WOW!! What a long way in 3 years!!

WOW!! What a long way in 3 years!!

Johnson City, TN · Member since 2014 · 140 posts · 133 votes

Okay this may be a long post.. but it is amazing what persistence can accomplish... When I first got into real estate investing I'd say about 4 years ago is when I joined bigger pockets and I would continuously read the success stories and wonder how these things were accumulating for these other investors and how they were able to scale. I will give a brief run down of my story and why I am posting in the success stories although there is so much farther to go.

I graduated college got a 9-5 at Fedex and thought I was doing well at life like I had been taught. I was going to go get a masters degree when a guy at work gave me a book called 'Rich Dad Poor Dad'. He told me I should consider reading the book before going back to school. The book blew my mind! It single handily changed my life.  I had always wondered what separated the rich and poor and after reading this book I had an extreme epiphany. I immediately wanted to start investing in mulitfamily real estate. I figured if I continued to work my job I could save 20k year and buy one property a year then year 2 buy two properties and have my portfolio snowball that way.  After a 6-8 months of trying and failing, reading as many books as I could get my greasy hands on, and constantly networking and looking for properties I finally found a triplex I bought in August 2015. 

My mother was dating a guy who I ABSOLUTELY HATED!! After a while I finally became cordial with him although we never spoke. At this point I had became relatively knowledgeable about real estate after constantly reading (at least 20 pages a day.. still to this day) and taking action, failing, and repeating. She kept bugging me to show him what I was doing with real estate that he was interested in investing. For months she would ask me to show him some properties or deals. One day, after constant harassment from my mom I finally brought over a deal for him. He is from Lithuania and did not understand investing what so ever so I had to explain every detail of the deal to him. After I finished explaining the deal he asked me, "what if I don't want mortgage I just buy cash". I was like WOAH!? I'm thinking in my head YOU HAVE 130K cash!? I immediately reached back to my real estate reading and explained the power of leverage to him.

At this point it had been a few months since my first deal and I was just manifesting. Out in the field meeting people, analyzing deals, speaking to people about real estate and my goals. I had just gotten close with these sellers who I tried to buy a 4 unit off of previously when I first started and I ran back into them at an auction. They had told me they were selling a 12 unit for 500k. I had brought an investor to the property with no avail. Let's fast forward to two weeks later when I brought my moms boyfriend the duplex deal. After, explaining leverage to him I said I have a deal for you to check out. It was the 12 unit for 500k I had been trying so hard to get. 

I compared the numbers side by side with him. The 130k duplex paid in cash would only produce 18k/year max. 100k down on the 500k property would produce around 30k/year net. The only problem I didn't have enough money to go in half with him. I brought him a proposal that stated we would be partners in the deal and I would do everything he could imagine in regards to management in the property and all he had to do was put his money up and collect a check. I explained to him I only had 20k. He said he could cover the 80k. When we were preparing the LLC I asked about the ownership and said its "51(him)/49(me)" and he said in his Russian accent "60/40" I said okay in a heart beat. I would have done anything to get that property. We closed on the 12 unit in August of 2016.

After about 15 months I found another 9 unit in which the numbers made sense. We purchased the property for 330k with 66k down 20k from me 46k from him. This purchase was in November 2017. 

Recently, I really tried to level up and buy 71 units for 2.4 million. Two different properties from the same owner 41 unit and a 29 unit.  I had convinced my partner to "burn the ship" and put the last of his 500k down on this property because we had some outs and it was a cash cow. He would have had 100k cash after and owns his house in full so he felt okay with it. We actually ended up needing 668k for our downpayment after closing cost etc. I paid a business broker who only does deals over 1 million to work with us to find us creative financing. We we working with him for 4 months at which we had finally secured lending. I thought I had made it. Or so we thought. Before the lender moved forward he came to see the property and he just had a bad taste in his mouth. He uped our requirements and the deal would just not financially made sense on our end if something bad happened we'd be screwed. So we it was a let down but like a shoot for the stars land on the moon type situation. We ended up buying one of the properties under contract a 29 unit for 1,025,000.00 my FIRST MILLION DOLLAR DEAL WHOOOO!!!

We now have 51 units together and I still own my original triplex that I live in and rent the other 2 units out so I now have 54 units under management. It is amazing to see how far we and I have come since joining biggerpockets although I have been MIA for years on here. My goals now are to focus on continuing to grow as fast and large as possible through any means necessary. 

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Houston · Member since 2018 · 28 posts · 16 votes
7y

Wow, that's incredible.

So how is your relationship with your mothers boyfriend now? 

Also, can you explain what your partnership details looked like on the first deal? So you agreed to pay 20, him 80. How did you split profits? How was this made official? (I'm new to REI / even newer to partnerships).

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  • West Grove, PA · Member since 2018 · 3 posts · 6 votes
    7y

    Sounds great, really incredible. Just curious, what did you have to do to qualify for these huge loans? Were these private money loans, or through commercial lenders? I'm just curious how a Fedex employee qualifies for multiple high-dollar loans like this. Does your mother's boyfriend have a high income and low debt and, therefore, is also signing on these loans?

    Also, curious what your mother's Lithuanian boyfriend, who knew nothing about investing, did to acquire what seems to be several hundred thousand dollars in cash. Does he have a business or something that produces this kind of income to build up such a nest egg?

    I'm not trying to pry, I'm just curious what roads lead people to be in this position so that I can learn from them.

  • Oakland, CA · Member since 2018 · 5 posts · 1 vote
    7y

    That's a great story Skylar! 

    It's inspiring that your story takes off after your co-worker gave you the Rich Dad Poor Dad book to consider reading instead of going to grad school.

    Obviously, you didn't just acquire real estate investor knowledge, you put it to good use by becoming an active investor!

    Now just 3 short years later, you control 54 units and benefit from a fantastic asset class that can open many more doors for you in the future.

    Congratulations! 

    Incidentally, Wealthability.com is Tom Wheelwright's website and you may know or not know that he is Robert Kiyosaki's Tax Advisor!

    Check out his Youtube Channel and or his website, he shares valuable information and he happens to not only be a CPA (with a specialization in Tax Law), he's also a successful real estate investor.

  • Iowa City, IA · Member since 2017 · 42 posts · 29 votes
    7y

    Awesome job. Congrats

  • Lender · Newark, NJ · Member since 2016 · 695 posts · 252 votes
    7y

    Awesome story, glad you were open minded and brought your mother's boyfriend. Great outcome. Continue the success.

  • Chicago, IL · Member since 2018 · 2 posts · 0 votes
    7y

    That is an amazing story, and nice that you made a bond with your step father

  • Rental Property Investor · Oak Creek, WI · Member since 2017 · 26 posts · 7 votes
    7y

    Well done! I just left FedEx last week after 14 years. I have acquired 8 doors since March. I’m hoping to be around 50 by this time next year. 

  • Andrew SyriosPro Member
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    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    7y

    Congrats Skylar and keep up the great work!

  • Developer · Atlanta and Detroit · Member since 2018 · 601 posts · 821 votes
    7y

    @Skylar Dejesus

    Fortune favors the bold  - love your work

  • New York City, NY · Member since 2015 · 40 posts · 7 votes
    7y

    That is AWESOME!!!  Great work Skylar!!

  • Member since 2018 · 17 posts · 8 votes
    7y

    This is a great story of success! Hard work really paid off! 

  • Wholesaler · Dallas, TX · Member since 2014 · 78 posts · 32 votes
    7y

    Awesome! 

  • Member since 2018 · 2 posts · 1 vote
    7y

    Great story!  Keep it up!!

  • Investor · Charleston, SC · Member since 2018 · 21 posts · 4 votes
    7y

    (Applause) This is so motivating.  Thanks for this.  I've read Rich Dad Poor Dad in the past and even bought the rat race game and it made all sense.  My problem was that I didn't take action.  Taking action is the most important part in seeing things happen...  I'm ON IT!

    Thanks again for sharing

  • Rental Property Investor · West Palm Beach, FL · Member since 2017 · 23 posts · 3 votes
    7y

    Congratulations @Skylar Dejesus  very inspiring story!

  • Member since 2018 · 1 post · 0 votes
    7y

    can someone explain leverage? How is the net of 100k down on a 500k property 30k/yr and the net on 130k property in cash just 18k/yr?

  • Investor · Annapolis, MD · Member since 2018 · 1 post · 0 votes
    7y

    Very inspirational, keep up the great work. 

  • Member since 2018 · 1 post · 0 votes
    7y

    Congratulations on your moves, starting small and getting into big deals, perhaps the most difficult steps had been the very first ones, getting your first deals together, what would be your advice for the beginners in this business, 

  • Bronx, NY · Member since 2016 · 20 posts · 1 vote
    7y
    @Skylar Dejesus Inspired, great story. As we all know here on BP persistence and growth are key. Thanks again.
  • Bronx, NY · Member since 2016 · 20 posts · 1 vote
    7y
    @Skylar Dejesus Inspired, persistence and growth are key. Great story.
  • Los Angeles, CA · Member since 2017 · 39 posts · 25 votes
    7y

    Bravo @Skylar Dejesus. Keep it up. But you have to tell us how you feel now about mom's boyfriend. You set it up.  Pay it off. Were you wrong about initially hating him?

  • Chicago, IL · Member since 2018 · 6 posts · 5 votes
    7y

    My husband and I just purchased our 1st 4unit together. Needs alot of TLC but worth it. Looking for our next one. Way to go!!!

  • Flipper/Rehabber · Ogden, UT · Member since 2018 · 12 posts · 3 votes
    7y
    @Skylar Dejesus that's a great story Skylar. Its inspiration to us all.
  • Sachse, TX · Member since 2017 · 7 posts · 2 votes
    7y

    Awesome! Thanks for the inspiration

  • Realtor · Orlando, FL · Member since 2018 · 45 posts · 5 votes
    7y

    Wow!

    Great story. Congratulations on your success.

    Thanks for sharing and inspiring all of us. 

    Fernanda & Chris 

  • Aurora, IL · Member since 2018 · 10 posts · 29 votes
    7y

    @Skylar Dejesus GREAT JOB Man. Keep going. Best wishes.

    Before Bigger pockets, I did 5 single family deals. Two,  I financed completely and other 3,  50/50.

    Needless to say, after listening to Bigger pockets podcast and Beardy Brandon and tons of reading finally I decide Multi Family is what I want to do and recently purchased two 4 unit buildings. It has been fun. Now I am all geared up and hunting for my next 4 unit building. Anyone has any lead near Aurora, IL let me know.

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