#03: Rags to Riches in Multifamily with Rennie Gabriel
May 06, 2019
You may think that in order to become a successful real estate investor, you have to start in your 20's or 30's. Today's guest, Rennie Gabriel proves that to be wrong. Rennie was flat broke when he was 50, even having to use a coupon to buy a burrito for his wife. I'm proud to say that today, Rennie is financially free and can live however he chooses. Listen to today's episode below to learn how to build a multifamily investing empire from nothing.
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Rags to Riches in Multifamily
Rennie has quite a unique story. I first met him when I was out in Southern California. Since then he's become a great friend of mine and someone who proves that it doesn't matter your age, you can build wealth on any income.
When Rennie decided he wanted to change his life for the better and quit keep putting it off, he had been 3 months behind and was collecting soda bottles and cans to cash in. He understood that sometimes you just have to do what you have to do. Rennie even walked door-to-door selling open and closed signs to businesses to make ends meet. Rennie was willing to do whatever it takes to become successful.
Rennie had got back up on his feet and was earning around $5,000 per month. He invested $500 per month for 36 months. Every single dollar that came from his work, Rennie saved 10%. He invested in individual stocks. For his strategy, he invested only in Dow Jones stocks that also paid a good dividend. This allowed how to minimize his risk. Rennie was able to save up around $18,000.
Rennie bought a triplex in Southern California. The property was around $300,000 in value. He invested $18,000, his wife invested $18,000 and the realtor who sold them the property invested $36,000. About 6 years later, they sold the property for about $850,000, making a profit of $550,000. By 2008, Rennie had 50 units. Rennie has since developed his formula into borrowing money, to get money, to make down payments.
In this episode we also cover:
- Why smaller banks are more conservative
- The downsides to both commercial and residential properties
- Why Rennie looked for properties that had deferred maintenance
- The differences between good and bad debt
- What holds people back from starting
Connect with Rennie:
Links mentioned in the show:
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