Following Trump's American Dream!!!

Following Trump's American Dream!!!

Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes

I just left this message below in reply to a forum post recently.  I thought I would share it with all here to document my path and to inspire others to follow a similar path and stay away from late night guru garbage, touting something for nothing, instant gratification, diseased mind thinking.  Lately, I have been receiving phone calls and messages from members that need to get their financial house in order, before investing in Real Estate.  

Donald Trump did it with 1 million seed money and I used my own money. I only used $300,000 (refinancing personal residence, savings, IRA money, stocks etc...) of my own money to build up a modest 2 million in equity and soon to be nearly 6 million in Real Estate after ONLY 5 short years of real estate investing. Here is my story below. I am no Trump. However, I only make combined family W2 earnings of $80,000.00 at my 2 teaching jobs and my wife working part time as a special Ed assistant. If a lowly paid teacher can achieve sooooooooo much and be financially free after such a short time, then anybody can!! Here we go!! This is my Easter gift to you. Read it and live it. I did and will continue to do so.

My path was to start with single family condos in San Diego that I purchased in 2011 and 2012 for less than 1/2 of what they were selling for during the peak. Dramatic appreciation happened from 2013 to 2015 and we started 1031 exchanging those condos for 8, 10, 12, and a 15 unit complex in Northeast Ohio. I basically traded in 4 condos cash flowing at about $6,000.00 each per year on 30 year loans for $15-$20,000 cash flow for each Apartment complex. The power of the 1031 exchange is amazing!!! I read Multifamily Millions by David Lindahl, listened religiously to Lifestyles Unlimited Inc. (LUI) podcasts on TUNEIN RADIO for 2 years and attended LUI’s 2 day seminar in Houston, Texas. On Day 2 of that seminar, I knew that eventually I will have Three or four 300-400 unit Apartment complexes. Right now our Tax deferred cash flow sits at $120,000 per year and in 10 years time, I will be sitting at $1,000,000.00 tax deferred cash flow coming in yearly. I still have 4 pricey rental condos here in San Diego that I expect to sell and 1031 exchange this summer when the current rental leases expire.

Check this out!!  I am currently fully executing my first purchase agreement for an Equity Partnership with friends. We are purchasing a 21 unit and my total doors will now be up to 78 front doors, with the 8 single family we also own in the same State as our Apartment complexes. In the equity partnership, I will be putting in 10% of the down payment and receive 20% of the cash flow and 20% of the equity for my connections, running the entire thing as the managing partner. The investors will be contributing 90% of the down payment. 

If a lowly paid teacher earning a combined family income, before taxes of $80,000 can do this. Anyone can!!  If you change the way you look at things, the things you look at, change right before your eyes!!  We are only limited by our self imposed limitations.  I once read and discovered the secret of a fantastic book called Think and Grow Rich and it was pivotal to my success so far and into the future.   Here is the secret discoverd by Napolian Hill back in the 1920's!!  

"Whatever the mind can conceive and believe it can achieve."  

I wonder if Donald Trump ever read this book.  I read it 6 times and am reading it for the 7th time now!

Swanny

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Real Estate Broker · North Richland Hills, TX · Member since 2013 · 1k+ posts · 607 votes
10y

Believe me, I've heard the LU pitch on ripping the bandaid off your 401K and IRA and paying the taxes many times. I don't like that approach, at least not for me. Why?

1) First off, 401K's and IRA's are investment vehicles, not investments. Roth accounts especially have tax advantages that after-tax real estate can't touch. Every investment in my Roth accounts will be tax-free for life!

2) I have enough in my retirement accounts that I'd have to take about a 50% hit on taxes and penalties to liquidate. That's not acceptable to me. Instead, I set up a Solo 401K for my retirement funds, ex. for a relatively small portion of Roth IRA funds which can't be rolled into Solo 401K's per IRS regs. Both my Solo 401K and Roth IRA accounts are self-directed. My strategy is to convert a portion of my trad. Solo 401K funds to Roth every year according to my ability to pay the taxes on such conversions. I haven't had any money in the markets for over a year now - my retirement funds consist solely of passive MF interests, a seller-financed note, and private lending.

3) Retirement accounts offer great protection from creditors and judgments, at least here in Texas.    Liquidating per LU recommendations strips those protections away, creating a lot more exposure (and incentive for others to sue).   Having been recently threatened w/ a (admittedly frivolous) lawsuit, I sleep better at night knowing this nest-egg is judgment-proof.

My passive income is probably lighter than yours, as I've consciously invested primarily in value and hybrid, as opposed to yield, plays.    I'm self-employed as a full-time investor/realtor, and make enough to support myself doing that while continuing to build my passive streams of income.   I'm all set for retirement, just have to supplement w/ some active income for now!

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

    Thanks for sharing.creativity at work to build that dream portfolio

  • Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
    10y

    You are welcome Bhekizwe.  You can do it!!

    Swanny

  • Burlington, IA · Member since 2016 · 2 posts · 1 vote
    10y
    How old were you when you first started investing? How long has it been since you acquired your first property? Soon-to-be investor wanting to know about how long this process takes, thank you!
  • Investor · Longwood, FL · Member since 2015 · 221 posts · 130 votes
    10y

    Thanks, that was some great positive advice. I will take it and try to follow it. 

  • Melrose, MA · Member since 2015 · 12 posts · 1 vote
    10y

    Thank you Swany for sharing your story with us.You have my vote to be a podcast guest. Brandon,Josh I hope you are reading this post.,I am sure that we will learn a lot from a teacher,as always.Thanks again.

  • Apartment / Investment Broker · Cleveland, OH · Member since 2016 · 107 posts · 68 votes
    10y

    Great job! @Michael Swan Always great to hear success stories involving Northeast Ohio Real Estate!  All the best. 

  • James MasottiPro Member
    Rental Property Investor · Washington Township, NJ · Member since 2015 · 1k+ posts · 976 votes
    10y

    @Michael Swan - Congrats on your success! It is most definitely nice when the appreciation in your rental market allows you to 1031 into higher cash flows elsewhere. May your success and good fortune continue for many more years.

  • Investor · San Antonio, TX · Member since 2015 · 227 posts · 66 votes
    10y

    Hey Michael, your achievements are truly inspiring! Awesome job man! 👊 

  • Real Estate Agent · Harrisburg, PA · Member since 2016 · 159 posts · 82 votes
    10y

    I enjoyed reading your success story. Thanks for the inspiration! 

  • Nashville, TN · Member since 2015 · 17 posts · 5 votes
    10y

    Congrats! Was you education done through Bigger Pockets? Did you utilize any other materials? 

  • Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
    10y

    Hi Alex,

    I was 45 when I invested in my first little condo in San Diego.  I just turned 50 in August of 2015.

    Swanny

  • Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
    10y

    Hi @Joseph Moudni,

    Thank you for the kind words.  I don't think BRANDON and Josh would want to interview me.  I am just a basic member and am simply posting on BiggerPockets to create one millionaire a week.  I haven't tried to recruit others in my deals on this forum.  I have included people that have reached out to me.  Maybe one day, I will offer people in my deals from this site.  However, as a teachers first, I believe and always will believe that paying it forwarded by leading others to the truth, I will receive 10 fold. I am a big believer in this forum and have referred others and they have become pro members as a result.  For me, my goal is to create one future multimillionaire each week.  That's what I do!!  I am really proud of my ability to motivate others to take action and overcome their fears.

    Swanny

  • Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
    10y

    Hi @Matthew King,

    I have seen your listings on loopnet and here at BiggerPockets.  I will call you soon.  Don't be afraid to reach out to me. 

    Swanny

  • Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
    10y

    hi @James Masotti, @Naeem Kapasi, and @Joe Chirdon,

    Feel free to message me at my inbox anytime.  I am glad I have ignited a fire in you.

    Swanny

  • Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
    10y

    Hi@Lisa Wade,

    Yes. I listened to LUI and attended their 2 day, along with David Lidahl's Multifamily Millions.

    Swanny

  • Homeowner · New York City, NY · Member since 2016 · 23 posts · 9 votes
    10y

    Thanks @Michael Swan love this testimonial and the share of the knowledge.

  • Investor · Charlotte, NC · Member since 2015 · 27 posts · 12 votes
    10y
    Michael Swan Super motivational, thank you for sharing! I am sure many are like me and hope through persistence, education, and hard work we can achieve the same success you have! Best regards.
  • Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
    10y

    Hi @Victor Crispin,

    You will do it too Victor!!

    Swanny

  • Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
    10y

    Hi@Walker Clark,

    You will do it Walker!!   Albert Einstein once said, "Reality is merely an illusion, albeit a very persistent one."  Change your reality and you change your life.

    Swanny

  • Investor · San Diego, CA · Member since 2016 · 41 posts · 20 votes
    10y

    Thanks for sharing @Michael Swan, always great to hear others "take control" of their financial freedom. Best of luck on the continuation of your journey.

  • Rental Property Investor · Raleigh, NC · Member since 2014 · 30 posts · 9 votes
    10y

    @Michael Swan: Thanks for sharing your success story.  That was the first post I read this moning and now I am fired up to start the day!

    Tom Mills

  • Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
    10y

    Hi @Tom Mills,

    I am glad that you are started your day right.

    Swanny

  • Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
    10y

    Thank you @Michael McLoughlin.  Go get it today!!

    Swanny

  • Buena Park, CA · Member since 2016 · 31 posts · 12 votes
    10y

    Thank you for sharing.  I'm also going to be a teacher, I'm switching over from accounting.

  • Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
    10y

    Hi@Cosmo Lee,

    It is a great feeling to be a teacher and be financially free.  I teach because I love teaching.  In the next 2 years I will be 53 years old and will be able to retire if I choose to do so.  It is amazing to teach and just enjoy the kids!!

    Swanny

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