Time Freedom, Location Freedom, Financial Freedom w/Divya Smith
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Episode Description
Welcome to the Freedom Point Real Estate podcast! Jeremy Dyer welcomes today's guest Divya Smith to share her thoughts on what financial freedom actually looks like, finding the right balance between wall street investments and main street investments, evaluating and managing a team, pursuing opportunities with a focus on family, and more.
Divya is a technology executive who turned to real estate investing for broader impact and purpose. Her goal is to help busy professionals build a passive income stream through real estate that allows them to achieve financial freedom and focus on what matters to them most. Since starting Ascending Avenue Investments, Divya and her investors have invested in multiple deals in Arizona and Texas, resulting in a portfolio size of 1073 units with a total of $144M AUM. Divya has an extensive corporate background and has worked in multiple Fortune 100 companies in executive leadership roles. She brings the same rigor, strategic mindset, and execution abilities that helped her succeed in the corporate world into real estate. She currently resides in Dallas, Texas, with her husband, Aaron, and their two boys, aged 12 and 9.
CONNECT WITH DIVYA SMITH
Website: https://ascendingavenue.com/
LinkedIn: https://www.linkedin.com/in/divyasmith/
Instagram: https://www.instagram.com/investwithdivya/
Youtube: https://www.youtube.com/@InvestwithDivya
CONNECT WITH JEREMY DYER!
Website: https://startingpointcapital.com/
Instagram: https://www.instagram.com/startingpointcapital/
LinkedIn: https://www.linkedin.com/in/jeremydyer
Facebook: https://www.facebook.com/startingpointcapital
Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12
Summary
Tip #1: Start Learning the Basics Early
"We have to learn some of the basic terminology...we need to be on training about our own finances."
Smith stresses the importance of financial literacy, urging listeners to take the time to learn investment jargon, attend conferences, and read up on key concepts. Investing in your education, especially with terms related to real estate, sets a strong foundation for making informed decisions.
Tip #2: Evaluate Your Team's Experience
"I always ask the sponsors if they have worked with someone and how it went...ask them about a time things didn’t go well."
Smith highlights the importance of vetting your team. Asking potential partners not only about their successes but also their failures helps ensure that they have the resilience and experience to handle challenges. This critical evaluation process can save you from costly mistakes down the road.
Tip #3: Cash Flow is King
"I want that [investment] to cash flow day one...even if the sponsor doesn’t implement their business plan."
Passive income starts with positive cash flow. Smith explains that she looks for properties that generate income immediately, even if no improvements are made. This ensures financial stability from the outset and reduces dependence on long-term projections.
Tip #4: Be Wary of Occupancy Rates When Buying
"At the end, when sellers are trying to get it on the market, they fill it up with maybe not-so-good renters."
She advises caution when buying properties, particularly when sellers have artificially inflated occupancy rates to hit the 90% threshold required for sale. Look deeper into tenant quality and retention, as poor tenants can lead to problems once the property changes hands.
Tip #5: Focus on Property Management
"The role of property management is still number one...they are managing million-dollar properties."
Smith emphasizes that skilled property management is crucial for the success of multifamily investments. A competent property manager can make or break an investment, and relying on underqualified personnel to manage large assets can lead to significant losses.
Tip #6: Location Matters
"I'm very bullish about the DFW market...it’s backed by numbers."
Location is one of the key factors in successful real estate investing. Smith recommends focusing on regions with strong job growth, rising wages, and favorable demographics. Investing in a high-demand area helps ensure long-term property appreciation and tenant retention.
Tip #7: Balance Family and Work Priorities
"I could control when I was working on it, and that was a game changer for me."
Smith highlights the flexibility that real estate investing has brought to her personal life, allowing her to spend time with her children while still running a successful business. Finding ways to structure your work around family time can enhance both your personal and professional life.
Tip #8: Don't Be Paralyzed by Fear
"The hard part is we get stuck in analysis paralysis...we need to keep moving forward and taking action."
Smith encourages listeners to avoid getting bogged down by fear or indecision. Real estate, like any investment, comes with risks, but waiting too long to act could mean missing valuable opportunities. Learning to balance caution with decisive action is essential.
Tip #9: Long-Term Planning Yields Results
"It took me four years to get to a point where I could take a summer off with my kids."
Smith underscores the value of long-term planning, pointing out that achieving financial independence and freedom takes time and effort. Setting realistic goals and sticking to them can lead to both financial success and a more fulfilling personal life.
Tip #10: Prioritize Safety in Investments
"For me, safety is really big...when people feel safe, they bring in the right kind of people."
Smith prioritizes safety in her real estate investments, choosing properties in safer neighborhoods to foster community and tenant retention. Creating a secure environment not only attracts better tenants but also improves long-term property value.
