BiggerPockets

One of the most unique aspects of today's RE market is class distinction between the experienced an inexperienced due to the fact that the market has turned downward and caused margins to thin. I think the question on everybody's mind is, " how did you become successful."

I hate to see anybody lose money. The reality is that the RE industry has become an intangible Las Vegas - ambition for riches overcoming logic and good sense. So to all you successful gamblers out there - anybody who has a success story - please share it here. Please keep your stories factful, brief and define the pitfalls you overcame.

LET'S HEAR YOUR STORIES ...

^^ that is awesome 8)

Congrats to those of us who have made an impact not only in the market but for all of us due to the knowledge they have conveyed upon us.

Heres to you and your continued success 8)

>So to all you successful gamblers out there - anybody who has a success story - please share it here.

Well I am successful because I don't gamble. I only do slam dunk deals. I weigh in factors like the risk of the value dropping and the cost of a property being on the market for a long time.

I don't try to make a mediocre deal work. I have the patience to wait for the good deals.

Here's a recent deal, I acquired an abandoned property through a tax lien foreclosure. I am into the property for $15K I will sell it for $30K, ARV about $90K.

About 4 1/2 years ago, I started my rental business. I started by studying the Carleton Sheets course, literally every waking minute, for a solid week. Next, I wrote a business plan that would allow me to be semi-retired in 5 years. That plan would require buying 10 rentals per year for 5 years with an average monthly spendable cash of $200 per rental (cash flow + earning management and maintenance fees) and an average equity of $20,000 per rental.

The first year, I bought 10 - right on schedule. As I really got going, more and more people were calling me with deals. I exceeded the 10 per year every year since. Last year, I bought 22 rentals. I now have several dozen rentals and am semi-retired (working 3-4 hours per day and 3-4 days per week).

I'm now in the process of getting my business stabilized and that's it. I'm not planning to buy any additional rentals. My goals for this year are to spend more time camping; riding my motorcycle (including one longer motorcycle trip); scuba diving; master the 180 off the jump on the snowboard, etc. In other words, have fun.

To reach this point, I worked VERY HARD the first two years without more than 1 day off each week; without vacations; and without much free time (a lot of 12 hour days). It was a lot of work, but well worth it!

Mike

That's not much of a success story. Do you have one you can share with us?

David,

I have financed most of my properties with commercial loans from two small local banks. This was nothing fancy. The banks do like me, I have excellent credit and have NEVER missed a payment on anything. I did not have any significant real estate experience before studying the Carleton Sheets Course, but I do have significant experience being self-employed and have a track record of success. In addition to the bank financing, I have purchased some properties with owner financing, sub-to, and via lease-option.

I do follow several formulas to determine which deals are good ones. I won't look at a property unless the gross rents are about 2% of the acquisition cost (purchase price + rehab cost). Then, I do a cash flow analysis using real world operating expenses, which are 45% to 50% of the gross rents (I use 50%). Finally, I must have $100 per unit per month positive cash flow. All of my properties are located close to home.

That's about it.

Good Luck,

Mike

Congrats, I love hearing from other younger people who are involved in real estate. I am 23 as well.

When I was in college, a friend gave me a book called " The Automatic Millionaire" . This book blew my mind and total opened my eyes to the world of investments. From this book I began saving money to invest and reading everything I could about investing. I was determined to buy my own home asap and to start saving for retirement asap. I purchased my first home6 months after I began working.

When I got my first job out of college, I put 6% into my 401k and began buying stocks each week. After I while I realized that I was not so good at buying stocks.

My father had 5 rentals and I saw the potential to make money, but every time I approached the subject with him he didn't take me serious or shrugged it off. I went to a free informational session for Rich Dad and was hooked. Once my eyes were opened to all of the opportunity that was out there, I began reading everything that I could. I closed on my first duplex this past December for $26,000. Since then we have completely renovated one of the units and raised the rent $100. We are in the process of refinancing the property, and plan to use that money to purchase another rental.

LOL thats funny. I started reading automatic millionaire when I was younger. That is actually how I was told about investing. My friend/rei mentor heard me talking to someone about money, and he kind of took me under his wing from there.

it's good to read a success stories here fro ti helps me motivate myself I am hoping to succeed too...