All Forum Posts by: Rich Weese

in 3 to 5 years. There was a thread that got fairly long and got a little bit off subject started a day or two ago. The question was whether anyone had retired on real estate after 3 to 5 years. I answered yes. I decided additional information was needed with several disclaimers.

I accomplished this in the 1970s when the real estate market was significantly different. I was one of those real estate guru's before that was even the the definition. I was also a real estate syndicator before syndication was the name. They were called, limited partnerships, and had significant differences from a syndication.

I was in the right place at the right time with inflation running rampant. Huge benefit.

Properties were easier to purchase without institutional financing by adding a second, or third, or fourth mortgage to the property, as well as the ability to sell it on contract.

Most of the posters on bigger pockets are relatively new. I have over 5000 posts, but the majority of those are over four years old. A member of bigger pockets is still able to go back and read those threads and learn how I accomplished an early retirement.

In a nutshell it consisted of three things:

Buying single-family residences with very little down payment or assuming FHA or VA loans..

Obtaining a real estate broker's license in California and Colorado and having salespeople in both locations bird-dog to find commercial buildings the owner was willing to sell. There are some cool threads telling how that was done.

I put many real estate limited partnerships together. Rather than needing the investors to invest more cash to pay my commission, I was willing to take a note even though it might be a third or fourth trustee. That is the way things were done on large apartment complexes. I simply let inflation do the rest.

My main office was in Fullerton, California. When I felt I had enough money to retire on, I sold the California office to my wife's brother and the Colorado office to a dear friend.

When I retired, I owned quite a bit of real estate, some of that free and clear, and notes totaling $1.6 million. In that day and age, ( 1970s) notes had an interest rate of 10 to 12%. Before I walked out the door each morning, I had approximately $180,000 income on notes and easily $200,000 annual income.

My original level of retirement was to move to central California, to a town called Nipomo and builda home on 4 acres. It was nothing gaudy, but a very nice 3000 ft.² single level home. I had four children at the time and the home was very adequate. I would call it a level II retirement location on a level I retirement income.

I have continued to buy real estate and build homes, but for all intent and purposes, I was very financially independent at that time. I have no idea what $200,000 annual income would be today. It was more than enough.

@Brian Adams @Jay Hinrichs

I think I need to add a different thought process to Jay. I realize that most people on bigger pockets are into single-family residences. I do not know much about the Dallas economy. With regards to 99-year-old rental properties.

I have purchased three large apartment buildings in Dallas outskirts:

Grand Prairie, Garland, and Mesquite. I paid $400,000 in property taxes on those three properties this year. That is considerably more than I paid last year. The reason I paid more, is the values of gone up a ridiculous amount. I will give you one example. The building I purchased in Grand Prairie was just over $6 million. I put 25% in as a down payment, $1,400,000. I have various brokers in the Dallas area that are telling me they have buyers ready to purchase and that $9 million is in the ballpark. Two of them are regulars here on bigger pockets and very successful. If I choose to sell, and use a 1031 exchange, my $1,400,000 will have grown to over $4 million net. I also have significant cash flow on a monthly basis, which adds to the $4 million net.

I'm okay with the $400,000 in taxes for the year….I realize not everyone can do this but there are many investors from other states investing in Dallas very successfully.

Jay, did you not have insurance? One of my buildings got damaged by a hailstorm a few years ago in Dallas and I received a $1.4 million payment. I received all new roofs, 45% new heating, air conditioning systems, new fascias, gutters and more. My insurance premium went up the next year, but I certainly improved my building on someone else's nickel.

Brian,

I'm sure you are another one that has found the Dallas area. A fun place to be investing or you would not be there. Congratulations on getting your large building under contract. It doesn't seem to be extremely difficult now since there is such a limited amount of inventory. I receive contacts on a weekly basis from agents trying to find inventory.

I also own quite a few single-family residences and lots in Rio Grande Valley. The increases in value have certainly slowed down in that area over the past few years.

@Marcus Martinez

I'm not a wholesaler but I do have some apartment buildings in Dallas.

Dallas has been unbelievable to me!!

I suggest it wholeheartedly as a place to move to. People that live there can give you all the reasons why.

Good luck

I have another suggestion for you to compare. I built quite a few homes in St. George, Utah recently. I decided to use beautiful tile on the countertop. These were 12 inch square, and I had them installed with a diamond pattern. The bull nose was done in the same tile. It was much less expensive and wasn't the same old, same old granite countertop. Currently, I use a product that is less expensive than granite, but looks just as nice. My managers of apartment projects in Texas use this on all the properties they manage. They tell me it comes in by the boatload from China at a great price. I know nothing more about it and don't remember the name of it at the present time.

The bull nose on granite has always been very expensive. Your price doesn't surprise me.

@Llewelyn A.

I agree with you in regards to the original post in this thread. The first question was has anyone retired in 3 to 5 years on real estate investing? My response was, yes.I then went on to say there were multiple ways to accomplish this in less than 10 years. His second question was how to accomplish this. Since the discussion was about real estate, I My reply to what seems to be the most talked about subject here on bigger pockets. That is single-family residences. I proceeded to state that buy and hold is one way of doing it and probably the most safe. I also stated that if you are able and have the knowledge, go ahead and try by and turn quickly.

I added a lot more information in my original post and have added to that in other posts on this site. I don't have time on here to answer all of your questions, which I felt were very good, but anyone that wanted to research my threads and posts on bigger pockets would find my attitude or answers to most of the questions you asked. I started several threads years ago, answering most of the questions you listed as well as explaining how I reached retirement in a book that has been referred to in this same thread.

If someone has an individual question from your list, please ask me and I will try to answer it.

I don't think I've ever answered the question on whether my retirement would be an A, B, C, or D neighborhood. I retired with the ability to live in an A neighborhood but chose not to spend that much money. I chose to move to The Villages in Florida, which is rated as the number one retirement community in the country. There are four different levels of homes here. I selected one from level to and added everything I needed. I added a fourth car garage, a giant lanai, a 45 foot swimming pool, and a nice craft room for my wife with all built-in counters cabinets and shelves.

I know that happens to a lot of real estate newbies! Good luck and welcome to bigger pocket's.

I believe it is most certainly a bubble,, but no one can predict how big it needs to get before it explodes. It will, unfortunately explode.

contact David fair here on bigger pockets. He would be able to tell you where the real estate group meets. I'm surprised no one has responded to your first post. Welcome to bigger pockets.

@Max Lala

if you are truly planning on living with $6000 per month, will you be able to do that in California, or would you need to move somewhere else? My kids that live in California have a hard time doing it for that amount and they are pretty thrifty.

@Account Closed

I was unable to determine what the total net gain would be from your information. If you are happy with the job the landscaper is doing and the amount you are paying him, I don't think I would rock the boat for $50-$60 per month. If you need that extra $50-$60 per month for personal expenses, then you may want to take that chance. You may lose your tenant and end up looking for a new tenant and a new landscaper!