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.

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

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

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.

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.

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.

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.