Realistic Expectations Starting From Scratch

[Aaron Kaminer]

Hell All,

This is my first post here on this forum. In fact, I am brand new to real estate. I recently finished "The BRRRR Rental Property Investment Strategy Made Simple." In addition to this, I have spent a couple of months researching this topic in general and I feel I have a reasonably good grasp on the method. I believe I will be ready to make my first purchase in the next few months.

My question: I am starting with only the knowledge I have gained from the research outlined above, healthy disposable income, perfect credit, and a strong desire to gain financial freedom. Is it realistic to expect (given a strong work ethic and reasonable intellectual capacity) that I could achieve financial freedom in 5-10 years using only the BRRRR method? (Obviously, continued research and learning should be assumed.)

Some parameters to help flesh out the question:

Financial freedom : $20,000.00 gross per month

Strong work ethic : willing to put 20-30 hours per week into this (in addition to my full time day job)

Location : Oklahoma City. Ideally I would to this region for property acquisition. 

I understand that there are many more factors at play here, however, I believe that realistic goals are important and I am looking to validate  this broad stroke aspiration by asking more experienced real estate investors to weight in on this hypothetical.

I am deeply appreciative of any feedback you might be willing to share with me.  

[Joe Villeneuve]

No.  To achieve your goals, you need to learn more than one strategy, learn about nore markets to invest in, and have a plan based on those markets and strategies, that starts from now, and ends up achieving your goals.

BRRRR is a linear strategy, meaning one property at a time. You need to learn how to compound your returns. Let me give you a timeline of what you might be setting yourself up for. Since you would need to wait 6 months from the start of ownership of each property before you can refi and get money out, that means your timeline is at best, 3 properties every 2 years (you're not going to rapid fire one every 6 months). This means, in order to achieve your $20k/month, within your desired time period, of 5 years, each property you buy would need to have an average gross income of about $3k per property. In 10 years, it would need to be about half that...but that would mean 15 properties...and that's not going to happen. You'll never qualify for that many.

Now, your goals are achievable, just not taking the limited path you have chosen.  Learn how to use PArtners, Sandwich Lease Options (a much better way to start out), seller financing, flipping cash (not necessarily buying low/rehab/sell high), the secret of this number sequence...1073751824...and how and why you should apply its meaning to every decision you make, and much more.