3 to 44 units in less than a years time at 22 years old.

[Jared Saunders]

I've recently felt very compelled to start contributing to BP more, so here is my follow up from my last post I put out 10 months ago titled "Quit my job at 21 years old to become a real estate investor". 

I would like to start out by saying how grateful and appreciative I am that a community like BP exists for all types of RE entrepreneurs! Frankly without BP I wouldn't be where I am today and surely not in such a short time frame. To @Brandon Turner and @Joshua Dorkin I thank you and will forever spread the word of BP to all investors large and small!

After acquiring , renovating , and stabilizing the 11 unit deal I last wrote about my company has seen TREMENDOUS growth in a very short time. Now holding 44 rental units with a value currently estimated at $1.5M and monthly cash flow exceeding $14k. Also with an average cash on cash ROI of 87% !!! This has all came about with 1 part strategy/hard work, 1 part pure luck , 1 part blessings from a higher power.

I was fortunate enough to be connected with the right people through word of mouth referrals that have directly been related to a deal or indirectly allowed me to meet someone else to acquire a deal. Thinking back on it now, I see it in my mind as a chain of events meeting one person through another and there on leading to deals. Surprisingly enough my first RE related relationship was with a self managing realtor who helped me find my first deal, and had referred me to a local account purely for tax advice. Fast forward 10 months , the accountant has actually gotten me more deals than my realtor , a total of 17 units to be exact! (Partially due to our focus being more on off market leads apposed to MLS leads) That just goes to show you the power of telling everyone you meet your goals and ambitions!

The book "The ONE Thing" talks a lot about purpose before priority , priority leading to success. I believe that couldn't be more true across the board but specifically with word of mouth referrals. That by explaining to people your purpose , people genuinely want to help you out. Especially if your purpose has something to do with helping other people out, it just becomes a chain reaction of people helping people help people. In my case I believe my purpose to be #1 bring a luxury apartment quality of living to my community that no other landlord has even attempted in our area and that no tenant has ever gotten to experience locally! #2 is to MAKE OTHER PEOPLE MORE FINANCIALLY FREE , "other people" being our private money investors. Not only paying them above average returns (15% annually w/ 3 yr hold) but also teaching them about financial freedom looking to create more streams of income apposed to piles of money ("Rich Dad , Poor Dad") 

In terms of financing , I was blessed enough to connect with my older brothers high school friend whom I knew was an entrepreneur for quite some time. This individual owned a lawn care business and 4 single family rental homes prior to partnering with me. This individual decided to believe in me before almost anyone else and fund more than 70% of all the capital we've needed to raise thus far! He also has let me have almost 100% autonomy of strategy and decision making throughout everything. The very first BP podcast I ever stumbled across on youtube by searching "how to invest in real estate" was the podcast titled "Investing with no and low money down" during that podcast I realized the power of partnerships! Another reason that I believe my purpose to help other people become more financially free is my partners example. Before meeting me my partner owned 4 houses that he owned outright and had roughly $150,000 into these houses only cash flowing $2,000 monthly. His first deal with me he used $8,600 capital and his portion of the cash flow equated to $1,500 monthly! That sure helped put things into perspective for him ;) 

My partner has been able to connect me with countless different construction crew members , so many in fact we started our own General Contracting business! We now have 7 full time employees and currently have 3 active projects under renovation! We decided to do this based on a construction loan structure our bank allows us to use. Essentially the most flexible 203k loan I've ever heard of. What we do is order a subject 2 aka ARV appraisal and the bank finances 80% of that value plus allowing you to hold your 20% down payment in an escrow fund. Essentially financing almost 100% of the deal! Example: We purchased a 3 unit building for $38,000 that was in need of pretty significant work. We got a subject 2 appraisal for $60,000 , the bank had us put $14,000 down and we immediately had $20,000 in construction escrow account! With only having a loan balance of $44,000. Only stipulation , construction funds could only be disbursed to licensed, bonded , and insured general contractors. Thus jMax Construction Masters, LLC. was born! Just to clarify , our GC business only does work for our holding business (jMax Property Masters, LLC) Just like our property management business(jMax Acquisition Masters, LLC.) only does business with our holdings company

Even though he is mostly as silent partner , his existing reputation has earned me instant respect with a lot of high level people in the community. The funny part is my partner didn't even know my age until we had more than 20 units! He commented saying he would have never went into a business with a 21 yr old 50/50 partnership but he was impressed at how far ahead of the game I was compared to even the most successful investors locally. 

I could write all night long about what all has transpired thus far but I'll close with giving a few major tips for success. Invest the time listening to BP podcasts! 90% of what I've learned  has been just from the podcast with just a little back research done on strategies mentioned within them. Pair the information learned on podcasts with Ken McElroys ABC's to real estate investing specifically with the due diligence portion and you are bound for success! Lastly but not least, BP PRO MEMBERSHIP!!!!!!! The BP rental property calculator and Brandon's step by step webinar on how to analyze! This exact process has been used on ALL of our deals thus far! Our last deal, a 24 unit complex for $400,000 plus $100,000 construction loan from the bank. All from resources that a BP pro membership grants you!

I would like to finish by saying I know I am not the best at grammar and for that I apologize! I guess not finishing high school is now affecting my blogging skillz! LOL but oh well thanks to BP and some good people skills I believe I can still be successful! Welp , gotta get off here now to go put in some time on my 90 hour real estate online schooling in order to get my license! Hopefully you all will be seeing jMax Realty Masters, LLC. come alive soon enough!

Peace!!!

Jared Saunders