Five Years to Freedom: The Top 10 Lessons I Learned On My Journey

In January of 2015 I was 33 years old working as the COO of a local mid-size business in Raleigh, NC. Having finished my MBA a few years earlier my formal education was behind me, I had a young family and I had a six figure job. But, I wasn't happy.

Like so many of us on Bigger Pockets my inner entrepreneur was itching to be unleashed. But how could I start my own business now? I was days away from my second child being born. What if I failed? How could I give up a strong W2 job with four mouths to feed, a mortgage and all of life's surprises still ahead of me?  

Five years later I'm self employed as a full time real estate investor; I'm in control of my schedule, my career and I'm living a more fulfilling life with my family than I could have ever hoped for. 

If you're looking for a 'get rich quick' story, this isn't it. I'll admit, I strategically started with a leg up. I had a job and I had spent a few years getting on stable footing in the corporate world; I wasn't starting from scratch but I was starting where so many of us do: a 50+ hour a week hamster wheel that would keep me caged for another 30 years if I didn't make a change.

But this isn't about me; it's about you. Here's the great news: no matter where you are in life right now, you can become financially free through the world of real estate. You've already found Bigger Pockets so you're on your way! 

What I want to share is my REAL experience with practical tips I learned along the way. Here are the top 10 things I've learned over the past five years that led me to financial freedom through real estate investing:

1.) Be Humble and Learn

I don't care if you're a brain surgeon or if you're a Fortune 100 CEO, you do not enter a new niche and become an expert on day one (or day 1,000 for that matter). There are always MANY people that know more than you, there always will be, so start by listening and learning. On day one of your REI journey you should research your local REIA, read books (J Scott's books are my jam!), read BP blogs, listen to podcasts and look for the leaders in your market. Be a sponge. 

2.) Network and Find A Mentor

Once you've done your research put yourself out there. I started my company by building the worlds worst website on my couch on New Years Day and then by ordering some business cards. That's it. Then I got out there. The most valuable experiences are learned from interaction with others, NOT behind a computer screen. Go to every meetup you can find. Go early. Go prepared. Professional business cards are easy to purchase, buy some and then begin handing them out. 

Look for the leaders in your local meetups and follow up with them. Meet with as many as you can and, here is the key, offer to help them! The reality is that successful investors have the most education to offer but they have the least time to offer it. If you want to learn from them then you need to bring something to the table. How do you do that if you're just getting started? Drive for dollars and send them leads. Complete market research and send it to them free of charge. Offer to help on their projects, maybe an extra set of hands on demo day. Heck, bring them coffee and ask if they can walk a project with you. You can pay it forward even when you have little to offer, and by doing so you'll not only get an education but you'll build relationships. I met several experienced investors and found one who was willing to invest his time in me (he is still my mentor and close friend to this day and we've both made each other money over the years), it made all the difference in the world.

3.) Take Action 

Your first deal is going to be a little scary but here's the thing: you aren't going to swim without getting into the water. You've got to take that next step, you're ready, trust me.  

I'll never forget my first deal. I started looking for houses by walking my dog around different neighborhoods in Raleigh. I'd write down addresses of houses that looked run down and I'd write to the owners. I'd call anyone that had a For Rent sign in their yard and ask if they wanted to sell instead. 

It turned out that I reached a nice lady who had a vacant property for rent and she was willing to sell it. I had very little knowledge of what to do next but, and this is important, real estate is NOT rocket science. This is a people business and if you can genuinely learn the people skills necessary to succeed then you can piece the rest together. I put the house under contract, marketed to buyers, had a few fall through, rushed to setup an equity line on my house (yes, I was going to risk my own house with babies at home because I believed in this deal) and THEN on the second to last day before I was going to close on it using all of the equity I could scrounge together, I found a cash buyer. I made over $50k on that first deal, learned a ton and I was off and running! You may not make $50k on your first deal. You may not make $5k, but you WILL learn through taking action. Believe in yourself!

4.) Be Patient and Find Your Niche

Two important things I learned early on, first: financial freedom is a marathon not a sprint. And second: find your lane, you cannot be everything to everyone. 

What do I mean? To be financially free to do what you want when you want to do it using real estate as your vehicle, you need two things: capital and income producing assets. There are MANY ways to obtain these two things and those avenues are covered well on BP. Find what you enjoy doing and be specific in where and how you do it. 

For me I knew I wanted to build a single family rental portfolio that gave me passive income to be my "salary" and gave me appreciating assets to be my retirement. I knew that to obtain those assets I needed capital. So, my avenue was to wholesale and flip houses then use that money to buy rental properties. But remember...

Financial Freedom is a Marathon Not a Sprint: Here's my next tip, get a job or keep the job you have, even if you know it's not what you want to do forever. Hold that job as long as you can. And then hold it 12 months longer. I know, I know...this is not what you wanted to hear. It's not sexy. It's not fun. But to be free faster you're going to be working two jobs for a while; accept it. Live off of your day job. Work your butt off. Build your real estate business and squirrel away every penny you can until you can cover your W2 income with your passive income. Then, just to be safe, keep your job for one more year and build a nest egg. This is what I did. It took me five long years but it is the single most important way I got to the position where I could walk away and be my own boss.

Find Your Lane: I decided to wholesale and flip houses to build capital to then buy single family rental properties. Besides deciding what my niche would be I also learned what my market would be. I believe in diving deep into a narrow hole. Meaning, pick a market and become an expert in that market. Don't try and invest in 10 different metros because you will be an expert in none. Study your market every single day. What's coming on the market? What's going off the market? Who are the players? What does a good deal look like? I switched between several markets my first three years of investing. I had some successes but I also lost by buying a house on the wrong street in the wrong area because I was rushing and didn't know my market. To date this was the only house I ever lost money on, but I licked my wounds and unloaded the house as quickly as I could. 

5.) Learn and Build Your Team

As you gain experience pay attention to what your strengths are and stick to them. Then build a team to support your weaknesses. I learned that I was great at finding deals, organizing processes and managing the administrative side of the business. After trying to clean out crawl spaces and narrowly averting disaster through things like blown plumbing lines and exposed live wiring I learned the hands on part of renovations were not my strong suit. 

Also, specialize! You can't be everything and you will waste money trying to save money if you don't self analyze. Hire experts and let them efficiently do their work; it's the only way to succeed and grow. This is a trial and error process. I've had contractors steal, lie, leave, disappear...I've seen it all. 

Don't be afraid to make a change if you need to but here's a tip: ALWAYS treat your contractors with respect, they are professionals and they are your partners. And, ALWAYS pay your team on time. No matter how, no matter where, pay them first and pay them on time. This is how you build trust. 

6.) Scale

Once you have your team in place you can then begin to scale. My advice: understand what scaling looks like to you; don't feel pressured to be something you're not. I did three deals my first year. If I had tried to do 20 my second year I'd have failed. My goal was, and is, to double my business each year however if I'm not ready for that I pivot. Push to succeed. Push your limits. Work your butt off. But be smart and don't be pressured to be something you're not. Slow and steady wins the race.

7.) Balance Your Portfolio

Markets are cyclical. If you lived through 2008 or are investing in 2020 you know this. Don't ever become over leveraged but also don't ever become scared to spend that money under your pillow; be balanced. 

This looks different for each of us but here is my suggestion: determine what capital you need to generate to run and grow your business and save until you reach that number. Then, begin investing your gains intelligently. What does this mean? Wholesale, flip, trade notes, whatever...but build capital first. Having capital will speed the roll of your growth and will give you leverage to borrow if needed. Once you sock away what you feel you need to operate then start investing in assets that will build wealth through appreciation and will build passive income. 

I spent three years building capital. Then, because I had capital lenders would work with me. (Tip: lenders would also work with me because I still had a W2 job so keep the timing in mind.) I then spent two years flipping AND buying rentals. I kept balanced. I didn't overextend and leverage to the hilt and I didn't sit on money, I kept everything in play but kept it balanced.

8.) Pay Down Debt

Before you quit your day job I highly suggest paying down your debt. Let's be clear though: there is a big difference between personal debt and leveraged business debt. Stay at your job until you can pay off your credit cards, your student debt, your car and, if possible, your house. 

If you can pay off your debt it will make all the difference in the world. Yes, this takes longer and will require you to keep working two jobs, one of which you may hate, but I promise you, it'll pay off. At the same time, leverage debt where you can, while you can. Rates are low right now. If you can take out a HELOC I strongly encourage it. If you can bundle some rentals into a commercial loan at a low rate and have it paid through your rental income, do it. Now's your chance to get your finances in order before you're viewed by lenders as self employed so take advantage! Before I left my job I paid off the items above and bundled 12 of my rentals into a commercial loan. I cannot tell you how much better I sleep at night as a result! 

9.) Give Back

Remember when you were the newbie looking for a mentor? Well, first, keep that mentor because you're always going to have more to learn and because when you're on your own you're going to need that peer network. But also, now's your chance to give back. I love real estate. I love talking about it, thinking about it, reading about it, I can't get enough. I particularly love that there are a million ways to partner with others in this business. I believe that you should give back selflessly because a rising tide raises all ships but also because by doing so you'll uncover so many new opportunities and rewarding relationships. Karma baby, it's real! 

10.) LIVE!

If you've done all of the above you might be at the point where you're ready to make the leap. When you're there, don't be afraid! It's a scary proposition but here's the deal: you can always go find another boring W2 job if you have to, I promise. You won't ever know if you can make it though until you jump! I found that making the change was incredibly refreshing. Was I scared? Heck yes! But I was ALIVE! The best way I can describe the feeling was like the eye opening tingle of jumping into a bucket of ice water. I was motivated, I was hungry, I was free! In all honesty it took me three months of working at a break neck panic pace to ensure my survival and then things slowed into a rhythm. I still work just as hard, maybe harder, when I need to but I also have a better balance, an inner calm and a satisfaction that I'm doing what I was meant to do. 

I promise, freedom through real estate is not a myth preached by gurus. It's real. You can do it too! 

-Be deliberate and thoughtful

-Be patient but planned

-Believe in yourself and take the plunge!

I'll leave you with this: "The only way to do great work is to love what you do." -Steve Jobs

Please reach out if I can ever help in any way!