Nina Smith	The Week of October 9th, 2005

Self Starter

1. What’s in your wallet right now?

Forty dollars, a few coins and the following cards: 1 Citibank MasterCard, 1 debit card, frequent flyer card (AAdvantage Platinum), 24 Hour Fitness member card, AAA card, Smart & Final savings card, health insurance card, DMV organ donor card, Quiznos frequent diner card (love those subs!).

2. What do you wish your parents taught you about money?

I wish my parents had been able to show me that striking a balance between saving and spending is the best way to live comfortably within one’s means. Their inability to achieve this for themselves – my mother thought my father didn’t earn enough money, my father thought my mother spent too much money – resulted in a lot of tension in the house when I was growing up. I guess they still taught the lesson, albeit indirectly.

3. What is your worst habit around finances?

I have a pretty good grip on my finances. I like to splurge at times, but I tend to do so in ways I can afford. Maybe we should talk about eating habits, lots of issues there.

4. What makes you happy?

Being productive. I get restless if I am not doing something.

5. Personal philosophy around money?

The 1950s came and went. A man is not a financial plan.

6. Where does money come from?

Usually hard work, to start. That’s not to say everyone who works hard will make a lot of money. Good planning is key, as is good timing and a little bit of luck. For me personally, I really like the idea of earning passive income from rental properties. This requires some money up front (work hard, earn), good planning (save, study the market), and good timing (invest in properties with high potential to increase in value). My goal is to own 10 rental properties that produce positive cash flow.

7. What would you do with a million dollars?

Of course, I would buy more real estate with some of it. But I also hope that I would do something honorable like start a foundation. Maybe one that helped house people in need.

8. What is your most prized possession?

Originally from Ohio, I have lived in a variety of places such as Chicago, Connecticut and Atlanta because of job opportunities. The many moves made me a minimalist. Therefore, I do not get too attached to possessions. If I had to pick something of value, I would say that I love the home in Newport Beach that I share with my partner, Jeanine. But it is more about what the home represents than the actual house or the things we’ve put in it. Thoreau summed it up when he said; “I had three chairs in my house; one for solitude, two for friendship, three for society.”

9. Who is your role model?

These have usually been managers throughout my career that have filled the mentor role… Susan, Holly, Margy, Tim and Tamara to name a few. They each taught me, by example, that hard work pays off and that I should not let my job define me. In other words, work hard, but be balanced and interesting.

10. What is your greatest achievement?

Self sufficiency.

11. How did you get started in real estate investing?

I wanted a plan to get out of the rat race. I was always striving for a pay raise, a year-end bonus or wishing that my commission accelerator kicked in by the second quarter. But no matter how much money I made in my job, it never seemed to be “enough” money. I read the book “Rich Dad Poor Dad” and it changed my perspective on money. It taught me to buy assets with my disposable income. I put an end to the $3,000 vacations (liability), no more $600/month car-lease payment (liability), and I got a lot more conservative with the affordable luxuries (saying no to the $3 lattes… liability). Instead, I saved my money and started buying assets. Specifically, houses.

12. What contributions to society do you want to make?

The Shakers seemed to get it right in their functional practicalities. I wish to be similar in my everyday life. “Don’t make something unless it is both necessary and useful; but if it is both necessary and useful, don’t hesitate to make it beautiful.” – By Shaker Hands, University Press of New England.

13. If you could buy one thing right now what would it be?

I would buy and live in an Eichler or some other architecturally significant residence. Also, if we were talking sheer “wants” then I would buy an E350 black Mercedes-Benz. I know, it’s a bit shallow and goes against the asset proselytizing (cars need to be paid for and even then are depreciating). Somehow the pre-owned Volvo (circa 2000 with title tucked away in file folder) just doesn’t create the same stir at the valet stand.

14. Favorite activity that doesn’t cost a dime?

I like to attend open houses… it’s always fun to look. I also really enjoy a bike ride on a nice day. Just being able to get outside and use my body makes me feel rich no matter what I’ve got in my wallet.

15. How do you indulge yourself?

This usually revolves around food. Refer back to question #3.

By day, Nina Smith sells mobile infrastructure software, but her real estate investments have grown to become a significant part of her financial plan and also a great passion. At the age of thirty, she was still struggling to make ends meet—working night shifts, cleaning houses, and catering when she could. Since then, in the last eight years, she has owned and lived in four homes (three of which she upgraded and sold for tidy profits, one she occupies now). She also owns four investment properties. She enjoys sharing her views on how to achieve financial independence through real estate investing on her blog.

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