YFP REI 38: New Years Goals for Real Estate Investing

New Years Goals for Real Estate Investing

Tim Ulbrich and Tim Baker discuss goal setting, the importance of your ‘why,’ and translating each to a realistic plan toward real estate strategy in 2022.

Episode Summary

It’s a fresh new year and a great time for all of us goal-oriented pharmacists to take a step back and think about goal setting if you haven’t done so already. We’re kicking off 2022 by going back to our roots and having our very own YFP founders, Tim Ulbrich and Tim Baker, on the show. Tim and Tim talk us through the ins and outs of setting realistic goals, why it’s important to keep revisiting your ‘why,’ and share insights from each of their impressive journeys. Tim Ulbrich gives us his top tips to tackle the mindset dilemma of saving for emergencies or scary events versus putting that money into the goals that carry a bit more risk. Tim Baker imparts some hard-won advice about overcoming our fears around debt. We talk about the importance of consistent financial planning instead of a static plan of which real estate might only be one of many parts. We also offer some questions that you should be asking your planner around prioritizing within that plan. Hear about community and coaches that can keep you accountable and help you take the next step forward, what one-on-one coaching does for you, and why YFP Planning is different. The episode ends with an exciting announcement about our first-ever group coaching program, None to One, and how to apply. 

Key Points From This Episode

• How to start the year off with strong goals and taking the time to revisit your ‘why’.
• Some examples of realistic goals and why they matter in day-to-day reality. 
• Why having a planner who asks the right questions is crucial.
• The importance of the act of recurring planning as opposed to having a static plan. 
• How humans grow and change over time; and your financial plan should too!
• Steps to overcome the dilemma of saving versus paying towards your goals. 
• Tim Baker shares some ways to tackle the fear around concepts of debt. 
• Hear about some observations of the benefits of having a community or a coach.
• Tim Ulbrich gives a healthy reminder about avoiding comparisons. 
• What one-on-one coaching really does for you, and why YFP planning is different.
• The one thing to start with if you’re a pharmacist who has decided to take the plunge. 
• Including things in your budget that are just for you, like quality time with your spouse.
• Tim Ulbrich recommends a book that created a pivotal moment in his journey.
• How you can just cannonball into the water sometimes and figure it out as you go. 
• An exciting announcement: how you can apply for our first group coaching class!
• Who would be a good fit for this course, and what we’re planning for the future.

Highlights

“For many that are dabbling [in] real estate investing, your mindset is shifting in the direction of realizing more and more is possible; probably more than you had even originally imagined.” — Tim Ulbrich [0:03:36]

“In the life plan, it’s all about the financial plan supporting the life plan.” — Tim Baker, CFP [0:08:09]

“The enemy of being content is comparison. You want to have a healthy drive and sometimes you do that by comparing yourself to others but, at the same time, you don’t want to be derailed because of that.” — Tim Baker, CFP [0:23:46]

“What makes us very different at YFP Planning is that we do give a damn about real estate investing. We do see it as a viable way to build wealth inside of the financial plan – and most advisors don’t do that.” — Tim Baker, CFP [0:24:53]

“Put down that goal on paper. Talk it out loud and identify what’s the one next thing that you’re going to do. Break it down [into] micro goals that, over time, are going to compound into something bigger.” — Tim Ulbrich [0:27:08]

Links Mentioned in Today’s Episode

• YFP Planning: Financial Planning for Pharmacists
• The 4-hour Work Week by Timothy Ferriss
• YFP Real Estate Investing Podcast
• Ally Online Savings Account
• Your Financial Pharmacist Webinars
• Learn More About the None to One Group Coaching Program
• Start.: Punch Fear in the Face, Escape Average, and Do Work That Matters by Jon Acuff
• YFP Real Estate Investing
• Join the YFP Real Estate Investing Facebook Group
• Your Financial Pharmacist Disclaimer and Disclosures

Episode Transcript

[INTRODUCTION]

[00:00:07] NH: Hello, and welcome to the Your Financial Pharmacist Real Estate Investing Podcast, a show all about empowering pharmacists to achieve financial freedom through real estate investing. I’m Nate Hedrick. Each week, my co-host, David Bright and I explore stories from pharmacists all over the country who are achieving their real estate goals, while maintaining a meaningful career in pharmacy. Whether you’re a first-time investor or a seasoned pro, we’re here to provide education and inspiration about the world of real estate. 

Please note, this podcast is intended for educational purposes only, and should not be considered financial or investment advice. 

[EPISODE]

[00:00:41] NH: Alright. Hello and welcome to the YFP REI Podcast. It is 2022 everybody. Happy New Year. 

[00:00:48] DB: Yeah. Happy New Year, everybody. This is a fun mile marker event where all of us goal-oriented pharmacists can take a step back and think about goal setting for the new year, if you haven’t done so already. 

[00:01:00] NH: We figured what better way to kick off the new year by going back to our roots. Starting back with Tim and Tim, we’ve got Tim Baker and Tim Ulbrich back on the show. Gentlemen, welcome back. Happy to have you guys here. 

[00:01:11] TB: Thanks so much, guys. Happy New Year and big thank you to you guys for the effort that’s gone into making this show happen and the impact it’s having on pharmacists all across the country. So, really appreciate what you guys are doing. 

[00:01:22] TU: Yeah. Good to be back. I’ve really liked the content that you guys have been putting out. Yeah. I love this topic of goal setting and hitting the reset button, seeing where we’re at and looking forward to chatting more about that today. 

[00:01:34] DB: I’m looking forward to this as well. I think that translation from big picture goals and how that turns into a plan is really important, particularly making that plan realistic, whether that’s trying to find something in your market, that’s a deal in a really hot market or trying to figure out what’s a realistic first step or a realistic next step. I think, those realistic goals are just really critical. 

[00:01:57] NH: I agree. Especially when you look at I mean, most podcasts we listen to, most guests that come on, they’re sharing their best deal or they’re sharing the worst deal. It’s always extremes, not the reality of the day in and day out. So setting, taking a step back and looking at what is a realistic goal and why does that go matter to me? That can be really essential. You’re going to learn the ins and outs of a storage unit investing? Are you going to buy 20 units storage building? Or are you going to take the first step, toward your real estate investing goals? What does that look like? I think, we really want to take a hard look at that as we kick off the New Year. 

[00:02:30] DB: Yeah. I think with that, if we’re starting off this New Year with strong goals, I think revisiting that ‘why’ again, it’s just super important. I know that personally, my wife and I found that our ‘why’ has shifted over time. With our first investment, because that was a live in flip for us, we were just looking for ways to defray our housing costs. Then over time that became, could we create additional income that would help provide for fun life experiences for the family? Then over time that came into, this has a role in our retirement planning strategy. Tim Ulbrich, could you help us out, getting started with, what’s this ‘why’ look like? How do you revisit the ‘why’ over time? Is it okay for the ‘why’ to shift over time? Walk us through that a little bit, if you could. 

[00:03:15] TU: David, your reference to the evolution of you and your family’s ‘why’ as it relates to real estate investing, it’s a great example of, why take the time to invest? Now by defining your ‘why’, but revisiting it, right. It’s not it’s not a one-and-done. This is not the NCAA. Lives evolve, our goals change. I would argue that for many that are dabbling into real estate investing, your mindset is shifting in the direction of realizing more and more as possible. Probably more than you have even originally imagined. So we’re thinking about pharmacists that are at this for 30 or 40 years. They’re looking at evolving their investing career, where they start, and the ideas they have, the goals they have, what they hope to achieve. Naturally, that’s going to take on a life of its own, over time. 

I think, yes, to answer your question. We need to revisit our ‘why’ on a regular basis. I think, for two main reasons. One, things change. As I mentioned, we need to continually ask ourselves, in light of those changes, why am I doing what I’m doing? Two, I have found that revisiting the ‘why’ is great motivation, especially if I’m feeling stuck or in a rut. So one thing, I like to say is if I’m ever feeling stuck, it’s because my ‘why’ either isn’t clear enough or it’s not strong enough. 

So, for folks that are listening, they have not yet done the initial deep dive on the ‘why’, now is the time as we get started here in 2022. I think, this is an area that – shout out to the team at YFP planning, does a really strong job of when we have clients come on board for comprehensive planning. So before we get into the X’s and O’s of student loans or investing or into the weeds on any part of the financial plan, we need to know what’s the vision? What’s the purpose? What’s the goal? Where are we going? This ‘why’ really becomes the roadmap for what we’re going to be doing with the rest of the financial plan, but ultimately why we’re making certain financial decisions along the way. 

In my experience, David doing a deep dive into ‘why’, once you light that fire, it’s hard to not be thinking about it. This becomes an ongoing conversation and dialogue in your head. Yes, define it once, but also revisit this on a regular basis. 

[00:05:23] NH: I love that. I feel like, I’m having flashbacks to when I started my financial planning journey with Tim B. It just felt like, our ‘why’ at the beginning was to get out of debt, figure out what to do with all this debt, that was the whole flashing signal. And it started to evolve over time to “Okay, now we’ve got a handle on the debt. How do we start to manage it? Then how do we start to get away from it? Then how do we start to evolve?” So I agree that re-evaluating that regularly and having somebody on board, it’s been super helpful. 

Especially, as we started the dial into real estate investing. I remember vividly Kristen and I sitting down with Tim Baker, and having a conversation about, “What is this going to look like? Can we actually do it?” Having somebody that is a planner that understands that and actually has that conversation, rather than just ignoring it and going off and saying, “Well, don’t worry about real estate, you should just sink all this money into this investment fund and I’ll handle it. Don’t worry about the rest.” It was just really nice to have that conversation candidly, and without that, I don’t think we would have jumped in when we did so. 

I think, maybe Tim, talk to us a little about that, too, as we move on. What are some of the things that – why that becomes so important to have that conversation, especially with the broader scope?

[00:06:33] TB: I think, we’re talking about an [inaudible 00:06:34] check, right? When I was in the army, we would navigate and you look at a map, and then you’d walk and you’d have to walk for a little while. Then you look at a map again, just to make sure you’re still on course, that’s what we’re talking about here. I think, the operative term in all of this is, I think planning, is real estate part of your life plan? For some people Nate, obviously, it was for you when had that conversation. Some people, they’re like hey, “I’m interested in this.” But then when they actually get down to the nitty-gritty of it, they’re like, “Hmm, not for me.” Maybe they just do a traditional REIT in their investment portfolio. That is okay, that’s completely okay. 

And real estate is not going to be for everybody. I think, it’s really assessing where you’re at with your life plan. It’s really, the operative term here is planning. I’ll make fun of myself, because I don’t say the ‘ing’ in words. Planning. It’s really about that, and this is not a static thing. The plan is nice, but the act of planning is what we’re actually looking for, Mike Tyson makes the famous quote of like, once you get into a fight, and you get punched in the face, the plan goes out the window, right. That’s life, life happens, life evolves. I think, what’s really important is to know that we are people in motion, and things change over time. And for some people, real estate might evolve to be more a part of their financial plan in the future, it might be less, it might be where it’s, you keep on keeping on. 

David, you don’t have that evolution of sorts and that’s okay, as long as it meets what you’re trying to do, right. In the life plan, it’s all about the financial plan supporting the life plan. For a lot of people that are listening to that, that’s a big part of it, but it’s okay if it’s not. But I think it’s just slowing down and asking ourselves or at least having someone ask. It could be a spouse, it could be a financial planner, it could be a coach, a life coach, whatever it is. It’s just to take stock of that, because we get so damn busy with our lives. 

Sometimes we just, we go on autopilot. We don’t have that period of reflection, where you’re asking yourself, “Self is still what I want to do?” In this case, real estate, where do I want to take this in the future? I think, it’s okay to embrace that fluidity of sorts. Things that happen, we do this with planning is that, we look back over the last two or three years, and we’re like, “Wow, a lot has changed. There’s a lot yet to plan for.” That’s just the reality of things. I think what’s really cool is to see that evolution and actually really to see people grow and change over time. I think, that’s what it’s all about. 

[00:09:16] DB: I like that and coming up with that really tangible plan, I think, it makes sense based on that phase life based, on the needs based on the goals, so there’s not a one size fits all. In coming up with that plan, I know one of the things that as we talk with guests that have gotten into multiple houses, whether it’s long term, short term, whatever – as they’re a little further down the road and they reflect back, they say it’s the first one that was the most scary. 

I’ll bet that there’s a lot of people thinking, like, “If I got to take this goal of wanting to do something with real estate and turn that into tangible plan, that’s scary, because there’s a big down payment associated.” Or “I got a – what if a roof goes out or what if something happens?” I think, there’s a really tangible step of saving up for that down payment of those things. But there’s also this mindset of, “I got to get past this scary.” So, Tim Ulbrich, how do you attack both issues, both those tangible, like “I need to save” or “I needed set this goal and achieve it.” Gosh, I have these mindset roadblocks also. 

[00:10:16] TU: Yeah. David, I think you nailed it right for the first one. This is real. I mean, very, very real. Jess and I felt this and especially as you’ve got other competing priorities that are yearning for your dollars, right? Being able to both save up and then pull the trigger in the midst of maybe some of the fears. It’s real. It’s both real in dollars and real in some of the mindset, I think, to overcome that. I think, once you get past that first deal, hopefully it goes well, you’ve got momentum excitement, you want to snowball that into the next one. 

Even if it doesn’t go as planned exactly, most likely, you’re looking in the rearview mirror and you’re like, “Okay, that wasn’t bad. What I thought was worst case scenario, even if that comes to be wasn’t as bad as I thought.” So you’re able to continue to move from there on. I think, there’s the X’s and O’s, you mentioned David, you’ve got to have enough money saved to make this decision. So this gets back to the playbook of the financial plan. What are the priorities that are competing for my money each and every month? What money do I have to save for those? Let’s put them all on the table and where does real estate fall in the priority of other things? This is a great example, where real estate is one part of the financial plans, right? 

We’re looking at several other parts and where does this fit in priority, putting those in a spreadsheet, prioritizing those, creating the savings buckets, creating that funds, specifically for the real estate priority and beginning to save and get the momentum of those savings over time.

I think, that’s one thing is we’ve got to actually make sure we’re prioritizing appropriately. Looking at other things in the plan, and then starting to fund that and see that hopefully grow over time. 

Second as we think about the mindset, one that I have found helpful, especially when you’re making a big decision outside your comfort zone, is to truly put down the risks, the worst case scenario, write them down on paper, right? Get them out of your head, where they seem big, scary and insurmountable. Put them down on paper and let them be what they are and try to objectively react to those. I think that, especially if you have some community or coach or somebody that’s walking alongside, and that’s done this before, that really helps ease I think what can feel like bigger risks that then probably truly are there, as it relates to making this decision. 

Then I think, we’ve got to have some things in terms of having a backup plan, right? We’ve got to have some safety valves in place and then making sure we’ve got hopefully an accountability partner, Coach, community of other folks that are coming around us and making this decision. It’s not just the X’s and O’s, we’ve seen many folks, I’ve been in this position, maybe you do the hard work, you come up with the savings, but if you aren’t evaluating those other things as well, and looking at your own confidence and making those decisions, ultimately, you might not pull that trigger or you pull the trigger, but then you’ve got regret and perhaps some anxieties around making that decision. 

[00:12:56] NH: I love that tip about writing down the scary stuff. I think, Tim Ferriss talks about that in The 4-Hour Workweek about, just taking out a sheet of paper and writing down the things that absolutely terrify you about the decision that you’re putting off. Once you see it, and then can actually address it, they’re not life ending, right? Once you actually write them down, they’re going to be problems, but you can actually tackle those and everything within the financial journey, whether that’s paying down debt, buying your first property, whatever the case may be. Again, I love that tip. I encourage people to actually do that, take out the physical piece of paper and do it, it can really be a game changer. 

I think, the other thing that I run into a lot when I talk to new investors or those that are thinking about investing is this, this total fear of debt, is this aversion to the idea of it. And to be fair, we’re conditioned that way, we come out of school with huge, huge piles of debt. The idea is get away from debt, get away from debt. Tim Baker maybe you can talk to us a little about, maybe your experiences you’ve seen with that, with some of your planning clients. What do you say to someone like that, that says “All debt is bad, I need to get away from debt. Real estate investing sounds more debt, I don’t I don’t want any part of that.”

[00:13:58] TB: I think, this definitely relates more to you, you’re talking more about mindset in X’s and O’s. I think this is more about the X’s and O’s piece. But also the mindset around the X’s and O’s little bit, I think, so much about real estate investing is about mindset, more so than traditional stuff. 

I related as Tim was talking, I used to be a runner back in the day and I run, I’m trying to run again now and trying to get back into running shape. The mindset of going through a run and feeling that stitch in your side and feeling like you’re going to die. In my mind when I’m thinking through that, I’m like, “Man, this is because maybe I didn’t eat clean enough or I didn’t hydrate enough.” But then when I have a great run, it’s different, like it’s a mindset around, how you perceive some of those negative things to happen and then moving forward as that being a learning experience. That’s it, no more, no less. 

I think, the same is true when you’re looking at real estate investing. You could have everything blow up. Instead of saying, “Woe is me, this is terrible,” you file that and you know that for future deals, “I need to do this, this or that.” That’s how you become systematic with what you’re what you’re doing. 

Regarding the debt piece, it’s tough, because there are some that are around that Dave Ramsey ELP, that all debt is pretty much bad. There’s nothing that I can really say to change that in some cases. What I look at that as in terms of framing debt is that you can view debt as good and bad. Most people would agree that things like payday loans and credit card debt, those are, that’s bad debt. It’s typically the purchases of wants not needs or, hey, I didn’t do a good enough job saving for my emergency fund, so that credit card comes out. 

I think, as you go along the spectrum and you look at things like car notes, those are typically okay, because it gets you to work, but over time, you want to release from that and not pay interest on a depreciating asset. Things like a student loans, again still a good ROI. Even with the PharmD, I know there’s a lot of chatter about that, but the idea is that you pay this money for greater income over the course of your career. Then you get to the end which is like in mortgages and real estate investing.

The reason that these can be considered good debt is that, there’s an asset that is collateralized – the debt. So, when all is said and done, you still have that underlying value that’s there. But it typically is something that appreciates over time, that’s something like, a car doesn’t. It can also be income producing, meaning you’re actually receiving a dividend or income from that as you go, which is very different from, say a 401k. All that goes behind that wall, and you’re good to go. 

The idea here is really understanding what you’re getting into and knowing that, this day, it is on your balance sheet, but it’s typically offset by the value of that, but then it’s also paying you a check as you go if you’re doing it correctly. There’s some people that are just like Oh, I need no debt on my balance sheet, because how I perceive financial freedom is a zero on the liability side.” That’s okay, but it’s very hard to do that when you are in real estate, because typically you are more highly leveraged than those that are not. It’s just understanding what you’re getting into and understanding that, you have to have an appetite for risk, an appetite for debt to really get into real estate investing in most cases. 

If you’re not, then I would say probably the portion of your investments that should be in real estate is really more on the traditional side. Like I mentioned, a real estate investment trusts that you would sell buy and sell just a regular mutual fund. Again, that’s okay, too. It’s not going to be for everybody. 

[00:17:46] NH: I think, too. If I could just jump in with one comment here, I think when we have this conversation – would it be a podcast if we didn’t talk about student loans for a minute, right? When we have this conversation on debt and investing, probably the most common question that we get, whether it’s real estate investing or others in terms of balance, we tend to get caught up in the polarities of the discussion, right? Polarities being leveraged to the hills, and like “All debt is bad debt. Wait till you have zero balance and then you can live the rest of your life.”

I think what the planning team does such a great job, and what Tim’s really highlighting here, and highlighting well is like, this is so much customized to the individual. Really, let’s allow a space for you to objectively assess that for your own situation, right? So what are the goals that you have? What’s the opportunity costs of making decision A, B, or C? Really looking at the numbers, how they play out? Then let’s layer on some emotions to that as well. 

Let’s withhold the judgment from how we may feel about their – what you may feel about that, and really evaluate what does that mean for that person’s situation? How do they feel about that, knowing that we’ve looked at the various options, and how we may ultimately come to that decision based on what is makes the most sense for their own? I think, what I’m trying to encourage folks here is to prevent the path of blindly following one of the polarities without really thinking about how does this fit with your own situation? 

[00:19:13] DB: No, I think that’s really good in understanding the mindset there and thinking through all these different options. One of the things that just keeps coming to my mind in this whole discussion about exposure to risk and all these things is that Jim Rohn, quote, “You’re the average of the five people you spend the most time with.” So one of the things that I know I’ve found with real estate investing is that community is really strong in that and getting around other people that think differently and challenge me to think differently, myself is really helpful. 

I know, whether that’s within Facebook groups, whether that’s actual conversations with real people in real life. I think, there’s really something about the community with sharing your plan with someone else, bouncing that off of someone and getting ideas and feedback. Tim and Tim, can you both share a little bit about what you’ve observed in pharmacists that set a plan, but then also bring in some coaching or accountability or camaraderie as they work to achieve those goals. 

[00:20:05] TU: Yeah. I’ll address the community aspect first. Then Tim Baker, if you want to jump in and provide more perspective on the one-on-one side as well. But you know David, you nailed though with that Jim Rohn, quote. I’ve actually been listening to Jim Rohn, when I’ve been running lately, and I normally feel I can run through a brick wall after a run, but a brick through with Jim involved, it’s a good run. Yeah. I mean, from my personal experience and seeing the value in the community, goal setting is one thing, but setting goals which I think here we are at the time of the year of doing that, but then layering on top of that, a plan for how you’re going to learn and develop yourself in that area. 

I’m talking about books, blogs, podcasts, resources, mapping out your learning plan for whatever topic, whatever goal you’re trying to achieve. That’s taking to the next level. Then defining, what’s the one next step you can take? I think, sometimes in goals, “Hey, I want to buy an investment property. I want to save more for retirement. I want to pay down this debt. I want to buy a home.” Whatever, it can feel big, it can feel overwhelming, “I don’t know where to go.” What’s the one next thing that you can do? What’s the one next action you can take as a step forward? That’s another way to take it to the next level. 

Then as you mentioned, accountability, and I think you put those things together goal setting, with a learning plan, with an identified next step and with some accountability, and I think that’s where you start to see some of the results happen. The five people that you spend the most time with, or even to those that you look out to say, “Hey, they’re having some success in areas that I would to have as well.” Those are the things you’ll often see that are involved in their own development. I’ll be the first to say, I didn’t always appreciate the value of a coach in my life. Maybe some of that was young arrogance and I think is I’ve had an opportunity to experience more and more of that obviously, it builds upon itself. 

I would encourage folks to find the areas that are most important in your life. That could be relationships that could be faith, finances, health. Here we’re talking about real estate. Ask yourself, what steps am I taking to set goals in these areas, as well as steps to grow and learn in those areas, and then who ultimately is keeping you accountable? Obviously, here’s we talked about the real estate piece in the financial plan. We wholeheartedly of course, believe in the value of a financial coach, but that’s just one area of your life. So are we making these investments in the areas that we have defined to be most important for us? 

[00:22:26] TB: What I’ll say about community is that, I think it’s a great thing. I think it can be also, it can be a double edged sword, right. When I launched Script Financial, which is now YFP Planning, I had a community of peers that I would seek counsel and they would motivate me and keep me accountable and study groups and things that. But I think what also can – the word of caution that I would say is, don’t compare yourself to the community, because they’re on a different path. You might be going in the same direction, but you’re on different tracks. I see that as a planner that sometimes hear comments that, “Hey my parents think I should do this” or “Other pharmacists at work are doing this, and I just feel like I’m behind or this or that.” And it weighs on their own financial plan. I’m like, “Look, your parents don’t understand, what you’re going through in terms of $200,000 in student loans, like the paradigms are different. What you’re doing in your investments or your debt payoff or your real estate journey is going to be different, because you have different circumstances.” 

So community can be a great thing, but you want to take the pieces that are great, and leave the pieces that are not. I’ve said this time and time, again, is that the enemy of being content is comparison, right? You want to have a healthy drive and sometimes you do that by comparing yourself to others but at the same time, you don’t want to be derailed because of that. In terms of one on one coaching, shoot, I’m a planner – of course, I’m going to say that, that’s a great thing. I know, in my life, like my wife, Shay, she’s going to run the marathon in Paris next year, so she hired a marathon coach that’s going to take her there. We value that. 

Tim and I invest a good amount of dollars into a business coach, because we want to make sure that there’s someone that is challenging us, that is keeping us accountable, that is asking us good questions, with regard to where we’re steering YFP and if we’re taking the time to slow down and actually do the things that we should do. So in terms of one-on-one planning, yeah, I mean, I think oftentimes, I see people that are interested in real estate in particular, but they don’t have the X’s and O’s or the or the question of why answered before they actually get into it. They just see it as like, “This is something I think I could do.” 

I think actually having the building blocks there are going to be important. I think what makes us very different at YFP Planning is that we do give a damn about real estate investing. We do see it as a viable way to build wealth inside of the financial plan and most advisors don’t do that. I think it’s partly due to the fact of how advisors charge. Most of them want you to put as many dollars into a traditional investment account, because it’s how they get paid, but we view it as a viable way to build wealth that has both near term and long term benefits. I think, having someone that, again, can sit down with you and assess where you’re at financially, help you assess where you want to go financially with the real estate investments in mind. 

Then continue to hold that mirror up and say, “Hey, remember that time in 2022, when we talked about this is a big, important goal? What are we doing with it? Show me the money, show me the account that says, “Hey, this is my down payment or this is what I’m doing to really invest in this to get me to the next step.” I think, that’s the value that a coach will bring is, to keep you honest and keep you on track to do the things that you outlined yourself that you want to do. 

[00:26:07] NH: Yeah. I think that’s so important, especially when you think about all the information that’s out there. I mean, with the internet access that we have today, the books, the podcasts. I mean, it is endless. The waves of information you can find, right? The how to actually do all of this is out there, but the trick is, what do you do to go forward? What is the next step? How do you get off the bench? I guess, I’ll throw it back to you guys for a second Tim and Tim, what is one thing that a pharmacist can do, if they decide that real estate is that thing for next year, right? They’ve got the information. We know how to find that. You can start with this podcast, right? But once they have that information, what is the thing that gets them off the bench? What’s one thing they can do to get in the game? 

[00:26:46] TU: Yeah. I think Nate, for me individually, it’s been getting that goal out of my head. Number one, on a paper. Number two is sharing it with someone else for accountability. That could be a coach that could be a spouse, significant other. It could be anyone, but that number one keeps me accountable. Number two, I’m affirming it talking out loud, beating it up. So I would encourage folks, put down that goal on paper, talk it out loud and identify, as I mentioned before, what’s the one next thing that you’re going to do. Break it down, micro goals that over time are going to compound into something bigger, but the one next thing you can do once you write that goal down. 

[00:27:23] TB: I think, for mine is even a little bit more of a baby step into it is, I am a big, big proponent of allocating dollars for a specific purpose. Invest in base purpose and savings for a purpose. I mean, probably the big thing, if I was going to do anything that had to be that had a funding goal, is to log into my Ally account, and create a savings account, high yield savings account, that is a real estate investment. It could sit zero for the first quarter of the year, the second quarter, but I know that this is important to me, in my heart of hearts, I’m going to basically amend my savings plan that’s going to start direct in $200, $300, $500 a month to get me to my goal, to really get to that first deal. 

I think, it’s creating that, we always talk about buckets, creating that bucket that will be funded and having a backwards plan to say “Okay, if I’m doing a BRRRR from doing a single family home, I need this amount down for an investment property.” And say, “I know that I’m, by the end of 2023 perhaps, if I’m putting in X amount of dollars, I’m going to be able to fund that goal.” 

So that sounds – and Nate to bring up an example that we’ve talked about with you and Kristen is, the date fun, right? So before there was a lot of emotions of feeling guilty about going out and hiring a babysitter, but the act of you guys actually planning for that and shaving funds off to basically go and do that. I could I could sense that in Kristen was just a relief, that the money was there. It’s the same thing for this, is that we’re dealing with a finite amount of time and dollars to fund all these things. 

But if this is something that is truly important to you, whether it’s real estate, whether it’s date night with your husband or wife, then allow yourself that gift, really to plan for it. It sounds so simple, but I think a lot of people just doing that simple thing of an accounted for either in their savings plan or their investment plan is so powerful. 

You wake up one day, you’re like, “Wow, there’s a lot more money there” – that bias for action, “There’s a lot more money there than I would have thought possible.” Just by being super intentional with your savings, with your investments. That that’s what I would do. You just say, “Okay, let’s create a bucket that we’re going to make it rain here in the near future.” And start funding that goal to get to that first deal by X amount of months, year, whatever that is.

[00:30:00] NH: Yeah. Thanks again for that tip. That help Kristen more than anybody, just feel like really, really good about the dates. And served to like, “Alright, this is prepaid so we can actually go for ourselves.” That’s a huge difference and it’s incredible how like, it was the same amount of money. It’s like we made extra money for that. It’s how you allocate it, it’s how you intentionalized it that it really made the difference. It was cool. 

[00:30:20] DB: No, that’s awesome. I really liked the example of saving up for that first deal as well, because I think, that’s something that a lot of people – when we do these webinars, we did a webinar recently and threw a question in there. And I know that that’s a challenge that people have. But even beyond that, going from none to one in terms of real estate investments. There’s just hurdles there. We were specifically asked on that webinar, we were trying to figure out what can we do to help the YFP community? We were specifically asked, “We need help, we need something to help people go from none to one.” Tim Ulbrich, can you share a little bit about your thoughts on why that might be? Why people are really hung up on that none to one? 

[00:31:01] TU: Yeah. I actually talked with someone last week that was on that webinar, which I know you guys built to intentionally be very introductory. They were like, that was awesome. But it was really overwhelming. It was really overwhelming. There was a lot of information. I think, it’s just a good reminder of where we’re at on the journey, the repetition that’s needed, and the education and the learning. Yeah. I think it feels scary, right? I mean, I think about the first deal, David, that you helped Jess and I navigate and even though that was a very small deal monetarily, it feels scary. 

We’re comfortable, myself included, with learning. Learning is comfortable, right? We have a bunch of PharmDs that are listening to this. Learning is comfortable. Action, pulling the trigger, maybe not so comfortable, that can evoke some feelings of fear. As I mentioned earlier, with the activity that Nate rightly called out and being a Tim Ferriss activity of, we write it down because it helps us get out of our head and hopefully not be paralyzed by it. I think this is natural. It’s true with real estate. It’s true with starting a business. It’s true with writing a book, any project, any idea that’s out of our comfort zone, right? We’re going to have that feeling when we’re trying to take that first step. 

That’s why I recommend so often the book that Jon Acuff wrote, called Start. That was really a big pivotal moment for me in the early journey of YFP of just getting started. He does a great job of outlining that book, that that first step of being such an important first step, because we get paralyzed by what are all the things that might go wrong or what might this or might this not look in the future, which is all just the hypothesis, until you actually take that first step. I think, it comes full circle to defining those goals, and then having folks that are around you that can keep you accountable in the process that can coach you. I think, this is where David, when you and I talked early on and I know where I have the opportunity regularly to pick your guys’ brain as it relates to real estate. 

When you talk with someone who shares similar goals and who has gone through the process, they went from zero to one, or one to two, or two to four. They went through that experience, they felt that and I think they can tell you both sides of the story, right? What has gone really well? 

The other side, also important, what has not gone so well? What are the things that we often don’t hear about? They can help ease some of that anxiety throughout the process, it just another great example, where community can add value. 

[00:33:22] TB: I think, it’s one of those things just to piggyback is, I’ve been on both sides of this in terms of decision making. Are you a person that crosses all T’s and dots all I’s, which a lot of pharmacists are when they make decisions, and they’re very deliberate. Or the opposite spectrum is, you cannonball in. I think for a lot of people who get in real estate, it’s going to be a cannonball approach. I think, the idea is to have some swimmies there, which might be, Nate and David, that you guys are putting out more products and services and things like that. 

To me, we have a bias for inaction, meaning, if all things are equal we’re going to keep doing what we’re doing, which is pretty much learning and staying on the sidelines, unfortunately. I think what I’ve realized, especially being an entrepreneur is, sometimes it’s best just to cannonball in and figure it out and find your stroke. That can be super scary to Tim’s, using Tim’s word, it can be super scary to do that. But at the end of the day you go back to, “What’s the worst possible thing could happen? What’s the worst possible thing that could happen with this?”

At the end of the day, when you actually break that down and strip it down, it can be minor. I don’t want to make light of real estate. But I think a lot of us we blow it out of proportion in our minds and I think sometimes just stepping off the board there and cannonball, and it’s going to be the best approach. 

[00:34:43] NH: Yeah. I love that. We’ve been talking a little bit and really alluding to the fact of coaching and the importance of that. So the reason is David and I wanted to set up this pilot that we’re starting. We’re here to announce it. We are starting a group coaching class. We’re going to pilot this out here right at the beginning of the year. It’s really all about going from none to one. This is a course coaching plan that is designed to take somebody who’s serious about real estate investing, here in 2022. Ready to purchase a home, but wants those swimmies like Tim Baker mentioned. We’re going to rename the course here, swimmies. But no, really the goal being that we can help take you guys from none to one. 

We’re piloting this out, you can check out details on the your Financial Pharmacist Real Estate Investing Facebook page or if you prefer, you can send an email to [email protected] and put ‘None to One’ in the subject line, or put ‘swimmies’ if you’ve heard this podcast, but put ‘None to One’ in the subject line. We’ll give you information about how to apply for that. We’re going to take a very small cohort at the beginning, since this is just a pilot program, but we really want to open this up, we want you guys to be able to take that journey with us and learn from somebody that least has done this once or twice. 

Again, head on over to Your Financial Pharmacist Real Estate Investing Facebook page, or send us an email at [email protected] with None to One in the subject line. We’ll be able to get some more details on that. Talking to the application process and really help you get hit the ground running here in 2022. 

[00:36:19] DB: Yeah. I think, one key off of there is the hitting the ground running. I think that if, on a one to 10 scale of one being “Well, maybe sometime in the next 10 years I might think about buying another house maybe.” If a 10 is like, “I’m already pre-approved. I’ve got a realtor, I want to go, but I’m scared out of my mind.” I think, we’re looking for more like eight, nine, 10 kind of thing, because there are definitely pharmacists, to Tim Baker’s point, like Tim Baker’s hung out with apparently way too many pharmacists, he knows how –  we don’t just cross T’s and dot I’s, but we get out the calligraphy pen, and we’re hardcore. For folks that are in that learning stage, I just want to make sure that this is the right fit. Yeah. There’s got to be that balance between learning and cannonball. So yeah, if you’re looking for swimmies, this is probably a really good fit. 

[00:37:12] TB: It’s important to understand what we’re trying to accomplish with this, it’s not taking somebody from no knowledge to their first house, right? It’s, you’ve done the background, you’ve done the research, you are you are ready to buy in 2022. You just want someone to come along for the ride like we’ve been talking about, and help you get over that hump of fear. That’s really what this is designed to do, so we’re really excited about launching this. We’re hoping that it’s going to be something we can offer even more in the future if it goes well. If you’re interested or know someone that is interested, I really encourage you to reach out to us and let us know, because we’d love to see that application and see who’s going to be a good fit for this course. 

[00:37:49] NH: Well, guys. I really want to circle back, Tim and Tim. I appreciate you being on the show, as always. I’m really excited about what 2022 is going to hold for all of us. Again, just thank you guys for being a part of this. It’s been really fun to take this podcast. We started it back in April of last year. It’s really neat to see where it’s grown. Thank you for letting us do this. 

[00:38:07] TB: Yeah. Thanks for doing Nate. Great content, you and David are doing a great job. Keep it up looking forward to what 2022 has in store for the podcast. 

[00:38:16] TU: I echo the same. It’s hard to believe that you guys are approaching episode 40 already of the show. You had the vision, you executed on it. The content has been spectacular. I’m so grateful for you guys, the contributions to the community, the number of pharmacists that I’ve heard from that have began to take that next step or grow their investments in real estate, because of the content in what you guys are putting out. We really appreciate what you guys are doing. 

[00:38:42] DB: Now, I really appreciate the opportunity and just helping folks grow in their investing, whether that’s traditional investments or whether it’s jumping in the real estate space. I just love the diversity of options that’s coming out of YFP and I think that’s a really strong opportunity here. 

[00:38:59] NH: Thanks for joining us, everybody. Good luck in 2022. Happy New Year. 

[OUTRO]

[00:39:03] ANNOUNCER: Thanks for listening to the YFP Real Estate Investing podcast. If you liked what you heard on today’s show, please leave us a review and subscribe to the show so you never miss an episode. If you have a question know someone that would make a good guess or want to connect with Nate or David, head on over to yfprealestate.com and join the growing YFP Real Estate Investing Facebook group. 

As we conclude this week’s episode of the YFP Real Estate investing podcast and important reminder that the content in this podcast is provided to you for informational purposes only and is not intended to provide and should not be relied on for investment or any other advice. Information in the podcast and corresponding materials should not be construed as a solicitation or offer to buy or sell any investment or related financial products. We urge listeners to consult with a financial advisor with respect to any investment. 

Furthermore, the information contained in our archived newsletters, blog posts and podcasts is not updated and may not be accurate at the time you listen to it, on this podcast. Opinions and analyses expressed herein are solely those of your financial pharmacists unless otherwise noted and constitute judgments as of the dates published. Such information may contain forward-looking statements which are not intended to be guarantees of future events. Actual results could differ materially from those anticipated in the forward-looking statements. For more information, please visit yourfinancialpharmacist.com/disclaimer. 

Thank you for your support of the YFP Real Estate Investing podcast. Have a great rest of your week.

[END]

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