Table of Contents - Dentist to Real Estate Investor with Dr. Paul White
Dave Debeau [00:00:09] Hey, everyone, this is Dave Debeau with another episode of the Property Profits Real Estate podcast today. Zooming in from Richmond, Virginia. We've got Dr. Paul White. Paul, how are you doing today?
Paul White [00:00:20] I am fantastic. Dave, how about you?
Dave Debeau [00:00:22] I am great. So, first of all, Paul, what the heck are we doing with a doctor, an orthodontist on a real estate podcast? What's this all about?
Paul White [00:00:32] Well, I'd say blame it on Robert Kiyosaki, but know the book. I just know the story. But the realization, I guess Warren Buffett said it best. He said if you don't make money while you sleep, you'll work till you die. And that was sort of a wake up call for me. And that's started my journey to alternative investments.
Dave Debeau [00:00:49] Excellent. So how long were you digging around in people's mouths before you you came to that realization?
Paul White [00:00:57] Well, I've been digging around for a long time. It's been over 30 years doing that actually longer than that accounting, dental school and all those things. But, you know, maybe 10 years ago was I mean, I was always in the Shortbus or the slow reading group. So it took me a little longer to to figure things out, actually, that Dave Ramsey, you know, sort of advice that, you know, I guess my parents taught me to pay off all your debts and save all your money and give it to some guy who's going to invest it for you and make all this money one time to you. When you're a little kid, you know, you've got to save up all your money. We sort to pick up bottles and cash them in, right? Yeah. I mean, I have this handful of change and I go to the counter and I pick my candy up and I just go, is this enough money? And, you know, the guy reached into my into my little hand and pick out the amount of money and just trust that he wasn't going to cheat a five year old. So and I swear to you, so many people do that now with their investments. They go to the expert who probably has had that job six months or seven months is going to invest your money and he's going to keep moving money from your hand to his and your investments. Just kind of do this, you know, and it's it's kind of a game. You know,
Dave Debeau [00:02:00] it is a vicious game. Yeah. Because not only do they take the money out of your hand and supposedly invest it, but they keep taking little pieces out of that investment no matter what the hell happens to it. Right. That's the challenge. All right. So you kind of you got clued into to real estate investing. How did you get started and what kind of real estate investing were you doing at the beginning where you more of a passive money partner or did you jump right in and start and's on investing from day one?
Paul White [00:02:28] You know, I've always been sort of an active passive investor, if that makes sense. I'm not I'm not flipping a lot of houses. I've done, you know, active turnkeys and things like that. But I was the one managing the rehab. So I've always had some hand in those things. I started with single family investing and then after that went to some private lending and those were stable for a while until I started branching out. I've been accused of having real estate deals where I've got done a little bit of everything. Yeah, versification place I think is important in real estate as well.
Dave Debeau [00:02:56] So are you still doing a multiple of different real estate investing strategies?
Paul White [00:03:00] You know, I am. I have sort of been a little bit all lending and buying notes and anything because of the market conditions here in the States. And, you know, I bought a couple of properties. The last one I bought was in December.
Dave Debeau [00:03:13] So very good. Yeah. So now you're your big thing is around. Well, the nice logo that we got behind you, there are real numbers. Yeah. Like how you spell it with a Z as we say up here in Canada.
Paul White [00:03:26] I got to remember that. That's great.
Dave Debeau [00:03:29] So tell us a little bit about what is real numbers and why is this important?
Paul White [00:03:35] Well, I guess it's the back story for that is after I started getting all these investors, I started out as a mastermind for professionals and I realized that we had more money than sense a lot of times. And so I started I was feeling great. For the first time in my life. I was actually in charge of my investments. I knew where my money was. I could see it, I could touch it. I could drive by it. Money was coming in and I was like, this is great. But then all of a sudden I was getting calls for rehab, you know, deposits and and all kinds of pay off amounts. I had to verify and have just all of a sudden I started going, this is this is a lot harder to manage than I thought. And my my filing cabinet at the time was a pool table. And so I just started asking guys around, what were you doing? And shockingly, most people were not doing anything to organize their investments. And I always say, you know, the thing that I've noticed is that most people treat their investments, which represents a good part of their savings, if not all of them. And so, you know, I'm a detail guy. And so I just said this needs to stop, you know? So that's what started me on the journey. So what is it? Well, sort of like all the major business software you can think of all rolled into one and specifically done for real estate investors. So we have you know, there's a quick books functionality to it where there's a ledger, there's storage for all of your documents and all of your all of the contacts for all the people, all the all the photographs for your assets. And then there's accounting and some analytics as well. And then there are sort of an overall portfolio global. How are my investments doing towards my goal to freedom or whatever I'm trying to accomplish.
Dave Debeau [00:05:02] So does it have a little like a CRM attached to it as well?
Paul White [00:05:07] It does not. So it's mainly for for passive investors, although I've been approached by several property managers say this would be great if we could do this, because they all complain about what options they have available to them now.
Dave Debeau [00:05:19] Right. OK, so you
Paul White [00:05:21] can envision one day we would have real numbers, pro
Dave Debeau [00:05:25] 2.0. Yes, that's right. There you go. All right. Well, that makes sense. So one of the questions I want to ask you, Paul, because you're coming from a profession where most people kind of assume that you'd be more of the passive investor. A lot of us are looking to meet folks like you to bring on board as passive investors. What do you have to say to other people, other really busy professionals like yourself, about getting into real estate, investing in the pros and cons of doing it actively versus passively?
Paul White [00:06:01] Well, I think what Reagan said a long time ago, trust but verify is sort of the mantra that I would sing to all of them because we tend to be like that little boy, go, here's my money just to a different guy. We trust you. We say that, as a matter of fact, a good friend of mine who really started my journey, he had about three million dollars invested. And I said, well, how much are you making? Because I'm behind him trying to figure out what he's doing, because if he was working for him, I certainly was going to follow behind steps. And and I said, what kind of return you're getting? Because I think about 15 percent go, well, why do you think that? Because, well, that's what they told me I was going to get. And I said, well, don't you think you ought to know? And he said, you know, I had a vested interest. And after a long prodding and pushing and then he got with his son and they took some spreadsheets and figured it all out, probably took him probably 60 hours to put it all together. His 15 percent return was three point seven percent. Think that's a three hundred thirty thousand dollar per year difference. So it's a pretty big deal.
Dave Debeau [00:06:55] That's a huge deal. Huge deal. Yeah. All right. So, yeah, I trust but verify. And again, I mean, you you know, a ton of people in your profession. Yes. You know that most of them are not like you. You know, most of them are just focused on their day to day business and handing the handful of, well, very large handfuls of change to somebody to to invest for them. So how would you recommend people go about learning how to trust but verify? How do you how do you suggest people start learning how to verify?
Paul White [00:07:30] Well, you know, you're always in a deal. You're always vetting the opportunity itself, which normally includes the asset, but you're also vetting the people involved in the deal that are bringing the deal to you. And that, you know, I think most people make the mistake. Most investors make the mistake of just handing people money and never going to the site or never having paying somebody to drive by to see if it's there or anything else about the operator, you know, and talking to other investors that have worked with them and maybe done a background check on those on those people. You know, there's a lot that needs to be done because it's a it's a lot of money that you're usually putting out there.
Dave Debeau [00:08:05] Yeah, definitely makes sense. All right, perfect. So if somebody is a busy professional and they're thinking about dipping their toe into real estate investing, you've done a ton of different stuff. What would be like a good in your mind, a good, like, trial run or a first kick at the can or something that they can get their dip their toe in without getting into too much risk and also having a decent potential for a return?
Paul White [00:08:36] Well, that's a great quote. I think the best thing you can do is a partnership either with a seasoned investor or a seasoned operator, maybe rehabbing and renting a house together, you know, so everything's sort of split and you've got a back end deal sort of worked out. You can even do the same thing with some private lending as well, because that person that would bring the deal to you would have the knowledge and the connections to bring to the loan or the deal to you. And so I think that's probably the safest way to go because, you know, if their money's in it, they're going to care as much about it as you do. And if you're just it's all you, then you can get hurt. So I think it's a great way to start until you get some confidence in who you're working with. And I just some knowledge to
Dave Debeau [00:09:16] so make sure the other person has got some skin in the game.
Paul White [00:09:19] You know what? I you know, I've done a lot of syndications over the years. And I will tell you, the ones that don't have any the operators don't have any money in the game make me nervous. You know, there's nothing to keep them there if the deal goes south, you know, and I think there's a lot of that happening right now, too, as I understand it.
Dave Debeau [00:09:33] Yeah. And shaky times, I would imagine. Yeah, it makes sense. Awesome. So getting back to the whole real numbers thing, you're an orthodontist, you're a real estate investor. You might be a details guy, but you're probably not a programing type guy, I'm thinking. So how did this how did you build this?
Paul White [00:09:52] Like, I don't know if you remember when your parents when you'd ask them to help you with your math and go, oh, that's the new math. I don't know how to do that. You know,
Dave Debeau [00:09:58] I say that all the time that well, I hope this is the new math for me.
Paul White [00:10:03] So no doubt and even the way they do the you know, my kids have come to me with a problem and I go, well, I do it this way. You know, you have to go around your elbow to get to your thumb to get the answer. Still the same answer, but so it's a different style these days. But I have the good fortune and I had these issues that I was dealing with and I started out like everybody else, doing nothing, then going to the pool table, then go into spreadsheets like a lot of people. And spreadsheets are great. But, you know, there's technology from the 90s and it's not made for real estate. It's made for whatever you adapt it to. And there's some other programs that you can do the same thing. But you got to pay a programmer to to make those work. Anyway, he's a programmer. My son is. And so I started to ask him to. Can you build my spreadsheet for me? Because I had no idea. And I tell you, they still intimidate me, I'll be honest. And he said, sure. And we started building one. They said, so what do you want to do? And I said, well, can you do this? You know, because you can do this. And he starts saying that all the things you're asking me to spreadsheets can't do these things. He said, I'm a heck of a programmer, but I can maybe make this work, but you can work it, he said. What you need is a nap, and I went, OK, well, it's a nap, you know, and so so that's how we got started. So we just, you know, what's been really cool is he opens that computer. It's a new math. I have no idea what he's typing in. I mean, it could be typing Dad's a jerk all day and I wouldn't know it, but but what's amazing is I have this sort of concept in my head and all the details that worked out. I call it wireframe and he calls it a write in a bunch of crap down on a piece of paper. But but eventually turns out to this amazing program that we've created together. And it's been a phenomenal synergy. And of course, it's been a way for me to get some of my tuition. I've got invested any back, too, so that's a pretty good thing as well.
Dave Debeau [00:11:38] That's a very good thing. Yeah. And Paul, as we wrap it up here, how can people find out more about it and check it out?
Paul White [00:11:45] Well, there's two ways you can get to it. One is the real numbers, dotcom website and real numbers with a Z, as you said, a Z. I mean, I'm sorry, is it real numbers with a Z dot com? And there's you can do a free trial or sign up and get rolling or you can contact me at Dr. White at Real Numbers is my email address. We want to contact me as well.
Dave Debeau [00:12:04] Perfect. Very good. All right. Dr. Wright, thank you so much. Has been a lot of fun.
Paul White [00:12:09] Thank you, Dave. I enjoyed it.
Dave Debeau [00:12:10] All right. Take care of Isaiah on the next episode. Bye bye. Well, thanks very much for checking out the property profits podcast. And you think what we're doing here. Please head on over to iTunes, subscribe read us and leave us to review it. Very, very much appreciated. And if you're looking to create a regular flow of inbound investor inquiries about your real estate deals, then I invite you to attend one of my upcoming live online demonstrations. And you can check that out at Investor Attraction Demo Dotcom Ticker.