Today - at age 24 - I "retired". Here's how I did it.

Real Estate Success Stories 157 Replies

Hey all! Just sharing my story with the hope that it will light a fire under some of you, or keep the one you've already got burning hot. Here we go: 

It all started with a small loan of a million dollars from my dad....okay, okay only kidding!!

Last year I purchased a 4 plex with good amount of money down (20-25%) in East Hartford Connecticut. PP was 200K, and rents were at $3605 a month. I sat on the property for a few months, felt out the tenants and have since then asked a few tenants to leave, or increased their rent as a way to encourage them to find new housing. In the last 11 months or so, I have rehabbed two apartments (10-12K of material, labor done by yours truly) and am now sitting at gross rents just shy of $4,110. Recap - I got a 4 plex, put in 10-12K of rehab to get out an extra 6K per year. I like that ROI!


Most recently I purchased a SFR in Windsor Locks, CT. I'll admit, I'm a huge car buff, and I wanted the place for the generously sized 4 car garage....well, once we got to the inspection period, I didn't think the numbers would work, so I started to back out. The listing agent made magic happen though, and got the sellers to drop the price 60K! I figured that the house needed 30-40K worth of work. This property quickly became a home run deal.

Even though I'm a car guy and wanted that garage badly, I knew I had to mortgage the rest of the house with it...but, what 24 year old in their right mind needs a 4 bedroom house for himself? So guess who got himself a couple of house mates?? This guy! The mortgage and then some is covered, and now I am sitting on two properties, both with what I would consider good equity. One I will likely never sell, the other is more of a live-in-for-free-while-making-a-profit-flip. 

At this point, the money I make as a landlord is getting dangerously close to the money I was taking home from my W2 job as an entry level architect in training in downtown Hartford. I've decided to put that career on hold to develop a property management company here in north central CT. There is no way I could "retire" and sit on my butt for the next 60 years! Plus, I want to buy more cash producing assets, and be my own boss....that takes money! ;)

Here's to financial freedom, my friends!! 

Filipe

860 990 9103 | CT Agent # 0807610, MA Agent # 9557050



Origi?nally posted by @Filipe Pereira :

Hey all! Just sharing my story with the hope that it will light a fire under some of you, or keep the one you've already got burning hot. Here we go: 

It all started with a small loan of a million dollars from my dad....okay, okay only kidding!!

Last year I purchased a 4 plex with good amount of money down (20-25%) in East Hartford Connecticut. PP was 200K, and rents were at $3605 a month. I sat on the property for a few months, felt out the tenants and have since then asked a few tenants to leave, or increased their rent as a way to encourage them to find new housing. In the last 11 months or so, I have rehabbed two apartments (10-12K of material, labor done by yours truly) and am now sitting at gross rents just shy of $4,110. Recap - I got a 4 plex, put in 10-12K of rehab to get out an extra 6K per year. I like that ROI!


Most recently I purchased a SFR in Windsor Locks, CT. I'll admit, I'm a huge car buff, and I wanted the place for the generously sized 4 car garage....well, once we got to the inspection period, I didn't think the numbers would work, so I started to back out. The listing agent made magic happen though, and got the sellers to drop the price 60K! I figured that the house needed 30-40K worth of work. This property quickly became a home run deal.

Even though I'm a car guy and wanted that garage badly, I knew I had to mortgage the rest of the house with it...but, what 24 year old in their right mind needs a 4 bedroom house for himself? So guess who got himself a couple of house mates?? This guy! The mortgage and then some is covered, and now I am sitting on two properties, both with what I would consider good equity. One I will likely never sell, the other is more of a live-in-for-free-while-making-a-profit-flip. 

At this point, the money I make as a landlord is getting dangerously close to the money I was taking home from my W2 job as an entry level architect in training in downtown Hartford. I've decided to put that career on hold to develop a property management company here in north central CT. There is no way I could "retire" and sit on my butt for the next 60 years! Plus, I want to buy more cash producing assets, and be my own boss....that takes money! ;)

Here's to financial freedom, my friends!! 

Filipe

 Congratulations on these deals! You are taking action and doing amazing and that's very inspiring. Keep in mind however that the sweet bank loans with low interest rates are much easier to come by when you have a W2 income and maybe you are not entirely dependent on the cash flow to live on. So maybe hang on to your job for a little while longer while you grow your portfolio or have a strong private lending network :)

Congrats again!!

Congrats! Sounds like you made some wise decisions and found some great deals! Now I need to find a real estate agent like yours!

Originally posted by @Audrey Ezeh :


Origi?nally posted by @Filipe Pereira:

Hey all! Just sharing my story with the hope tht it will light a fire under some of you, or keep the one you've already got burning hot. Here we go: 

It all started with a small loan of a million dollars from my dad....okay, okay only kidding!!

Last year I purchased a 4 plex with good amount of money down (20-25%) in East Hartford Connecticut. PP was 200K, and rents were at $3605 a month. I sat on the property for a few months, felt out the tenants and have since then asked a few tenants to leave, or increased their rent as a way to encourage them to find new housing. In the last 11 months or so, I have rehabbed two apartments (10-12K of material, labor done by yours truly) and am now sitting at gross rents just shy of $4,110. Recap - I got a 4 plex, put in 10-12K of rehab to get out an extra 6K per year. I like that ROI!


Most recently I purchased a SFR in Windsor Locks, CT. I'll admit, I'm a huge car buff, and I wanted the place for the generously sized 4 car garage....well, once we got to the inspection period, I didn't think the numbers would work, so I started to back out. The listing agent made magic happen though, and got the sellers to drop the price 60K! I figured that the house needed 30-40K worth of work. This property quickly became a home run deal.

Even though I'm a car guy and wanted that garage badly, I knew I had to mortgage the rest of the house with it...but, what 24 year old in their right mind needs a 4 bedroom house for himself? So guess who got himself a couple of house mates?? This guy! The mortgage and then some is covered, and now I am sitting on two properties, both with what I would consider good equity. One I will likely never sell, the other is more of a live-in-for-free-while-making-a-profit-flip. 

At this point, the money I make as a landlord is getting dangerously close to the money I was taking home from my W2 job as an entry level architect in training in downtown Hartford. I've decided to put that career on hold to develop a property management company here in north central CT. There is no way I could "retire" and sit on my butt for the next 60 years! Plus, I want to buy more cash producing assets, and be my own boss....that takes money! ;)

Here's to financial freedom, my friends!! 

Filipe

 Congratulations on these deals! You are taking action and doing amazing and that's very inspiring. Keep in mind however that the sweet bank loans with low interest rates are much easier to come by when you have a W2 income and maybe you are not entirely dependent on the cash flow to live on. So maybe hang on to your job for a little while longer while you grow your portfolio or have a strong private lending network :)

Congrats again!!

Yes, valid points. I decided that because I don't have a large salary from my W2 job, I was not very bankable by typical Banks standards anymore. That, combined with the fact that deals are hard to come by nowadays encouraged me to go ahead and put in my resignation two weeks ago. Today was my last day!

860 990 9103 | CT Agent # 0807610, MA Agent # 9557050

That must be incredibly liberating!! Best of luck as you grow exponentially!

Congrats my guy. Think of all the car stuff you can do now!

@filipe congrats! Keep up the hard work! Great story and inspiring

Thank you guys! Now I am looking forward to helping other investors purchase property and help them become financially free as well!

860 990 9103 | CT Agent # 0807610, MA Agent # 9557050

Thanks @Filipe Pereira for sharing your story. Congratulations. Stories like this keeps me motivated to persevere.

@Filipe Pereira I know how you feel. I started just 10 months ago and I have never stopped since, but then again, the market has been going up like crazy so we are riding the wave for now. Being 19 when I started with 0 experience in REI and only a little bit of capital to start, I didn't have much of anyone to trust me. Now being 20, with 8 flips collectively done with my partner and 5 whole sale deals in 10 months... everyone is turning to me for advice and motivation. That is one reason why I came back to BP and started marketing and social media branding, in order to help motivate others and educate them at the same time.

I know exactly how you feel, my ego is too high to have someone telling me what to do. I am humble but I also am very assertive in ways that don't allow me to be bossed around. Being your own boss and working 20 hour days, but growing something that is yours is way more rewarding then just getting some ******** $200 check at the end of the week. If you want to be successful in life, you can't settle and get comfortable, you have to jump in feet first and just go for it. FULL THROTTLE. At my age, I was in a better position than anyone I knew in the sense that I was able to take so much risk that I didn't even know I could take.  But it all paid off at the end. 

Well, enough preaching... Please if you have any questions about REI, please connect with me and reach out. I am a builder/developer so my main expertise lies in that side of REI but I am also very knowledgeable in other aspects of REI, so don't be afraid to ask. Additionally, check out my profile, read thru my forum posts, I am sure you will find great deal of information on there that I tell others since you are just starting.

Don't stop at 2 properties. In the REI world, that is absolutely nothing. Go for more.

Welcome aboard. 

Great story! Wish I was acquiring properties already at that age - by the time pure 30 you'll be in a very good position at this rate.

All the best with the new property management venture. Would recommend doing some reading on SEO/SEM so you can promote that business fairly cheaply :)

Thank you everyone. @Jim S. my goal is to acquire about $1mil worth of real estate by the time I am thirty and pay it all off between 30 and 35. I agree that SEO/SEM is a great way to grow, especially given people's drive to Google everything nowadays...I guess I need a website first.

860 990 9103 | CT Agent # 0807610, MA Agent # 9557050

Congrats @Filipe Pereira !  There is no better feeling than that first Sunday night when it hits you, "Wait a second, I don't have to go to work tomorrow...or the next day."  That is an awesome goal to acquire $1 million worth of real estate.  You can totally do it by 30 if not sooner!

@Kurt Phillips , it's hitting me right now!! This has been one of the most relaxing Sundays in a long time! haha :) :)

860 990 9103 | CT Agent # 0807610, MA Agent # 9557050

@Filipe Pereira Awesome story! I am 22 years old and am looking to do something similar to what you did.  I have a few questions...

1) How much did you save as a cash reserve after putting down the initial 40-50k down payment?

2) How long were you actively looking for your first investment before finding it?

3) How were you searching for your deals and specifically how did you find these two?

Thank you for your time and I look forward to hearing what you will do next!

-Jordan

Congratulations, that's exactly the way to do it, help others as well.

Congratulations on the success. I am actually in the process of buying my first property at age 21. I would definitely like the advice. Knowledge is power. Feel free to help me if you'd like lol.

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