My first success

[Bryan Bagge]

My first experience is a success in progress as circumstances around it continue to change.

My first real estate purchase was a four family home in Newport, Rhode Island. I was fortunate to have my parents with me to co-invest as it was beneficial for all of us to be involved. 

In the past year I have learned a lot about what it takes to be a landlord. I have had great tenants, awful tenants and few with only minor complaints. Newport is a great area for a landlord because we are able to provide housing for the nearby Naval base and with that come generally accountable, respectable and reliable tenants. 

I have had the experience of being called at midnight because the heat is not working. I have had to call out of work to deal with leaks in my basement. I have had to develop payment plans with a tenant with unexpected medical expenses that came before rent. I have had to evict a tenant for not paying rent, and refusing any cooperation from us. 

That tenant was just evicted last week, and now my dedication is being tested as I need to clean/ fix up the 3-bedroom unit in addition to my working two jobs and trying to be social at 23 years old. I can't afford any delay because every day it is empty is potential money lost. 

We purchased the home with all units initially occupied. Our screening of new tenants has had great success, our problems came from the ones we had inherited with the purchase of the home. Moving forward, I am comfortable with our decision making as it has so far lead to well qualified tenants that care for our property as much as we do. 

All of these experiences, and what lies in the future, is a success to me because good or bad it was a learning experience. I continue to read, listen to the BP podcast and have just started to engage in forums to learn from other investors. I have personal experience to apply to lessons I learn along the way and am more well equipped for my future real estate goals which include more rental properties. I am eager to start investing in more properties soon. 

[Bryan Bagge]

Originally posted by @Chris Reitzel:

Very cool!

Do you feel as if your experience being hands on has been one of the biggest learning platforms for you since you began investing? Or has it really just helped round you out more than anything?

I have not really made the commitment to a first purchase yet, but I feel like perhaps one of the reasons why is that I just inherently feel as if I have more to learn - despite knowing that some of it is something I am only going to really learn by taking that leap.

 I am new, my advice should be taken lightly.

However, I can say that it really depends on your learning style and how you can adapt. I tend to over analyze and plan so far ahead that I never actually take step one, and by the time I do all other steps have changed.

I learn better under pressure, in the moment. I can adapt and react because I have at least a base knowledge, and excellent resources around me to fall back on when I can't make a confident decision. Throughout my ownership of this property I have learned far more than I did when I got started.

Write down everything. What problems may come up, how you can fix those problems, and is it worth your time to do so. If you can answer those questions with confidence, I say go for it and begin your journey. If you are determined to make it happen, you will be able to adapt to problems along the way.

The podcast has taught me that not everyone knows much when they first get started. Even these millionaires on here wake up in the morning and put their pants on one leg at a time like you and me, the only difference is that they took the leap and learned from their mistakes.

Have goals and don't be afraid to challenge yourself.