After I read the book Rich Dad-Poor Dad, it was like a lightbulb went off in my head. I finally understood the path to creating wealth and how I could achieve financial freedom.
In that book, one of the main themes to creating wealth is investing in real estate. Now, you might not have any interest at all in real estate investing but just hear me out because it only plays a small part in the story.
I was so excited about real estate after I read that book that I consumed everything I could on it. I listened to every BiggerPockets podcast and watched tons of DIY remodeling videos on YouTube.
I managed to save up about $11,000 to start Investing in buy-and-hold rental properties. My plan was to buy undervalued foreclosure properties and put several thousand into rehabbing the property, then rent them out for monthly cashflow. After six months of holding the property I would do a cash-out refinance with the bank to pull my money back out. Then, use that money to purchase the next property and continually repeat.
This has been used by the hundreds of thousands of people to build real wealth. It is commonly known as the BRRR Strategy (Buy it, Repair it, Rent it out, Refinance it).
I did all the studying, got a real estate agent, got financing through a small local bank, and had everything I needed to get going. But, I had a couple of family members that did everything in their power to discourage me.
They told me that real estate was risky and there were a million things that could go wrong with owning rental properties. One Family member told me that it was nothing but a pipe dream and that I would want to sell the properties when I started getting phone calls in the middle of the night to fix someone’s toilet.
Another family member told me that anyone who is willing to invest in real estate after the Lehman crash in 2008 was a complete idiot and that I would regret it.