Gutsiest thing you did starting out in REI?

Rental Property Investor · Canton, OH · Member since 2017 · 1k+ posts · 1k+ votes

What was the "gutsiest" thing you did to finally take the plunge into REI?

For me, I unexpectedly lost my job last year and decided to go all-in by investing over 100% of my savings into my first BRRRR. The purchase was also done site-unseen. That was a scary but exciting time! Now I'm working on my 20th door and still growing.

I'd love to hear your stories, and I'm sure they will help motivate others who are afraid of stepping outside of their comfort zone.

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James Wise

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes

Originally posted by @Account Closed:

What was the "gutsiest" thing you did to finally take the plunge into REI?

I'd love to hear your stories, and I'm sure they will help motivate others who are afraid of stepping outside of their comfort zone.

Bought a duplex on a discover card once.

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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
7y
Originally posted by @Account Closed:

What was the "gutsiest" thing you did to finally take the plunge into REI?
For me, I unexpectedly lost my job last year and decided to go all-in by investing over 100% of my savings into my first BRRRR. The purchase was also done site-unseen. That was a scary but exciting time! Now I'm working on my 20th door and still growing.
I'd love to hear your stories, and I'm sure they will help motivate others who are afraid of stepping outside of their comfort zone.
Bought a duplex on a discover card once.
37 Reply
Account Closed
OP
Rental Property Investor · Canton, OH · Member since 2017 · 1k+ posts · 1k+ votes
7y
@James Wise
That's awesome. Hopefully you got the Cashback Rewards too!
14 Reply
Andrew Zannotti
Killeen, TX · Member since 2017 · 127 posts · 91 votes
7y
@James Wise well played sir, well played
1 Reply
Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
7y
I closed on my first property the day after a huge storm. I stopped by the house before heading to the closing and the basement had four feet of water in it. The HVAC and water heater were...well, under water. My agent foot the bill for a home warranty at closing, I rented a pool pump the next day and cleared the water, plugged in the sump pump (contractor left it unplugged when doing inspection repairs), and all was good...limited repairs need. Oh, that house was financed using an 80% first mortgage, 20% 2nd mortgage (could do that back then), and a Discover card cash advance and 401k loan for the rehab. I was clueless.
16 Reply
Account Closed
Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
7y
Starting out I bought a house that was scheduled for foreclosure sale two weeks later using Subject To with nothing down and no money in the bank. Was able to talk the foreclosing lender into postponing the sale so I could come up with some money to bring the loan current.
I don't recommend doing this at home, your results may vary. ;-) The guy on late night TV selling the real estate course said I could do it, so I did, or my version of it anyway.
8 Reply
Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
7y
Got a Heloc, quit my job, 'sold' my house on a lease option, moved 3 states away and bought a doublewide by the river in a trailer park inspected but unseen.
Then I got started with housing costs of less than $300/mo including utilities.
9 Reply
Dean Letfus
Specialist · Memphis, TN · Member since 2012 · 1k+ posts · 1k+ votes
7y
Landing in Memphis from New Zealand and started flipping basically from zero!
7 Reply
Jim Chuong
Rental Property Investor · Toronto, Canada · Member since 2012 · 102 posts · 95 votes
7y
@CJ M. I’m Canadian and dove into the Phoenix RE market in 2009 during the credit crisis and started buying short sales. Nobody was buying anything
6 Reply
PJ Kolnik
Chicago, IL · Member since 2017 · 81 posts · 87 votes
7y
@CJ M. I didn’t have enough money for renovations on my first deal last year so I basically gambled on bitcoin / ethereum until I had tripled my initial $2500 dollars and then pulled it out due to the necessity of paying the contractors. Thank God too, because the prices started plummeting and my initial investment would be worth about 600 dollars today if I had held onto it.
10 Reply
Ryan Dossey
Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
7y
I feel like I've got more of these than I should share lol.
When I first heard about wholesaling I had no cash so maxed out a credit card I couldn't pay off to pay for marketing. Got our first deal and made 10k shortly after.
I went full team in 2016 with $3,000 to our name and 3k in monthly expenses.
We are now at 127 units. Never would I have dreamed we'd end up here when I made those two decisions.
15 Reply
Chinmay J.
Investor · Northern, VA · Member since 2016 · 1k+ posts · 904 votes
7y
Originally posted by @Account Closed:

What was the "gutsiest" thing you did to finally take the plunge into REI?
For me, I unexpectedly lost my job last year and decided to go all-in by investing over 100% of my savings into my first BRRRR. The purchase was also done site-unseen. That was a scary but exciting time! Now I'm working on my 20th door and still growing.
I'd love to hear your stories, and I'm sure they will help motivate others who are afraid of stepping outside of their comfort zone.
Trusted wrong people.. Sometimes gutsiest can be stupidest to right?
3 Reply
Frank Wong
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
7y
I was naive and clueless at 21 and bought my first property. I guess that takes guts to just pull the trigger but in my mind, I didn't think much of it. I already knew I would make it work no matter what.
6 Reply
Josh Eitingon
Rental Property Investor · Massapequa, NY · Member since 2015 · 148 posts · 51 votes
7y
Like @Frank Wong, I bought my first deal pretty young. At 25, living at home, purchased a short sale on a 20 unit, 20% occupied property in Cincinnati. It was pretty successful and was the action that got and kept me in RE.
Like others on this string, #2 was leaving the 9-5 and committing to grow a business.
3 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
bought a distressed triplex full of immigrant tenants in a D class neighborhood with very little understanding of the people ,the area or the property... did I mention I had literally no reserves at all in case something went wrong . God took care of me and I’ve since earned my wings I’d like to think
9 Reply
Todd Powell
Rental Property Investor · Corvallis, OR · Member since 2018 · 840 posts · 1k+ votes
7y
@CJ M. Had been doing RE investing since 2002 and buying got so competitive I took a crazy risk. I heard about this guy successfully buying auction properties so I met the next day with him. Within 30 min of meeting with him I went to keybank and peeled out $130k off my line of credit and bid on the courthouse steps in less than a half hour as he said it was a deal he would buy and fully vetted. Turned out me and the other guy bidding were idiots and I got stuck with a $26k tax lien that failed to drop off like they anticipated. Put all my trust in someone else, never saw or viewed the house. Ended up being a nightmare sheriff sale with redemption rights and courts to work through. My WORST deal ever and broke even and a full 60 day rehab.
Lesson learned the hard way. There was no magic bullet and never put your trust fully in other people. The said investor who criticized me for not taking enough risks is now losing all of his investments and marriage. I did it my way for years prior and still have my 29 doors and partnership in a 72 unit college apartment, and 30 plus flips later.
Gutsy and stupid move and worse RE decision ever in my 17 years and this was only 2 years ago!
3 Reply
Todd Powell
Rental Property Investor · Corvallis, OR · Member since 2018 · 840 posts · 1k+ votes
7y
@CJ M. Some would say this was also gutsy. The last three years I got a $421,000 HELCO on my personal residence. Bought lots of property with down payments and rehabs using this money. Specifically, 3 four plexes, and 50/50 on a 5 plex and 8 plex. I also used a second HELOC from 4 plex to invest. Folks, I owed $550,000 on interest ONLY debt to grow massively!
Due to massive flipping and RE cash flow on my many doors, I now have the $550K down to $150k
Some would say I was stupid and risky but I have more than $10,000 in cash flow and also huge equity in all my projects, some 29 doors!
No risk, No reward. I have always bought off market deals and like buying one dollar for .60 cents.
That is another version of consistent GUTSY.
4 Reply
Account Closed
OP
Rental Property Investor · Canton, OH · Member since 2017 · 1k+ posts · 1k+ votes
7y
Originally posted by @Todd Powell:

@CJ M. Some would say this was also gutsy. The last three years I got a $421,000 HELCO on my personal residence. Bought lots of property with down payments and rehabs using this money. Specifically, 3 four plexes, and 50/50 on a 5 plex and 8 plex. I also used a second HELOC from 4 plex to invest. Folks, I owed $550,000 on interest ONLY debt to grow massively!
Due to massive flipping and RE cash flow on my many doors, I now have the $550K down to $150k
Some would say I was stupid and risky but I have more than $10,000 in cash flow and also huge equity in all my projects, some 29 doors!
No risk, No reward. I have always bought off market deals and like buying one dollar for .60 cents.
That is another version of consistent GUTSY.
Great equity and cash flow! I'm working towards 30 doors this year, but will probably see a few thousand less in cash flow than your numbers (once I get there). Thanks for sharing your journey!
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Todd Powell:

@CJ M. Had been doing RE investing since 2002 and buying got so competitive I took a crazy risk. I heard about this guy successfully buying auction properties so I met the next day with him. Within 30 min of meeting with him I went to keybank and peeled out $130k off my line of credit and bid on the courthouse steps in less than a half hour as he said it was a deal he would buy and fully vetted. Turned out me and the other guy bidding were idiots and I got stuck with a $26k tax lien that failed to drop off like they anticipated. Put all my trust in someone else, never saw or viewed the house. Ended up being a nightmare sheriff sale with redemption rights and courts to work through. My WORST deal ever and broke even and a full 60 day rehab.
Lesson learned the hard way. There was no magic bullet and never put your trust fully in other people. The said investor who criticized me for not taking enough risks is now losing all of his investments and marriage. I did it my way for years prior and still have my 29 doors and partnership in a 72 unit college apartment, and 30 plus flips later.
Gutsy and stupid move and worse RE decision ever in my 17 years and this was only 2 years ago!
Todd was that an Oregon Senior tax deferral ? I got stuck on one of those one time for 95k.. my attorney got it knocked down to 60k and the market was kind to us so we did not loose.. but I learned you have to call the county for those they are not online.. I could not figure out why no one was bidding on this prime Portland west hills home :)
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2 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
I would say one of my gutsiest moves was leaving Oregon and landing in Detroit doing HML s for CA investors.
this was 2002 and it was all BRRR rate and term refi.. when it worked we printed money I mean lots of income.
other one was being the one of the first builder in 20 years to build a spec home on the North west side of Charleston SC northwest of America st and behind the old cigar factory in what was the hood.. Well 30 plus spec homes later and 20 million in retail sales turned out to be a pretty nice move.. but it was a huge risk at the time.
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8 Reply
Todd Powell
Rental Property Investor · Corvallis, OR · Member since 2018 · 840 posts · 1k+ votes
7y
@CJ M. I wish you well. My advice, do not get caught up in the bidding wars MLS game. Look for off market and word of mouth deals. They always are much harder and typically need more rehab and diligence, but I have found them to pay off more. Best of luck!
2 Reply
Todd Powell
Rental Property Investor · Corvallis, OR · Member since 2018 · 840 posts · 1k+ votes
7y
@Jay Hinrichs yes indeed! It was at 1235 Vine St Albany Or, not that I remember. Lol
It was a Oregon senior tax deferral and why the down and dirty titling missed it for my “agent” was that the state attorneys were smart enough to get themselves removed from the said auction. It was accruing for the last 10 years with interest of course! I played poker with the state rep handling this case and even said there were so many issues they could have the house back. Of course, the time I actually found out about the issue, it was in fact already rehabbed. The State would not budge a dime so I said I would not pay and just rent it out until they foreclosed on me. Yeah, major bluff, and then they could spend all that money and then get back a trashed house like the one I bought.
After weeks, I said give me a break here and I will refi and pay you off in escrow. Translation: I am selling the house to a co worker, and you will get the tax lien paid.
I got a mere $3000 knocked down so, it was a $23,000 lesson not the full $26,000. Maybe hiring an attorney would have made sense but I was so wore out dealing with the clowns dealing with courts and redemption rights, I just wanted OUT.
I am one for one on failed courthouse sales. Ironically, I close on a non judicial courthouse from a big portland group called Investor max or Vantage homes. Sean Robbins. You hear of that group as they are working portland area pretty hard. Of course, this will be a clean title at normal closing.
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Ed Malecki
Rental Property Investor · Valparaiso, IN · Member since 2019 · 2 posts · 15 votes
7y
Bought a house, without seeing it, at the local bar using a napkin to write out a purchase agreement. Sale went through fine.
11 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Todd Powell:

@Jay Hinrichs yes indeed! It was at 1235 Vine St Albany Or, not that I remember. Lol
It was a Oregon senior tax deferral and why the down and dirty titling missed it for my “agent” was that the state attorneys were smart enough to get themselves removed from the said auction. It was accruing for the last 10 years with interest of course! I played poker with the state rep handling this case and even said there were so many issues they could have the house back. Of course, the time I actually found out about the issue, it was in fact already rehabbed. The State would not budge a dime so I said I would not pay and just rent it out until they foreclosed on me. Yeah, major bluff, and then they could spend all that money and then get back a trashed house like the one I bought.
After weeks, I said give me a break here and I will refi and pay you off in escrow. Translation: I am selling the house to a co worker, and you will get the tax lien paid.
I got a mere $3000 knocked down so, it was a $23,000 lesson not the full $26,000. Maybe hiring an attorney would have made sense but I was so wore out dealing with the clowns dealing with courts and redemption rights, I just wanted OUT.
I am one for one on failed courthouse sales. Ironically, I close on a non judicial courthouse from a big portland group called Investor max or Vantage homes. Sean Robbins. You hear of that group as they are working portland area pretty hard. Of course, this will be a clean title at normal closing.
Don't know Sean personally I was exiting court house steps when he was coming in. We found it better to use our money to lend to flippers than actually do the flipping :) then I found out of state lending and well the rest is history. . but I know most of the players either from lending them money or partnering with them.. I was the number one buyer for about 3 years in the 4 county pdx metro area. Gorrilla is the big player down your way.. John Hemlick. He wanted to buy into my airplane once upon a time.. so that's how I know him.
the Senior deferral is unique to Oregon and my background was buying foreclosures in northern CA so I had never even thought to look for it. I had another one were no one bid except for a local guy from Romania since it was near his church.. he showed up with a personal check and I got it for a dollar over.. turned out it could be subdivided we did quite well on that one.. but I have lost money as well on these courthouse steps.. I have had everything that can happen to one buying them happen to me.. from houses stripped to the studs etc.
I am know buying in Ohio at courthouse and have been for a few years.. lots of deals there.. and with our purchasing power we do pretty well.
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1 Reply
Karl B.
Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
7y
Great question. I made an offer on a 4-unit (my first multi-family property) from across the country after having seen only one unit (while I was in town a tenant offered to let us look inside her unit).
The owner lived out of state and the property wasn't on the MLS and did not involve realtors.
I bought at a great price. And of course prior to closing there was an inspection (where I saw photos of what needed fixed).
Somewhat gutsy but a big payoff.
3 Reply
Todd Powell
Rental Property Investor · Corvallis, OR · Member since 2018 · 840 posts · 1k+ votes
7y
@Jay Hinrichs definitely a lot more players than when I first begun! The only way to make deals down south from you seems to be off market deals. Tons of work trying to hustle, but I am trying to get all debt paid as I feel a storm could be hitting in RE. IF am wrong, I am still in better financial shape for it. But at nearly 52, I am feeling more tired than ever working a career, managing lots of doors, and flipping for cash.
Thanks for your input!
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