Don’t always do what the “experts” say.
I didn’t follow the “model”. I didn’t buy with 20% down each time. I didn’t CASH FLOW each house/unit. No, I have treated my real estate career like a 401k; an IRA; a retirement account. If you are negative $100, $200, even $500 cash flow a few months, or even a year, is that a bad thing? Well, maybe. Depending on your history of money management. But if you can do it, and not let it become a problem, and TREAT IT LIKE A 401K/RETIREMENT ACCOUNT, you can turn all of your real estate purchases into a mini real estate empire. Or a MEGA REAL ESTATE EMPIRE!
My plan isn’t a get rich fast plan, it’s a get rich slow plan. Let me skip to the punch line. I now have $1.5 MILLION in real estate equity. That’s just the EQUITY! My total real estate owned value is at $3.3 million. That means I am almost half way there to having everything paid off. Oh, and get this, I bring in about $20,000 a month in rental income.
Bought my first place in 2000. Paid it off last year.
Bought my last purchase in July of 2018, it already has $130k in equity, because I learned how to leverage and make SMART money decisions.
It can be done. But don’t let the experts deter you, or make you feel stupid if you don’t follow their model. Just make sure you have good people around you. A Realtor who knows what they are doing (maybe owns a place or two… or 10) a good/creative lender, a financial planner, and a good accountant.