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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  • Account Closed
    OP
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    10y
    Originally posted by @Kevin Q.:

    @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 :)

    That's the building in Japantown where we stopped. My wife said that's a nice building and why we stopped there. I told her we own it. Johnson said "Your wife has absolutely no idea what you're doing Minh." LOL!

    It's a nice 8-unit building in a great location. Buildings in this part of town rarely go to sell. It makes sense from an Asian's point of view especially Japanese. You buy and keep it forever. Who says there's no cash-flow in the Bay Area and appreciation is speculation? You know what? I agree with them. Send them out of state. I don't need additional competitions. ;o)

    4Reply
  • Larry Im
    Real Estate Opportunist · Tustin, CA · Member since 2012 · 23 posts · 17 votes
    10y

    Hey Minh, happy anniversary on one of the most important dates in your life! Thanks again for sharing with those, who gain inspiration from your experience and knowledge. I know for myself, your posts and insights have tremendously influenced my REI strategy. BP members like you make this site worthwhile. No angle for sales, just straight up selfless contributions. Thanks!!

    1Reply
  • Koosha T.
    Sacramento, CA · Member since 2015 · 5 posts · 9 votes
    10y

    @J. Martin Thanks J. I got in at the low and now the market has definitely changed as you highlighted. However, from a buy and hold stance, you can still return ~4-8% by doing your due diligence, and, other opportunities exist. From a micro lens, the opportunity for job growth definitely exists, disconnected from the establishment of government jobs. Several of the larger private entities here have contracted in the past 4 to 6 years, but there's new blood coming in for added fuel. Will be interesting to see how it all unfolds in the coming year, especially with the renovated downtown area.

    And I'll definitely ping you sometime. 

    @Al Williamson sounds like a great event!

    @Account Closed Gotcha. Thanks. The intricacies of BP :) The layout spread looks nice and simple, catering to folks of most all backgrounds. I like it! Another non-vanilla approach to making it "simply work". Can't expect returns without some creativity and work, especially now a days. Without derailing your thread, it ties into your own story of simply making it work when the blocks were not aligning. 

    2Reply
  • Vikram Sharma
    Monroe, NJ · Member since 2016 · 13 posts · 6 votes
    10y

    Minh, thanks for sharing your story. It's an inspiration for newbie like me who wants to build a real estate portfolio.

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

    @Larry Im, Thank you for the kind words. Hope things will work out on your end.

    @Koosha T., Don't worry about derailing the thread. If you go through life believing everything happens for a reason, it will take a lot of pressure off of you. The 4-months I was going through hell during the Great Recession, I kept reminding myself it was a test. The sun would shine again after the storm. That was how I got myself through those dark days. Don't take it too serious. Let it be.

    @Vikram Sharma, You must have conviction. I have a tennis friend who went through the something similar. He read a book about Steve Jobs, where Steve mentioned that if you truly believe in something/product/company, etc, go all in. He believed in Tesla Company and made a bet of his lifetime on it. He put all of his savings and 401k money into Tesla stock. 

    After years of doing nothing, TSLA stock took off. He cashed out, bought a million dollar home all cash, bought a brand new Tesla, quit his job at Oracle and started up his own consulting firm. He was a renter before then. 

    He asked me what got me out of my W2. I told him my passion for real estate. His response was "No, it was my CONVICTION."

    4Reply
  • Vikram Sharma
    Monroe, NJ · Member since 2016 · 13 posts · 6 votes
    10y

    @Minh Le - Thanks for your brilliant ad ise. I will live by it. Much appreciate it!!

    1Reply
  • Vamshi Ananth
    Toronto ON, Canada · Member since 2016 · 96 posts · 26 votes
    10y
    Originally posted by @Jeff Pollack:

    @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

     Inspiring! story Jeff, I started attending your monthly SJRENC meetup recently for the last 3-4 months and find these very interesting and engaging. I've been mostly a silent spectator on the meetups digesting all the information. Just wanted to give you a shout out for arranging the meetup and enabling local people to network.

    2Reply
  • Jeff Pollack
    Real Estate Investor · Redwood City, CA · Member since 2012 · 272 posts · 399 votes
    10y

    Hi @Vamshi Ananth, I'm glad you've enjoyed the SJRENC meetings you've attended thus far. Don't be a stranger. Take advantage of all networking opportunities. It only takes one connection to change your business and your life.

    Cheers,

    Jeff

    4Reply
  • J. MartinPro Member
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    9y
    Originally posted by @Account Closed:

    @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.

    My handyman actually decorated this one, trying to copy the style of some of my others. I don't really like the artwork. But thanks for working with me on the accent wall! I love it!! And take some brighter pictures Minh!! Don't quit investing to be a staging photographer!! lol

    This is a real bed. Not a sofa bed. But I always tell my handyman to get sofas that also fold out to beds, whenever buying one..

    Recognize this one?

    Eh?

    You probably don't recognize this one below Minh.
    This is the very first apartment I lived in when I moved into my first 4plex I bought in Richmond.
    It's about 3 blocks south of the BART station. A 2br/1ba. I rent this apartment for about $2,500/mo furnished, for 2-3 months at a time. It is the smallest of 4 units. I purchased the property for $375K on New Years' Eve 2012. (Happppy New Year!!!)

    As I look at the pictures, there are some things that need to be worked on. Will do another post on that..

    3Reply
  • Account Closed
    OP
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    9y

    @J. Martin,

    Wow, those pictures make all the difference. It's like day and night. I meant the red and brown sofas are sofa beds.

    Yes and yes, I recognize them. Nice decorations. Was there a reason why there's no accent wall with the loft?

    Unless a staging photographer is well compensated with flexible schedule, I can't afford to be one. Wife said I have too much time on my hand so I'm looking for a new gig to fill my time. @Johnson H. said my background is in Civil Engineering so he can't hook me up with a job at his place. Maybe you can help me out with your connections. ;o)

    Kidding aside, I'm starting a new gig with some friends. You and Johnson will know what it is when the time is right. It will be a fun project filled with potentials.

    0Reply
  • J. MartinPro Member
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    9y

    The pictures sell the place, along with the reviews. These were done by Rika, the same photographer I hired to shoot the SF Bay Summit. (will post some of those soon.) All the couches should be fold-out sofas, but I think maybe the red one is not. Talked to Sergio about that. Fold-outs are a rule in furnished rentals..

    I wish there was an accent wall in the loft too. At the others, we talked to your guys before they painted. Can't remember what happened here. Maybe will have Sergio do it at the next turn.. I think it really adds a lot, especially for the cost. Best ROI in RE probably lol

    I agree, you can't afford to be a photographer. Opportunity cost is too high ;)

    Curious what you're up to. Foreclosure courses? New biz? Different RE play? Maybe you can tell me before Bruce Norris at SJREI. Sent you a couple dinner options by email near the venue..

    1Reply
  • Jerry W.Pro Member
    Moderator
    Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
    9y

    @Account Closed, great story bud.  I love what you are doing out there in CA.  If you really need a job I have a few that have been neglected.  I have a horse or 2 that desperately need ridden.  I have been so busy chasing the 3 jobs thing that I have only been on a horse twice in as many years, and none were horses I owned.  If I brought I saddle out it would scare them badly as I am sure neither of them will remember what they are.  I actually went elk hunting last year for the first time in a few years as well, and had a blast.  Enjoy the fruits of what you have done.  It is rewarding to see good things happen to good people.

    2Reply
  • Henry Pho
    Castro Valley, CA · Member since 2016 · 18 posts · 10 votes
    9y

    @J. Martin I like the pictures of your furnished rental. Very nicely done! I can start to see the market you are in.  Please post more pics so I can get some ideas.

    1Reply
  • Account Closed
    OP
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    9y
    Originally posted by @Jerry W.:

    @Account Closed, great story bud.  I love what you are doing out there in CA.  If you really need a job I have a few that have been neglected.  I have a horse or 2 that desperately need ridden.  I have been so busy chasing the 3 jobs thing that I have only been on a horse twice in as many years, and none were horses I owned.  If I brought I saddle out it would scare them badly as I am sure neither of them will remember what they are.  I actually went elk hunting last year for the first time in a few years as well, and had a blast.  Enjoy the fruits of what you have done.  It is rewarding to see good things happen to good people.

    Thanks for the offer Jerry. I'll leave the horse riding to @J. Martin. He's much more adventurous than I. My excuse with my wife is that I'm most productive when I'm sitting around doing nothing. That's when I come up with new ideas. My partner David is loving the new ideas. He's going crazy with it.

    With respect to needing a job, I just want to get to my ultimate goal sooner. If history is any indication, your market has another year or two to go before it bottoms out. Hang in there.

    0Reply
  • Michael Anderson
    Real Estate Professional · Baton Rouge, LA · Member since 2016 · 109 posts · 30 votes
    9y

    keep posting but most of all keep sharing thanks for the journey that you have taking us on in view of your world from the west coast, aka sunny california what do you guys plan a doing for the next big project or projects? ......Congrats 

    1Reply
  • Sean C.
    Real Estate Professional · San Jose, CA · Member since 2016 · 72 posts · 14 votes
    9y

    Thanks for the share Minh, really inspiring. I love hearing people's success stories along with their bumps and bruises, great reminder that anyone can do it if you work hard and take risks. Hoping to share mine on here down the road. :)

    1Reply
  • David Faulkner
    Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
    9y

    Great stories and overall philosophy Mihn. Another take away message for me is that when things seem the scariest, they are often actually the safest, and when all seems safe it is often the riskiest, so don't get to scared when things are going down nor too complacent when they go well ... Warren Buffett said it more succinctly, though.

    I can relate in a different way to your chosen quit day of September 11, 2009. I married my wife on July 4, 2009 so that I could remember the date and tell everyone that I gave up my freedom on independence day :)

    Nice to meet you and others at the summit ... now I owe you 2 dinners since you picked up the tab while I was outside shooting the breeze with J. :)

    1Reply
  • Account Closed
    OP
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    9y

    @Michael Anderson, I'm working on a couple of projects with some local friends who I met through BP. The projects are still in infancy stage. We'll definitely share the results once they have materialized.

    @Sean C., That's a good one. Getting married was one of the happiest days in my life. I told Johnson and David if I could do it allover again, I would have married my wife 3 years sooner. There was no reason for us to wait until I completed my MS. I'll bring my wife with me next time so you can buy 2 meals at the same time. :o)

    0Reply
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