Time to Get Serious About Real-Estate!
I wish that I had done this 15, 20, or even 25 years ago, but this is finally the year that I decided to get serious about being a Real-Estate Investor. 25 years ago I was only 18 - and while I did have the idea, I lacked the cash, credit, and mentality to undertake this endeavor back then.
However, 20 years ago I was 23 - and my cash, credit, and mentality had improved considerably. Still, I let pass what would have been a perfect time to start my Real-Estate endeavor while I still lived in Florida. But then I cannot second guess that choice because the following year I would move to North Carolina, start my first Internet company, and a short time later meet my wife of 15 years and counting... so I wouldn't change a thing about that!
But 15 years ago I was 28, just married, and we were both starting new careers (myself in Technology and my wife in the medical field). The year was 2000 (we managed to survive Y2K and we had long since partied like it was 1999) - So it would have been the PERFECT time for me to start this journey. But other opportunities came one after the other seaming out of nowhere that each took me further away from my Real-Estate Investment dream. I would count this as an unfortunate string of occurrences, but each proved to be very lucrative - so I can't really complain.
If I had that moment 15 years ago to do over, my wife and I would have bought a duplex, triplex, or quad with a zero-down VA Loan - lived in one unit, and rented out the other(s). But we didn't...
Fast-forward to 2006 when everything was overpriced and this gave me another excuse to continue on my current track - putting off my Real-Estate dreams yet again. Then on to 2009 in the middle of a housing market crash and I guess I was just too cautious to get in at that time... wanting to keep all the cash and have as little debt as I could for fear that my Technology business may suffer as other companies that used my services were themselves struggling - with some actually going under.
Then in 2012 while everything was at an all-time low, when I should have been buying, I was consumed with expanding my Technology businesses and buying out my former business partner - which took me 3 years to complete... and brings me to 2015!
So the year is now 2015 and I have been thinking and dreaming about being in Real-Estate for 25 years! My wife's career is going great, and I have multiple Technology businesses also doing well and setup with staffing and automation that makes them easier to manage than ever before. The housing market is in a good place. And my cash, credit, and mentality have never been better. If I'm going to do this, NOW IS THE TIME!!!
More to come on this endeavor 25 years in the making...
Comments (2)
Wow, I have completely neglected to update this post with my results... Well, I've been doing it!
I now own 14 Units in 12 Properties, plus a Vacant Lot (#13) that I'll seek to Develop into 2 more Units. The 14 Units consist of 2 Duplexes, 1 Single Family Home, and 9 Townhouses - spread across 6 locations.
I set a goal of 2 Properties for 2015, and I bought the first in July and the second closed literally on the last day of the year - 2015 Goal Achieved!
I set a goal to acquire twice this number (4) in 2016 to end the year with 6. To that end, I bought number 3 in July. I did not buy any more in 2016, but I did acquire control of 3 additional properties via Lease-Option in each of September, October and November... Ending the year with 6 rehabbed and rented properties - 2016 Goal Achieved!
2017 was the BEST YEAR OF MY LIFE, both Personally and Professionally! I overcame many obstacles, learned a ton, closed 2 of my 3 Lease-Options (1 still pending for 2018), and bought 8 additional properties using funds from both Hard Money and Private Lenders - taking my business to the next level!
Of these 8 new properties in 2017, I still own 7 as part of my 14 Units in 12 Properties (mentioned above); but 1 is the Vacant Lot (Property #13), and I sold 1 that was intended to be my first "Flip" - but it really needed to be knocked down for the land, so I sold it for $10K over my purchase price to a person with new build experience (that I do not yet have). Despite this apparent $10K "Profit", I actually LOST $5K on the deal due to Lender, Holding, Closing, and initial Project Costs before I pulled the plug.
But it was the BEST $5K I've ever lost, as in the process I learned what I needed that allowed the next 3 projects to occur, which were each more aggressive Rehabs to Rentals - with progressively higher rehab budgets of $50K, $70K, and $90K.
I'm now looking for my next project(s) while trying to refinance some of these properties into lower interest / longer term debt while pulling out some cash (see my recent blog post about that). I'm also working to add lenders and move up to larger multi-family deals, which may optionally include a 1031 Exchange.
Things seem to ignite for me in July each year, so I'm looking forward to great things for Summer and beyond of 2018.
J.T.
Jonathan Taylor Smith, about 6 years ago
No time like the present!
I, too, wish I had started earlier.
Randy E., almost 9 years ago