#197 Is It Too Late To Get Started in Real Estate? ft. Dr. Peter Kim

Too Late to Get Started in Real Estate? 

Peter starts by discussing the question of whether it’s too late to start investing in real estate, addressing concerns from the perspective of both younger and older individuals. 

He emphasizes that it’s never too late to start learning and even highlights the potential advantages of investing later in life, such as having more stability, financial security, and access to a network for learning and support. It also suggests that starting later in life can provide a better understanding of risk and the ability to be aggressive when necessary, particularly for those with a solid financial foundation.

“I found that physicians who start a little later in life and have this firm foundation already built, that they know how to see risk in the right way, and then be aggressive when necessary.” — Peter Kim, MD.

The Challenge is to Get Past the Initial Hurdle

Dr. Kim continues by stressing that the real challenge lies in getting past the initial hurdle.

He mentions that to overcome the initial fear when starting, it is very important to educate oneself and learn from others’ experiences. Peter encourages taking courses, reading books, attending conferences, and surrounding oneself with a community of people learning about real estate investment to gain insights from both successes and failures.

Peter also stresses for everyone to think about what happens when they don’t invest in real estate. He highlights the need to contemplate future career paths, market changes, and the impact of evolving regulations on one’s financial well-being. 

“Hear as many stories as you can from people who have invested their successes, their failures, learn from all of it”  — Peter Kim, MD.

Envisioning the Reality of Retirement

Dr. Peter reflects on his early career and the difficulty of visualizing and planning for retirement. 

Emphasizing the need to prepare for retirement or ensure future financial security, Peter shares how he gained insight into retirement from helping his father navigate it due to health concerns. This unexpected experience led him to have an adjusted perspective on financial planning and rethink his strategy for the future.

Peter also highlights the better understanding of retirement among those closer to it, serving as a reminder of the levels of reality we need to face with age.

“I remember early on in my career, I started thinking about retirement 30 years ahead, it’s hard to visualize, it’s hard to even get excited about it.” — Peter Kim, MD.

About the Great Recession of 2008 

Dr. Peter addresses the concern of people who feel they missed out on investment opportunities due to the significant asset price increases from the Great Recession of 2008 all the way to 2021.

He highlights that the current market shift, particularly in commercial real estate, where prices are resetting and coming down, is leading to fear and distress. Despite that, however, Peter suggests that this situation presents a new opportunity for investors to enter the market and benefit from distressed deals. 

Dr. Kim also emphasizes that despite the media’s negative coverage, it’s a good time to consider getting involved in investments and wait until the next opportunity presents itself.

“For those of you who’ve been waiting on the sidelines thinking you missed it, you’ve got another great opportunity in front of you. I can’t tell you where the exact bottom is but we’re close to it.” — Peter Kim, MD.

When the Greatest Transfer of Wealth Happens

Peter concludes by highlighting that in times of economic downturns, the greatest transfer of wealth happens, with some losing while others stand to gain. 

With this in mind, Dr. Peter emphasizes the importance of educating oneself, networking, and preparing for upcoming opportunities to be able to stand among those who have gained during downturns. He advises setting oneself up financially and mentally to take advantage of future deals, highlighting the significance of due diligence and goal setting. 

Additionally, he emphasizes that it’s never too late to begin, it’s possible to make money at any stage in the economic cycle, and that there is certainly optimism in the future.

“Learn how to do the proper due diligence, learn how to talk to sponsors, learn how to vet opportunities, it’s not too late, no matter what stage of the game you’re at.”  —  Peter Kim, MD.