160k/4m
Real estate combined with aggressive savings worked for me. I am in my mid 30s and am at this level Now and am contemplating an early retirement. I live a very simple life and drive a used pickup with minimal expenses. I eat out twice a week , pack my own lunch and don't give a damn about what anyone says or thinks.
The whole reason of getting into real estate was My family Purchased a couple of properties in NYC 30 years ago. I would help them while I was young with cleaning the properties , painting and collecting rent. I took an immediate liking to real estate and memorized the art of the deal by trump at a young age.
The NYC market in mid 90s was shit. And if you were sitting on capital could have purchased properties for 5 to 10 percent of what the market price is now.
The key is to talk to the old timers about the ups and downs of the business cycles they experienced in addition to market research. Talk to people who live and own businesses in the area you are looking to invest. I make it a point to only eat and shop in areas where I'm looking to invest. I talk to the cashiers , janitors To get real time street knowledge. I want to know about families , school performance , police Etc.
Either way, I wanted to make it on my own and went through the 80 - 90 hour work weeks to accomplish it. I don't count my families money as mine as I did not work for it. Therefore, I will not spend it while I can work.
I worked in finance for about 10 years and saved a large percentage of my earnings while cutting back on expenses. I then purchased small apartment complexes in blue collar areas that rent roll with reasonable returns to qualified cash tenants or subsidized / low income housing.
The learning curve was building a good team while setting up acquisitions / renovations. That has been the most arduous task I have ever accomplished. There is a balance point that is necessary in order to scale the business accordingly. It is a very fine line that can easily be overlooked. You may encounter great property value but not have the resources to renovate them quickly and enough staff to handle the back end.
Over the last few years I have build a very tough office management and field personnel team. I pay them well to help coordinate repairs , rentals , collections Etc.
If you are a newbie with real estate you must be very careful as this is what I call a standard 5 facet business. If one of these pillars is compromised the whole damn thing will collapse.
5 facets:
Acquisition
Renovation / maintenance
Tenant placement
Collection
Filing tax returns properly
Example 1:
You could be the guy who finds the best deals and have Holmes on homes quality renovations but end up renting to the wrong tenants and not having an aggressive collection team and you will fail.
Example 2:
You are great with paperwork and can harass people to collect money but don't have the construction knowledge to know driveway , electric , plumbing repairs / price points.
You end up getting overcharged on renovation cost and may even get persuaded to buy a home in an area that renters do not like by the typical pushy realtor looking for a commission
Example 3:
Slumlord scenario. Push for money and rent out units that are not in good condition while avoiding maintenance. Then deal with the turnover and garbage tenants that a dilapidated property only seems to attract. Maybe you are a total shit landlord and cover up a bunch of black mold with new dryeall and the tenants then get sick exposing you to lawsuits.
Either way , real estate is not for everyone.
Just like I never touched the stock market. I like the feeling of upside. The feeling of buying an undervalued asset that sold for 3x or 4x what i paid for it several years ago.
I want to build something and see a level of progression. I also prefer a steady drop in the bucket that has the potential to build up into a waterfall versus the one big inconsistent payout.
That is why I am contemplating an early retirement that may only last a couple of months before Boredom and lack of accomplishment despair sets in.
Real estate combined with aggressive savings worked for me. I am in my mid 30s and am at this level Now and am contemplating an early retirement. I live a very simple life and drive a used pickup with minimal expenses. I eat out twice a week , pack my own lunch and don't give a damn about what anyone says or thinks.
The whole reason of getting into real estate was My family Purchased a couple of properties in NYC 30 years ago. I would help them while I was young with cleaning the properties , painting and collecting rent. I took an immediate liking to real estate and memorized the art of the deal by trump at a young age.
The NYC market in mid 90s was shit. And if you were sitting on capital could have purchased properties for 5 to 10 percent of what the market price is now.
The key is to talk to the old timers about the ups and downs of the business cycles they experienced in addition to market research. Talk to people who live and own businesses in the area you are looking to invest. I make it a point to only eat and shop in areas where I'm looking to invest. I talk to the cashiers , janitors To get real time street knowledge. I want to know about families , school performance , police Etc.
Either way, I wanted to make it on my own and went through the 80 - 90 hour work weeks to accomplish it. I don't count my families money as mine as I did not work for it. Therefore, I will not spend it while I can work.
I worked in finance for about 10 years and saved a large percentage of my earnings while cutting back on expenses. I then purchased small apartment complexes in blue collar areas that rent roll with reasonable returns to qualified cash tenants or subsidized / low income housing.
The learning curve was building a good team while setting up acquisitions / renovations. That has been the most arduous task I have ever accomplished. There is a balance point that is necessary in order to scale the business accordingly. It is a very fine line that can easily be overlooked. You may encounter great property value but not have the resources to renovate them quickly and enough staff to handle the back end.
Over the last few years I have build a very tough office management and field personnel team. I pay them well to help coordinate repairs , rentals , collections Etc.
If you are a newbie with real estate you must be very careful as this is what I call a standard 5 facet business. If one of these pillars is compromised the whole damn thing will collapse.
5 facets:
Acquisition
Renovation / maintenance
Tenant placement
Collection
Filing tax returns properly
Example 1:
You could be the guy who finds the best deals and have Holmes on homes quality renovations but end up renting to the wrong tenants and not having an aggressive collection team and you will fail.
Example 2:
You are great with paperwork and can harass people to collect money but don't have the construction knowledge to know driveway , electric , plumbing repairs / price points.
You end up getting overcharged on renovation cost and may even get persuaded to buy a home in an area that renters do not like by the typical pushy realtor looking for a commission
Example 3:
Slumlord scenario. Push for money and rent out units that are not in good condition while avoiding maintenance. Then deal with the turnover and garbage tenants that a dilapidated property only seems to attract. Maybe you are a total shit landlord and cover up a bunch of black mold with new dryeall and the tenants then get sick exposing you to lawsuits.
Either way , real estate is not for everyone.
Just like I never touched the stock market. I like the feeling of upside. The feeling of buying an undervalued asset that sold for 3x or 4x what i paid for it several years ago.
I want to build something and see a level of progression. I also prefer a steady drop in the bucket that has the potential to build up into a waterfall versus the one big inconsistent payout.
That is why I am contemplating an early retirement that may only last a couple of months before Boredom and lack of accomplishment despair sets in.