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How this 25-year-old real estate investor earning $515,000 a year spends his money

By EBGuy follow EBGuy   2021 Nov 24, 3:12pm 209 views   12 comments   watch   nsfw   quote   share      


This article has me thinking, "Here we go again". The highlight for me was this part: Of course, managing properties does come with headaches. Learning zoning laws has taken up much of his time over the past few years: He had planned to flip a duplex purchased in January 2020 into a single-family home, but local housing ordinances precluded that. He estimates he lost tens of thousands of dollars before changing tact and renting out that property on Airbnb.
The property question is this one. You can also find it on AirBnB.
According to the City of Oakland:
Oakland’s Secondary Unit regulations were updated in May 2017 to require: “occupancy of a Secondary Unit shall be on a thirty (30) days or longer basis only.” Therefore, rental of a Secondary Unit for less than thirty (30) consecutive days is not allowed, per Planning Code Section 17.103.080(A)(2).
Part of me thinks this kid could be a budding eman, but the other part is worried for anyone in his situation who buys a $130k Tesla (even if you can expense it).
YMMV...
1   Eman   ignore (0)   2021 Nov 24, 3:49pm     ↓ dislike (0)   quote   flag        

62nd St is a decent/nice part of Oakland if I recalled correctly.

Just closed this flip a couple months ago.

https://www.redfin.com/CA/Oakland/1749-24th-Ave-94601/home/909190?600390594=copy_variant&231528114=control&utm_source=patrick.net&utm_medium=patrick.net&utm_nooverride=1&utm_content=link&utm_campaign=patrick.net

This one should be closed in a couple weeks for $640k.

https://www.redfin.com/CA/Oakland/3521-Davis-St-94601/home/630666?600390594=copy_variant&231528114=control&utm_source=patrick.net&utm_medium=patrick.net&utm_nooverride=1&utm_content=link&utm_campaign=patrick.net

Have a couple more in the works. Will be on the market in the spring in the $1.2-$1.8M range. Hope the market will stay strong.
2   B.A.C.A.H.   ignore (1)   2021 Nov 24, 5:37pm     ↓ dislike (0)   quote   flag        

EBGuy says
worried for anyone in his situation who buys a $130k Tesla (even if you can expense it).


Yep.
3   Eman   ignore (0)   2021 Nov 24, 9:00pm     ↓ dislike (0)   quote   flag        

EBGuy says
According to the City of Oakland:
Oakland’s Secondary Unit regulations were updated in May 2017 to require: “occupancy of a Secondary Unit shall be on a thirty (30) days or longer basis only.” Therefore, rental of a Secondary Unit for less than thirty (30) consecutive days is not allowed, per Planning Code Section 17.103.080(A)(2).
Part of me thinks this kid could be a budding eman, but the other part is worried for anyone in his situation who buys a $130k Tesla (even if you can expense it).
YMMV...


EBguy, rather than “worry” for the guy, think of solutions. I’ve witnessed both of these first hand from folks in my circle.

1) turn the 2nd unit into a traveled nurse/doctor Airbnb. They rent 3-6 months at a time. If they like the unit, they’ll likely refer it to their colleagues before they move out. This guy is 36 years old. He’s been traveling the world since 30 while having someone runs his traveled nurse/doctor and getting a 20% cut of the profit. He used to work for the state of CA with a pension but gave it up as his dream is to travel the world.

2) With respect to $130k Tesla, look up Turo, the car can pay for itself by leasing it out for 10 days/month. You get to drive it the other 20 days for free. This guy is 31 years old and a real estate flipper. He owns 4 rentals. Only has a GED degree. On track to make over $400k this year.

As shown here, his share on the $400k profit is $200k. The 2nd flip is all his. He has 2 flips with me where his profit sharing is around $80k.

I’m blessed to be in a circle with a bunch of young hustlers who make things rain. They always look for solutions.

4   B.A.C.A.H.   ignore (1)   2021 Nov 25, 10:23am     ↓ dislike (0)   quote   flag        

Eman says
I’m blessed to be in a circle with a bunch of young hustlers

Said Casey Serin.
5   FuckCCP89   ignore (6)   2021 Nov 25, 11:18am     ↓ dislike (0)   quote   flag        

Be careful with Turo: there has been a number of horror stories wrt getti fair compensation for damage done to high-end cars.
6   FuckCCP89   ignore (6)   2021 Nov 25, 11:26am     ↓ dislike (0)   quote   flag        

Also, Turo does not allow you to use your own commercial insurance and their coverage is limited by $75K, iirc. So renting out a $130K vehicle via them is asking for anal rape.
7   mell   ignore (6)   2021 Nov 25, 11:51am     ↓ dislike (0)   quote   flag        

True but if you rent a nice ol solid clunker Turo is great for the renter. Much cheaper
8   Eman   ignore (0)   2021 Nov 25, 2:03pm     ↓ dislike (0)   quote   flag        

FuckCCP89 says
Also, Turo does not allow you to use your own commercial insurance and their coverage is limited by $75K, iirc. So renting out a $130K vehicle via them is asking for anal rape.


Good to know. I’m not into this biz so I don’t know all the details. I know he leases a couple MDX’s for $480/mo payment while leasing it out via Turo and making about $1.2k/mo on average as he shown here.

My wife upgraded to a Model X so we had an extra 2017 MDX. I asked if he wanted to manage it, and I’ll split the profit with him. That was how I knew. At $600/mo after the split, it wasn’t worth the effort so we passed the car down to my little sister.

In our line of work, we get paid to solve problems while others see nothing but problems. that’s why we always look for solutions.

9   Eman   ignore (0)   2021 Nov 25, 2:05pm     ↓ dislike (0)   quote   flag        

mell says
True but if you rent a nice ol solid clunker Turo is great for the renter. Much cheaper


He has a 2001 MDX where he leases it out for up to $70/day. He’s keeping it as it’s making money hand over fist. He said it takes some efforts, but not bad. At 31 years old, he’s still hustling hard. He drives a truck during the week for work and drives the Model X P100D on the weekends while having someone making payments on it.
11   Eman   ignore (0)   2021 Nov 25, 2:09pm     ↓ dislike (0)   quote   flag        

This was his flip earlier this year. Netted almost $1M profit. Not bad for a 34-year old guy who came from. Nigeria. This is truly the land of opportunity for us immigrants.

https://www.redfin.com/CA/Oakland/795-Calmar-Ave-94610/home/1861469?600390594=copy_variant&231528114=control&utm_source=patrick.net&utm_medium=patrick.net&utm_nooverride=1&utm_content=link&utm_campaign=patrick.net
12   Eman   ignore (0)   2021 Nov 25, 2:10pm     ↓ dislike (0)   quote   flag        

I repeatedly said we, investors, want cheap real estate prices while homeowners are the ones who drive up real estate prices. I hope you guys see the picture now. It’s not our fault that buyers are willing to pay a lot for our flips.

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