Crossing $3m net worth, 32 years old

Minneapolis, Minnesota
Real Estate Success Stories
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Crossing $3m net worth, 32 years old

Timothy W Hanson
Investor · Minnesota/Wisconsin/Iowa · Member since 2019 · 49 posts · 77 votes

Hello everyone!

I wanted to share my own success story. My first property purchase was in 2019 and back then my net worth was about $40,000. I grew my portfolio reasonably fast by continuing my work as an insurance adjuster, redeploying growing equity (into more purchasing), and driving Lyft after work. The properties are all on my profile if anyone would like to see them. I haven't updated them recently so the rents aren't accurate there. Right now, the portfolio has total rents of $35,000 per month (which can rise to $50,000/mo in the summer due to the RV campground that has mainly seasonal demand, which I hope to grow into year-round demand). Total mortgages are about $15,000/mo. I won't break down operating expenses further or the true net but the budget for my own expenses is crossing 6 figures.

The equity is $2.5m-$3m and that will become $6m through continued debt paydown. 

Real estate has changed my life, and the Bigger Pockets podcasts helped a lot. Thank you BP, and good luck everyone on your RE and FF journey! 

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Jeremy Horton
Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
4mo

Awesome work - give us some more details though! 

How are you funding the down payments? Seller finance? Partnering? I see your leveraging equity in other properties, but there's usually not too much equity to be added in early on (yes with businesses, not so much with other RE). Possibly w/ the MHP, but it seems like these are really based on cashflow for the valuation, they're essentially commercial properties. 120k invested there w/ a 40k net worth? Where's the help coming in?

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    4mo

    Nice work!

    1Reply
  • Jeremy Horton
    Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
    4mo

    Awesome work - give us some more details though! 

    How are you funding the down payments? Seller finance? Partnering? I see your leveraging equity in other properties, but there's usually not too much equity to be added in early on (yes with businesses, not so much with other RE). Possibly w/ the MHP, but it seems like these are really based on cashflow for the valuation, they're essentially commercial properties. 120k invested there w/ a 40k net worth? Where's the help coming in?

    8Reply
    • Timothy W Hanson
      OP
      Investor · Minnesota/Wisconsin/Iowa · Member since 2019 · 49 posts · 77 votes
      3mo
      Quote from @Jeremy Horton:

      Awesome work - give us some more details though! 

      How are you funding the down payments? Seller finance? Partnering? I see your leveraging equity in other properties, but there's usually not too much equity to be added in early on (yes with businesses, not so much with other RE). Possibly w/ the MHP, but it seems like these are really based on cashflow for the valuation, they're essentially commercial properties. 120k invested there w/ a 40k net worth? Where's the help coming in?



      Jeremy, you asked about any creative financing tools I used for these purchases. For the second purchase, the 50 lot mobile home park, I needed every dollar I had available to me. I liquidated my 401k early and I still needed additional money for the down payment. My realtor was the same realtor I worked with on the first purchase, so I had a "one deal" history with him. He was extremely helpful here. He placed cash into the mobile home park purchase as a secondary note secured to the property. It was about $60,000. 

      I made payments to him every month for 2 years, and I then refinanced the property and at that time he was paid back fully. The reason I refinanced was to make additional purchases and use some equity from the property. He did not rush me on repaying him. I've yet to hear about this happening for someone in any other deal, on forums or anywhere, so I am incredibly thankful to him and his agency. I believe that was a very rare offer. It does show the value of building relationships with agents. 

      I also eliminated my own housing costs by moving out of my apartment and into my parent's cabin in 2020. Not a luxury cabin, not built to be used year-round, no washer or dryer. I was using coin laundry in town and using unconventional methods for water during winters for a few years. :) 

      Thank you everyone for your kind replies, it made my day to see these.

      0Reply
    • Jeremy Horton
      Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
      3mo
      Quote from @Timothy W Hanson:
      Quote from @Jeremy Horton:

      Awesome work - give us some more details though! 

      How are you funding the down payments? Seller finance? Partnering? I see your leveraging equity in other properties, but there's usually not too much equity to be added in early on (yes with businesses, not so much with other RE). Possibly w/ the MHP, but it seems like these are really based on cashflow for the valuation, they're essentially commercial properties. 120k invested there w/ a 40k net worth? Where's the help coming in?



      Jeremy, you asked about any creative financing tools I used for these purchases. For the second purchase, the 50 lot mobile home park, I needed every dollar I had available to me. I liquidated my 401k early and I still needed additional money for the down payment. My realtor was the same realtor I worked with on the first purchase, so I had a "one deal" history with him. He was extremely helpful here. He placed cash into the mobile home park purchase as a secondary note secured to the property. It was about $60,000. 

      I made payments to him every month for 2 years, and I then refinanced the property and at that time he was paid back fully. The reason I refinanced was to make additional purchases and use some equity from the property. He did not rush me on repaying him. I've yet to hear about this happening for someone in any other deal, on forums or anywhere, so I am incredibly thankful to him and his agency. I believe that was a very rare offer. It does show the value of building relationships with agents. 

      I also eliminated my own housing costs by moving out of my apartment and into my parent's cabin in 2020. Not a luxury cabin, not built to be used year-round, no washer or dryer. I was using coin laundry in town and using unconventional methods for water during winters for a few years. :) 

      Thank you everyone for your kind replies, it made my day to see these.


      Gotcha - family friend realtor/lender and living in your parents vacation cabin (sounds like your parents have the ability to help as well, since they own a vacation house). Not discounting your hard work or deal making deals, but it makes a lot more sense now with essentially family funding. 

      This is definitely a unique situation and unrealistic for most - that's what people need to realize. 

      Can you replicate this? Sure if you have housing provided by family, a 0% interest lender etc. Not having this will obviously make it more difficult for most. 

      Interesting take on the 401k...I've had my thoughts on lowering my contributions as well...but then I'd owe a lot more tax. And liquidating is out of the question - that'd be 10% penalty plus income tax on top of it. I just can't bring myself to do that - I would have to have some major deductions to offset all that. Maybe one day

      0Reply
  • Adam TafelBusiness Member
    Real Estate Agent · St. Paul, MN · Member since 2017 · 569 posts · 393 votes
    4mo

    Amazing @Timothy W Hanson, thanks for sharing! Did you raise private capital for these purchases at a certain point? I assume the Lyft fares don’t add up to down payments very quickly, lol. Super cool, I know plenty of investors who started just before the pandemic and have been able to scale to pretty substantial portfolios, but this is something else.

    Would you ever consider coming on our podcast? We host the #1 Real Estate Investing show in the Twin Cities, you can check us out at TwinCitiesRealEstateInvesting.com. Shoot me a private message if interested, no pressure.

    Best of luck moving forward!

    Upside Property Sales 4.9108 Reviews
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    1Reply
  • Denise SuppleeBusiness Member
    Realtor · Willow Grove, PA · Member since 2017 · 962 posts · 636 votes
    4mo

    Hello @Timothy W Hanson,

    I love hearing stories like yours! Real estate has been my life. Literally, over 45 years. I am a Realtor, have managed properties, invested and now I help people passively invest. You are a light to all those that embark and have the desire for financial freedom! Best of luck to you always!!!

    Spark Rental Co-Investing Club576 Reviews
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    1Reply
  • Ashley RigsbeePro Member
    Customer Success & Onboarding Specialist at BiggerPockets · Charlotte, NC · Member since 2023 · 49 posts · 22 votes
    4mo

    Great success story thanks for sharing Timothy!

    BiggerPockets
    1Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    4mo
    Quote from @Timothy W Hanson:

    Hello everyone!

    I wanted to share my own success story. My first property purchase was in 2019 and back then my net worth was about $40,000. I grew my portfolio reasonably fast by continuing my work as an insurance adjuster, redeploying growing equity (into more purchasing), and driving Lyft after work. The properties are all on my profile if anyone would like to see them. I haven't updated them recently so the rents aren't accurate there. Right now, the portfolio has total rents of $35,000 per month (which can rise to $50,000/mo in the summer due to the RV campground that has mainly seasonal demand, which I hope to grow into year-round demand). Total mortgages are about $15,000/mo. I won't break down operating expenses further or the true net but the budget for my own expenses is crossing 6 figures.

    The equity is $2.5m-$3m and that will become $6m through continued debt paydown. 

    Real estate has changed my life, and the Bigger Pockets podcasts helped a lot. Thank you BP, and good luck everyone on your RE and FF journey! 

    Awesome story, Timothy. Huge congrats on what you’ve built. I think one of the biggest takeaways here is that you didn’t do it with some crazy startup money or overnight luck—you stayed consistent, kept your W2 income strong, reinvested equity, and kept pushing forward even doing Lyft on the side. That’s the part newer investors really need to hear because a lot of people underestimate how powerful steady action and patience can be in real estate. Going from a $40k net worth to a multi-million dollar portfolio in just a few years is incredible, especially while building multiple income streams and staying focused on long-term wealth instead of quick wins. Also really cool to see you mention the RV campground angle since alternative asset classes are becoming more popular now with investors looking for stronger cash flow. Appreciate you sharing the numbers and the journey because posts like this are motivating for people who are still trying to get that first or second deal done. Congrats again and thanks for giving back to the BP community!
    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9119 Reviews
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    1Reply
  • Lily Lee
    Homeowner · CA · Member since 2026 · 5 posts · 1 vote
    2mo

    Well done! I own 37 properties. The rental income is starting to make me value this part of my assets

    1Reply
  • Ryan SpathBusiness Member
    Real Estate Agent · Boise, ID · Member since 2017 · 553 posts · 370 votes
    2mo

    Timothy, what an amazing success story! to go from 4ok NW too a multi-millionaire in 7 years is absolutely incredible! This is why people get into real estate, it truly allows regular people to have extraordinary lives! Congrats on the success and thanks for sharing!

    [email protected]208-600-2814
    1Reply
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    2mo
    Quote from @Timothy W Hanson:

    Hello everyone!

    I wanted to share my own success story. My first property purchase was in 2019 and back then my net worth was about $40,000. I grew my portfolio reasonably fast by continuing my work as an insurance adjuster, redeploying growing equity (into more purchasing), and driving Lyft after work. The properties are all on my profile if anyone would like to see them. I haven't updated them recently so the rents aren't accurate there. Right now, the portfolio has total rents of $35,000 per month (which can rise to $50,000/mo in the summer due to the RV campground that has mainly seasonal demand, which I hope to grow into year-round demand). Total mortgages are about $15,000/mo. I won't break down operating expenses further or the true net but the budget for my own expenses is crossing 6 figures.

    The equity is $2.5m-$3m and that will become $6m through continued debt paydown. 

    Real estate has changed my life, and the Bigger Pockets podcasts helped a lot. Thank you BP, and good luck everyone on your RE and FF journey! 

    Nice. Is that equity expectation for the future before taxes or after taxes?
    0Reply
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