How People Acquire Over 10 Properties a Year

Question

What in the world am I missing out on?  Look at this article: http://www.businessinsider.com/college-dropout-bui...

This man dropped out of college after his sophomore year (I'm starting my junior year) and began investing.  He purchased a 6 bedroom condo for $60,000!! How do you find that sort of deal.  Then the next year purchased two more.  The 3rd year he acquired 6 new properties, and the next year after that he purchased 15 more!

I can see myself owning 6 properties one day.. but that would be like 10 years from now.  I obviously am missing something here.  How does one find these deals?  How do you get a mortgage when you need down payments?  You have to have a place yourself to live in, and car payments, etc.  So how you save enough for a property beats me.

You guys have any general thoughts?  Anyone else feel the same?  I'm very amazed at stories where people purchase multiple properties a year.

Christopher Telles · Answer

I generally agree with your assessment. I would add though what he did do that separates him from the vast majority of others is he actually took action.

He obviously spent time learning what he needed to know, assembled a meager amount of capital (for real estate) and then went out and started taking numbers and kicking butt.

And then he repeated that over and over.

The majority of people fail simply because they never begin.

Linda Weygant · Answer

The article specifically lists out how he did this:

1.  Saved up $10,000 from years of summer jobs.

2.  Bought a 5 bedroom condo for $60,000, so presumably he got a mortgage on it.

3.  Lived in one bedroom, rented out the other 4, allowing him to essentially live rent free.  (House Hacking)

4.  Worked three jobs to replenish the bank account and save for the next property.

5.  Leveraged credit cards to add to the amount he needed to close on the next property.

6.  Continued to leverage credit cards for fix up and using rent profits to pay them down.

Doesn't look like anything was handed to this kid.  Looks like he worked his butt off to make this happen.  Since he had his agent license, I'm guessing he found the deals on the MLS - same as most people.  This guy didn't do anything unusual.  There's nothing in the article that leads me to believe that he did anything extraordinary other than save (not spend) $10,000 worth of summer job money.

Vincent Polisi · Answer

@Jacob DameYou don't need money to buy properties. Every deal I do is no money down and I've contracted on as much as $40MM in real estate in 8 weeks. You could have 10 properties this month with nothing but a few phone calls. I do it all the time. You can get cash flowing properties without ever spending dime one. You simply have to get educated, provide greater value and solve someone's problem. You never want cash in a deal. Equity is the enemy of investors because it's illiquid, creates a negative rate of return, and increases tax liability. At your age, instead of thinking about how you can acquire cash to bury into properties, I'd begin getting educating on how not to use cash at all because you could contract on your first home today with no more delay. I've got recorded calls I post for my members demonstrating how I've done it in as little as 25 minutes with one phone call to then create instant cash via down payments of no less than $10k, cash flow, and back end profit when the buyer refinances and the total cost of the deal is $10 for good and valuable consideration so I have a legal and binding contract, 25 minutes to several hours on the phone negotiating the deal with the seller and the monthly cost of Docusign or Rightsignature so I can get the docs signed electronically because I do these deals all over the U.S. and never see any home or meet anyone. Without any attempt at condescension, I'll give you the same advice I give my sons, "Think differently and don't follow the herd."If you don't want to do that and insist on putting money in deals, leverage OPM. Joint venture with someone with cash or credit and you locate the deals and let them stroke the dough.

John Cohen · Answer

@Jacob Dame I love the motivation. I started slow also but now focus on multifamily over 50 units. I started buying deeds and still do, but you can pick up 10 properties at 1 auction and get a great start.

Jacob Dame · Answer

Wow!! This is the most inspiring news I think I've ever received!! Thanks for all the replies, the first two just shocked me because I didn't know people could realistically do this.

Well then now I just have to learn I suppose.  Good thing I'm not in debt and am single.  I think I'll stay that way for a while haha.

Kurt Traynor · Answer

great post @Jacob Dame, my 13 year old is now reading it...   Thx👍🏻👍🏻

Tyler Flagg · Answer

Hey @Jacob Dame welcome to BP!

I completely understand how overwhelming the idea of it can be. I was the exact same way when I first started reading about real estate investing two years ago.

In the beginning, my goal was like 6 properties in 6 years, then the more I read it grew to 28 properties in 6 years...now I've got my eyes set on mid-sized apartment complexes in the future. The more you read, learn from the forums, and listen to BP podcasts, the more realistic the idea of buying numerous properties in 1 year will sound. I've still got a reaaalllly long way to go before I reach this goal myself, but I'm confident that it is well within my abilities.

Here's a few recommendations to get you started.

1) BP Podcast #132: How Brie Schmidt grew her real estate portfolio by 50 units in 1 year

2) 10X Rule by Grant Cardone

3) The Book on Investing in Real Estate with No (and low) Money Down by Brandon Turner

Best of luck!

Jacob Dame · Answer

Yeah I can't understand how you get so many so quick.  I'm glad to hear it goes faster after your first property.  I know they 'explained' how he did it.  My retort would be: why aren't you worth 4 million dollars in like 4 years?

Anthony Gayden · Answer

Being new, I can see how it would be hard to imagine scaling that large that fast. Believe me though, once you start, it gets easier and easier.

How People Acquire Over 10 Properties a Year

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