Lisa Colalillo is a real estate junkie. She’s got that extra sense for sniffing out the best deals for potential home owners and gives solid advice on home ownership. She is also the energetic and fun-loving co-host of HGTV’s Critical Listing – a show that helps homeowners choose projects that will make the most impact on buyers once the “for sale” sign goes up. Along with interior and exterior pros Jo Alcorn and Carson Arthur, the Critical Listing team help turn a homeowner’s small investment into added value.
In each episode, homeowners are in a bind – they’ve bought a new home, but are stuck with their current house, worth less than they had imagined. Lisa and her team of experts ensure these homeowners receive the asking price they need. With friendly rivalry the team gets the homeowners the most bang for their buck while working against tight timelines and budgets.
I discovered that Lisa also gives great advice for women on investing! I love her approach to balancing finances and living a happy life. It isn’t as daunting as it may appear! And she’s the real deal! I spotted this on her website that made me pay attention…
“I started out as a super independent career woman with only business on my mind. I had absolutely no time for fun, friends, family or myself because I was running the rat race like an Olympic athlete. I was losing my mojo, my love-life was messy, my ass-ets were growing because I wasn’t taking care of myself… and I was always freaking miserable.
That’s when I had enough. I pulled a u-turn and put the stiletto to the gas pedal towards some serious soul searching. It’s not my style to be a cool, hipster yogi master (the smell of incense makes me gag) but there had to be a place in this world where the ambitious and sassy could find balance.”
I had the opportunity to ask Lisa a few questions about investing!
You’ve talked about going on a cash diet and fattening up in a good way. What’s your secret to staying on this “diet”?
The Cash Diet is all about getting ‘back to cash’. Budgeting can be confusing and frustrating, the cash diet is simple which makes it easy to actually implement and use. The way it works is that each week you take out the cash component of your budget. Physically having the moolah in your wallet makes it easier to manage your cash because you physically watch it leave your wallet and see how much is left over. Being aware is the biggest element that is missing when swiping credit cards and debit cards…causing us to overspend. Using physical cash makes it super easy to stay on budget…it takes away the thinking.
When it comes to investing, why real estate?
Historically, real estate has been very profitable to its investors. I like real estate because there are multiple ways to profit from a property. There are 5 profit centres: 1) cashflow 2) earned appreciation 3) market appreciation 4) equity accumulation and leverage 5) tax benefits. More ways to profit means more money in your pocket, means a happy Lisa!
What are some key points we should consider when looking at real estate as an investment?
Cash is king! I encourage if you are a new investor to focus on increasing your cashflow as the foundation to wealth building. What I mean, is to buy real estate for the monthly profits you make off rental income. This strategy is all about making money when you buy [real estate]!
Once you’ve built-up a healthy monthly flow of extra income it becomes easier to tackle capital gains (this is when you buy in order to sell for a profit) investment strategy (i.e. reno and flip, buy new and flip). The reason being, by focusing on cashflow first you build a generous influx of extra monthly income which can be reinvested for further growth.
Women often are shy at investing…why is that?
I have no clue, but this is changing. Have you ever seen a mother manage kids in the morning: get them up, washed, dressed, fed and to school on time?? Women are amazing at staying organized, multi-tasking and patience…those are innate qualities that can make for a savvy investor. People shy away only because they don’t know how money works. If you look back at traditional education, no one ever taught you how to be smart with your money. That’s why I created my blog www.lisacolalillo.com to create a space where women can learn and talk about money. Once the doors have been opened, there’s no stopping them.
What surprises you about women and investing?
How much more interested women are becoming in money management and investing not only for their own interest but also to teach their kids.
We often follow our hearts when it comes falling in-love with something (or someone)… what’s your advice here?
The saying goes that love is blind…and that can be true in your relationships and in your real estate.
For example, falling in love with a gorgeous house in the wrong neighbourhood could be a disaster.
Here’s what I suggest:
Create a few guidelines or minimum standards for yourself that are very important to you..it could be price range, school district, requirement for a basement apartment. Whatever the criterion, let them be the red light, green light for your emotions. If the house meets your needs and you get butterflies…it’ll be a match made in heaven.
Great advice, thanks!
For more information about HGTV’s show Critical Listing visit www.hgtv.ca
Critical Listing airs Monday evenings at 9:00 pm EST.
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Thanks Sonya and Urban moms!