Who is a Full-Time Real Estate Investor?

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Who is a Full-Time Real Estate Investor?

Travis Elliott
Real Estate Investor · Cebu, Philippines · Member since 2008 · 297 posts · 5 votes

First off I hope this is the correct sub forum (BP is over loaded with sub forums)

I am wondering how many BP members live solely off of their real estate. By this I mean a person who doesn't have a job and isn't living off of a trust or some kind of investment other than real estate.

I know only one person personally who is one hundred percent supported by their rentals. He hasn't had since he was twenty and he is in his seventy's now.

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Rich Weese
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
14y

Travis
not sure if I understand your request, but I think a lot of your replies are from folks that are having to flip and work real estate to survive. My story is pretty well known on BP and I actually retired and walked away from having to continue working to survive at an early age.

My timeline is as follows:
1. At 19 (67-69)I went to Brazil to serve a mission for the Mormon Church.
2. At 21 married my sweetheart and tried College.
3. At 22, had a janitorial company and obtained CA real estate license.
4.From age 23 to 29 bought and sold real estate. (lots of real estate!!)
5 At age 29 retired to Nipomo CA owning a lot of real estate and 1.6 million in notes. These were the days of 10-12% interest on notes and HIGH inflation. I was receiving approx 17K per month without leaving my home.

Other than a job as a janitor, and working for a Broker for 2 years, I've never had a job. During the last 34 years, I've continued to dabble in RE with my own properties adding more net worth. I've personally owned over 1000 sfrs and thousands of apts, built 75 spec homes, flipped 30+ homes,and started 2 different property management companies for a couple daughters.

I use 3 different management companies to manage properties and a personal assistant to oversee the managers!

In my spare time, I travel: Have visited 105 countries,47 states (last 3 will be next summer), all the continents and taken 43 cruises. I also spent 6 years as fulltime RVer.

Other than "dabbling" in real estate, I've lived off the income generated and properties owned since 1979. Please count me as the second person you know that has lived completely on my real estate owned and income generated. I'm 63.

It is 4 a.m and I've been up 2 hours. I bruised/broke ribs yesterday and difficult to sleep!

For more info on my RE involvement, check the Meet the Investor section on BP and/or see me in Denver for the BP 1st annual seminar in March. Merry Christmas. Rich

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  • Mic Nguyen
    Real Estate Broker · pensacola, FL · Member since 2010 · 50 posts · 4 votes
    14y

    I have 5 rentals, but also own a real estate company. But to answer your question, I live off of the rental income but when I make a real estate sale as a broker thats my extra gravy that I save towards another rental. Either way, real estate is my job.

    0Reply
  • Mark Yuschak
    Residential Real Estate Broker · Grand Blanc, MI · Member since 2008 · 885 posts · 316 votes
    14y

    I'm a full time investor too. I've been investing for eight years, but really ramped things up two years ago when I got laid off from my day job. Thankfully, I had a lot of experience before I got laid off, so the move to full time was natural. My income sky rocketed after getting laid off!

    60% of my income is from flipping. 20% is from the rentals (I have only 14). 10% is from notes I hold. And, another 10% is from commission income since I'm a broker as well.

    I can't imagine having any other profession and intend to keep this up for a long time! There's nothing better than getting paid well to do your hobby!

    0Reply
  • Ricardo Rodriguez
    Flipper/Rehabber · Chicago, IL · Member since 2010 · 12 posts · 2 votes
    14y

    Not yet as I work full time and in the learning process. But I do know a lot of investors in my area who live off investing in real estate.

    In fact, I know a guy who has 1,500 units. Others with 27, 40, 100, etc. But what I have observed correlates with a lot of the comments here. They fund them using flip money as well as doing lease options inside self directed retirement plans and other strategies.

    I do plan on starting part time and eventually move to do it full time.

    Congrats to all of you who have worked your way to becoming a full time investorand living off solely investing income.

    0Reply
  • Mark UpdegraffBusiness Member
    Real Estate Broker · Rochester, NY · Member since 2010 · 1k+ posts · 695 votes
    14y

    Full time buy / hold with an aspiration to develop real property. I bought my first rental about 5 years ago before the financing dried up. I got a 90/10 through BoA with some sellers concessions. Did the rehab myself while working a 9-5 and got it cash flowing about 1 month after closing. Since then I've used it as the "benchmark" for cash flow in the area a built up a portfolio very close by. I used as much of the 90/10 before it went away, and then on to the 80/20 which slowed me down a bit. I aim for $300 + CF per unit after all expenses (including 25% repair / vacancy off of gross). I have had no trouble finding these deals. The MFRs prove to be about 450 + CF per unit. So they are better, but I'm staying diversified with SFRs & MFRs due to my exit strategy. Once you get comfortable finding deals, others will have confidence in your ability and lend you the cash they're not using. Once you do that you can start making cash offers & hitting the foreclosure market. IMO, the BEST deals can be found via foreclosure!

    I went full time RE investor after getting laid off about a year ago. After that happened I had the time to scout out a county that is about 150 miles away from my primary, and purchase a foreclosure more than DOUBLING my investment. By far my best investment to date. I couldn't have done it with the 9-5.

    Cheers & happy investing!
    MC

    Podcast Guest on Show #112
    Updegraff Group Realty4.746 Reviews
    WebsiteView Page
    1Reply
  • Aaron R.
    Bird-dogger · Atascadero, CA · Member since 2011 · 12 posts · 3 votes
    14y

    Hello,
    I am a Newbie, More learning than earning at this point in time. I have been learning from a new flipper, started flipping this year. Wow exciting and constantly learning more. :cool:

    0Reply
  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    14y

    Cheryl- I've always enjoyed your posts/threads. You seem like one of the more level headed! Your spouse and I are equally lucky- Great partners!

    Travis - lets get together again. Sow me yours (homes) and I'll show you mine. (homes and apts owned, built and under construction). All here in St George. Any other BP members, you're also invited. I have some info and ideas for you.

    Aaron- no problem with the member measuring. You win as I'm short and WAS extremely fat. Actually I enjoyed your post. I wasn't cornered into real estate and would never question reasons people choose what they choose. On the real estate/const licenses, congrats to you as well as the college degree. As I said in previous post, I dropped out of college and got into real estate by accident. Let Brokers license go after 7 years when I retired. Never obtained a GC license(due to unwanted liability) and Built 44 custom spec homes in UT and around 50 in other States. I also agree with your last paragraph 100%.

    Mark and Mark.I don't think I mentioned something that happened to me when I was young. After running a janitorial franchise in SO Cal, the owner of franchise decided to fire me and sell it to someone that had money.(not me at the time!)I had started real estate and was just starting to make money. My wife was working and supporting us. Getting fired drove me into real estate fulltime, like both you. A year later, I had a 30,000 sq foot new office building and 14 sales people. Guess who walked into my door asking for a job? The guy that fired me, Mark Vincent from Yorba Linda, CA. . I took him back.

    Mark U- keep up the good work. Rich

    3Reply
  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    14y

    "I had the time to scout out a county that is about 150 miles away from my primary, and purchase a foreclosure more than DOUBLING my investment."

    Mark Y., What was it about this county that made you so much more successful?

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    14y

    Jon,

    I think it was this one that he is blogging about in next link:
    http://www.biggerpockets.com/blogs/1172/blog_posts/10116-pennsylvania-sheriff-sales-doing-your-own-title-search

    1Reply
  • Travis Elliott
    OP
    Real Estate Investor · Cebu, Philippines · Member since 2008 · 297 posts · 5 votes
    14y

    Rich you have mail

    0Reply
  • Charlie Helper
    Homeowner · Greenwich, CT · Member since 2011 · 4 posts · 1 vote
    14y

    Really impressed by all of you who have managed to go full time. Maybe in the next 5 years but until then my financial needs are still too high, and the rentals are not cutting it.

    0Reply
  • Geri Johnson
    Investor · CA · Member since 2011 · 20 posts · 6 votes
    14y

    I too got laid off from my computer system project manager career in late 2008. Had always wanted to flip houses so I dove in and now I am a full time real estate investor. Have been very successful with my remodels, but just can't accumulate enough capital for the buy and hold model.

    0Reply
  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    14y

    Travis- Thanks for the nice e-mail and writing something in your colleague request. I always feel more interested in the requests when something is communicated other than just a scatterhorn approach. Rich

    1Reply
  • Mark UpdegraffBusiness Member
    Real Estate Broker · Rochester, NY · Member since 2010 · 1k+ posts · 695 votes
    14y

    @Rich, great story! Hopefully I can spread out into a proper office in the near future ;-)

    @Jon - The county is in the highest concentration of Marcellus Shale in PA. The lender was a big bank. Apparently too big to realize that the foreclosed property had more that doubled in value since the defaulting borrower bought it.

    @Steve, correct. It was the foreclosure you helped me navigate :D

    The mineral rights were just assessed for more than the purchase price. I also found a great tenant without advertising. He drove right up when we were rehabbing the property. The CF on the SFR is on par with the portfolio (not including the gas).

    Podcast Guest on Show #112
    Updegraff Group Realty4.746 Reviews
    WebsiteView Page
    2Reply
  • Brian K.
    Rental Property Investor · Buffalo, MN · Member since 2010 · 511 posts · 92 votes
    14y

    I'm a part time investor since '08 looking to go full time in near future, really want the freedom to do what I want to when I want to. I've hit a couple of road blocks but I won't let that stop me, no offers no deals.

    0Reply
  • Andrew Jones
    Investor · Los Angeles, CA · Member since 2011 · 242 posts · 61 votes
    14y

    Not me. I enjoy my career, but I want to be able to retire early and be with my family more. Over the next ten years I will be buying 2 properties a year and hopefully be able to replace my current income with passive income.

    0Reply
  • Kevin C.
    Investor · McKinney, TX · Member since 2009 · 405 posts · 160 votes
    14y

    Congratulations to all the full time RE investors here on BP.

    My goal is to get there as well, but it's been slow going....

    0Reply
  • Geoffrey Murphy
    Real Estate Investor · Hartford, CT · Member since 2011 · 222 posts · 17 votes
    14y

    Almost! :)...just spinning the wheels Day in Day out and i WILL soon be able to say i am a full time Investor as well!

    At least we know its possible! :)

    0Reply
  • Al Williamson
    Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
    14y

    I'm not full time yet. I built up enough passive income to retire my wife.
    Hopefully within 4 years. Nice thread

    1Reply
  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    14y

    My goal is to be a part time real estate investor. Part being about 5-10% of my time.

    3Reply
  • Andy M.
    Investor · Farmington, UT · Member since 2011 · 314 posts · 179 votes
    14y

    Interesting thread. I'm full time and have been since 2004 when I got fired. ;) luckily I started investing in 2003 and had enough income from real estate and low enough expenses to be full time. I've never looked back. I currently make most of my income from flips, wholesales, and loans, but I'm starting to increase my monthly cash flow from rentals as well.

    1Reply
  • Account Closed
    Indianapolis, IN · Member since 2008 · 244 posts · 36 votes
    14y

    I've been fulltime since 2008. Every year has gotten better with my buy and hold and flips. I jump head into real estate and it's my passion so I does not feel like work. Currently deployed to Afghan while in the Army Reserves and still running my business. I can't wait to get home to improve on my business even more.

    3Reply
  • Kevin C.
    Investor · McKinney, TX · Member since 2009 · 405 posts · 160 votes
    14y
    Originally posted by Jon Klaus:
    My goal is to be a part time real estate investor. Part being about 5-10% of my time.

    Ahhh... Reading between the lines, are you saying you'd like to be a full time REI but with that only requiring 5-10% of your time?

    I like that!

    1Reply
  • Brian Beadle
    Involved In Real Estate · Omaha, NE · Member since 2012 · 140 posts · 34 votes
    14y
    Originally posted by Andrew Jones:
    Not me. I enjoy my career, but I want to be able to retire early and be with my family more. Over the next ten years I will be buying 2 properties a year and hopefully be able to replace my current income with passive income.

    AJ- I just read a book that had that exact formula in it and the number were quite mind-blowing. I may seem like an easy task but the reward is exponential, literally. I wish you luck my friend!

    0Reply
  • Travis Elliott
    OP
    Real Estate Investor · Cebu, Philippines · Member since 2008 · 297 posts · 5 votes
    14y
    Originally posted by Brian Beadle:
    Originally posted by Andrew Jones:
    Not me. I enjoy my career, but I want to be able to retire early and be with my family more. Over the next ten years I will be buying 2 properties a year and hopefully be able to replace my current income with passive income.

    AJ- I just read a book that had that exact formula in it and the number were quite mind-blowing. I may seem like an easy task but the reward is exponential, literally. I wish you luck my friend!

    Brian what is the book called.

    0Reply
  • Brian Beadle
    Involved In Real Estate · Omaha, NE · Member since 2012 · 140 posts · 34 votes
    14y

    It was called 'The complete guide to investing in rental propeties'. It was quite basic, but I am still very new to the rental game so I enjoyed it.

    0Reply
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