The Jump from 1 to 2

So I closed on my first two family In November of 2018. This was a big step for me because it was my first real leap towards my goal of 10 units in the next 5 years. I have read a lot of articles about the struggles of getting your second unit after spending most of your capital on your first deal. This is where I am at now. Thanks to Brandon Turner and everyone else like Jocko, and Robert Kiyosaki I never tell my self "I can't afford this." Instead I ask my self "how can I afford this?" This paradigm shift goes a long way because it forces your brain to think about how you can reach this goal. When you tell your self "I can't afford it" then your mind is off the hook and it doesn't have to figure out a way because you have already decided that you can't do something. I hope this makes sense to you because this mindset helped me get from 0 units to 1. That is just the beginning though.

The jump from 0 to 1 property was not as scary as I thought. It might have to do with the fact that I had two years to prep for it. 6 months later after my purchase, I now want to figure out how to purchase my next property. Then along comes David Greene’s book on the BRRRR strategy. It’s not like I haven’t heard of this strategy before. It was just good timing in the sense that I am currently annoyed at the fact that if I wanted to purchase another property the way I did the first one, I would have to wait about 1-2 years in order to save up enough for a property. The BRRRR strategy has never made more sense to me.

During the book, he describes two different stories about how two different people built their portfolio and basically one guy does the traditional way of saving for a down payment and the other person does a BRRRR and in the long run, the person who commits to The BRRRR is better positioned 15 years down the line compared to the guy that went traditional.

This changed my whole mindset. I’m not sure if it’s because after my first deal I feel more comfortable or because I am surrounded by more people who are invested in real estate but the BRRRR strategy not only sounds like a better move but it also seems to be more sustainable.

My mind set is just the beginning though. I have to now try to figure out things like marketing for a property instead of looking in the MLS. I have to learn more about the rehab process. I need to figure out what banks look for when I refi and finally I need to make sure that the property makes sense as a rental. It sounds like a lot but I don’t have to be a master on every part of this process. I just need to put the right pieces in place.

To end this post, I’ll share a random thought I had while writing it.

Not sure why I just can’t work my 9-5 and just chill out. I think about this all the time. I use to be able to play PlayStation for hours. Now I don’t even have music on my phone because real estate podcast are my entertainment.

P.S. Don’t forget to leave a comment or feedback below. Thanks in advance.