Good morning,
This week I read the quote that was something along the lines of:
‘weeks are nothing to a war but can mean everything to an economy’
The point being that wars have a tendency to last longer than expected – especially at the beginning. History is littered with quotes proclaiming how this new war will be over before (insert next culturally important holiday).
As investors we need to be sober in our decision making over the next few weeks. The war in Ukraine is a stone the size of Texas across the pond and we haven’t fully felt the ripples just yet.
Meaning that we need to embody this week’s investor’s alias – frugality. It’s my pleasure to introduce you to The Frugal Mogul.
How many doors do you have?
I currently own four single family investment properties as well as my primary residence. The aggregate estimated value of those five homes is $1.85M
What got you into real estate investing?
The book Rich Dad Poor Dad opened my eyes to the power of collecting assets, and the Bigger Pockets podcast inspired me to pursue real estate.
What market(s) do you operate in?
I strictly buy single family homes in the city of Worcester, MA. The City of Worcester has been investing many millions of dollars in infrastructure projects, and first-time homebuyers are flocking to the City.
How would you describe your portfolio?
Four single family homes, mostly from the late 1800s. I have an 1880, 1890, 1900, and 1967 home.
What are you currently buying?
Single family properties in Worcester, MA. My properties are 3-beds, 1.5+ baths homes
Tell us about your biggest mistake in real estate?
I’d say not starting earlier was my biggest mistake. The power of real estate comes from buying right, and holding long. I didn’t buy my first property until 2020.
Tell us about your biggest win in real estate?
I bought my first property for $150K and we put $50K into it, and we appraised at $315K during the cash out refinance. It was pure bliss! We’ve since cashed out another $40K from the same property, all in less than two years.
Outside of real estate what else do you invest in?
My wife and I both have Roths that get invested in index funds. I also tend to apply my “real estate acquisition fund” into individual stocks. This is not recommended for a new landlord who is just starting out on their investment journey.
Books people should read before investing
Rich Dad Poor Dad, the Millionaire Next Door, and the BRRRR book
What advice would you give to a new investor?
Stop over analyzing properties and get buying!
Enough business
Being a real estate investor takes as much work as you want to put in it (based off my 4+ years of experience).
Meaning you can take the easy road and invest in REITs. You could opt to buy turnkey properties managed by a competent property manager. Then there are the masochists who love ground up development.
My point being is that there are many vehicles you can take on your journey to financial independence / generational wealth. You just need to find the vehicle that lets you sleep well at night.
See ya next week
