The Journey Thus Far

Good morning Bigger Pockets,

My name is Roger Smart and I am a young kid born into the world in the year of 1992. I lived happily in Beavercreek, OH and went to school and got good grades. I hoped that one day I would graduate college, get a job, save in a 401k, have kids, work some more, make smart investments, and one day retire. Then real life came at me full force. Boy was that a wrench in my system.

Mom says I am too smart for my own good, and she is probably right. I love to think. My girlfriend comments saying, "What are you thinking now? I can always see you thinking. Your brain is always working." Problem with having my brain always working is that it sometimes gets ahead of itself. It likes to think of the whole process, start to finish but then it settles on the finish line, the one that the Lamborghini just crossed.

Anyways, it was some time after my first year of college that I realized no college degree would get me where I wanted to be. I got a job freshman year and quickly realized I hated working for anyone. I wanted to work for myself. I wanted to build an empire. I quickly became obsessed with get-rich-quick schemes and tried everything from creating mobile phone apps to starting up "non-profit" websites. The problem was that I had no interest in any of these things. Only the money and the chance I would get to be my own boss. 

I gave up on my short lived dream and started working more. I quickly moved up at my work and people noticed me, especially the ladies. I was quite fond of one and we started dating. Within a year we were engaged and she wanted to get a house together. I started applying for mortgages because I had outstanding credit. I knew I could get one, or so I thought. Turns out getting a mortgage as a bartender is hard work. My income didn't count because I had only been doing it for a year and you need at least two years for a commissioned employee. But boy did I want that house for us. 

I kept looking and finally found something on craigslist. A lease option! Perfect! I could lease it now, wait another year for my income to count, and get a loan. I got talked out of that lease option. The house was small and they wanted to do a 5 year lease with no early exit. I wasn't okay with those terms. I sent an e-mail to a local company that specializes in rent-to-own homes in Dayton, OH. The owner of the business was kind enough to exchange e-mails and answer many questions. I gained more and more curiosity about this business and asked him how he got started. You may have guessed his answer. It was a book, "Rich Dad, Poor Dad." I immediately downloaded the book on my kindle app and had it read in a matter of hours.

And it was in the cards. It was all falling into place. I went over to my parent's house and mom handed me an envelop. She said, "Here, I know you like HGTV. I got these tickets and thought of you." She handed me two tickets to the Flip Men convention to learn about real estate investing. How coincidental! I just read a book on this. My best friend and aspiring partner Sam went to the convention. We sat and listened and suffered through the sales pitch at the end. Then we listened to a pitch on tax liens and thought how that would tie it all together. Being new to the scene we quickly fell for the guru pitch. We spent all we had saved and went to a 3 day seminar in Columbus.

At the seminar all we really learned was that we needed more training and that we should pay for their $42k Mentor package. We elected to pay $9000 for additional training, some software, a business quick start guide, and a mentor hotline. It all came with a money back guarantee so we promised Mom we could repay her. This was in May of 2014. Do you think Mom got paid back? Nope, but it was our fault. We didn't act! 

But we did come away knowing one thing. Real estate was where it was at. Massive chunks of income. Passive income. Freedom. All the things I needed to live the life I wanted. All I needed was a house. I went back to looking for lease-options. My boss at the time was selling his house. Decent location next to the University. Possible student rental in the future. It took some convincing but I got him to do seller financing. This was my first mistake. I got into a deal without running the numbers because I was emotional. I had to get a house for my fiancee and I.

Before we closed on the house we separated. I decided to move in anyways. I have 2 roommates and I am "house hacking." Needless to say, this house is a terrible investment property. It's a single family home in an area that might rent and definitely won't sell. The more I read on Bigger Pockets, the more it looks like I should start in a multifamily home to get the snowball rolling.

Three weeks ago I gave notice at my job. At this time I was working 60+ hours a week managing a full service restaurant. I was in a lengthy interview process to move companies in the same line of work. Deep down I didn't want it, I still can't stand working for someone, especially not at terrible and lengthy hours.

Today I had my final interview with the new company. My last day with my current employer is April 26, 2015. After my final interview the new company called me, we negotiated a salary. They called me back about an hour later and said, "Sorry Roger, we interviewed over 40 applicants and we have decided to pass." My immediate reaction was disappointment. I am so smart and so knowledgeable. I am good at my trade and I know what I am doing. I run systems better than the people who have been in this business for years. But in their defense, I did not look good on paper. Only 8 months with a salary position as a full service restaurant manager didn't quite meet their two year minimum requirement.

I received that disheartening phone call around 13:00 today. What I accomplished between 13:00 and 19:00 is unrivaled by any amount of progress I have made in the last 23 years of my life. I scoured the papers for a job. I wanted something in real estate. I came across a bank I hadn't seen before. I called them just to check if they offered portfolio lending and they did. Added them to the list and crossed off part of my weekly to-do's that I have started making. I came across an Irongate ad. They wanted realtors. Perfect! I want in the business and this is a way in. I made the call and set up a meeting. He told me how to become a realtor in Ohio. I looked up Hondros classes and assessed the damage it would do my bank account. "Worth it!" Was the conclusion I came to. 

I then called a real estate attorney and set up a consultation to look at my current lease-option agreement. I applied to be a server at several places and got job offers. I came home, built my business plan and reviewed the area in the market. I called on an 11-plex on the MLS for $250,000. The agent I talked to specializes in investors, or so he says. We talked about financing the 11-plex and he eventually sent me a list of all the multifamily homes in the area. 

Not getting the job is the best thing that has happened to me. I listened to show 15 today of the BP Podcast. And it was about desperation. Desperation forces you to either act, or starve. I chose to act. And so begins the path to my success in the real estate world. Thank you for joining me on my journey.