Episode 178: Scaling your portfolio from SFH and investing Passively.
In today’s show, Pancham interviews Whitney Elkins-Hutten – founder of ASH Wealth and the Investor Accelerator Program.
After buying the house with her ex-partner, she began to rehabilitate and rent the house for a while before finally selling the property and making a profit from it. Unaware that she was investing at first, she is already getting the hang of it and is fully enjoying her experience as she is already a partner in $700 million worth of real estate!
In this episode, we’ll dive deeper into various topics as Whitney shares her transition from investing in single-family homes to big passive investments, her investing approach that helps scale up her portfolio, and how her personal goals help build her wealth creation strategies.
Listen and enjoy the show!
Tune in to this show and enjoy!
- 0:37 – Pancham introduces Whitney to the show
- 2:37 – How she unintentionally got started in real estate investing
- 10:03 – Aligning your investing strategy to your financial goals
- 15:27 – On building relationships to be able to scale your portfolio
- 21:14 – Her ultimate checklist that helps in vetting a potential investment
- 24:13 – Lessons she learned and the things she would have done differently
- 29:01 – Taking the Leap Round
- 29:01 – Her first unexpected investment outside of Wall Street
- 30:03 – Overcoming her fear of having failed investments
- 31:58 – One investment that didn’t go as expected
- 34:58 – On investors grasping the idea of controlling their own destiny
- 35:49 – Where you can connect with Whitney
3 Key Points:
- Understanding what you want to achieve, and your personal financial goals can help with implementing your own investing strategy.
- Investing in a team that best fits your investing strategy is also crucial aside from the investment deal itself.
- Focus and don’t lose sight of your goals. Money is a tool to help you reach your goals and is not the goal itself.
Get in Touch:
- Whitney Elkins-Hutten Website – https://www.passiveinvesting.com/whitney/
- Ash Wealth Website – https://ashwealth.com/
- The Gold Collar Investor Club – https://thegoldcollarinvestor.com/club/
- Pancham Gupta Email – firstname.lastname@example.org
- Home Improvement 1-2-3: Expert Advice from The Home Depot by The Home Depot – https://www.amazon.com/Home-Improvement-1-2-3-Expert-Advice/dp/0696213273
- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki – https://www.amazon.com/Rich-Dad-Poor-Teach-Middle/dp/1612680194
Welcome to the gold color investor podcast with your host Pancham Gupta. This podcast is dedicated to helping the high paid professionals to break out of the Wall Street investments and create multiple income streams. Here’s your host Pancham Gupta.
Hi, this is Russell gray co-host of the real estate guys radio show and you are listening to the gold collar investor podcast.
Pancham Gupta Welcome to the gold collar investor podcast. This is your host Pancham really appreciate you for tuning in today. Today I have Whitney on the show Whitney stumbled into real estate by accident after purchasing her first rental in 2002. And hitting a homerun then nearly losing it all on her second deal she took control and figured out how to invest in real estate the right way she realized this that success must leave clues are show she studied and replicated the very personal finance and wealth creation strategies the wealthy use to create financial freedom today Whitney is a partner in $700 million worth of real estate including over 5000 residential units and 1400 plus self storage units in seven states and has experienced flipping residential real estate worth $3 million. Whitney is also a founder of ashwealth.com and the investor accelerator program, which helps investors develop a clear workable plan that gives them the results they dream of, solves their business startup or scaling issues and drives massive progress towards their real estate and financial goals. Hey Whitney, welcome to the show.
Whitney Elkins Thank you thank you so much for having me here.
Pancham Gupta Thank you for you know, I know you’ve been trying to connect and have this on recorded but you know here we are finally and you’re in Boulder Colorado and are buried under snow
Whitney Elkins Yeah, it’s a it’s been snowing at least a few inches every week since the beginning of the year at which I you know you hear Colorado and you think snow everywhere. I live in Boulder we could joke that we have a bubble over Boulder and so really we have the mildest winters mildest temperature but not this year. It’s a it’s a you know, nature’s dealing as a pretty heavy hand the shares but I went skiing this morning. I can’t.
Pancham Gupta That’s awesome. That’s awesome. Well, are you ready to fire up my listener break out of Wall Street investments?
Whitney Elkins Yeah, heck yeah, let’s do this.
Pancham Gupta Let’s do this. So so we before we get started, tell our listeners what’s your background and more importantly, the person behind that background.
Whitney Elkins I think we know each other through real estate but actually, that’s I didn’t start off like going to school for real estate or business or economics or finance or anything like that. I started off actually in med school and then eventually went to public health school. Worked for the CDC. And this is you know, I’ll kind of I will tell you like going back to like 7 to 9 years of age but like when I was working with the CDC, that’s whenever I was working on a bioterrorism grant. This is right after 911, Smallpox is a huge threat to the United States. It was anthrax. And I was in the heyday I love this this is what I went to school for this is what I loved doing like that. But I bought a house with a significant other and I’d always been told like you know go to school get a good job get married buy a house right did a couple things out of order bought the house relationship fell apart. And here I had a house that I owned everything on the the mortgage the expenses, I did the rehab on it, it was it needed an extensive rehab. So I stuffed it full of roommates that was young and people that didn’t mind living in a construction zone either in rehab the house myself which we can all challenge whether I should have done that but I bought the Home Depot 123 book. YouTube didn’t exist and over the course of 11 months put the house back together sold it which was probably my number one investing mistake i I’m the person that read Rich Dad Poor Dad and like didn’t get it the first time. So I sold the house but I made a 52 grand profit. And then I realized that actually hadn’t been paying for anything the mortgage or the bills the entire time that I held the house that was like oh my goodness, how many more of these can I do? I actually made more in that one transaction then I had my whole income working 80 hours a week that year. So I was like I’m gonna do as many of these I can possibly do not all went swimmingly. Well like that first one. But eventually my husband we did a few more projects together. And we were doing really well building up buckets of equity. But we couldn’t figure out how people were retiring or retiring early this year. It didn’t have passive income. We didn’t even know that that was the term that we were shooting be striving for. And it took us two years to realize, oh, we need to hold on to these houses and rent them out. That’s how people are doing it. And so we started scaling our rental portfolio here in Colorado, and then eventually out of state because it was more affordable. And, you know, fast forward a couple more years later, we had enough income coming in that it made it worthwhile for me to potentially look at reducing the hours that I was working, because we had a little child at home. And I was taking care of a couple of relatives, you know, not full time, but you know, from a distance. And my husband said he wanted the same thing, because that’s the same thing. And I’m like, wait, that was that was not the plan here. So we decided that we needed to transition to get more units, acquire larger properties and get more units, which each transaction so we started going into multifamily. And when was this? This was the end of 2016. So when we started transitioning into multifamily, I had already invested in a syndication in my self directed IRA. And so I’m sitting there, I’m like, how do you figure out this little multifamily thing, I’m gonna look at the syndication over here on my self directed IRA, see if I can pick up any clues. And that’s when I was really kind of hit home. For me, I was like, we will get some active units under our belt, but I really can’t beat those returns, without some sort of elements of scale behind me the wind at my back, you know, why don’t we actually figure out how to supercharge our passive investing. So our farming strategy that, you know, God is what we call like velocity was to utilize our single family portfolio is like a little mini ATM to fund our passive investment.
Pancham Gupta Wow. So how long did you work for CDC, when you put your job? Like was it for a very long time?
Whitney Elkins I was on a government contract. So I was like, probably there a year and a half. Oh, that’s it? Yeah. And I went into community pharmacy after that. So I mean, I stayed in the public health sector, probably another 11 years before I left. And I actually got left I didn’t leave. Everybody, you know, the company I worked for was a for profit company was a retail chain pharmacy, and everybody, all the senior positions above me had been like go to vice presidents and two district managers. Everybody below me got let go. I was the only one only man left standing in my team for six months. And if that’s not that indication, that impending pink slip, I don’t know what it is. But uh, you know, we, I was like, we were doubling down on two strategies, I was trying to find another job, because we realized this would be the simplest way for us to continue to get lending on our single family properties. At the same time, I was really doubling down on acquiring as many single family properties in that time period is that clip because I still had the job. So I eventually transitioned into the tech field after that. So
Pancham Gupta wow, see, if you would have been with CDC, you would have been famous in last two years, that
Whitney Elkins when COVID all hit, I mean, this is why we I studied as an epidemiologist. Especially infectious diseases, like what happens when the cold virus mutates? And I was thrilled. I was like, wildly fascinated, actually. Still am. But at the same time, I’m really glad that I’m not working.
Pancham Gupta Yeah, otherwise, you know, we’ll see you in the TV when they were talking about COVID back in 2020. COVID. Alright, so I think your story is quite fascinating that you started with single family. So do you still do single family? Do you still have those as part of your portfolio? Like how many single family homes just want to share, like, roughly, you manage? Or do you still prefer doing them and still do the like, buy them?
Whitney Elkins Yeah, so we have an partnership, over 6300 residential units. So a lot of that is in limited partnerships, or general partnerships. So multifamily residential, we have, I believe, 18 units on the single family side. Now, we have played, which I had said, we scaled up to 30. We’ve kind of played a little bit of monopoly and taking some of those assets that were like, you know, C class properties, B minus, and we have repackaged them and purchased larger properties. So we probably have we have more in equity on that side now than we did a few years ago. But then a plus properties. Nice. So you’ve also repackaged some of those into short term rentals as well. Got it?
Pancham Gupta Yeah. So you’d like doing this for greenhouses one red hotel kinda strategy, right? Yeah. So So let me ask you this, right like you you your transition from doing these single families and doing these big passive investments. And there might be a point in time where you became comfortable with doing passive investing. But before that, I’m sure everyone has their own kind of, you know, hesitation or their red flags that they don’t want to do invest with someone how to kind of think about people and investing with someone, it’s kind of very, very scary, right? And, and before that, like, you know, you need to be very clear that, okay, this is what my strategy is, and this is what I’m going to do. And this is after I do this, I would get this much income, and it will achieve my financial goals like, tell our listeners, how did you come about with that journey of defining your financial goals and creating an investing strategy for yourself? And then, you know, how can if anyone listening to you, how can they do that?
Whitney Elkins Yeah, definitely. So I wish I were that sophisticated. And you know, coming up with a strategy and goals and having everything penciled out and knowing exactly how I was going to execute on my plan. Quite the opposite. When we first started buying rental property. We were doing what our neighbors and our friends were doing. Now, here’s the problem with that is that their goal wasn’t cashflow. Their goal was to have assets that could harvest in 20 3040 years, our goal was cashflow. We never even thought about that. You know, we acquired our first property, you know, here like just a few miles south of Boulder, Colorado, and the cashflow $400 a month, now that I hadn’t said anything inside for maintenance or cutbacks or anything like that, that foreigner dollar, I was managing ourselves. And that foreigner dollars really only came in and totally didn’t break that. You know, again, it wasn’t that sophisticated of a plan. Now, I quickly realized after that, in that purchase that, you know, hey, the math does not pencil out for us to bring in 10k a month, if that’s our goal, in you know, with the capital that we have, like, I was like, Oh my gosh, like we have to get like bigger and better jobs like higher paying jobs for this to work out. You know, I’m in the public sector, my husband’s a public servant. We’re not pulling down $500,000 a year for to execute what our strategy was back then. So that’s when I actually I hired a financial coach to help me kind of figure that out. For a couple of different reasons. One, a lot of our a lot of our capital is tied up in our retirement plans, respective retirement plans, we had money to get a considerable amount of cash flow coming in to investigate that cash flow coming in. We just didn’t know how to get at it. Most people think when they put their money in their retirement accounts, they’re locking it away, and they’re not going to see it for 3040 years, we were really dedicated to building up our cash flow for ourselves. And we wanted to figure out, okay, how can we legally unlock this and start investing it for ourselves and create income today? Now working with him, he had me go through that exercise. And people can do that for themselves. Like, you know, Robert Kiyosaki does a pretty good job of like laying out creating your own personal balance sheet. Right here. I was, I was like, Great, I’ll put together a balance sheet and then also put together your cash flow sheet, those things are two different things, right, your balance sheet tells you what your net worth is. Your Cash Flow tells you like, how are you earning your income? And what is it covering? So we had to go through that both of those strategies, those exercises in order to figure out for ourselves, what exactly do we need to be bringing in every single month? Our assets be bringing in every single month? And what is it that they need to cover? And so that kind of goes back ties back to goals? You know, I think that’s one thing, especially when I’m talking to limited partners on the phone, is, you know, I asked them, What are your investing goals? And a lot of them were like, Oh, I just got some money put aside, I just want to get it invested? Well, let’s think about this a little deeper, like, what do you need the money for? Do you need it now? Do you need it later? Do you need a balance blend of both. I really tried to encourage people to look for assets to cash flow now, especially at the top of the market, because it tells me that it’s actually profitable today. And then we’ve got some wiggle room in the business plan should the market deal with a little bit of a lemon in the next couple years. Also, people’s life circumstances change. We saw that at the beginning of COVID. How many people probably even here on this podcast were saying at the beginning of COVID Hey, I don’t need the cash flow. Now. I got a job. I got a great paying job and then I’ll send COVID hits, distribution and operations people that guy out hard. Those are some high paying jobs. I can guarantee you A lot of those people, especially in my network, were wishing I had investments bringing in a cash flow, whenever their job, you know, they got laid off or fired. So that cash flow just helps you kind of flip the switch at anytime that you want to flip the switch not to be locked up in like a 357 year business plan. And then like really wishing, when life deals you 11 really wishing that you had that cash flow coming in.
Pancham Gupta Got it. So So it’s what it was really for you that you until you had hired that financial coach, right? It was in like, only after that you kind of started realizing really what your goals are, whether you need the money now, how much cash flow you need, how many properties you need to invest in to get to that level. Right, once you did that, like how did you transition then my next question would be from doing all the work making these $400 On the positive cash flow on new property to doing passive investing, like how did you get comfortable with that? And then once you became comfortable, how did you go out and vet the sponsors? And the market and the deals to invest passively?
Whitney Elkins Yeah, it’s a lot to unpack there. So when we were buying that first property, we assumed we were going to do all the work ourselves. Right. That’s how we’ve been trained. Right. Do our own job. We are the executioner right. Yeah. Especially
Pancham Gupta for for engine started to catch up, especially for engineers, like who listening to this podcast. Like for them everything they have to do it themselves like to get comfortable that it’s like, and they get very, very analytical when it comes to analyzing some of these deals. So sorry, go ahead.
Whitney Elkins Yeah, well, so for me, I actually had a business background. And so yeah, I was in operations. And so I’m the integrator, I’m the one doing the day to day work. But it wasn’t beyond me. I managed a team to be able to like delegate hire and delegate. But there was a turning point here, when I was trying to get properties two, three and four under contract, I had to take my daughter with me, my husband was traveling, and I had to take her with me to go look at properties. She’s like, year and a half, two, she’s toggling around. And it hit me one day when I took her in, we’re I don’t know, we’re probably looking at the 10th property of the day, and we walk into the house and she’s like, Mommy, I got it. And she runs to the kitchen, she runs to the bathroom, and I’m just like, panicked going on, hold on, like, don’t don’t knock anything over. And she goes, Okay, mommy, like there’s no silver things in the kitchen and the bathroom smells, can I go in the car and watch my Kindle? And I’m like, and she’s right, she’s actually analyzed properly, like, and under like, two minutes. I was like, You know what? She needs to be a child. I like we don’t need to be going out and looking at properties all day long. I need to figure out a strategy, I need to hire a team to help me. And so that’s when we started transitioning into like, how can we scale our properties using other people finding the deal finder, property management. Now that still kept me in the operations role, I’m still wearing not only the CEO hat, I’m still wearing the vision strategy in the operations. I’m analyzing all the deals, right? Probably much like why, you know, our engineers on the show are doing and calling all the day to day shots. Now, that is a huge stumbling block when people transition from and I call that active investing, right? Even though it’s passive, according to the IRS, and you’re getting some leveraged money, single family homes are amazing, I still do them, but it’s not passive. With your time, when you start flipping that model to get in and investing in somebody else’s deal, you have to flip your investing model, you’re no longer investing in a deal. You’re investing in the team, you’re investing in the business. So here’s an analogy for you, you’re not betting on the horse, you’re betting on the jockey riding the horse. So Right. And that’s where I see a lot of limited partners stumble, when they first transition into passive investing is that they’re trying to seek yield. They’re trying to find a deal that has been underwritten, you know, pro formas is just an educated guess with a lot of stats behind it. They’re trying to find the best deal, the best cash flow, the best IRR. And then they forget about who the team is executing on the deal. Where’s the market? So we get down to it? And why is that? It’s because you know beforehand, when you’re just doing single families, you can skip to the deal part because guess who’s the operator? You are? Right. So now we have to you know, learn how to vet that team that the marketing but the deal and when we’re vetting the team, we want to be with a team that has a track record and investing was their background in business. How many deals have they done? How many deals have they exited? You know, are they meeting and beating the performer on those deals? What did those exits look like? Who is the rest of the team who’s an AVI? Are they a one man show? Are there multiple partners? Who is an operations, who’s doing underwriting acquisitions, all of that we want to, you know, understand who they are. And then you know, we want to get down in kind of the nitty gritty like to understand how they run their business, what is the investment strategy that they’re executing? On? What markets? Are they in? How do they structure their deals? How do they get paid, right? Because we want to make sure that we are actually investing in an operator that is going to execute that strategy that we need in our portfolio. So that goes back to you have to know your goals? Do you need cash flow to capital gains? Do you need a balanced blend of both? What is your restaurant? You know, all right, are you just wanting to do class a suburban stabilized, you know, properties, which are very nice right now, at the top of the market? Are you more able to take on a larger business risk by doing more of a development deal? Are you cember in between with like a light value add strategy? Right? So those are questions that you have answered, and you bring to the table, and then you can find the right operator that matches those goals, in your risk tolerance that you can take the business plan?
Pancham Gupta Wait, no, that’s awesome. So let me ask you this, like, you know, it can be very intimidating, to do all the things that you’re talking about doing, like finding out the operators and their background and talking to these bunch of these people. You know, I get these calls also all the time, right? Where they want to talk about the experience and all that. So before you even do that, right? How did you as for your portfolio, figure out, okay, which markets you want to invest in? Did you do any of that for yourself? Or you were just like, Okay, you’re going to just trust the jockey and not the horse. And then wherever that jockey goes, I go. Oh,
Whitney Elkins very cool. Now, so for before people get overwhelmed. And I know who you know, especially coming, you know, having worked in the tech field processes are like, awesome, right? So I actually have tools at a website. And we can share that it’s passive investing with whitney.com, we can share that in the show, too. But a checklist to help you go through all these different points. And so you’re not missing a step or getting them out order. But for me, personally, I had to put this checklist together for myself. Because that tool, just, you know, you know, 567 years ago, you did this free education on the on the internet, it was hard to find, you know, I’m not saying it wasn’t there. But the space hadn’t been developed. I had to put it all unfortunately put that all together myself. My first couple deals actually in passive deals came from at the recommendation of other people. And you know, I started networking with other investors. Now, all those deals went well. Okay, I’ve taken my lumps. But now I have a very more vetted process that I share with people so they can actually go into this, you know, trying to find an operator with a little bit more competence. But for me when I was first starting off, like I see it, even now is like it was a lot of like, just kind of like closing my eyes and going on. Hopefully I don’t land on a landmine here. Man. Yeah, one of my first deals was a commercial note deal. Now the here’s the track. The operator actually was great at what they originally did, which was multifamily buildings, and then they transitioned into commercial property.
Pancham Gupta Oh, okay. And you see where I’m going
Whitney Elkins with this? Like they had a background in real estate. But is it a translatable skill? You know, there were so many things that they, they, I was like, great, they’ve done real estate before. This is amazing. No, but they had they done commercial real estate before they had. And so we got nabbed not only between the businessman, but also, you know, COVID didn’t help that situation out. Now, here’s the thing is real estate fairly, I don’t want to say forgiving, you know, lose a lot of money in real estate. But you know, in that particular deal, the underlying land and the there was value in the land, there was value in the deal. We didn’t lose too much, but we barely broke even
Pancham Gupta on that deal. Right. All right. So now knowing what you know, today, right, Whitney, like you’ve done many, many years of this and you’ve done single family homes, multifamily investing, passive, active flips, all that right, knowing what you know now, and you have to now go, let’s have the benefit of hindsight. What would you have done differently, given your knowledge today?
Whitney Elkins Yes, so I will a couple I’ll tell you in a couple of different places in our portfolio, I would have moved from single family to live in flipping house hacking much quicker into single family and learn that business much faster. And then to I wouldn’t have scaled to 30 properties. I probably wouldn’t you know, I might have had like 10 or 20 Just something to give me a base a core base of interest. I’m coming in that I can control and transition to multifamily much quicker. Now for me, not the active investor, I like doing active things, you know, on my own timeline in my own terms, but I’m not I, you know, I’ve partnered on larger multifamily buildings, but I’m not the person that goes out and will, you know, I was driven to build the company. I love investing in other people’s operating systems, I love creating that leverage so I can have what I want back, which is my time or choice of how I spend that time. So understanding what it is that you want sooner I see people transition into active investing, and then not really knowing what that fully encompasses, right? Like, what passive investing.com Does what you know, you do it like that is that takes a very special someone in a very special team in order to do it. And so sometimes you have to realize where your strengths are.
Pancham Gupta Right? Well, cool. So you would say transitioning to passive would be would have been much more quicker for you.
Whitney Elkins For me personally, it’s great. And I think that’s where people need to really, like honor who they are and like, what their actual goal in life is, if I coach clients, as well, and one of the things that I see them struggle with is that their loured by the dollar and the return and they lose sight on what they actually want what we listed as a tool, money is a tool, what is it going to get you that’s what you want to go after?
Pancham Gupta That’s exactly right. That is so cool, the way you said it, that it’s really the tool and to help you reach to your end goals, and you need to be focused on those goals. And don’t lose sight of those goals and start getting into the weeds. If you don’t like it, then you’re gonna like make more mistakes and lose capital
Whitney Elkins on your life to Yeah, exactly. Yeah, back.
Pancham Gupta Exactly, exactly. But cool. Whitney, anything else you would like to mention before we move on to the second part of the show, which we call taking the leap round? Yeah, let’s do it. Let’s do it. We’ll be back after this message. Do you ever feel overwhelmed by the thought that you have no time after work, and family time to learn about investing? Do you feel left behind that you are not putting your money to work for you? Do you want to create passive income but you do not know where to start? If so, I have good news for you. I have created an investor club which I call the gold color investor club for accredited investors, I will be putting together investing opportunities exclusively for this group. These are the opportunities where I have done my part of the due diligence for you and will be investing my own money alongside you. If you are interested, please sign up on the gold collar investor.com forward slash club. I repeat the gold collar investor.com forward slash club, I will reach out to schedule a 30 minute phone conversation to discuss your investing goals. Once you sign up, this can be a good opportunity to diversify and take some chips off the hands of Wall Street to produce some cash flow. And in case you are wondering what is an accredited investor credited investor is someone who has earned more than 200,000 as filing single or more than 300,000 Filing Jointly for the last two years. Another way to qualify as an accredited investor is if your total net worth is more than $1 million. Excluding your personal home. It includes your stocks for one case, IRAs, cars, etc. Just not the equity in your personal home. If this is you, I would highly encourage you to sign up. Alright Whitney, let’s move on to the second round of the show, which I call taking a leap round ask these four questions to every guest on my show. My first question for you is when was the first time you invested outside of Wall Street? Was it when you got that property with your fiance? Or you know?
Whitney Elkins Another? Yeah. Yes, actually, I didn’t know at the time that it was going to be an investment. I just thought it was buying a house right? Like I didn’t even think of it as I’m investing in real estate.
Pancham Gupta There was it in when was this?
Whitney Elkins This was 2002. It was in Fort Collins, Colorado and the cool thing about this okay, well back up it was a wild wild west of Lendy like you had to have all you had to do is have a heartbeat and you get good 103 Great. Can you fog a mirror great check. Yeah, we’re gonna give you money. Anyways, I borrowed $7,000 from my grandfather with a promise to pay him back. And I got closed on the primary closed on the second and then I paid him back with a second. So I was actually 103 financed on that property. With no my own money in
Pancham Gupta Oh, wow. Wow. All right. So did you have any fears that you have to overcome when you bought that one?
Whitney Elkins I think a lot of it was, I was afraid of messing something up. Now I had to get over that really quickly because I, I didn’t think I could afford to hire contractors. I literally had friends helping me sand the floor. I mean, I found people who knew what they were doing. And I knew enough to do that. Go find a who try not to do it all yourself. I had a friend of mine that had done had sanded floors, and I I literally paid him with like, $100 with the sushi, just seeing my words. Not the best trade on his part. I mean, it worked well for me. But yeah, I mean, I learned how to do drywall not will never do that. Again. I learned how to do plumbing, not not my face. crowding the floor, terrified when I grabbed the floor. I don’t know if you’ve ever grounded before I have.
Pancham Gupta Yeah, no. I think for me, plumbing and electric is the most hard and something I don’t want to touch.
Whitney Elkins Oh, plumbing, I should never touch plumbing or gotten. I had to hire a plumber did like come in. Yeah, I mean, I guess the real fear there. And it didn’t really so much come in on that deal. It came in on a second deal, which was like, knowing what I didn’t know what I didn’t know. And then all of a sudden, you know, putting myself in a position where I could lose a lot of money. And I had no way to mitigate that downfall. That was really scary. And so now I have, you know, some simple enough, but I have emergency reserves. I have operational reserves for all my properties. Do I like what like it when the boiler goes out? Do I like it when a tenant vacates? No, I don’t. But I’m not scared of those things anymore, because those reserves are there for a reason. Yeah,
Pancham Gupta exactly. Exactly. Cool. So my third question, can you share with us one investment that did not go as expected? Would it be the second one?
Whitney Elkins Well, if we’re talking about single family properties, that one did not go as expected, I violated the immutable law of real estate, which is location, I had bought a mountain home that required 19 steps to get to the front porch. And here I thought I had made an investment. Now I had just bought like a vanity property is what I had done, um, you know, bought a property that was too small, you know, too hard to get to. And so really, when I went to sell that property took me a year to get it under contract. And oddly enough, I’d gotten a contract on day two. And I thought I could do better a year later. So I failed to listen to what the market was telling me a year later, I got the exact same contract and had to take it after losing a lot of money. But anyways, that particular property, my realtor, had the foresight to see that the inspection objection was not going to go well. And so he got everybody to sign an agreement saying that he only had to bring $6,000 to closing to cover the inspection objection. Now, mind you, I was kicking and screaming at this point that he could see what was about to happen. And I don’t think anybody saw how bad it was going to get. But anyways, we ended up having to dig into a retaining wall on that property and to fix it and something that should have been $1,000 Fix ballooned into $25,000 Fix and I kept saying online like the walls fine as long as my neighbor moves her motorhome her friend’s motorhome that was parked there. They move the motorhome they fix it and in the middle of moving it they moved the motorhome to my neighbor’s retaining wall it broke. Oh, my guy is like, listen, the motorhomes the problem. Maybe the motorhome like it had his we made our my neighbor. We’ve somehow finagle the deal where she couldn’t move the motorhome back into place until after closing. She moved it back her actual there was somebody living in that. And she was renting it out. They moved the motorhome back into place, the day after closing and it tumbled into the roof of the house. Yeah, I got a call the day after closing. And there’s a guy yelling with a shotgun, because he was the guy that tumbled into the house and you know, please and everything and I was like, am I liable? And they’re like, Oh, I’m like, okay. So, but I was super glad to be out from underneath that property.
Pancham Gupta Did you end up losing a lot of money on that? Did you make money? Did you break even
Whitney Elkins I broke even on that. Like whenever you take into account everything I had actually rented out part of that property. When I take into everything. It was a complete wash, like over the two years that I held that property. You know,
Pancham Gupta got it but you learned a lot. So I guess it’s Oh yeah. Yeah, learning experience. Cool. So my last question for you Whitney is what is one piece of advice would you give to People who are thinking of investing in Main Street that is outside of Wall Street.
Whitney Elkins Oh, you know, um, I think it’s, you know, whenever you invest outside of Wall Street, you just have to be, this is the beauty of it. And that’s something you have to be prepared for. You are in control of your destiny, that’s amazing. And you’re in control of your destiny, you need to be ready to take that responsibility. And so just really taking the time to educate yourself and, you know, network to get with people that actually, you know, repeat their plan. I mean, success leaves clues. And so you really take the time to educate yourself and follow the right people so you can actually get that your investing plan off the ground.
Pancham Gupta Awesome advice. Thank you Whitney for your time here today. Yeah, my pleasure that he’s actually how can listeners connect you with you? I know you mentioned passive investing with Whitney. Is there anywhere else they can go to or anything else you mentioned? Yeah,
Whitney Elkins You check out passive investing with Whitney calm, I got some freebies there for you. So a checklist if you you know, are looking to get into passive investing your first or next investment. Also have a free ebook there for everybody. And then you can schedule a time with me and we can talk about your real estate investing goals and say what might be the best fit for you.
Pancham Gupta Cool, but thank you for your time here today.
Whitney Elkins You’re welcome. Thank you so much for watching.
Pancham Gupta I hope you learned something from witness experience. Thank you for listening. I appreciate you if you have questions, email them to me at email@example.com. That’s P as in Paul at the goldcolorinvestor.com This is Pancham signing off. Until next time, take care.
Thank you for listening to the gold collar investor podcast. If you love what you’ve heard and you want more of Pancham Gupta, visit us at www.thegoldcollarinvestor.com And follow us on Facebook at The Gold Collar Investor. The information on this podcast are opinions. As always, please consult your own financial team before investing