We did it! We hit our investment goal!

We did it! We hit our investment goal!

Brie SchmidtBusiness Member
Moderator
Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes

Last week we hit our investment goal of $35k a month gross rental income. We bought our first investment property in August 2011 and the vast majority of our growth has happened in the past 10 months. We (my husband and I) now own 21 buildings and 59 units in Chicago and Milwaukee.

If you have been following my story I did a podcast last July (www.biggerpockets/com/show78 ) when I had just quit my job and we were just closing on our first out of state properties. Since then life has been pretty crazy and I did an update 2 months ago on what has been going on ( http://www.biggerpockets.com/forums/223/topics/178935-it-has-been-8-months-since-i-left-my-job-and )

Life is still crazy, especially since we just got back from Mexico and are leaving for a two week trip to Europe this week… but I foresee a more steady and manageable pace moving forward.

It hasn’t been all sunshine and rainbows. We have had our fair share of problems. Some buildings were an easy takeover where the tenants stayed, paid rent, and didn’t cause problems. Some we had tenants leave in the middle of the night or leave the place trashed. Some properties were profitable from day one and some won’t be profitable for at least a year. The good thing is because we have scale it all balances out and we are not putting our own money into them every month.

BP has been such a huge part of my success. I gained the confidence I needed to go into this full time and have met some amazing friends who have helped me so much along the way.

I am looking forward to this much needed vacation and returning in June fully recharged and ready to go!

76Reply
1,576 views

Most Popular Reply

Investor · Los Angeles, CA · Member since 2015 · 50 posts · 20 votes
11y
Originally posted by @Brie Schmidt:

@Derek Carroll- About half our portfolio is in Chicago with traditional residential financing. We were able to cash out on some of our appreciation to buy the rest with 80% LTV commercial loans. We borrowed $100k from my brother to push us past the goal line and now we will be pulling more equity out of Chicago to pay him back.

@Steve Perkins- It has been beyond my wildest dreams, I honestly barely recognize myself and didn't know I had it in me to do all this.  

@carl c - Thanks!

@Matt Cramer Thanks!

Brie,

I'm sure you are using BP's guidelines about cash flow and you are careful about not pulling too much cash out on your appreciation.  As with my business partner ventures, my own rental properties are never leveraged too the max even if the current net rental income can cover the new loan.  One never knows what may occur to cause net rental income to suddenly drop for a while.  So many "investors" do not consider that scenario as they were pulling cash out of all the built up equity.  In almost 30 years of ups and downs of real estate I have not had any forced loss of real estate because all the loans were easily covered by even dropping rental income.   Rental income does not always go up each year.  Keep you wildest dreams from turning into nightmares.

Hugh

See this reply in the discussion

240 Replies

Jump to latestLatest
  • Investor · Fairfield-New Haven-Hartford County, CT · Member since 2013 · 825 posts · 413 votes
    11y

    Congrats @Brie Schmidt! It's been great following your success stories - this is fantastic! Keep up the amazing work.

    [Is it time to 10x the goal to $350K/month?] :)

  • Syndicator and Fund Manager · Victor, NY · Member since 2012 · 760 posts · 345 votes
    11y

    @Brie Schmidt congrats!

    What kind of leverage are you using for debt?

    Are you using any investor capital for equity or is this all you and your husband?

  • Investor · Denver, CO · Member since 2014 · 71 posts · 44 votes
    11y
    Congratulations, Brie Schmidt . That is SO cool. I'm simply amazed at how you've been able to do this.
  • Investor · lansing, MI · Member since 2015 · 29 posts · 18 votes
    11y

    Congrats !!! That's awesome 

  • Residential Real Estate Agent · Rochester, MI · Member since 2012 · 152 posts · 52 votes
    11y

    Congrats!

    So cool to hear how quick you did it too!

  • Brie SchmidtBusiness Member
    Moderator
    OP
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    11y

    @Jonathan Makovsky

    haha! no! It has taken so much to get to this point that we are personally taking a break from buying. I will be working on some JV's to build their portfolio but our finances need a break.

  • Brie SchmidtBusiness Member
    Moderator
    OP
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    11y

    @Derek Carroll- About half our portfolio is in Chicago with traditional residential financing. We were able to cash out on some of our appreciation to buy the rest with 80% LTV commercial loans. We borrowed $100k from my brother to push us past the goal line and now we will be pulling more equity out of Chicago to pay him back.

    @Steve Perkins- It has been beyond my wildest dreams, I honestly barely recognize myself and didn't know I had it in me to do all this.  

    @carl c - Thanks!

    @Matt Cramer Thanks!

  • Investor · Inverness, IL · Member since 2015 · 124 posts · 35 votes
    11y

    Congrats Brie! Great to hear that you were able to achieve your goal and wish you much continued success!

  • Chicago, IL · Member since 2015 · 8 posts · 0 votes
    11y

    @Brie Schmidt - Congratulations! May it be only bigger and better things from here.

  • Investor · Williamsport, PA · Member since 2010 · 23 posts · 5 votes
    11y

    Congrats.   It is awesome to see people sharing their stories on accomplishing their goals.  

    As Matt said, it's awesome  how fast you accomplished this.     I may need to focus on the mid west!  Been hearing alot of good things.

  • Investor · North Woodmere, NY · Member since 2014 · 97 posts · 7 votes
    11y

    Congrats @Brie Schmidt !

  • Brie SchmidtBusiness Member
    Moderator
    OP
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    11y

    @David Stefanovic - Thanks!

    @Thomas Kayes - Thanks!  Hopefully I will be seeing you around

    @Brad Gordner - Each market has it's challenges, and it has been a learning experience for sure.  But after 10 months we have almost all the kinks out and things are running much smoother

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    11y

    Good job, Brie!  What's your new goal?  I didn't give you much time to rest/bask, did I?  Maybe work on the monthly net profit number?

  • Investor · Arlington, VA · Member since 2012 · 1k+ posts · 491 votes
    11y

    Congrats!  I'm very happy for you!

  • Investor · Los Angeles, CA · Member since 2015 · 50 posts · 20 votes
    11y
    Originally posted by @Brie Schmidt:

    @Derek Carroll- About half our portfolio is in Chicago with traditional residential financing. We were able to cash out on some of our appreciation to buy the rest with 80% LTV commercial loans. We borrowed $100k from my brother to push us past the goal line and now we will be pulling more equity out of Chicago to pay him back.

    @Steve Perkins- It has been beyond my wildest dreams, I honestly barely recognize myself and didn't know I had it in me to do all this.  

    @carl c - Thanks!

    @Matt Cramer Thanks!

    Brie,

    I'm sure you are using BP's guidelines about cash flow and you are careful about not pulling too much cash out on your appreciation.  As with my business partner ventures, my own rental properties are never leveraged too the max even if the current net rental income can cover the new loan.  One never knows what may occur to cause net rental income to suddenly drop for a while.  So many "investors" do not consider that scenario as they were pulling cash out of all the built up equity.  In almost 30 years of ups and downs of real estate I have not had any forced loss of real estate because all the loans were easily covered by even dropping rental income.   Rental income does not always go up each year.  Keep you wildest dreams from turning into nightmares.

    Hugh

  • Investor · San Jose, CA · Member since 2014 · 167 posts · 146 votes
    11y

    @Brie Schmidt

     Congratulations. What you have accomplished in less than 4 years is amazing. 

    Enjoy you vacation you need it :)

  • Investor · Chicago, IL · Member since 2014 · 143 posts · 37 votes
    11y

    Congrats Brie! That was fast.

  • Brie SchmidtBusiness Member
    Moderator
    OP
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    11y

    @Yechiel Abekassis Thanks!

    @Jon Klaus The next goal is a break!  I honestly don't know what is in store for us next.  We will be focusing on optimizing the portfolio over the next few months.  We implemented some new systems to improve efficiency and will continue to do so.  We have some rent increases coming up this summer as the past few months have been "don't rock the boat" mode.  Plus I have a brokerage business and the TK Review site to focus on.  But hey, 2 years ago our goal was to own 4 buildings in Chicago, you never know where this life takes you.  

    @Frankie Woods - Thanks!

  • Rental Property Investor · Mars, PA · Member since 2014 · 92 posts · 36 votes
    11y

    @Brie Schmidt that's awesome! Thanks for helping me get started investing in Chicago. Let me know if you want to celebrate and we'll be there.

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

    This brings a huge smile to my face! Congrats Brie! You are an inspiration! and you also have my mothers maiden name/grandparents last name! SOOO I LOVE IT MORE

  • Brie SchmidtBusiness Member
    Moderator
    OP
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    11y
    Originally posted by @Hugh C.:

    Thanks for the advice! One can never be too cautious. We make sure to never go above a 70% LTV and keep ample reserves to handle rough patches, cause they will happen.

  • Mark AinleyBusiness Member
    Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
    11y

    @Brie Schmidt Congrats!!!  Time to set some new goals when u get back!!!

  • Real Estate Agent · Milwaukee County, WI · Member since 2009 · 3k+ posts · 525 votes
    11y

    well done

  • Brie SchmidtBusiness Member
    Moderator
    OP
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    11y

    @Radhika M. we will have to celebrate when I get back from vacation in June!

  • Brie SchmidtBusiness Member
    Moderator
    OP
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    11y

    @Justin Stamper Thank you!  You have been a help getting me started out of state

Join the conversationCreate a free account to reply, vote on answers and follow this thread.