015. Money, Discipline, and Navigating the Real Estate Market | Chris Ellson

Today we sit down with real estate agent, real estate investor, and gym owner, Chris Ellson. Chris and I have a ton of overlap in our lives so this was a fun conversation.

We start off by taking a 50,000 foot view on finances. We both agree that the culture surrounding personal finances leaves young people in a type of indentured servitude. Think about it - you go to school, get into 6 figures of debt. Then you buy a car. You don't just buy any car; you buy a car so people know you have a decent job - this propels you into more debt. Then you have to find a place to live. Living in a small one bedroom apartment is a non-starter (who wants to live like they're still in college?), so you rent a place in the Southside flats for $1500 mo/. Before you know it, you're a slave to your expenses. Your 20's are spent keeping up with your debt obligations instead of living lean and aggregating skills. You've effectively pigeonholed yourself to a life of keeping up with debt collectors instead of building something meaningful. 

Chris and I are unsure how to solve the indentured servitude structure of the college educated person, but we both agree it starts with living below your means. Do not allow your liabilities to butt up against your pay. Eat dirt for a decade, build your cashflow, and then start to have some abundance in our life. Honestly, that's what I've done through my entire 20s and that's what I'm still doing today. I bought a used 2018 truck, an iPhone SE and a house I could afford. This gives me the space to pay my bills, build my business, invest 6 figures a year into the market and build a real estate portfolio. I never would have been able to do this had I not lived extremely lean in my 20s. 

We also talk about business. The grind of starting a business is something you can't understand until you do it. When you look back on it, the memories are blurry because you spend so much time getting it off the ground the days blend together. What's cool is that if you can build a small business, you have the skills necessary to build a real estate portfolio. 

This is where we start to really dig into real estate. This second half of the conversation is something I know people need to hear in this tight marketplace. We talk about finding off-market deals in this market where supply is so low. Chris has used wholesalers, direct mail marketing, and even Facebook messages to find off market deals to build his real estate portfolio. If you're a real estate investor, or even someone who just wants to buy a house, this portion is for you. 

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