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Dave Dubeau [00:00:09] Hey, everyone, it’s Dave Dubeau here with another episode of the Property Profits Real Estate podcast today zooming in. Mr. Paul Thompson, we’re in for a real treat today, you guys, because Paul is not only an accomplished real estate entrepreneur, he’s also a money expert, he’s a podcast host and he’s an all-around sharp guy. In fact, a few years ago, Paul went from full time work into the job. Good job, corporate America to becoming a full time real estate investor quite quickly. In fact, he did 20 deals in 18 months while working full time, which is very impressive because my little claim to fame for a while until Paul came here, I was doing agent deals in 18 months and that’s what I was focused 100 percent on real estate buzz. So all you kick my butt eight ways to Sunday on that. So glad to have you on the show.
Paul Thompson [00:01:02] Well, thank you for having me. This is going to be a lot of fun.
Dave Dubeau [00:01:05] Yeah, yeah, yeah. Yeah. Well, let’s talk today about some of your ideas on the importance of creating a new mindset around money, because I think that was one of the kind of the self-growth steps that you took along your path that helped you to transition from working full time to becoming a full time real estate entrepreneur.
Paul Thompson [00:01:27] That’s right. Definitely kind of was raised in a scenario where money was kind of there is never enough of it. It I of was raised in a bit of a scarcity mindset, and it took me a little while to kind of unwind that programing. I was raised by great people, just salt of the Earth, you know, good heart. But they just lived in a scenario where money was always, there’s always a shortage of money, and there was a scarcity mindset and
Dave Dubeau [00:01:51] it had to work hard to make. Yeah, yeah, right.
Paul Thompson [00:01:54] Yeah. So I talk about money in a little different way than I think a lot of people do in the striving for money is, I think, a mistake. So what we really want to think about is money is simply a resource, and that’s a mindset shift that you might want to make and kind of characterize it into kind of five categories of thinking as money as simply a resource. And that’s certainly the goal that you need to achieve. And one of the first things you want to kind of get your head around is separating time from money. And it is saying that time is equal to money and we’re trained to exchange our time for money, and that’s a huge mistake. If you want to accomplish the things in your life that you want to do. Money is simply a resource and you don’t want to just be trapped into the framework of exchanging time for money. It’s a money trap. And secondly, well, when? Go ahead. Sorry.
Dave Dubeau [00:02:45] Sorry about jump in here, Paul. I just want to kind of expand on things. So. Trading time for money getting out of that, I get it intellectually, but for somebody who is stuck in that. Who’s got 20 or 30 years under their belt doing exactly that right? Any quick tips on how to how to actually make that shift?
Paul Thompson [00:03:06] Yeah. So one of the best exercises that I think someone can do to kind of capture and get their head around the goldfish bowl that they’re in is to figure out what your time value of money is. So whether you’re an accountant, whether you’re a neurosurgeon or your figure, you, there is a value in your life. The society places on your time that you do a certain job 10 bucks an hour, right? 100 bucks an hour, right? Right. And if you figure out, especially as an entrepreneur or as a small business owner, if you figure out what your time value of money is, then you can figure out, OK, so I’m worth $150 an hour for my consulting service or whatever it might be. So if that’s the case, then why would you ever do a job going forward that you could hire for less than $100 an hour? Why would you mow your own grass if you could spend that time getting $150 off time someplace else? That is still the same trap that I’m talking about. That time is equal to money, but at least it makes you aware of the matrix.
Dave Dubeau [00:04:14] Gates some of the lower value Typekit.
Paul Thompson [00:04:17] So you have time to think about the bigger activities that you want to do, what we want to do. And so you can’t separate yourself from that trap until you are at least aware of the trap. OK, now you’re aware of the trap. OK, so I’m more one for numbers. I’m worth 150 an hour. OK, so maybe I can design a business where I’m starting to do the $500 a hard task that I’m delegating everything else beyond that. Then that gives you to the place where, OK, now let’s think about money in a different way. Okay, so I’ve put this construct in place of what the value of my time is. So now let’s figure out how I can do something which kind of leads on to the next level of where I can multiply my time. So instead of exchanging an hour for a dollar or $100, how can I set number two? How can I switch from earning piles of money to streams of money? How can I make a decision to buy an asset that is making money for me while I sleep? And that’s the streams of money, and that’s the little dividend. That’s the best. The cash flow, that’s interest on the loan that you pay and then that you give to somebody else. That’s money that’s now working for you in a way that is not just your time. And that’s the real kind of matrix move where you’re dodging the bullets. OK, now I’m aware of The Matrix. Now I’ve got to figure out how to work inside The Matrix and to do so.
Dave Dubeau [00:05:37] That’s a good point, because I think, you know, the podcast here is definitely focused on real estate entrepreneurs while drunk the Kool-Aid to one degree or another. That passive income is where it’s out. So yeah, this is where it ties in very, very nicely.
Paul Thompson [00:05:52] Now they’re making this passive income is that term has gotten to the point where it doesn’t mean that much anymore. And so I like to use the concept of residual income. So you do something once and you get residual income. There’s only so many ways to do that. There’s rent, there’s interest, there’s intellectual property. There’s only so many ways you can do that. Going to a job and exchanging your time for money typically doesn’t offer you that that residual based on one hours of activity. You can also think of it as maybe just like streams of income, what can I do with something else besides my time that creates additional streams of income in the future? And it takes a lot of these, by the way, the challenge is if you make $100000 a year, it takes a lot of little streams of income to make up for that. If you’re doing rental properties, for example, you may need to buy 30, 40, 50 houses to make up for one job. But now you have assets that are earning you income versus just your time. Plus, there’s a hell of a lot more ways to make money off your property than just cash, right? That’s just the introduction, right? Is the cash. That’s what people get it first, right? The next step I like to think about when money is that people don’t catch on to. This is that value is subjective.
Paul Thompson [00:06:59] So you want to go out into the marketplace and create value and you think, you know, what about somebody else’s the value of something else? But it’s what people are willing to pay for. Something is subjective. It’s based on their situation, and the most common example that I’ve seen is the answers to so perfectly or kind of demonstrations so perfectly. Is this a livestreaming analogy? So Dave, what is your favorite flavor of ice cream?
Dave Dubeau [00:07:22] Tiger, tiger? Yeah.
Paul Thompson [00:07:25] Oh, it’s interesting. I have to ask about that later on. OK, so your favorite flavor of ice cream is tiger. Yeah. Is there a flavor of ice cream that you would simply not whatsoever? It’s a horrible thought to you that it’s a coconut ice cream, black licorice, black licorice ice cream. So what if you had three scoops of black licorice ice cream? And I had one scoop of tiger ice cream, and I would say I would be willing to trade you for that. And you get one scoop, but I get. Would you be willing to make that trade?
Dave Dubeau [00:07:51] Yeah, definitely.
Paul Thompson [00:07:52] Why would you be willing to give up three scoops of ice cream?
Dave Dubeau [00:07:55] Because there’s absolutely no value to me for that type of ice cream?
Paul Thompson [00:07:59] Yeah, it’s a very simple example. It’s very obvious. But in the marketplace? What is the value of a property? What is the value of somebody who has a problem and they need to get out of it? Value is subjective, so what you’re doing for is you’re looking in the marketplace for scenarios where there’s like inconsistency in values. So you’re looking for something at a discount that you can buy at a discount. And the reason they sell it for discount is because they don’t have the wherewithal or the interest in dealing with it. They need a quick solution. They need a quick solution, right? I mean, like most of us shop at big department stores, we know they’re making a profit on these, but they’re buying these things wholesale. Why are we not madding at them for buying these things wholesale instead of doing that retail?
Dave Dubeau [00:08:39] Because they’re taking why do we go buy stuff at a convenience store at gas? The charge is way more than even the department, right?
Paul Thompson [00:08:45] Right. Why do you buy a can of pop or coke for $2? When you know, you can go to, you know, down the street and buy a case for four, you know, 250, right? Because it’s convenient at the time, this is more important to me. Value subjective. That business is playing on the idea that value is subjective. They know people are willing to pay for me. So when you’re looking at being in the marketplace and getting out in the field and understanding business, that’s a very fundamental concept. And I think a lot of people kind of gloss over. They’re so used to being an employee and they’re just doing their job. They’re not thinking about their time, value of money. And when you know your time value of money and you realize, Oh, well, someone’s paying me 100 dollars an hour, or probably they’re paying you seventy five dollars an hour, but they’re charging their other client one hundred and fifty for your time. If you’re any have any inkling you entrepreneurship you, you realize that they’re making twice the money on me, and I’m working my tail off over here and is probably one of times actually is probably three times odd. La Times, it is three times. So now what could you do to be in the driver’s seat? That’s really the question that you’re talking about here is when you’re trying to achieve your own goals and what your goals are. Step number four here is that you don’t want more money. You want what money can do for you. Mm-Hmm. Right. So we started off this whole conversation of we’re reaching retrieving the American dream, which kind of spills over to the rest of the world is that you want to achieve and kind of get this level of wealth of accomplishment, right? But will you really be happy when you sign with that mountain top and you one day wake up and find yourself wealthy is wealth and they are actually the answer to happiness? I think we know intellectually that it’s not, but our behavior in what’s in the common popular media is the exact opposite of that. So remind yourself that you don’t actually want money. You don’t want to be Scrooge McDuck, you know, swimming in its power gold you want with that gold that money can do for you. Right? Figure out what you want personally. Figure out how to go. Be resourceful enough to acquire the assets in the money that you need to do. What’s important to you? Do something that matters you and your life.
Dave Dubeau [00:10:54] Kind of reminds me of what Tim Ferriss talks about the four hour work week writers. When you got to realize that for himself, it wasn’t about it wasn’t about owning a bunch of stuff, wasn’t about having a multi-million dollar bank account is about living the lifestyle that he wanted. And then he reversed engineered things so that he could do that and have a lot of these kind of passive streams of income.
Paul Thompson [00:11:19] Yeah, absolutely. But here’s a classic sense of he’s certainly still working, and there’s no way at all that he’s only working four hours a week so that people miss the point of that because of the title. That was just a marketing gimmick to get people’s attention right. But that worked brilliantly because the concept is, by the way, he did the market research and figured out what people value. They valued that the key word of four hour workweek, and then he did little bait and switch on them. It told him about the four hour work week concept, and he asked the question If you only had to work two hours a week, what would you do with that two hours, right? And then you kind of you kind of back into what’s important in your life. And it probably isn’t just sitting in an office or doing some sort of job for 40 hours a week. What can you do that’s value about you and interesting to you? And here’s kind of an ultimate are the ultimate point that I’m trying to make. Here is number five. You have plenty of money for all the things in the world that you truly want. If it’s important enough to you, you will find a way to be resourceful enough to acquire the funds and the money, the resources you need to accomplish your goals. If it’s important to you because we know what we focus on, we gross what we spend. Our time and attention on improves. And if it’s really important to you, you will then find the resources, raise the money it takes to acquire the property or acquire or to build a business or to build whatever it is important to property is a perfect example of this. I say all the time that. Blows people’s mind. I tell Make offers like crazy make offers makeovers, make offers, raise money and raise money. And how are you going to raise the money? You have to go acquire the property first? Well, how do you hire somebody you don’t have you when you get a purchase and sale agreement on a property and the asset that you found at a discount now will acquire the funds. So that’s how you go about being resourceful enough to attract to you the resources, the funds that accomplish your goals while actual. So solving their problem, it goes back to the value subjective. Why don’t they just buy the property? They don’t want to. They want to just put their asset to work. So as an entrepreneur, you’re going to go be the creative problem solver. Find somebody out in the marketplace that needs to sell the property. Now at a discount, you can buy at a discount using somebody else’s funds that you teach people how to raise. And then there you go. You have a business.
Dave Dubeau [00:13:43] Nice. Nice, nice. Nice.
Paul Thompson [00:13:45] So there you using money as a resource. I like that. I like the concept of love your five points there. Thank you very much for sharing that ball. Now we’re thinking about doing a presentation. Having you do a presentation to our folks about finding good deals, because that’s something that you become very, very good at. You did those 20 deals in 18 months, right? I’m working full time. I think you’re doing an average of two or three deals a month now that you’re full time into real estate investing. You definitely have finding motivated sellers are finding good properties at a discount.
Dave Dubeau [00:14:23] Doubt, darling. So tell us a little bit about what you’re thinking about talking about in this.
Paul Thompson [00:14:29] Yeah, I’m really looking excited. I’m really looking forward to it. I’m very excited about the opportunity to share with your audience how the psychology that it takes to understand what a seller is and why they would still have discount value subjective and then actually talking about the techniques. We didn’t have time for it here. We like to get on a presentation where I’m just live sharing with you how exactly I go about analyzing the market, finding your niche and basically making offers to help people. We’re not making offers to build our business right. This is a let’s go find people that need help and make offers to help. Love it. Love it.
Dave Dubeau [00:15:13] Love it. All right. We’ll get that dialed in and we’ll have that in the show notes with this episode. So looking forward to that, Paul, and if people want to find out more about you and what you’re up to, what should they do?
Paul Thompson [00:15:23] The best place to go and find me is on my freedom foundry, JD.com. That’s the community I run. People who are looking to elevate to their life create personal and financial freedom, typically using real estate. But there are a lot of people involved in there that are kind of real estate adjacent and have a real estate business that’s somehow related to real estate. And it’s my personal passion now to meet and find the most interesting people in the world and help them transform their lives.
Dave Dubeau [00:15:54] Awesome. There we go. Some my freedom boundary. Com That’s how you can find out more about Paul Thompson and get connected and get rolling with it. All right, thank you so much. Paul has been a lot of fun. I really appreciate it. Thanks. Alright. Alright, take care. We’ll talk to you on the next episode. Well, hey there. Thanks for tuning into the property Profits podcast if you like this episode. That’s great. Please go ahead and subscribe on iTunes. Give us a good review. That’d be awesome. I appreciate that. And if you’re looking to attract investors and raise capital for your nails? Let me invite you to get a complimentary copy of my newest book right back there. There it is the money partner formula. You got a PDF version, an investor attraction book dot com again. Investor attraction, book dot com. Take care.