Did you really start out on a shoestring?

Question

Did anyone here legitimately start on a shoe string and have major success? I've read some interesting posts about individual deals, but what about the longer view? I know gurus like to hype stories like this (and I always wonder if it's pure sales fiction complete with paid actors) but I'd like to think it actually happens in real life to real people.

I'm genuinely curious.

~Jeff

I'm genuinely curious.

~Jeff

Christopher Brainard · Answer

Well, back in 1999, I moved across the country (from Ohio to Texas) to move in with a girl I was "dating" online for about a year. You can heckle me for this all you want, I realize now what a dumb idea/decision this was, but I didn't know any better at the time. That fell apart in two or three weeks. I was in a new city, no job, no place to live, just had my car and a few hundred bucks to my name, but decided that I was going to stay and make the best out of the situation.

Found a crappy job working for a temp service 16+ hours a day, slept in the park for a bit, found a better job, rented an apartment. Got interested in real estate, made my first purchase about a year later. Did a couple flips that didn't result in much capital, but I learned a lot along the way. Got my RE license, bought a few more, did much better. Ended up living in Europe for a few years (due to my W2 job) and moved to California when I came back to the states in 2010. Did a couple of live in flips in California and made a killing. I gave up my W2 job in January of 2014 and officially entered 'retirement' at 35.

I'm on Chapter 3 of my life now. Doing nothing all day is boring, so I took my profits from California and moved to Las Vegas. I've purchased 5 rental properties so far and I'm looking to acquire 15 or so more in the next year and a half. My life doesn't spin like a "guru" story, but I'm young, comfortable, and free to do whatever I want for the rest of my life.

-Christopher

Mark Gallagher · Answer

@Jeff G.

When I started investing in 2008, I had no money, and no clue what I was doing (in hindsight). I made an offer on basically one of the first houses I looked at. No one wanted it. Not even experienced investors. Somehow I decided I wanted it. I made an offer with no idea how I would pay for it. $1000 for my deposit basically depleted every dollar I had to my name. I was renting a room for $450 a month. Piles of debt. I managed to find a HML to fund the deal. I got a bid from a contractor and it was double my rehab budget. Decided to do most of the work myself. I got my first draw and ended up using some of the money to pay my living expenses. I managed to finish the project enough to refinance 6 months later. Thankfully it was a small loan balance so my DTI made it work somehow. I was paying $750 a month and had rented 2 rooms out for $1000 a month. I was living the dream. Fast forward 7 years and I've sold 900+ properties as a Realtor and have done flips, wholesales, and buy and hold.

Anthony Gayden · Answer

There are plenty of successful investors out there who started out with little money. Just listening to the podcast, there are dozens of stories of just that.

I will readily admit that I am not one of them, but that is 100% by choice. I chose to wait to start investing until:

1. I knew enough about what I was doing that I would be able to avoid many of the major mistakes and make money

2. I actually had all of my debts paid off including credit cards, student loans, car payments, etc.

3. I had saved up 6 months of emergency reserves

4. I had saved up enough money to be able to invest in the niche that I wanted to invest (small multifamily), in the geographic locations that I prefer (Tucson and Phoenix)

Account Closed · Answer

Being an immigrant coming to this country, I guess it is.  However, there's a short cut to get there.  As I learned......How do you define a successful man?  A man who makes more money than his wife can spend.  How do you define a successful woman?  A woman who finds such man.

I was born sideways as my parents told me.  So I found a wife who made more money than I can spend.  Therefore, I have the most precious commodity in the world.  That is time.  If you don't call that a success, I don't know what is.

Kidding aside, what is your definition of success?

Nicole H. · Answer

started on 14k - brought 4properties in 13- sold two to make enough to get one Reno budget- sold that last year for highest price achieved in area  -brought two more- doing another Reno now- - in two years made enough to live off on rents and over 300k in equity- all from 14k and a tone of hard work, picking up old furniture off the road and turning into "rehab addict" like houses!  It's so able to be done if you have a eye for detail and able to live on no sleep and a heck of a lot of caffeine!  I love houses

Jeff G. · Answer

And I thought I had bad luck with women! No stone throwing here. :)

Well, @Christopher Brainard my definition of success is to have enough income to be able to be geographically agnostic and to be able to devote my time to enriching myself in ways that have little to do with money.

~Jeff

Did you really start out on a shoestring?

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