How Time is More Valuable than Money and How To Use it to Negotiate with Dr. Gurpreet Padda

“The thing that people forget about is time, that's that flows in continuity, and it goes only one direction, I can make money and I can lose money, I can gain it and lose it. I can come up with a creative way to do more or do less, I can gain real estate and I can lose real estate. What I can't gain is time. And so time is the most critical element that we have.”

Dr. Gurpreet Padda is a physician by trade, but he's had real estate in his bones in his blood since the young age of 14, he's gonna share that part of his story. And he wants to he's in it. He's on a mission to help create and preserve wealth for himself and his family, his partners, and also help people to understand real estate as a whole.

Click on the video below:

Brett:

I'm excited about our next guest. He's a physician by trade, but he's had real estate in his bones in his blood since the young age of 14, he's gonna share that part of his story. And he wants to he's in it. He's on a mission to help create and preserve wealth for himself and his family, his partners, and also help people to understand real estate as a whole. And so please welcome to the show with me, your free product. Gurpreet, how are you doing?

Gurpreet:

I'm doing great, thank you for hosting me.

Brett:

Excellent. And also Gurpreet has his quick background story. He has over 2 million square feet of ownership management of commercial space as well as hundreds of hundreds of multifamily properties, units, multifamily units properties, and so Gurpreet gives us a little bit more about your backstory, and your current focus.

Gurpreet:

I started in the construction world, when I was about age 14, I started mowing grasses and cutting people's lawns. And then I quickly realized that they needed more services and a grass cut, they needed their gutters fixed, they needed patches on the roof. And eventually, at the age of 14, I realized that I could hire people to work with me. So I started hiring construction crews, one or two people at a time. And they were much older than I was, I was 14, and they were in their 20s and 30s, I was able to get them to do the work. And then I figured out that I could make money on the Delta, between what I was charging for their labor, and what I was getting paid. So by the time I was 14, 15, 16, I had crews of between two to five people at any given time, and I was going to high school. And I couldn't drive yet. So my construction crews would have to drop me off at school in the morning, and then pick me up in the afternoon and their pickup truck. And I would be calling them on the phone during the daytime from the cell phone from the payphone in the cafeteria to see what they were doing. So it gave me the experience to figure out how to remotely manage and how to leverage my time upfront and understand even at that young age, what it was to make a profit and how to deal with your profit. And I eventually figured out that I had to pay taxes. And that was a rude awakening. For me. I didn't realize that taxes were such a big component of what I was going to have to do. Eventually, I went to medical school, and I went to a six-year program in Kansas City. So I went through an accelerated program. I have a horrendous ad. So I typically will look at 16 shiny objects and four squirrels at the same time and try to figure it out. I went through general surgery, anesthesia, interventional pain, and then addictions onboarded in three things, and have you know, I've enjoyed that. All the while though, I've enjoyed commercial real estate. And I've been trying to educate myself about commercial real estate. And I concluded that it's two different worlds. Real estate is the physical object of real estate. It's the building. It's the components of the building. It's all of those things that go in the cleaning of it, the renting of it, the positioning of it, the branding of it, all of those things of the building. And that's important. If you don't do that, well you lose money. But just as important is how to do your acquisition and dispose of and look at the lifeblood of that building. The lifeblood out of the building is the capital that flows into it and out of it, you could lose if you did a construction project, and you thought it was gonna be $100,000. And at the end of the day, somebody you're getting ready to pay $100,000 at but they hand you an extra bill for an extra $80,000. You go, oh, my God, that's too expensive. Well, all the time, in the lifeblood of what we deal with, we make $100,000 a profit. And then the federal government takes away 80,000 or 40,000 or 50,000. And so I figured out that those taxes are a very significant impediment. That's not new news to anybody that's in this business. But the thing is, how do you avoid it? And how do you align your behavior with the behavior that the government wants you to pursue? Because taxes are an incentive, they're an incentive for you to do the things that the government cannot do efficiently. They want you to produce for them, the thing that they can't do. It gives you an example, in San Francisco, they tried to build housing. And they tried to build low-income housing, and the cost of low-income housing done by the state and the federal government was between 250,000 to $400,000, a unit. And we both know, we all know that that's a ridiculously high amount of money to spend for subsidized housing. And you would never make sense of that. And so, you know, in effect, it's much less expensive to have the private sector do this, and incentivize them to do it. And so once you realize that there are incentives, and these are capital creation incentives, then you have to navigate How do you best align yourself. And so that that's kind of my long and short story of how I got to where I did.

Brett:

Well, it's a great story. And I love how you connect the medical world and the body and anatomy with the real estate world. And to make sure I captured it well, and an audience maybe heard it as well. Like the structure, the physical object of real estate, let's say, the multifamily building, the roof, the AC units, the ground, and all of that is the first part. But the lifeblood that's going to feed this body, if you will, is the capital that's flowing in and out, whether it be income and expenses, whether it be refinancing it, whether it be buying it, disposing of it, and at any point, you can get a leak, and if that leak is flowing out, right? There goes your entire investment, it'll die, or likewise, if you can keep it flowing well, and in and out, making sense of that keeping the blood intact. Is that a fair summary that you're going to do in the investment?

Listen to the full Podcast Episode Here:

?CLICK HERE TO LISTEN