21 Year Old Buys His 1st and 24th Rental Home at the Same Time!

21 Year Old Buys His 1st and 24th Rental Home at the Same Time!

Investor · Lawrenceville, GA · Member since 2013 · 34 posts · 29 votes

I just recently closed on my first and my twenty-fourth rental property at the same closing table! I have BP to thank, really. Stumbling upon BiggerPockets when I was about 18 felt like trying to drink water from a fire hydrant of real estate information! It’s hard to know where to start! I stayed up late every night reading blogs, watching videos, and listening to the BiggerPockets podcast. I couldn’t get enough!

All that information, however, is useless without putting it into practice. During this time, I was working a full time job in the car business. Some of you can testify; working 60-70 hours a week can really motivate you to look for an alternative occupation! However, that season wasn’t all bad. I was able to save a good bit of money, allowing me to quit and focus 100% on real estate.

The #1 theme I heard over and over on BiggerPockets was this idea of finding a mentor. I had no idea where to find someone to mentor me, so I started telling my friends and family that I wanted to be a full time real estate investor. One day, out of the blue, one of my friends told me about a guy they knew who had been investing in real estate for about 20 years. During my lunch break one day, I went and had lunch with this investor. I tried to get to know his story and investing history. I didn’t want to scare him off by begging him to mentor me. That’s a sure fire way to freak them out! After about 2 hours of talking, it became clear that I needed to learn as much as I could from him. He was a broker licensed in over 20 states, owned an Auction company, co-authored a real estate branding book, and operated a successful general contracting business. Fast forward 4 months and multiple lunches later, I was performing all kinds of tasks for him and soaking up as much of his knowledge and experience as I possibly could! As Shawn Hitchcock says, “A mentor empowers a person to see a possible future, and believe it can be obtained.” I started believing that a perfect career of real estate investing could possibly be in my future.

A year later, at 21 years old, here I am. I just closed on 24 rental houses at the same time (my 1st rental property and my 24th), we’ve flipped 3 homes together, and we’re working on the 4th right now! Although it’s not a perfect career, it’s an exciting one! I won’t go into details of the rentals in this post, but I can say, without BiggerPockets and my mentor/business partner, I wouldn’t be writing this. Looking forward to MANY more deals to come!

Thanks for reading. Have any questions? I’d love to hear from you!

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Rental Property Investor · Lindon, UT · Member since 2015 · 862 posts · 438 votes
10y

As someone who has accumulated over 40 properties in the last fourteen months, I'm not sure we should all be congratulating Harrison just yet.  Borrowing is not earning and buying does not guarantee performance!  

It takes approximately 3-6 months to stabilize each rental property and I've been able to work through about 5 per month at max.  Buying 24 at once sounds great, but Harrison has a bunch of work in front of him and his story may sound as dramatic (in a different way) in about six months as it does now.

The BRRR strategy is a good one, even better if you can do it without using your own funds like Harrison. I would suggest to those reading this post that they take it one property at a time. There has to be some room in BRRSR to add an "S" for "stabilize" into the acronym.

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  • Investor · Lawrenceville, GA · Member since 2013 · 34 posts · 29 votes
    10y
  • JD MartinBusiness Member
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    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
    10y

    Hey there, great for you! With your age, you might want to punch out some details that could help some of the younger people on here:

    • How you got financing
    • How much you started with
    • How you learned how to do any of the work

    ETC. 

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  • Investor · Lawrenceville, GA · Member since 2013 · 34 posts · 29 votes
    10y

    @JD MartinThanks for the tip.

    • How you got financing    /////    I bought the properties at a really great deal. They are high cash flowing and I bought them under market price. Finding a good deal makes financing easier. I used two financing methods. 1. The property was financed by the previous owner with a really small local bank. I simply asked the local bank if they would be willing to keep the property on their books and simply switch owners. I provided my credit information to them (I had a 720 beacon score) and that was pretty much it. 2. I used private money for the down payment. The deal was able to still cashflow really well paying a 10-year amortized loan at an 8% APR to my private lender.
    • How much you started with   /////    $0. I used none of my own money for this deal. Thanks to @Brandon Turner's book, Investing with Low and No Money Down.
    • How you learned how to do any of the work    /////    I have the ability to do some of the work myself, but I haven't been. My business partner/mentor has relationships with subcontractors that we have used on all of the projects we've been involved in. What I have found though is, if you don't have contractors, Craigslist is a great place to find them. Also, show up at HomeDepot on a Saturday morning and walk around the parking lot taking pictures of sub's magnetic stickers on their trucks saying what they do and their phone numbers.

    Hope this helps other newbies like me.

  • Phoenix, AZ · Member since 2015 · 345 posts · 138 votes
    10y

    Wow sounds like after a few years of hitting the books your new career is taking off like a rocket ship. You have a plan, are organized, educated, have a partner, and seem extremely eager to succeed which to me makes for a great future in REI!! Super awesome man, keep it up! Post some updates too as the portfolio grows so newbies like myself can see the creativeness behind REI!

    Good Luck!

  • Real Estate Investor · Nashville, TN · Member since 2014 · 78 posts · 44 votes
    10y

    Congratulations and good luck! 

  • Bulawayo, Zimbabwe · Member since 2015 · 1k+ posts · 253 votes
    10y

    Congratulations on putting into practice what was learnt.way to go

  • Investor · Lawrenceville, GA · Member since 2013 · 34 posts · 29 votes
    10y

    Will do @Cody Barrett... Thanks!

  • Jason PhillipsPro Member
    Investor · Haverhill, MA · Member since 2015 · 3 posts · 1 vote
    10y
    Thanks for sharing, this story, I'm a car guy who is looking to have a similar success story in REI, currently looking for a mentor myself. I'm sure I'll be updating soon. Loving BP!
  • Investor · Lawrenceville, GA · Member since 2013 · 34 posts · 29 votes
    10y

    @Jason PhillipsYea man, the car business is tough. Did it for almost 2 years. Loving real estate a LOT more! Looking forward to seeing your successes.

  • Logan AllecBusiness Member
    Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votes
    10y

    How did you find the private money?

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  • Santa Monica, CA · Member since 2016 · 4 posts · 2 votes
    10y

    Jeez- I'm inspired. Well done! I'm 27 in SoCal and I'm just now getting started- thanks for sharing your story. If you ever decide to ditch the east and try out the west coast, let me know- I'll buy you lunch! Haha

  • Rental Property Investor · Lindon, UT · Member since 2015 · 862 posts · 438 votes
    10y

    As someone who has accumulated over 40 properties in the last fourteen months, I'm not sure we should all be congratulating Harrison just yet.  Borrowing is not earning and buying does not guarantee performance!  

    It takes approximately 3-6 months to stabilize each rental property and I've been able to work through about 5 per month at max.  Buying 24 at once sounds great, but Harrison has a bunch of work in front of him and his story may sound as dramatic (in a different way) in about six months as it does now.

    The BRRR strategy is a good one, even better if you can do it without using your own funds like Harrison. I would suggest to those reading this post that they take it one property at a time. There has to be some room in BRRSR to add an "S" for "stabilize" into the acronym.

  • Northern New Jersey, NJ · Member since 2014 · 53 posts · 14 votes
    10y

    @Account ClosedSounds amazing! Keep up the good work!

  • Investor · Los Angeles, CA · Member since 2015 · 40 posts · 10 votes
    10y
    Awesome story!
  • Investor · Jackson, GA · Member since 2011 · 228 posts · 126 votes
    10y

    Great story @Account Closed!  Way to have that vision at your age!

  • Glenarden, MD · Member since 2016 · 7 posts · 1 vote
    10y

    It is great when you see someone that is successful [your mentor], but its so awesome when you start to duplicate that success.  Hats off to you for sticking with it.

  • Rental Property Investor · San Antonio, TX · Member since 2015 · 272 posts · 50 votes
    10y

    Wow! Very impressive!! 

    As a 15 year old this is very inspiring!

    Good job and good luck on your next properties!

  • Saint Petersburg, FL · Member since 2016 · 3 posts · 3 votes
    10y

    This is great! Hope to have a similar story within a year myself!!

  • Real Estate Investor · Playa Del Rey, CA · Member since 2016 · 10 posts · 1 vote
    10y

    Excellent! It's so important to surround yourself with good people.

  • Conroe, TX · Member since 2014 · 28 posts · 17 votes
    10y

    Does no one else find this incredibly risky? Lets say you cash flowed 300(est) per door a month. That's $7,200 a month if all of your properties are  occupied.. Doesn't count for how you'll get your properties up to rental condition? Where is that cash coming from?  $4,000(est) per house is= 96,000 just to get them in rental condition.  

    You won't be able to get them all done at the same time, so you'll have high vacancy for a while. What if 2 of them need a roof in a month? That's $10,000 expense that destroy's your monthly income and I believe you said you don't have a job right now.

    Not trying to be a debbie downer, I hope it all works out. But You need a large sum of cash to help mitigate your risk and that you can live on. More info would be super helpful.

  • Nineveh, IN · Member since 2016 · 27 posts · 4 votes
    10y

    great job @Account Closed I'm sure your just fine with your numbers that a few keep talking about maybe they just want to hear more? Good luck buddy!

  • Bellevue, NE · Member since 2015 · 134 posts · 28 votes
    10y

    Well written post and congratulations on the success! I'd be interested in hearing the details of your rentals and some of your fix and flips. 

    Looking forward to seeing more of your success @Account Closed!

    -Swiss

  • Stephen FrancoPro Member
    Scranton, PA · Member since 2016 · 201 posts · 44 votes
    10y

    congratulations that's amazing

  • Investor · Lawrenceville, GA · Member since 2013 · 34 posts · 29 votes
    10y

    @Logan Allec"How did you find the private money?" I sought out an older family friend that I've talked business with for years. I've been able to prove to him over the years that I'm motivated yet conservative with my money. He believed in me (as well as the deal) enough to invest. I understand that most people may not have that kind of person in their corner, but I do pay him every month, just like a normal loan, and at a good interest rate I might add ;).

  • Investor · Lawrenceville, GA · Member since 2013 · 34 posts · 29 votes
    10y

    @Darren Eady"As someone who has accumulated over 40 properties in the last fourteen months, I'm not sure we should all be congratulating Harrison just yet. Borrowing is not earning and buying does not guarantee performance!

    It takes approximately 3-6 months to stabilize each rental property and I've been able to work through about 5 per month at max. Buying 24 at once sounds great, but Harrison has a bunch of work in front of him and his story may sound as dramatic (in a different way) in about six months as it does now.

    The BRRR strategy is a good one, even better if you can do it without using your own funds like Harrison. I would suggest to those reading this post that they take it one property at a time. There has to be some room in BRRSR to add an "S" for "stabilize" into the acronym."

    Darren, you are a beast and I congratulate you on your accomplishments! This purchase I wrote about was a lengthy one to vet. I did a good bit of due diligence on each house along with my business partner/mentor. I have a lot of support and the properties are 100% occupied without extensive repairs needed. Also, it appears most of the main capital expenditures are doing ok for now, i.e. roofs, HVAC's, etc. On top of all that, the properties cash flow VERY well. I appreciate your concern though and I'll be careful to prepare for the worst!

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