There are some people that are actually making it in this business that aren’t bullshitting. It’s rare to find them but heres a couple examples. I personally know a few people that have 30 rental units. I’m sure they have all their checks paid to them on one day of the month, but in theory it can be setup as a check a day, and it’s nice to imagine having a check sent to you every day in perpetuity. They are all people a generation above me. Like my parents age. 60-70.
Unfortunately, not my parents. But other people’s parents.
So here’s a couple stories about them.
One is a girl I dated years ago. Her dad owns a State Farm agency in the middle of Michigan. It’s a small town outside of Lansing. From what I learned about his system is that his main business is obviously the insurance agency and he has been buying single family houses is his hometown for years, and he finally acquired 30. He plans to grow slowly from there and sell his business to his kids. With this insurance agency he can profit multiple ways from this business. He insures all of his houses through his agency, and he also can sell the renters rental insurance through his agency. It’s not that much revenue but he is still making money a few different ways on these houses. It’s a small town so he just has the tenants come into the state farm and pay the rent. While they’re there he also tries to cross sell the tenants on auto insurance. If the tenant decides to buy a house in a few years he also will sell them home owners insurance and any other products he can. This is extremely smart and proves to be very lucrative for him. When he retires from State Farm he going to have really good income coming in from his years of real estate investing.
Another is a friend from college.
His dad was a dentist and he bought 30 single family houses in his small town in central Ohio.
My friend was telling me his dad started buying before he was born and what he would do is buy 1 a year with 30% down and every one of them was a three-two. Three beds, 2 baths.
When he was younger he would do most of the work himself. As he got older what his dad did, and another benefit of knowing people in a small town is he found a young guy my friends age that was handy,
he gave him a free house to live in and 30K a year to manage and maintain all of his properties. The guy that maintains the houses loves it. His wife is a nurse so they have health insurance through her and they will never have to worry about a mortgage.
There is a distant cousin of mine who is very wealthy.
I’m not too close with him but when I see him we talk about real estate. He does things a little different though. He owns apartment buildings totaling 30 units, in a blue-collar suburb of Detroit. He owns a large distribution company in Detroit and lives in a huge
house and drives exotic cars. At the same time he does all the work to these buildings himself and he even cuts the grass at his own house. I can’t understand this guy, he is so cheap he won’t even hire a kid for $40 a month to cut his damn grass. He told me this and I couldn’t
believe it. He says he paints all his rental properties too. This is the exact opposite of what he should be doing because he is turning his real estate business into a second job for himself. But he won’t listen. I told him focus on your main business where you can make millions and
hire all his manual labor out, just have your real estate passive. But he won’t. Some how he finds time to do it all, and doesn’t seem to mind, and it works for him, he’s very wealthy. Stubborn, but wealthy. Who am I to tell a multi-millionaire what to do with his time or
business. But just imagine if his tenants knew who he really was when he was over at the apartment building painting the walls? Why is there a millionaire painting the building?!
Another is my plumber.
He and his dad have been buying for years in this specific area in Detroit city. He told me he worked at the bank for a while and he couldn’t stand it, he just hated it. So he learned plumbing and started working with his dad.
It turns out he grew up in this area so they know it very well. The property is still somewhat cheap there and is slowly increasing in value. His dad owns 15 duplexes there, and he owns four. He said he keeps buying and pays one off every year. He mostly just rents to college
students and he says it’s easy money. It makes me think he hated the bank so much that he would rather be a plumber and work with shit all day. So whats the point to go to an average college to get a job like that. I’d rather be a plumber and real estate investor too. He will eventually take over his dads properties and have a very nice portfolio.
These people are actually doing it. They all have some things in common. Long term investing, and having a day job while they build their side business.
There is an option for these people to retire but they don’t want to. I think the younger generation wants more freedom and thats how I set up my business and many other people my age are too.
Keep in mind when these people started investing there was no internet available.
Whatever way works for you it’s going to take serious time, but it is possible, and worth it.