How do people do it?

Discussion in 'Community Discussion' started by dukebound85, Jul 27, 2012.

  1. dukebound85 macrumors P6

    dukebound85

    Joined:
    Jul 17, 2005
    Location:
    5045 feet above sea level
    #1
    I recently moved places with a friend and his wife. So far, it has been great

    However, I can't help but be envious of them. They are both my age, around 27, and own 16 properties, SIXTEEN, with 15 being rentals. He is a real estate agent with a 1 year degree in automotive tech. She manages the properties and has a 4 year degree in finance. He comes from decent family wealth from my understanding.

    How the heck is that doable? Here I am thinking I am doing things right, got my undergrad in engineering, worked a year or 2, came back to grad school, and can not see myself being able to afford ONE house on my own until I graduate, and even then, would be iffy.


    Perhaps the rich really do keep getting richer.

    I know I have alot to be thankful, considering where I could be, for but when I hear things like this, I can't help but be like wth

    /end mini rant
     
  2. ucfgrad93 macrumors P6

    ucfgrad93

    Joined:
    Aug 17, 2007
    Location:
    Colorado
    #2
    My guess is that they are leveraged up to their eyeballs.
     
  3. dukebound85 thread starter macrumors P6

    dukebound85

    Joined:
    Jul 17, 2005
    Location:
    5045 feet above sea level
    #3
    Perhaps, though they keep talking about saving up to buy even more places.
     
  4. eternlgladiator macrumors 68000

    eternlgladiator

    Joined:
    Jun 20, 2010
    Location:
    Twin Cities
    #4
    Managing rentals can be very good financially if you have decent places and decent tenants. It doesn't require loads of work allowing you to do other jobs in addition and the rent you charge easily covers the mortgage, insurance, and repairs that your tenants aren't responsible for.
     
  5. vastoholic macrumors 68000

    vastoholic

    Joined:
    Jan 28, 2009
    Location:
    Tulsa, OK
    #5
    The more money you have, the more you have to invest to make even more money.
     
  6. sviato macrumors 68020

    sviato

    Joined:
    Oct 27, 2010
    Location:
    HR 9038 A
    #6
    Not sure how you haven't been successful with engineering (although you didn't give much detail, so I apologize if I'm wrong)... My friend's ex-bf finished a 4 year undergrad in engineering at UofT with a high 60s average and got a job starting 70k a year. A few years later and now he's making 125k+commission at a firm in Montreal.

    It is easier to make money if you have money, and, with a finance background, I'm sure your friend's wife knows how to take advantage of that. But connections and networking are also key and I find that people in real estate are good at those which likely played in favor of your friend's success in this field.
     
  7. dukebound85 thread starter macrumors P6

    dukebound85

    Joined:
    Jul 17, 2005
    Location:
    5045 feet above sea level
    #7
    I worked a year and a half before coming back to grad school where I have been for 2 years now
     
  8. barkomatic macrumors 68040

    Joined:
    Aug 8, 2008
    Location:
    Manhattan
    #8
    If he comes from a wealthy family then I'm sure they made an "investment" in the business to get them off to a good start. After that, it's a matter of managing debt and revenue. You could do the same, but it would take you a lot longer without the financial backing of rich parents.
     
  9. mobilehaathi macrumors G3

    mobilehaathi

    Joined:
    Aug 19, 2008
    Location:
    The Anthropocene
    #9
    I think you answered your own question...
     
  10. Macky-Mac macrumors 68030

    Macky-Mac

    Joined:
    May 18, 2004
    #10
    15 rentals "should" mean they have a positive cash flow that would allow them to accumulate cash to buy additional property.

    Years ago a friend of mine bought a 4 unit building, lived in 1 of the units and found that the rent from the other 3 covered all the costs involved......that freed up his money for other things.....like buying expensive presents for his girlfriend :p
     
  11. gabbiemazing macrumors newbie

    Joined:
    Oct 10, 2011
    Location:
    Philippines
    #11
    Patience my child. ;) You just need to wait for your big break. It'll come, I'm sure of it.
     

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