June 24, 2019

RCC 44: Why Women Need to Invest in Commercial Real Estate with Scott Hyatt

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There are a whole bunch of reasons why women often have less money than men: they’re frequently earning less to begin with, undercharging for their services, carrying more debt, and being funneled into lower-paying jobs. But, another huge factor is that women tend to invest less than men, and therefore miss out on the big returns that investing your money wisely can generate. This is especially true when it comes to investing in things like real estate, which are assets that can be held for a long time.

Investing in general (let alone in real estate!) is a scary subject for many women. We’re taught from an early age that we’re not smart enough, or good enough at math, or are too risk-averse to invest. But this is just plain untrue – women are actually better investors than men, according to Fidelity. So it’s time for us to put our fears aside and tap into this huge wealth- and legacy-building tool.

Scott Hyatt (AKA my husband, the Silver Fox!) joins for the third episode of my women and money series to demystify commercial real estate investing. Scott is a commercial real estate manager who’s been in the biz for thirty years, and he put an emphasis on building great relationships and investing in commercial real estate properties. We talk about common misconceptions people – and women especially – tend to have about commercial real estate, discuss how much money it takes to get started, and share a step-by-step process for getting into the investment game. We also touch on the relationship aspect of real estate and why it’s so important for women to band together in this industry.

And, I’m including a bunch of free resources so be sure to sign up here to get on the list! I’ll be sending those resources out soon as well as everything you need to know about our new project: Women Invested!

What You’ll Learn from this Episode:

  • Why women are often too scared to start investing in real estate.
  • Why commercial real estate can be such a great long-term investment.
  • How to get started investing in commercial real estate (hint: start small!).
  • What to keep in mind when choosing properties to invest in, either on your own or with partners.
  • What we mean by Amazon-proof retail properties and why they’re a good investment.
  • Why women should start to pool their money together and get into real estate investing.

Listen to the Full Episode:

Full Episode Transcript:

Welcome to the Rich Coach Club, the podcast that teaches you how to build your dream coaching practice and how to significantly increase your income. If you're a coach and you're determined to start making more money, this show is for you. I'm master certified life coach Susan Hyatt, and I'm psyched for you to join me on this journey. This is part three in a special four-part series on women and money. Here we go.

On average here in America, women earn significantly less than men. Women typically carry more debt than men, and women also tend to live longer than men, and women are much more likely to spend their retirement years and elderly years in poverty. There are many, many reasons why women have less money than men, and one reason is that women are usually offered a lower salary than their male colleagues.

Women are more likely to accept that lowball offer and less likely to negotiate for a higher salary. And in the business world, women often have a lot of anxiety about pricing their products and services. They under-charge and then under-earn, and I see this all the time in the coaching industry.

I see coaches giving away their services for free way too often, or running programs at a ridiculously low price because they're nervous about charging more. They worry they're not worth it or they worry they'll get complaints from angry clients if they raise their rates. But there's another reason why women tend to have less money than men, which is that most women don't invest.

Women typically don't want to invest in the stock market or in mutual funds or in commercial real estate because we're not raised to think we're smart enough to do it or raised to turn towards our money and think in a long-term way about our money and investments. Many women would like to invest but they don't know what options are out there or where to begin.

And in recent years, I've gotten super passionate about talking to women about investing because this is something that has hugely benefitted my life. So please, invest 30 minutes of your time and listen to this whole episode because we're diving into the world of investments, and I promise, you know me, this is not going to be boring and it's not going to be scary, y'all.

You'll see that once you get started, it's not as complicated or as risky as you might think, and one year from now when you're looking at the extra money your investments have created, you'll be so happy you clicked play on this podcast today.

As always, we're starting with a segment that I call your two-minute pep talk, and this is the part of the show where I share some motivation and encouragement to get your week started off right. And I try to keep things to two minutes or less. So, my husband Scott is a commercial real estate agent. He has been for like, I don't know, a million years.

And the other week I asked him, when you're putting together a commercial real estate deal and you've got several people pooling their money together to invest in a large property like a shopping mall, how many of those investors are women? And he told me like, maybe less than 1%, almost none. Unless they're the spouse of someone who's investing, but a woman on her own, zero. Yikes.

This sent me down an internet spiral and I started researching women in investing, which what I found is that in general, women shy away from investing their money. Once women get into investing, they usually start much later in life than men, and also women typically invest about 40% less money than men do for a whole lot of reasons.

Women are pretty nervous about investing, and this is really unfortunate because women are missing out on a huge opportunity to make a lot more money. The coach in me wonders why aren't we investing? What's stopping us? Well, many women worry oh, investing is complicated, I would probably make a lot of mistakes and lose a lot of money, I'm no good at math, this is too hard, this wouldn't be a good move for me.

This is not true and in fact, the opposite is true. Studies have actually shown that once women do invest, they usually out-perform men. The finance company, Fidelity looked at eight million customers and discovered that women investors consistently earned higher returns than men, and women add more to their account balances over time. 12.4% compared to 11.6% for men.

Ladies tend to do better than men when investing once they get started. The key is just getting started. This is yet another example of women doubting themselves and feeling like they're incompetent or unqualified when this is not true. Women also worry well, I'm not rich, I don't have a bunch of money laying around, I can't invest. But many women don't realize there are small ways that you can get started with investing, even if you only have $100 to spare.

So Google how to start investing with just $100 and you'll find tons of resources for you. There's actually a micro investing app called Stash where you can start investing with just $5 and once you watch that five turn into 10, you'll be like what? Why didn't I know about this sooner? Look, here's the realness. Research shows that men tend to overestimate their intelligence and their abilities, while women tend to underestimate themselves.

There have been studies on men and women taking math tests and studies about men and women applying for jobs and the findings are always the same. Most women doubt their abilities and worry they're less intelligent than they actually are, while men do the opposite. Men tend to inflate and overestimate their abilities.

Ladies, I want you to remember this the next time you feel nervous about trying something new in your business like running a new program or raising your pricing or taking some of your business income and investing it. Remember that you are more competent than you think. You are thoughtful, you are smart, you can do this. And statistically speaking, you're going to be better at investing than the dude sitting next to you. Better than your husband, your brother, your dad, or that guy in line next to you at Starbucks. Remember that too. Pep talk complete.

Now we're moving into the part of the show where I give shout-outs to you. Shout-outs to listeners and clients, all the wonderful people in my business community. And today I want to give a shout-out to Stacy. So Stacy gave me a five-star review on iTunes and she said, "Susan Hyatt, your episode on money and the pay gap, oh my people. This is so good and important. You may not know how aligned we are on this money topic, Susan. And for sure, we're going to meet in person someday."

I would love that, Stacy. "I love this topic so much that it's my mission to take a holistic approach like top level healthcare systems into the financial world. Let's all start talking the same language. It starts with education and getting over our own emotional crap about the numbers. It's up to you, people."

And then she gave a bunch of amazing emojis that involve money. Thank you, Stacy. And hey, if you have something to say about this show, please send an email to my team or post a five-star iTunes review about this show, or post something on social media and tag me and you might hear your name on a future episode. I love giving shout-outs to people in my community so holler at me. Thank you for the love. I love you right back.

Alright it's time for an interview and hey, this is a historic moment because I have a very special guest star for you today on this episode. it is my husband Scott A.K.A the silver fox Hyatt. Yes. The silver fox is in the house. We're going to talk about investing options for women, specifically commercial real estate investing, which is one area where women are hugely underrepresented and Scott and I are collaborating on a new project called Women Invested, which we'll tell you about that too, but here we go. Let's roll out the Rich Coach Club red carpet for the silver fox.


Susan: Welcome to the podcast Scott A.K.A silver fox Hyatt.

Scott: Good afternoon.

Susan: Oh my god. So you guys have no idea what a feat it has been to get the busy silver fox on the show. It was been hilarious training him on how to be on these online internet streets, but he's here. And if you want to watch the video of this interview, go to the show notes and click on the link and you can see how cute he looks in his blazer today.

He's got my old podcast mic he's using for sound and we're here today because we're talking about the importance of women creating wealth and women investing. And one of the benefits to being - there are many, but one of the benefits to being married to you, Scott Hyatt is that for years and years and years, you have drilled into my head the importance of creating wealth through commercial real estate because that's where your area of expertise has been. And so you've been doing this, what? 500 years?

Scott: 25 years now, since 1989.

Susan: 25? I thought it was 27.

Scott: Probably is. I don't know, what's '89 to 2019? 30 years. I've been doing this 30 years.

Susan: How are we going to trust you with our numbers? You can't count.

Scott: Because I have a calculator and a spreadsheet.

Susan: Okay. So mister man has been doing this for 30 years and has, I might add, a stellar reputation for helping clients create long-term wealth. This is not get rich quick kind of stuff, and so it's been nice to have him understand how to invest our money for retirement and to commercial real estate. And the thing that lately has been on my mind about this is talking to other female entrepreneurs who are making lots of money but they don't know necessarily what to do with it to create wealth.

So there's a lot of ways that you can invest your money, and of course my exposure has been through commercial real estate so we decided to start this conversation because I think Scott - and I'm curious your thoughts about it, but most women that I talk to have a lot of misconceptions about what investing in commercial real estate is about and the amount of money you need to get started, and it seems so complicated to most people.

Scott: Okay, if we talk about women in real estate, women investing in real estate, at least in my circles and from talking to other people, there's just not a lot of them. I've talked to bankers, I look at my clients. In fact, I had a meeting with a banker friend of mine the other day and I asked him, how many women are coming in applying for commercial loans for real estate? And he had to think for a minute and I don't think he came up with one.

If I look at my client list, who I've sold investment properties to in the past, very few are female. I've had a couple here and there, but the bulk of my clients are male. And for me, I had an interesting twist into this. We have a building and this building started out - this has been some time ago, every tenant in it was a female owned business. I mean, it was great. The building did great, they all did well. Half of them expanded, moved off, half are still there. I find that interesting.

Susan: Right, so I'm guessing what's interesting to you about that is that women are in business, women are running businesses, women are not owning the buildings in which they are doing business.

Scott: Yeah, and I don't even - I don’t want to bring the conversation into owning the building, which you operate in. We're going to move this more around into the aspects of investing in real estate. Why invest in real estate? Why do we do it? And I can talk from strictly a personal level. Quickly and simply, my wife and I are both self-employed.

Susan: You mean your wife being me?

Scott: I know, this is a little odd. I feel like I'm talking to...

Susan: We're having a conversation like you and I...

Scott: Anyway, for those out there who are going to ultimately listen to this podcast, okay, we're self-employed. That means there are no 401K plans, there are no profit-sharing plans. Hell, I don't even know if pensions still exist. I guess they do in some industries. So we had to come up with a way in which to prepare for our retirement. Because I was in real estate, that's what I knew best. So our focus on preparing for retirement has been to invest in real estate.

You know, there's a good saying and I learned this a long, long time ago. You can make a lot of money buying and selling real estate, but you can get rich owning real estate. That was by Trammell Crow, who is probably one of the biggest real estate developers around 20 years ago.

Susan: Scott, do you - seriously, let's just pause here for a moment real talk. I have been married to this man for 26 years, we've been together 28 years and he still refuses to silence his freaking phone. We are in a podcast interview and it goes off - again, I was giving a speech at his Rotary club and the damn phone goes off. Would you please silence your phone?

Scott: My phone has been silenced.

Susan: And again, unless you're clicking on the video to watch, you can't see him. This is for the listener.

Scott: I'm a professional podcaster, just so you guys know. I'm in the training program.

Susan: Yeah, Scott is in the training program for how to show up online, clearly. So okay, so yeah, Trammell Crow, biggest commercial developer said to get rich off real estate. Yada-yada-yada. My question though is most people are very confused about what that means. They think it's like oh, flipping house, or they think it's all that scammy stuff you see on late night infomercials. Investing in commercial real estate for the regular person doesn't have to be complicated or too much. So let's talk about how much money you think someone needs to get started investing in commercial real estate.

Scott: Okay, so let's start off at the beginning and take on something small. So one of the easiest things and probably one of the least amount of risk is buying a small apartment complex. I really like small apartment complexes. Four unit, eight, 16 unit, whatever you want to do. So if you buy a four unit and you say the price of that building is $150,000, you're almost inevitably going to need 20% in equity down, or $30,000.

Then you ask well, how much money am I going to make off of this? Well, real estate returns anywhere from 8% to 12% cash on cash. By cash on cash, I mean if you invest $30,000, at the end of the year at a 10% cash on cash return, you're going to have $3000 in your pocket. You're sitting there saying to yourself, well that's not a lot of money, well it's not, but remember you only invested $30,000.

Let's switch this around and say you bought a multi-tenant retail strip center and that price was four and a half million. Well, you put $800,000 down and you make your 10%, and then there's $80,000.

Susan: Wait, wait, wait, wait, you're going too fast. So per year, so let's back up to the small apartment complex, which we own some of those. And I only have to put 30% down but my return that year is going to be three grand, but that's just the cash coming off of that in one year. We're talking about though holding long-term over time...

Scott: Now you start getting into the fun part of real estate.

Susan: Right. So it's not just that in one year all you make is three grand. You don't really care about that three grand. What do you care about?

Scott: Okay, the best thing about real estate are two things. One is leveraged returns, the other is OPM, other people's money. So I'm going to use the small example, the $150,000 quadplex, duplex, whatever you want to call it. So I paid $150,000 for it, I put 30 in it, but I'm going to hold this for a long time and I'm going to use other people's money to pay the mortgage, meaning that mortgage does not come out of your pocket.

So every year, my equity increases. So I started off with 30, year two, I have 32, year three I have 34, and so on and so forth. And I'm making this $13,000, $14,000, $15,000 a month payment. Well, over a period of years - we'll say 20 because most things are 20 years. So in 20 years, all of a sudden, my equity has gone from $30,000 to $150,000 and now I have an income stream of $18,000 a month.

Susan: Right, so you have - let's just break it down. So you have an income stream, you have a return on your investment over time that's massive, and so why would someone be interested - so now it's starting to sound good rather than just all you get is three grand the first year. Over time, that apartment complex, when you go to sell it is now worth what?

Scott: So add another $20,000 on for appreciation. So that $150,000 asset you bought, and I'm just using rough numbers is now worth $170,000. You pay 30 down, but guess what, it's paid for. So if you want to cash in at that time, take your $170,000 and go invest it in something else. But let's now talk about building wealth.

Okay, so I bought one. Bought one for $150,000. Two years later I buy one for $300,000. Two more years later, I buy one for $500,000. Well now five, eight, I have $950,000 in real estate. Almost a million dollars. And in that period between when I invest and when I sell or retire, I am creating wealth every day. Every day, my wealth increases. Somebody else is paying off that mortgage for me and I'm getting a return on my investment.

So you want to get rich, all of a sudden you have a million. Maybe you buy another one, now you have two million. Maybe your business kicks into high gear and you have four million. Okay now I earn four million dollars with real estate over a long period of time because I'm a holder of real estate. My idea in real estate is to generate wealth. So now I own four million dollars’ worth of real estate and I'm going to make 10% of my money. 10% of four million is $400,000. Can you retire? I'd say $400,000 a year to sit on your ass, that's pretty damn good.

Susan: Wait, sit on your ass. Let's really think about this because you definitely are not someone who would ever just retire on and sit on their ass, and probably not anyone listening to this podcast is that kind of personality either, but you could if you wanted to is the...

Scott: The want part. I have the option now to do what I want.

Susan: Right, I have freedom. And you've created wealth in a way that is interesting, safe, sustainable. I mean, that's the other thing to talk about here is that with commercial real estate investing, at least the way I've observed you do it, it's investing in markets where everyone has a different level or tolerance for risk, and so it's investing in a way that addresses or honors your tolerance for risk but we're typically middle of the road, wouldn't you say?

Scott: We are, and let's talk about risk. And I don't do high risk stuff. My clients like good, solid real estate investments. You can go buy a $20,000 and rent it out for about $600 or $700 dollars a month, and what I like, and you're exactly right, you develop what your investment criteria is, what you like. Some people make a fortune being a slumlord. It's not something I choose to do.

Flipping houses, you can make a lot of money off of flipping houses, but it's fast paced and it's all about timing because remember, as soon as you buy a house, you're losing money every day. The idea is if you can buy a house and sell it the next day, you maximize your return.

Susan: Well, and let me just interrupt here. We have flipped houses before. When I was in residential real estate, we flipped houses and we made money on every single one of them, but what's involved in that - correct, instead of a long-term hold with commercial real estate, this is how quickly can I get in, renovate, get out. And it's a different level of pressure and it's a different - I actually think if you enjoy being a project manager, if you enjoy that sort of thing, that can be a great way to make money, but you've got to know what you're doing. Some people lose their shirts flipping houses, whereas I really look at commercial real estate as really like, a sane approach to real estate investing.

Scott: I think flipping houses is nuts and I don't recommend it to somebody who does not want to get their hands dirty and does not like to run fast and have multiple balls in the air. It's a little crazy. There are other sides. You could buy a value-add type property. Little more interesting than a flip, but when you're going to do is you're going to improve it over time, and by improving it over time, you will increase the value and the rent stream over time.

That's not a bad idea, but for back to starting out, if you want to be a first time investor, you need to get in and learn something. And a fourplex is a great idea. I think one of your people on Facebook asked, well, I'm out of college, what should I do? If I was right out of college, go buy a duplex, live in one side of it.

Susan: Yeah, that's a great piece of advice. You tried to get me to do that when we were newlyweds and I was like no, sir. I wish I had. I wish I'd listened to you. I think that's actually really smart.

Scott: You know, there are differences though. Okay, so we've got different types of real estate to invest in. What we have - I like multi-family, I like retail, I like Amazon-proof retail. Office buildings...

Susan: Wait, let's back up. Let's talk about what you mean by Amazon-proof retail.

Scott: Okay, everybody out there has bought stuff off of Amazon. Think of everything you can buy on Amazon. Well, if it's sold in that shopping center, it's probably going to go out of business. Everybody's click and shop unless it is a real niche type item.

Susan: So give us some examples of some Amazon-proof businesses.

Scott: Okay, so we have a building that we have that we're involved with. I've got Jimmy John's, I've got a nail salon, I've got Edward Jones. You know how much I love Jimmy John's.

Susan: So you guys, you need to go back a couple episodes when I talk about Scott and his lunches at Jimmy John's but anyway, okay, go ahead.

Scott: Okay, so Jimmy John's, Gamestop. Gamestop might be interesting. We may not have Gamestop in the next three to five years. They may be gone. They may go the wayside of Blockbuster. But your nail salons, your insurance agencies, your restaurants, those are Amazon type proof places. Medical centers, a lot are going into strip centers now.

Susan: Okay, you're using a lot of lingo. Strip centers are shopping centers that are not enclosed malls.

Scott: Yes, I'm sorry. They're typically long buildings with multiple storefronts. Retail strip shopping centers.

Susan: Right. Not stripping, not where people go to strip, although I'm not opposed to that.

Scott: No strip clubs in the shopping centers, although you could, I guess.

Susan: Alright, so we like what we're involved in and what Scott specializes in is not like, buying 80 single family homes and being a slumlord that way. We're talking about apartment complexes that are well-maintained, multi-family, shopping centers, A.K.A strip centers, apartment buildings. These are all ways that you can invest in commercial real estate and have a safe sustainable investment.

Scott: You want good solid real estate. There is risk in everything, there is risk in real estate, but my preferences and the investors I work for, we look for good solid well-positioned real estate. And I know you guys all heard this. Location, location, location. Still very important. You want an area that's going to sustain itself for a long period of time.

Susan: Right. Good location, all those things. We obviously - I'll be telling you guys more about something that we're partnering on. Should be interesting, called Women Invested, because 1% of assets managed out in the world, only 1% are female and minority owned. I feel very strongly about wanting to share Scott's intellectual property and my experience with investing in commercial real estate to build wealth. I feel like it's a way for us to really smash the patriarchy and blow up a glass ceiling.

Women are raised to think that they're not good at math, they're not good with money, and the men in their lives tend to make the decisions about investments, and what we're seeing and what I've talked about on these women and money podcasts is that there's more women in retirement and living in poverty than men, and this is a great way to combat that. If we can educate as many girls and women as possible about how to turn towards their money, how to be concerned with creating wealth, and then how to do it through commercial real estate, I'll feel really good about that.

So if somebody is interested in investing in commercial real estate, you mentioned like, 30K for a small fourplex. But what about if a lot of the female entrepreneurs that I know and that I work with, they want to pool their money together and buy shopping centers, apartment buildings, things that cost multi-million dollars. Talk a little bit about - I mean, I think when most people hear that, they're like oh, that's too rich for my blood, I couldn't do that.

But part of the way that we've been able to leverage is to partner with other couples and go in on buildings. So talk about if somebody's really interested in getting started, we'll of course eventually be providing a checklist to you and some spreadsheets on how you could go to your local commercial real estate broker and get started, but what are some things that you need to think about in terms of readiness for investing in commercial real estate the way that you do it, that I do it?

Scott: Okay, for a typically investor, the first thing you're going to worry about is investing in real estate is a capital-intensive endeavor. Save some cash. You've got to have cash. These get rich quick schemes where you're going to get somebody to hold a contract to finance it for you 100%, run away from it. I would never ever let one of my clients sell a piece of property on a contract. I think it's a disaster waiting to happen.

So first off, save your cash up. The next thing is go talk to your banker. Develop a relationship with a commercial loan officer. Not your personal banker, not the one who you go in if you want to buy a new car of whatever. Find a commercial loan officer in your market. Take him to lunch. They're going to pay for it because...

Susan: Shut up. Take them to lunch...

Scott: It's a great way to do it.

Susan: Well, yeah. And obviously, I want to encourage you to find a female commercial loan officer because not only are - I'm just going to keep coming back to this. Women are typically not in the rooms where these deals are happening so you want to as a female investor, I want to encourage you to seek out a female commercial loan officer as well. Make that relationship with her and then what?

Scott: Okay, I'm going to say one thing about the commercial loan officer. Stay away from your really large banks. They're more difficult to deal with. Sometimes they're inevitable, you have to deal with them, but your large multinational banks are harder to deal with. If you live in a smaller or midsize style town, chances are going to have some good community banks, maybe even a credit union.

Find somebody in a good community bank who wants to and who has an appetite for financing commercial properties in your market. That is your best source of financing. It's going to be the easiest to get done. Okay, so we have our loan officer, we have our cash, you're going to inevitably get your taxes and get your personal financial statement together because the loan officer's going to ask that as soon as you go apply for a loan. Then go find a commercial real estate broker. You know, if you're in Evansville, come see me.

Susan: Well, let's talk about that. So you're licensed in Indiana, Kentucky, and where else?

Scott: Just Indiana and Kentucky now.

Susan: Okay, alright.

Scott: But find a good real estate broker and find one you trust. Get to know them. You don't have to string them along, say I'm going to buy right now, go show me 1000 properties because they'll lose interest in you. Develop a relationship with them. It's been times - I have relationships with all kinds of different investors to where a property has come online, either I list it or somebody else, and I know exactly who's going to buy it.

As soon as I see it, I know who's going to buy it, and I take that property directly to them because I know what their criteria is, I know what they're looking for, I know how much cash they have. And it will sell real quick. I have literally listed a property one day and sold it the next because I knew as soon as I saw the property who was going to buy it.

Susan: Well, and part of that is - and this is why you want to develop a relationship with a good, honest commercial real estate broker, because this is what happens. This is why people feel shut out of deals because they haven't formed relationships and that stuff goes - this was same with residential - a good solid property that's a hot, hot property is going to go quick and if you don't already have your stuff together, your things in place, your relationship in place, you're just never going to get inside of those deals unless you just get started and get prepared. So he's absolutely right with forming a good relationship with a good broker.

Scott: I would suggest to you not to buy - and this is first time - if you're going to invest yourself, don't go outside of your market. Stay in your market, stay where you can see that property. And we could talk for hours about what property, why that property, what you should do, how you should act. That's a whole 'nother conversation, but I can tell you one important part. You own a piece of commercial real estate, keep your finger on it. Pay attention to it. Don't get too far out.

What we tend to do is put together groups who pool money and buy commercial property. I've been doing this for 30 years. I have partners. I have built buildings, I've developed them, I've sold them. What we like to do is find that property, that good solid piece of real estate. One piece of real estate I sold here recently was a three-tenant office building and it was a million dollars. Well, I need four people with $50,000, we buy it, and it's a good solid piece of real estate.

And that's a reasonable thing to do, but now what you have is that you bought into a property, and quite honestly, you're going to buy into a relationship with me and Susan, and it's - a partnership is a marriage. I don't care how you talk about it. It's a marriage.

Susan: Well Scott, what somebody wanted to know, what's it like to be married to me?

Scott: I am probably - being married to me is easy. I'm a happy go lucky guy. I don't cause trouble. I'm 90%. 90% of the time I'm very well behaved, the other 10%, you know, it's questionable. I don't spend a lot of money...

Susan: Oh my god, that car. That sports car. You guys...

Scott: We were supposed to talk about racing today. Okay, so racing. Road America is coming up in September in Elkhart Lake, Wisconsin. You guys are all invited. Come up and see us.

Susan: You are ambushing this interview with your car stuff. Listen, the question was what's it like to be married to me and you immediately go to how easy it is to be married to you. What?

Scott: How is it to be married to Susan? Well, let's put it this way. It's never dull.

Susan: If you're not watching the video, you need to watch the video because his body language is hilarious. He's like, searching the sky for some appropriate words as to not anger his wife. Alright, so before I interrupted you, it was yes, being in a relationship with fellow investors is like a marriage. People who are great to invest with are people who have capital, who have good credit, who are easy to work with, who are reasonable individuals. What else would you say?

Scott: You know, I think you just hit on a key word, and that key word is reasonable. When you start expecting the unattainable is when you're going to get in trouble. You go in with reasonable expectations of that piece of real estate. What the risk is and how it's involved, and how the deal is structured. I think that is probably the big thing. We have partners - I have partners I never hear from. If I want to do something to the property - and I manage the properties. So it is a little bit different...

Susan: Which is why he was saying like, you want to be able to see the property and not necessarily invest a lot out of town unless you trust the property manager, right? Because a lot of your investors aren't here, but they trust that you're the eyes on the property and the reason why is you want to make sure that property is being taken care of. You want to make sure that there's nothing dicey going on. Why else?

Scott: You need to trust your property manager because he is the guy that's going to...

Susan: Or she.

Scott: Or she, yes. You need to trust the person that's hands on, that's on the ground, that they are going to pay attention to your investment. The property manager protects the value of your property, enhances the value of your property, so you need to be able to trust them.

Susan: And I think that was another one of the questions, wasn't it? Somebody asked something about property management or upkeep, like what you should expect and the thing that - when Scott earlier was talking about what the return is, the operating expenses and the maintenance and all those things are kind of built into that plan. So when he says this is how much money you're making, that's after you've paid for the maintenance, the care, and the management of the property.

Scott: That is correct. I would suggest somebody getting into real estate investing, unless you're going big, if you're going small to this $140,000 duplex, manage it yourself. If you can afford to jump up and buy this million-dollar office building, contract it out because that property can handle the management fee. There is a difference. You change property types.

Most people are familiar with an apartment lease. Most people are not familiar with a 40-page commercial lease. They are different. So depending on where you want to be, if it's that small first time one, do it yourself. Learn it. If it's the big one and you can jump right into that, contract it out and hire a professional property manager. You don't want to be bothered with it.

Susan: Totally. And I think you know, people listening right now, there's a good mix. There are plenty of women that are already on a list with me that are - they have the capital, they're ready to invest in a multimillion-dollar property. And there are people who are in their local communities, you guys will be maybe buying a duplex or a quadplex like Scott mentioned.

But what we're going to provide for you guys in the show notes are some tips and some things to think about and then we're going to have the silver fox back to answer more questions and talk about those a little more in depth in the next - the final episode, episode four of my women and money series. So Mr. Scott Hyatt, A.K.A silver fox, if you want to leave this audience with one point of motivation or one - the number one reason why you think they should give a rip about investing in commercial real estate, what would you say?

Scott: Leveraged returns.

Susan: Leveraged returns. We need that on t-shirts I think.

Scott: We do.

Susan: What is next for the silver fox?

Scott: What is next in which way, what form?

Susan: Any way. How would you answer that? What's next for you?

Scott: Continue on. You know what I'm going to be? I aspire to be Susan's bag boy. I'm going to carry her bags out on all these trips.

Susan: Oh my god, so first of all, I think a lot of members of my audience know that you've been saying that from the beginning. Remember Scott Hyatt, you gave me a dollar amount and you were like, when you make X number of dollars, I'm just going to carry your bags. I'm just going to quit and carry your bags, and that day has come and freaking gone and you keep upping the amount of money that I need to make in order for you to quit and carry my bags.

Scott: I might need another race car.

Susan: Yeah, yeah, yeah. Well, from the bottom of my heart, I want to thank you for being a guest on the Rich Coach Club podcast and we will be having you back, sir.

Scott: I'm a guest. Did you hear that? I'm a guest.

Susan: You are a guest. This is my show, yo. Alright, thank you.


How about it? Now you guys see why I married this guy. 26 years married, still going strong. He's smarter than he looks. Alright, before we wrap things up, I have one more resource I want to recommend for you. There's a website called smartasset.com that has a lot of great free resources. Go there, click on the investing tab, and you'll see an investment calculator.

This is really cool because you figure out how much your money is going to grow over time, so for instance, you can plug in a starting amount like $1000 or $50,000 or whatever, and it will calculate how much your investment will be worth in 10 years, depending on different factors that you can adjust. So if you're a total newbie when it comes to investing, this is a great first little baby turtle step for you.

Just start plugging different numbers into the investment calculator to see what could be possible for you. And by doing this, you might start to feel some motivation and excitement about investing that you hadn't felt before, which can propel you into taking the next step and the next and the next.

And so also, unrelated to the Smart Asset website, please do yourself a favor and go watch Jennifer Lopez, her music video called Dinero and please watch the Homecoming documentary with Beyoncé on Netflix. I literally assigned these videos as mandatory homework for many of my clients because J-Lo and queen Bey will motivate you to get serious about building wealth.

Whenever I'm having a low energy day, I pour some J-Lo or Beyoncé into my ears, and I swear, it's like soul medicine. Those women get me back to my desk and back into money generating mode. To quote Beyoncé, she says, "You know, equality is a myth and for some reason, everyone accepts that fact that women don't make as much money as men do. I don't understand that. Why do we have to take a backseat? I truly believe that women should be financially independent from their men."

Hells yes. Beyoncé said it, I'm cosigning it. So ladies, let's get into formation. See what I just did there? And let's earn, invest, earn more, and create serious wealth and independence for ourselves. No more backseat. Front seat always. Thank you for listening to today's episode. So this episode was part three in a special four-part series on women and money.

Make sure to come back next week for the final installment. I hope I've inspired you to think about investing your money. You invest in your health, I hope. You invest in your education. You invest in your coaching practice. It's time to start investing your cash too so that you can watch it grow. So even if you've only five, 50, $100, you can become an investor today. Holler at me on Instagram or Facebook and tell me how you're investing your money. Get that paper.

And hey, if you're not a member yet of the Rich Coach Club Facebook community, you're going to want to join. There's a link in the show notes because I'm getting ready to unroll a whole bunch of new webinars just for coaches, just for learning how to make money and create wealth, so get inside the Facebook group and keep your eyes peeled for links for free trainings.

Alright, thank you so much listening to Susan Hyatt's Rich Coach Club. If you enjoyed today's show, please head over to shyattagency.wpengine.com/rich where you'll find a free worksheet with audio called Three Things You Can Do Right Now to Get More Clients. You can download the worksheet and the audio, print it out, there's a fun checklist for you to check off. Just three things to do. Check, check, checkidy-check.

This worksheet makes finding clients feel so much simpler and not so scary. So head to shyattagency.wpengine.com/rich to get that worksheet. Over there, you're also going to find a free Facebook you can join especially for coaches. Bring your coaching practice and your income to the next level at shyattagency.wpengine.com. See you next week.

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