Real Estate

25 year old with 20 properties

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  • Nov 5th, 2020 11:02 pm
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Oct 22, 2019
368 posts
342 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.
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Nov 5, 2018
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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!
Called the bottom.
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Jan 5, 2020
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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]
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Oct 22, 2019
368 posts
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CondoMan98 wrote: It is fascinating hearing people’s stories about how they created their real estate portfolios. Great stuff!
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[OP]
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Oct 22, 2019
368 posts
342 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
967 posts
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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!
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Nov 15, 2004
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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
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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
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Sep 16, 2009
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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?
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Oct 29, 2015
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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
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Oct 29, 2015
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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?
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Sep 16, 2009
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DecayHeat wrote: Money JV partners.
Why'd you remove your signature?
not the same oasis. I am the original one :)
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Jun 15, 2015
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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 Guru
Feb 9, 2009
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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.
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Jun 14, 2018
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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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Jun 14, 2018
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Sanyo wrote: 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.
Yeah, I don't buy that in 2 years, he's turned $40,000 (his life savings at the time) into anywhere close to $1,000,000 (which would be 20% down-payment for the $5 million worth of properties he supposedly has).
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Mar 27, 2004
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here comes all the jealous haters.
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Jan 28, 2017
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For sure he's part of a JV (easily with 5-10+ people) to be able to take on 25 properties at that age/income. Kudos for him taking on the risk/reward, though it is very very risky strategy. Seems most of the properties are in Windsor - I don't know the market there, but it seems to be a pure cash flow game. If Covid continues longer term, he could be in for a rude awakening...doubt he has liquidity for unpaid/discounted rent scenario

IMO there are better ways to deploy capital...way too much work and headache to manage 25 properties. Given all the moving pieces, logistics, legal, property management (I know the article says he has a team, but still that costs $$ and they might be a part of the JV) etc, I'd rather go all in on dividend stocks and index funds, save money for 1-2 properties under my own name. But again, I err to the conservative, risk-adverse side...Not my cup of tea.
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.
Sanyo wrote: 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.
MarinersFanatik wrote: 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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Sep 14, 2006
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What’s his rfd name? Face With Tears Of Joy
TEAM CANADA!!!!!!!!!!!
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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 are correct. I vaguely remember a story also from way back. The guy lost everything if I'm correct.

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