Here's my a-hole story for you. My husband/partner is a shop teacher in high school, and loves it and does amazing with the students. He's the brains on the renovation/construction, probably saves us $10K+ per renovation on labor alone. One time he was walking to his car at the end of the day with some other teachers, and somehow they were talking about real estate, and another teacher goes "Oh yeah, don't you do it?" so he goes "yeah" and he goes "well, you must not be going that well if you're still here!" .... still grinds my gears, as I'd love to throw the real numbers in his face. ... or just punch him, but both are socially unacceptable.
So that leads me to my point--- ONLY YOU KNOW YOUR NUMBERS. For good reason, only you need to know your numbers--- no one else. Sounds like you're doing amazing, congrats-- don't let d-bag Daves drag you down.. just smile, and know you have income coming in that he'd probably do a lot of unmentionable things for!
Just smile-- you've already won.
Co-workers aren't your friends, so I would recommend being as mute and low key as possible if ever asked about your properties.
@Alan Pederson Sadly this is all too common these days! Like Rich Dad always says, there is money in the "I don't want to's." I have discussed my goals of purchasing 25 rental properties in the next 3 years with countless family members and friends - they all think I am crazy. Surprisingly enough, the most common antagonizing reason I hear also comes straight from Rich Dad Poor Dad - "I could never do that, I don't want to have to worry about fixing toilets at 3 in the morning."
Maybe I've just had good luck with toilets because I have never had to fix mine at 3am in the morning (or even ever!).
On a side note, I was talking to my Manager about my process of buying rental properties and how I analyze the deals as well as secure financing. He looked at me in disbelief that I would leverage a cash flowing rental property 75% to 80% LTV! He told me that it's way to risky and that he could never sleep at night knowing he had that much debt. It boggles my mind.
When I told my mom I was buying a rental property she gave me a "talking to" about wasting money. My parents do okay, but my dad's almost entirely invested in the stock market, which I think is insane - no leverage there! I let criticisms bounce off my back. The fact is almost everyone I know with a day job has a "side gig." Maybe it's part of living in SoCal where the COL is so high.
I also now have two side gigs (photography and real estate) and I don't have any intention of sharing my real estate aspirations with my boss - unless it's the day I quit! Ha ha.
Be yourself and follow your dreams.
Those who matter won’t mind,
and those who mind don’t matter.
Thanks for the inspiration @Alan Pederson
I share I invest in RE with everybody I can. I do not care what they think and I am not trying to impress. What I am trying to do is let everyone know I purchase RE. You never know where the next purchase is going to come from. The more people that know you buy RE, the more potential sources there are for the RE to purchase.
Do not worry what anyone thinks but consider the possible benefits of letting everyone know that you purchase real estate.
People at my full-time job make fun of me for having a bag full of coins to purchase coffee, snacks, etc. I laugh with them, but I'm really laughing at them.
Do what you enjoy doing the most and make a profit from it. If you see how much chicken coops cost you will realize there is a niche in any business. When eggs were $6.50 a dozen last year in CA they were selling like hot cakes.....
Just a few comments:
1. keep the contact info of that manager; call him in 5 years to see how he's doing and take that opportunity to politely share how successful you are. I'm being serious.
2. Self-directed IRA is cool! Do know that there are strict rules on how you can use it on real estate. And as awesome as real estate is, do diversify....pick up some mutual funds, etc.
3. You and your wife are awesome for picking up a house a year! Ramp it up to 2 or 3 per year. And look for some multi-units.
I'm hoping to do the same as you already are. Maybe I'll call your manager too and let him know you inspired me to become wealthy. :-D
Early in the business I was called a slumlord by family and friends. By people who knew nothing about my properties or tenants. Why did they think I was a slumlord - no basis for the statement. Putting other people down is about power. People want to feel like they are smarter or more successful than their peers. When they are not, they resort to insult. No different than what motivates a bully in high school. Jealousy and fear of admitting what a loser they are.
After 15 years in this business, people no longer call me a slumlord. Now they just imply I am rich and greedy. To someone with a poor mindset, every wealthy person is greedy.
I never try to defend myself, because I am a firm believer that success speaks for itself.
People who are not involved in REI always seem to bring up the argument - "Don't you get calls 3am in the morning from the tenant that the toilet is broken?" or "Where do you find the time to screen all those tenant application and do those showings?" or "Do you like fixing broken sinks?"
Once you have a great team and process in place, our experience has been that it's been pretty hands off. For mf properties greater than 10 units, we have property management teams, contractors, maintenance, etc. We underwrite the deals prior to buying with these factors in place. Once purchased and stabilize, we probably spend 1-2 hours a week on managing the manager. We are even rehabbing units and the exterior of the property and that takes up maybe 4-5 hours a week in project management. The rest of the time, we spend finding deals and networking.
It's all about the people and process - having great teams and super efficient processes in place.
@Alan Pederson I know you are trying to help others by sharing with them at work what you are currently doing to make extra income BUT sometimes people are negative and don't want to hear what you have to say OR they are just jealous that you have a side hustle that they wish they could or should have started years ago. I would suggest keeping conversation about your rentals pretty vague and straight to the point. I wouldn't suggest helping anyone at work unless they pull you aside and ask you for advice outside of a group setting. DO this from now on, also the reason I suggest keeping quiet about it is because if they had to do a round of layoffs at work and they know you have something that is somewhat of a cushion they will put you on the list for layoffs because they know if may not have that much of an affect on your retirement or lack of money if you are laid off. Just my suggestion.
People make dumb comments because they are insecure about their own financial situations.