$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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  • Toronto, Ontario · Member since 2014 · 615 posts · 172 votes
    11y

    @Jerry Stone

    This is very impressive, and with your razor sharp focus, this is just the beginning. I am late entrant and this gives me hope and courage.

    Thanks for sharing.

  • Buffalo, NY · Member since 2013 · 49 posts · 22 votes
    11y

    Really inspirational and very impressive.

  • Investor · New York City, NY · Member since 2014 · 370 posts · 85 votes
    11y

    Great job!

  • Real Estate Broker · Laval, Québec · Member since 2014 · 183 posts · 59 votes
    11y

    Thank you for sharing your story it reminds me very much of the autobiography of Benjamin Franklin and his principals of success. 

  • Real Estate Investor · Clovis, CA · Member since 2014 · 195 posts · 194 votes
    11y

    @Pavel Sakurets

    Sounds like you have an incredible story, and you gave some amazing advice! Have you ever thought about writing a book? I don't understand how SO MANY people don't see any opportunities here anymore and stand around with their hands out! You come here from another country with $50 bucks in your pocket  and buy over 60 properties with millions in equity, at the time, in less than 10 years!

  • Investor · Minneapolis, MN · Member since 2014 · 332 posts · 74 votes
    11y

    A book? 98% of people thinking about writting a book, but only less that 0.5% do.

    How about a movie? :D

    Yes, I thought about a movie 7-8 years ago, but realized it was for my own ego, so I dropped that idea, maybe when I will be 50 years old and will not have anything better to do :D

    I didn't mention that when I was coming into the USA I borrowed $1500 from my friend's friend that I never met at 20% interest per month, yes per month and promised to pay it back in 3 months.

    And now my friend who asked his filriend to lend me money came into the U.S. 7 months ago and manages my www.LiquorLiquidators.com he is staying with me before he could be on his own. Life is a very interesting journey! 

  • Investor · Minneapolis, MN · Member since 2014 · 332 posts · 74 votes
    11y

    $1500 was borrowed to pay for the air fair, both ways.

    Another fact, that when I was on the air plane to NY, I met a guy who went to the same university as I did in Minsk and after he found out that i only had $50 he said: " man, u would not have enough to pay for the cab from JFK to NY and he gave me $1000 even though we just met and said that he knew I would pay him back"

    Ow, I get goose bumps when I remember this all, and he was a best man at my wedding.

    I met a girl at the wedding who was a nurse, had a houses and a new car. I was working at 3 Joe (painter during a day, dishwasher in the evening and janitor at Target and night) :) plus I was on student visa and didn't have a green card.

    So, we met at the wedding on August 17th 2001, I proposed on September 17th, and we got married on October 27th 2001. Btw, my future wife was married to the doctor and got married with a janinor :)

    We have 4 girls now 3, 5, 7, 10.

    Yes, it's unfortunate that many people complain about life here, I suggest to everyone to go to Belarus and see how families could live on $150/month. And then come back to US and realize that they live in paradise! 

  • Investor · Palmetto, GA · Member since 2014 · 190 posts · 77 votes
    11y

    Great Story Jerry,

    Not only for the young people but I am in the 3 quarter of my life and I am doing something similar. Focus and the desire to build something greater for your next generation can be a great motivator. Keep up the good work.

  • Investor · Palmetto, GA · Member since 2014 · 190 posts · 77 votes
    11y

    Well said.

  • Flipper/Rehabber · PA · Member since 2010 · 60 posts · 8 votes
    11y

    maybe I missed it along the way but do you own all of these free and clear? If not than how could you have a net worth of over 1M or is that the value of your portfolio at this current time ?

  • Investor · Des Moines, IA · Member since 2014 · 238 posts · 230 votes
    11y

    @Jered Sturm  great story, appreciate the share but... as a fellow young achiever I would caution your desire to share experience and even "generalized" numbers. They bred jealousy and beg too many questions esp among friends. Sharing knowledge is a great way to do the same without giving away semi-private information... It is my opinion, that only a handful of individuals should know net worth or monthly cash flows: lenders and spouses.   Sure, there are exceptions...

    That said, I am in a similar position and am also 24. My wife and I are in it together; she is in grad school to become a Physician Assistant. I am a licensed broker and general contractor... We have 20+ active rental units (many single family, couple duplexes, couple 4-units) and presently a 24-unit apartment building under construction. We started in a similar fashion, with an full-gut REO freshman year of college (with the help of our parents, we were only dating at the time) once finished we lived there and leased to several college kids. Concurrently I was mentoring with / consulting for a local investor I met through college (the perks of having a RE license and growing up in the trades), eventually these lessons led me to be purely self-sufficient. We fuel the hold-capital machine with flip properties proceeds and monthly cash-flow.

    We self-manage our properties: somewhere along the post you mention transitioning to a PM down the line. Remember, you are your number one employee. No one else will work harder to make you money.  In the case of property management, think long and hard before you release the reigns.  Cash-flow and forced appreciation is your life-line to keep the cogs turning. Yes... there is a point where your time will become more cost effective somewhere, but make sure you automate as far as possible!

    Last but not least, make sure you have a scaleable accounting / filing solution. My biggest time-suck in the last year was reorganizing the way I file information. QuickBooks, payment portals, and cloud storage have revolutionized the way I track data and manage paperwork!

    Congratulations on your success and keep up the hustle!

  • Brooklyn, NY · Member since 2015 · 1 post · 0 votes
    11y

    Hey Jerry,

    That's a very inspiring story. I own a construction company myself and plan on getting into the flipping house thing by end of summer and make that my main business.. I wish you all the best and this story definitely motivated me to not by the porshe I wanted this year.. Haha

  • Rental Property Investor · San Antonio, TX · Member since 2015 · 272 posts · 50 votes
    11y

    Congratulations. @Jered Sturm 

    This story is very inspiring because I am 14 years old and hopelfuly by the end of the year my dad and I will do our first flip.

  • Investor · Front Royal, VA · Member since 2013 · 586 posts · 418 votes
    11y

    Awesome story. Disproves many claiming they need higher degrees and continued education to make millions. 

  • Rental Property Investor · San Antonio, TX · Member since 2015 · 272 posts · 50 votes
    11y

    @jerrystone

    Your story is so inspirational that I just has to say congratulations again.

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

    Thanks everyone. With all the things said I appreciate every last bit of kind words and advice. I would like to clarify. I invest for cash flow. Net worth was just a product of it. My net worth never actually reached the 1m mark, and I continue to pull out equity to buy more property to increase my cash flow. 

    I took an ultra conservative route to start however I do not advise the same for others. I took that route because I had no other option. I didn't have much money and no lender would even look at my self  employed inexperienced self ( rightfully so) The equity I have was/is 70-80% sweat equity because my unfair advantage and really only advantage at the time is myself and my partner can build a house from the ground up with out subs and would pay ourselves nothing. Now that I've estabished my self I am pulling equity out as quick as I need it to purchase the next cash flowing property that meets our standards. 

    And one last thing to all the beginners. This is not an easy path to money. It's long and difficult. It takes tons of sacrifice.

  • Investor · Austin, TX · Member since 2014 · 13 posts · 5 votes
    11y

    @Jered Sturm Congrats! It's so exciting to see such a large amount of sacrifice over a relatively short amount of time (5-6 years living on nothing) amount to such a big goal. I am on a similar path in my mid-20's although I will admit most of it has not come from real estate but I am now looking to real estate to diversify my assets. 

  • Real Estate Investor · Los Angeles, CA · Member since 2013 · 18 posts · 8 votes
    11y

    @Jered Sturm 

    Congratulations! Thank you for sharing. I myself am currently purchasing my second residential property and I'm looking forward to this new adventure. My goal is to one day own an apartment building that will provide enough cash flow to help support my family. I enjoy reading stories like yours because they are very inspiring and they also help me look beyond the hurdles that are sure to come along the way. BTW great quote! :) Once again thanks for sharing and good luck!

    Jim 

  • Investor · Orlando, FL · Member since 2012 · 822 posts · 303 votes
    11y

    @Jered Sturm 

    Too bad you don't live in Orlando buddy, we would run the town! 

  • Ben HanveltPro Member
    Investor · Mikana, WI · Member since 2014 · 13 posts · 12 votes
    11y

    Have you thought at all about selling all you SFR and put that money towards apartments? Also, if I understood you correctly you pay cash for all your purchases, or at least at the beginning. What was the reasoning for this? I understand wanting to have equity in your property but with your skill set it seems logical to me that you would buy larger distressed properties and get sweat equity in the building. I also own a construction business and buy rentals with my brother, dad, and one other partner. I have a hard time looking at a SFR and making the numbers look worth it unless it's to flip into a larger building of some sort.

    Great story, gives all of us something to shoot for.

    Ben Hanvelt

  • Flipper/Rehabber · Miamisburg, OH · Member since 2014 · 161 posts · 64 votes
    11y

    @Jered Sturm pretty cool that your story got sent out it the BP email!

    We need to get together again for another round of drinks!

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

    @Tim G.  That is really cool! I didn't know till I read your post. Drinks would be good. I'm finishing rehab on my recent duplex than taking a month with my partner to strictly map out our path and improve systems. So during that time i'll try to schedule another meet up!

    @Brett McCurdy yep, we have thought about it but we renovate/update our properties so extensively to prevent later cost that I would rather keep them and find other ways to grab the next property. To your other question, we did pay cash for our first bunch because we thought we had no other options no one wanted to give a guy making 8k a year any money. I wouldn't do it the same if I did it again but it worked out great regardless. We also started small because that's all we were comfortable with. 

    @Justin Stamper Realestate is a great channel to make more! 

    Thanks to the everyone at BP this is an amazing community that has greatly impacted my business and life for the better. 

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

    @Jered Sturm  I think you may have mentioned me by mistake in your last response. 

  • Lender · San Diego, CA · Member since 2014 · 8 posts · 1 vote
    11y

    Thanks for sharing your story. Your hard work paid off.

  • Andover, MA · Member since 2014 · 1 post · 0 votes
    11y

    It is so hard to get a loan.  I need to be able to get a loan for a 650K singlke family with 20 acres land which I want to subdivide.  What is your advice?

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