The True “Get Rich Quick” Scheme: How Being Broke Allowed Me to Succeed in Real Estate

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In this post I will tell you how the long struggle of choosing to stay broke has left me with a foundation strong enough to now begin on the pursuit towards wealth.

For some reason, real estate has been labeled as a get-rich-quick joy ride for entrepreneurs. Which is funny because in my experience, it has been more like a be-broke-for-a-long-time uphill climb. Can you get rich quickly and easily from real estate? Definitely — and you can also do that with the lottery. Unfortunately, both of those results are unlikely to repeat, and neither are anything close to sustainable. Getting rich quickly requires the use of self discipline in order to utilize the power of exponential growth AFTER you put in the long grind of foundation building. Whether that foundation is in knowledge, money or connections, it must be built!

How I Bought, Rehabbed, Rented, Refinanced, and Repeated for 14 Rental Properties

This is the dream right? Going from zero to 10+ rental properties, providing stable cash flow and long-term wealth for you and your family, and building a scalable business model to boot! Learn how this investor did just that, in this exclusive story featured on BiggerPockets!

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Exponential Growth is a Powerful Thing

I was never a good student in school. I would day dream, not care, and halfway pay attention to lessons. However, I do distinctly remember being taught about exponential growth. I have no clue what grade that was, but I remember typing 2^2 = 4 in my calculator, and then tapping the “=” button over and over to watch the numbers climb higher and higher. The math behind exponential growth forever stuck with me. I always related it back to money. As a middle schooler, I would run scenarios such as, what if had one dollar and it doubled every day for a month? BUT WAIT… what if I started with 100 dollars and it doubled every day for a month? Boom… a conservative investor was born.

Related: How Much Money Do You Need to be “Rich” and Is It Worth It?

My brother (my 50/50 business partner) and I share views on finance and wealth building. We have worked together since I was 18 years old. We began by opening a handyman business back in 2008 while living in a “house hack” with 6 guys. Through word of mouth, trial and error, and a ton of effort, we grew that company into a successful home renovation business, rehabbing kitchens, bathrooms, and additions for homeowners. It was pretty cool being 19 and making good money off these projects. However, unlike the majority of our peers, we didn’t blow it at bars or on clothes. We saved it because we were never going to be the smartest by a long shot, or have the most connections. What we did know was that we could out-work others, and if we had the capital to work with, we could build the foundation necessary to do so.

Taking the Classic Investing Approach and Flipped It On Its Head

The classic real estate investor newbie says, I wanna wholesale so I can make enough money to put a down payment on a house to flip. After they profit from several flips, they can have enough money saved up to put a nice down payment on a buy and hold property, so that one day they can pay it off and have a nice passive, cash flowing rental. Great… but where is the foundation to exponentially grow on? My partner and I are working the inverse of that equation (with some variation). I’ll explain how later in this post.

Have you ever heard “live below your means?” We took it one step further and lived at our lowest means — and did so for a long time. While running the home renovation company, we paid ourselves very little — some months nothing, some months $500. Remember, we were in college living in a house hack with 6 people, renting each room out. It’s funny; everyone is poor during college living off practically nothing, but as soon as they get some income, it’s impossible for them to continue living at such low means.

We got paid well, lived at the bottom of our means, and saved in order to prepare to enter into real estate investing. By 2012 we began buying highly distressed SFRs, rehabbing them all cash. We then rented these newly renovated properties out and took NO money for ourselves. We looked at it as if it wasn’t ours to have. We would have 3, 4, then 5 debt-free houses renting for $800-$1000 a month, but my partner and I would be doing quick rehab jobs for others and picking up scrap metal on trash night to pay for our personal needs (groceries, cell phone).

Sounds like it sucks, right? It did, but the foundation was being built. We were living like most wouldn’t so that one day we could live like most can’t. We knew the faster the foundation was built well, the more we could utilize exponential growth. After we had 7 houses under our belt, we finally leveraged some of them to continue the growth into another SFR, 3 more duplexes, and a 5-unit apartment building. Not until two and half years after we bought our first rental did we decide to pay ourselves a whopping 6% of gross rents. I will admit somewhere in this mix we were lucky enough to find great wives to help support us through this financially draining journey.

As I mentioned before, we are running the inverse of the classic path of entering REI. We started by owning buy and hold properties free and clear. We then used debt from those properties to acquire more buy and hold properties. We are now planning to pull the remaining chunk of equity out of the portfolio (to a safe 70-80% LTV) and begin to put down payments on houses to flip. Because of our track record, banks and private investors are now willing to lend to our LLC on multiple flips at once. We will use the profits from our flips to eventually buy large apartment buildings. Let the exponential growth begin! We are just now, 7 years after our start, seeing the fruits of our labor, and they are sweet!

“But That is Way Too Hard!”

My partner and I are willing to make the sacrifices now in order to reap the benefits later. This sounds great, but when it comes down to actually putting this to action, it is beyond hard. By no means is this lifestyle choice for most. People claiming that sacrificing your spending money in order to save will build wealth is nothing new. The reality you don’t hear about is all the other things that also get sacrificed. We realized that working 12-15 hour days rehabbing houses 6-7 days a week left very little room for other things. We willingly let go of much of our social life in order to build this foundation.

Along with social life is the toll this can have on your health. The sacrifices go far beyond money. I know these years of buying my t-shirts out of the nine cent box at the thrift store (yes, this does exist) will one day have a positive ripple effect on everyone important to me. We do not work for money, but rather the good money can do for those we care about and will care about. We paid ourselves nothing and worked 80 hour weeks of hard labor in order to know that when the day comes when we have children, we can give them and our wives all they need and more while only working 40 hours a week.

Some may say we could have leveraged sooner — even at the beginning. They will say in the formula of exponential growth, the exponent is more powerful than the base number. They are right, but the real world isn’t a formula, and having money makes it so much easier to make money. That’s the foundation I talked about. If you try to grow too fast without enough money, experience or connections, your foundation will crack, and you wont have any money to repair it. The next thing you know, you will be looking around saying, what the hell happened? You must take the time to build the foundation of knowledge, money, and connections.

Advice to the Beginner

Plain and simple, there are thousands of ways easier than the approach my partner and I took to build a foundation for growth. It worked really well, but there are better ways. You may be asking, then why didn’t you use the better ways? The truth is, it’s because we didn’t know how — or even know they existed. We entered our investing career full blast, hit the ground running. We didn’t take the time to educate ourselves well. We didn’t network with anyone for the longest time.

I did whatever I knew how to in order to build my foundation stronger. We just were go go go, and when a road block came along, we just pounded away until it broke. Little did we know, with knowledge and the right connections, you can avoid half of the roadblocks we ran into. Along with our all-out approach, we were fortunate to enter REI in one of best markets to buy into. Because of this our mistakes didn’t hurt us as badly. Plain and simple, we got lucky. Had it been 2006, our growth would have been much different.

My advice is simple to beginners: You don’t have to be a pro, you don’t need a team of 10 people. Just understand what REI is, and get a grasp on the basics of it. Find a couple people that you can call when you get stumped. Then hit the ground running with this amazing website (BiggerPockets), and you can accomplish all that in under a week. The rest you can sort out along the way as long as you continue to learn from your mistakes and educate yourself as you progress. You don’t need a degree or anything special.

Related: How to Get Rich: 7 Awesome Ways to Build Big Wealth Today

When you make things happen, things happen! Just don’t ever plan for it to be easy, or that you will get rich quickly. Once you get rolling, continue the sacrifices to build your foundation. Once your foundation is strong, let ‘er rip and watch the hard work pay off. If you aren’t able to have the self discipline to sacrifice either time, money, or both, then entrepreneurship isn’t for you.

The only sustainable way to get rich quickly in real estate is to use self discipline and sacrifice up front, building the foundation. So one day with the power of exponential growth you will be able to get rich quickly!

What strategy did you take starting out in real estate? What would you have done differently?

Leave your comments below, and let’s chat!

About Author

Jered Sturm

Jered Sturm is co-founder and director of sales and marketing at SNS Capital Group. Jered began in the real estate industry in 2006, working for a successful real estate investment company as a handyman. From 2009-2012, Jered co-founded the construction company Sturm Properties. Using his background in contracting and construction, he began investing in “Value Add” real estate. Now, after co-founding SNS Capital Group, Jered has conducted over 10 million dollars in real estate transactions. He currently co-owns and operates a portfolio worth over 3.7 million dollars in investment real estate.


  1. Brian Gibbons

    OMG, best newbie article ever!

    I look for tough REI students, like you.
    tough vs soft

    Most Americans, 20 – 60 are a bit soft,
    instant gratification, it takes too long!

    Your Q
    What strategy did you take starting out in real estate?
    What would you have done differently?

    I had a mentor – coach, helped me find a run down house, bought HML, 65% LTV, 10 pts (ouch) 12% interest only, sold in 6 mo, made $15K. Yea!

    I was an acquisitions manager, I talked FACE TO FACE with home sellers, mostly expired listings, offered sub2, wraps (1980s mortgage interest rates were 10% plus!), lease options, options, low cash, etc.

    I look for in REI Students
    -US Military, tough
    -NCAA student athletes, tough
    -Parents were entrepreneurs, deal with ups and downs, no safety net

    The toughest thing I ever did was US Marine Corps.

    Jered, I love your story, look me up if you need help.


    • Jered Sturm

      Thank you for the kind words. Although I was not in the Military, a college athlete, or a child of entrepreneurs. I do feel I share characteristics of all three.

      Thanks for sharing a bit of your story.

      Thank you for your service in the US Marine Corps.


  2. Cristina Abellar on

    I seldom leave comments but this one is worth worth reading & letting the writer know how great his article is! Amazing, impressive & right on! I agree 110% with Brian, “OMG best newbie article ever”! Jered, please continue to share your experiences as you are an awesome writer that will inspire many. Kudos!

  3. I visited a real estate investor today who interviewed me for a job. Basically finding properties to sell and buy. He gave a harsh reality of the world of real estate investors. He said its a hobby to MANY people and also that many people think that real estate is all about doing deals. One of the most eye opening experiences I have had was when he showed me a pie chart of “typical day-time spent”= 20% actual real estate deals 40% making new contacts and 40% reaching out to old contacts. This is how the foundation is built and also how you keep from running out of business. It is a constant ongoing endeavor.

    • Jered Sturm

      Nah, I just had fun in an unconventional way. I really am having the most fun when I am active, producing results, and succeeding. REI is my fun! Not that the standard 20s fun isn’t fun, Its just not my fun.

      Appreciate your comment,and know you mean well. Because of that ill take a 15 min lunch instead of 10 haha! 😉

  4. Marty Snyder

    That is an awesome success story and I am very proud of their accomplishments. I helped them purchase several of their properties and bragged to many of my colleagues about Jered and his brother. I always said that I wished more young people were like them. These guys are going to soar! I’m so proud of them both!

  5. Jason Blue

    Jered, What a great article! Thanks for taking the time to put that together. Your story is inspiring. I am in the beginning stages of REI so it is very reassuring to read posts such as this. I am currently married and have a son, they both are extremely supportive of my journey to make this transition in REI. While I wont be making the exact same sacrifices as you did (I’d like to stay married, HA!) I do understand this is going to take time, effort, and discipline.

    Currently the strategy I am formulating is to educate myself here on BP, network and surround myself with people having success and sustainability in REI, and take action, big or small, everyday action. One of my biggest hurdles is really just the whole “you don’t know what you don’t know” thing. It is so easy to get caught up in the education phase, analysis paralysis.

    Brian, Sempre Gumby!
    I have appreciated many of the post responses you have given on BP. You always add value to the articles. Oohrah!


    • Jered Sturm

      Jason, Thank you! yeah our entry was not kid or wife friendly by any means!

      One of the reasons I wrote it is maybe make a dent it the 90% that Larry S mentioned above.

      Your quote “you don’t know what you don’t know” is only a problem If you view it that way. I see it as an asset for you. Instead of focusing on what you don’t know, focus on all you can do. Time is the most valuable factor in investing. Your right take action! You can read for years and then you will just have to go learn it the real way.

      I don’t have kids but I will relate REI to what others have told me being a parent is like. You can read books on how to be a good parent but the second your child is born and ever second after that it all goes out the window, and you are stuck learning on the spot. The parenting book wasn’t written about you, or your kid. Real estate books were not wrote about you or your investments. Get the basic understanding from BP or books and go out to learn in the field.

      Good luck on your start!

  6. Cathy Sturm

    As Jered’s Dad, I would like to chime in (yes, brag) with a couple things that I believe add some real power to what both of my sons do to be successful.

    That “word of mouth” advertising that they used during the handyman stage of their business kept them very very busy. I know many of the people they did this work for, and their comments on the professionalism, quality of work, timeliness etc, always came back to us. One of my favorite stories is after agreeing on the job and payment, Jered calling up their client who asked “when can you get started?” His response was “we are done!” She was very happy with that as well as the quality of work. Another is, on many jobs, they didn’t ask for any payment until the job was complete and the client satisfied. How does that sound up against the many horror stories we have all heard about bad contractors skipping out with money and doing no work.

    More recently a possible tenant said they called them specifically because a friend had just recently rented from them, and exclaimed how great of landlords they were and how the whole process went so smooth.

    Now, this is the big part……………What both my sons have used these years, is a high level of integrity, honesty and a strong work ethic. Three characteristics that are hard to come by, but when they show through when working with someone, lead to a high level of trust.

    They have been working oh so very hard building the foundation that Jered talks about, with their own work, and the behind the scenes support of their wonderful wives.

    We are oh so proud of them!
    Thanks for reading me bragging about them, yes I’m biased!
    Matt Sturm

  7. Crystal Thomas

    Hi Jered, I really like how you didn’t sugar coat anything in this post. I love the quote ” When you make things happen, things happen”. I am currently in the education phase and will be on the lookout for any more information you have to offer.

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