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
1,592 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
  • San Francisco, CA · Member since 2014 · 22 posts · 11 votes
    11y

    Brie this is inspiring! I'm stuck in analysis paralysis and this post is helping me spur into action.

  • Investor · Austin, TX · Member since 2014 · 69 posts · 17 votes
    11y

    Nice one Brie! Way to stay focused on your goals and really hustling to make them happen. Enjoy the fruits of your labor/sacrifice.

  • Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    11y

    @Brie Schmidt

     Congratulations!  You are an inspiration.  Enjoy that much deserved (& needed) break.

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

    @Account Closed Thanks!

  • Investor · Houston, TX · Member since 2015 · 176 posts · 121 votes
    11y

    @Brie Schmidt HOLY SMOKES!!!! That is awesome!!!!

    I would be happy to get a deal going. I hope I can follow your success.

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

    @Michael Delpier Thanks! It has been 3 years of working full time doing REI on the side and 1 year of full time REI to get here.

  • Dave CurrencePro Member
    Investor · New York City, NY · Member since 2015 · 51 posts · 22 votes
    11y
    Brie Schmidt , Congrats! I really enjoyed your story and updates! Enjoy your break!
  • Brie SchmidtBusiness Member
    Moderator
    OP
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    11y
  • Investor · Waconia, MN · Member since 2014 · 238 posts · 104 votes
    11y

    @Brie Schmidt Very inspiring! Congrats. Do you remember your milestones at the end of each year such as how many properties/units you acquired owned at the end of each consecutive year? I am assuming it snowballed as you generated more income and could reinvest that buying more rapidly.

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

    @Jedd Braunwarth yes I do!

    2011 - 1 property - 3 units

    2012 - 1 property - 3 units

    2013 - 1 property - 2 units

    2014 - 10 properties - 25 units

    2015 - 8 properties - 26 units YTD

  • Rental Property Investor · Woodbridge, VA · Member since 2014 · 249 posts · 81 votes
    11y

    @Brie Schmidt this is so awesome!  Congrats.  Yours was one of the first podcasts that I listened to - it is way cool to see this happen for you and your husband!

    All the best!!

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

    @Brie Schmidt this is so awesome!  Congrats.  Yours was one of the first podcasts that I listened to - it is way cool to see this happen for you and your husband!

    All the best!!

     That's awesome!  I has been such a crazy year since that one

  • Real Estate Agent · Austell, GA · Member since 2014 · 232 posts · 74 votes
    11y

    Super Congrats!

  • Real Estate Investor · Champaign, IL · Member since 2014 · 15 posts · 6 votes
    11y

    Congrats on hitting your goal! I'm only on podcast 15 (I think) but excited to get to yours and hear about your story!

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

    @Allen Thomas Thanks!

    @Joe Bushman They are all SO good!  I listen to them all the time now

  • Investor · Fort Lauderdale, FL · Member since 2015 · 172 posts · 30 votes
    11y

    Congrat's Brie, what an awesome job! Keep up the great work... 

  • Real Estate Broker · Deland, FL · Member since 2014 · 83 posts · 24 votes
    11y

    Congrats Brie...Its awesome to hear success stories here on the BP. Continue Sucess!

  • Brie SchmidtBusiness Member
    Moderator
    OP
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    11y
  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    11y

    Congrats and thanks for sharing! If my math is right, you've got 80 doors with an average rent of less than $450/mo? Curious if you are seeing better/easier tenant pools in Milwaukee v. Chicago?  I'm in CA so those are some low rents.  In my areas low rents come with low rent issues.  I'm no stranger to low rent issues, but I define low rent as under $1000/mo.  :)

    I might have missed it, but how many of units have PM?

    Again, congrats for setting and meeting those goals.  Europe waits for you!

  • Investor · Houston, TX · Member since 2014 · 128 posts · 87 votes
    11y

    Congrats!  That is a very inspirational story. You accomplished a lot in four years.  This makes me want to raise my goals and super-charge my pace!

  • John CasmonPro Member
    Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
    11y

    @Brie Schmidt Congratulations! It's been great watching you from afar. You're an inspiration!

  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    11y

    Congratulations @Brie Schmidt! What part of Chicago are you in?

  • Real Estate Investor · Eola, IL · Member since 2014 · 137 posts · 22 votes
    11y

    Congratulations @Brie Schmidt on reaching your immediate goal:)

    Curious on when you say "Conventional residential" loan.

    I assume they are like 30 Yr mortgage with mid 4% interest rate.

    How many of those Conventional loan you have? 

    Is your credit score hit big time because of so many loans you have in your name?

    Enjoy Europe trip.... now is the best time to visit EU as the $ exchange rate is so much better!

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

    Congrats and thanks for sharing! If my math is right, you've got 80 doors with an average rent of less than $450/mo? Curious if you are seeing better/easier tenant pools in Milwaukee v. Chicago?  I'm in CA so those are some low rents.  In my areas low rents come with low rent issues.  I'm no stranger to low rent issues, but I define low rent as under $1000/mo.  :)

    I might have missed it, but how many of units have PM?

    Again, congrats for setting and meeting those goals.  Europe waits for you!

     We have 59 doors total.  But 4 units are not currently rented out (2 we live in and 2 are under construction)  Chicago is about $1300 a unit and tenants are much easier to deal with (I manage these).  Milwaukee is about $600 a unit (about $650 a unit when I get done with increases) and it has it's set of challenges.  Those properties are run by my full time in house PM.  

    It is not easy, and we do have challenges for sure.  But having an in house PM makes a world of difference.  especially since we bought 13 properties from 10 sellers in 5 months, it takes time to transition people over to our way of doing things.  

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

    @Ann Howell Thanks!  I am always adjusting our goals but I had to promise the hubby we would take a break at some point and this was the one we decided on.

    @John Casmon Thanks.  It has been awhile since I have seen you around!

    @Mindy Jensen - I am on the North Side of Chicago and that is where I operate my brokerage business too

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