Real Estate Investor · Leawood, KS · Member since 2012 · 37 posts · 6 votes
Has anyone been exposed to the real estae in your twenties article titled "7 years to 7 figure wealth?" I am an eighteen year old looking to start real estate investing and would like to follow this plan. The numbers all seem realistic and it would take $20,000 down payment. I eventually want to own large apartment complexes, but see this as a good way to earn my first million. Comments or suggestions needed.
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
13y
Hey Luke Faulconer - That's me! I kinda feel famous now :)
The "7 Figure" book was my sort of "personal philosophy" for investing. It definitely is "ideal", as all the numbers are nice, clean round ones. Essentially - the book is just the Monopoly game put to real world numbers. I try not to advocate this as a "plan" or anything. Just my thoughts put on paper :) Take what you can from it, add more, subtract. It's just kinda a "big picture" look at how ideal real estate investing works!
Thanks and good luck! Keep close to BiggerPockets and you'll learn a hundred times more than just that PDF! These forums are how I learned how to do almost everything in real estate (plus a million books.)
Also - feel free to introduce yourself over in the "New Member Introductions" forum page! Welcome to BiggerPockets!
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
13y
This is a fun conversation :) So, first off - I agree with Brian Hoyt that these properties are not easy to find and he's right - this might take 14 years. or 30 years. or 2 years. A lot of that is luck, some skill, location, and ambition.
The kind of deals discussed aren't around every corner. My belief, however, is that if someone is looking for one, and only needs to find one every year or two, anywhere in the US, that should be feasible. In fact - there is one that comes almost close over on the BP Blog that I analyzed in a recent video. It's a 4 plex of mostly one-bedrooms for $120 - but there is a 5th unit that has been "decommissioned" - (not sure why) which could mean it might get close and I'm sure the bank would take $100k for it, maybe less.
That said - I have to remind everyone of this - this is a philosophy, more than a blueprint. This is a way of putting into words the math that is often too tough to get straight in our heads. That's why I wrote it - to help me make sense of things. The property types don't really matter- it's the concept. If everything fell perfectly into place, the way this book gives example of, then yes - 7 years to 7 figures would be possible. Will that happen? That depends a lot of personal skill, location, and luck.
For example, I have a triplex, duplex, bunch of single family homes, and an apartment building. The only one that really fits the mold is the apartment building, but I didn't buy it with 20% down - I bought it with 1% down (closing costs) and a bunch of sweat equity. I now have way more equity in it than my eBook talks about. So- the point is - this book is about explaining a concept, not necessarily saying "this is how it should be done." Can it be done in 7 years? Sure. Can it be done in 20? Sure. 2 years? Maybe (if you were really lucky.) Time isn't the issue - Math is.
And to answer your questions Ryan Halverson _
I could trade up to my final anytime probably, but I'm pretty content with what I got. I'm trying to get my apartment a little more "sellable" which takes time. I usually get more than 20% when I buy. I'm averaging right now about $150 per month/per unit on my apartments, and $200 per month on my other ones. I could cut that down to $200 per unit on the apartments - but I didn't put any down payment into it. Had I done so, it would cashflow a little better. The 1031 Exchanges would be tough to perfectly orchestrate, I fully admit. I went job-free and to a job several times during the last few years, but my plan is separate from a job. I completely separate investing for the future and investing for income now. I flipped houses for a while, and still do, but don't love doing it (the labor, anyways.) Hiccups - the fact that I lived off my cashflow for so long. I didn't separate my investing from income until writing this book - cause then I realized how much potential growth I was missing out on my living off my income, rather than re-investing it.
Hope that helps some! Thanks everyone for the good discussion. Keep it going if anyone has anymore thoughts or questions.
And in case anyone missed it - you can get the eBook over in the BP FilePlace!
Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes
13y
Thanks for posting the link Jon Klaus. Brandon Turner this is practically exactly what I wrote 7 yeats ago - great minds think alike. Like Brandon said guys, it's a phylosophy not a blueprint :) It won't work like this, but the point is that if you aim at it, you will hit somewhere close, and that should be the goal. Good job Brandon. Gutsy too, putting yourself out there knowing that Mr. Hoyt is waiting...:)
Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
13y
Originally posted by Brandon Turner:
these properties are not easy to find and he's right - this might take 14 years. or 30 years. or 2 years. A lot of that is luck, some skill, location, and ambition.
!
A lot of investors miss this point!
Anything is possible. So much of what you attain or reach as far as your goals are concerned is determined by your attitude toward it. I voted for Brian Hoyt's comments because he is correct in that not just anyone can hit 7 figures in 7 years. And it is not because they can not do it. It really has to do a whole lot with what Brandon wrote above. A LOT of it is LUCK, an investors skill level, their location in the country and more than anything, their self belief. Whether someone thinks they can or they think they can't - they are right. So can it be done, yes. Brandon has laid out his mind's vision for how he was going to do it. Luke Faulconer - It is your turn now. Write it out. Commit to it and then go to work making your plan happen.
Real Estate Investor · Leawood, KS · Member since 2012 · 37 posts · 6 votes
13y
@Chris Clothier how is the Memphis market for investors? I may be attending Ole Miss for college next year, and Memphis would make the most sense for places to invest outside KC.
Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
13y
Luke Faulconer - Memphis is like many other markets in the country right now. It can be a great market and it can be a miserable market. It all depends on how much time and effort an active investor is willing to put into investing and how much due diligence passive investors are willing to do! I would be happy to help you in any way I can if you want to learn the market. It has some very attractive factors for investors that are rarely found in top 20 (size) cities.
On a side note, my younger brother graduated from the real estate program at Ole Miss and my nephew is going there right now. We have season tickets to Football and go down a lot for Ole Miss baseball. We love Ole Miss. It is one of the reasons I moved back to the south from Colorado. Great campus and really good school with some good programs. You are correct, being an hour or so from Memphis would make it an attractive market to learn as you get started.
