FBF 02 | Flash Back Friday | From Hustle to Holdings: The Smarter Path to Passive Wealth With J. Scott

Title: From Hustle to Holdings: The Smarter Path to Passive Wealth With J. Scott

Summary:

In this episode of the Passive Income Attorney Podcast, host Seth Bradley discusses the importance of transitioning from active to passive income with guest Jay Scott, a seasoned real estate investor. They explore various investment strategies, the significance of due diligence in syndication, and the differences between house flipping and multifamily investments. Jay shares his journey from tech to real estate, emphasizing the need for teamwork in multifamily projects and the importance of understanding market conditions. The conversation concludes with actionable insights for listeners looking to create financial freedom through passive income.

Links to watch and subscribe:

https://www.youtube.com/watch?v=V26Rze2S9TM

Bullet Point Highlights:

• Active income is trading time for money, while passive income allows for financial freedom.
• Investors should focus on the highest and best use of their time.
• Flipping houses can be tedious and may not be the best use of time for high-income earners.
• Transitioning to multifamily investments can provide more control and cash flow.
• Market conditions can significantly impact investment strategies and outcomes.
• Due diligence is crucial when vetting syndication sponsors and deals.
• Understanding the underwriting process is essential for passive investors.
• Building a strong team is vital for success in multifamily investments.
• Investors should seek to understand the risks associated with their investments.
• Passive income allows for a lifestyle centered around family and personal interests.

Transcript:

Seth Bradley (00:10.188)

What's going on, law nation? Welcome to the Passive Income Attorney Podcast, your favorite place for learning about the world of alternative passive investments so that you can practice when you want to and not because you have to. Now, if you're ready to kick that billable out of the curb, start by going to attorneybydesign.com to download the Freedom Blueprint, which will also get you access to partner with us on one of our next passive real estate investments. All right, let's talk about

 

the highest and best use of your time. We've talked about active versus passive income and for good reason, they are completely different. They're on opposite sides of the spectrum. When we talk about active income, we're talking about your job as an attorney, as a doctor or a business owner, where you trade your time in for money out. Depending on your skill set, background, education, work ethic, et cetera,

 

You know, this could be a great use of your time or it could be a terrible one. But when most people think about getting into real estate investing, they're torn. Should you do a fix and flip like you saw on HGTV? Should you invest in a REIT like your financial advisor and Charles Schwab told you to do? Should you buy a single family rental or invest in a syndication? There are endless options so I can understand why it's so confusing. Well, start with this.

 

ask yourself, what's the highest and best use of my time? If you're thinking about doing an HGTV fix and flip and your partner at a big law firm, for example, is that flip really the best use of your time? And don't be mistaken, a flip is transactional and it is active. So will you make more per hour on that fix and flip than you would at your job?

 

After you factor in the learning curve, the deal sourcing, the headaches, what it takes away from your job and everything else, it's not even close. Unless you truly love doing it, which some people do, it just doesn't make sense for high income earners. You should be focusing on transforming the income you earn actively into passive income streams. At different levels on the passive scale, that could very well be a single family rental or an Airbnb.

 

Seth Bradley (02:34.26)

or could be passive investments into commercial syndications. But if you truly want to obtain financial freedom as quickly as possible, don't create more time consuming activities that aren't as fruitful as the active income stream that you already have. Focus on passive investments until you are financially free. And then you will have the freedom to transition or not into any

 

active activity you have a passion for. Today, we have a very special guest, Mr. Jay Scott of Bigger Pocket fame. Jay is an entrepreneur, investor, advisor, and the co-host