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Mar 3 • 4 tweets • 2 min read
This is what started my Greed cycle. This was my first RE. See that $150K in ‘02, that was me. This is place I moved out, rented to snowbirds, then moved back in. See that $173K sale in ‘03. That was me too. Then I saw the guy who bought from me get $355K, 2 years later (Thread)
That guy was smart. I missed the peak, he didn’t. But as a mid 20’s investor w/ not much RE experience, once I saw what he got in late ‘05/early ‘06…I started getting greedy. Surely all of mine would continue to appreciate.
There isn’t just greed in your internal financial psyche. Many times greed is accompanied by jealously. I remember feeling pissed off that I sold early & guy who bought from me, made $200K on MY place! If you feel yourself getting jealous + greedy, be careful
The greed + jealousy above were what started my RE downfall 20 years ago. Don’t look @ others, don’t get greedy, focus on what’s best for you, your family, your kids/future kids. Nothing wrong with wanting to achieve…but keep your emotions/decisions in check. cc : @BowTiedBull

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More from @BowTiedBroke

BowTiedBroke Profile picture
Mar 3
Nothing like having Wells, BofA & more calling every other day asking for their mortgage payment, on ARM’s, that reset, that you pd $200K for, could have sold for $500k, got greedy, and eventually sold by bank for $90K after foreclosed. This was just 1 of mine. I had 10. (Tiny… twitter.com/i/web/status/1…
I bought these preconstruction, the rage in SFL back then. Pd $205 pre con, could have sold the day it was completed for 100% profit in 2005. Decided to hold because RE always goes up right?!? Right? Market turned, I listed for $299, nothing, rented, ARM’s all reset, prices crash
Renters moved out, payment doubled because of floating rates. The transaction in ‘09 was the actual FORECLOSURE. That was the amount remaining on mortgage. HIGHER than my original loan because I did Option ARM’s. Kept paying minimum, excess interest kept tacking on principle.
Read 5 tweets
BowTiedBroke Profile picture
Feb 12
Today was my dad’s 80th Birthday. My mom died quite a few years ago way too early. My dad was raised with no running water, no electricity, an outhouse, in a small shack with 6 brothers and sisters. He was stabbed in the chest by his own brother during an argument. (Thread)
My grandad visited the witch doctor in the swamp to get a magic dust to sprinkle around their shack. Dad worked picking tobacco in fields of South GA/North FL until he got sick of living in the swamp and joined the Army at 18. To say my dad was a TOUGH man,would be understatement
Growing up, I remember him working in a big freezer all day hauling slabs of beef on his shoulder and hanging them on hooks (think Rocky Balboa freezer scene). He would leave that job and go work a second job for Ryder driving trucks at night. He’d get home near midnight
Read 10 tweets
BowTiedBroke Profile picture
Dec 19, 2022
Jimmy - Part Deux (Get that SENG!)

Most of your assets should be making you money. I'll be digging into how I got started in RE soon, but wanted to finish the thread on Jimmy, the felon who I employ. If getting into RE, be ready to work w guys you wouldn't normally hang with
There are quite a few formulas some of you may know when calculating RE investment. ROI, ROE, CoC, GRM, NOI, IRR. There are also formulas you may not factor in. The "JIMMY" formulas. In Real Estate, you will have to deal with many Jimmy's. Handymen, framers, day laborers, etc.
Some of these folks, you have to watch like a hawk. In my early days of RE investing, I got hosed by a few subs. Your "Radar" improves with time. But quite often you'll find a guy who is a major asset to your reno, to your flip, to your purchase. Be open to learning from them.
Read 17 tweets
BowTiedBroke Profile picture
Dec 17, 2022
Have I got some real estate adventures today for y’all. This is the 1,000 acres I’ve closed on that will be developed (eventually). I want everyone to meet Jimmy. Jimmy is a twice convicted felon who works for me now. I can barely understand what he says half the time twitter.com/i/web/status/1…
So I just nod in agreement or say “yeah”. He lives “off the grid”, kind of how @BowTiedBull encourages the community to live sometimes. This 1,000 acre tract started as a strategic purchase of only about 100 hundred acres. You see, real estate is all about relationships.
When I closed on the first 100 acres of this particular tract, I was looking for the right of way/easement to access the acreage. In my side mirror, some really scary dude with a ZZ Top beard came walking up to my truck w an axe in his hand. I thought I was going to lose an arm.
Read 11 tweets
BowTiedBroke Profile picture
Dec 16, 2022
Why should you dip your toe into real estate? I went to college for a specialized degree. Pursued career in that degree for 22 years. Dropped my keys on the desk, quit & never looked back. Jumped head first into full time real estate investing. After 22 years, here is what I had:
401K that had grown with the company match to a whopping (I say that sarcastically) mid 6 figure number. That’s after 22 YEARS! $300k salary, vesting stock grants, company vehicle. Decent, but not worth the grind of daily publicly traded company life.
Dabbled in RE since 2000. I knew if I could just get it to click, it could be my ticket out. Learned a significant amount after getting my ass handed to me at crash. I regrouped, jumped back into RE around ‘14-‘15, took what I learned from before & rewrote my path
Read 11 tweets
BowTiedBroke Profile picture
Dec 15, 2022
Never dabbled in RE but want to? Get ready. Opportunities will be ripe by Q3 of next year. Just like @BowTiedOx & @BowTiedBull tell you to set goals/document progress. Same with acquiring investment RE. Set a goal of saving $50K if you can. If that’s not feasible, set for $25K.
You’ve got to have the cash for down payment. You’ve got to have the credit for a loan. You need to be in your current job for at least 2 yrs or show income from your biz on tax returns for at least 2 yrs.
Don’t swing for the fences on your first deal. Slow & steady is the name of the game in RE. Don’t overleverage. You think losing $20k or $50k is bad in stock market/crypto? You lose on a RE deal and get hit with a foreclosure, say goodbye to getting credit on anything for 7 yrs.
Read 10 tweets

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