On my way to a million

[21elnegocio]

Hey Guys,
Hope everyone is doing well, so lets get straight to the point as all of you I have been working hard to crack the code and find a good niche. After joining Real Estate two years ago knowing this is not a fastlane business, I got in it to have more time in my hands and research. I did a few sales my first year, but after that first year I found out that Real Estate is not as pleasant as people make it seem. You work really hard for a $5,000 check and the stress oh it is huge ! Anyways my goal was to be around real estate investors who came from nothing, I networked with a few investors and came across two brothers who really came from nothing and are now multimillionaires. I started paying attention of what they would do, they would wholesale, and flip properties. I asked them a few questions here and there but they never told me exactly what they would do. I did the rest on my own and researched on how to wholesale properties, I did tremendous research, I listened and still do to podcasts, and kept networking with people from biggerpockets. While I was doing research I was executing, I was sending out letters to property owners hoping they would be interested in selling. After many tries I started seeing some process, I didnt acquire any real estate deals but I started learned how to talk to these sellers, and what was a good and bad deal.

After many of those tries I was able to acquire a great real estate piece, a triplex for only $25,000 ! Yes it was livable with tenants. I got it appraised 3 months later at $115,000 I already have equity when I bought it !

After that I kept working hard looking for home owners in trouble looking to sell due to them about to loose their house. I landed a few more deals !

This has not been easy at all, I would stay up until 3am getting letters ready to send out the next day. Thanks to this I am now a landlord, I was able to pay a townhouse where I work from and call "office" cash ! and triplex.


I got into flipping homes as well, purchased a home from an unemployed lady that was about to loose it for a price of $40,000 and flipped it for $122,000 !


The road has not been easy, but I am glad I stuck to it and this is just the beginning. I have been in real estate only 2 years ! Give me a couple more years and I will be a real estate millionaire !


Just wanted to get my story out there to you guys, I am looking to opening a commercial cleaning business soon. I am doing some research on it at the moment.



Attached to this thread are a few checks of flips that I have closed

 

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[JokerCrazyBeatz]

This is what I needed to see. I plan to get into real estate and this gives me hope lol

 

[JoeB]

The road has not been easy, but I am glad I stuck to it and this is just the beginning. I have been in real estate only 2 years ! Give me a couple more years and I will be a real estate millionaire !

Good for you man, I believe you will do it.

I was looking at creating a BMV marketplace in the UK - the idea being that people who 'needed' to sell could contact Investors quickly and easily and get a better price than contacting one or two single investors. It didn't work out but during that I did read a book called 'Dominate Your Ground' by Mark I'anson which is all about sourcing Below Market Value property and it was by far the most detailed and useful information source I found on the topic.

It's written for a UK audience but I'd be amazed if you didn't get some useful, actionable info from it. Definitely worth a look if you can get a copy where you are.

 

[21elnegocio]

This is what I needed to see. I plan to get into real estate and this gives me hope lol

Yes! Real estate is not a Fastlane business but it sure does pay to pay your bills, I will continue to grow my rental portfolio. By the end of the year I will have another multiunits. Maybe a fourplex if I get a good price on it. That should make me close to half a millionaire if I get the right price on it. Real estate is a lot of work, but it sure does beat the 9 to 5

 

[21elnegocio]

Good for you man, I believe you will do it.

I was looking at creating a BMV marketplace in the UK - the idea being that people who 'needed' to sell could contact Investors quickly and easily and get a better price than contacting one or two single investors. It didn't work out but during that I did read a book called 'Dominate Your Ground' by Mark I'anson which is all about sourcing Below Market Value property and it was by far the most detailed and useful information source I found on the topic.

It's written for a UK audience but I'd be amazed if you didn't get some useful, actionable info from it. Definitely worth a look if you can get a copy where you are.

I will look into it, but there is plenty of opportunity on off market properties

 

[JokerCrazyBeatz]

Yes! Real estate is not a Fastlane business but it sure does pay to pay your bills, I will continue to grow my rental portfolio. By the end of the year I will have another multiunits. Maybe a fourplex if I get a good price on it. That should make me close to half a millionaire if I get the right price on it. Real estate is a lot of work, but it sure does beat the 9 to 5

if u get enough property then it becomes FastLane , once your monthly income is past $50-100k

 

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[goodguude]

Hey 21elnegocio,

that was a really inspirational post. Thanks for that.
I am also looking to get into real estate as soon as I have built some capital.

 

[JoeB]

I will look into it, but there is plenty of opportunity on off market properties

Ah, right. Certainly different to the UK.

 

[ActionMonth]

Question,

How did you get into real estate and do you need an education, degree or certification?

I'd like to get into it, but it is a completely different world to me.

My goal is to make it my Slowlane to support my Fastlane endevours.

 

[21elnegocio]

Question,

How did you get into real estate and do you need an education, degree or certification?

I'd like to get into it, but it is a completely different world to me.

My goal is to make it my Slowlane to support my Fastlane endevours.

I started off my getting my real estate license, there is a 90 hour course requirement here in Phoenix. From there I got surrounded by investors, it was a completely new world to me a$$ well, some things are still new. You never stop learning just like any other business. Look wholesaling on youtube you will find plenty of information in the investing side that I got into in real estate.

 

[21elnegocio]

Good for you man, I believe you will do it.

I was looking at creating a BMV marketplace in the UK - the idea being that people who 'needed' to sell could contact Investors quickly and easily and get a better price than contacting one or two single investors. It didn't work out but during that I did read a book called 'Dominate Your Ground' by Mark I'anson which is all about sourcing Below Market Value property and it was by far the most detailed and useful information source I found on the topic.

It's written for a UK audience but I'd be amazed if you didn't get some useful, actionable info from it. Definitely worth a look if you can get a copy where you are.

I know a guy doing pretty well out in UK doing the same thing as me.

 

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[wazboy]

Great post man! wishing you more success on your journey!

 

[21elnegocio]

12/4/2016

Update:
Hi Guys,
So I sent a text a text to the guy that I started learning from in the real estate investing world to come see my flip I have going on yesterday and he did (really cool down to earth guy) Then he said I want to take you to my projects so you can see and learn from mistakes that I have done in the past that will save you a ton of money. Long story short my brother and I met him at his office this morning and rode with him to 6 projects he has going on right now. We started from the cheapest home he is flipping and ended with a $600,000 home he has going on. He gave us lots of tips and we asked multiple questions, at first I asked why is he taking 5 hours out of his Sunday to show us this. I didnt ask him that but when he started explaining to us how he got into the business it made sense, he said someone he met at his 9-5 job got him in, he did mention he wants people like me and my brother, who are young and hungry getting same checks as he is getting. He opened up a whole new vision for us in a new market that we didnt think it was possible, I strongly believe that 2017 will be the year I become a millionaire in liquid cash. I will keep you guys updated.

 

[AgainstAllOdds]

at first I asked why is he taking 5 hours out of his Sunday to show us this

Imagine winning a trophy, bringing it home, and no one caring. Taking it to the bar and having everyone ignore you. Then, out of nowhere @21elnegocio comes along and asks about your trophy. Not out of politeness, but because he genuinely cares...

People are proud of their accomplishments and rarely have someone to show them to. If he can "show off" while also inspiring a younger version of himself, then he will.

 

[ZF Lee]

You might want to look into expanding your range and scale via sales agents you could hire. Barbara Corcoran did that. In fact she kept hiring sales agents. It's about the sales.

With that said, real estate may be low on the passitivity chart but it's one of the few businesses that offers real magnitude. If you are dealing with million-dollar deals, a chunk of the rewards would still be enormous.
Congratulations, you did well.

 

[fhs8]

I think that saying you'll become a millionaire in 2017 is a little too much. I only see five deals done for the past 1 1/2 years and the triplex is likely a one off thing. Did you put in any money fixing the homes or putting up signs? You can't just look at check amounts. As you know there are other investors so if it was easy riches you'd have more and more people become investors until it's no longer easy riches. That's how the free market works.

 

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[EvanOkanagan]

What are you going to be putting the 1m liquid cash into?

I have similar goals for 2017, but I'm looking at equity build-up to 1m instead as I like to hold my properties for the long-term.

I don't think I could find a better investment out there as passive and with as much ROI as my cash-flow rental properties.

 

[21elnegocio]

What are you going to be putting the 1m liquid cash into?

I have similar goals for 2017, but I'm looking at equity build-up to 1m instead as I like to hold my properties for the long-term.

I don't think I could find a better investment out there as passive and with as much ROI as my cash-flow rental properties.

Into multi-units, best ROI especially when you get them for a discounted price. Do not buy single family homes, unless it is a desired area in your town and you buy it at a discount price. (This is very important) other than that buy multiunits, you will not regret it.

 

[Chris Milan]

I think that saying you'll become a millionaire in 2017 is a little too much. I only see five deals done for the past 1 1/2 years and the triplex is likely a one off thing. Did you put in any money fixing the homes or putting up signs? You can't just look at check amounts. As you know there are other investors so if it was easy riches you'd have more and more people become investors until it's no longer easy riches. That's how the free market works.

 

[Guest24480]

So are you buying and holding certain properties and flipping others?

 

[21elnegocio]

So are you buying and holding certain properties and flipping others?

Correct, we look for the wave and the "pockets" focus on that area and move on to the next.

 

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[BrandonS85]

You might want to look into expanding your range and scale via sales agents you could hire. Barbara Corcoran did that. In fact she kept hiring sales agents. It's about the sales.

With that said, real estate may be low on the passitivity chart but it's one of the few businesses that offers real magnitude. If you are dealing with million-dollar deals, a chunk of the rewards would still be enormous.
Congratulations, you did well.

Real estate can be outsourced pretty easily, you just have to have the mind for management and look at it more like building a system rather than just a passive investment. My plan for the past 3 years has been to build something that can easily be handed off to mid-level guys earning a % of each property my company owns, while i sit back and collect checks. I'll soon be approaching that point, at which it'll become completely passive and I could stop there (Of course, I'm not gonna do that, but it seems alot of people here want to retire in 5 years and hang out on a beach somewhere).

The thing is with real estate you lock yourself into some pretty amazing metrics like appreciating property, depreciating your investment, tax benefits, leveraging other people's money and so on to build some real wealth.

I know a guy who 'flips' commercial and industrial. He might have $500k-$1m into a project, hold it for 3-6 months, triple-net lease all the properties so that he's 100% hands off, then cashout refinance putting $1mm+ into his pockets all while retaining the underlying asset and putting a few thousand in his pocket free-and-clear every month.

 

[21elnegocio]

Real estate can be outsourced pretty easily, you just have to have the mind for management and look at it more like building a system rather than just a passive investment. My plan for the past 3 years has been to build something that can easily be handed off to mid-level guys earning a % of each property my company owns, while i sit back and collect checks. I'll soon be approaching that point, at which it'll become completely passive and I could stop there (Of course, I'm not gonna do that, but it seems alot of people here want to retire in 5 years and hang out on a beach somewhere).

The thing is with real estate you lock yourself into some pretty amazing metrics like appreciating property, depreciating your investment, tax benefits, leveraging other people's money and so on to build some real wealth.

I know a guy who 'flips' commercial and industrial. He might have $500k-$1m into a project, hold it for 3-6 months, triple-net lease all the properties so that he's 100% hands off, then cashout refinance putting $1mm+ into his pockets all while retaining the underlying asset and putting a few thousand in his pocket free-and-clear every month.

You are right, same here I will not retire within 5 years. There is just so many opportunities out there and stuff to learn within the real estate world. I started doign the cashout refinance with SFR homes, it is an awesome system. It is called the BRRR method.
-Buy
-Rehab
-Refinance
-Repeat

 

[21elnegocio]

Hello Guys,
I have not been very active lately, but just wanted to give you guys an update. So I continue to grow my real estate portfolio and experience. My brother and I run a wholesaling business here in Phoenix, AZ we continue to get deals even though the market is flooded with "investors" like the saying says. On a gold rush, sell shovels. We are selling pretty much 80% of our inventory to investors looking to literally jump on anything that looks distressed. Its incredible how many are overpaying for properties, they pay over 80% LTV. My brother and I personally dont flip anything that does we dont put us in the 70% LTV rule.

Just closed a flip, wholesaled 4 properties this month, and just picked up a SFR in the $200k price range (Comps are at around $350k)

We eventually want to get into multifamily unit buildings, buy under performing units, kick out bad tenants, renovate them, raise rent and sell within 1.5 years or so and keep doing this over and over until we have a good cashflow of income coming in.

I also have a team of 5 agents under me that I just started about 2.5 months ago, they are all new at the moment. Only 2 are doing sales right now, income from them is not much but it pays the office space and bills, I also use that money to put it back into marketing for them.


Will continue to post our progress on here.

 

[21elnegocio]

Goodmorning Guys,
Just wanted to give you an update. I am still on the path to becoming a millionaire, I am closer than last time. I currently have 2 fixer uppers going on at the same time, one new build that will start off here soon, our wholesaling business going on, and the real estate sales to pay my bills.


I have also taped into AIRBNB and I have one apartment up for rent, just listed it yesterday and I already have about 8 bookings !


There is a saying that goes like this "Success is leased and rent is due everyday" therefore you can not stop working towards your goals, the moment you stop you start wasting your profit and back at point A. You must also have a balance I believe in time blocking and having a schedule for everything, even family time. Keep working hard guys we will all make it.

 

[Action Mike]

Great to hear updates! After the last few years of what you have done is there a particular part of RE that you would focus on 100% if you had to chose? Like wholesaling, flipping etc.

 

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[Dan670]

Nice work, Sounds like you are busy! I do house flips in my local market and as you mentioned in your market it's hot. Deals few and far between, people willing to bid on anything. Makes it tough for the guys with discipline and minimum return thresholds to be met.

I have done the value-add multifamily strategy in the past you mentioned. It provided decent returns but the landlord-tenant laws are too in favor of the tenants in my market now. Best of luck and look forward to hearing more.

 

[NadiaZ]

I started off my getting my real estate license, there is a 90 hour course requirement here in Phoenix. From there I got surrounded by investors, it was a completely new world to me a$$ well, some things are still new. You never stop learning just like any other business. Look wholesaling on youtube you will find plenty of information in the investing side that I got into in real estate.

How did you find real estate investors? I just joined the local Facebook group in my area for investors and I plan on talking to some people on Bigger Pockets

 

[21elnegocio]

Great to hear updates! After the last few years of what you have done is there a particular part of RE that you would focus on 100% if you had to chose? Like wholesaling, flipping etc.

Wholesaling, it is a quicker return. You can make anywhere between $5k-$30k in 3-6 weeks. With flips you end up making anywhere between $25-35k in the beginner flipping homes and it takes 5-6 months to sell these homes thats if nothing goes wrong with your contractor or the buyer cancels contract due to repairs they requested and you didnt do.

 

[21elnegocio]

How did you find real estate investors? I just joined the local Facebook group in my area for investors and I plan on talking to some people on Bigger Pockets

I go on the MLS and check pas cash sales in the zip codes we focus in and look them up. Send them a mailer or call them if there phone number is online. Then ask them if they would like to be added to our buyers list. We also partnered up with a big wholeseler who has a ton of buyers, you have to be careful with this one. The small wholeselers might try to steal your deal, big wholesaling companies who see the value you bring will JV with you and they will send out your deals to their buyers as long as you keep them exclusive to them, you just have to sit down with them and talk it out.