How I went from ~100k to Millionaire in 6 Months

[Gary Crawford]

Initially, when reading the title of the article, this sounds like a get rich quick scheme or simply too good to be true. I will keep this short and concise, but most of what I have done can be replicated by almost anyone with some work ethic and proper direction. December 26, I closed on my first rental property in Columbus Ohio, it was a C Class Duplex.

33,500 Purchase Price
80,000 Appraisal
1225 Rent

My partner and I instantly had 40k each in equity after putting about 17k each. From there we purchased a 5-unit building for $111k via Lease Purchase Agreement (Property stayed in seller’s name, gave a 10k down payment and continued making payments on the property. We bumped rents up and are currently going through one eviction. I would say we can sell for about 250-275k right now after renovations and rent increases. That leaves each of us with 80k in equity. I won’t be breaking down each deal but I was able to replicate on 5 other duplexes and daycare in Columbus, as well as 2 Single Family and a Condo in Vegas.

Now, 2 weeks ago I was really stressing while in Europe having to worry about evictions, loans, toilets leaking, etc. I decided the best idea was to liquidate some of these problem properties. After some deep thought, I realized the best way to liquidate was to become the bank on these deals and offer owner financing or subject to depending on the deal. Now I will give you one example: I purchased one property for 120K using a hard money loan, did some light renovations, handled an eviction, and agreed to sell it to one of the tenants with a 60K renovation budget. The agreed sale price is 400K, I will keep the mortgage under my name at $1200 and collect $2400 per month, cash flowing a little over $1000 per month and 200K of equity at the agreed purchase price.

Adding up my portion of the equity in the properties and my liquid cash totals to $1,105,000 putting in the net worth of 1 million + at the age of 26. Now I think 1mm is great and all, but this number doesn’t have significant value to me. My monthly cash flow right now is just under 5k and I would really like to be at 8k by the end of this year and 12k per month a year from now. Things seem to be scaling much quicker now so I wouldn’t doubt if I blow these goals out of the water. I can proudly say I do not wake up each morning thinking about going to “work.” This isn’t arrogance, this is just the lifestyle I have been able to develop through real estate.

I have set a goal for myself to do at least 1 week a month traveling, to force myself out of the rat race, which is so easy to get caught up in. Hopefully, I can double that number and work remotely.

Feel free to connect,

GC3

[John Teachout]

Someone's net worth has nothing to do whether assets are liquid or not. Never heard such an unusual theory. Most people's assets are NOT liquid because having a million bucks in your checking account would be sorta dumb.