From teacher to 10 units in 10 months!

From teacher to 10 units in 10 months!

Real Estate Broker · Los Angeles, CA · Member since 2018 · 193 posts · 346 votes

I’m so excited because I just closed on my 10th out of state unit today! I did my first deal ever exactly 10 months ago, thanks to the Bigger Pockets podcast, a lot of library books and a lot of good people. Before this I was an environmental education teacher for over a decade, and last year I got hooked when my friend had me listen to the podcast. So when yet another grant-funded position ended earlier this year, I chose to take a break from full time work and focus on RE instead...and it’s been so amazing!!

On my break I took classes in construction management and spent a lot of time going to meetups. Now I’m working as a project manager for a GC to get real world experience (building a ground up affordable housing development in LA), and I’m getting my real estate license. I also donate 1% of all gross revenue (not just profits) from real estate investments to affordable housing and community development, and am partnering with other investors to create a social equity financial model for our rental properties. More on that when I set up the blog. 

So my commitment to social justice hasn’t gone away, it’s just transformed into this new field (new to me) of real estate investing. I’m also really passionate about my non-profit colleagues finding their way to financial freedom as well. (If you can only read one book, read Your Money or Your Life). So far I’ve got 4 houses and 3 duplexes with none of my own cash invested except the first deal, and my goal is to be at 30 units with at least $60,000/year of net cash flow within the next 3 years.

My wife loves me AND is sick of me talking real estate all the time lol so if people ever want to catch up and talk RE I’m in! Some other folks in LA like @John Koster and @Shiva Bhaskar and I like to connect on out of state investing over beers every couple of months, and a new thing we’re talking about too is Opportunity Zones.

So anyway, I haven’t really shared too much of my story here and I just wanted to spread some inspiration for other go getters and life changers on the forums. 

As @Alexander Felice says, I think you’ve got to be a little obsessed. And take action! Thanks for all those who have supported me so far and to many more!

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Real Estate Agent · Washington, DC · Member since 2017 · 10 posts · 52 votes
7y

Amazing! You have accomplished so much in just 10mths. Congratulations!! Mind sharing how you funded and structured your first deal/rental purchase and how you were able to scale so quickly?

See this reply in the discussion

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  • Phoenix, AZ · Member since 2019 · 33 posts · 12 votes
    6y
    Originally posted by @Joseph Brown:

    @Sammy Lyon great job. You want to net 60000 per month net flow. I would think with 30 units the numbers would be better than that? No?

     That would be $2,000 per mo (cash flow) from each property. Seems highly unlikely. I think he was referring to 60k per year.

  • Phoenix, AZ · Member since 2019 · 33 posts · 12 votes
    6y
    Originally posted by @Charlene Fetzer:

    @Sammy Lyon Thanks for sharing your story! I am a new inspiring investor and I love to hear how people got started. 

    I am curious, what made you decide to invest out of state? I ask because I currently live in Atlanta (where I was raised), but my heart lies in Denver (where I lived for a year after college). I dream of a multi family property there and would like to house hack the property to start. Any advice for someone interested in looking out of state? I know there are resources and books to help with this topic as well, but always nice to hear from personal experience. 

    Thanks and best of luck! 

    I invest out of state and the best thing i can tell you would be to network and go meet people. I have a friend who was investing in the are i now buy, i took a trip with them to meet his contractor, wholesalers, people who share the same interest. Since then i have gone back and made the trip on my own and now leverage that same group of people for my investments.

    all about networking 

  • Real Estate Broker · Los Angeles, CA · Member since 2018 · 193 posts · 346 votes
    6y
    Originally posted by @Nate Fanara:
    Originally posted by @Charlene Fetzer:

    @Sammy Lyon Thanks for sharing your story! I am a new inspiring investor and I love to hear how people got started. 

    I am curious, what made you decide to invest out of state? I ask because I currently live in Atlanta (where I was raised), but my heart lies in Denver (where I lived for a year after college). I dream of a multi family property there and would like to house hack the property to start. Any advice for someone interested in looking out of state? I know there are resources and books to help with this topic as well, but always nice to hear from personal experience. 

    Thanks and best of luck! 

    I invest out of state and the best thing i can tell you would be to network and go meet people. I have a friend who was investing in the are i now buy, i took a trip with them to meet his contractor, wholesalers, people who share the same interest. Since then i have gone back and made the trip on my own and now leverage that same group of people for my investments.

    all about networking 

    Great advice. It’s honestly all about the people. You have to know what you’re doing but you definitely can’t do it without other people who know what they’re doing!!

  • Ocala, FL · Member since 2019 · 15 posts · 15 votes
    6y

    This is a great success story. Congratulations

  • Investor · Boise, ID · Member since 2016 · 42 posts · 19 votes
    6y

    Congrats!! Your passion for real estate is encouraging :)

  • Investor · Bonita Springs, FL · Member since 2015 · 54 posts · 12 votes
    6y

    Great job @Sammy Lyon! I also currently invest in the Cleveland market from out of state. You are right, it is all about the team! I would love to chat sometime! Let me know.

  • Member since 2019 · 1 post · 1 vote
    6y

    What an amazing story! Congrats to you. I am hoping to create a story similar to yours some day. I noticed you mentioned that this was an out of state unit, are all of your units out of state? Maybe we can catch up some time as I'm from the LA area as well!

  • Maritza SotoPro Member
    Real Estate Agent · New Rochelle, NY · Member since 2017 · 21 posts · 10 votes
    6y

    Amazing! This is very inspiring. I'd love to hear more about your story on the podcast!

  • Accountant · CO · Member since 2018 · 195 posts · 23 votes
    6y
    Originally posted by @Sammy Lyon:

    I’m so excited because I just closed on my 10th out of state unit today! I did my first deal ever exactly 10 months ago, thanks to the Bigger Pockets podcast, a lot of library books and a lot of good people. Before this I was an environmental education teacher for over a decade, and last year I got hooked when my friend had me listen to the podcast. So when yet another grant-funded position ended earlier this year, I chose to take a break from full time work and focus on RE instead...and it’s been so amazing!!

    On my break I took classes in construction management and spent a lot of time going to meetups. Now I’m working as a project manager for a GC to get real world experience (building a ground up affordable housing development in LA), and I’m getting my real estate license. I also donate 1% of all gross revenue (not just profits) from real estate investments to affordable housing and community development, and am partnering with other investors to create a social equity financial model for our rental properties. More on that when I set up the blog. 

    So my commitment to social justice hasn’t gone away, it’s just transformed into this new field (new to me) of real estate investing. I’m also really passionate about my non-profit colleagues finding their way to financial freedom as well. (If you can only read one book, read Your Money or Your Life). So far I’ve got 4 houses and 3 duplexes with none of my own cash invested except the first deal, and my goal is to be at 30 units with at least $60,000/year of net cash flow within the next 3 years.

    My wife loves me AND is sick of me talking real estate all the time lol so if people ever want to catch up and talk RE I’m in! Some other folks in LA like @John Koster and @Shiva Bhaskar and I like to connect on out of state investing over beers every couple of months, and a new thing we’re talking about too is Opportunity Zones.

    So anyway, I haven’t really shared too much of my story here and I just wanted to spread some inspiration for other go getters and life changers on the forums. 

    As @Alexander Felice says, I think you’ve got to be a little obsessed. And take action! Thanks for all those who have supported me so far and to many more!

    Congrats Sammy! Your story is inspiring! May i ask you how did you invest your most properties without your own money? Thanks a lot

  • Real Estate Broker · Los Angeles, CA · Member since 2018 · 193 posts · 346 votes
    6y
    Originally posted by @Benjamin Kelly:

    Great job @Sammy Lyon! I also currently invest in the Cleveland market from out of state. You are right, it is all about the team! I would love to chat sometime! Let me know.

     Hey Benjamin, cool! I'd love to. How often do you head out there?

  • Real Estate Broker · Los Angeles, CA · Member since 2018 · 193 posts · 346 votes
    6y
    Originally posted by @Ashley Zhang:
    Originally posted by @Sammy Lyon:

    I’m so excited because I just closed on my 10th out of state unit today! I did my first deal ever exactly 10 months ago, thanks to the Bigger Pockets podcast, a lot of library books and a lot of good people. Before this I was an environmental education teacher for over a decade, and last year I got hooked when my friend had me listen to the podcast. So when yet another grant-funded position ended earlier this year, I chose to take a break from full time work and focus on RE instead...and it’s been so amazing!!

    On my break I took classes in construction management and spent a lot of time going to meetups. Now I’m working as a project manager for a GC to get real world experience (building a ground up affordable housing development in LA), and I’m getting my real estate license. I also donate 1% of all gross revenue (not just profits) from real estate investments to affordable housing and community development, and am partnering with other investors to create a social equity financial model for our rental properties. More on that when I set up the blog. 

    So my commitment to social justice hasn’t gone away, it’s just transformed into this new field (new to me) of real estate investing. I’m also really passionate about my non-profit colleagues finding their way to financial freedom as well. (If you can only read one book, read Your Money or Your Life). So far I’ve got 4 houses and 3 duplexes with none of my own cash invested except the first deal, and my goal is to be at 30 units with at least $60,000/year of net cash flow within the next 3 years.

    My wife loves me AND is sick of me talking real estate all the time lol so if people ever want to catch up and talk RE I’m in! Some other folks in LA like @John Koster and @Shiva Bhaskar and I like to connect on out of state investing over beers every couple of months, and a new thing we’re talking about too is Opportunity Zones.

    So anyway, I haven’t really shared too much of my story here and I just wanted to spread some inspiration for other go getters and life changers on the forums. 

    As @Alexander Felice says, I think you’ve got to be a little obsessed. And take action! Thanks for all those who have supported me so far and to many more!

    Congrats Sammy! Your story is inspiring! May i ask you how did you invest your most properties without your own money? Thanks a lot

    Hi Ashley! It's been through JV partnerships, private lenders and hard money lenders. @Brandon Turner explains it all better than I could in his No and Low Money Down book. I haven't done seller financing yet though ;)

    Again just because I have "none" of my own money in doesn't mean I don't sometimes front money for repairs before a refinance, or *have* money in reserves for emergencies.

  • Real Estate Broker · Los Angeles, CA · Member since 2018 · 193 posts · 346 votes
    6y
    Originally posted by @Maritza Soto:

    Amazing! This is very inspiring. I'd love to hear more about your story on the podcast!

     Hehe thanks, maybe one day :)

  • Real Estate Broker · Los Angeles, CA · Member since 2018 · 193 posts · 346 votes
    6y
    Originally posted by @Oscar Hernandez:

    What an amazing story! Congrats to you. I am hoping to create a story similar to yours some day. I noticed you mentioned that this was an out of state unit, are all of your units out of state? Maybe we can catch up some time as I'm from the LA area as well!

    Hi Oscar! Yes, all of them in Cleveland. Exploring some opportunities in Texas and LA for the future, but now the Midwest is great cash flow. Would love to catch up! @John Koster and @Shiva Bhaskar and I love getting together for beers and real estate, so there will be another get together in the new year I'm sure :)

  • Member since 2019 · 5 posts · 0 votes
    6y

    Congrats - very inspiring story!

  • Property Manager · Juneau, AK · Member since 2017 · 25 posts · 12 votes
    6y

    @Sammy Lyon Congratulation! Sounds like you are off to a great start. Keep up the good work. I look forward to following your progress. 

  • Real Estate Broker · Los Angeles, CA · Member since 2018 · 193 posts · 346 votes
    6y
    Originally posted by @Ashley Clements:

    @Sammy Lyon Congratulation! Sounds like you are off to a great start. Keep up the good work. I look forward to following your progress. 

    Thanks Ashley!! 

  • Philadelphia, PA · Member since 2012 · 104 posts · 8 votes
    6y

    Congratulations!  I am inspired by your commitment to the very needed entity of affordable housing.  I wish developers had more of an incentive to provide housing for the vast majority of people, not the wealthy.

  • Member since 2019 · 5 posts · 0 votes
    6y

    That's huge! Congrats!

  • Riverside, CA · Member since 2015 · 13 posts · 4 votes
    5y
    @sammy lyon - Congratulations for your success!
    What state/city have you been investing? are all these 10 units from same state/city? How did you go about acquisitions - personally visit or just buy via agent? 

    Originally posted by @Sammy Lyon:
    Originally posted by @Renat S.:

    @Sammy Lyon

    You are super enthusiastic, lets see the numbers. 10 units in 10 months and you only put down for first property? That sounds too good. Let’s see the numbers and details.

    Hi Renat, challenge accepted ;)

    Deal #1: SFR. 20% down traditional financing. Invested $14,000.

    Deal #2: SFR. JV partnership. Partner brought purchase price and renovation costs as capital contribution. My job is to do everything else, we split ownership & all operating expenses and income 50/50. Partner’s capital contribution is prioritized at sale or refinance. On operating expenses since closing I have spent $2,300 (my half of a rent ready, since we had a tenant turnover).

    Deal #3: SFR. Hard money lender for purchase. Minimal repairs ~$1,000 at closing.

    Deal #4: SFR. Private lender for purchase. Loan was for higher than the purchase price and is not secured only to this property, so I have been able to use some of the funds to make the repairs on deals #3 and #5.

    Deal #5: Duplex. Hard money lender for purchase. Have an unexpected rent ready due to a tenant turnover after closing, so using private money for renovations and some of my reserve fund. Will refinance at higher ARV so expecting to get it back but I may end up investing ~$5,000 on the rent ready for about 30 days until the refinance closes.

    Deal #6: Duplex. JV partnership. We reinvested the funds from our BRRR cash out refinance (Deal #2). This will be another BRRR.

    Deal #7: Duplex. Private lender for purchase and renovations. May end up using $3,000 of my own money for going a little on the higher end of my renovation budget due to an unforeseen issue, so I’ll be going over the borrowed amount. I expect to get this back soon in the refinance since I’m doing a big reno on this one. 

    So my own money has come into play twice, both times when I closed on a property and the existing tenant moved out soon after closing. Using “none” of my own money for purchases and for most of the renovations is how I have kept healthy reserves for each property, which can tide me over on a tenant turnover to make repairs until I refinance. All in all it would add up to ~$9,000 of repairs for the 9 units after the first deal, and total $23,000 for all 10 units. Except for the $14,000 from the first deal, I expect to get back most or all of the repair costs since they are BRRRs. Stay tuned for the refinances though.

    I consider those "unexpected" expenses part of the normal operating expenses of a property, that are to be expected, rather than initial capital contributions for purchase and renovations. The rent readies did end up helping get me the higher appraised value too, making it easier to recoup the funds quickly through the refinance. I had budgeted for the repairs in my Capex and maintenance reserves—I just wasn't expecting to use them so soon! I don't advocate for people to buy property with no money in their reserves account, personally.

    It definitely makes me want to buy more vacant properties so I can just do the repairs right when we close rather than wait around to figure out the tenant is leaving! But I guess it’s part of the stabilization process when buying a property with inherited tenants… That is one thing I am having to get used to—the slower-than-I’d-like post-closing process to get the property up and running smoothly. I have found I enjoy the deal hunt more than the asset management.. and I am definitely learning as I go!!

  • Real Estate Broker · Los Angeles, CA · Member since 2018 · 193 posts · 346 votes
    5y

    Hi @Kareena Sharma! Thanks :) Shortly after this post I proceeded to have tons of problems with my property manager and construction. Luckily it's resolved now but sheesh, put me through the wringer!

    I live in SoCal, these investments are all out of state in the same city. I have since started investing locally as well, and got my license here in CA to work with investors and house hackers. 

    I personally visited in order to learn the market, and meet the folks who would be part of my team. I have not personally visited all the properties, but the realtor, PM, inspector, contractor have before I buy. 

    Have you been thinking of investing out of state?

  • Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    5y

    @Sammy Lyon congratulations on your success! 

  • Member since 2021 · 6 posts · 1 vote
    4y

    Could you recommend some key books and resources for beginners? I have about 20 in my audible account and have no idea where to start! 

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