Doing REI Deals and Self-Managing While Working a W-2 Job - Leo Singer #03

Leo Singer describes himself as a “pretty average guy.” He works a day-to-day W2 job, loves sports, and grew up in your typical middle-class family. So naturally, when he reached his mid 20’s and started to make decent money for himself, he began to have a lot of fun with that money and just go back to work and wait for the next paycheck to come in again. Fortunately, a friend of his introduced him to a little book called Rich Dad Poor Dad, and his girlfriend at the time (now fiance) helped to set his financial life in order. Since then, Leo has continued his financing and investing education and has read something to the tune of about 60 books on this topic alone. Up to date, within only a span of 2.5 years, Leo and Kelsey have grown their portfolio to 7 doors, and are going into contract for a 12-unit apartment building at the time of this recording. And as far as 2021 goes, they are on track to obtain another 10 units more! Highlights and lessons learned from Leo: 1) Sweat equity vs. outsourcing. New investors are attracted to the idea of working on their property renovations (aka DIY), especially on their first or second property. And while there can definitely be valuable lessons in doing such labor, for Leo, the lesson for him was that that kind of work was better left off for a professional to do it for him. It wasn’t worth the time and for the money that he’d be paying, the result was 10x more than what he could’ve accomplished himself. And in the long run, it’ll prove to be a much more sustainable business model. 2) Hiring a virtual assistant (VA) over a traditional property management company. When Leo purchased his first rental property, he was on the fence about self managing or hiring a professional property management company. On one hand, he wanted his rental business to be run the way he wanted, and on the other hand, he didn’t have the time or desire to take on a second job for himself managing tenants. So he found a pretty good middle ground—hiring a virtual assistance. By doing this, Leo retains 100% control of his real estate business, but also doesn’t have to worry about the day-to-day tasks that would otherwise pull him away from his actual day job. (Two books Leo recommends reading is The E-Myth Revisited by Michael Gerber and Virtual Freedom by Chris Ducker) 3) “If you’re not nervous, you’re probably not stretching yourself.” In other words, if you don’t put yourself in a position of discomfort, you probably aren’t growing and reaching your full potential. This doesn’t mean go out and make reckless decisions or make commitments without diligence, but it does mean to overcome your initial fear and just take that step (or leap) forward. That’s how you become better. 4) Transitioning from single family to multi-family. In the words of Leo, “It’s different but it’s not that different.” What you’ll find when you look into multi-unit properties is that there tends to be more items to consider and that the definitions to certain terms don’t necessarily mean all the same things. What you have to keep in mind, however, is to keep things simple. At the end of the day, what you’re looking for is a prospect of a good (or great!) deal. Once you find something of contention, then go deeper into your diligence and look at the nitty-gritty details, depending on exactly what type of investment strategy you’re looking for. To get in touch with Leo, follow him on Instagram @leosingerthe2nd To learn more about the Rat Race To FI Mastermind group, head over to: go.ratracetofi.com/optin and join our waiting list!