“Be Clear, Be Grateful and Listen”

Dear readers,

I’m on charter this week so decided to whip out someone else’s knowledge:

This week I had the pleasure of interviewing Scott Kidd, a.k.a The Yachtie Real Estate Investor. I have attended some of his real estate meet-ups in South Florida and recently did a podcast with him. I have the utmost respect for Scott and the way he goes about yachting and investing! Enjoy this week’s segment of The Crew Portfolio:

Can you tell us a bit about your background in the yachting industry and how you first became interested in personal finance and investing?

My name is Scott Kidd, I have been a Yacht Captain for over 20 years.  I became more interested in finance and investing when I was married and started a family.  I wanted to provide a stable future for my family.

What were some of the first steps you took to start managing your money while working on yachts?

I was very fortunate to have a really good friend who was a financial advisor and owned an insurance agency who gave me a lot of initial guidance.  He educated me on a lot of financial investments and planning. 

You’ve successfully invested in real estate. Can you share what attracted you to each of these investment avenues?   

Real estate always was of interest to me.  The first captain I worked for he introduced me to buying real estate.  With yachting being an unstable career, I needed to make sure I have a stable future for my family by having passive income. 

What were some of the biggest challenges you faced when you started investing, and how did you overcome them? 

Education and finding the right investements that fit our life goals and plan.  Overcoming them are an ongoing process that gets better the more you do it, like anything else.  With the more I learn, I have access to more.  With that more opportunities, but the focus becomes sticking to the plan and adjusting as things and life changes.

How do you balance your investing with the unpredictable nature of working on a yacht? What tips do you have for crew members who want to stay financially disciplined?

With the world being at our fingertips it is easier to manage than it used to be.  We have 24/7 access to most everything which is great while working on the yachts.  Staying discipine is easier once you set goals and targets.  Set up different investment accounts that are purpose driven.  Make sure you have things automatically invested every month.  Build a cushion of just in case first and stick to the plan.  

Are there any specific financial habits or routines that have helped you stay consistent over the years?

The best are automatic investments. If you invest every month over time you have things grow with compound interest.  I focuse on real estate and know over time when I buy right in the right location, over time it will keep growing. 

What’s been your most successful investment so far, and why do you think it worked out so well? 

So far the best has been investing in an 8 unit apartment we sold 8 months later for 3x our initial investment.  The time was right for that one, right place at the right time.  A little bit of luck never hurts.  

What’s one mistake or learning experience that shaped how you approach money management today? 

One mistake is being too eager to jump into something with the wrong people.  It ended badly and had to pay for a while to get clear of it.  Be careful who you partner with.

Do you follow any particular strategies when it comes to stock market investing or real estate?

I do not do any day trading just dollar cost averaging with my retirement.  I buy every month.  I also have a stock account that has dividend stocks.  When they pay out, I buy back more.

For those just starting out, what resources (books, podcasts, courses) would you recommend to improve their financial literacy?

Book - The Hands Off investor by Brian Burke, 

Stocks - Benjamin Graham - The Intelligent Investor

Podcast for real estate - Neal Bawa - Multifamily University - free courses on Udemy - A data driven approach.

If you could give one piece of advice to a yacht crew member who is just beginning their financial journey, what would it be?

Save your money.  Build up at least 6 months to a year of expenses. Also, buy real estate as early as you can and as much as you can, but buy cash flowing real estate at the right price in the right area.

What’s next for you in your financial journey? Do you have any new goals or investment areas you’re excited about? 

Next is to accumulate a portfolio of multifamily and commercial real estate in the thousands of doors.  I am very bullish on Columbus, Ohio because of the tech moving in.  Also very bullish about all of the tech in the Texas Triangle there is a lot of opportunity.