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
1,979 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
  • Flipper/Rehabber · Tacoma, WA · Member since 2014 · 38 posts · 18 votes
    11y

    That is so cool!  Congratulations!

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

    @Kennedy Williams and @Donna Rodriguez Thanks!

    @Daniel Zamora - Everyone's goals are different.  I always suggest starting with a budget audit and seeing where your money is going.  Then cut what you can and save the rest to invest.  Good luck!

  • Itasca, IL · Member since 2015 · 17 posts · 2 votes
    11y

    @Brie Schmidt, congratulations! Definitely an impressive feat! Best of luck as you continue forward and enjoy your vacation!

  • Rental Property Investor · Vancouver, WA · Member since 2014 · 308 posts · 144 votes
    11y
    Originally posted by @Jonathan Makovsky:

    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?] :)

     Next goal of 350k a month?  I like the cut of your jib son! :)

  • Investor · Lake Saint Louis, MO · Member since 2015 · 6 posts · 0 votes
    11y

    Awesome stuff!  Stories like yours help me stay focused with my "eyes on the prize"!   

    Congrats!

  • Real Estate Investor · Los Angeles, CA · Member since 2014 · 10 posts · 0 votes
    11y

    @Brie Schmidt congratulations on reaching your goal and continued success on your next milestone! 

  • Investor · Vancouver, WA · Member since 2014 · 1 post · 0 votes
    11y

    Thank you for sharing Brie! I will be going back and listening to your pod cast today!

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

    @Stephen Durante and @Michael LaBrot Thanks!

    @Account Closed Thanks!

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

    @Brie Schmidt

     Thanks for openly sharing the info requested by so many of us. I had a question in regards to the 25% expenses for your properties in Chicago. Are you saving a capex amount for these for future even though they are rehabbed now? Also how are you keeping reservers for vacancies and turnover expenses? Are these included in the 25% expense or not.  

    Our goal is work mostly in A and B areas so would like to understand how you are able to keep the expenses low.

  • Investor · Plano, TX · Member since 2013 · 89 posts · 27 votes
    11y

    @Brie Schmidt so awesome! This is such a great testament to the power of goal setting!

  • Chesterfield, MO · Member since 2014 · 1 post · 0 votes
    11y

    @Brie Schmidt

    Congratulations Brie, and thanks for sharing! My husband and I are actually in a similar situation... Owner occupied my first property, then bought and rehabbed a home that was owned in a trust that needed some work for well under market value, and are now trying to expand to make $25K/month in passive real estate income.

    I looked at your blog, and our situation (and even amount in the bank to put toward a down payment after your second investment, got married this past August, etc) is amusingly similar, and I'd love to connect with you. I quit my job (making good money, but working 20 hour days) several months back, and am wanting to expand within a few hours drive of our home in the midwest. From your story, it sounds like bulk buys and finding the right lenders are key... I have a bunch of metrics I use to evaluate (and landed on the same cap rate cutoff, etc as you did), and have scoured the internet and found numerous potential options, but I'd love to hear more about how you found bulk sellers, etc and challenges you faced as you tried to expand into your 3rd property and beyond.

    I'd love to chat if you're free and willing, please don't hesitate to PM me if you're open to further discussion. Thanks again for the inspiration (yay for it being possible to actually DO this and that we're on the right track in terms of metrics and targets!), and congratulations again. I hope you have a great weekend!

  • Investor · Baton Rouge, LA · Member since 2014 · 280 posts · 219 votes
    11y

    @Brie Schmidt

    Congratulations, that is such an awesome story and an inspiration.  I actually just finished listening to your podcast for the 2nd time last week (I am listening to them all again from #1 to present). 

    Your husband sure is lucky to have married such a go-getter considering he was never interested in real estate.  Now he is sipping pina coladas on the beach in Mexico because of your drive to succeed in real estate.  Great job!!!

  • Investor · Scotch Plains, NJ · Member since 2014 · 105 posts · 50 votes
    11y

    @Brie Schmidt

    Really impressive ramp-up! Thank you for sharing details of your successes. Congratulations!

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

    @Radhika M. - Thanks!

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

    Thanks!  I am leaving the country tomorrow but we can chat when I get back in June?  I will try and help answer any questions on topics I am knowledgeable about (buy and hold)

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

    @Brie Schmidt

    Thanks for listening!  I was SO nervous when I recorded it, I was scared to listen to it when it came out.  

  • Investor · Columbus, OH · Member since 2015 · 99 posts · 35 votes
    11y

    Congrats Brie!  your story is inspiring, it helps to be a successful broker/experienced agent like yourself. Maybe you should do into training area and help other investors :)

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

    @Brie Schmidt

    Really impressive ramp-up! Thank you for sharing details of your successes. Congratulations!

     Thanks!

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

    @AJ S.

    Thanks.  What I do isn't special or anything you can't learn here on BP.  

    So much of real estate is local, and knowing your market is extremely important.  We all also each have different risk levels and goals.  So what works for me may not work for you

  • Investor · Titusville, PA · Member since 2015 · 298 posts · 150 votes
    11y

    This is awesome. You rock! You are a real inspiration.  Thanks for keeping us informed on your successes and challenges. And keep up the great life.

  • Feeding Hills, MA · Member since 2015 · 22 posts · 9 votes
    11y

    @Brie Schmidt

    Congratulations!  It's inspiring to hear of your success.  Enjoy your break.

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

    @Brie Schmidt

     Thanks for the info. The model you have should work for us as the area also has low vacancy. In fact most of the tenants have been there for 3 years+. 

  • Real Estate Agent · Downers Grove · Member since 2013 · 22 posts · 0 votes
    11y

    Wow @BrieSchmidt that's fantastic and congrats on your success!! I have been following you since your interview on the podcast, definitely left me with a few nuggets. Im currently in the process of correcting some things so I can purchase my next investment property. Are you available for mentoring or one on one meeting for insight on investing?

  • Atlanta, GA · Member since 2014 · 19 posts · 14 votes
    11y

    congratulations. that's great. I think I will listen to your podcast again to see if I can copy that success. 

  • Jon HuberPro Member
    Rental Property Investor · Boca Raton, FL · Member since 2014 · 1k+ posts · 713 votes
    11y

    @Brie Schmidt Excellent job! Congratulations... 

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