Ep 276: Early Retirement by Age 35 ($10k/mo) Through Real Estate

[Mindy Jensen]

Why work at a lame job until you’re too old to enjoy the life you’ve been given? If you are looking to get out of the rat race earlier, this is one episode you can’t afford to miss. Today on The BiggerPockets Podcast, we sit down with Bryce Stewart, a former school teacher who was able to quit his job at age 35 through the smart purchases of small multifamily properties. Bryce shares his powerful story on how he was able to build a portfolio of 22 units that give him $10,000 per month in income. Bryce also shares a phenomenal concept he called “vacuuming the truck,” which could change the way you think about real estate (and life) forever.

Listen here or on your favorite podcast app.

[Hunter Latta]

Great podcast, inspirational for those that “don’t have funds” and “can’t find deals”. Vacuum the truck!

[Jeff White]

Awesome podcast and very inspiring story.  Haha, I love "vacuum the truck!"  

I definitely don't think he is an idiot. He is a humble guy. He is like most of us in that we don't know about all of these opportunities with multifamily, FHA or conventional financing or using other peoples money. They don't teach that stuff in schools. He is a very bright guy and look how far he is now. Something that we can all shoot for as we aim to get to financial freedom.

[Jason Howell]

The "vacuum the truck" stinger at the beginning had me scratching my head at first but it all came together in the episode and it's such a valuable lesson! One question I have is about Bryce's experience funding his deal with his family's HELOCs. What kind of terms we're associated with that? Obviously you are doing THEM a favor cause you are bringing them in on the deal, but let's say you only have their money for six months before you refi and pay them back. In the interim, what would you pay your family for the borrowed money? 5%? More cause it's family? What's both fair and enticing? Really, this a question for anyone.

[Hunter Latta]

@Jason Howell Paying family is tricky. If you were in his shoes, what would you do? 

[Mark S.]

#VacuumTheTruck

[Derrick E.]

First podcast I have ever listened to and I really enjoyed it!

[Jason Howell]

Originally posted by @Hunter Latta:

@Jason Howell Paying family is tricky. If you were in his shoes, what would you do? 

 I mean, I fully realize this is the kind of thing that is different for everyone... what makes sense to one person when crafting a deal with their family is different from another. I'm just curious to know where that landed in this case, to get a sense of the whole picture.

As for me, I don't know... It's a short term loan and it's giving them SOMETHING for their equity that is currently earning them nothing... 5-7%? But honestly, knowing my parents they'd probably offer it as a straight loan with no incentive. (I'd do it anyway)

[Mike Taravella]

The day before listening to this I was afraid of what steps to take to get involved in my first multifamily deal. After the episode I'm on here looking for SEC lawyers to get more acquainted with what I need to do to set up a PPM. Will never forget to vacuum the truck!

[William Gersitz]

Another great podcast

[Andrew C.]

As everyone has mentioned, i loved the vacuum the truck analogy. It is all about taking the steps in the right direction.  You cannot get overwhelmed with the big picture, have a visions and take the small steps toward it.

Bryce has a great motivational tone during this podcast. I think he should look into telling his story as a motivational speaker. I was wired after hearing his conversation. 

Thanks for another great podcast!

[Shane Ward]

My favorite podcast so far. I have a little bit different reason than most for loving it. I set out with the exact same goal as Bryce (to make 10k a month from MFP).  I live in the Bethlehem area and have been looking to get started in this area. To hear all the positives about it and that there are deals was really inspiring for me personally. I have not had much luck finding any deals yet but i am going to dig deeper now ("Vacuum the Truck") . My issue is really about finding deals more than the money. I am 50 years old and lost all my retirement money in the crash. I now have 30k in cash and 180k in equity in my PR. Now I need to scale quickly but dont have the years to rebuild if things go wrong. In other words, I am paralyzed by analysis. 

[Nick Tzenevrakis]

Another awesome Podcast. 

[Amanda Olvera]

I think I’ve listened to all of the BP podcasts and this one resonated with me most. As a teacher myself, I could identify with Bryce in so many ways. And I agree with other posters, he should consider motivational speaking! He is a brilliant communicator and has an inspiring and educational message!

I actually plan to use this with a mini-unit I’m planning for my HS juniors. Kids need more information about personal finance and FI at an early age. Wish someone had exposed me to some of these principles at 17 instead of 37!

Nicely done, BP. And from one teacher to another, well done, Mr. Stewart!

[Benjamin Bleasdale]

great episode. The concept of making $500/door is awesome as well. I was wanting to make $100. 

[Mark Hughes]

Love it!

[Stephen Kunen]

Where in Bethlehem are you buying Bryce? We live in Jersey and invest in Lehigh Valley. Very very very inspired by your story!

[Gualter Amarelo]

Great podcast, I've done many of the same techniques and at 32 am retired with $10k passive income $$$

[Riley Brown]

Loved this episode. Very inspiring, especially coming out of college with little money saved!

[Milad Awadallah]

Very happy to see that mental models are being overcome and creative solutions to barriers to entry are becoming systematized to help those who are a little weary have the same opportunities to be involved in the real estate world. 

[Mark Hughes]

Awesome. We always called it FIO in the hotel management industry...meaning Figure It Out one step at a time. You may be over sold by 30 rooms one night and have housekeepers calling off sick and guest complaining about parking and paying for internet. But you just FIO or vacuum the truck!

[Joseph M.]

I liked this episode a lot more than I expected when I read the description. Mostly because Bryce achieved financial independence /retirement via real estate and he was making a modest salary in a one income household .

Many times we hear about the couple each making six figures at their jobs .

I definitely think he is a lot smarter than he claims to be too as others have said .

[Mel Feller]

In regards to your question Shane, you are in a spot where a lot of us have been.  However, thake the time to get creative, like vacuuming the truck, but break your market down into price ranges and use the divide and conquer theory.  Dived and look at the price ranges and get to know about days on market and which agents specialize in what ranges.  Then do your own driving for dollars and utilice the things that get to know the market and then determine your income!  

You can determine the financial goals by taking the formula for every 50 leads you will have 20 motivated sellers and out of those 20 yow will make 5 offers and 1 should either be accepted or countered.

I hope this helps but keep listening to these creative podcasts.

[Shane Ward]

Thanks for the advice Mel. I am in that process now. What I'm struggling with as far as deals go is finding the ones I can BRRRR. I don't want to wait to take the saved income and equity to buy more property. I really want to scale as quickly as possible. I am putting the work in and I know there are deals that I haven't jumped on just because I'm looking to hard for the perfect deal.

[Marilyn L.]

I wish we had tools like this years ago. And the community too! It is possible if you plan it.

[Marilyn L.]

Originally posted by @Shane Ward:

Thanks for the advice Mel. I am in that process now. What I'm struggling with as far as deals go is finding the ones I can BRRRR. I don't want to wait to take the saved income and equity to buy more property. I really want to scale as quickly as possible. I am putting the work in and I know there are deals that I haven't jumped on just because I'm looking to hard for the perfect deal.

Patience is the key Shane. Also pushing through. Most people give up at the last few feet. I want to give this podcast a listen but I am still figuring out how. What I do know though is that if you're patient and work hard the reward is there.