Real Estate

25 year old with 20 properties

  • Last Updated:
  • Nov 5th, 2020 11:02 pm
[OP]
Member
Oct 22, 2019
288 posts
260 upvotes

25 year old with 20 properties

I’m 25, live with my parents and own 20 rental properties. Here’s how I did it

I know some people must have heard of this...its quite impressive at such a young age. Great strategy away from the GTA.

The timeframe that he accomplished this in is crazy.

There are lot of details we dont know..but this seems highly risky with a 70k annual salary.
156 replies
Deal Addict
User avatar
Nov 5, 2018
1615 posts
2475 upvotes
Toronto
JD_Inv wrote: I’m 25, live with my parents and own 20 rental properties. Here’s how I did it

I know some people must have heard of this...its quite impressive at such a young age. Great strategy away from the GTA.

The timeframe that he accomplished this in is crazy.

There are lot of details we dont know..but this seems highly risky with a 70k annual salary.
It is fascinating hearing people’s stories about how they created their real estate portfolios. Great stuff!
I do not need approval, I do not need friends. I do what I want.
Sr. Member
Jan 5, 2020
540 posts
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Yes, the article doesn't give full details. But it does say that he bought many of the properties in partnership with other people. So he doesn't have full ownership of the 25 properties. Im curious as to how much ownership he actually has.
[OP]
Member
Oct 22, 2019
288 posts
260 upvotes
CondoMan98 wrote: It is fascinating hearing people’s stories about how they created their real estate portfolios. Great stuff!
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[OP]
Member
Oct 22, 2019
288 posts
260 upvotes
Newuserid wrote: Yes, the article doesn't give full details. But it does say that he bought many of the properties in partnership with other people. So he doesn't have full ownership of the 25 properties. Im curious as to how much ownership he actually has.
It definitely helps that he works at RBC.
Sr. Member
Aug 14, 2006
957 posts
88 upvotes
He took advantage of the refinancing and not living in any of the properties but with his parents anymore and is still doing so. It takes a lot for someone to do that. There is a balance between living on your own, living life and having a stable relationship with a partner that hopefully is in his future though!
Deal Expert
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Nov 15, 2004
19233 posts
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Toronto
5 million dollars in debt, extremely poor cash flow, no equity, no ability to service his debt in case something goes wrong at any property. I think I heard this story about 12 years ago.
Jr. Member
Jan 30, 2020
110 posts
116 upvotes
you guys are cheering this story but it's like that scene in the big short when the stripper tells Steve Carell she owns 5 homes
Sr. Member
Sep 16, 2009
657 posts
449 upvotes
Wiretin wrote: you guys are cheering this story but it's like that scene in the big short when the stripper tells Steve Carell she owns 5 homes
lol. Yeah when I read it I was like - its good he did all this. But are the lenders asleep at the wheel?
Member
Oct 29, 2015
278 posts
116 upvotes
Piro21 wrote: 5 million dollars in debt, extremely poor cash flow, no equity, no ability to service his debt in case something goes wrong at any property. I think I heard this story about 12 years ago.
You have no context on any of the financials. For all we know he could be cashflowing
Member
Oct 29, 2015
278 posts
116 upvotes
oasis2002 wrote: lol. Yeah when I read it I was like - its good he did all this. But are the lenders asleep at the wheel?
Money JV partners.
Why'd you remove your signature?
Sr. Member
Sep 16, 2009
657 posts
449 upvotes
DecayHeat wrote: Money JV partners.
Why'd you remove your signature?
not the same oasis. I am the original one :)
Member
Jun 15, 2015
229 posts
273 upvotes
Thornhill, ON
Piro21 wrote: 5 million dollars in debt, extremely poor cash flow, no equity, no ability to service his debt in case something goes wrong at any property. I think I heard this story about 12 years ago.
Apparently, he has over $4000 extra cash monthly, say about $50K annual - that's great moolah! I suspect working at RBC helped him with the mortgages. May be he is friends with the mtg specialists :-)
Deal Fanatic
Feb 9, 2009
9615 posts
7203 upvotes
i read somewhere online most of the homes he owns is small % for "advice". So most of the homes he owns are majority owned by JV, he gets his small share for finding the home. Maybe friends or family that ask him to go find something for a 5-10% ownership.

The smart thing would be to get a small % of ownership but the JV takes the full risk with mortgage -- if hes doing that hes smart and thats how he's accumulating all of these properties.

Even if he BRRR"s there is no way he can get 18 properties in 2 years.. even the RE investors on here have to laugh at that. But good on him for getting a piece of the pie for each property.
Member
Jun 14, 2018
454 posts
464 upvotes
DecayHeat wrote: You have no context on any of the financials. For all we know he could be cashflowing
He's cash-flow positive ($4000 per month), but that's only when all of the properties are tenanted.

I admire his courage to take on such a massive amount of debt, but he'll basically be spending most of his life tied to all of those mortgages. If I were him, I would probably cut down on his RE portfolio and sell some of his worst cash-flow properties. If he has $5 million worth of properties, let's assume that he has 20% equity in them, so $1 million. I'd sell $2 million of his properties so that at least he'll have a higher percentage of equity. He also has a decent job, so I don't get the sense that he needs to take such a huge amount of risk here.

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