RE investors with humble origins?
Rental Property Investor · West Fargo, ND · Member since 2015 · 95 posts · 51 votes
Calling all underdog RE investors.
If you got into real estate because you were an engineer, lawyer, doctor, or otherwise have large amounts of discretionary income, that's cool, but I want to hear from the unlikely heroes out there: the dark horses, the longshots, the defiant ones who found success despite everyone's expectations to the contrary.
Are you an average person whose desire for more in life has helped you to overcome huge obstacles?
Did you drop out of school but never stopped learning?
Did you decide that a dead end job wasn't good enough anymore?
Has your path to real estate success been anything but "conventional"?
I want to hear from those who struggled, failed, tried again, pulled themselves forward, and made it through to the other side. Please share your story, lend us inspiration as we dig deep to get that first big break, that first great investment, that next one or even that last one.
Calling all underdog RE investors.
Are you an average person whose desire for more in life has helped you to overcome huge obstacles?
Did you decide that a dead end job wasn't good enough anymore?
Has your path to real estate success been anything but "conventional"?
I love a good Rudy underdog story, so thank you for asking this.
Not to get too sappy and whoa is me, but I grew up in a poor dried up logging community in MT in the 80s. Median household income there today as per a recent national podcast of Small Town Murder is $19k. Less than half the national average.
Anyway, it was the same when I was there. I got by doing ranch and chicken farm work. Both with teach you where you don't want to be, especially during calf and harvest time. Or the winter. Or the spring. Or changing sprinklers all summer. LOL
Rough time in rough town equalled getting into trouble. No branch of service would take me other than the Marines. 4 years of that let me see the world and earn 4 rows of ribbons, but no marketable skills.
But there I learned to drink. Alcoholism grabbed hold and I was chronic late stage by 37.
The ranching and USMC taught me a good work ethic and that I wanted more. Broke but not poor. Poor to me is more of a forever mindset.
When I decided I wanted more, I cut my living expenses to nothing by moving into a trailer park for 5 years. Housing expenses were less than $300 a month. Saved and invested and pulled ourselves up the ladder. Bought a 'luxury' househack after building up to 35 units. Quit the drink as buddies died of it.
Now if I see a ranch, I wonder if I should buy it vs ask the guy if I can buck his bales for a nickel a pop.
Calling all underdog RE investors.
If you got into real estate because you were an engineer, lawyer, doctor, or otherwise have large amounts of discretionary income, that's cool, but I want to hear from the unlikely heroes out there: the dark horses, the longshots, the defiant ones who found success despite everyone's expectations to the contrary.
Are you an average person whose desire for more in life has helped you to overcome huge obstacles?
Did you drop out of school but never stopped learning?
Did you decide that a dead end job wasn't good enough anymore?
Has your path to real estate success been anything but "conventional"?
I want to hear from those who struggled, failed, tried again, pulled themselves forward, and made it through to the other side. Please share your story, lend us inspiration as we dig deep to get that first big break, that first great investment, that next one or even that last one.
Not my story, but my partner's late grand aunt. Came to the country with very little education and worked cleaning homes. She was able to save her $ over the years and purchased a small 2 flat in the Bronx. As with many immigrants her first tenants in the 2 flat was family. She then purchased the house across the street from the 2 flat and rented it to more family. When she passed she had a nice small portfolio of 10 properties spread throughout the Bronx. I don't think she ever made more than $25K per year from her cleaning job, but the homes she acquired paved the way for her retirment.
Weird things happen in life. I am not-so-slowly moving to where I want to be, from a place I never want to see again. The journey has been highly improbable. Sorry I'm not sharing, but I really wouldn't know where to start, and if I did get started, I wouldn't know where to shut up. Thanks for your stories.
@Darius Ogloza
I love this! Starting with kids and no savings and no job is hard enough, but add onto that the fact that your parents emigrated from another country to the US, and that adds another level of accomplishment!! I am sure your parents could have written entire books about their experience and what they had to sacrifice to accomplish their dreams. Not to mention the adjustments his children had to make. I'm sure it was well worth any "short term" struggles to build a life worth living!
Thanks so much for sharing! Do you invest in the California market now?
@Gail W.
Great stories, thanks for sharing!!
There is so much value in telling long and detailed stories. You have done so many different types of investing over the years and sounds like you were even totally out of investing for a while then later got back in! It just shows that there isn't necessarily a one-size-fits-all approach to investing. It can be fluid and can change as your life changes. This is an excellent tale of adaptability, perseverance, creativity. Please feel free to elaborate on how you cultivated the mindset to get started on real estate and how your mind set changed with every success and failure to eventually lead you to where you are today!
@CJ M.
This is awesome!! I know I'm not supposed to say "awesome, you lost your job", but looking back, are you not glad you did?! 25 doors in 2 years is incredible!
Would you be willing to detail out your thought process when you lost your job and the steps that led to you making the choices you did? In case anyone reading this and is in the situation you were, losing a job and having just relocated, or just wanting to leave a 9-5 situation, I think it would be super beneficial to hear what kind of real estate experience or knowledge you had up until the point of losing your job and what type of savings you had and what type of job you had period all that information really sets the stage and helps someone who might think they have no business getting into real estate. I would like to show them that EVERYONE has business getting into real estate!
Erik: Thank you for the kind words. Yeah, this was back in the days when they sold leaded gasoline so we inhaled a lot of toxic fumes from the Sunoco next door I am sure but never for a minute did I think (or now do I think) the trade off was not worth it. I think too many of us lose sight at what an amazing place America was, and still is, for those willing to step out of their comfort zone and work to make things happen despite obstacles. We are now invested in Northern California, and also in Las Vegas, Florida and western/central New York. Real estate gets in your blood in a way few if any other investments can.
@Logan Vierstra
Keep it going!!
I hear this and I think exponential growth!! If you can continue to improve every year, even incremental improvements, then in a very short time you will have a very successful real estate business. The hardest and toughest sledding seems to be at the very beginning when you have the least amount of knowledge and money. For me it was that first fix and flip that was a success. That changed my entire mindset because I got to see firsthand that it was not only possible, but that it was actually easier than I ever thought. Armed with that information and confidence, a person really feels like a world of opportunity opens up that was just not able to be seen before.
What made you want to get into real estate investing and what would you say the hardest single thing has been for you so far?
@Darius Ogloza
Exactly. That's probably there biggest piece of advice you can give someone: step out of your comfort zone and work hard. Those two things generally have a tendency to separate a person from most other people. I would think it's easier to do when one is young and has less to lose but taking risks is a necessary part of any investing. I personally think that half the time when people say they can't afford to get into real estate investing, I tell them that they can't afford NOT to do it!
@Jim K.
Thanks for the feedback!
I think it helps people just knowing that there is a path from where they are now to where they want to be. It's up to each of us to forge that path but just knowing that it's possible and others have paved the way for us to emulate makes such a huge difference. It makes it more attainable to the average person.
Thanks for asking this. It is great to see success stories from those that did not have an easy path.
I personally left Spain with $1000 in my pocket, trying to find an opportunity to get ahead. I ended up going to a country named Malta in the mediterranean see and worked as a pizza delivery man. Lived in France for a year, after Malta, I was a teacher assistant. I then arrived to the US as an au pair in 2014, got a teaching job that would sponsor me right after became a teacher with an H1B visa and here I am to this day. I learned 5 languages during these experiences it was great.
In this 6 years, I completed a move in ready house hack and a live-in flip that I am also house hacking now. Looking at my third purchase right now.
Truly inspiring to read all the stories!
I'm not far into it, but I came from a poor family. Parents were divorced, Mom was a teacher making 22k/year, raising 2 kids as the primary parent. Dad was starting his own business, which only took off and boomed after I got out of college (funny how that works right?). Prior to that time, he didn't make too much either.
I couldn't do the things other kids did, play the sports other kids did, go on vacation, etc. because we didn't have the money. But I had a very math and finance oriented mind from a young age. One day it hit me, I think I was in middle school, when I realized "Every dollar I save makes me a dollar more rich for the rest of my life." Of course that's evolved into every dollar invested.
At this point, I'm 27 years old, coming up on cracking the $1M net worth mark made up of cash, 3 houses (primary + 2 investments), growing stock and retirement accounts, and more. I'm not nearly as big as many of the other people here, but maybe that makes me a bit more relatable here.
I just started my RE journey in December 2019, and my goal is that by the end of 2021, I'll have cracked that $1M threshold.
@Jim K.
Thanks for the feedback!
I think it helps people just knowing that there is a path from where they are now to where they want to be. It's up to each of us to forge that path but just knowing that it's possible and others have paved the way for us to emulate makes such a huge difference. It makes it more attainable to the average person.
Aut viam inveniam aut faciam.
I will either find a way or make one.
Hannibal, General of Carthage
@CJ M.
This is awesome!! I know I'm not supposed to say "awesome, you lost your job", but looking back, are you not glad you did?! 25 doors in 2 years is incredible!
Would you be willing to detail out your thought process when you lost your job and the steps that led to you making the choices you did? In case anyone reading this and is in the situation you were, losing a job and having just relocated, or just wanting to leave a 9-5 situation, I think it would be super beneficial to hear what kind of real estate experience or knowledge you had up until the point of losing your job and what type of savings you had and what type of job you had period all that information really sets the stage and helps someone who might think they have no business getting into real estate. I would like to show them that EVERYONE has business getting into real estate!
I can try my best, but it will be hard to keep my story short...hopefully it helps someone out there though
I always had a job and worked hard since a kid. So after graduating college I spent 15 years climbing the corporate ladder up to an Executive position. At one point, I even gave everything up and moved back to my hometown where I had to start all over again at an entry-level position (I eventually worked my way back up to VP positions). I knew nothing about REI during those 15 years and I thought that to be successful, I needed to work hard for someone else! Then 2017/2018 came and changed my life…
Fall/Winter of 2017, I was getting ready to list a small home for sale that I owned/lived in after college (my brother was previously living there and paying my mortgage). I was also looking for another book to read (I had already read everything under the sun about leadership, but nothing about entrepreneurship or REI). I decided to give "Rich Dad Poor Dad" a try. Boy did that book change me! Honestly, I was angry at myself that at 39 years old I had never thought about money and "the rat race." This is also around the time when I purchased a condo and relocated for my job. Ironically, I purchased it from a successful REI. We ended up becoming friends through the purchase…I was intrigued by what a nice person they were, and how they lived and the nice things they owned. I would hear this person talk about BIG goals, and money, hard money, points, private money, lenders, investments, etc. It was all so Greek to me back then and the conversations made me feel very uncomfortable…but strangely in a good way! So, I started listening to "The Millionaire Real Estate Investor" by Gary Keller to try and understand the industry more. That book at made me decide to keep my old house and rent it!
Then came January 2018… I was sitting in my office and my owner and his son walked in very quickly and shut the door. 60 seconds later, I was laid off and packing up my things.
The first thoughts that went through my head were:
I went home and called my best friend who was an hour away. He was completely shocked too. I’ll never forget, he drove through a blizzard that evening to hang out with me because he was worried. He knew how hard I had worked to get where I was (if that doesn’t show an example of a true friend, I don’t know what does). I also remember the look on his face when he arrived and saw a brand-new bottle of MacCallan 18 and a couple of cigars on my counter! I said, “this f****** sucks, but you know what, I get to choose how I react. And I choose to celebrate the fact that I’ll be starting the next phase of my life.” We had a blast that evening!
Over the next couple weeks, a business colleague offered me a 1099 position for the next 3-6 months but couldn’t promise anything permanent. That’s when I started looking on Zillow, and Redfin, and other sites just to start familiarizing myself with my “new market.” Well, I quickly saw a listing for a ‘Zombie House’ in a great school district. I figured it couldn’t hurt to just talk to the realtor. I asked him, if the house was really going to sell for $21,000? He said “not a chance. Best offers are due by end of day!” I thought, what the heck, might as well try, so I offered about $26,000 without even seeing it in person (I figured I’d never hear anything back anyway). The next day, I’m sitting at work, and I get a short text simply saying, “congrats you got the property.” I thought “ohhhhh shi*, what did I just do?!”
I knew nothing about running numbers, or BRRRR'ing, or anything. I just knew it was a good deal, it needed rehabbed, and I had to move forward. With the support of my friends and other REI's who gave me some very valuable advice that I'm so grateful for, I got it done. That property took all of my cash savings and reserves (when I only had a temporary job at that time), and some credit card spending to make it work. When it was done, it appraised for $100,000 exactly, and I ended up getting more than my initial investment back.
Immediately after that, my friend (the REI) offered to sell me a duplex for cash. I thought “Geez, I just got through that BRRRR and can finally sleep again because I have my money back lol." Anyway, I still took on the risk and bought it because I knew getting laid off could happen...again. I refinanced the property and had some cash again! A couple months after that, I was watching a Browns game and saw another property on Zillow. By the end of the game, I had negotiated a deal via text message with the only contingency being a walk-thru the following day. I BRRRR'd that one with cash and a temporary loan from my Roth IRA (I learned that on the BP forums). After that, another property was offered to me for cash. I took the deal, and the story basically repeats through now!...and get this, I'm still at the same job, but now as a W2 employee.
While I consider my success very very modest compared to others on here, I do contribute it to:
I’ll end with a quote from Richard Branson, “If somebody offers you an amazing opportunity but you are not sure you can do it, say yes – then learn how to do it later!” I feel like I did that with many opportunities that others might have passed on.
P.S. Thanks for the question…I enjoyed recalling these memories...and actually writing them down for the first time! Best of luck with your journey
@Joaquin Camarasa
Thanks so much for sharing! What a journey so far! Congrats on your first couple deals! The first couple are challenging but you learn so much. How did you discover real estate investing and what did you look for in your first deal? Would love to hear more about it!
@Tucker Cummings
Hey Tucker, thanks for your story! My 2 siblings and I were raised by divorced parents as well. Not that I have anything to compare it to, but in my case, I think of it like having 2 great parents who happen to live 3 hours apart.
There's a lot of psychology to unpack in these stories, which is very interesting to me! The journey one takes to gain success and forge a lifestyle with intention is especially powerful when it comes from within. That's probably why stories like yours and all the others here are so great; it shows that the power to change one's life is in reach for everyone. Ok I'm getting on a tangent. Thanks again and please feel free to share any other major obstacles you've overcome!
As far as mind set to buy real estate I was only 18. I had no idea how much I didn't know about everything. However the first two houses I bought I didn't put a dime down and my payment was cheaper than rent.
I don't regret when things got tough in construction that I went to work in the factory, I got lucky because of my construction experience got me a place right away in building maintenance which is where I learned HVAC. After 16 years though I was running an HVAC company on the side after losing the farm in the divorce and I was ready to go out on my own when the factory offered me a different job in Electrical maintenance and I shut down my business and took the job, and stayed for another 16. That was the biggest mistake of my financial life!
@CJ M.
Wow!! Thanks so much, awesome story! When you got that house for 26k, "$h** what did I just do!??" That is hilarious and had me cracking up! That's too real!!!
Rich Dad, Poor Dad really does a number on us investors, doesn't it? All that security we feel working for generous employers is great until it's gone unexpectedly. If security and predictability are the main reasons for working for someone else, and that security can often times be an illusion, then I see self employment and real estate investing as not only better options, but essential!
Your story is also a great example that it's ok to start later than you might like. It's ok to have to completely start over. I have to believe with enough persistence, over prevails. Each set back and failure will be a fun post some day on a bigger pockets thread about underdog stories!
Love the pointers at the end, calling out all the help you have received and the bigger pockets episode specifically.
I am actually going to go back and re-read your whole post, thanks again, I very much enjoyed the authenticity and willingness to share!
Thanks for posting this Erik, I think this will give a great opportunity for lots of people to tell their story and get inspired.
I wanted to invest in real estate because I wanted to retire my mom. At the time she got Bi-lateral knee replacements and was forced to go to work because she couldn’t afford to stay home. That made me mad to say the least. Here is the woman that sacrificed when my parents got divorced, got a good paying job to support me when I was in middle school and wasn’t all that easy to handle to say the least.
So after a year of researching, I house hacked my first 4-plex. Since then I have renovated the units. I have kicked out drug addicts, hoarders, drug dealers and have fought mice with my bear hands. I have put blood sweat and tears into it because my goal was to cash flow $2,500 a month to give to my mom and retire her.
So, it has been 1 year since I bought that property. Since then I have partnered on a flip and have a handful of more partners to do more with. I’m still working on retiring her, I found out that real estate isn’t a get rich quick thing lol. But it does repay what you put in and much more after that.
Good luck to all you investors out there. Feel free to message me if you need contacts in the AZ market. I know a lot of professionals in the area. Also I am open to talk about partnering. Have a good day!
Yes sounds right still looking for my first deal
life is interesting, When doctors tell you you cant climb a ladder, carry sheet rock. or work construction.
GET OUT OF MY WAY !!!!
And you want me to pay you for this information!!!!
My best friend was one of my neck surgeons!!!!
He asked me, after looking at my spine ex ray!!
" How did you walk into my office" ?
I pointed at my heart and my head!
@Erik Stewart loving these stories! This is turning into an awesome thread!
My first memory of knowing I never wanted a job and wanted to make my own rules was when we weren't allowed to have candy on the bus anymore:
We were poor, our grocery store trip was shopping at the GFS (Gordon Food Service) in south side of Indy on Sunday afternoons. I had to have been in 2nd grade, and I loved starbursts. I would ask for them in line, always. This particular trip my mental math must have kicked in (common sense, etc) because it occurred to me, you could buy one pack of starbursts at the front check out line for $1.00 or a pack or whatever it was, or a 50 count case for $20 in the back of the store. So I remember asking my dad for a $20 and he said, "Why so you can buy 20 starbursts?" I replied back with, "if I borrow $20 and pay back $25 come Tuesday, is that ok?"
Monday morning busride, I am the dealer of the finest starbursts on the bus route, all colors and flavors. I sell 48 packs of starbursts for $1 apiece, paid my dad his 25 that afternoon, and pocketed 23 bucks, and had 2 "free" packs of starbursts.
@Erik Stewart
Well, not sure I yet qualify for the “I’ve made it” club but I grew up in a small town in Georgia. My parents grew up so poor they didn’t know when they would eat again. So, they slaved away at factories to keep food on the table and a decent life for me and my brother.
Growing up, my brother and I would always go door to door trying to find work to get extra money. I thought money ran the world and I wanted to run the money. I thought money was the key to the world. My brother was caught up in a lot of trouble and never graduated high school. I decided to go to college and become an actuary, because they made the most money in the accounting world.
I got caught up with bad people and was solicited by gangs (my friends) to run drugs for them. I had an awakening when this happened. Decided to get out of my life and hit a hard reset button. So I joined the navy and went into special operations. Met some people with INSANE drive and passion. This really helped shape who I am today. With that same, always pushing forward mindset, I apply it to everything.
I decided I wanted to grow a real estate empire. I’m still in the beginning stages, with only one investment property, but within 5 years, I have plans to purchase another 4 doors. I know these aren’t huge plans, but hey, Im still working a more than full time job!
@Erik Stewart I am not sure it is fair to discount someone who chose to become an engineer, lawyer or doctor as though those paths don't involve overcoming obstacles or sacrifice. I know people who were broke *** poor and worked their way through school without any help from anyone. I would consider plenty of them a dark horse who pulled themselves up despite the odds. That is not my story, but I am challenging your perception of what a "humble origins" is. I would argue a humble origin is more about where you come from and what you did with the opportunity that was given to you.
@Erik Stewart I got started in 2002 house hacking and live-in flipping (in CO) while working for Wyoming Public Health. Basically, I was tired of living with roommates and my boyfriend and I went to buy a home together. He convinced me to buy a home that needed a rehab saying he could do the work himself. Since I was the one with a stable job, we closed under my name. So I borrowed $7K from my grandfather (and paid him back after closing because I could get 103% financing).
One month after closing, we broke up and I had a home in need of some massive repairs, no repair budget (nor savings to speak of) and a big mortgage. So I immediately got roommates who didn't mind living in a construction zone, and the Home Depot 1-2-3 repair book and started rehabbing (YouTube wasn't around then). I also begged and bartered for help.
- A good friend of mine refinished the hardwood floors for $80 of sushi
- Another friend helped me cut tile (we wouldn't lay it, but he would cut it... yes!)
- Another friend painted in exchange for rent (and because I think he really liked the smell of paint)
I did end up hiring up the drywalling and plumbing because I screwed it up the first time.
After 11 months, I finally was done and could sell the place. Once I closed and crunched the numbers, I realized I hadn't been paying for mortgage (rather pocketing $ every month), and walked a hefty profit check. That's when I was hooked on real estate and thought to myself just how many more of these projects could I do!
@Caleb Johnson
Thanks for your post! This one it's home for me as well. My dad is a huge motivator for me to find financial success. He did his best raising us kids and now I'm doing my best to be in a position where I can help him financially or spend time with him as needed. My dad is 56 and works in a wood shop making custom HVAC grills for homes. And even though he's only got his GED, he's still had custody of three crazy kids starting at 5 years old and younger and raised us to be good people and always encouraged us to go to college. Now my sister has a great job in sales, my brother is an electrical engineer, and I am a full-time real estate investor. I like to think that he was indirectly responsible our careers but directly responsible for our success due to his sacrifices and parenting style.
I also started off with the house hack just like you. Actually did two back-to-back for a total of about 7 years. It's a great way to start and I recommend it to basically everybody that will listen.
Good luck on all your future deals and if I'm ever seriously looking at investing in Mesa or even if I'm just there on vacation to get away from the Fargo winters, I'll shoot you a message for sure!
Thanks again!