\n<\/p>\n
Andrew Bresee never wanted to work for someone else. \u201cI don\u2019t want to build somebody else\u2019s dream,\u201d he says. \u201cI want to build mine.\u201d And that was his motivation for putting in the work it would take to become financially free just two years after buying his first investment property.\u00a0<\/span><\/p>\n In an episode of the\u00a0<\/span>BiggerPockets Rookie Podcast<\/span><\/a>, Bresee explains the obstacles that could have easily led him to give up on his dream and how you can cultivate perseverance even when your luck seems to run dry. He lets us in on the lessons he learned while developing his investment strategy and even provides the \u201ccure\u201d for analysis paralysis, giving real estate rookies hope that financial freedom is in no way out of reach. \u201cWhether it\u2019s two years, five years, 10 years, it will be much quicker than you think,\u201d he says.\u00a0<\/span><\/p>\n As a 15 or 16-year-old teen, Bresee was checked out. \u201cAll the Ritalin in the world couldn\u2019t get me to focus at school,\u201d he says. But when someone gave him a copy of\u00a0<\/span>Rich Dad, Poor Dad<\/span><\/em>, it sparked an instant passion for real estate investing. \u201cI knew from then on I wanted to be a real estate investor, and I didn\u2019t want to work for somebody else for the rest of my life.\u201d<\/span><\/p>\n Of course, saving the money he needed to realize his dream would require working several jobs and a lot of sweat equity. Even before Bresee and his wife were ready to purchase their first property with the income they saved, they got some experience rehabbing his parents\u2019 basement, laying the groundwork for the hard work to come.\u00a0<\/span><\/p>\n \u201cMy parents were super generous with us, let us move into the basement, and we took six years off and on, building a full apartment in the basement. So we put in every Sunday for eight hours and then whenever we could during the week we built a full bathroom, a full kitchen, put in a laundry room, put a bedroom, we put a window below grade.\u201d So when they viewed a property with four units that needed love, Bresee had the confidence to move forward.\u00a0<\/span><\/p>\n Bresee and his wife used all their savings to buy two duplexes, one with an FHA loan and one with a conventional loan. When the transaction was complete, they had only $2,000 left in the bank. But Bresee had the ingenuity to recognize the right strategy that would get all four units in rentable condition. \u201cAnd [the] first thing we did was say, \u2018Okay, which of these four units is in [the] best shape that we can get on the market?\u2019\u201d<\/span><\/p>\n Over six months, they moved from one unit to the next, making the most urgent improvements first. \u201cIt was just all hands on deck every moment we could possibly put in before work, after work, whatever we could do.\u201d<\/span><\/p>\n They made it work by putting in the time and rolling with the punches. For example, when they couldn\u2019t permit one of the one-bedrooms for a short-term rental, they used the monthly or medium-term rental strategy. \u201cI turn over the unit every two, three, or four months and I still get almost as much as I would get as a short-term rental,\u201d says Bresee. And this strategy has lifestyle benefits for the couple as well. Longer-term tenants tend to be more respectful of the landlord next door.\u00a0<\/span><\/p>\n Bresee says he\u2019s clear in the Airbnb description and title that the unit is ideal for extended stays to encourage bookings for the unit. With all repairs and expenses covered, including his personal internet access, he says, \u201cWe\u2019re on pace to make about $1,200 a month.\u201d\u00a0<\/span><\/p>\n Putting the labor into the first four units left Bresee with a faulty mindset. \u201cI thought I could do more or better than others. So we bought another duplex, and I ended up, when I quit my job, rehabbing that for an entire year.\u201d He was stuck in the mindset that he needed to protect his cash, preventing him from seeing the opportunity cost of finishing the work himself. \u201cAnd so I should have farmed things out sooner.\u201d<\/span><\/p>\n Now, Bresee has put his tools in storage (literally) and resolved to get help from contractors who can finish the work quicker. This allows him to earn more money by getting units ready for rent sooner. Still, there\u2019s a time to hustle, he admits. \u201cIf you don\u2019t have a W-2, if you don\u2019t have a ton of extra money,\u201d sometimes putting in the work with your own hands is the only way to get started.\u00a0<\/span><\/p>\n \u201cWe put $40,000 into those four units together [over] six months, and we worked our tails off. That was a good use of my time [back then] because my ability to get another deal was contingent on me getting those units up and going, spending the least amount of money possible because I didn\u2019t have any money left. But later on, it was the exact opposite. I was still in the frame of mind that I was going to do what I did before, and I was not treating it like a business when it should have been.\u201d<\/span><\/p>\n That\u2019s where a flexible mindset is important. Evaluate your strategy based on your current financial situation rather than trying to pinch every penny in repair and remodeling costs. \u201cDon\u2019t bite off more than you can chew, but also don\u2019t be stuck like I was in a mindset that held me back.\u201d\u00a0<\/span><\/p>\n Bresee says if you know what you\u2019re doing and feel confident in the outcome, you can even take the risk of buying your materials with a 0% introductory APR credit card. \u201cAnd then all you need is cash to pay your contractor,\u201d he says.\u00a0<\/span><\/p>\nStarting Small<\/span><\/h2>\n
Putting in the Time and Rolling with the Punches<\/span><\/h2>\n
There\u2019s a Time to Hustle and a Time to Delegate<\/span><\/h2>\n
Accelerating Your Success<\/span><\/h2>\n