Hey everyone! This is Daniel with Propelio, and welcome to the first video in our real estate investing training series. In this series, we’ll cover the basics of real estate investing, from identifying opportunities to making profitable deals. In this initial post, I’ll introduce myself and share my journey into real estate, including the challenges and successes that shaped my career.
The Early Days: How I Got Started in Real Estate Investing
My First Investment Property at 23
At the age of 23, I bought my first investment property, and let’s just say, I made almost every mistake you could make. But even with those mistakes, I still came out ahead. With no formal education and only a few books under my belt, I decided to dive headfirst into real estate investing. Here’s how it all began:
While driving down Josephine Street on a lunch break, I noticed a strip of 27-28 townhomes, all for sale. Every single one had a “For Sale” sign, and most of them were boarded up, with busted windows. Sensing an opportunity, I called one of the agents and began the process of securing a loan.
The Challenges of Buying a Distressed Property
I didn’t know about hard money loans at the time, so I went through my bank and got approved for $80,000, even though the property was listed for $44,000. As I moved forward, I faced several hurdles:
- Appraisal Issues: The appraiser was not impressed with the property’s condition. The townhomes had been vacant for a year, and the area was overrun by homeless people, drug dealers, and prostitutes. The property needed extensive repairs, including electrical, plumbing, and structural fixes.
- Moving In Before Owning: To save money and get the work done, I moved into the property, living in the hot water heater closet for 30 days while I made the necessary repairs. Working 100-hour weeks, I managed to get the place up to loan standards.
- Permits and Approvals: The appraiser initially refused to approve the property without permits for the work I’d done. After some back-and-forth, I managed to get another appraiser who approved the property with minimal additional requirements.
Turning a Profit and Learning from Mistakes
After two years of hard work and learning, I sold that first property for a significant profit, netting about $97,000. This experience taught me invaluable lessons and gave me the capital to invest in more properties.
The Next Steps: Growing My Real Estate Portfolio
Rolling Profits into More Investments
With the profit from my first property, I invested in more real estate. I bought another property, made improvements, and sold it for a profit. This process continued, allowing me to build my capital and experience.
Facing Challenges During the Financial Crisis
Not every deal was a success. I lost money on a property during the financial crisis, which was a tough lesson. It made me realize the importance of timing and market conditions.
Learning from Books and Mentorship
To improve my knowledge, I turned to books and eventually joined Robert Kiyosaki’s Rich Dad Education program. This exposure to new strategies like subject-to, wraps, and short sales broadened my understanding and capabilities in real estate investing.
Achieving Success and Founding Propelio
Quitting My Job to Focus on Real Estate
At 27, I made the bold decision to quit my job and focus on real estate full-time. I bought mobile homes, created cash flow, and managed to financially retire within six months.
Recognition and Growth
In 2013, I was inducted into the Rich Dad International Hall of Fame, a significant milestone in my career. This recognition was a testament to my success and hard work in real estate.
Co-Founding Propelio and Building Experience
In 2014, I co-founded Propelio with Nate Wooster. Since then, I’ve completed over 100-200 real estate transactions, ranging from subject-tos to multi-million-dollar commercial projects.
What to Expect from This Training Program
Basic Investing Strategies
In this series, we’ll cover fundamental strategies such as:
- Wholesaling
- Lease Options
- Rehabs
- Rentals
- Subject-To
- Wraps
- Short Sales
- Auctions
Getting Started in Investing
We’ll discuss how to get started based on your background and financial situation. Whether you’re a beginner or have some experience, we’ll provide actionable steps to help you begin.
When and Where to Invest
Understanding market conditions is crucial. We’ll help you identify whether you’re in an appreciating or depreciating market and teach you strategies to succeed in any market condition.
Analyzing Properties and Making Offers
You’ll learn how to analyze properties for different strategies—whether you’re looking at rentals, flips, or other investment types. We’ll cover what to consider when making offers and how to evaluate repair costs.
Finding Money for Deals
Forget the myth that you need a lot of money to get started. We’ll introduce you to strategies that require little to no money, like hard money lending, private equity, and using retirement accounts.
Key Takeaways
My journey into real estate investing has been filled with challenges, learning experiences, and ultimately, success. From my first investment at 23 to co-founding Propelio, I’ve navigated the ups and downs of the market and built a wealth of knowledge along the way. This training series aims to equip you with the strategies and insights needed to succeed in real estate investing, regardless of your starting point.
Together, we’ll explore various investment strategies, understand market dynamics, and learn how to analyze and fund deals effectively. Join me on this journey, and let’s unlock the potential of real estate investing to achieve your financial goals. Stay tuned for our next video where we’ll dive into the basics of wholesaling and how you can get started with minimal capital.
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