How has your life changed since your 1st investment?

Question

I would like to know how others investors life have changed since their first investment, did it meet expectations?

I know that everyone loves a feel good story but investing is not easy and I have cried many times during my investment career, I have laughed to the bank too thou. Cried during flips when contractors cheated me out of money, stood shocked about what I have seen some tenants do in their own homes. Lost sleep in my first eviction process thinking could another human be such an a$$ to another.

I'm current relaxing in sunny Australia as I write this (funny enough assisting my parents move into their new home) this is my second year I would consider myself a FULL TIME investor. I manage 11 doors in Cleveland, OHIO and have one contractor I can call to assist in repairs which makes my life a little easier. My Australia properties are managed by a property management company, the tenant quality is completely different when your properties are worth $300k compared to $60K

Thou it sounds golden, I'm constantly in battle with one tenant who always pays late, I had to do one eviction this year, had a tenant walk out of her property so she didn't have to pay rent. When I'm not battling tenants I'm trying to reduce overhead, was I shocked when I got a huge water bill for my apartment. When I see the books I see all this money coming in BUT it goes straight away to another project or repairs. Am I the only one on this boat? I would not say my investments are poor or I'm losing money it's just not all glitz and glamour like everyone thinks and reads about. Investing is HARD WORK.

Kurt K. · Answer

I guess you could call this my first investment. My life has changed this year by becoming a new property owner this year. To make a long story short, my father passed in January this year with 60 units which he was self-managing. I have 3 siblings and the properties were distributed evenly from his Living Trust and didn't have to go through probate. Luckily, they were free and clear of any mortgages.

I acquired the properties in March, but unfortunately I had some deferred maintenance. I rehabbed about 8 units (flooring, paint, appliances, etc) and spent about $75k including 4 new roofs. I'm hoping to get it back within a year and a half but thinking long term. I was able to up the rent in all of them.

Even though I have a PM managing the properties, I am in AZ and the properties are in IN. The biggest challenge was working with contractors long distance via before and after pictures. Luckily I was referred to contractors that did an excellent job and could be trusted.

Finally, have all of my 14 units rented as of this month. We evicted 10 inherited tenants and replaced with good, screened tenants and will be cash flowing about $7k / month minus PM fees, maintenance, taxes and insurance.

At this point I'm not sure I want to reinvest but am continuing to stabilize the properties and thinking long-term. Build up my reserve cash for now and manage the manager (PM). When I first posted this event a number of investors said to sell, but I'm glad I didn't. I'm 61 and have 4 more years until I retire and hoping this will be a supplement to my retirement.

Looking forward to 2017, its been a hell of a year.

Roshni Patel · Answer

I think that it changed my life for the better to be honest. I see things in a different way and I feel like I am  happy  with what I am doing. I mean, it's annoying as hell to say I am  busy and to explain my situation  to friends and etc. But at the same time, I feel like it's all worth it because I am building myself for my future if that makes sense and that's what keeps me going.

Aaron Howell · Answer

I would say mine has gotten more complex with a lot of moving parts.  Seems like I have less disposable income but I know that's not true.... I'm just planning ahead with the cash I do have for the next deal and I have rental separated from personal income.

My thinking has changed from $1,000s to $10,000s now that I've started investing (Bigger Horizons)

I agree it is hard sometimes but you've gotta think ahead in 10 years how life will be.  Most of your peers are living for the weekend.  The headaches you deal with when a tenant misbehaves are far less than your friends will be dealing with later on in life because they haven't planned for the future.

Zane Belden · Answer

I think the biggest take away for me from REI is learning how the rich (in time as much as money) get richer and the not so rich keep trading hours of their life for dollars.  You quickly realize how the currency we all really want is more time (but smart/prudent use of money buys that time).  This is where I started to truly understand "passive income" and making money work of you.

Also like @Joshua D. mentions, you generally start to develop a belief system in yourself that whatever the goal or task you set you mind to, you can accomplish.  If you have just a little, tiny bit of intelligence and the all more important work ethic, most goals aren't nearly as hard as they seem.

Lastly, if you're financially successful in REI (or whatever), you start to taste how your success gives you the ability to help others, and that's what its really about!

Joshua D. · Answer

@Federico Gutierrez

I was thinking about this the other day... I feel I am much more confident as a person knowing that I flipped several houses; managed rehab, and had the patience to sell. All the things that I did during this made me feel adult like.  Jumping out and doing this on my own, my own motivation and ideas, it was a growing experience for me.  For some reason owning rentals did not have that same effect.

But less importantly we would have about half a million less in net worth.

Federico Gutierrez · Answer

@Aaron thanks for your input

I agree that's why I keep going. but I have my college, I also consultant as an engineer he knows me and we both make good money he asks why I need more properties. I can't answer him at times.

I think I have everything in a system but all that extra income than becomes another task to reduce it from uncle Sam who wants his share. not like his answering tenant phone calls!

How has your life changed since your 1st investment?

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