- Profit Strategy: Rehab & hold
- Number of Units: 8
- Personal Money Invested: $60k
- Amount Earned: $10k per year
- Prior Experience: With no prior experience, Chris works in technology
Chris works in technology. The income is good, but he knows his job will never give him the financial freedom he craves. He loves his profession and recognizes he’s fortunate in that regard. But he also knows that “it won’t last forever.”
Chris wanted to find an alternative to his career to generate cash without having to work full-time forever. Multifamily investing became his retirement plan. Even though he enjoys his job, he wants to be able to quit working when he’s ready.
Chris seeks financial freedom through passive income. When asked about his “ultimate dream,” he explains that it is not in his DNA to strive for different end goals continuously. He elucidates, “many people constantly strive towards an end goal. But, once you achieve that, then what? That’s what becomes the next question. I’ve certainly persisted with achieving things I’ve wanted, but once I attained it, I would ask myself, ‘what’s the next step?’ You wind up in a constant cycle of chasing the next thing.”
He seeks “the ability to act on new opportunities.” Clarifying, “I don’t even know what those opportunities are. But when they come up, I want to be able to take advantage of the ones that interest me.”
Ultimately, he’s looking for flexibility. His job isn’t flexible. He has to be in a particular area and do specific work. He wants freedom. Freedom to act on possibilities that arise. Those opportunities may take him to other places. He’s seeking the ability to be able to pursue those.
He believes in sharing this new worldview with his children. He has exposed his oldest son to this way of thinking and looks forward to helping him — and the rest of his family — become financially free.
Before Chris worked with Lance, he researched real estate investment options. As he explains, “most trainers out there were talking fix-and-flips which was a daunting task to me. I didn’t like the prospect of working all day and then renovating a house at night — or trying to get contractors to do it. Through trial and error, I learned I’d also be competing with people who do this full-time. Vying for contractor resources without the contacts is hard.”
In fact, he experimented with fix-and-flips, and they didn’t work out for him. But, buying-and-holding small apartments made a lot of sense. And through Lance’s book and training, he shifted his mindset to look at other areas of the country.
He learned that in some parts of the country, an 8-unit building could be priced the same as a single-family. Furthermore, when he ran the numbers, he realized that “buying and holding a building that has five or more units is a different strategy than a 4-unit building. You evaluate it and pursue financing differently. The numbers made more sense to invest this way.”
Lacking knowledge was an early deterrent, as was the necessary mind-shift. But another obstacle he battled was balancing family time with spending time on his job or a new venture.
Funding deals has also been challenging. To date, Chris has used his own money. He recognizes this process is not sustainable in the long term. Learning to find investors is a critical next step.
Chris has been successful in his career and knows any new venture has hurdles. “Life is a bunch of challenges you have to overcome. If you are dedicated to the new venture, you accept those challenges and work through them. Some days you overcome them, and some days you get setbacks. But you keep going.”
Chris experienced firsthand that due diligence before purchasing is critical. “You might discover unforeseen repairs. Or perhaps a tenant is planning to move out. There are little surprises along the way; if you can see them in advance, you will be better off.”
“Open your mind to new possibilities,” Chris recommends. “When you look at traditional ways of investing money, many say ‘stock market, stock market, stock market.’ I shifted my retirement money out of a managed retirement account. I moved it into a self-directed account — investing in myself versus the more traditional avenues. I’ve grown with this expanded perspective. I think others could benefit from this as well.”
Chris suggests people “stick with it. I did not jump in with both feet. I didn’t want to have things blow up in my face. For me, everything was little baby steps here and there. I learned about things, tried them, and discovered new opportunities. If you are considering investing in real estate, understand that there are a lot of different avenues. You don’t have to do it only one way. Find what works for you, buy what you’re comfortable with, and just keep at it. Real estate investing won’t disappoint once you find the right path for yourself.”
Open. Yourself. To. New. Opportunities.