Building Wealth through Real Estate with Jazmin Salinas

Transcript:

Sofie: Hello everyone and welcome back to Claim Your Potential, the empowerment podcast. I’m your host Sofie and in this episode, we are joined by guest Jazmin Salinas to discuss building wealth through property ownership. Jazmin is a serial entrepreneur at heart and she founded her first startup and hired her first employee when she was fifteen. With a broad range of experience working with businesses of all sizes and multiple industries and expertise in customer service and sales, backed up by a couple of business degrees nationally and internationally, three plus years as an active investor, co-sponsor for eight hundred eighty plus units in twenty twenty two, and limited partner for one hundred and seventy plus units. Jazmin is also a powerful female immigrant, volume two co-author and the founder of Massive Capital Girls Society. Please welcome Jazmin Salinas, thank you so much for being with us today.

Jazmin Salinas: My pleasure. Thank you so much for having me.

Sofie: It is such an honor to have you on. I was reading through your bio ahead of time and now and all I can say is wow. Oh my goodness that is so much that you have accomplished, especially from an early age. And I love starting our episodes hearing a little bit about people’s journeys. And so with such a diverse set of expertise and experiences that you’ve had, what has your journey been throughout this process? How’d you get to where you are now?

Jazmin Salinas: Well, just as you say it’s definitely been a long journey and let me give you just a little bit background. So, I’m move here to United States ten years ago, um, pretty much I had to start from scratch. I didn’t speak the language, ah, you know, going through all the immigration process – so it was really difficult mentally probably I will say, leaving my family back there. So, I just started what I call at the time, you know, I was like it was very shocking but I was like if I wait until everything is great, I will never start. So little by little, I’ll start I went to college, I started my first job in the fast-food restaurant and little by little start climbing the ladder. I got myself in sales that later on that was the only way that it will open the doors that I wanted to unlock. One of the things that I realized is like – what kind of business doesn’t need sells for their business, right? So I was like whoa, I guess that’s what I’m going to do. So started doing sales for all kind of companies. I, um, started in sales and just little by a little saving money because I knew I wanted to open my own business, I just wasn’t sure what kind of business. So I was just saving money, saving money and at one point I had like forty-five thousand dollars on my bank account and I was like whoa you know this is too much, but it’s not too little especially when you see like YouTube or you hear a podcast people like turning ten thousand into a billion-dollar companies and all that. So it was kind of like frustrating, but at the same time I mean I was still not sure what kind of business to open and so I was like while I figure something out, I want to buy a piece of real estate. So I started exploring, you know, buying a house, a duplex, fourplex. Long story short, I was like okay that’s, you know, the easiest thing to me right now is just to buy a piece of land. So bought a piece of land and that was my first real estate transaction. Didn’t know much but I just like let me put my money here.

Sofie: Yeah, that is so cool and something that I always like to tell people is the beauty of trial and error, right? It’s that, you know, that time to figure out all right I don’t know what I want to do or how I want to do it or – or where I should start, let me just try these different things and see what happens. And it sounds like you trying these different things really paid off in spades with all of the success that you’ve had and more specifically, I’m thinking about your real estate and just how much you are doing with real estate. How much you’re a part of it. And I’m so curious, you know, in terms of real estate, I know that you had mentioned that was one of the first things that you had gotten involved in. How has that involvement in real estate really helped you build wealth and get that financial freedom?

Jazmin Salinas: Yeah, that’s a great question and that’s probably the only way for me in my personal opinion to create real wealth, you know? So as I was just buying this land, you know, I sold it because I find out later on when I get more educated about real estate that I didn’t get such a good deal. I paid higher than anybody else in the neighborhood. Flaw playing, long story shorts, sold it, made only five thousand dollars on profit and now was like I – I started doing that again over and over and again, just flipping land. So that’s what I’ve been doing for the last four years but one year ago I was like okay this is like a get rich quick but I’m not really building any wealth. Like um, it’s just like one transaction, you know, like you buy, sell, and that’s it so – I was looking for a long-term place. Something that I could create wealth for sure for the long term not just for me, but for my family. So I came across multifamily and everything made sense to me. I was like okay so you’re telling me that instead of owning one piece of land or one house, I can’t own the whole building. On the tax benefits, how quick you can scale, how easier is to manage a whole building than just managing like different houses so everything made sense to me. I just started – okay first of all I realized this is what I want to do that was probably the biggest, um, what made it the biggest difference in my career. Just having clear mind and this is what I want to do. Have clear goals and just go all in. I started connecting with people in the industry and got myself, you know, I had to unlock those doors for me in the multifamily space.

Sofie: Yeah, absolutely and you know you mentioned that for you, you identified you know, investing in real estate and being part of multifamily real estate. For you, you identified that as all right, that is the way that I can build wealth. That is almost the only way that I know I can build that long lasting wealth. And so I’m curious as to what are some of the key benefits perhaps beyond just that all right long term – long-term welfare but what are some key benefits of investing in those properties and how have you found that it contributes to that long-term financial growth?

Jazmin Salinas: Sure. That’s a great question. So one of the biggest benefits is a tax benefits. So for example, if you invest on stocks or any others like at the end of a year, you got to pay capital gains on how much you make. With multifamily real estate, you get a depreciation at the end of the year because we do a cost aggregation study that pretty much shows all the appreciation on the property. You know, like the h vacks, the appliances, all that the property has so the government has time in a way to give us back to all the investors so we’re able. So let’s say, you invest ten thousand at the end of the year. You’re able to write off up to six thousand on that investment so which is, you know, amazing. So many people and so many investors, that’s one of the reasons why we invested; that’s personally the reason that got me to invest in multifamily because I was – I was buying so much land at the end of the year. I had to pay capital gains. So with multifamily, I was able to write off a big chunk of money so that was, that’s one of the benefits. The other one is how quick you can scale. So instead of, you know, owning a home, you can own the whole building so you own one hundred ten homes. I mean at ten, ah, ten apartments. The risk is so much lower because let’s say you have a home, the tenant moves out, you’re not cash flowing anymore. You’re zero percent cash flowing but if you have a building that has one hundred ten people living there, you and ten people move out, you still move. You still cash flowing for one hundred people. So is, you know – the risk is way lower than having a home. Another benefit is, ah, it’s the hitch against inflation. You know, especially in today’s days you see we’re going through a recession. Your money has less value than ten years ago. However, when you put your money in this, in this kind of assets, your money is appreciating because the property itself is going up in value. Real estate, is going up in value. People are always going to need a place to live so those are what some of the benefits of investing in multifamily real estate and the most important thing is like how much my money is going to grow, right? Because you can tell me all this all that sounds great, but how is my money going to look like? So you know this is – I’m just going to give you like a high level of how your money will look. Every deal is different and for every investor is every investor is in different journeys so we sometimes advertise different properties but let’s say you invest one hundred thousand dollars, our goal is going to be to turn it in two hundred, fifteen, and two hundred fifty in five years, so your money grows double in five years. Also, during those five years, you’re gonna get cash flow. It’s just like when you have your money in the bank annually, you get points so zero, one percent. Here, you get annually anywhere from four percent to ten percent. So yeah, that’s – that’s really good investment, you know? Including all the tax benefits and everything that I mentioned before.

Sofie: Yeah, and that is something that I think a lot of us forget about is that appreciation of value is and this is something where people might disagree with me on this but this is just my opinion, so I’m hoping people don’t disagree with me on this but when I think about investing in the stock market, it is the most terrifying feeling for me because it feels so unpredictable. It’s so unpredictable. What’s going to happen with your money? I know that you can track, you know, stock performance and people do that but again, it’s so dependent on what’s going on in the market, what’s going on with the CEO, what’s going on with, you know, what the products they’re selling or if depending on what the stock is. Versus I feel like with real estate as you were saying, it’s going to appreciate and even if you’re going through a recession, it’s still something that’s going to hold its value and over time, it’s going to grow over time. It’s going to, you know, that it’s going to go up in value whereas I feel like with stocks, you know, people hold on to them for a while thinking they’re going to go up in value and sometimes, they don’t. And sometimes, they completely tank whereas at least with a home you know that nine times out of ten for the most part, it’s either going to hold its original value or go up.

Jazmin Salinas: Exactly, no that’s – that’s just correct. That’s personally the same reason why I didn’t invest in a stocks because as I told you like I’m self-made, like every penny that I have is because I have worked so hard. So was like I can’t afford to lose my money, like I don’t have a plan B, I don’t have anybody. You know? Like I’m not married, I don’t have a husband when I can go. It’s like okay, you know, all ah – all the money. So to me it was like I need to play save but I also need to grow my money because I don’t see myself working this hard the rest of my life. At one point I want to have financial freedom and just freedom to do or be what I want to be so the stocks to me is like I just, something that you can be, it can be tangible, to me, it’s very risky. At these buildings, I can go drive and talk to the tenants, ask them how for how long they have in there, and all that. Like I know it’s appropriate, I know I own a percentage of that building. Ah, something that you can do on the stocks and the other thing is like if you own a stock, if something goes out or, you know, you cannot never pick up the phone and call the CEO of Apple and say, “hey what happened. Where having got distributions. Or what is going, on like no”, you know? Like they are never going to listen to you or give you reports so on what’s happening compared to multifamily like, you know, the operators, you know? Before you invest, you got to get to build a relationship with operators. You need to draw some, ah, make sure that’s the right people that you want to invest with and have the confidence that if you have questions, if anything goes out, you can always call them, answer any questions. And you will be receiving monthly reports so that was just like you mentioned, that was to mean like the reason why I never got in real estate. I mean in stocks or crypto and all that. And I know there are some people just like so you say like there’s some people who do really good on socks and that’s great. I mean one of the things is like that if you’re really good at a stocks and all these crypto and everything that is going on, that’s good, but it’s important to diversify your portfolio and, you know, you can make some money there and start putting some on real estate, on real assets.

Sofie: Yes, that diversification and I love that you – you mentioned that there because diversification is so important and we don’t pay enough attention to it. It’s almost like if you find something that works, it’s all right, well why would I want to do anything else if I know that this works. Um, and I’ve heard that from people that are sole investors in stock, people that solely invest in real estate. I’ve heard it on all different sides where it’s oh I just want to put my money in this. And that diversification piece, I feel like is so important there. And so bringing that back to property ownership, thinking about diversification. how does diversification show up in real estate and property ownership and are there any best practices that people, especially young entrepreneurs, should keep in mind as they start that diversification and they start that investment in the real estate market?

Jazmin Salinas: Yes, ah, that’s super important because as I tell you one of the things, of course, everybody’s in different journey, when you’re younger you have more risk tolerance. But if you’re getting closer to return, you have less risk, right? One of the benefits, I mean and this is a shame on shame plug here, but one of the benefits of outflower companies that we have all kind of assets. You know? We are like the Whole Foods where you can go and you can pick. You can pick the property that best feature criteria because for example, with apartments, that’s very cash flowing properties like if you’re looking for a passive income. Maybe you can – I will say like recommend exploring the multifamily but if you have a high-income job or a really profitable business, you don’t really need the cash flow. However, you need that your money doubles or triples as quick as possible. So we also do triple net, um, construction. We we build shopping centers, retail spaces, so since it’s a new construction you don’t get cash flow. However, your money grows super quick in let’s say, in three years for example. In three years wonder we real in Austin, it’s only three years and your money grows one point seventy-two. So if you invest one hundred thousand in three years you have one hundred seventy thousand which is so quick and so good because in three years, Joe Rein invests and reinvest and that’s how your money grows and the world gets created. So it’s important to have all these kind of assets so if there is when you diversify your portfolio, you’re also mitigating the risk. So if anything goes out with apartments, you also have the triple net, you also have income for other properties so just like you know, probably you have sir here like don’t put all the eggs in one nest. Well in real estate, we have different, asset classes that can help you with that diversification.

Sofie: Exactly and you mentioned a piece there that around some of the challenges that can perhaps come with that diversification process and so I’m curious as to through your work in, you know, real estate investment property ownership, what have been, you know, the biggest challenges that you’ve had and how have you overcome them?

Jazmin Salinas: So first of all, you know there are two ways that you can get yourself in in investing in real estate, right? One is with your own money or the other one is with sweat equity. I, at the beginning, I put my own money. You know? Had to drink away. I wanted, I wanted to experience what it was but at the – at the same time like I didn’t have – I mean I don’t have deep, deep packets to be putting money over and over again. So jumping into, let me just put my sweat equity and it was very intimidating because first of all, I don’t have that skillset, you know? Buying multifamily real estate triple net is not the same thing as buying a piece of land or buying a home. It requires so much under riding data analysis, balance sheets. Of course, you know, the bank is not going to, ah, give you a loan on these properties unless so first of all, you have, you know, if anything goes out, you can respond and secondly that the property, you know, can maintain itself. It can cash flow pace a loan and everything to operate a property so it was very intimidating for me to to realize that, okay, if I wait until when I understand the whole piece, I can under ride, like I’m not a mad person or an engineer so that was, you know, that part of my brain – it’s not that good. So knowing that, knowing that I don’t have the network to buy this kind of assets was very challenging and the way I overcome it was like you know what, I’m gonna start what I can, with what I have. If I wait until I can be ready and understand everything about buying this kind of asset, it is going to take me one hundred thousand years, right? So I was like let me start with my sales background. You know? As you mentioned at the beginning my how to business degree, so let me just start you know porting systems, building a company, bringing people on board and that was the way that I was able to add a value to my business partners. Um, and that’s what unlock the doors for me. So that’s how how I overcome that.

Sofie: Yeah, and thank you so much for sharing that with me there and I’d love to connect everything that we’ve talked about today together. And so I’m curious as to what is one thing that our listeners should take away from this episode?

Jazmin Salinas: I will say go ahead and whatever your goal is either personal, professional, spiritual, whatever you dream, go ahead and try. You’re never gonna be ready. Nobody’s gonna come and knock on your door and give you an opportunity. If that’s something that you need, you want to do go ahead. Try, connect, just do it. Put yourself in different rooms, put yourself in rooms where people are doing ten times ahead whatever you want to do, whatever your goal is. Put yourself in rooms where people are doing it. That is gonna open the landscape for you and also inspire you and connect with the people who are already doing it.

Sofie: Yes, and I am smiling so much with that piece there because that is something that I feel like we always really try to push to our listeners is that don’t be afraid to do it. Don’t be afraid to, you know, stop waiting and if there’s something that you want to do whether it’s a project you want to start, a podcast that you want to start, you want to start investing, you want to, you know, build a business. You want to – whatever it may be, it’s that, you know, you got to just start it. Right? It’s taking that first step towards claiming your potential so to speak. So absolutely, I could not agree more with you there and definitely something that all of our listeners should continue to take away is that don’t be afraid to go out and do it. And for all of our listeners that would love to hear more of your wisdom and connect with you, where can they get in touch with you?

Jazmin Salinas: Sure. They can visit my web page, massive dot capital slash Jazmin and Jasmine spells J A Z M I N. I have an ebook, people can download it. I shared a little bit about my story and how I overcame all those challenges that we were talking so that’s the best way. I also hang out a lot on Instagram, that’s probably the social in social media where you can find me. On my Instagram is invest with Jazmin all spell out and Jazmin, J A Z M I N.

Sofie: This is wonderful. I want to say thank you again so much for coming on to the podcast Jazmin. For all of our listeners, go down to that episode description box. Check out Jazmin, go visit her page, go learn more about her. She is doing amazing things and is seriously paving the way for women when it comes to taking control of your finances and building wealth. So again, I want to say thank you so much for coming onto the podcast Jazmin. It’s been an absolute pleasure.

Jazmin Salinas: Thank you so much for having me, Sofie. This has been amazing and thank you so much for everything that you’re doing. I know you inspire so many women and I’m on the same mission to help women create wealth and help them grow on every single aspect. So, super excited to collaborate with you and we will be in touch. Thank you so much for having me.

Sofie: Wonderful. Thank you so much for coming on and thank you so much for that. I always love to hear that and yeah let’s keep fighting it together and keep empowering women.

Jazmin Salinas: Awesome! Thank you.