An Interview With Jason Hartman
Take a real estate course to understand how the valuation process works and pick one field in real estate to dig deep into. Is it land, home, commercial property, or what type of property? It is easier to be great in one specific field and much harder to focus on generalities, so pick one and dig deep to be great in that specific type of property.
As a part of my series about the ‘Five Things You Need To Know To Succeed In The Real Estate Industry’, I had the pleasure of interviewing Piseth Sim. Embarking on a journey into the real estate industry can be transformative, filled with stories of inspiration and valuable lessons. Piseth Sim, a seasoned professional in the field, shares his remarkable journey from a chance encounter with his grandfather in Sydney to becoming a prominent figure in Cambodia’s real estate landscape. In this exclusive interview, Sim unveils key insights, anecdotes, and his vision for the industry’s future.
Thank you so much for doing this with us! Can you tell us the “backstory” about what brought you to the Real Estate industry?
In 2014, during my vacation in Sydney, I had the opportunity to meet my grandfather, whom I had only heard about from my mother, for the first time. My wife and I spent a week in Sydney, and during this time, my grandfather gave me a tour of the city, particularly focusing on the real estate industry.
We visited various home-building sites and sale galleries, and his insights left a profound impact on me, prompting a notable change in my life. Upon returning to Cambodia, I decided to delve into the field of real estate. I enrolled in courses to learn about evaluating houses and utilizing comparable. As I immersed myself in the industry, I began building connections and friendships.
Motivated by my newfound passion, I conducted extensive research, comparing real estate trends over the last 10 to 20 years and analysing profitable opportunities for investors throughout the country. I travelled to different borders to assess conditions and identify land opportunities. After months of investigation, my team and I decided to invest in real estate, gradually acquiring land across the country. Over the course of a decade, our efforts bore fruit, and we successfully owned lands in more than 10 provinces, spanning a total of 25 provinces in Cambodia.
Can you share with our readers the most interesting or amusing story that has occurred to you in your career so far?Can you share the lesson or takeaway you took out of that story?
Approximately 7–8 years ago, my team and I made a strategic land investment situated within a 20km radius of Cambodia’s capital city, Phnom Penh. This particular investment involved a cash purchase with an initial cost of approximately USD 50,000. Over the years, the value of the land has In appreciated significantly, and upon selling, we realized a substantial profit, with the final transaction amounting to nearly one million dollars. This experience taught me the lucrative potential of well-timed and informed land investments. The lesson here is that through thorough research, understanding market trends, and making informed investment choices, you can achieve substantial returns. Additionally, you have to be able to recognize and seize opportunities. This contributes significantly to the overall success of the investment.
Do you have a favourite “life lesson quote”? Can you share a story or example of how that was relevant to your life?
Numbers don’t lie. I always put everything I do in life into numbers, and then I do the ratio and comparison to see which investment is more profitable in a desired period. Let’s say I invest 100k in a house and 100k in land within 5 years. Which investment will give me more profit? Which one is the safer option? So, I look at the investment profit in the next 5 years and compare it with how things worked out in the past. I also research and collect information from the current and past market for the specific land or house. I consult with good friends and colleagues in the Real Estate industry to get their opinions. Once I have collected all this information, I lay out the numbers and see if the investment makes sense for me or not.
Are you working on any exciting new projects now? How do you think that will help people?
My wife and I have started looking into investing in affordable luxury housing. We want to be able to provide quality luxury housing at an affordable level. My goal is to ensure lower and middle class have the opportunity to have their hard-earned money invested correctly in housing and lead a quality life simultaneously. I also want to make sure the housing takes place where it will increase in value in the future without a doubt so that lower and middle-class families can receive a return on their investment in housing.
Can you elaborate on the importance and profitability of affordable housing, especially in the context of your venture into affordable luxury housing?
Absolutely. Affordable housing holds profound significance. It addresses a critical societal need by providing comfortable living spaces for lower, medium-class, and medium-class individuals. Homeownership plays a fundamental role in almost everyone’s life, and making this dream accessible to a broader demographic contributes to social well-being. Investing in affordable luxury housing is not just altruistic; it’s also a sound business strategy. The demand for quality housing within the means of the middle class is consistently high. By offering a blend of luxury and affordability, we tap into an underserved market, creating a win-win scenario. The profitability lies in the ability to cater to a significant portion of the population that seeks both comfort and value for their investment. In the long run, this approach ensures the sustainability of our venture. As these affordable luxury homes appreciate value, our clients not only enjoy a high standard of living but also witness a growth in their property investment. This dual benefit not only secures our business model but also fosters a positive economic impact on the community.
What do you think makes your company stand out? Can you share a story?
What sets our company apart is our focus on developing affordable housing that offers a luxurious lifestyle and superior living standards. Our project, strategically located near the city, promises significant appreciation in investment value once the infrastructure is completed. Investors can expect a three to fivefold increase in their investment within a relatively short period. Additionally, our property’s proximity to the capital city ensures a convenient commute of 30 to 40 minutes, enabling residents to work in the city with ease. Moreover, the improved air quality over the next 15 years, owing to reduced traffic compared to the older city, is another distinguishing factor that makes us stand out in the market.
Can you share 3 things that most concern you about the industry? If you could implement 3 ways to reform or improve the industry, what would you suggest?
Firstly, the current fragmentation of real estate data across various private entities poses a significant challenge. With each company maintaining its own repository of sale, valuation, and rental data, inconsistencies arise in property pricing and comparisons. This lack of synchronization creates difficulties in negotiation and valuation processes, often requiring multiple valuations from different companies, leading to confusion and increased costs for all involved parties.
Secondly, addressing the housing needs of lower-income individuals is paramount. The absence of a government-sponsored housing initiative hinders the ability of individuals, especially government employees with modest salaries, to afford properties in urban areas. Implementing a lowincome housing plan would provide a viable solution, utilizing governmentowned lands to construct affordable housing projects, enabling these individuals to own homes based on their income.
Lastly, expediting infrastructure development is essential. While the government has undertaken numerous projects, the prolonged timelines and delays in project execution are a concern. Streamlining the planning and execution processes, as well as minimizing bureaucratic hurdles, is crucial to ensure that infrastructure projects are completed efficiently. Delays, such as the prolonged study and planning phase for a bridge construction project, can impede overall progress and economic development.
What advice would you give to other real estate leaders to help their teams thrive and create a fantastic work culture?
An African proverb quotes, “If you want to go fast, you go alone, if you want to go far, you go as a team”. It is best to work in a team with great ethics and honesty. We need to develop the work ethic to work together to bring benefits to our customers and put them first as our priority to help find what they need and want. Do not use the PUSH Sale strategy, as it will not benefit them. Always provide details and comparable data. Explain the ratio to your clients so they understand what they are investing in and how it is profitable to them. This way, they will keep coming back to you and refer you to their friends and families.
OK, here is the main question of our interview. You are a “Real Estate Insider”. If you had to advise someone about 5 non-intuitive things one should know to succeed in the Real Estate industry, what would you say?
This is quite an interesting question. I think it really depends on the person, but here are some of my tips:
First, take a real estate course to understand how the valuation process works and pick one field in real estate to dig deep into. Is it land, home, commercial property, or what type of property? It is easier to be great in one specific field and much harder to focus on generalities, so pick one and dig deep to be great in that specific type of property.
Second, make friends with like-minded people, colleagues in real estate, and government officials. This way, you can access a broad range of information that will help you immensely in your property and investment assessments.
Third, read real estate-industry-related news, including financial news, not just typical news. It will help you to make your next investment more profitable.
Fourth, always create an investment ratio and comparison before purchasing any properties,
Fifth, in your research, start with 20 to 50 properties, then down to 10, then down to 5, and finally, pick only the top 3 to work on or invest in. Start negotiating your first choice and negotiate. If you cannot come to agreeable terms and conditions, move on to the 2nd and the 3rd as needed.
Because of your position, you are a person of enormous influence. If you could inspire a movement that would bring the most amount of good to the greatest amount of people, what would that be?
Thank you for this question. I hope I can inspire to increase access to quality housing for all, particularly for those in lower income brackets, as I have witnessed firsthand how access to safe, affordable housing can dramatically improve people’s lives.
This movement would not only aim to construct affordable housing but also to build communities that foster a sense of belonging, security, and opportunity. I envision a collaborative effort that brings together government, private investors, real estate professionals, community organizations, and bankers. The focus would be on sustainable development, using eco-friendly materials and designs to create homes that are both affordable and kind to our planet.
Additionally, these communities would be built with essential services and amenities like schools, healthcare facilities, and green spaces, ensuring a holistic approach to improving the quality of life.
The impact of this movement could be transformative. Secure housing is a foundation for stability, enabling individuals to focus on education, career development, and personal growth. Communities would flourish as residents invest in their homes and surroundings, creating a ripple effect of economic and social benefits.
This isn’t just about building houses; it’s about creating opportunities for people to lead fulfilling lives, contribute to society, and break cycles of poverty. It’s a movement toward a world where everyone has a place to call home, a community to belong to, and a chance to thrive.
Also, building a central data centre to collect all the related real estate data throughout the nation for tax purposes and to avoid market manipulation is invaluable for the real estate industry and people in general.
How can our readers further follow your work online?
I am very active on LinkedIn, where I share my work and visions. www.linkedin.com/in/simpiseth
Thank you for your time and your excellent insights! We wish you continued success.
Thank you for having me. I have very much enjoyed sharing my insights and hope to inspire others in the industry to take a sustainable approach and the right steps towards affordable housing everywhere.
About The Interviewer: Jason Hartman is the Founder and CEO of Empowered Investor. Jason has been involved in several thousand real estate transactions and has owned income properties in 11 states and 17 cities. Empowered Investor helps people achieve The American Dream of financial freedom by purchasing income property in prudent markets nationwide. Jason’s Complete Solution for Real Estate Investors™ is a comprehensive system providing real estate investors with education, research, resources and technology to deal with all areas of their income property investment needs. Through Jason’s podcasts, educational events, referrals, mentoring and software to track your investments, investors can easily locate, finance and purchase properties in these exceptional markets with confidence and peace of mind.
A Starting with very little, Jason, while still in college at the age of 19, embarked on a career in real estate. While brokering properties for clients, he was investing in his own portfolio along the way. Through creativity, persistence and hard work, he earned a number of prestigious industry awards and became a young multimillionaire. Jason purchased a California real estate brokerage firm that was later acquired by Coldwell Banker. He combined his dedication and business talents to become a successful entrepreneur, public speaker, author, and media personality. Over the years he developed his Complete Solution for Real Estate Investors™ where his innovative firm educates and assists investors in acquiring prudent investments nationwide for their portfolio. Jason’s sought after educational events, speaking engagements, and his popular “Creating Wealth Podcast” inspire and empower hundreds of thousands of people in 189 countries worldwide.
While running his successful real estate and media businesses, Jason also believes that giving back to the community plays an important role in building strong personal relationships. He established The Jason Hartman Foundation in 2005 to provide financial literacy education to young adults providing the all-important real world skills not taught in school which are the key to the financial stability and success of future generations. We’re in a global monetary crisis caused by decades of misguided policies and the cycle of financial dependence has to be broken, literacy and self-reliance are a good start. Visit JasonHartman.com for free materials and resources.