Read on Twitter
BUY that 1st Property - How I turned $14k into $185k
Like a lot of people that grew up wanting to become wealthy I started reading books on how to create wealth.
Started with The Millionaire Nextdoor by David Bach, moved onto The Automatic Millionaire,
A THREAD
Like a lot of people that grew up wanting to become wealthy I started reading books on how to create wealth.
Started with The Millionaire Nextdoor by David Bach, moved onto The Automatic Millionaire,
A THREAD
..Rich Dad Poor Dad, etc.
What I quickly came to realize was that, when you come from nothing and have minimal capital to get started, real estate is your entry point.
I started to read real estate books. I decided the first step I would take in creating financial freedom
What I quickly came to realize was that, when you come from nothing and have minimal capital to get started, real estate is your entry point.
I started to read real estate books. I decided the first step I would take in creating financial freedom
would be purchasing a rental property.
I started to read a couple books on how to be a landlord. THEN came the time to actually jump in.
Like most people looking for there first deal, I over analyzed each deal, made excuses for why it was not the right one. I was scared.
I started to read a couple books on how to be a landlord. THEN came the time to actually jump in.
Like most people looking for there first deal, I over analyzed each deal, made excuses for why it was not the right one. I was scared.
So many people do this, over analyze and stall when it comes time to jump in. Well finally a deal came across that just felt right.
It was a 4-unit building. All 4 units were full with existing tenants. It was not in a great area. Some ppl even tried to steer me away from buying
It was a 4-unit building. All 4 units were full with existing tenants. It was not in a great area. Some ppl even tried to steer me away from buying
I decided, no more hesitation. What better way to learn how to be a landlord than to jump right in with a 4 unit and 4 different tenants. While it was scary, it was the best choice I have made in my real estate career. It got me started; I took that first step!!!
The property was $109k and required 25% down. I did not have the full $28k to put down. I borrowed $14k from my 401k and combined that with the $14k that I had saved up.
I will not fill you in on all the learning experiences I went through with that 1st property (a diff thread)
I will not fill you in on all the learning experiences I went through with that 1st property (a diff thread)
I will share with you the results of taking that FIRST STEP and jumping in.
I never put another dime of my own money into the property. It had immediate cash flow being a 4-unit building with tenants in place. Not to say it was easy...
I never put another dime of my own money into the property. It had immediate cash flow being a 4-unit building with tenants in place. Not to say it was easy...
a couple tenants were immediately behind in rent, I went through a couple evictions, found all the deferred maintenance from the previous owner etc. etc.
I made it work. Never took any money out of the property. Used the cash flow to continue to improve the property.
I made it work. Never took any money out of the property. Used the cash flow to continue to improve the property.
Paid off the 401k loan with the cashflow, Raised rents as I saw fit, etc. etc.
The end result: Over 5 years the mortgage was paid down to about $70k. The 401k loan was paid off. An investor approached me and advised he could sell my property off the market if I was interested.
The end result: Over 5 years the mortgage was paid down to about $70k. The 401k loan was paid off. An investor approached me and advised he could sell my property off the market if I was interested.
I ran the numbers and told him if he could get me $270k I would sell. He found a buyer and I sold.
In summary: I invested $14k, 5 years later that $14k turned into a $185k check (my net after paying off the mortgage, all fees, etc.). Not including cash flow over the 5 years.
In summary: I invested $14k, 5 years later that $14k turned into a $185k check (my net after paying off the mortgage, all fees, etc.). Not including cash flow over the 5 years.
That is roughly a 1300% return on my money in 5 years. Where else can you make that kind of money?
Did I have to sacrifice time here and there doing maintenance, dealing with tenants, going through evictions, new tenant screening, etc. etc? Yes.
But, for that kind of return it
Did I have to sacrifice time here and there doing maintenance, dealing with tenants, going through evictions, new tenant screening, etc. etc? Yes.
But, for that kind of return it
was well worth it!
I did this while working my full time job.
Will this happen with every rental or investment you make? Definitely not. However, if you sit on the sidelines and never jump in, you will never have the chance.
Take that FIRST STEP, you will not regret it!
I did this while working my full time job.
Will this happen with every rental or investment you make? Definitely not. However, if you sit on the sidelines and never jump in, you will never have the chance.
Take that FIRST STEP, you will not regret it!
