Nice to find a cool website for a change with like-minded folks. My name is Matthew and I Live in Tacoma Washington. I bought my first house when I was 22 while I was living in my Girlfirend's Sisters basement. I had $3000 from a pell grant that I used as a down payment on an owner contract. I was a broke college student just starting out, and I thought Real Estate was my calling. Luckily my tenant who moved into the house made the entire mortgage payment, because I sure couldn't. I was amazed that I could buy an asset and have someone else pay for it...... I got the Real Estate bug, and that was nearly 17 years ago. My payment was $350 a month, and I rented it for $500.
All my friends thought I was crazy and stupid. They all told me to buy a really nice car that would get the babes. I passed and kept my crappy old honda.
The next deal I found was a lease option on a home with only $500 down. Granted, this was back when Real Estate was not vogue or mainstream yet. I rented out the home because I was still living in my Girlfriends Sisters basement. My payment was $440 a month and I rented it for $700, so now I was creating cash flow, not much, but to a poor struggling college student, it inspired me.
After school, a friend got me a job at a mortgage company. I began making very good money, so I bought a small home to actually live in. Again, I put down $3000 and did an owner contract because I couldn't get a bank loan. A few months later, I bought another house with $4000 down on an owner contract, the payment was $400 a month and I rented it for $650.
At this point, my cash flow actually made all the mortgage payments on my 4 houses, and I lived for free.... nice concept I thought.
I exercised my option on the house I lease optioned and got my first bank loan. I got a check at closing for $21k. My option price was $40k and I borrowed $65k on a house that was now worth $85k.
I took that money and bought an older view home in a really desireable neighborhood..... it was where the rich people lived. That was 14 years ago and I paid $110k for it and its now worth $400k
After working for the mortgage company for 2 years, I decided to start my own mortgage company. That was about 14 years ago, and I was lucky and blessed to be a business owner.
At one point a few years ago, I owned 17 properties and I became nervous about the run-up in Real Estate. I decided to sell 6 properties at the height of the RE market, which now looking back, was a great idea. I paid off my more upscale properties, and now live in a view home with an inground pool, hot-tub. I live for free.
I got my RE license a few years ago to get access to the deals on the mls. My RE broker approached me a few years ago and offered me 2 houses side by side in the Rich mans neighborhood. I had just sold the 1st home I ever bought and was looking to do a 1031 exchange to eliminate the potential capital gains, so I bought both houses for $160k each. I rented both of them out, and I was approached by a builder who was building 2 houses next door to the two houses I just bought. He offered me $50k for the backyard of these 2 houses. I told him I wasn't interested in selling, and I started looking into Short-platting the lots. It turns out that my RE broker tried to short-plat the lots, but he was told there was not enough room between the 2 houses for a road to access the rear of the property................. he got bad advice from an alcoholic surveyor because there was enough room, but only by 1 foot. It took a variance and 2 yrs 1 month and eleven days, but I created 2 more VIEW building lots. It cost me $36k in engineering which was all out of pocket, and it was a gamble, but I got lucky once again. The 2 houses are now worth $275k each and each of the 2 new lots is worth $200k. These four parcels are now worth nearly $1 million, all spawned from a $3000 down payment from my first house. Needless to say, my RE broker was very upset, not at me, but at the surveyor who screwed up.
Right after I bought the houses from my RE broker, I sent a letter to my old landlord. I rented a house from her when I was 19 and left it a mess, and felt serious guilt since I had been a landlord for so long. I sent her $500 and apologized for leaving her house such a mess. She called me a few weeks later and said that was the nicest thing anyone had ever done. We became friends and invited her over for Christmas. She was getting ready to retire and was moving to mexico. She owned 7 acres on an island in the puget sound and asked me If I wanted to buy it. My mom actually lived on the island, and I had great memories of it. She bought the 7 acres in 1965 for $200. I went out to look at the property and fell in love with it...... something you should never do in RE, but I didn't care. The property was amazing with towering old growth trees, a creek where the deer drink out of, and just 20 minutes away from my house. She offered to sell it to me for $30k cash. She had been offered $75k from a logging company, but wanted to sell it to me. I asked her why, and she said "I'm worth 8 million dollars and I want someone to cherish the property llike I did". I ended up paying her $40k cash for it. Some Millionaire from Microsoft has bought up all the large tracks on the island and has driven the prices up for large tracks. I punched in a road, put in a well, and now i'm putting in the septic. My son thinks it's the most special place on earth. He is in awe when he sees the deer drink out of the creek. The Microsoft millionaire sent me a letter 2 months ago and offered me $275k cash for it. I respectfully declined her offer, as I will be putting it in a trust for my son, so his family can enjoy it. We will be building a vaction home next spring after the septic is in. I get letters monthly from logging companies who want to butcher it, and I always toss them. My old landlord was the most plain person you have ever seen. She drove an old beat up car and lived in a modest home. I never would have thought she was worth so much money. It turns out, she had bought tons of land in the 60's for next to nothing. She is a very special person and I cherish her friendship.
I always tell people I am the luckiest person alive. I just happened to own a ton of Real estate during the biggest boom in history. I'm no genius, I got lucky, and I'm not afraid to admit it. I married my girlfriend whose sister let me live in her basement. We have one son, and he is my little man.
About a year ago, my wife came to me nervously, and said " do you know we are worth over $2 million dollars?" I was in shock because I was so busy with work and developing my properties. I asked her to show me and I looked at the spreadsheet and sure enough, she was right. Did I go out and buy a porsche? nope. Did we go out and buy a mega-mansion? nope. I buy my clothes at Thrift stores and drive a mini-van. Granted, I only buy high end clothes from thrift stores and I'm not embarassed by it one bit. My old landlord taught me a very valuable lesson. Be very frugal and live within your means, and if possible live below it.
To all you beginners out there, find your niche, and live frugally. Invest your money and find something you enjoy.
Careful for what you wish for because it may just happen.
Matthew
All my friends thought I was crazy and stupid. They all told me to buy a really nice car that would get the babes. I passed and kept my crappy old honda.
The next deal I found was a lease option on a home with only $500 down. Granted, this was back when Real Estate was not vogue or mainstream yet. I rented out the home because I was still living in my Girlfriends Sisters basement. My payment was $440 a month and I rented it for $700, so now I was creating cash flow, not much, but to a poor struggling college student, it inspired me.
After school, a friend got me a job at a mortgage company. I began making very good money, so I bought a small home to actually live in. Again, I put down $3000 and did an owner contract because I couldn't get a bank loan. A few months later, I bought another house with $4000 down on an owner contract, the payment was $400 a month and I rented it for $650.
At this point, my cash flow actually made all the mortgage payments on my 4 houses, and I lived for free.... nice concept I thought.
I exercised my option on the house I lease optioned and got my first bank loan. I got a check at closing for $21k. My option price was $40k and I borrowed $65k on a house that was now worth $85k.
I took that money and bought an older view home in a really desireable neighborhood..... it was where the rich people lived. That was 14 years ago and I paid $110k for it and its now worth $400k
After working for the mortgage company for 2 years, I decided to start my own mortgage company. That was about 14 years ago, and I was lucky and blessed to be a business owner.
At one point a few years ago, I owned 17 properties and I became nervous about the run-up in Real Estate. I decided to sell 6 properties at the height of the RE market, which now looking back, was a great idea. I paid off my more upscale properties, and now live in a view home with an inground pool, hot-tub. I live for free.
I got my RE license a few years ago to get access to the deals on the mls. My RE broker approached me a few years ago and offered me 2 houses side by side in the Rich mans neighborhood. I had just sold the 1st home I ever bought and was looking to do a 1031 exchange to eliminate the potential capital gains, so I bought both houses for $160k each. I rented both of them out, and I was approached by a builder who was building 2 houses next door to the two houses I just bought. He offered me $50k for the backyard of these 2 houses. I told him I wasn't interested in selling, and I started looking into Short-platting the lots. It turns out that my RE broker tried to short-plat the lots, but he was told there was not enough room between the 2 houses for a road to access the rear of the property................. he got bad advice from an alcoholic surveyor because there was enough room, but only by 1 foot. It took a variance and 2 yrs 1 month and eleven days, but I created 2 more VIEW building lots. It cost me $36k in engineering which was all out of pocket, and it was a gamble, but I got lucky once again. The 2 houses are now worth $275k each and each of the 2 new lots is worth $200k. These four parcels are now worth nearly $1 million, all spawned from a $3000 down payment from my first house. Needless to say, my RE broker was very upset, not at me, but at the surveyor who screwed up.
Right after I bought the houses from my RE broker, I sent a letter to my old landlord. I rented a house from her when I was 19 and left it a mess, and felt serious guilt since I had been a landlord for so long. I sent her $500 and apologized for leaving her house such a mess. She called me a few weeks later and said that was the nicest thing anyone had ever done. We became friends and invited her over for Christmas. She was getting ready to retire and was moving to mexico. She owned 7 acres on an island in the puget sound and asked me If I wanted to buy it. My mom actually lived on the island, and I had great memories of it. She bought the 7 acres in 1965 for $200. I went out to look at the property and fell in love with it...... something you should never do in RE, but I didn't care. The property was amazing with towering old growth trees, a creek where the deer drink out of, and just 20 minutes away from my house. She offered to sell it to me for $30k cash. She had been offered $75k from a logging company, but wanted to sell it to me. I asked her why, and she said "I'm worth 8 million dollars and I want someone to cherish the property llike I did". I ended up paying her $40k cash for it. Some Millionaire from Microsoft has bought up all the large tracks on the island and has driven the prices up for large tracks. I punched in a road, put in a well, and now i'm putting in the septic. My son thinks it's the most special place on earth. He is in awe when he sees the deer drink out of the creek. The Microsoft millionaire sent me a letter 2 months ago and offered me $275k cash for it. I respectfully declined her offer, as I will be putting it in a trust for my son, so his family can enjoy it. We will be building a vaction home next spring after the septic is in. I get letters monthly from logging companies who want to butcher it, and I always toss them. My old landlord was the most plain person you have ever seen. She drove an old beat up car and lived in a modest home. I never would have thought she was worth so much money. It turns out, she had bought tons of land in the 60's for next to nothing. She is a very special person and I cherish her friendship.
I always tell people I am the luckiest person alive. I just happened to own a ton of Real estate during the biggest boom in history. I'm no genius, I got lucky, and I'm not afraid to admit it. I married my girlfriend whose sister let me live in her basement. We have one son, and he is my little man.
About a year ago, my wife came to me nervously, and said " do you know we are worth over $2 million dollars?" I was in shock because I was so busy with work and developing my properties. I asked her to show me and I looked at the spreadsheet and sure enough, she was right. Did I go out and buy a porsche? nope. Did we go out and buy a mega-mansion? nope. I buy my clothes at Thrift stores and drive a mini-van. Granted, I only buy high end clothes from thrift stores and I'm not embarassed by it one bit. My old landlord taught me a very valuable lesson. Be very frugal and live within your means, and if possible live below it.
To all you beginners out there, find your niche, and live frugally. Invest your money and find something you enjoy.
Careful for what you wish for because it may just happen.
Matthew
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