In this exclusive interview, we delve into the multifaceted world of Stan Ginzburg, a New Orleans resident balancing a career on an offshore rig and a thriving property investment portfolio. His journey, articulated in a candid conversation with me, Elisa Cool Murphy, reveals the depths of smart investing and life's balancing act.
Q&A:
Elisa Cool Murphy: Stan, your offshore work and property investments are quite a unique combination. Can you tell us about your offshore routine?
Stan Ginzburg: "Certainly. I work on the Deepwater Asgard, about an hour's helicopter flight from shore. We're stationed over deep waters, around 4,000 to 6,000 feet. It's a demanding 21-days on and off schedule, giving me a unique time management perspective."
Elisa Cool Murphy: Fascinating. And how does this schedule influence your investment strategies?
Stan Ginzburg: "It's about maximizing the value of my time. The offshore job provides financial stability, but real estate investment offers a path to long-term wealth. I started investing around the pandemic's onset, anticipating the inflation spike. I secured 10 rental units, essentially riding the wave of inflation."
Elisa Cool Murphy: That's a super proactive approach. What drove you towards property investment?
Stan Ginzburg: "I've always been keen on investing, but I like that real estate was the most tangible. The key was shifting from a mindset of trading time for money to trading money and assets for more money. Books like Robert Kiyosaki's 'Rich Dad Poor Dad' and resources from BiggerPockets were instrumental in this shift."
Elisa Cool Murphy: Aha! Before we start talking shop, please clear up two terms our clients often struggle with. Could you explain the concepts of appreciation and equity to our readers?
Stan Ginzburg: "Of course. Appreciation refers to the increase in a property's value over time. It's the difference between what you bought it for and what it's worth now.
Equity is the difference between that market value and what you owe on your mortgage. Both are crucial for understanding the true benefits of property investment."
Elisa Cool Murphy: We've talked margins; now let's talk risk...
Stan Ginzburg: "Real estate is certainly not without its risks. Market fluctuations, tenant issues, and maintenance – are all factors one must be comfortable with. It's not just about financial gain; it's also about quality of life and managing these risks effectively."
Elisa Cool Murphy: Great, now that that's out of the way, let's start at the beginning. How or where did you start?
Stan Ginzburg: "My journey began with a single-family home near Lafayette. Only later did I realize the potential in multi-family properties. My focus now is on small residential multi-families, which offer better cash flow and risk distribution than single-family homes."
Elisa Cool Murphy: And your thoughts on investing in New Orleans?
Stan Ginzburg: "New Orleans is great for investing. Yes, the insurance costs are notably high, but it has more multi-family properties than just about anywhere else, making it ideal for strategies like house hacking. It's a market that balances cash flow and appreciation well."
Elisa Cool Murphy: Stan, you mentioned 'house hacking' as a key strategy. Can you elaborate on that?
Stan Ginzburg: "Certainly. House hacking is a concept where you buy a multi-unit property, live in one unit, and rent out the others. This approach not only helps in building equity but also offsets your mortgage costs. I wish I had known about this fresh out of college. It's an effective way to start in real estate with limited resources."
Elisa Cool Murphy: How does this approach fit into different life phases?
Stan Ginzburg: "In your 20s, it's easier to adapt to the house hacking lifestyle. For instance, buying a single-family home and renting out rooms can practically eliminate your living expenses. You can then 'upgrade' into a multi-family home.
As you move into your 30s or have a family, privacy becomes more important for most people. In this phase, investing in a multi-family property while maintaining a separate living suits most people, but not everyone. Think about it this way: if you lived in New York or Chicago, you'd share walls with neighbors next door; it's not that much different."
Elisa Cool Murphy: There's plenty we wish we knew in our 20s, what do you wish you knew in your early investment days?
Stan Ginzburg: "I wish I had a deeper understanding of market trends and real estate cycles. Also, the importance of a supportive network like realtors, contractors, and fellow investors is something I underestimated.
These connections can be invaluable, especially when starting out. Having an amazing realtor like yourself also makes the whole process easier and enjoyable."
Elisa Cool Murphy: I understand that completely. At Cool Murphy Real Estate, we have a saying, "informed clients are happy clients." Stan, you've spoken highly about the value of education in property investment. What's been valuable for you?
Stan Ginzburg: "Education is the cornerstone of any successful investment strategy. When I started, I immersed myself in books and online resources. Forums like BiggerPockets and authors like Brandon Turner gave me a solid foundation. You've got to want to learn and continue learning."
Elisa Cool Murphy: And what about the role of networking and community?
Stan Ginzburg: "Networking is invaluable. Being part of groups like the New Orleans Real Estate Investors Association has been immensely beneficial. And now I get to give back to that community, too."
Elisa Cool Murphy: How important is the role of a realtor in your investment decisions?
Stan Ginzburg: "A realtor is more than just a middleman; they're a crucial part of your investment team. A good realtor, especially one attuned to investment properties, can guide you to opportunities that align with your goals and help you understand the market dynamics. They save you time and help you avoid pitfalls."
Elisa Cool Murphy: Agreed. When you're solid on what you want and can articulate it, we can bring it to you. When you can't, we can help you work through it. It's all about being open to support. Can you talk about the support system and its role in your journey?
Stan Ginzburg: "Having a strong support system is key. My wife, for instance, has been instrumental in managing our properties. It's about having people who share your vision and are willing to work towards common goals. Also, mentors or experienced investors can offer guidance and help navigate challenges."
Elisa Cool Murphy: What would you advise someone starting in property investment regarding education and networking?
Stan Ginzburg: "Start by accumulating knowledge through books and forums. Then, actively seek out communities and networking events. Real estate investing is not just about properties; it's about people. Building a network of knowledgeable, supportive professionals and peers can make all the difference."
Elisa Cool Murphy: Stan, you're being modest. You should have mentioned that you don't just share; you've actually written books on property investment. They include "What You Didn't Know About Real Estate Deals," and "So You Want To Buy A House?: Introductory Guide to Buying a Home." Can you tell us more about them and your motivation for writing?
Stan Ginzburg: "Certainly. I've authored two books, available on Amazon. They're concise guides, each taking about an hour to read. I aimed to distill what I've learned and experienced into accessible, practical advice. The books cover the basics of property investment, from finding and financing properties to managing them effectively."
Elisa Cool Murphy: What inspired you to become an author in this field?
Stan Ginzburg: "After experiencing the benefits of real estate investment firsthand, I felt compelled to share my knowledge. It's my way of giving back. I believe once you reach a certain level of success, it's almost a duty to help lift others. These books are my attempt to do just that."
Elisa Cool Murphy:
There you have it, folks; Stan Ginzburg's emphasis on education, networking, and community-led them to a successful portfolio of properties in a relatively short amount of time. It's all about thinking (and living) differently in the short term to gain a lot more. Thanks so much for making the time today, Stan.
Stan Ginzburg: You too, Elisa, it's my pleasure."
Voted Neighborhood Favorite by Nextdoor, Team Cool Murphy is a top-producing, licensed real estate team based in New Orleans, brokered by Cool Murphy, LLC.
Celebrated for her next-level creative approach to real estate, Elisa Cool Murphy is an award-winning, top-performing agent in New Orleans and the founder and leader of Cool Murphy, LLC.
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