Rages to riches, or at least fairly wealthy

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@Jasmine Russell started with no money, bought my first condo for my grandparents that were renting using credit cards. Refinanced 6 months later usinga heloc. A few years later I bought a 4 family, 3 family, sfh and a condo for myself all in one year in nyc using the heloc and credit card for the down payments. These were section 8 rentals which were a big headache, so i eventually sold for a profit and bought sfh's in Oklahoma city and Orlando. Survived the crash but rents were flat and costs were up so cashflow suffered not to mention a few bad tenants with high turnover costs soured me on residential real estate.

I tried alternative investments, some worked some didn't, some turned out to be scams. Worked a lot of hours consulting at my day job to pay down the mortgages.

Eventually sold all the residential properties and bought a commercial 40k sqft warehouse which i rehabbed and sold for a big profit. Now in cash looking for my next commercial deal.

Originally posted by @Jasmine Russell:

@Jay Hinrichs thank you!! If you have little, mindset and strength is everything. No room to be off at all. This is part of the reason I'm asking you all questions.

"As God is my witness, and God is my witness, the Yankees aren't going to lick me. I'm going to live through this, and when it's over, I'm never going to be hungry again. No, nor any of my folks. If I have to steal or kill -- as God is my witness, I'm never going to be hungry again."

Originally posted by @Jasmine Russell:

I'm wondering if anyone would like to share a short cap of their story. Have any of you started Real Estate with no money or very little? Where are you now? What niche did you start in? I don't buy into all the hype videos and programs for success. I want to hear REAL stories from REAL people!

 My wife and I and our kids moved to Ohio 25 years ago. We were broker than a tooth fairy in a meth house. 6 of us in a 2 bedroom duplex. Clipped grocery coupons to feed us.

Started buying and selling cars out of my driveway, did ok. Started a small car lot. Did ok again and saved money buy deferring just about every luxury. Paid cash for our next residence , a four bedroom 2.5 bath house in 2001.

Started buying real estate as an investment during the great financial crisis. Picked up every bargain I could. Mortgaged the first few, then paid cash. Now have over 140 doors paid for. Pay more in income tax then I believed I could ever earn in a year.

Only in this great country is my story possible, and I am indeed grateful to it.

@Jasmine Russell no $ now multi millionaire. I think the key is grit and staying in the middle. And most importantly, being good to people.

@Jasmine Russell, I appreciate your topic that you bring up.  There are many books on the topic and everyone has a different story about where they started.  For me, I wasn't broke, however, I sure felt like it as I was working a lower paying job, have a wife that was also working, and two little ones that required excessive daycare costs with no family in town.  I won't pretend like I wasn't "comfortable" because it's subjective.  I talk about it a bit on my start on our Podcast called Wealth Watchers. The main thing is that there are solutions everywhere and with a bit of hustle, it's always possible.  For me, it was a bit of sacrifice and mindset to work around spending and saving habits.  If you make more, it shouldn't mean you need to spend more.  Be minimalistic and allow time to work on your side.  Don't expect solutions and results immediately.  If you keep saving for a goal, you'll allow yourself the ability to invest into your next deal.  Our first goal, which seems high at the time, was to buy a house a year for 10 years to end up with 10 homes.  That was quickly passed and another was made.  Keep in the game if you're serious, and you will be successful.

@Jasmine Russell I've done 14 flips just this year with no money of my own and a poor credit record.

Basically I reached out to people I know that have money and I took a risk. I offered doing everything and taking on a Hard Money loan (using perfecto Capital at the beginning, the so not check your credit also they are great to work with), for 50 percent of the profit. They put up the money that was needed for the deal (between 30k and 50k) and I do everything else.

So the biggest thing Jasmine that worked for me is that I found out, from other people, that I come across as a trusted person. It seems easy for people to trust me. That has helped. I have now 12 investors that are doing business with me.

Here is the best bullet point advice I can give you:

1. Build trust with people.

2. Be transparent in the process.

3. Be a problem solver

4. Never dispare no matter what happens

5. Have good contractors that you build a relationship with.

6. Be ready to sacrifice some of your profits to keep your investors happy.

Let's connect and I can share much more info if it helps you in your journey or in getting started with a flip.

Originally posted by @Jasmine Russell:

Saving money over time is good but in my case it's not a realistic option for success. I'm no longer in a 2 income home. It's my 5 children and myself.

Just being able to find the time to be on here at all, not to mention starting and engaging with a couple popular threads is amazing.

My story isn't really relevant (other than having little $ in the beginning) except that we worked hard minimizing the big expenses like housing and vehicles.   

We moved down to a doublewide in a park with 2 kids to reduce our total housing cost to $285/mo, including utilities.  We brewed our own coffee and made all of our own food.  Brown bag lunches for 5 years straight. A date was frisbee at the park, Christmas was a craft type thing. 

For RE, wholesaling (your stated niche) done right is a great way to go I would think.  It's just very comprehensive so tough for the new to grasp all aspects. 

The BP Money podcast has had a few great single mom guests that are out there succeeding.  Here's just one I found.   We are here for you👍 

 https://www.biggerpockets.com/...

@Jasmine Russell

Started in college with nothing, found a real estate mentor, saved up the little I had, started cold calling and found a great deal, partnered with my buddy who had a W2 and went 50/50 to buy my first triplex. Then got into airbnb rental management/arbitrage and saved up more money. Got my real estate license and grew my sales business as my management company continued to grow. Then started buying more rentals with the additional cash and experience I had. Now own 17 rental units and manage 100+ Airbnb’s. The goal is ownership, cash flow, equity, and creative real estate for my real estate goals.

Parents divorced and I bounced between them 1 was postal worker the other a teacher.

After my own divorce I was unemployed at 36.

I started my own taxi company with my car and slowly grew it to 65k. a year kind of job.

Had no retirement plans and decided to live on half my salary and save.

At 40 I took my life savings of about 100k and bought a 5 unit in cash- I found cheap. Slowly rehabbed while it was rented.

Then when Corona hit I lost my business, but I had been living on 25k and saving the rest.

That year I saved 40 plus earned 25 on my 5 unit and liquidate the business and bought my home for cash no mortgage.

I started a job earning 75k plus my 25keach year from real estate and I'm happy to say I'm shopping now for larger properties and in a position to put half down.

I don't feel successful yet lol but I've come a long way.

My goal is a passive income of 75k which will allow me to have a second condo and still save some.

@Eric Michiels this is amazing advice! Thank you. This is just naturally what I've been thinking is priority so that makes me feel like I'm in the right field. It must take A LOT of trust AND interest to get that kind of backing. Could you explain more specifically how you put yourself out there? We're you an agent? How did you get your foot in the door in real estate? I'm very curious about your story! Thanks for commenting

@Edward Dandrea what an awesome story! I'm hearing a lot about people having their own business or a good job before they started real estate. I'm still not sold on the wholesaling gig. I'm obsessed with finding a creative way to start this process. I've work on myself the past 2 years. I invested time in my mental health and my focus and put any thinking of a career aside. It was a good thing I did. Now I feel strong enough to build something! I purposely decided to do things this way. A house will fall without a good foundation. Same with an empire. My foundation involved my mind. I also went through a messy separation from my marriage etc etc lol. But I'm so glad that I'm ready to start making money. I've had to hold myself back and refocus intentionally for 2 years!

@Jasmine Russell

Don’t know your situation but I think a house hack is always a solid entry plan. I personally only favor multiple unit properties, they just make more sense to me.

@Jasmine Russell I'll gladly share with you.

So I did a list of people I know. I went over my LinkedIn connections, facebook, and phone and created an email saying I was doing this (I can share the email with you on a DM, but it wasn't anything fancy.

I emailed about 40/50 people, a lot of no's, maybe at another time or just never heard back. But 4 people replied and that's how it got started.

So this is how it works:

1. We reach an agreement. They put up $40k to $50k. I get the loan from the hard money lenders and I'll do all the work. We split the revenue 50/50.

2. I have an excel spreadsheet that a wholesaler showed me where I input the purchase price, the rehab value and the Arv and I can see the amount needed to do the deal and how much money we stand to make. I can share the excel with you.

3. We create an LLC. We use activefilings.com for $100 to $300 and we get the LLC in 3 days.

4. We open a bank account. This depends on the investor but one of the things I tell him is that I don't necessarily need access to the bank account if they want to manage the money and the payments it's up to them. That creates trust because I don't control the money they do it. But once trust is established they will want you to manage all the payments because they don't have the time to be paying what needs to be paid.

5. Once we have LLC, funds in the bank i find a house, either with wholesaler or with real estate agent.

6. When I'm in The House I ask my GC to go to the house and give me a quote.

7. I plug in the numbers in the Excel spreadsheet and if I feel it's a good deal then I share it with them and if they say yes we send the earnest money and get the ball rolling.

8. We wire earnest money.

9. We should have 10 to 15 calendar days to get the funding with the harmony lender so that we can close the deal.

And that is the general process. If you need additional information let me know and I'll gladly share with you.

@Eric Michiels this is GREAT information! I will gladly accept any of this over DM. Thank you so much! I love that people are so willing to share their knowledge and experience. That is how I plan to be. I believe in encouraging people and giving back. I love that I joined BP. My hope in humanity is restored a bit 😅. I'm starting to understand why I'm scatching my head at the majority of people that I encounter (in life in general). I see now that my mentality is set up for success and I'm a minority (in the way I think). This platform is like a gold mine to me right now! fyi, I live in a small town. Many people in small town have small ideas 💡. Engaging with you all has been exhilarating. I remember talking to a friend a while back about all these ways to make money. She just looked and me and laughed and said "you know all these ridiculous ideas are unrealistic, just get a normal job and your life will be easier". I told her that sounded like dying slowly to me and I WILL not 🤣. This thread has been great. Thank you all! I will be asking some more questions soon!

HI J,

I started 2012 i sat with clients and the wealtist ones all invested in RE. Prior to 2012 I read 10 different books on successful RE men and women 2012 I started tiny with 115k and added 15k fixing up small Brooklyn studio coop. Than rented it out for 3 years, than bought another for 450,000 or $112,500.00 down 3=2 friends and me. The first deal was $30,000.00 down both were sold 2016 and trade up to 4 bigger properties and my friends gave m e more money. Obviously 30k became 110k net profit and 112,500 became 435,000 gain that was first two I did, than many more after just a small idea. Bottom line I had to build cash make 2 very solid picks...... 

@Jasmine Russell great thread and follow up! I can feel your energy and it is awesome!!!!!! Your definitely on to something here!! Reading this thread has me pumped for sure!

My story in RE is just in the beginning looking for my first property and I know it is right around the corner. Any way I slice it I'm still fortunate to be at this spot. 5 years ago, thanks to a bad RE move we where homeless with a 2 yr old. Talk about a kick in throat!! But you know, there isn't good or bad experiences in life they are all LEARNING experiences!! Boy did I learn a lot fast and in the end we will be in a better place thanks to it! Fast forward to now in we are in a place to be the first in both our families to own anything let alone RE

Keep at it and it will come. You are headed in the right direction!

Best wishes

Originally posted by @Jay Hinrichs:

I would say that most of us fall into that category of course success is measured individually.  However unless you inherited a big chunk .. most of us started somewhere .

Myself I lived at home got my RE license and started selling RE at 18 and never looked back..  but I have also lived and worked through 4 major business cycles and took my lumps like many others..

So been very good times and been some pretty low times in this industry.. with 08 to 2011 the worse of the worse and basically in every decade i worked I had great years as well.

we all measure success differently..  myself my main goal was to put my kids through collage on my dime. I did that and gave them a great foundation to go forward with and that is/was more important to me than anything.

Stay healthy  give back  try to keep a good reputation in these days of social media  etc. 

 Good words, Jay!  Thanks for sharing your journey with us!

@Jasmine Russell

My wife and I started from absolutely nothing and now have $2,000 passive from rental income. Purchasing a $500k personal residence in AZ, under contract on a single family which we intend on building 8 units on, have one flip under construction snd are making an offer on another flip today which pencils out to $75k gross profit (pre-tax). So I would say we pretty much have a rags to riches story in the works. When we started we lived in a one bedroom apartment with our 3 children and one on the way. We busted our assess to get where we are today. We have a net worth right now of probably just Under $250k but if you know where we came from you would know this is amazing.

You can do this is you just put your mind to it. I always planned on investing Since I was a kid. It took me a little longer since I took a few detours in life but here I am doing it. My only job is investing I don’t have a w-2.

You asked about if it’s possible for someone, without money to save, to be able to invest and 100% it is! Change your mindset to I will get a deal and I am worth it and I deserve freedom. You will see that you can do this with your 5 kids and no money. It’s not going to be at all easy but it’s doable!!

Originally posted by @Jasmine Russell:

@JD Martin thank your yes I'm sry! I haven't listened to your story yet. I honestly can't figure out how to find your link🤦‍♀️😄. I'm still trying to learn how to use this app. Thanks for sharing that. Now I NEED to hear it! Asap

Podcast 243 - click or tap here

@Jasmine Russell

Don’t let being from a small town deter your path to success. The wealthiest man I know still lives in the same small town he grew up in (300 people back then, 3,000 people now). He tells me stories of the negative people he had to overcome. Every time he built something, bought something, flipped something, people said “that’s the last thing he’ll ever do in this town.”

3,000 units later he’s worth we’ll north of $100 million. Still lives in the same modest house he built in 1985.

Small towns can be a great incubator for big ideas! Keep charging.

Originally posted by @Jasmine Russell:

@Eric Michiels this is GREAT information! I will gladly accept any of this over DM. Thank you so much! I love that people are so willing to share their knowledge and experience. That is how I plan to be. I believe in encouraging people and giving back. I love that I joined BP. My hope in humanity is restored a bit 😅. I'm starting to understand why I'm scatching my head at the majority of people that I encounter (in life in general). I see now that my mentality is set up for success and I'm a minority (in the way I think). This platform is like a gold mine to me right now! fyi, I live in a small town. Many people in small town have small ideas 💡. Engaging with you all has been exhilarating. I remember talking to a friend a while back about all these ways to make money. She just looked and me and laughed and said "you know all these ridiculous ideas are unrealistic, just get a normal job and your life will be easier". I told her that sounded like dying slowly to me and I WILL not 🤣. This thread has been great. Thank you all! I will be asking some more questions soon!

 Never take financial advise from someone worse off than you or worse off than where you want to be. 

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