Investor · Columbus, MT · Member since 2013 · 1k+ posts · 1k+ votes
Well I'm old now :( turned 30 today, As I look back over the past 5 years I am grateful for the success that has happened in my life and wanted to share a word of encouragement for those who are just getting started.
I started by house hacking a duplex while only making 35k per year from my day Job. 5 years later we have now done over 10 deals and have 500k+ in net worth and great cash flow from our properties!
Bigger Pockets was THE resource that we used to grow. Thanks to all you people who helped me grow on my journey!
Oh and I hit 1000 posts!
If you are out there and wondering if real-estate is a good path, I hope this can be an encouragement for you! Use Bigger pockets and take lots of action!
Rental Property Investor · Torrance, CA · Member since 2016 · 724 posts · 1k+ votes
9y
No, I'm looking out of state. I've also been looking at Bakersfield CA. My Fiancé is from there and most her family still lives there. Her dad is very handy and could help us rehab. Torrance is way out of my price range for now, and even if I could afford it I don't know if it would ever make sense.
Investor · Columbus, MT · Member since 2013 · 1k+ posts · 1k+ votes
9y
@Jerry W. I have loved your story! Were you on the podcast or have I just read too many of your posts? You offer great advise as well as have an inspiring story.
The west did get hit hard 2-3 years ago! But mostly oil, gas, and coal areas. Thankfully we are not in those areas and the prices keep climbing up here at a slow and steady rate. We do have a local mine but it is small potatoes compared to the whole economy and it is a platinum/palladium mine and those prices have held strong the last 10 years.
Our goal is free and clear properties as well someday. Our first goal is to buy them all (2 more to go) and then ramp up the flipping biz to pay them all off. Something about free and clear that just makes me happy.
Thanks again for your input on my journey over the years!
Wow thanks man! As a minister, your dads podcast was for sure the best one I have listened to. I am sure I listed to it 10 times or more over the past year or so. His advise and perspective is GOLDEN. You guys are dang inspiring!
Rental Property Investor · Pasadena, CA · Member since 2016 · 164 posts · 149 votes
9y
congrats, $500K at 30 is pretty good by any stretch, on that salary, that's extremely good. I'm sure the great appreciation market has helped some but nonetheless, it's due to the action you took!
Wow thanks man! As a minister, your dads podcast was for sure the best one I have listened to. I am sure I listed to it 10 times or more over the past year or so. His advise and perspective is GOLDEN. You guys are dang inspiring!
Thank you Joshua! And I will pass that on to my dad. Good luck going forward!
I toast your success! Your success should be required reading on BP. Looks like you really know how to invest.
I'd say you and your family are the king/queen of delayed gratification. Hope you can enjoy a little more fruit of your labors going forward. I like your humbly saying "if I can do it, anyone can"....but I disagree with the "I'm stupid and lazy"....side comment. Congrats on working 2 or 3 jobs with conviction and succeeding. You're anything but lazy.
"... If I paid off all my debt I would be worth under a million, but who wants to pay off debt when you can grow like gangbusters! "
But then you said: " ...Our goal is free and clear properties as well someday. Our first goal is to buy them all (2 more to go) and then ramp up the flipping biz to pay them all off. Something about free and clear that just makes me happy."
Rental Property Investor · Miami, FL · Member since 2017 · 19 posts · 10 votes
9y
Congratulations on all the success. That is an awesome story. How was the first dive in?
I'm just about to get started myself. Very excited.
Happy Birthday
Arlington, VA · Member since 2015 · 60 posts · 100 votes
9y
I'm having a hard time understanding the numbers here - you made $200k gross over that period (call it 40k a year for 5 years). Assuming you ate nothing and paid 0 taxes, you turned 200k into 500k in 5 years?? What am I doing wrong??
You mentioned that most of the NW gain has been in equity. Does this mean that you bought a house for - I'm making up numbers here - 200k, and the house appreciated to 300k in a 5 year period, and you did some variation of this multiple times?
Can someone explain this to me like I'm five, please...?
Investor · Columbus, MT · Member since 2013 · 1k+ posts · 1k+ votes
9y
@Steve K. We are planning to pay down debt Long term. But In the short term we are using debt to get as many properties as we can. Our goal is to have 10 free and clear SFR cuz of their ease of management. We are almost to the place where we own 10 then we will do our best to pay them off.
I am kinda lazy at times. I like to play computer games WAY to much (league of Legends!) . I sometimes wonder where i could be if i really applied myself.
Great question! the short anwser is "Other Peoples Money" or debt.
Most of our wealth was created by using the BRRRR method. (look it up here on the site) We bought A house each year for the first 3 years for about 50k a house. They were UGLY foreclosures that were all worth between 120k-150k when they were fixed up. We did almost all the work ourselves and and had some miserable living conditions. It was crazy.
Our net worth last year in June was 245k... In one year in shot to 520k. instead of buying 1 house that year we sold 2 and bought 4 more. Now we have to pay between 65k and 75k to get a good deal but they are still selling for 130-150k range. Course we dont sell them all we keep and rent them for about $900 a month.
ALL the house we bought in the last year were 100% financed, this would not have been possible without the previous 4 years of sweat equity.
In my experience talking with other investors growth is never linear. It cruses along almost tortoise slow and then it explodes. We just hit one of those explosions and that is why i posted, to let people know that all of the pain and suffering was worth it!!!
The first jump was relatively easy for us cuz it was a house hack duplex. Its just like buying a home for yourself but it has income! (way cool)
The scariest thing was buying house number 3. It felt like we were at the point of no return when we singed that 3rd mortgage.
My advise would be to jump in feet first and then learn to swim, but that is my personality. If you have the right attitude and education there is nothing you cant hussle your way out of. Or at least nothing i have yet ran into :)