Updated over 4 years ago on . Most recent reply
Looking for a mentor to guide me
Hey everyone. I'm Joe, a 27 yo pharmacy manager who is looking to get into rental properties to aid in my pursuit of generational wealth (...well that... and pharmacists salaries are projected to decrease year by year, dropping already from 55/hr to 46/hr in 1 year...).
I grew up helping my dad with his rental properties, he self-managed them all and I loved spending weekends learning new things with him and my other brothers and sisters. After reading BP books, I see that my father was not actually investing, but rather working a second job.
He went from running 25+ rentals to now 2 (sold them to pay for mine and my siblings education) and I have indicated to him I'm interested in getting into the business. He has strongly encouraged me to rethink this due to the fact that I have a stable job, a new family and that the market is "crap" for renters. I believe he is right, that if I do rentals the way HE did it, it may not work out, but I am searching for someone who can help guide me to treat rentals as an investment.
I believe that if I treat it with this type of mindset, that it can (and will) work out. So I guess this is something if a job application for anyone looking to mentor a hard-working go-getter. I have busted my *** to get to pharmacy manager by age 25 (becoming youngest pharmacy manager in my district), and I will bust my *** to get to 100+ doors by 32!
Appreciate any and all feedback!
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- Real Estate Broker
- Cody, WY
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There's a lot to address here, but I'll focus on one thing. Before you get started, you need to figure out "why" you want to invest and what you want your goal to be. You want 100+ doors by 32? Why? So you can brag about the number? What if you have 100 doors but you're running yourself into the dirt, impacting your health from the stress, can't spend time with wife or kids, and only making $50,000 a year?
Sit down for a week or two and really think about what you want out of life. Then develop a plan to get there. For me, the short version is that I want financial independence with the ability to work only as many hours as I want and from anywhere I want, and I want the financial ability to help others with my time or finances. My "shoot for the stars" goal to make that work is $300,000 net income per year with at least $100,000 going towards charity.
Then I have to figure out what it takes to get there. I start off thinking I'll need 100 houses cash flowing $250 a month. But then I adjust my plan when I buy an apartment complex for the price of two houses that cash flows $1,000 and accelerates my growth. Last month I bought a storage facility for the price of two houses and I project it will cash flow more than 25 houses. So my goal remains the same but how I get there is adjusted as I acquire property and experience.
Look at your dad. He thought more houses would mean more money and a better life, but instead he wore himself out. You have to learn how to buy right, reduce your stress by creating systems and processes that reduce your workload, hire things out when your time is better spent on other pursuits, etc. Don't make the same mistakes he made.
I hope that helps.
- Nathan Gesner
