He Missed $565K in Crypto… Here’s What He Does Differently Now

He Missed $565K in Crypto… Here’s What He Does Differently Now

May 04, 20264 min read

In today’s world, building wealth isn’t limited to just one strategy. The most successful investors are combining real estate, crypto, and tax efficiency into one powerful system.

But here’s the reality…

Many people are either:

  • Too scared to invest outside their local market

  • Confused about how crypto fits into their portfolio

  • Or worse… making costly mistakes they don’t even realize

In this episode, Paul Lizell shares how he invests in real estate across the country—even in extremely remote markets—while also navigating crypto investing and tax strategies.

And more importantly… he reveals the painful $565,000 mistake that reshaped how he approaches investing forever.


🌍 Investing in Real Estate Anywhere (Even 3,000 Miles Away)

One of the biggest myths in real estate is that you need to invest locally.

Paul proves that wrong.

He actively invests in multiple markets across the U.S.—including:

  • Wyoming

  • Arizona

  • Indiana

  • Ohio

  • Pennsylvania

  • Even rural Alaska

Yes… Alaska.

So how does he do it without being physically present?

🔑 The Secret: Build a Strong Local Team

Instead of relying on proximity, he relies on people.

His process:

  • Contact 3 real estate agents in the target market

  • Interview them based on responsiveness and knowledge

  • Choose agents who provide accurate data + fast communication

  • Ensure they have access to reliable contractors

This “boots-on-the-ground” approach replaces the need to be physically there.


🔍 Where He Finds Hidden Real Estate Deals

Finding deals is where most investors struggle.

Paul focuses on non-traditional deal sources, including:

  • Auction.com

  • Hubzu

  • Xome

  • Hudson & Marshall

  • HUD Home Store

  • Bank-owned (REO) properties

These platforms allow him to find undervalued properties—even in less competitive markets.


💰 The Real Secret: Profit Is Made When You Buy

This is one of the most important principles in real estate:

👉 You make money when you buy—not when you sell

Paul emphasizes:

  • Always compare properties using tools like Zillow

  • Avoid markets with no comparable sales (comps)

  • Buy below the lowest comparable property

If you’re buying cheaper than the lowest sold comp…
you’re already setting yourself up for profit.


🛠️ Strategy: Why He Prefers “Wholetail” Over Full Rehab

When investing remotely, complexity becomes risk.

Instead of doing heavy renovations, Paul often uses a strategy called:

👉 Wholetailing

  • Do minimal repairs

  • Make the property mortgageable

  • Sell quickly at a competitive price

Why?

Because full rehabs from thousands of miles away:

  • Increase risk

  • Require more oversight

  • Depend heavily on contractors

Keeping it simple = higher probability of success.


⚠️ The $565,000 Crypto Mistake

Now let’s talk about the moment that changes everything.

Paul shared one of his biggest investing regrets:

  • He converted Bitcoin into another crypto project

  • That investment skyrocketed within one week

  • His profit reached $565,000

And he didn’t take it.

Then… the market crashed.

That opportunity vanished.


💡 Lesson: Always Take Profits

This story highlights a powerful investing principle:

👉 Unrealized gains are not real gains

Key takeaway:

  • Take profits when assets go up significantly

  • Don’t assume it will keep rising forever

  • Protect wins instead of chasing more


₿ Crypto Strategy: Smart, Long-Term Thinking

Paul’s crypto philosophy is simple but powerful:

✅ Focus on Use Case

He prefers projects with real-world utility like:

  • Bitcoin

  • Ethereum

  • XRP, XLM, HBAR

  • AI-based crypto projects

❌ Avoid Blind Speculation

He avoids:

  • Meme coins (unless small speculative bets)

  • Projects with no long-term value


💸 Tax Strategy: Real Estate + Crypto Combo

One of the most underrated parts of this episode is tax strategy.

Paul explains:

🔑 Borrow Instead of Sell

  • Borrowing against crypto = no taxable event

  • Selling = triggers capital gains tax

🔑 Use Real Estate Losses

  • Cost segregation creates paper losses

  • These losses can offset crypto gains

This is how advanced investors legally reduce taxes.


📈 Dollar-Cost Averaging Bitcoin

Paul keeps it simple:

  • Invest consistently (monthly or per deal)

  • Don’t try to time the market

  • Think long-term

He even used profits from real estate flips to buy Bitcoin regularly.


🏙️ Best Markets for Real Estate Investing

If you’re building a long-term rental portfolio, location matters.

Paul’s top criteria:

  • Low or no state income tax

  • Strong job growth

  • Affordable property taxes

  • Population growth

📍 Markets He Likes:

  • Florida

  • Arizona

  • Indiana

  • Ohio

  • Tennessee

  • Carolinas

⚠️ Watch Out For:

  • High property taxes (e.g., Texas)

  • High transfer taxes (e.g., Pittsburgh)


🧠 Final Advice: Keep It Simple and Strategic

Across both real estate and crypto, one theme stands out:

👉 Focus on long-term value, not hype

Whether it’s:

  • Buying below market value

  • Choosing strong markets

  • Investing in real-use crypto

  • Or managing taxes intelligently

The goal is the same:

Build sustainable, long-term wealth.


🔚 Final Thoughts

This episode is a reminder that success in investing doesn’t come from luck—it comes from:

  • Systems

  • Discipline

  • And learning from mistakes (even expensive ones)

Because sometimes…
your biggest loss becomes your greatest lesson.


👉 Stay tuned for more deep insights on real estate, crypto, and wealth-building strategies by following the podcast



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