I see a lot of newer people looking for RE advice, so after several years of RE investing I wanted to share my story to see if it could help others
At an early age I was interested in real estate investing. My wife thought it would be "risky" so I took a slower path at first. I began my first quick flip in 2001, and then took off when I gained some confidence. Along the way, I have flipped some 40 properties but did so prior to HGTV and all the folks who have come out of the woodwork. I have paid massive short term taxes along the way. I found some deals on the MLS but the majority of the very best ones were off market deals. I have worked hard to find deals that were run down off market deals and convinced many to sell directly to me, or carry the contract so they for once could be the bank. I started with a HELOC with only $60k and over the years operated with my personal home HELOC of $421,000 as well as several non owner occupied HELOCS. Bank of America did away with the latter back in 2009-2010. I now have a local bank will do a non owner occupied HELOC on a local 4 plex with massive equity. I have had MANY along the way tell me I am risky or overly leveraged. Even Dave Ramsay would not agree with my RE journey. I took a hiatus from RE investing from 2009-2016. That was not very smart I will admit. I came from nothing and zero family help. I read a few books and my first catalyst was the book, "Rich Dad Poor Dad," and it helped me process that i needed to get outside the box. We just sold a 5 and 8 plex, but we do still own and manage 16 doors, have ownership in a 72 unit building near the OSU campus in Corvallis. Further, we bought into a opportunity zone in Atlanta, GA and a 62 unit building in Cincinnati, Ohio with a BP group cited called SNS Group. So technically, we have ownership in 300 plus units but most my headaches come from the 16 doors I currently manage. I am doing my very last flip right now, which is a 3/2 1500 sq foot house in Albany, Or. It was a off market deal I found word of mouth. It was the most difficult titling mess of them all. A dead aunt on deed, a mother suffering my dementia, a owner who had lived in the house for 20 years, and his dead wife still on deed. I paid $160k and waited a long 9 months under contract. I had to help the seller find a place and i even fronted him some money to move out fully. The house ARV is $400k with $62k of fix ups. So the cost basis is $222k but value of $400k. This would be my best flip ever by a long shot, but i decided to sell to my youngest son for cost to help him start his financial life journey in RE. ￼
I do tell you this to brag, but to help others along their journey.
What I have learned is ￼this. Many people will have and give you opinions along the way, but those same people will be living paycheck to paycheck. Do not listen to people who are not successful. Follow people who are actually doing RE at a high level. Learn from those who are PROVEN! Do not be afraid to actually take the first step! Do not let fear hold you back. I was a guy who only bought deals at a discount. I never paid market price for a property. People have told me my entire life that I am lucky. I love hearing that because I have worked hard to make my own luck! Labor Under Correct Knowledge! That is how to spell LUCK! I have made several mistakes along the way. One time I viewed a duplex and one tenant said, "dont buy this place the plumbing is bad." I walked away and realize this $120k deal is now worth $400k today. I never bought and held houses, although BP teaches the BRRR method. That did not exist back then, and some houses I wished I would have kept. I liked the 4 plex theory instead because if I had one vacancy I knew the others would still carry the property. I failed at buying some opportunities. I failed at scaling up like many preach here. I failed to rip out all my equity to buy more properties. But what I did correct was to always be hustling to find deals. Always worked hard to find a diamond in the rough. I flipped properties so I could generate cash to further invest. I began later in my RE investing career to buy, fix and hold properties. I never let emotions make me pay more than the property was worth. If I did NOT buy under the market, I would not purchase. I worked hard to negotiate my best deals, while making the seller feel good about the deal. Always create a win-win! Find the sellers hot button and make it work. In the end, I am nearly 54 years old, and have many doors in RE and a nice size monthly cash flow. Many say I should retire but I have always enjoyed the RE chase. I have decided to quit flipping as I am too tired of the constant grind. I am self made with no help, money, or advice from family. I wanted to share this with you as YOU can do this! It takes drive within. It takes some discipline, but in the end it takes passion to want to get out of the rat race of your W2! You have to ask yourself, "what is my WHY? Time is your greatest asset so figure out your goals and go reach for them! Do not let others or fear stop you! Be conservative but take the risk. Do not let paralysis of analysis dictate your destiny!￼
@Todd Powell oh, I meant to say NOT writing to brag. I left the word NOT out of my first post. Flip for cash, buy and hold to build wealth! Happy investing you all!
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