I sent @Brandon Turner an instagram DM about a month ago summarizing my first year in real estate. He then shared it and @David Greene asked if I shared my story here on the Success forum. So here goes!
I closed on my first (intentional) real estate investment 13 months ago now. Since then I've acquired a total of 31 doors (a little bad math on IG where I said 30). I have 5 single family, 1 duplex and (what will be) 24 units. Once my 5th SF and the 24 unit are fully rehabbed and rented I should be around $20k/month in gross rents.
A lot of the questions I got from IG I'll answer here:
1. How did you do it?
Well, it's my full time "job" at this point. But how I did it was patience, perseverance and action.
Patience: I've been a member of BP and my local REIA for much longer than a year so I got a lot of education first. I haven't listened to all of the podcasts but well over half. I've read a dozen or so books.
Perseverance: I don't even have a count of how many showings I dragged my agent to before pulling the trigger.
Action: I finally did it! Brandon continually says how you need to get the first deal to get to the second deal. My first deal was an education in and of itself.
2. How did I pay for it all?
This is the part of my story that isn't repeatable as it involves getting run over by a truck and Flight for Life. I am a former FedEx Ground contractor. I grew from one route and truck in 2004 to 30. In 2014 after a work accident I sold about 20 of them I owned locally to recover and enjoy my family. In 2018 I decided to sell the remainder. It was the proceeds that funded my real estate deals. My first deal was a $20k C class single family, that part is repeatable. Nothing glamorous. If you want the gory details on the accident I have a Note of my FB page facebook.com/dnamke
3. How did you find your deals?
3 on MLS
2 Sheriff Auction
In the Milwaukee/Racine area.
4. Gross is great but cashflow is king...
Yes $20k/month sounds impressive but what's my cut? After PITI and 2 full time employees there should be about $6k leftover. Not quite enough for the Mrs to quit her job but it's only my first year...
As an added bonus I also BRRRR'd a bundle of my properties. The one private sale SF I doubled my money on with a mere drive by appraisal 2 weeks after closing and no work done. Not too shabby!
Anything I missed? Feel free to ask here.
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