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:
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Contact Jessilyn and Brian Persson | Discover Life By Design:
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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 bec
