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Listen "E02: Pasha’s Story: How The Game of Poker Shaped How He Invests"
Episode Synopsis
Every investor invests for a couple of different reasons, and we all invest in very different ways. A lot of that has to do with where we come from, how we think about risk, what our goals are, and our values. The more you can understand that about an investor, the better you can understand their investment thesis, and how they think about making money.
On today’s episode, Pasha Esfandiary opens up about his life and how his experiences have helped shape his life now, in one way or another. He shares what it was like growing up and how he went from being a college dropout to a successful real estate investor, creating a niche within a niche. He also talks about the parallels between poker and real estate investing, and how his poker skills have influenced the way he invests and makes decisions.
Here are some power takeaways from today’s conversation:
Pasha’s family background and what it was like growing up
Dropping out of college and playing poker
His first investment deal
Moving from $50,000 deals to larger assets
Moving from Las Vegas to Los Angeles
Commercial real estate vs. residential real estate
The similarities between poker and real estate investing
Pasha’s self-care practices
The two biggest things wealth has brought to him
Episode Highlights:
[29:29] Moving From Smaller to Larger Deals
Pasha leveled up after a few years of investing. He kept recycling all his money back into more and more deals. He was buying homes around the $100k-$125k range and selling them for the $150k-$200 range. He was putting in $10k-$15k for rehabs.
Back in Las Vegas, Pasha was doing multiple projects at a time and the bigger people started to get to know him. But when he came to Los Angeles, he was like a small fish in a massive ocean. He then decided to put all his money into the Eagle Rock Highland Park area and buy cheap land. And that’s when everything took off. Those projects leveled him up to being where he is right now.
[33:31] Finding His Niche Within a Niche
Pasha found a niche within mobile home parks, particularly targeting secondary and tertiary markets consisting of mom-and-pop sellers. He’s able to build a ton of equity with his strike price usually around $3 to $7 million. He is underneath institutional money and above most mom-and-pop buyers. Due to the low-income housing crisis in America, the risks are mitigated and the demand for it has gone through the roof.
[36:08] Commercial Real Estate vs. Residential Real Estate
In commercial real estate, you can build up a lot of equity because you're in control; unlike in residential real estate, where you have to succumb to what your neighbors are doing and selling for. And so, if you know what you're doing in the commercial space, you will get your money back within three to five years, or maybe even less. Plus, it’s tax-free so you have more capacity to buy another asset. It’s a snowball effect where you’re keeping the asset while still producing cash flows.
[41:10] Lessons From Playing Poker That Shaped How He Invests
Pasha’s poker background helped shape his investment thesis. One of the lessons he learned is that you’ve got to make the right decision over and over and over again, regardless of short-term results. Second, break things down mathematically in your head.
On today’s episode, Pasha Esfandiary opens up about his life and how his experiences have helped shape his life now, in one way or another. He shares what it was like growing up and how he went from being a college dropout to a successful real estate investor, creating a niche within a niche. He also talks about the parallels between poker and real estate investing, and how his poker skills have influenced the way he invests and makes decisions.
Here are some power takeaways from today’s conversation:
Pasha’s family background and what it was like growing up
Dropping out of college and playing poker
His first investment deal
Moving from $50,000 deals to larger assets
Moving from Las Vegas to Los Angeles
Commercial real estate vs. residential real estate
The similarities between poker and real estate investing
Pasha’s self-care practices
The two biggest things wealth has brought to him
Episode Highlights:
[29:29] Moving From Smaller to Larger Deals
Pasha leveled up after a few years of investing. He kept recycling all his money back into more and more deals. He was buying homes around the $100k-$125k range and selling them for the $150k-$200 range. He was putting in $10k-$15k for rehabs.
Back in Las Vegas, Pasha was doing multiple projects at a time and the bigger people started to get to know him. But when he came to Los Angeles, he was like a small fish in a massive ocean. He then decided to put all his money into the Eagle Rock Highland Park area and buy cheap land. And that’s when everything took off. Those projects leveled him up to being where he is right now.
[33:31] Finding His Niche Within a Niche
Pasha found a niche within mobile home parks, particularly targeting secondary and tertiary markets consisting of mom-and-pop sellers. He’s able to build a ton of equity with his strike price usually around $3 to $7 million. He is underneath institutional money and above most mom-and-pop buyers. Due to the low-income housing crisis in America, the risks are mitigated and the demand for it has gone through the roof.
[36:08] Commercial Real Estate vs. Residential Real Estate
In commercial real estate, you can build up a lot of equity because you're in control; unlike in residential real estate, where you have to succumb to what your neighbors are doing and selling for. And so, if you know what you're doing in the commercial space, you will get your money back within three to five years, or maybe even less. Plus, it’s tax-free so you have more capacity to buy another asset. It’s a snowball effect where you’re keeping the asset while still producing cash flows.
[41:10] Lessons From Playing Poker That Shaped How He Invests
Pasha’s poker background helped shape his investment thesis. One of the lessons he learned is that you’ve got to make the right decision over and over and over again, regardless of short-term results. Second, break things down mathematically in your head.
In God we trust