$1,000,000 net worth at 25 years old.

$1,000,000 net worth at 25 years old.

Investor/Syndicator · Cincinnati, OH · Member since 2014 · 470 posts · 599 votes

My goal in writing this forum is to motivate other young people to work hard, take action, and take risk. To show them that you don't have to be exceptionally smart, or have tons of money.

For a long time I didn't like talking about my accomplishments because I would always hear "wow that is amazing for your age". I didn't want to be compared to other people my age because the average person my age is no where near where I want to be. That's fine for them but not for me. I didn't want to be successful for my age, I wanted to be successful period.

Today at 24 years old, I would like to share how I got to where I am today. Bare with me on my writing I am dyslexic so it has never been my strength.

Let's start at the beginning. I was a poor student. I had bad grades in anything involving reading or writing. But man was I good in woodshop. Working with my hands just always made sense I could see the project from start to finish even if it was 1000 steps. I won awards for my projects when I was a freshman in high school. I thought I would be a furniture maker when I grow up. Well as high school went by I decided wood working was a hobby not a carrier. My skill working with my hands needed to be implemented else where. So my senior year I signed up to do the work release program to work half the day and go to school half the day. I jumped as a cleaner/ basic handyman for a small REI. Company. Any time he asked me "do you know how to do XYZ" I said yes ( I had no idea what I was doing). I learned through trial and error, but again this kind of work always came natural to me.

The day I graduated high school my brother and I bought a 4 bed house together ( mom and dad consigned). We planned to live there rent two rooms to friends and renovate it slowly. Well by month three we had added 2 more bedrooms in the basement. So we had 6 guys all in one house. It stayed this way for the next 5 years. My brother and I not only lived for free but also cash flowed on top of it. During those 5 years my brother and I ran a small construction company renovating kitchens and bathrooms. We did all the work ourselves. We learned through YouTube. Trial and error, and failing many inspections. By the end of college we had lived so frugal and had the house hack for 5 years that we were able to save up a chunk of money to get started in REI. Man did we hit the ground running.

In march 2012 we bought our first two properties we bought highly distressed and did massive renovations. All while continuing to take on construction jobs to pay for the next investment. By the end of 2014 we had bought 8 SFRs cash and did the massive renovations to get them rented.

Fast forward to today and we own a total of 18 units 9 SFRS, 2 duplexes, and a 5 unit apartment building.

How did we afford it? We took only what we needed and everything else went back into the company. In 2014 we gave up the construction company to focus strictly on REI. It isn't easy to see all that money coming every month and only take 2-3 hundred dollars to live off for the month. When I say we were frugal I mean it! But we had a goal and building the foundation quickly was required.

We plan to purchase a 10-50 unit building In 2015.

I hope some of you made it through my unorganized ramble and take away that you don't need to have anything exceptional just an unrelenting drive to achieve what you want. I am no where near my ultimate goal but I just now am feeling that we have built a solid foundation to build massive wealth on. To all other young investors. My advice can be summed into one quote " live like most won't so that you can live like most can't" 

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Property Manager · Miami, FL · Member since 2014 · 14 posts · 7 votes
11y

Jerry, my compliments.

This should go to all those young guys complaining about finding a good job and passing the day drinking and playing playstation.

The world is for the smart and determined. I always relied on persistence and you show you have it.

See you around.

Fra

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  • Real Estate Broker · Kensington, MD · Member since 2014 · 84 posts · 16 votes
    11y

    @Jered Sturm  Awesome story!  Keep up the good work.  $200-300 living expenses is an achievement in it's own, I probably spend that at Chipotle monthly...

  • Investor · Gallatin, TN · Member since 2014 · 56 posts · 2 votes
    11y

    great story i am 31 married with 3 children. i am also forming a llc. and would like to say i haven't maid my first investment yet but i am on a aggressive path to buying and holding. in my plan right now if my numbers are correct 1,000,000 net worth in the next 6 retiring in 10 and living the good life and doing something i enjoy doing in retirement thank u for your inspiring post

  • Investor · Los Angeles, CA · Member since 2014 · 180 posts · 72 votes
    11y

    Love it, man. Definitely inspirational. Congrats and I hope for continued success for you!

  • Investor/Syndicator · Cincinnati, OH · Member since 2014 · 470 posts · 599 votes
    11y

    @Brett McCurdy haha never can have enough chipotle! That's were some of my start up money came from. Back in 09 I bought a bunch of chipotle stock. Needless to say it worked out. In a way you helped fund some of my deals thanks bud!

  • Peoria, IL · Member since 2013 · 967 posts · 383 votes
    11y

    @Jered Sturm The financially successful people I have encountered have been pretty frugal.  Which seems kind of boring compared to spending a bunch to try to get a deal - websites - yellowletter campaigns guru seminars etc.

    Thanks for sharing. 

  • Laguna Hills, CA · Member since 2014 · 146 posts · 31 votes
    11y

    @Jered Sturm 

    Excellent Jerry!  Inspirational, I feel the passion in your writing.  Love the roll up your sleeves hard work action and attitude.  Reminds me of a short story told like Napoleon Hill.  Keep it up and check in often to update on your 2015 plans.

  • Investor · Wichita Falls, TX · Member since 2010 · 3k+ posts · 603 votes
    11y

    Way to hustle man! Thanks for sharing and for helping motivate everyone, stories like this help keep us all in the game.

  • Kenneth HynesPro Member
    Rental Property Investor · Easton, PA · Member since 2013 · 359 posts · 92 votes
    11y

    Great work Jerry  you definitely seem to have a plan  and the work ethic and kowledge to make it happen

    Do you still manage your units personnaly or hagve a PM?  As your plans and number of units grow  do you have a PM strategy so you can contencrate on finding and rehabbing units ?

    ken

  • Investor/Syndicator · Cincinnati, OH · Member since 2014 · 470 posts · 599 votes
    11y

    @Kenneth Hynes Great question. Yes we handle all our own property management. I can't say I have a passion for showing properties, or signing leases. However I do Very much enjoy the underlying strategies involved. forced appreciation in Multis through diligent management practices is a very cool thing. For the past year I have been trying to set up as many systems, templates, and automation for the property management side of this business in order to bring on a in house PM when we are financially able to do so. That will most likely be around 30-40 units. We consider outside PM companies, but we both feel in house would better suit our goals. I guess we will have to see how that goes and adjust as we learn. 

  • Real Estate Agent · Baton Rouge, LA · Member since 2013 · 34 posts · 4 votes
    11y

    @Jered Sturm thanks for the advice it helps out greatly. The podcast does help out a lot.

  • Investor/Syndicator · Cincinnati, OH · Member since 2014 · 470 posts · 599 votes
    11y

    Big thanks to everyone who voted and commented. Your words inspire me even more to go out and Achieve my goals. 

  • Newark, NJ · Member since 2014 · 79 posts · 12 votes
    11y

    Thank you for giving me the link to this inspiring story Jerry. I wish I was into building wealth when I was your age. I'm 12 yrs older than you. And I'm just about to start REI. What have I been doing right?

    If you don't mind me asking about the first house you bought.

    How did you buy your first 4 bedroom house right out of high school? Savings?

    How much was the rent each room and how much was the mortgage a month?

    Did those 4 guys know each other before they became house mate? 

  • Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    11y

    Congratulations!

    We have also aways lived way below our means Allowing us to fund our buy and holds. Congratulations on buying the right property and getting a great turn around with the developer.

  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    11y

    @Jered Sturm  that is a very inspirational story!! I went through school in the same position as you not being able to read and write; however, I believe it's the drive and percerverance that gets some to acheve their goals! 

    The McKernan Group4.957 Reviews
  • Investor · Philadelphia, PA · Member since 2013 · 185 posts · 97 votes
    11y

    Awesome story!

    It's really refreshing to hear of someone on here who has "worked" their way into their portfolio, as I hear so many saying that you need to focus on working "on your business, and not in your business". I'm new, so could have everything wrong, but it seems to me that if you want to get started, and experience/time/skill is what you have - then use it. Your story proves it can be done. Good luck with the big investment this year. Look forward to hearing about your deals as you scale up.

  • Real Estate Investor · Yorba Linda, CA · Member since 2014 · 29 posts · 17 votes
    11y

    @Jered Sturm Agreed. Congratulations and thank you for sharing because it inspires us all to make decisions that provides room for greatness. Sometimes, our environments (friends, relatives, circle of influence) do not encourage success. It's strange because if I or anyone of us does well, we are in a better position to give back to those who gave to us.

    Jerry, thanks for being brave and sharing your success! Congrats!

  • Scott TrenchPro Member
    Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
    11y

    This post was awesome.  Way to go Jerry!  Cut expenses first, then scale up with the increasing passive income and asset base that you accumulate along the way!

  • Professional · Pittsburgh, PA · Member since 2013 · 88 posts · 42 votes
    11y

    @Jered Sturm 

    thank you for sharing- that is a very motivating and inspiring story of yours! Keep up the good work!

  • Homeowner · Chicago, IL · Member since 2014 · 36 posts · 8 votes
    11y
    Very inspiring story. Thanks for sharing.
  • bennett, CO · Member since 2014 · 225 posts · 122 votes
    11y

    You are an incredible young man.  Good on you!

  • Investor · Minneapolis, MN · Member since 2014 · 332 posts · 74 votes
    11y
    Originally posted by @Jered Sturm:

    My goal in writing this forum is to motivate other young people to work hard, take action, and take risk. To show them that you don't have to be exceptionally smart, or have tons of money.

    For a long time I didn't like talking about my accomplishments because I would always hear "wow that is amazing for your age". I didn't want to be compared to other people my age because the average person my age is no where near where I want to be. That's fine for them but not for me. I didn't want to be successful for my age, I wanted to be successful period.

    Today at 24 years old, I would like to share how I got to where I am today. Bare with me on my writing I am dyslexic so it has never been my strength.

    Let's start at the beginning. I was a poor student. I had bad grades in anything involving reading or writing. But man was I good in woodshop. Working with my hands just always made sense I could see the project from start to finish even if it was 1000 steps. I won awards for my projects when I was a freshman in high school. I thought I would be a furniture maker when I grow up. Well as high school went by I decided wood working was a hobby not a carrier. My skill working with my hands needed to be implemented else where. So my senior year I signed up to do the work release program to work half the day and go to school half the day. I jumped as a cleaner/ basic handyman for a small REI. Company. Any time he asked me "do you know how to do XYZ" I said yes ( I had no idea what I was doing). I learned through trial and error, but again this kind of work always came natural to me.

    The day I graduated high school my brother and I bought a 4 bed house together ( mom and dad consigned). We planned to live there rent two rooms to friends and renovate it slowly. Well by month three we had added 2 more bedrooms in the basement. So we had 6 guys all in one house. It stayed this way for the next 5 years. My brother and I not only lived for free but also cash flowed on top of it. During those 5 years my brother and I ran a small construction company renovating kitchens and bathrooms. We did all the work ourselves. We learned through YouTube. Trial and error, and failing many inspections. By the end of college we had lived so frugal and had the house hack for 5 years that we were able to save up a chunk of money to get started in REI. Man did we hit the ground running.

    In march 2012 we bought our first two properties we bought highly distressed and did massive renovations. All while continuing to take on construction jobs to pay for the next investment. By the end of 2014 we had bought 8 SFRs cash and did the massive renovations to get them rented.

    Fast forward to today and we own a total of 18 units 9 SFRS, 2 duplexes, and a 5 unit apartment building.

    How did we afford it? We took only what we needed and everything else went back into the company. In 2014 we gave up the construction company to focus strictly on REI. It isn't easy to see all that money coming every month and only take 2-3 hundred dollars to live off for the month. When I say we were frugal I mean it! But we had a goal and building the foundation quickly was required.

    We plan to purchase a 10-50 unit building In 2015.

    I hope some of you made it through my unorganized ramble and take away that you don't need to have anything exceptional just an unrelenting drive to achieve what you want. I am no where near my ultimate goal but I just now am feeling that we have built a solid foundation to build massive wealth on. To all other young investors. My advice can be summed into one quote " live like most won't so that you can live like most can't" 

     Jerry, I owned 60+ properties (commercial and residential) before I was 30 (all self made, I came into the US by myself when I was 20 with $50), and thought that my equity was over 5M. A bit surprised that you owned 18 properties with your brother and had 1M in equity. In 2008 most of my equity was wiped out. Lesson learned is below:

     The true equity is cash or the equity that you will get if you need to fire-sell your investments. Remember this "If you think that you own something, it starts owning you!''

    Don't think about equity, the true wealth is the current value of future cash flows that you can generate!

  • Investor/Syndicator · Cincinnati, OH · Member since 2014 · 470 posts · 599 votes
    11y

    @Pavel Sakurets thank you for your words of wisdom. I am strictly a cash flow investor. As I mention in previous posts in this forum. My net worth is not exactly 1,000,000 but I am also not 25 yet. Also the properties I mention are my LLC's rentals I do hold additional assets. I don't care much about net worth I simply wanted a catchy title that would make people click on this post. If your curious we cash flow roughly 10,000 a month.

    @Michael Quarles  Thank you for your post. I really enjoyed your pod cast. I will be upfront, I have not the slightest clue what your post meant. Was it general advice to a new guy (me)?

  • Investor · Minneapolis, MN · Member since 2014 · 332 posts · 74 votes
    11y
    Originally posted by @Jered Sturm:

    @Pavel Sakurets thank you for your words of wisdom. I am strictly a cash flow investor. As I mention in previous posts in this forum. My net worth is not exactly 1,000,000 but I am also not 25 yet. Also the properties I mention are my LLC's rentals I do hold additional assets. I don't care much about net worth I simply wanted a catchy title that would make people click on this post. If your curious we cash flow roughly 10,000 a month.

    @Michael Quarles  Thank you for your post. I really enjoyed your pod cast. I will be upfront, I have not the slightest clue what your post meant. Was it general advice to a new guy (me)?

     Find deals, buy cheap, resell, repeat. Concentrate on how you can make cash now. Don't think about equity, it could change any day. Create multiple sources of income. And buy and hold real estate only after you are not able to generate income doing wholesales and flips. Andrew Carnegi said: "Own nothing, control everything.'' (Meaning you can control real estate by buying an option to purchase it later and exercise the option when the time is right)

  • Investor/Syndicator · Cincinnati, OH · Member since 2014 · 470 posts · 599 votes
    11y

    @Pavel Sakurets  Thank you for your advice. You seem to have a lot of wisdom in the industry so by no means am I downing your advice, however that strategy may work for you, or Andrew Carnegie  but that doesn't work for my personality, or my goals.  

  • Investor · Minneapolis, MN · Member since 2014 · 332 posts · 74 votes
    11y
    Originally posted by @Jered Sturm:

    @Pavel Sakurets  Thank you for your advice. You seem to have a lot of wisdom in the industry so by no means am I downing your advice, however that strategy may work for you, or Andrew Carnegie  but that doesn't work for my personality, or my goals.  

     It's all good. The best advise that I've ever got was ''Don't listen to anybody, do what you feel is right for you!''

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