Wealth is code for freedom.
If you want to be a millionaire, it’s probably because you want control over your time. You want the autonomy to make your days your own and spend them with the people you love. Today’s guest chose real estate as his path to freedom, spending less than he earned and investing the excess in apartment buildings. Maybe you are interested in doing following a similar path, but something is holding you back…
Paul Morris is the co-author of Wealth Can’t Wait, a New York Times bestseller that identifies the seven traps that keep people from building wealth and equips readers with a comprehensive set of skills to achieve financial freedom. An active and consistent investor, he has grown his real estate portfolio to more than 700 rental units and 150,000 square feet of retail commercial space, and Paul was named among the 200 Most Powerful People in Residential Real Estate in 2013 and 2014.
Prior to working full-time in real estate, Paul enjoyed a successful legal career, working as an associate at a major international law firm and as Senior Counsel with the US Department of Justice. He has a degree in economics, a master’s in management from Oxford, and a JD from Cornell Law School. Today Paul shares his early experience in real estate, investing in a duplex while he was still in school. He speaks to the kinds of investments he prefers, the pros and cons of working with a partner, and how to get started in real estate with little to no money. Listen in to understand the three rules for investing that have helped Paul avoid losing money, as well as the seven wealth traps that keep people ‘stuck on the sidelines.’ Find out what’s holding you back and get on the path to health, wealth and freedom!
Key Takeaways
[1:55] How Paul got into real estate
- Working class dad invested in real estate
- Provided income without working
- Bought duplex in 1990 (Ugly Duckling)
- Always worked with partner, gives courage
[4:59] The pros and cons of having a partner
- Paul recommends working without partner
- Choose partners based on brainpower, integrity
- Clarify deal points, exit strategy in writing
[8:11] The kinds of investments Paul favors
- Prefers buy and hold strategy
- Buy and flip too risky
[11:03] Paul’s philosophy of wealth as code for freedom
- Ask yourself why you want to build wealth
- Money affords power to choose, create
- Allows to pursue greater goals
- Love, health and time
[15:57] The 7 Wealth Traps
- Staying in a comfortable job
- Avoiding risk
- Viewing wealth negatively
- Giving up (not staying the course)
- Holding on to toxic friendships, the Weak Social Circle
- Victimizing yourself
- Thinking you know it all
[26:40] How to start investing in real estate with little or no money
- Buy a home, live with roommates to cover mortgage
- Use other people’s money
[29:32] Paul’s 3 rules for investing to avoid losing money
- Buy where you know
- Buy value-add (worst house in great/gentrifying neighborhood)
- Buy cashflow
[33:12] What Paul is excited about
- Providing great, safe units in LA neighborhoods ‘turning a corner’
- Traveling with daughter, girlfriend
- Becoming better table tennis player
[34:04] Paul’s perfect day
- Freedom to dress casually, work from home/coffee shop
- Finished in time to pick up daughter from school bus
- Hot yoga class with girlfriend
Connect with Paul Morris
Paul on LinkedIn
Resources
Wealth Can’t Wait: Avoid the 7 Wealth Traps, Implement the & Business Pillars, and Complete a Life Audit Today! By David Osborn and Paul Morris
The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley and William D. Danko
“7 Ways You’re Hurting Your Chances at Building Wealth, According to 2 Self-Made Millionaires” in Business Insider
Interview with Lewis Howes and Grant Cardone
“7 Strategies That Will Help You Build More Wealth, According to 2 Self-Made Millionaires” in Business Insider
“5 Timely Investments You Should Consider This Summer” in Forbes
