We Are Only One Decision From a Totally Different Life

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We Are Only One Decision From a Totally Different Life

Account Closed
Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes

I was driving home from a party yesterday afternoon and saw a truck with a big American flag driving on the freeway. I asked my wife what's the occasion? She said September 11. She reminded me that I've been off my W2 for exactly 7 years.

Around April 2009, I was polling my family and wife's family about me quitting my job. Both of us have a decent size family with 5 siblings on my side and 6 siblings on her side. As expected the responses were overwhelmingly negative. Almost everyone thought I was nuts. This is 2009 when the sky was falling and everyone was getting laid off. Those, who still had a job, was working to death in fear of getting laid off. Here I was, wanted to do just the opposite in pursuit of my dreams. Thankfully, wife supported my decision.

By July, I planned for my exit and wanted to make it a memorial one. September 11, 2009 happened to fall on a Friday. So much memory came back when I looked at this date on the calendar. I remember vividly what I was doing and where I was when our country was under attacked on 9/11/2001.

On my last day at work, I felt liberated. However, I had mixed feelings on my drive home. On one hand, a huge burden had been lifted off my shoulder. OTOH, I was nervous and scared. What if scenarios were running through my head. 

Long story short, it turned out to be one of the best decisions I've ever made in my life. Not only have I replaced my low 6-figures salary, I have also accumulated a decent size real estate portfolio in the Bay Area....a tough task by many standards. It has been one of the best 7 years of my life. It's easy to look back now and smile, but the decision was an extremely difficult one at the time.

If you have Sunday syndrome, I know how you feel. I used to feel that way on Sunday afternoon. Feeling nervous and occasionally sweaty palms thinking of going back to work tomorrow? Well, you're only one decision away from having a totally different life. As Albert Einstein wisely said "A ship is always safe at the shore, but that is NOT what it is built for."

Best of luck.

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Jeff Pollack
Real Estate Investor · Redwood City, CA · Member since 2012 · 272 posts · 399 votes
10y

@Account Closed, you are a braver man than I, my friend. By late 2011 I started buying out of state (TX) and had a plan to leave the day job. I was going to collect enough cash flowing property out of state (SFH, duplexes, triplex, quads - in TX and GA) to quit the day job within 3 years and do real estate full time. But as I came to realize later, leveraged SFH homes really don't cash flow worth a damn, but that's for another thread.

I collected quite a few of these out of state properties, but I was not going to hit my "walk away" number any time soon.  My wife would periodically suggest, "Why don't you just quit and do real estate full time?  You hate your day job.  Just walk away." But I always had some reason for why it was not the right time or why it made sense to wait a bit longer. I did not like working a J.O.B., but was not uncomfortable enough (or brave enough) to walk away.

Then I was done a HUGE favor at the end of 2013. About 75% of the company I worked for got laid off. We could all see the train coming from a mile away. Everybody knew it would be a nasty layoff, but nobody knew exactly when it was coming our how big it would be. I decided to embrace the impending doom. I told my supervisor/head of the department that I hoped to be laid off.  When layoffs were announced 6 weeks before they actually happened everybody was freaking out. Getting their CV's together and job hunting. I was the only one in the company who was happy. In fact, I was thrilled. I had already decided the layoff would be the best thing that ever happened to me. I told everybody exactly what I was going to do next and burned all my bridges to ensure I could never go back again.

It was a bit rough at first and luckily my wife had the day job with the benefits, health insurance, etc for the family or it might have gotten a little dicey.  My father suggested numerous times that I should consider looking for a job. By then I was so mentally beyond that concept that I told him I'd rather live out of a cardboard box than work for somebody again. 

That first year after being laid off I acquired 10 more properties for the same amount of $ out of pocket as the first 3 had cost. And this year I'll make more than I did during the last 5 years of my low six-figure day job. Unlike Minh I did not have the guts to jump into the deep end of my own volition, but am very glad I chose to embrace the change when it was forced upon me and am grateful for being laid off. If you're waiting for the push that may never come you may want to reconsider.

Cheers,

Jeff

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  • Henry Pho
    Castro Valley, CA · Member since 2016 · 18 posts · 10 votes
    10y
    Her reaction is priceless.

    Originally posted by @Account Closed:

    @Hersh M., no podcast for me. My wife will make me blow up my BP account if she finds out. She's very low key. Two of my good BP friends, @David C. and @Johnson H. know this. 

    My wife, little daughter, Johnson and I went out to lunch last month. I gave him a tour of some of our buildings. I stopped by a couple of buildings and my wife asked why we stopped there. I told her we own the buildings. She was like "Oh." On our last stop in front of our latest acquisition, which is a beautiful building in Japan town. My wife said that's a nice building. I told her we own it. She was shocked. LOL!

    It's hard to believe but my wife don't know how much real estate we own. As long as I get the errands done, she's happy. Right David? LOL!

    1Reply
  • Stanley Ch
    Sugar Land, TX · Member since 2016 · 2 posts · 4 votes
    10y
    Thank you Minh for this post. Truly inspirational specially to a newbie like me.
    1Reply
  • Account Closed
    OP
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    10y

    @Henry Pho, yeah, Johnson put in a few good words for me. He told my wife "Your husband is amazing. Not everyone can do what he does......" That was why I bought him sushi that day. It was supposed to be his treat. ;)

    @Stanley Ch, I'm glad you liked it. Good luck.

    1Reply
  • Account Closed
    OP
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    10y
    Originally posted by @Annelyse Finley:

    @Account Closed thanks for the inspiration.  I will re-read your post again in moments when I need help overcoming frustration or fear.  

    I'm curious about how long you spent studying and preparing before you made the leap into the void.  Were you doing real estate during your nights and weekends long enough to develop the confidence to quit the day job?  Had you been studying real estate fundamentals and dissecting potential strategies with mentors for a while before leaving the W2?  

    I ask because I'm contemplating the balance between forging ahead balls to the wall versus having my ducks in a row before stepping off the ledge.  I want to be bold but I also want to be wise.

    Annelyse,

    You remind me of this saying "Everything you want is on the other side of fear." ;)

    I went to grad school in 1999. My favorite professor said one thing that stuck on my mind. He said if I look on your nightstand, I can tell you what you should be doing with your life. I went home that night, looked on my nightstand and saw 3 real estate books. The lightbulb went off. I believe I've been studying/analyzing our Bay Area market and some out of state markets since 1999-2000 time frame.

    I traveled to Tampa Bay, FL 3 years in a row to check out that market in the early 2000's. I travelled to DFW and Houston, TX to check out these markets. I also travelled to Portland, OR to check out the market there. After seeing what I saw and talking to the local folks, I realized the grass wasn't greener on the other side so I came back to the Bay Area and focused here.

    Although I was working full-time, I was always reading real estate and economics at nights and weekends. I kept analyzing deals that made absolutely no sense as our housing market kept trending higher and higher. I was constantly talking to friends, co-workers and neighbors to gauge their thinking of our crazy housing market. They were one of the best indicators IMO. Basically, be fearful when others are greedy.

    Then came March 2008 when Bear Sterns collapsed, followed by Lehman Brothers and Merrill Lynch in September 2008. Companies were laying off left and right. My company went through a 2nd or 3rd rounds of lay-offs. I surveyed friends and siblings. Everyone was saying don't buy real estate, it would be 10% cheaper next year. That was the signal we're close or at the bottom of the market from an investor's psychology. This was in Feb 2009. All numbers also pointed to the bottom of the housing market based on historical data. 

    The saying "Be greedy when others are fearful" kept singing in my head. I told my siblings, cousins and wife's siblings, whoever were willing to listen, to start buying real estate. I told them real estate had never been this cheap in the American history. Some bought that year; some bought the following year; and some bought more the coming years. Everyone now said quitting my job was the best thing that happened to the families. LOL!

    I was living and breathing our housing market on a daily basis. I could feel which way the market was going. Being able to buy at the courthouse steps allowed me to gauge where the housing market would likely be headed in the next 6 months. It was apparent the housing market would be hot in summer 2012 when inventory started to dry up at the courthouse steps. I really really knew my market back then.

    Long story short, I waited +/- 10 years before I jumped in head first. You can say "patience is a virtue." I think Albert Einstein said it better though. "The only source of knowledge is experience." I learned things I didn't know before I jumped in. I made so many mistakes along the way and had to modify my strategies. As the market changed, I had to pivot my acquisition and financing model. I've done this over and over in front of @Johnson H.'s eyes. I didn't realize it until he brought it to my attention. In fact, I'm working on a couple of new strategies now. Feel free to reach out after October 15th if you have time to hang out with us. Johnson used to live in SF and has every other Friday off. We meet, he buys us lunch, and we exchange notes and talk strategies. ;)

    4Reply
  • Annelyse Finley
    San Francisco, CA · Member since 2015 · 21 posts · 12 votes
    10y

    @Account Closed!

    All kidding aside, there's lots to learn from your story.  One of the key things I'm taking away is that no matter how much one prepares, there's no substitute for the school of hard knocks.  And... circumstances are continuously changing so the best plan on paper can be worthless in a matter of months.

    Take action, learn from the results, be flexible enough to adapt as things change.  

    Rinse, repeat.

    2Reply
  • Vanessa Chow
    Investor · Los Altos, CA · Member since 2016 · 13 posts · 7 votes
    10y

    @Account Closed

    It has been great having the opportunities to meet you in person and read your leap of faith stories.  This is definitely inspiring while I am typing this from my office desk.  I look forward to the day I can tell my own version of the story!

    4Reply
  • Johnson H.Pro Member
    Investor · San Francisco, CA · Member since 2010 · 910 posts · 889 votes
    10y
    1Reply
  • Account Closed
    OP
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    10y

    @Annelyse Finley, you got it. Learn the rules of the game and do it better than your competitions. Be formless, shapeless - like water. I really like this quote from Bruce Lee. The ability to adapt to any environment.

    @Vanessa Chow, taking a leap of faith is not easy, and it's not for everyone. Security vs. Uncertainty. Most people would choose the former over the latter. Could this be the reason why only a small percentage of people gets to live in their own way? This reminds my of what Albert Einstein said "The one who follows the crowd will usually go no further than the crowd. The one who walks alone is likely to find themselves in places no one has ever been." By the way, you forgot to mention J Martin. ;)

    @Johnson H., they call it paying it forward. Not only have I offered my time for free, I have actually bought BP members lunch, dinner and/or coffee. I have to admit the ROI has been suck. Maybe I should stop offering my time for free. People tend to not value things they don't pay for. Hmm...

    3Reply
  • Luke G.
    Investor · Asheville, NC · Member since 2015 · 69 posts · 23 votes
    10y
    Very inspiring read! I have made my decision. The closing of the sale of my business is around the corner, wife and I just received a above list offer on our sfr/live and flip here in Lombard, IL and in a couple short months we will be moving to Asheville, NC. I am excited and nervous about the full time real estate venture ahead! All good feelings and vibes!
    2Reply
  • Jeff Pollack
    Real Estate Investor · Redwood City, CA · Member since 2012 · 272 posts · 399 votes
    10y

    Hey @Account Closed, thanks for the congrats.  I was planning on investing the proceeds with you on multifamily ;-) 

    Your wife's job exodus must have been quite the curve ball.   

    While I don't HOPE my wife gets laid off, I've told her numerous times that if she did get laid off it would be great for my business.  I'd immediately become far more desperate and do all kinds of things that I'm not doing now because I'm not uncomfortable enough.

    A short story another investor told me a few years ago.

    Two friends are sitting on rocking chairs on an old wooden porch. The owner's hound dog is lying on the porch taking a nap. The friends are talking, enjoying the morning, and every once in a while the dog shifts in its sleep and gives out a yelp, then puts its head back down and dozes off again.  

    This happens repeatedly and finally the owner's friend asks, "Why does you dog keep yelping like that?" to which the owner replies, "Oh, there's a nail sticking out of that board he's lying on and whenever he shifts a bit it sticks him in the side." The friend asks, "Well then why doesn't he move?"  The answer: "Because he's not uncomfortable enough."    

    7Reply
  • Jeff Pollack
    Real Estate Investor · Redwood City, CA · Member since 2012 · 272 posts · 399 votes
    10y
    Originally posted by @Vanessa Chow:

    @Account Closed

    It has been great having the opportunities to meet you in person and read your leap of faith stories.  This is definitely inspiring while I am typing this from my office desk.  I look forward to the day I can tell my own version of the story!

    Make sure you post your story here for everybody to read Venessa.

    Happy Hunting!

    1Reply
  • Account Closed
    OP
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    10y

    @Luke G.,

    I'm glad you found the story inspiring. It would be great if you could find a way to put in a safety net. Best of luck with the new adventure. It's definitely a rewarding one if you can crack the code.

    @Jeff Pollack,

    I'm flattered by your comment, but there's no cash-flow in the Bay Area. :-) 

    Well, I just want to share that we can plan all we want, but god may have a different plan for us. When life hands us a lemon, make lemonade instead of blaming the circumstance. Loved the story. Thanks for sharing.

    1Reply
  • Micki M.
    Flipper/Rehabber · York, UK · Member since 2013 · 895 posts · 453 votes
    10y

    Great post to read as I'm packing up my stuff for two months overseas running my business remotely.  Nervous and excited all rolled into one.

    2Reply
  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    10y
    I am a Minh Le fanboy!
    1Reply
  • Koosha T.
    Sacramento, CA · Member since 2015 · 5 posts · 9 votes
    10y

    No better place for a first post. Great story @Account Closed! Inspiring - I love how you pushed through obstacle after obstacle, and now you're enjoying the fruits of your labor as you continue to adjust and grow in today's market.

    I've been hearing left and right for couple of years now, how the Bay Area market is impenetrable, you'll lose your pants if you buy "now", etc. etc. Great to see someone who proved otherwise on a grand scale without any handouts. Grit and smarts!

    Hopefully I can meet you and @J. Martin one of these days, as I really gravitate towards the factual based posts and how open and kind you both are. 

    2Reply
  • Account Closed
    OP
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    10y

    @Micki M., looks like you have a fan here.

    I wish you all the best of luck.

    3Reply
  • David C.
    Investor · Bay Area, CA · Member since 2014 · 207 posts · 190 votes
    10y

    @Account Closed's kool-aid on Oakland.  :)

    2Reply
  • Koosha T.
    Sacramento, CA · Member since 2015 · 5 posts · 9 votes
    10y

    @Account Closed that's awesome! Reminds me of many other successful folks in every respective industry, who painstakingly climbed the unpaved steps - becoming comfortable with being uncomfortable.

    Great transparency - that's the part of the "overnight success story" not many have a glimpse into - the stress and struggles that etched the success. Great story & mindset!

    That's funny lol - great group of friends keeping the text juices flowing at all hours - no time for sleep with potential investments brewing :)

    I've read several of @J. Martin's posts and shot him an email a month or so ago when I first visited BP. Love the graphs and numbers - that's my language. Definitely a fan of what he has accomplished. I can't seem to get the tag working on his name though.

    Great group of helpful folks on BP :)

    2Reply
  • Mike Dymski
    Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
    10y

     Uh oh, there's a beer on my nightstand...

    4Reply
  • Kevin Q.
    Investor · Oakland, CA · Member since 2016 · 6 posts · 1 vote
    10y

    @Account Closed Thanks so much for sharing your story and wisdom, it takes a whole lot of determination & hard work to get to where you are. While it is not at all easy (really nothing is) i can't wait to get started my own journey very soon, i'm getting a few leads here and there and hoping to do my first deal by end of this year..

    I do commute to SJ from time to time on the weekend, is it ok to reach out to you for a cup of coffee or something? 

    You should definitely be on the podcast, you're going to "light up lots of lamps" and brighten your own path, if your wife was ok with you with "I told my siblings, cousins and wife's siblings, whoever were willing to listen, to start buying real estate" i'm sure she'd support you wholeheartedly to do a podcast :)

    1Reply
  • Johnson H.Pro Member
    Investor · San Francisco, CA · Member since 2010 · 910 posts · 889 votes
    10y
    Originally posted by @David C.:

    @Account Closed's kool-aid on Oakland.  :)

    Minh, I think we have texted as early as 5am. I have received emails from David as late as 4:15am. So between the two of us you will never sleep LoL!

    As for Oakland, I just don't know the city besides the area around Lake Merritt and Chinatown which is why I have stayed away from it. It also seems like there is a ton of money moving into the city. When I see everyone zig, maybe I need to zag, hard to say but there is opportunity for sure. The city is definitely gentrifying, similar Brooklyn as to New York. I just want to make money so sign me up!

    1Reply
  • J. MartinPro Member
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    10y

    @Koosha T.,

    I'll be up at @Al Williamson 's Summit at the Guild in 2017 (save the date yet Al..?). Definitely plan to be there if I don't see you before that. Not sure why you can't tag me. Maybe my name is too short?!? lol Thanks for the kudos! Glad you like the posts :) I've been traveling lately and was busy with the Summit, but give me a call or text me a few times and I'll get back to you :)

    Here's the most recent data for Sacramento for job growth, economic conditions, and home price increases in the Sacramento / Roseville / Arden / Arcade Metro area. It looks like the highest % gains in home prices are over, like most geographic areas coming off the bottom, although an 8% annual clip is not bad. Will the economy get a second wind of accelerating job growth?

    Or will job growth follow declining economic conditions, and decelerate? What happens to home price increases when job growth decelerates? (Not that right y axis is different scale than left)

    @Account Closed,

    "We Are Only One Decision From a Totally Different Life"
    So true! :)

    2Reply
  • Al Williamson
    Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
    10y

    March 4 2017

    Summit at the Guild

    1Reply
  • Account Closed
    OP
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    10y

    @Koosha T.,

    For the tag to work, you two have to be colleagues, or @J. Martin has to have a post on this thread. J is definitely a shrewd businessman. I recently sneaked into one of his corporate rental units on a turnover.  He has a decent taste when it comes to staging. Knowing J, I believe that's a sofa bed, but I could be wrong. Here are a couple of pix.

    1Reply
  • Account Closed
    OP
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    10y
    Originally posted by @Mike Dymski:

     Uh oh, there's a beer on my nightstand...

    Mike,

    Thanks for chiming in. As they say in tennis, there's no right way; there's no wrong way; there is always a better way.....to hit a tennis ball. It's definitely not for everyone. Whatever works for you, keep doing it.

    1Reply
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