Hello BP community,
I'm a 29 year old lobsterman from midcoast Maine, with an addiction to traveling on sailboats. Two years ago I sailed my 40 foot boat down to the Bahamas for the winter and that experience changed my life. I feel like I finally found my place in life, and that place is under a coconut tree. I have a bachelors in marketing with lots of credits in finance. I've been a self employed commercial fisherman my entire life, since maybe 6 yrs old? I have never filled out a job application and the only job I have ever done that isn't fishing is a three year stint co operating my fathers wholesale lobster business(4-6 employees, 10 million in annual sales, what a headache).
According to the book the millionaire next door, my net worth is above average for my age/income, however I don't like the idea of doing any more physically demanding work than I have to in order to achieve my financial goals. Over the past 5 years my avg income has been over 6 figures and I think going forward I can most likely save 60-80k year for investing(as long as the economy and the lobster population remain constant). My goals are to create completely passive income equivalent to the avg doctors salary after taxes. This year I think I saw that the average doctor salary is around 90k, to be clear, that is what I want to take home after taxes. To achieve this goal in 5 years would be amazing, I really hope that worst case is 10 years. Based on my current savings, my anticipated earnings available for reinvestment, and the CoC returns I'm seeing people achieve on BP, this goal seems realistic in 5 years, iff (a joke for you math nerds) properly executed. What would I then do with my life you ask? Obviously sail the world and have as much free time as I want to pursue anything my little heart desires. I may find I love managing from afar and do just that.
I'm leaning towards buy and hold in the multi family Class B sector. I like the idea of local because from what I have learned of business in my 3 years of running a company is that knowing your market inside and out is the best way to succeed. I feel that knowing all the players, what their needs are, and who is in positions of weakness or strength are the best ways to spot opportunity. I feel that for my personality, investing in outside markets may not be the best fit.
Right now I am in the planning and learning phase. I suppose some wise cracks will say, "the learning never ends!" To which I agree, but also know that my level of knowledge is not at a level where I'm comfortable to start throwing money around. I hope to be at that phase in the next 6 months, but as far as I know, hoping has never gotten anyone anywhere.
I'm looking forward to engaging you in intelligent discussions in the forums, but for now most of my questions have already been asked.
Peace from the Downeast,
Welcome to BP, @Nicholas Olson ! That sounds like a great plan and you will find a ton of good information here.
Hope 2018 is a great year for you!
@Nicholas Olson Sea Change!! That'll do it to you. Amazing how the ocean has created so many real estate investors :)
Always good to see a fellow Mainer on here @Nicholas Olson !
I've dug clams since I was a kid and paid my way through college digging in the summers. I now fish recreationally for both lobsters and clams. It's fun when your lively hood doesn't depend on it and you only go an hour or two at a time.
Its good you've been fishing for a while and have a good income (especially for rural Maine). That's going to help you a lot. There are a hundred different ways to get started, but let me recommend developing a relationship with a good portfolio lender. I'm only working on my third investment property purchase, but the partnership with a good institution is already proving invaluable.
Looking forward to hearing your success stories in the future.
Hi @Nicholas Olson ! Another warm welcome from a fellow Mainer. I love your introduction and you have some great goals there. Good luck to you!
@Nicholas Olson welcome to BP. All I do all day everyday is analyze, underwrite, offer, buy and operate is B and C multifamily properties in Southeast and bit in the midwest. If there's anything I can help you with let me know. Unfortunately, I don't have much experience with markets/properties in Maine or the surrounding areas, but hopefully I can point you in the right direction. Either way best of luck!
Hey there fellow Mainers! There are a few of you actively on here. Excellent excellent excellent.
@Bob Langworthy Thanks for the welcome Bob. Do I understand correctly that you are an accountant who also does REI? We may have to link up in the future...
@John West I have also dug a lot of clams growing up. That is one back breaking job! I don't miss it in the least. I made a connection a few weeks ago with a BP member who recommended Kennebec Savings for portfolio lending. Do you have any recommendations? I completely agree with your advice and I do want to start making connections early.
@Tim McIver I spent 4 years living in So Po attending USM, I love that place. Thanks for the kind words and for wishing me good luck, I may need it!
@Chris Grenzig Thanks for the offer for help. I may take you up on that in the future when I get closer to execution time.
Welcome Nicholas. I wish I had been as financially aware at your age - sounds like you have a great background and experience for the journey.
Not sure where you are looking to invest, but one suggestion I have is to consider property management resources available when making that decision. That certainly widens the range as you don't have to stay in Maine if you feel other markets are better investments. And, if you want to be truly passive investor, and not be on call with tenants, good property management is essential. Somewhere with some competition between well-established property management companies is ideal.
Also... and please know that I am not an economist, a real estate professional, etc. - I'm only speaking from my lived experience/gut, and in consideration of the current political and economic instability... but I am in no rush to buy my next property. I am selling one as soon as possible, and I plan on holding profits for a bit to reinvest, as I want to see where the market goes. My sense is that prices may fall, perhaps dramatically. But again - not a professional, and others might argue counter to this.
In any case, doing research and learning now is a great strategy. And I think no matter what, investing in properties is a good long-term choice.
Best of luck,
I don’t have a specific bank for you. I use First Federal Savings out of Bath, but they won’t go much out of Lincoln and Sagadahoc county (until you have a long relationship built there anyway). I sat down one day and had phone conversations with a dozen or more loan officers before I found a bank that would work for me. The small 3 - 10 branch banks seem to be the best for investors.
Welcome @Nicholas Olson . Commercial fisherman are some of the hardest workers I know, and that mindset will serve you well in REI for sure.
One thing I wish I'd known at the beginning: spreadsheets, and calculations, and all that are based on assumptions. The good news is that your assumptions will getting better with time and experience. The bad news is that sometimes you have to learn the hard way that your assumptions are off. I guess this is a long winded way to say: keep your expectations low for the first few deals. This market is tough, and making money can be a challenge. I look back at our first REI deal and I'm thankful for the value we got from learning some tough lessons, but at the time, that deal didn't exactly work out the way we thought it would when we ran numbers.
I agree with @Tammy Richards . The market is smoking right now (Portland area multis are up over 12% last year!). Given that real estate cycles tend to run 10-15 years, and the last downturn was in 2008/2009, we're probably looking at another downturn in the next 5 or so years. We're still buying when it makes sense, personally, but very few deals make sense.
Not sure what type of real estate you're interested in, but I'm starting to think that STRs are the best way to make money in our coastal Maine market.
Welcome. I’ve seen quite a few properties come up for auction in your area. If you become good in the off market properties there is a lot less competition. There are many opportunities in small towns. Many times very few if any other competitors. First National Bank seems to be the bank of choice for local investors. They are very good to work with. Also you may have the advantage finding good ocean front land that could have very high upside potential.
Thanks for the comments @Tammy Richards and @Katie Magoun . Portland is on fire from what I've seen. I appreciate the words of caution, it's one reason why I'm trying to learn a little more before jumping in. However I do believe that in any market that transactions are taking place there's money to be made. I'm just not sure where in that market I'm going to find my niche. My goal is buy and hold as passive income is my end game, but as @Ed Emmons said, I may have to go off market or try some off the beaten path tactics.
Ed, it's interesting you mention the auctions. When I was a youngster my parents bought some homes from auction and rehabbed them. This was 20 years ago so it's hard to say to what extent things have changed but from what I know they always did well on them. Thanks for the heads up on the Bank as well, First National will be on my short list when it's time to make some contacts.
Welcome to BP! It's great to have another aspiring investor in Midcoast.
A few years ago, I purchased a Triplex in Orr's Island. Short term rentals have proved successful and I'm very satisfied with the numbers.
Lincoln, Waldo, and Knox Counties have shifted to a buyer's markets. This means there is more than 7 months of inventory and signals a great time to invest.
When I was in my twenties, I bought my first multi-unit and I still hold it today in Portland.
If you'd like to meet up in Brunswick, Bath, or Boothbay sometime and talk real estate, then please let me know.
Best wishes to you in the pursuit of your goals.
@Nicholas Olson , when you're looking at banks make sure you interview a bunch of them. Once you get a few that look promising don't feel bad playing them off each other a bit at first. I'd suggest once you get a bank that'll work for a loan that you do your banking there too. It helps build up the relationships that'll help in the future. As has been said in here I'd also steer more towards local/regional banks. You'll be more of a person and less of a number to them that way. Good luck!
@David Marshall Sorry for the delayed comment.. Yes, I'm up for a chat sometime. You must live just north of Portland? Cafe Creme in Bath is a fun place.
@Andrew Magoun Thanks for the info. I'm thinking sometime this spring I'll start reaching out to local banks. I've been with Camden National forever but I'm hearing credit unions are more receptive. Maybe we should also get together for a coffee sometime.. It's funny you made this comment today, I just listened to podcast 55 (literally an hour ago) which was hugely informative on commercial lending.
@Nicholas Olson , if you're in the Portland area let me know. I'd be happy to chat.
The podcasts are a great resource. I've listened to a good deal of them and almost always find something new.
Welcome @Nicholas Olson , very cool story! Glad you're here!
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