I was discussing my job as Social Media Director for Rentec Direct today with one of my fellow gym rat buddies. As I started going into detail as to the types of topics I write about in blogs he pipes up “why don’t you write about how to make a million dollars in real estate?” I asked him what exactly he meant and he went on to tell me his experience investing in real estate. I’m going to share with you his story and hopefully some of his methods will inspire some creative strategies for you.
This man, we’ll call him John, was a career military person who put in his 25 years of service and has recently retired. On this day, Veterans Day I would like to take a brief moment to thank him and all of our men and women of service. In John’s military career he had been stationed at various military bases in and outside of the United States. He was stationed in Kansas, Kentucky, Texas, Oregon, and Germany to name some of the places he mentioned in our brief conversation.
John’s strategy was to purchase rental properties in places where the home prices are low. One example he gave was in Kentucky, the home prices there are about a third the price of homes here in southern Oregon. He would, conveniently purchase homes near the military base, where he was stationed at the time, as rental properties. He knew that the military gives a housing allowance to the men and women who are stationed at a particular base. This allowance was higher then what you might expect. He was buying homes for around $30,000 and collecting rents between $950-$1,200 per month. John was able to pay the homes off at an accelerated rate and now enjoys collecting rent with no mortgages on over 10 properties. His strategy for building wealth in real estate was smart he knew he would have reliable renters, low home prices, and high, guaranteed rents this is a landlords dream come true!
His plan was not a get rich quick plan but it definitely was a money making endeavor. He now enjoys his military retirement and continues to collect rent on his properties scattered throughout the Country. John enjoys spending his mornings at the gym taking my group exercise classes and working around home after that. Way to go John and what a smart investment plan!