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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  • Flipper/Rehabber · Johnson City, TN · Member since 2017 · 30 posts · 10 votes
    7y

    Excellent @James Murphey It's a great area to invest! We will be happy to help and look forward to connecting soon! 

  • Flipper/Rehabber · Cleveland, OH · Member since 2018 · 80 posts · 51 votes
    7y

    Very inspiring story.  Just goes to show that you really need to persevere to make it in this business.

  • Rental Property Investor · Farmington, UT · Member since 2018 · 171 posts · 148 votes
    7y

    Congrats!

  • Cherry Hill, NJ · Member since 2017 · 8 posts · 0 votes
    7y

    This is a Great Post ! I’m stuck in savings mode and just got my RE license a few months back trying sick away as much as I can so I can house hack a multi family.  Congrats again ! Very inspirational 

  • Investor · San Diego, CA · Member since 2018 · 55 posts · 25 votes
    7y
    @Skylar Dejesus Honestly, reading different paths to success from posts on BP are one of the more interesting and motivating things I find myself reading on here. The stories vary much more than I would have ever guessed, and the troubleshooting of beginners issues is always full of incite.
  • Real Estate Agent · Philadelphia, PA · Member since 2018 · 428 posts · 484 votes
    7y

    This honesty is a breath of fresh air. As a younger guy looking into getting into real estate (myself), its easy to get hyped by youtube videos about  being successful and getting the disillusion that the moment I begin I will be able to "retire in 3 years" as long as I follow these "5 simple Steps." As a result I see so many guys my age get into it without knowing the work, and the studying you have to put in to achieve the portfolio you've managed to acquire and ultimately end up quitting or worse- making uninformed decisions that break the bank. Thanks for showing the step by step progression and showing it DID NOT happen overnight. Appreciate you!

  • Jay LohnBusiness Member
    Real Estate Agent & Investor · Champlin, MN · Member since 2014 · 179 posts · 43 votes
    7y

    Great job, here is to even bigger things in the future.

    Lohn/Paulno Property Management, LLC53 Reviews
  • Residential Real Estate Broker · Napa, CA · Member since 2010 · 21 posts · 32 votes
    7y

    Nice work! Thanks for taking the time and walking us through the process you took to get to 51 units. 

  • Flipper/Rehabber · Honolulu, HI · Member since 2015 · 13 posts · 7 votes
    7y
    @Skylar Dejesus where do you find your deals.
  • Investor · Milwaukee, WI · Member since 2013 · 1k+ posts · 1k+ votes
    7y

    Great story and congrats on your success. I love the part where you were hating on your moms beau until you finally sat down and gave the guy a chance (and hilarious he turned out to be smarter and more interesting than you ever imagined). That just goes to show we can all get along if we try and sometimes all that takes is a fresh perspective. What an uninteresting world it would be if we were all exactly alike. 60/40 baby - I LMAO when I read that.

  • Rental Property Investor · norfolk va · Member since 2018 · 26 posts · 10 votes
    7y

    Wow congratulations, that’s awesome. Your story is motivating!! @Skylar Dejesus

  • Christi HawkinsPro Member
    Columbus, OH · Member since 2017 · 239 posts · 142 votes
    7y

    @Skylar Dejesus  Congratulations!!! Your story is very inspiring 

  • Investor · Baton Rouge, LA · Member since 2018 · 2 posts · 1 vote
    7y

    Congratulations and so inspiring! I too am looking to get into multi unit properties. I've found a 24 unit that makes total financial sense. However, Ill only have enough down payment for 12-16%. I'm okay with MPI and refinance after I take the extra cash flow to pay down some principal. My issue is finding a lender that not only does multi units over 4 units, but also for a somewhat new investor. I've had 2 single family rental properties before, but under my name and not my current business LLC. So I know some banks prefer 2-3 experience. Any advice is much appreciated!

  • Los Angeles, CA · Member since 2018 · 13 posts · 1 vote
    7y
    Originally posted by @Jermaine Beasley:
    @Skylar Dejesus Amazing congrats! I’m a newbie bought my first property at the end of 2017 and my second in the middle of 2018. This is a very inspirational story for someone like me just starting out and trying to expand. I hope to one day get to that point and beyond!

     Have you purchased in Los Angeles?

  • Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
    7y

    @Skylar Dejesus congrats! Persistence always wins. 

  • Rental Property Investor · Montreal, QC · Member since 2018 · 22 posts · 5 votes
    7y

    Wow that's a very inspiring story! Congratz man :) I still havn't made my first deal but stories like these really motivate me to keep looking! Keep it up and I hope you keep growing! 

  • Flipper/Rehabber · Member since 2018 · 6 posts · 0 votes
    7y

    FANTASTIC and inspiring story Skylar!!! Thank you for that!! Keep going! I like that “ shooting for the stars and landing on the moon”. Great quote!!

  • Los Angeles, CA · Member since 2017 · 21 posts · 7 votes
    7y

    @Samuel Dolcine No I have not but looking to very soon trying to get adjusted to the area. I am also trying to find some meetups to talk and network do you know of any?

  • Member since 2018 · 4 posts · 2 votes
    7y

    Great story, very inspirational! thank you for sharing!! 

  • Member since 2018 · 3 posts · 1 vote
    7y

    kudos

  • Kerry Noble JrPro Member
    Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
    7y

    man!!!!!!!! I needed to read that today!! all i can say is thank you.....and i appreciate you for that! @Skylar Dejesus

  • Los Angeles, CA · Member since 2018 · 13 posts · 1 vote
    7y
    Originally posted by @Jermaine Beasley:

    @Samuel Dolcine No I have not but looking to very soon trying to get adjusted to the area. I am also trying to find some meetups to talk and network do you know of any?

     I would recommend checking out the meet up app, I'm sure there are a ton of Real Estate groups on there. There is also an event in Culver City on the first friday of each month called business cards and beer, the guy who runs it, Ian Michael is in the real estate world. I'm actually planning to go next month. Where is your current property located? Here is the info https://www.meetup.com/losangelesblackprofessionals/events/dvktrmyxqbkb/

  • Realtor · Raleigh, NC · Member since 2018 · 36 posts · 7 votes
    7y

    Great Story Skylar, it's inspirational to know that a newbie can get on their feet so quickly and be doing big deals in just a few years! 

    Shiv

  • Rental Property Investor · Greater NYC Areas, NY · Member since 2014 · 50 posts · 11 votes
    7y

    Great story @Skylar Dejesus! I am sending you a connect on here! I am starting out in a similar situation and have a relative I am considering working with! Would love to learn more about your experiences!

  • Los Angeles, CA · Member since 2017 · 21 posts · 7 votes
    7y

    @Samuel Dolcine I will check that out. I currently own property out of state in Louisiana.

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