Six months ago, late, very late at night in Zinc Brasserie and Wine Bar in West Bloomfield, arguing who gets the last order of lamb chops that they had left after a busy night – I literally wrote a Flip To Cashflow plan for somebody who would probably qualify for as one of my first coaching member in Michigan since I have known for almost 3 years now.
Well actually there was no coaching group back then 3 years ago – just informational direction and kick in the butt from me.
Former GM engineer, 29 years old, quit his job in GM paying $78,000 per year when GM was not literally printing pink slips every day and went solo. Came to a workshop that I did in Welsh College in Novi many many moons ago and stayed in touch with me ever since.
I have enormous respect for him because even now with his busy schedule he will drop anything he is doing and help his dad out at their pizzeria whenever he need him. That, ladies and gentleman, is true family ties and humility in action.
At this particular moment in time – he was laying down different pieces of puzzle that is his real estate business with a very specific plan – creating some serious passive income in his life with a 18 month plan to coincide with him turning 30.
And I mean big passive income – not a house there or not – he already owns a couple of single-family homes. My suggestion was the obvious – apartment complex – preferably the bigger ones the better. Make a move into them. Learn the game. Add the skills to do them and do them right.
That was six months ago. He was also gracious enough to take time out of his busy life and come and speak from his heart to my coaching group in November about getting Private Money in the real world.
I talked to him this afternoon – he bought his first 25 unit apartment complex in Michigan, 100% financed by OPM. On schedule to have 100 units according to a some figures and a sketch that we wrote on the daily menu at Zinc Brasserie.
As his former colleagues are calling him and asking his advice on how to do what he has been doing for three years now – he is way, way ahead of them in terms of his Black Book, experience and knowledge learned in the real world.
Why am writing about him? Why should anybody care?
Because one this whole thing about money and not having it is blow way out of proportion. Real estate could and is bought every single day with heavy leverage. When I showed him the two websites that I use to check out commercial real estate deals, his questions were not where the down payment is going to come from but rather how to go and set some things in motion that will bring him the down payment.
This is by the way the same guy who was sitting in my Southfield office 3 years ago and asking me if it is possible to get money from non-traditional sources.
Funny what knowledge can bring you in real estate?
From wondering if anybody can finance his single family flip to buying a 25 unit building with OPM.
