We did it! We hit our investment goal!

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We did it! We hit our investment goal!

Brie SchmidtBusiness Member
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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!

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Most Popular Reply

Hugh C.
Investor · Los Angeles, CA · Member since 2015 · 50 posts · 20 votes
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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

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  • Atul Mohlajee
    Oak Park, IL · Member since 2014 · 285 posts · 114 votes
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    Way to go Brie.  We all learn a lot from you. Congratulations. 

    0Reply
  • Ken P.
    Rental Property Investor · Northville, MI · Member since 2013 · 264 posts · 183 votes
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    Way to go!  It's been fun following your progress.  

    We also started in 2011, and our goal is to get to $10k/mo net.  Since we're at $13k/mo gross, we've got a ways to go.  Thanks for the inspiration, showing that substantial goals can be realized in a relatively short period of time.

    0Reply
  • Cale Ferguson
    Investor · Lexington, SC · Member since 2014 · 103 posts · 28 votes
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    Awesome!  Glad to see folks flat out GETTING IT DONE!!  Congrats.

    0Reply
  • Anthony Peric
    Investor · Sacramemto, CA · Member since 2015 · 37 posts · 12 votes
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    @Brie Schmidt what a wonderful story of success to share with the rest of us. It is very much appreciated and best of luck to you and your husband in your future deals!

    0Reply
  • Doug McLeodPro Member
    Investor · Cypress, TX · Member since 2014 · 496 posts · 205 votes
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    Way to go, @Brie Schmidt. As others have said, your podcast inspired me. I just closed on SFR #9 (which will be refinanced with Fannie Mae #10) and was wondering how to continue. While "wasting time" reading through all 6 pages of congratulations, questions and your very gracious replies, I found your link to Jeff Trevarthen's blog about the loan product from United Wholesale Mortgage. Time redeemed! Thanks for being so willing to share your story. As you already can tell, it is an encouragement to many!

    0Reply
  • Brie SchmidtBusiness Member
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    OP
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
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    @brian w - Thanks!

    @Atul Mohlajee - Thanks, hope to see you around soon

    @ken p - it was really slow for awhile for us.  Then we turned a corner and went for it and never looked back.

    @Cale Ferguson and @Anthony Peric thanks!

    @Doug McLeod - we have not closed with them yet, but it is looking good. It sucks that we are kinda stuck because we have more than 4 loans... one property is at a 40% LTV and we can't pull a penny out. This is the best program I have found so far to get around that issue.

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
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    0Reply
  • Joey NakayamaPro Member
    Investor · Chicago, IL · Member since 2013 · 129 posts · 68 votes
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    Rockstar. Congrats @Brie Schmidt! 

    0Reply
  • Nicole Pettis
    Flipper/Rehabber · St. Louis, MO · Member since 2008 · 489 posts · 300 votes
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    @Brie Schmidt

     You're a rock star! I admire your drive and determination.  ENJOY your time off because you have earned every minute of it!!

    P.S. Loving all the success stories today!

    0Reply
  • Erkang You
    Investor · Fremont, CA · Member since 2015 · 10 posts · 3 votes
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    This is awesome! Congratulations! So much to learn from.

    0Reply
  • Albert Bui
    Lender · Bellevue WA & Orange County, CA · Member since 2013 · 2k+ posts · 1k+ votes
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    Originally posted by @Brie Schmidt:

    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

    0Reply
  • Mark Mariani
    Greendale, WI · Member since 2014 · 4 posts · 1 vote
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    That is awesome!  Congratulations!

    0Reply
  • Larry Smet
    Flipper / Rehabber / Real Estate Investor · Toronto, Ontario · Member since 2012 · 392 posts · 77 votes
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    Fantastic news @Brie Schmidt! You're an inspiration as to what consistent hard work can result in! 

    After you cut your teeth with a small multifamily, what was the most challenging aspect of moving up to buying packages of properties? 

    Best regards, Larry 

    0Reply
  • Christy Barton
    Real Estate Agent · Carmel, IN · Member since 2014 · 74 posts · 35 votes
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    I love this!  Congratulations!  I've really been encouraged by reading how you started in 2011 and have already met your goal...  pretty amazing.  :)  Thank you for sharing your story of success.  I'm looking forward to the day I get to share my own.

    0Reply
  • Ken Badziak
    Miami Lakes, FL · Member since 2015 · 133 posts · 83 votes
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    *sniff sniff*

    What's that burning smell?

    Oh. 

    It's the fire.

    Under my ***.

    Thanks for lighting it, @Brie Schmidt!!!

    2Reply
  • Brie SchmidtBusiness Member
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    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
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    @Joey Nakayama and @Nicole Pettis and @Erkang You and @Mark Mariani Thanks!  

    @Albert Bui - next is vacation, when I get back my focus is the TK Review site and maybe some JV partnerships to replicate what I have been doing.

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
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  • Jarrett Harris
    Calumet City, IL · Member since 2014 · 312 posts · 49 votes
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    @Brie Schmidt

    Many Congrats. It is very impressive that you did all of this since 2011 WOW. I started in Oct. 2013 and am still trying figure out how to get my second property.

    0Reply
  • Brie SchmidtBusiness Member
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    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
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    @Larry Smet

     - What we do is a bit different because we are buying mainly residential multifamily (1-4 units) with commercial financing.  So in the last 10 months we have had 4 closings, but 18 properties.  We group them together to make the deal size worth the time of the commercial bank.  This is challenging in a few ways:

    • I will probably see 30-50 places to find the 5 that I buy,  I always wanted to buy more than 5 but never had enough inventory to do so.  So I start with 2 anchor buildings and set the closing for 6 weeks out, then that gives me 2-3 weeks to find the rest.  I will drive up for 2 days seeing 10-15 houses a day, and need to make sure my analysis is done beforehand so that I can make quick decisions
    • I am my own agent, so I need to coordinate multiple agents and multiple sellers at once.  Luckily I am organized, but others are not.  So if 1 doc is missing from 1 seller the whole file can get caught in underwriting and cause delays.  This process is uncommon so others don't understand that their delay is causing everyone else to delay, or that someone else not being on the ball is causing them to delay
    • The smallest takeover has been 12 units at once.  When you have different sellers that do things differently than you it sometimes takes awhile to get everyone on your page.  Sometimes we have tenants move out without notice before we even get a chance to talk with them!  Plus in Milwaukee when you buy it triggers a city inspection and you get a list on violations you must fix within 90 days, so that is always fun doing 5 properties at once!
    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
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  • Brie SchmidtBusiness Member
    Moderator
    OP
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
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    @Christy Barton - Thank you!  Keep your focus and it will happen.  The beginning was slow for us but then we hit our stride about 3 years in.

    @Ken Badziak - Thanks!  I was inspired by the many here on BP who were making it happen too

    @Jarrett Harris - It took us 18 months to buy our second, it takes time to get the ball rolling.  But once the snowball starts it gets good

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
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  • Timothy Riley
    Investor · Chicago, IL · Member since 2013 · 451 posts · 96 votes
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    @Brie SchmidtCongrats I'm just getting back to the social world... I know I probably missed it on this long stream, but what's next? You have a lot of energy and life left and you love the game too much to stop.

    0Reply
  • Shelly F.
    Realtor · NW Suburbs of Chicago, IL · Member since 2015 · 156 posts · 62 votes
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    @Brie Schmidt

    Thank you so much for sharing your journey, challenges and successes! I especially appreciate your honesty about it not being "all rainbows"...I think if a new investor like me can hear that it takes hard work and there WILL be challenges, and goes ahead into REI anyway, there is a greater chance of success! Grit, determination and will...goes a long way, and I just wanted to say "Well Done" and thanks for being a source of inspiration for those of us still on the way...have a fabulous vacation...well deserved! Bravo!

    0Reply
  • Salvador Senar Jr.
    Real Estate Investor · San Diego. CA · Member since 2014 · 21 posts · 9 votes
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    @Brie Schmidt So good to hear these personal testimonies to dedication, belief and hard work. Great work!! Have a good break! You Deserve it!

    0Reply
  • Brie SchmidtBusiness Member
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    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
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    @Timothy Riley - I am going to enjoy a Chicago summer! I will be working more on the TK Review site rolling out some new features and I have JV partnerships in the works too. But for us personally, we are done buying for a bit.

    @Shelly F. - Thanks!  I was just having a conversation with someone and was telling them that even though I have a full time PM and maintenance staff, I still spend about 20+ hours a week working on it.  It does take a lot of hard work and dedication.

    @Salvador Senar Jr. - Thank you!  I will be enjoying it for sure

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
    0Reply
  • Carrie Giordano
    Investor · Marina Del Rey, CA · Member since 2015 · 297 posts · 87 votes
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    Very cool! Can't wait to go back and listen to the podcast to hear your back story!
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  • Zach Adams
    Investor · Vista, CA · Member since 2015 · 163 posts · 58 votes
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    Brie Schmidt impressive and inspiring!
    0Reply
  • Jay C.
    Seattle, WA · Member since 2014 · 308 posts · 170 votes
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    Fantastic you hit your goal but....................I see all these congrats is that a good thing or bad? Only you know. More info is needed. What level of debt do you now have......whats the net on this.  I guess what I am saying is if I had $1,000,000 per month coming in on 3000 properties that I had loans on and netted $10,000 out of that I would consider that a nightmare of leverage and by definition a "house of cards".

    Back to you...if your happy that's all that matters...Right :-)

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