If you listened to the BiggerPockets Podcast over the past few weeks, you’ll already know this:
I just sold half of my portfolio.
Out of my 52 rental units, I just sold 24 in one swoop by unloading my 24-unit apartment complex. (At the same time, I also sold two of my single family houses.)
Since then, I’ve been asked numerous times:
Is the real estate market crashing?
Is it time to get out of real estate?
Is the sky falling?
Should I buy Bitcoin instead? (No.)
Today, I wanted to explain just why I sold my portfolio—and why that should make you a little nervous.
But don’t worry, it’s not what you think.
How to Invest in Real Estate While Working a Full-Time Job
Many investors think that they need to quit their job to get started in real estate. Not true! Many investors successfully build large portfolios over the years while enjoying the stability of their full-time job. If that’s something you are interested in, then this investor’s story of how he built a real estate business while keeping his 9-5 might be helpful.
Why I Sold
When I started investing in real estate, I made a lot of mistakes. We all do.
One of those mistakes was very simple, and something many people do: When I analyzed deals, I assumed I would be able to do the property management myself, forever. After all, when I was buying my 24-unit apartment complex, I was just 25 years old, so it was easy. I had no kids, and my wife and I could spend all our time dealing with the drama that comes with owning lower-income rental properties.
However, time’s have changed. Specifically, this happened last year:
That’s right—I’m now a dad and it’s the best thing in the world.
So, managing tenants wasn’t as fun as it once was, because frankly, I’d rather spend my time with Rosie.
But remember, when I analyzed my early deals, including my 24-unit apartment, I didn’t plan for property management. So, if I decided to outsource it at this point, a large chunk of my cash flow would be destroyed, AND because of my location, I don’t think I could find a decent property manager.
In other words, I had painted myself into a corner. Whoopsies. So when someone randomly offered to buy my apartment complex, I said, “Sure.”
Related: How to Beat the Coming Housing Slowdown With a Value-Add Multifamily
[Subtle lesson here: I was contacted by a local investor, completely out of the blue. I had not been thinking of selling at all. He just hit me at the right time and bought a great deal from me. This should motivate you to contact every landlord in your area. There is a good chance many of them are in the same boat I was.]
No, real estate is not collapsing. Will the market decline again? Of course. It’s just a matter of time. Statistically, we’re in for a recession soon.
But does that mean I’m no longer buying real estate? Far from it. In fact, I’m just starting.
And that should make you nervous.
Why You Should Be Nervous About What I’m Doing
It’s simple: I’m going to compete with you—and I’m going to win.
Yes, I just said it.
I’m taking your next deal.
I’m going to out-hustle you.
I’m going to out-market you.
I’m going to out-smart you.
And I’m not the only one. Smart investors, everywhere, are still looking—and still finding—deals. So, are you going to sit on the sideline and wait for the market to decline? Or are you going to get out there and compete with me?
Real estate investing is a wild sport, and amateur hour is over. I’m ready to play.
The Next Step for You
Look, the end of 2017 is approaching quickly. You had some pretty lofty goals set at the beginning of the year. How are you doing on them?
Are you ready to get serious about CRUSHING your goals? If so—and if you are ready to SPRINT to the end of the year—then listen up: Take the “90-Day Challenge” with me.
Related: Buying a House: The Ultimate Guide to Purchasing Your First Property
It’s a 90-day sprint to buy your first (or next) property before the end of the year, and the entire BiggerPockets community is going to be doing it together.
To kick off the challenge, you need to attend this week’s BiggerPockets Webinar.
It happened on Wednesday, October 4th at 4:00 p.m. Pacific (7:00 p.m. Eastern) BUT if you missed it – you can watch the replay right now!
It’s time to sprint to the finish line.
See ya there?
How have your yearly goals been going? Will you participate in the 90-Day Challenge?