Scraping together nearly $200,000 as a 20-something might sound like an impossible dream. For me, though, it became a reality in less than two years—starting with zero experience in real estate. This post covers my mistakes, lessons, and breakthroughs along the way.
If you’re thinking about real estate investing and feel overwhelmed, take it one step at a time. You don’t need to start out as an expert. Here’s how I did it, where I stumbled, and tips to help you do even better.
The First Property: Turning Effort Into Tax-Free Gains
At 23, I bought my first property and lived in it while fixing it up. I didn’t know much about real estate back then, but I saw an opportunity and took it. Fast forward two years, I sold it—and made close to $97,000 in profit.
The best part? It was tax-free. Under the IRS rule, if you live in a home as your primary residence for at least two of the past five years, you can exclude up to $250,000 (or $500,000 if you’re married) of capital gains.
That rule worked in my favor. At 25, I had nearly $97,000 in my pocket to reinvest.
Reinvesting and Scaling Quickly
I didn’t let the money sit idle. Within a year, I bought a second property, expanded its value by adding a two-car garage and a 400-square-foot master bathroom, and sold it for a $40,000 profit.
With $140,000 saved, I doubled down. I bought two more properties, applied the same strategies, and grew my bank balance to nearly $200,000. By 26, I’d done what I thought was impossible two years earlier.
The First Big Mistake: Buying at the Financial Crisis Peak
Not everything went as planned. My next purchase was a disaster. In 2009, during the peak of the financial meltdown, I unknowingly bought the wrong property at the wrong time.
I held onto it for nearly a year, trying to sell it, and ultimately took a painful loss. Looking back, I wasn’t educated enough about the impact of economic swings on real estate.
This taught me an important lesson: timing matters, and understanding market cycles can minimize risk.
Investing in Education to Bounce Back
After two big losses, I felt defeated. But instead of quitting, I hit the library. That’s when I came across a book by Robert Kiyosaki and Donald Trump about apartment complexes. The idea of creating steady cash flow through multifamily properties intrigued me, even though it seemed intimidating.
Soon after, I tried to buy an 83-unit complex. I found an experienced partner (a “key principal”) to help secure the deal, lined up all the necessary finances, and moved forward. Everything seemed set—until my partner backed out last minute.
That deal fell apart. Once again, I was left reeling from another failed attempt.
Around that time, I heard an ad on the radio for Rich Dad Education. I’d already read Robert Kiyosaki’s books, so I decided to attend their seminar. After getting a taste of the strategies they offered—like wholesaling and creative financing—I enrolled in their program.
This training was a turning point for me. It exposed me to concepts I’d never heard of, like subject-to deals, lease options, and short sales. These techniques opened my eyes to how creative you can be in real estate.
Quitting My Job to Go All In
Making money in real estate while working full-time wasn’t sustainable. A few months into the Rich Dad program, I decided to quit my job and focus entirely on investing.
To cover my expenses during this transition, I started buying mobile homes. They were affordable, and the monthly payments I collected acted as steady cash flow. Within six months, I’d replaced my job income and achieved financial independence.
Recognition and Building Momentum
In 2013, my efforts were recognized when I was inducted into the Rich Dad International Hall of Fame. Standing there at 27 years old felt surreal—just four years earlier, I had no idea I’d come this far.
Since then, I’ve completed over 100 real estate transactions, including pre-foreclosures, wraps, subject-to deals, probates, and even new construction projects. Today, I’m working on a multi-million-dollar commercial project.
Dispelling Common Myths in Real Estate
Many people assume success in real estate requires a suit, tie, and polished presentations. I’ve never worn a suit to a closing. I’ve closed on over 100 properties in jeans and a T-shirt.
Real estate doesn’t demand perfection or extravagant packaging. What matters is your ability to act, adapt, and learn as you go.
In 2014, I co-founded Propelio with Nate Worcester. Our mission? To help real estate investors succeed faster and smarter. There’s no one-size-fits-all strategy, so we aim to give investors the tools and knowledge to tackle deals with confidence.
Strategies Every Beginner Should Know
There are countless approaches to making money in real estate, but beginners should focus on these core strategies:
- Wholesales: Secure a property under contract and sell the contract to a buyer.
- Lease Options: Gain control of a property for a set time while maintaining the option to purchase.
- Rehabs: Buy, remodel, and resell for profit.
- Subject-tos: Take over the existing mortgage payments on a property.
- Wraps: Resell a property you own with new terms while keeping control of the loan.
These techniques don’t require a fortune to get started. In fact, some need little to no money upfront.
How to Find Money for Real Estate Deals
A lack of cash doesn’t need to stop you from investing. Here are three funding strategies for new investors:
- Hard Money Loans: Loans that focus on a property’s value rather than your credit score.
- Private Lending: Individuals with extra capital who lend at flexible terms.
- Creative Financing: Using seller-based options like subject-to deals or wraps.
Start with no-money-down deals if that’s all you can manage. Once you’ve built some profit, reinvest it to scale further.
Broader Tips for Success
- Educate yourself continually through books, seminars, and mentors.
- Understand the market—timing and location dictate your strategy.
- Evaluate each property thoroughly: repair costs, holding time, and potential profits should guide your decisions.
- Keep a glossary of real estate terms handy to simplify technical language.
The Next Step in Your Journey
If you’re new to real estate, start small. Secure your first property with zero-money-down options, then use profits to scale. Download a real estate glossary to build confidence with industry jargon, and commit to learning before diving headfirst into deals.
Real estate investing can feel overwhelming at first, but it’s just a series of manageable steps. If someone like me—with no formal background—can go from $0 to $200K, so can you.
What’s holding you back? There’s no better day to start than today.
