hour slot for, for viewing.

Jessilyn (04:37)

Right. And then of course, when you do have your candidates narrowed down, you have to go through the background checks and that's not necessarily just a security check, right? That could be checking records, whatever we go through. I know some people go through their social media just to make sure like they are who they say they are and they're not like big partiers if that's not what you're looking for. So the time does add up.

Brian (05:02)

does, yeah. Luckily with the online systems nowadays, the actual checks take quite, like they're quite quick. Yeah, but scheduling, man. That's where it comes down to. Scheduling, scheduling, scheduling. Like trying to fit all those tenants in so that you're not like using up all your weeknights, your weekends, and trying to get them into a tight period. You and I are very big on calendar. So like, I think we spend,

Jessilyn (05:09)

Yeah...

39 episodes

Overestimating Your Time & Underestimating Your Value

Life by Design

published 16 days ago

MP3•Episode home

Episode Title

37 - Overestimating Your Time & Underestimating Your Value

Episode Notes

Chapters

00:00 Intro: Overestimating Time and Underestimating Value

03:10 The Time Sink of Managing Renters

06:34 The Cost of DIY Maintenance

09:26 Valuing Your Time in Real Estate

12:17 The Mental Cost of DIY

15:21 Finding the Right Partners in Real Estate

18:19 Measuring Your Time and Value

26:33 Outro

Resources discussed in this episode:

Contact Jessilyn and Brian Persson | Discover Life By Design:

Transcript

Jessilyn (00:10)

Brian (00:36)

Because every real estate investor does it. They always underestimate the amount of time and they always don't include their own true value into the situation.

Jessilyn (00:49)

So when you say overestimate your time, do you mean like, I'm gonna buy a property, I get the keys, it's not all just smooth sailing from there?

Brian (00:57)

for the loan and everything else, like utilities and insurance, everything. So yeah, typical super simple example of like a way that real estate can like vastly underestimate the time that it takes.

Jessilyn (01:40)

more room for error that I think we should have estimated in than we did originally.

Brian (02:13)

Jessilyn (03:02)

Brian (03:25)

Jessilyn (04:37)

Brian (05:02)

Jessilyn (05:09)

Yeah...

39 episodes

All episodes

1
Angela Goodman on Money Mindset Blocks & Flow 25:20

1 day ago25:20

24:28

In this episode, hosts Jessilyn and Brian Persson share the three key strategies they used to grow their real estate business and how following these strategies can save listeners time, money, and avoidable headaches. It all starts with education. Both Jessilyn and Brian agree that education and real estate success go hand in hand. The more you know, the better the decisions you’ll be able to make. Takeaway number one is to pick an investment strategy and stick with it. Maybe you want to follow the BRRR method, or maybe you want to focus on multi-family residences. Trying to follow several investment paths can lead to confusion and overwhelm. Whichever strategy you choose, it should light you up and help you sleep well at night. Takeaway number two is to network with experienced investors. The best way to learn new tips and make lasting connections is to network with investors who have more experience than you. You never know when those relationships will provide rewards in the future. Takeaway number three: Invest in a program or hire a coach—often, they’re one and the same. Many investors make costly mistakes on their journey to success. By working with a coach or joining a program, you can learn proven strategies from experienced professionals, helping you avoid common pitfalls. Whether you're new to real estate investing or have some experience, a coach can save you time, money, and stress while fast-tracking your success. Resources discussed in this episode: The 3 Mistakes that Keep High Achieving Couples from Building their Wealth, Freedom & Living a Life they Love BRRR Method: Buy, Renovate, Refinance, Rent (Repeat) -- Contact Jessilyn and Brian Persson | Discover Life By Design: Website: DiscoverLifeByDesign.ca Instagram: DiscoverLifeByDesign Facebook: Discover Life By Design Linkedin: Discover Life By Design -- Transcript Jessilyn Persson: [00:00:09] Welcome to the Life by Design Podcast with your hosts, Jessilyn and Brian Persson. We support couples in achieving their wealth goals by sharing our journey of overcoming barriers to build our financial empire. Brian Persson: [00:00:20] Recognizing the growing need for couples to find alignment and invest confidently in real estate, we created the Riches, Relationships and Real Estate Program. Our goal is to support you in achieving your financial and relationship goals together. Want to know more about what's stopping you from building your wealth? Make sure to go to discoverlifebydesign.ca/wealth and download 'The 3 Mistakes that Keep High Achieving Couples from Building their Wealth, Freedom & Living a Life they Love'. Jessilyn Persson: [00:00:50] Today's topic is three key strategies we use to educate ourselves on real estate. So Brian, the takeaways that we're about to discuss, how do you think our lives would have been different had we actually utilized these takeaways before we got into real estate investing? Brian Persson: [00:01:08] Well, we'd probably be high fiving each other doing this podcast on a beach in some tropical destination. Jessilyn Persson: [00:01:15] I would be down for that. Brian Persson: [00:01:17] That would be one thing that's different. But you can't predict the future, that's one of the problems. The reality is, is that education and real estate are so closely intertwined. Real estate is a massive game and it is a super wide amount of skills that you can take on and you honestly need to know a little bit about everything in order to play the investor game really well. If we got ourselves educated in some of the ways that we're going to talk about here, our whole portfolio would be different. The thousands of dollars in mistakes that we made would have been different. The amount of time we would have burnt would have been a lot less. I could go on and on about all the things that were different. Another way that we would have done things differently is the type of real estate we bought from the beginning. We started with condos, I know you wanted to just buy something. Jessilyn Persson: [00:02:19] Well, it stemmed from, I was the marketing director for a real estate company at the time, and I saw this really awesome looking condo that came in at a pretty good price. I knew the renovations that the owner had done and what they originally paid for it and I was like, this is a great idea, let's get in. We didn't think twice, we just went and took a look at it, put an offer on and got it. Brian Persson: [00:02:43] It ended up being an okay deal. Was far from our best performing property, but we probably would have taken a little more time to buy a different style of property more similar to what we are buying now because we never had the education or the understanding to run the numbers and understand the differences and the types of real estate. Jessilyn Persson: [00:03:05] Also, location. We weren't educated on what makes an ideal rental property from a location perspective. Brian Persson: [00:03:13] We made a huge mistake on location on that property, and luckily we got out of it early enough because the location that it's in has gone even more downhill than it was when we sold it. And actually, that property as well, if we had education we would have made the same mistakes on renters. The very first renter, I was just so excited to get a renter in there, I pretty well picked the first one that came across and so many things went wrong. Jessilyn Persson: [00:03:43] Those were what we call great learning lessons. Brian Persson: [00:03:46] The move-in date was on a date that we were out of town for some reason. (We were on holidays.) And so I had my buddy take the keys- Jessilyn Persson: [00:03:56] A buddy with zero real estate experience. Brian Persson: [00:03:58] Keep in mind, I had not much more. He thought it was totally okay, without checking with me, that they didn't take the security deposit. Jessilyn Persson: [00:04:10] Just hand him the keys. Brian Persson: [00:04:11] I ended up spending 6 or 9 months in the long term just by fluke. They turned into really good renters. But I spent 6 to 9 months, I think it was, chasing rent checks and stuff like that with these guys. Once they got their life sorted out and everything settled, they were really fantastic renters. But that was a really stressful first year of renting because of not knowing how to pick a renter, putting the wrong systems in place to do everything about property management. Jessilyn Persson: [00:04:46] That was a great lesson for us to learn on, who's meant to be a property manager and who is not. Brian Persson: [00:04:54] It made all the other properties a lot easier to manage. Jessilyn Persson: [00:04:57] And we knew I had to step away. Brian Persson: [00:05:00] Jess figured that people have common sense and they just do things exact...…

Welcome to Player FM!

Player FM is scanning the web for high-quality podcasts for you to enjoy right now. It's the best podcast app and works on Android, iPhone, and the web. Signup to sync subscriptions across devices.