0-25 units in four months and it all started with Bigger Pockets!

0-25 units in four months and it all started with Bigger Pockets!

Rental Property Investor · Papillion, NE · Member since 2017 · 398 posts · 1k+ votes

Its amazing that the morning of January 1st I knew nothing about real estate investing. Now after purchasing six deals with a seventh under contract I realize I have just scratched the surface and have much more to learn.

After reading Rich Dad Poor Dad on Jan 1st (and three days before my 32nd birthday) I had a realization… I needed to get my a** in gear, take calculated risks, and begin pursuing the lifestyle I have always dreamed of.

I started my real estate endeavor by reading numerous books including “Millionaire Real Estate Investor”, “The One Thing”, “Multi-Family Millions”, by David Lindahl, “Toddlers Are A**holes” (more on that later), all of Ken McElroy’s books and many more. I couldn’t get enough real estate insight by reading alone so I started consuming Bigger Pockets podcasts on my drives to work.

At the same time I took the advice of the books/podcasts I was reading and reached out to everyone smarter and more successful than me. That lead me to…. My wife’s, cousins, boyfriends, friends, friend….seriously! (I will include an ancestry chart in the appendix). This individual is now my mentor, business partner, and good friend.

First deal: 100% attributed to Bigger Pockets. Colton Luchsinger (great real estate agent!) reached out to me on BP and after some conversations he sent me a deal. Not having a clue what to do I reached out to my soon to be partner for his opinion (wifes, cousin, brothers, friend, etc.). On my own accord I would have said no to the property, being too fearful of the lackluster financials, he on the other hand saw an opportunity and he was correct. The property appraised at 20% over sales price and rents have been increased substantially after purchase.

Today I just closed on my 24th and 25th unit less than four months after my first deal.

I am so grateful and happy to be in the position I am in. The days since January 1st have taught me more about business and myself than nearly a lifetime of learning.

I hope to continue to connect with amazing individuals on BP and learn from others everyday!

(Below is a pic of 24 and 25.)

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Most Popular Reply

Roshan K.Pro Member
Oklahoma City, OK · Member since 2017 · 258 posts · 215 votes
9y

Congrats on your success!!

Can you talk about how you made financing happen? Most people can't afford downpayment on their first door, let alone 25 doors in 4 months!!

See this reply in the discussion

160 Replies

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  • Real Estate Agent · Addison, TX · Member since 2017 · 57 posts · 7 votes
    9y
    Collin Schwartz Congrats on being one of the few to take the lead into the pool of financial freedom. You seem to be doing great! I am a wholeseller in Dallas if you ever want to explore this market. Good luck on future success!
  • Auburn, WA · Member since 2016 · 11 posts · 3 votes
    9y
    Wow what a motivation! I've been looking to jump in on my first deal and this definitely proves how attainable this lifestyle is to achieve through networking and hard work
  • Keizer , OR · Member since 2015 · 8 posts · 3 votes
    9y
    are these properties all local to you or spread out? I'm looking at buying my first invetment property this time next year. using a VA loan and living in one of the units for 2 years (required for VA funding) but after that I want to reach outside of my market to find properties in the same price range you did. just curious on your experience with you properties locations
  • Rental Property Investor · Papillion, NE · Member since 2017 · 398 posts · 1k+ votes
    9y

    @Brent Breitbach all the properties are in a fairly close vicinity so that I can, 1. effectively manage the units 2. So that I am familiar and comfortable with the location. 

    I really like the ability to see and manage my properties on a daily basis.

    Best of luck with future investing!

  • Rental Property Investor · Syracuse, NY · Member since 2017 · 156 posts · 72 votes
    9y

    @Collin Schwartz - Congrats on a fantastic start Collin! Truly impressive! 

    Any advice on starting that kind of trajectory without a HELOC available for downpayments?

  • Tulsa, OK · Member since 2016 · 119 posts · 23 votes
    9y
    Great job! Your story is surprising!
  • Investor · Northern Virginia · Member since 2017 · 159 posts · 59 votes
    9y

    Congrats! Thanks for sharing.

  • Engineer · Carlsbad/San Diego · Member since 2014 · 285 posts · 97 votes
    9y

    @Collin Schwartz Congrats!! Why 5 years fixed and not 30? 

  • Real Estate Professional · Glendora, CA · Member since 2016 · 203 posts · 17 votes
    9y

    Great Job ! Truly inspiring !

  • Sydney, NSW · Member since 2016 · 23 posts · 6 votes
    9y

    @Collin Schwartz Wow.....great story

    Congrats! 

  • Leicester, MA · Member since 2016 · 137 posts · 36 votes
    9y
    @Collin Schwartz
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    9y

    It sounds like you have a solid plan in place and are doing well.  Nice work!

  • Rental Property Investor · Papillion, NE · Member since 2017 · 398 posts · 1k+ votes
    9y
    Hersh M. I use commercial lending. It allows me to purchase using an llc, often times no appraisals needed, and much quicker turnaround.
  • Wilmington, DE · Member since 2016 · 1 post · 2 votes
    9y
    Well done! Someone asked this but i didnt see a response. You are finding that banks are allowing your down pmt to be from an HELOC? Is that commercial loans only maybe given their approval is not solely based on your credit? If this is the case, i now have a goal similar to your accomplishment. Thx Collin!
  • Lender · Nashville, TN · Member since 2017 · 61 posts · 26 votes
    9y

    @JT Yourinson yes, chimerical lenders will allow down payment funds to come from helocs so long as the global cash flow makes sense.  i'd be happy to help you.

  • Miami, FL · Member since 2017 · 25 posts · 1 vote
    9y

    congrats man I'm happy for you good luck with your success and keep inspiring others 

  • Rental Property Investor · Lincoln, NE · Member since 2013 · 91 posts · 31 votes
    9y

    @Collin Schwartz That's an incredible start and pace, seriously impressive. Congratulations!

    After getting started with one last year and one this year, I've taken a pause to try to figure out how to ramp and scale things up to exactly that sort of pace. Would love to understand more about your deal flow.

  • Involved In Real Estate · Denver, CO · Member since 2011 · 2 posts · 1 vote
    9y
    Good job!!
  • Pelham, NY · Member since 2016 · 12 posts · 2 votes
    9y
    Originally posted by @Collin Schwartz:

    Here is an example of my third property I purchased (duplex) I am choosing this one as the price was $100k and makes for easier math:

    Purchase Price: $100,000

    Rehab cost: $19,500 (remodeled one unit, roof patching, finished flooring in both units)

    Closing Costs: $4,340

    All financing (Mortgage and LOC) amortized over 20 yrs (4.75% int rate): $801.32

    Vacancy: 5%

    Repair: 10%

    capex: 5%

    Management (I pay this to myself): 10%

    Taxes: $2,937

    Insurance: $1,300

    Cap Rate: 10.81

    Yearly Cash Flow: $3,787

    Principal Paydown: $3,808

    @Collin Schwartz Congrats Colin - very inspiring to hear about the results from you taking action. 

    Question about the taxes - I'm new to REI accounting but your taxes look high. Shouldn't all the expenses (i'm thinking depreciation especially) help reduce your effective tax rate much lower?

  • Rental Property Investor · Papillion, NE · Member since 2017 · 398 posts · 1k+ votes
    9y
    Gavin Tam the taxes are property taxes. Also you are correct Omaha property taxes are very high!
  • Investor · Chicago, IL · Member since 2015 · 75 posts · 32 votes
    9y

    @Collin Schwartz Great Story!! Congratulations and I hope you keep building your real state portfolio.

    Oscar. 

  • Rental Property Investor · Papillion, NE · Member since 2017 · 398 posts · 1k+ votes
    9y
    Thanks for the encouragement Oscar Jacome!
  • Rental Property Investor · Papillion, NE · Member since 2017 · 398 posts · 1k+ votes
    9y
    Thank you Luis Angel Lopez!
  • Rental Property Investor · Papillion, NE · Member since 2017 · 398 posts · 1k+ votes
    9y
    Stephen Anthony One major area that has helped deal flow is sending out direct mail letters to targeted individuals. I also cold call owners and continue to follow up regularly with real estate agents. Best of luck growing your business!
  • Owen DashnerPro Member
    Lender · Omaha, NE · Member since 2008 · 1k+ posts · 1k+ votes
    9y

    Nice work Collin!

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