I'm a turtle! How about you?

[Pyrrha Rivers]

The Turtle Method of Real Estate Investing

As I read yet one more article about the cash vs. leveraged investing, I responded to myself in this way. My method is to buy all cash, get the property working and then refinance it. I am ultra conservative by nature, slow and steady is my natural and preferred pace for all things. So I identify well with the turtle. No Turtle and the Hare comparison in this self identification. It is very personal and has nothing to do with how others prefer to view themselves and approach their investing

I started my investing with a HELOC, but only after paying off my personal residence.

Purchased Rental #1 all cash. Rehab and holding was long and expensive but NOT in any way painful or stressful.

I did not like the utility bills or the vacant property insurance my mentor recommended I purchase, but I could easily afford those expenses. Just didn’t enjoy them.

I found this approach comfortable and less “risky” in terms of my sanity and peace of mind which I value greatly.

Here comes leverage!

Rental #1 took a very long time to start working.

Purchased in August, minor rehab completed late October but tenant did not move in until mid March. I did say it took a long time. Not fun but not stressful.

6 months after purchase at $71K, it appraised at $90K and I requested a refinance loan for $63K.

The plan now is to take the loan cash along with part of the HELOC, which I have brought to a zero balance and pay cash for Rental #2.

Knowing what I know now thanks to the lessons learned from Rental #1, I expect to do better with #2. I expect to buy a better deal and because I have some people and systems in place, I expect #2 to start working much faster than #1 did.

For me, peace of mind is a valuable asset I guard closely and hold more precious than any

financial gain.

I have a great W-2 job I love, so today I am happy to follow what I have dubbed “The Turtle

Method”. I have intentionally set a limit for myself of two property purchases per year for five

In year 1, I only bought 1 property, so in theory I’m behind, I didn’t meet my goal and some may even say I failed. However, I, The Turtle, feel quite accomplished! Why do I feel accomplished after failing to reach my goal the first year?

Well, I did get started! That’s an accomplishment.

I went through the struggle with #1 in a stress free way, which left me feeling “schooled” but not worn out.

I have plenty of good energy along with my very valuable schooling to work on #2 and #3 this year because that is my focus. I know that before the end of year 5 I will I will pick up an extra one or two and catch up on the one I missed in year 1 and may even surpass my initial goal.

Like a good Turtle, I’m in this for the long haul, so I have to conserve my energy and most

importantly, my sanity and peace of mind. There is much to be said in favor of slow and steady.

What creature in nature do you identify with in your investing?

Are you lucky enough to be the Elephant? Able to remember every formula, every detail of every conversation and every deal?

Are you the Squirrell? One who saves and stores all treasures, be it money, information,

contacts, lessons, etc.?

Are you a fish? One who jumped into investing very easily, feel very comfortable and in your element in all things Real Estate?

Please share with me what wonderful creature in nature you identify with and why.

Happy investing.