Today’s guest had read the classic personal finance book, Rich Dad Poor Dad by Robert Kiyosaki, early on in his work life. This opened his eyes on the true meaning of wealth and changed his mindset on wealth building. Realizing that to build wealth you don’t always have to exchange your precious time.
Bernard Sanga (Benjo) started his investing career from his first job as a Physical Therapist in the Philippines. Living with his parents, he was able to save almost 90% of his paycheck that he deployed consistently in the stock market. Although the amount was small, the valuable lessons he learned had shaped his saving and investing habits in the present.
A Healthy Competition
One financial lesson that stood out when he was young was a competition between him and his brother. After receiving a sum of money from relatives one Christmas, their grandma offered a choice for them to “invest” the money for a 50% return each month.
His brother gave all his money to Grandma, but Benjo chose to buy something for himself instead. As expected, his brother won, earning so much that he wanted to “invest” more, so grandma had to stop the this sweet deal. Meanwhile, Benjo just ended up with some trinket that he couldn’t even remember now.
Learning by Doing
Real Estate investing could sound too easy in online courses and books that everybody can do it. Yes! It is accessible to almost anyone who has the means to educated themselves and go through the hoops of buying a house, but No! book scenarios do not always mirror reality. If we could all just find that perfect $100,000 house each year for the next 10 years, rented at $1,000 a month then we’ll be all set for life.
After consuming contents on the Bigger Pockets library, Benjo ventured in the world of Real Estate in 2019. He tried other forms of investments and found that in Real Estate you could earn more through Appreciation, Cash Flow, Loan Paydown, and Tax Benefits.
His first rental property is still his worst deal. Upon receiving multiple offer rejections, he struck a deal with a seller who couldn’t get rid of his home due to needed repairs. The real work (and headache) started when he was overwhelmed by repair costs that he underestimated. This hurdle didn’t stop Benjo rather he adapted a growth mindset. He documented his wins and losses to make his next deal better than the former.
Investing in Real Estate is intimidating. Give yourself research time but act fast by making offers right away. There will be professionals (agents, contractors, brokers, etc.) that should guide you along the way. Learn on the job like how we treated our first rental property as cost for “Real Estate School.” Sometimes you have to jump first, then build your parachute on the way down.
Views on Money and Wealth
Money is a measure of your impact to society. It is the economy rewarding you providing useful goods or services that solve everyday problems. Wealth is how much you keep from money you earned. We could compare it to your weight or blood pressure as a measure of your health. It is just a measure of your financial health. It will not change you but amplify what you already are.
The Why of FI
Financial Independence by Real Estate will give Benjo and his wife, Maan, time to be with their kids at crucial stages of their lives. They also want to give their kids a better playing field in life when they grow up and do what fulfills them. Benjo enjoys motor sports and outings in the racetrack. FI will afford him freedom to do this and whatever he wants. It will allow him to spend time with his family and do things that will yield precious memories all throughout their lives.
Reach out to Bernard and learn more about Real Estate investing at Outliers Capital.
Have you been curious and wanting to start investing in Real Estate? Learn from Benjo’s firsthand experience in the world of Real Estate investing below.
We are a Pinoy Physical Therapist duo living somewhat unconventional but intentional lives. In this podcast we want to learn how Filipinos all over the world in different industries and walk of life earn, spend, save and invest money to achieve Financial Independence.