Big Reasons for BP Members to Be Thankful

We were all born with certain gifts: A few of us, like Michael Jordan, are athletic; some of us, like Albert Einstein, are genius; and others, like Brandon Turner and Josh Dorkin, are uncannily, devastatingly handsome. But for most BP listeners, our gifts are in real estate investing: We can grasp investment concepts, see value, orchestrate rehabs, force appreciation and put in sweat (and blood when I'm the guy swinging a hammer) where most other people see only risk, fear, or well, nothing. BP listeners are real estate investors and our ability to turn opportunity and effort into wealth is an indisputable gift. We can do it, where others can not.

Here's a little confession: As a younger man I was prone to thinking that "if I could do it everyone could do it". It was tempting to think that people unable to invest were either too scared, lazy or stupid to apply themselves and do the work. With the benefit of years, I now realize that my abilities are actually gifts that I have and others do not. Just as I will never be an athlete or a physicist or a person who can coordinate colors, others will never "see" how real estate investing works. This is ok! Athletes entertain and inspire, physicists advance our understanding of the universe, interior designers make things beautiful, and real estate investors build wealth and create places for people to live. This is an awesome gift!

Unfortunately, we live in a day and age where real estate investors are sometimes portrayed as villains who take advantage of others by requiring money for a place to live. I believe that this stereotype is a sad reality that actually inhibits people from entering the field. Much like the "Rich Dad, Poor Dad" narrative, many of us apply ourselves to earning money, buying liabilities, and paying taxes in a way that mires us down in debt. Such societal (and corporate advertising) messages are powerful and many of us can not see past them. As a person who grew up poor and watched my family strive successfully for middle class status, I was steeped in these messages and they slowed down my real estate investing career for many years.

But BP members know there is a way out of the rat race because this community has shown us how. We can discover, hone and apply our real estate investing gifts to build wealth. Not only that, we can build wealth for ourselves in a way that is socially responsible and socially generous (philanthropic) and here is how:

1) Develop a mission, vision and guiding principles for your real estate investing business and live by them. This mission driven approach to life and business is well documented by many. In fact, grounding our business models and directing our life energy is not a secret so much as a wonderfully effective discipline that some of us are capable of doing by design. If you are a BP member you are probably one of these people. And even if your respective real estate investing gifts are developing or modest, you can almost certainly recognize a good business model when you see one. The Bigger Pockets community has taught us many things and one of the most powerful lessons is that there are many ways to succeed. Discover your strategy and embrace it!

2) Apply your mission, vision and guiding principles to building wealth while helping others. This is definitely possible and the absolute highlight of my investing career (so far). Here is one story.

BRRRRP

Josh's BRRRR model (Build, Renovate, Rent, Refinance, Repeat) is great, and let's make it a "BRRRRP" by adding philanthropy at the end. I was able to BRRRRP by buying a single family home and converting it into a group home for a non-profit organization serving kids who have disabilities. No, this was not a business model that I saw and developed consciously. Rather, it was an opportunity that revealed itself through a core vision and life experience.

Without going too far into the personal details, the story goes like this: My daughter is disabled. As she approached adulthood I realized two facts: 1) she would never be able to live alone and 2) she would go crazy living with my wife and me for the rest of her life. We concluded she needed an assisted living group home where she could live with friends in a caring, safe and stimulating environment. We also knew that quality group homes were crazy expensive and that State operated group homes were often in poor neighborhoods, in disrepair, and failed to attract the best staff. So, we partnered with a non-profit agency. We bought a nice house in a good neighborhood, did some minor conversions, and the non-profit operates it as a group home for people with my daughter's particular needs. Through real estate investing and partnerships, we created a great environment for our daughter AND four other people. We call it the Beacon House.

I am writing this on Thanksgiving Day and feeling very grateful because I know we are fortunate. Many people with special needs have almost no resources and care is often delegated to the State. The Beacon House is so nice that it attracts quality staff, the "group" environment lets residents share costs, and the overhead is almost nothing for a small investor. Does it meet the 2% or even the 1% rule? No, but it does pay the mortgage and all the expenses on a 15 year mortgage, flows positive cash and it is in my daughter's name. When I am dead and gone (not for a while I hope) my daughter will still have a great place to live and she will have the passive income from rents paid by other happy residents.

As real estate investors we can solve problems in a way that helps us and the people around us. There is no way I could have afforded this level of quality care and wealth building for my family by simply working. Investing in assets and putting my money to work is a game changer for myself and the people around me. So, here is some major thanks to Josh Dorkin for putting BP together so that we can all help ourselves and help others. Josh, Brandon, TEAM BP and all you fellow real estate investors...Happy Thanksgiving!