My Journey Toward Financial Freedom and how you can do it better!
From the top
I’ll be honest, I don’t remember the first time I thought about the term financial freedom. I don’t even remember exactly why I got in to real estate other than to try something new. I do remember how the journey to financial freedom started, so I’ll share that story.
I didn’t go to college for real estate. In fact, the only schooling I had after graduating from high school was an audio engineering program from a tiny school called Dark Horse Institute in Franklin, Tennessee. After completing the certificate program I knew music would be a wonderful hobby; however, it was not how I wanted to make money. I remember Googling things like “how to make money without a degree,” “best jobs to make six figures,” and other similar searches. Real estate was one profession that kept appearing in my search results, so I decided to learn more about it. I did what most people do when they want to learn more about real estate: I got my license to practice in Virginia. I wouldn’t recommend getting a license if you’re someone wanting to get started in real estate investing, but I didn’t know any better at the time. It turns out getting your license helps and is required for retail sales of real estate—go figure—but it does not provide much of a benefit for investing.
I then spent hours upon hours on websites like BiggerPockets absorbing all the information I could about investing in real estate. I found an article written by Brandon Turner of BiggerPockets that had a list of books for new investors to check out, which led me to read Ken McElroy’s book, The ABC’s of Real Estate Investing. This book helped me focus on the apartment complex niche of real estate. I listened to podcasts while delivering pizzas, read books in the break room, and then tried to meet with investors in my area after work. I also was looking at any deals I could find and running the numbers to see if they made sense. I did all of these things for three years without ever buying a deal. THREE YEARS. Real estate investing can be scary, and there’s even a name for this fear called analysis paralysis.
Nevertheless, I pressed on toward the goal. I knew my purpose in life wasn’t delivering pizzas, manning a drive-through window, or working in a warehouse—these were just stepping stones along the journey. Then one day the right opportunity came along, and all of a sudden, I was invested passively in a 192-unit apartment complex. While this deal didn’t put me even close to financial freedom, it was a springboard toward success because I had learned how to swing the bat.
Getting to your first deal faster
Tip #1
Pick your niche and learn it thoroughly
Most people I talk to got their first deal done a lot quicker than I did. One struggle I had was shiny object syndrome, the disease of distraction. I wanted to learn every single strategy possible to make money in real estate before acting. While there is no problem in wanting to learn more, instead of learning one thing well, I learned how to do bits and pieces of a lot of things. To start off with, it’s much better to learn one aspect of real estate investment. Learn that one niche well and complete a deal before moving on to other strategies.
Tip #2
Get a mentor
Everybody says this, and in this case, everybody is right. All the podcasts I listened to told me I should find a mentor, but it didn’t get through my head until much later. One hundred percent of my success in real estate to this day is because I had a team helping me. I would suggest finding someone in your local market that is a master at the niche you’ve picked and inviting them out to lunch. Ask them as many questions as you can and then pay for their lunch. You should also ask how you can help them, because this will help you gain both experience and a valuable relationship. Now, in my multifamily business, my team has over 25 years of combined experience, and on the single-family side, I have an amazing business partner that teaches me new things every day. These business partners are basically my mentors.
Tip #3
Network, network, network
This tip will get you incredibly far. The phrase, "your network is your net worth" gets thrown around a lot, simply because it's true. Go to networking events, get on meetup.com, go to Real Estate Investment Association (REIA) meetings, go to chamber of commerce meetings, and even go to national real estate networking events and seminars. You will meet people that will help you take your business to the next level. It's a lot easier to find good business partners in places where you're sure to find like-minded individuals. Plus, you can build your contact database for future deals as well.
Finishing up and going forward
Since my first 192-unit deal, I have been able to grow very quickly. I bought a house and house hacked it, I invested passively in a 253-unit apartment complex, I partnered in a single-family real estate solutions company, I closed a 75-unit apartment complex with partners and I’m working on closing another 96-unit apartment complex by the end of the month. My goal is to help someone get their first deal done quicker and more efficiently than I did—I hope this article helps!