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BlogArrowReal Estate Investing BasicsArrowI Just Sold Half of My Rental Portfolio—Here’s Why That Should Make You Nervous!
Real Estate Investing Basics

I Just Sold Half of My Rental Portfolio—Here’s Why That Should Make You Nervous!

Brandon Turner
Expertise: Landlording & Rental Properties, Personal Development, Real Estate News & Commentary, Business Management, Flipping Houses, Mortgages & Creative Financing, Real Estate Deal Analysis & Advice, Real Estate Wholesaling, Personal Finance, Real Estate Marketing, AskBP, Real Estate Investing Basics
593 Articles Written
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If you listened to the BiggerPockets Podcast a while ago, you may have heard me mention: I once sold half of my portfolio.

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Out of my 52 rental units, I sold 24 in one swoop by unloading my 24-unit apartment complex. (At the same time, I also sold two of my single family houses.)

Since then, I’ve been asked numerous times: “WHY!?”

  • Is the real estate market crashing?
  • Is it time to get out of real estate?
  • Is the sky falling?
  • Should I buy Bitcoin instead?

(To that last point—no.)

Here I explain exactly why I sold my portfolio—and why that should make you a little nervous. But don’t worry, it’s probably not what you think.

Why I Sold

When I started investing in real estate, I made a lot of mistakes. We all do.

One of those mistakes was very simple and common. When I analyzed deals, I assumed I would be able to do the property management myself—forever. After all, when I was buying my 24-unit apartment complex, I was just 25 years old, so it was easy. I had no kids, and my wife and I could spend all our time dealing with the drama that comes with owning lower-income rental properties.

However, time’s have changed. Specifically, this happened a few years back:

That’s right—I became a dad, and it’s the best thing in the world. So, managing tenants wasn’t as fun as it once was, because frankly, I’d rather spend my time with Rosie.

But remember, when I analyzed my early deals, including my 24-unit apartment, I didn't plan for property management. So, if I decided to outsource it at this point, a large chunk of my cash flow would be destroyed. AND because of my location, I don't think I could find a decent property manager.

In other words, I had painted myself into a corner. Whoopsies. So, when someone randomly offered to buy my apartment complex, I said, “sure.”

[Subtle lesson here: I was contacted by a local investor, completely out of the blue. I had not been thinking of selling at all. He just reached out to me at the right time and bought a great deal from me. This should motivate you to contact every landlord in your area. There is a good chance many of them are in the same boat I was.]

No, real estate is not collapsing. Will the market decline again? Of course. It's just a matter of time. Statistically, we're in for a recession soon.

But does that mean I gave up on buying real estate? Far from it. In fact, I was just getting started. And that should make you nervous.

Related: How to Beat the Coming Housing Slowdown With a Value-Add Multifamily

Why You Should Be Nervous About What I’m Doing

It’s simple: I’m competing with you—and I’m going to win. Yes, I just said it.

I’m taking your next deal.

I’m going to out-hustle you.

I’m going to out-market you.

I’m going to out-smart you. 

Happy casual beautiful woman working on a laptop sitting on the bed in the house.

And I’m not the only one. Smart investors, everywhere, are still looking—and still finding—deals. So, are you going to sit on the sidelines and wait for the market to decline? Or are you going to get out there and compete with me?

The Next Step for You

Look, the end of the year is approaching quickly. You had some pretty lofty goals set at the beginning of the year. How are you doing on them?

Are you ready to get serious about crushing your goals? If so—and if you are ready to sprint to the end of the year—then listen up: Take the 90-Day Challenge with me.

Related: Buying a House: The Ultimate Guide to Purchasing Your First Property

It’s a 90-day sprint to buy your first (or next) property before the end of the year, and the entire BiggerPockets community is going to be doing it together.

To kick off the challenge, you can watch the BiggerPockets webinar here.

It’s time to sprint to the finish line. See ya there!

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How have your yearly goals been going, and will you participate in the 90-Day Challenge?

Share with a comment below!

By Brandon Turner
Brandon Turner is an active real estate investor, entrepreneur, writer, and co-host of the BiggerPockets Podcast. He is a nationally recognized leader in the real estate education space and has tau...
Read more
Brandon Turner is an active real estate investor, entrepreneur, writer, and co-host of the BiggerPockets Podcast. He is a nationally recognized leader in the real estate education space and has taught millions of people how to find, finance, and manage real estate investments. Brandon began buying rental properties and flipping houses at age 21, discovering he didn’t need to work 40 years at a corporate job to have “the good life.” Today, Brandon is the managing member at Open Door Capital. With nearly 300 units across four states under his belt, he continues to invest in real estate while also showing others the power and impact of financial freedom.
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63 Replies
    Amy A. from Portland, Maine
    Replied over 3 years ago
    Quick question: Is your sale contingent upon you buying an appropriate 1031 exchange property? I’ve read that a big mistake investors often make is buying a poor investment in an exchange because of the deadline. What a beautiful daughter you have! Yes, dealing with tenant drama is particularly difficult when you have a young child to take around with you. You can’t always get childcare at the last minute in an emergency. They hear words that they wouldn’t hear at home!

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    Account Closed Investor from Potter, Nebraska
    Replied over 3 years ago
    Good story. It’s good that you are changing with the events in your life. That is wonderful your priorities change and you change with the times. Congratulations. If you are looking for a single-family home investment in a market that is down right now but will soon go up – please look at my marketplace posting of home built in 2016 on 40 acres in Potter, Nebraska. Beautiful country. No work needed, we just need a buyer. Thanks!

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    Cheryl Crockett Real Estate Investor from Baltimore, MD
    Replied over 3 years ago
    Instead of competing, I would look for a way to collaborate with you to our mutual benefit. There is plenty of square footage on the earth for each of us to be our best in the space God has assigned to us. I wish you the very best!

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    Nick Walton Investor from Frisco, Texas
    Replied over 3 years ago
    Great thread guys, some great info. shared.

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    Cole Starin Rental Property Investor from Kansas City, MO
    Replied over 3 years ago
    I watched and accepted the 90 day challenge last week following the webinar. In response, I went under contract on a new duplex, will be my second property, today and should close before the end of the year. Guess what? Deals are always out there! Its up to you to find them and take action. Thanks Brandon for the motivation, I’ll see you at the finish line.

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    Andrew Syrios Residential Real Estate Investor from Kansas City, MO
    Replied over 1 year ago
    Bring it, Mr. Turner...

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    Aaron Rowzee Realtor from Lumberton, TX
    Replied over 1 year ago
    Challenge accepted, Brandon! I love this plot twist of an article. I clicked on this saying “uh-oh, it’s finally happening...”. Also, I’ve noticed your bio is getting longer and longer at the bottom of your articles with all those books and accolades. Before long that in itself will be a blog post!

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    Michael Amador
    Replied over 1 year ago
    You can still buy bitcoin. Don’t dis bitcoin man. All you need is 1% of your net wealth in it.

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    Alex G. from Eastern Mass & Central Maine
    Replied over 1 year ago
    "Pride goeth before destruction, and a haughty spirit before a fall."

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    Gareth Fisher from Manheim, Pennsylvania
    Replied about 1 year ago
    Capital Discipline tough to come by.

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