Written By Paula Pant
Hi there!
This post is an illustrated, pared-down version of my recent “Inflation, Explained” podcast episode.
It was created as a simple, easy-to-digest guide to help you understand the current inflationary environment in the US.
Ready? Let’s dive in!
What is inflation?
Simple definition: […]
Written By Paula Pant
Kelsey Kaszas loves numbers.
But crunching numbers too much can be a crutch, rather than a tool.
Before she enrolled in Your First Rental Property (YFRP), Kelsey found herself stuck in analysis paralysis. She wanted to invest in rental property, but she kept crunching theoretical numbers without taking action.
“When people talk about how difficult it is to get over analysis paralysis, that is me, that is absolutely me, because I’m such a numbers person,” she said. “I love to analyze every single aspect of something new.”
She’s not alone.
Analysis is great. But analysis paralysis, when overthinking or overanalyzing leads to inaction, is one of the most common obstacles new investors face.
When you’re putting significant savings on the line, analysis paralysis is a normal fear-based response.
But it sidelines you. It shortens your time in the market and the compounding gains that follow.
Kelsey recognized this and enrolled in the course to learn how to rigorously analyze properties without succumbing to analysis paralysis.
She learned how to transform analysis into action.
Written By Paula Pant
The investor community is split into two factions: FIRE vs. YOLO.
The YOLO crowd includes the people who read Reddit’s r/WallStreetBets, who chase speculative trades, who place margin trades on Robinhood.
They share stock tips on Discord and bet on whatever appears in their chat feed. Earlier this week they piled investments into Galway […]
Written By Paula Pant
You know those flashy “real estate seminar” types, the ones who wear $10,000 wristwatches and flash cheesy Powerpoint slides of their Lamborghini at you? 🙄
Don’t trust them. (I reaaaalllly hope I’m stating the obvious.)
I call them Lamborgurus, driving their Scamborghinis. They can be found lurking in the spotlight, dispensing a blend of platitudes and high-leverage, high-risk speculative strategies from the stages of big hotel chains.
They can be forgiven for being tacky. But not for destroying peoples’ retirements with their shoddy ‘investment’ advice.
Here’s the thing:
Be careful about choosing who you take advice from. This is true in any arena — health, fitness, personal finance, business, real estate, travel. Some teachers are better than others. The slick, sentient-infomercial Scamborghini types offer the most dramatic cautionary example.
But there’s another reason.
Written By Paula Pant
“Invest during a pandemic? Are you crazy?”
That’s a reasonable question. Why would anyone want to invest in a volatile market and in the midst of economic uncertainty?
But recessions create opportunities. Yes, it’s terrible that millions have lost jobs and suffered huge portfolio losses, but the unfortunate reality is recessions happen. Like it or not, this is our current situation. By looking at the market and asking “what opportunities can I find?,” we contribute to the recovery.
We contribute to the recovery in all types of investments: stocks, real estate, side hustles.
When we buy stocks, we infuse capital into companies that we believe in and/or into the market as a whole.
When we buy, renovate and rent properties, we create jobs for contractors, agents and property managers and we offer our tenants a safe, comfortable and well-maintained home.
When we start a side hustle, we build products or services that thrill our clients and create jobs for our team.
When we invest, we participate in the recovery. Recessions are an unfortunate fact of life, but they carry a silver lining. And for newbie investors in particular, recessions can open the door.
Unfortunately, during times of uncertainty, many people surrender to their fear of investing. They sit in cash until it’s too late.
Written By Paula Pant
The economy is tanking; unemployment claims have topped 30 million; even optimistic analysts say it’ll take years for jobs to fully recover. So what’s happening with the housing market?
To fully understand the residential real estate market, let’s break this down into three sub-questions:
How strong was the housing market before the pandemic struck?
What’s happening now?
Where might it be going?
Here we go!
How strong was the pre-pandemic housing market?
Home values rose steadily after the Great Recession ended. From 2012–2020, home prices rose 5.8% annually, according to the US Housing Market Health Check report from Thomvest Ventures. (All stats in this article come from that report unless otherwise indicated.)
Written By Paula Pant
You’ve probably heard people say that if you’re young, healthy and you contract Covid-19, you’re likely to only experience mild or moderate symptoms. I’m 36, a non-smoker, in shape, fit and healthy, with no chronic conditions. No asthma, no diabetes, no cancer, no high blood pressure, no history of any type of organ disease. I’m the poster child, the ideal candidate, of someone who would only experience a “mild or moderate” case.
My experience of coronavirus was sheer brutal hell. It was the most intense prolonged physical agony I’ve ever felt.
Here’s what coronavirus feels like.
Written By Julia Kelly
In 2015, we ran a story about Julia Kelly, an entrepreneur who makes a six-figure income as a caricature artist.
Where is she now?
We decided to follow up her story. How sustainable is her business? How passive is her income?
Here’s Julia, with a follow-up in her own words. Take it away, Julia!
___________
The following is written by guest contributor Julia Kelly
When we left off, I was running JK Expressions and I was a couple of months away from finishing my degree. I was beyond excited to be done with my degree and focus on the business full time – I was pretty sure I would be living the dream!
I was in for a disappointment. About eight months after graduating and focusing on nothing but the business, it was hitting record revenues but I was dissatisfied, bored, unmotivated and thinking seriously about getting a “real” job.
I was confused. Everything looked great from the outside: I was my own boss, had a super flexible schedule, tons of time for hobbies, and good money.
What was the problem?
It probably would have worked for a lot of people — there’s tons of advantages to running a business like that:
Written By Paula Pant
When I was 18, I got a full scholarship for a one-month study abroad trip to Japan.
At the time, I didn’t have much interest in international travel. But free is free, so I spent a month in Japan during the summer between my freshman and sophomore year of college.
That trip changed everything.
That trip ignited the travel bug.
I came back so enthusiastic about exploring the globe that I’ve based every major decision in my adult life around the goal of traveling more.
Every major life choice, from my initial career in journalism, to my decision to quit my newspaper job to backpack around Southeast Asia, to my pivot to becoming a location independent, self-employed freelancer …
Every choice I’ve made has been based around whether or not this opportunity would allow me to travel. It’s the benchmark against which all my decisions are made. It set me on a meandering path that led to financial independence.
And it all started with that trip to Japan.
Written By Paula Pant
In June, I flew to Atlanta and toured a few of my rental units. This was the second visit I’ve made to these properties in four years.
During that visit, I met with my property manager and a few of my tenants, and I had lunch with my contractor. He and I met at a suburban Atlanta strip mall.
We ordered a basket of spicy chicken wings and fries, then took out a water-logged spiral notebook and planned a $20,000 renovation.
Here’s what the early brainstormed edition of those plans looked like:
