Just imagine the possibilities of having your own investment property in a top school district or as California real estate investors where rents can go for over $2,000 per month! If you have a little cash to buy and rehab a house, it's not just possible but also easy. Here are John N.'s three simple steps to complete this process on his own.
Find an affordable house in the right school district to purchase, or find an available rental property that is in good condition and locate it near you so you don't need to worry about long commutes.
Fix up or improve the property and turn it into a rental property when you have a buyer. Or try to get your tenants to buy the house from you (yes, this is possible).
If you decide to sell your investment property, take the cash flow from rent and use it to find another rental property within your desired school district.
Given John’s experience, we asked him a few questions in this month’s investor profile. Here is what John had to say about his real estate investing experience in California and as a California real estate investor.
1. Tell us about your real estate background – why you started investing in real estate, how long you’ve been doing it, and how it fits your lifestyle.
I've been investing in real estate for over 15 years, which has become a large part of my life. When I first started I wasn't sure what to expect. I was looking for something that was going to net me a good return on investment and finance my living expenses.
2. How did you get started? Did you have any mentors? Who were they, and how did they help you?
My first deal happened by chance when a bank was doing a foreclosure sale on a duplex that I ended up purchasing with no money down and making a $3K profit in about 6 weeks. The property was rented out for $900 per unit. I did everything myself except for some minor rehab work that only cost me about $200. With that first deal, it was no longer a hobby and it became a part of my lifestyle.
I have met many mentors over the last 15 years and they all have one thing in common: the best mentors are people who achieve results! They leave you with little or no questions unanswered. My advice is to spend time studying results more than anything else, including scores of books that only help you understand how to make more money but don't actually show you how to make money.
3. What was your biggest win? How did you make it happen?
The biggest win I have had is that I get to do something that I really love every day of my life. I get to wake up every day wondering what the next deal will be like and if the deal is good enough, then my life will work out. (I used to hate the idea of starting work in the morning since it took away most of my time.)
4. What lessons did you learn along the way – things you wish you had known when you started out, or things you wish you hadn't done. What I've learned is that it's not a one-time deal. It takes positive results to keep up the momentum and to keep going.
5. What advice would you give yourself today? Would you do anything differently?
The advice I would give myself now is that this world does not have to be about working hard all the time only to find out there’s still nothing happening, and instead of feeling stuck, it's time for action! This is a very easy way to make more money and focus on what's important in life. When we focus on our vision and work constantly towards achieving it, we will find that we're able to focus on our passions as well. It will be a win-win situation for everyone.
6. How did a real estate investing fit into your lifestyle? Did you have to make any changes?
I had to change my lifestyle in order to fit into real estate investing, which doesn't mean I had to completely change my life. All I had to do was find a way I could break out of the old system and find something new that was better than what I used to have. It was a big step away from the norm for me, but it turns out that it is even better than working in an office with work hours from Monday through Friday. The new system is exciting and it's never boring - there's always something going on!
7. What's your No. 1 tip for others getting into real estate investing?
Do things on your own. You don't need to be rich to participate in a real estate deal but you will have a much better chance of success if you do it yourself and manage the process yourself than if you get involved with groups or so-called mentors. These individuals are usually trying to make a profit from doing deals but they are more interested in making money for themselves rather than what's best for you.
So buy, fix up, sell and learn! Focus on results and put everything behind effective strategies that will grow your portfolio, not just your bank account. You deserve the best and let no one take advantage of you!
8. Tell us about your life outside of real estate? What are you most passionate about?
I am a father in my late 30s with three children. I enjoy spending time with my family, taking vacations, and exploring the great outdoors, such as hiking, biking, skiing, and snowboarding. Just being outdoors is a passion for me. I also enjoy watching movies at home, just relaxing, and spending quality time at home with my family and friends.
9. What is your advice for those who want to join you on the journey?
Get started and get involved! Don't think of real estate investing or financial planning as a means to have more money, instead think of it as being an investor in yourself! Investing in yourself will help you grow your wealth and build the foundations of wealth for your children and family. The world has become a big data-driven environment, so there's no excuse to not know how to use these tools and information for investing. Use them wisely.
10. What does your real estate portfolio consist of today?
I currently have a large portfolio of multiple asset classes and am working on optimizing my book every day. My biggest mistake was that I wasn't focusing on my own results, but instead trying to follow the crowd. Now I realize that this is not necessary or sustainable.
11. How do you help yourself stay motivated?
I motivate myself by thinking about how much money I can make in the future if I stay focused on my goals! One of my dreams is to invest in several raw land projects and build a small home development over time, then sell the lots for a nice profit and continue to repeat this process again and again.
12. Any last words of wisdom for us?
You can change your life. It's never too late to start building a nest egg of wealth for yourself and your family. Don't settle for a job that doesn't fulfill you. Find something that will help you chase your dreams and you will be able to find success in real estate investing! There are plenty of opportunities out there!
For more information, you can visit Calculate investment property return without a spreadsheet.
