- Profit Strategy: Rehab & hold
- Number of Units: 8
- Personal Money Invested: $80k
- Amount Earned: $859 monthly cash flow
- Prior Experience: A community outreach program coordinator by trade, Jessie had no prior experience in small apartments aside from previously living in a triplex in which he and his wife resided for 10 years in Boston
Jessie has a stable job. But like most people, it is an 8 to 5 — work, home, then back to work. His occupation provides a consistent income that covers his bills and allows him to help family members but doesn’t provide much extra for “fun,” such as vacations.
As a child, he watched his mom struggle to make ends meet. He knows he wants something different for himself and his family.
He grew up in Louisiana. He lived many years in Oklahoma, both of which were much more affordable areas than his current residence in Rhode Island. When he initially left the south, he moved to Massachusetts and learned quickly that more money was needed to live there.
His retirement savings was less than he desired. He knew this needed to be addressed. One alternative was to work a second job. That would take him away from his family even more than his 8 to 5 job. This wasn’t an appealing option. He craved a solution.
Over the years, his mother purchased rental properties in the south, and he even occasionally invested with her. The idea of expanding his “portfolio” grew. In addition to providing an extra stream of income and fattening his retirement fund, he knew real estate also provided some tax benefits. He explains, “it sounded like a win-win opportunity.”
His ultimate dream is to own a few more properties. He’d likely manage them himself as he didn’t have the best experience with his last management company. Besides, he’s passionate about real estate. He wants the opportunity to interact with residents, “get to know their story, and help provide safer housing for them.” He continues, “I feel that would be a real accomplishment. I’d like to know that I helped others with my own two hands. I love that feeling. And at the same time, knowing that I’m making money.”
His most significant obstacles were financing the property (including the source for the down payment) and learning about non-conventional alternatives like lease-option agreements with sellers. He also needed to discover how to find partners.
Jessie acknowledged that he couldn’t accomplish his goals alone. He borrowed money from his retirement fund to purchase the property for his first deal — an 8-plex. He realized that this model wouldn’t be sustainable for acquiring additional properties. He concluded, “I knew I needed someone with far more experience and knowledge to provide me with the tools to help build my real estate portfolio. I did the typical things that people do. I joined the local Real Estate Investors Association. Unfortunately, most of these people were in the same situation I was in.” Jessie realized this resource wouldn’t provide what he needed, so he looked for a better mentor. That’s when he found Lance’s Bootcamp.
Jessie loves learning about real estate investing — it thrills him. And the idea of helping other people in the process resonates with his ideals. Indeed, the financial benefits are also of value. He’s been able to take some trips with his wife, and he’s looking at buying a new car. He has disposable income that was out of reach before. “The properties have helped shape our future financial situation. I’m excited about that.”
Looking at what has changed already and the potential for the future, he’s thrilled that this business will allow him to “expand our family and be able to set aside funds for college. Knowing that ‘mailbox money’ will be there is very inspiring.”
A bonus for Jessie is that his wife is also inspired to invest in real estate. This endeavor has made them even closer.
Jessie discovered that his communication skills benefit him in this business. “Being personable with people is very important. Knowing how to talk with real estate agents and sellers is valuable. I had the people skills, and Lance’s training gave me the scripts and the knowledge. That has led to some exciting opportunities.”
What worked against him in the beginning, was his openness. He’d heard from other investors that real estate investing can be “pretty brutal, backstabbing, cutthroat.” He expands, “I haven’t seen cutthroat. But on one deal, the owner mentioned he would be willing to do a ‘gentlemen’s agreement’ on two properties he owned that I couldn’t purchase right away. He then sold those properties to someone else, even though he had verbally given me the first option to buy. I think this happened because I was open and honest about the fact that I was new to investing. This may have worked against me.”
However, he’s been surprised at how quickly he has learned and implemented Lance’s training. He says, “it works, and it isn’t as hard as I expected. That exhilarates me.”
When Jessie started, his expectations were much more conservative. He’s changed his perspective, “I’ve grown to know that it is doable to own a 24- or 36-unit property versus only investing in triplexes and quads. It is possible. The process has opened my eyes to the potential and accessibility of larger properties.”
He wisely suggests, “invest in training and education. Even though I’ve mentioned small apartment investing is easier to learn than I expected, it is still challenging. People can sense when you are unsure of what you are doing. You want to have an intelligent conversation and convey that you are knowledgeable. That will make them far more interested in working with you.”
His second suggestion is to take a chance. “The training helps keep you from losing money. You will be able to identify good deals. Believe in the training and what the coaches and trainers tell you.”
Invest. In. Yourself. Get. Training.