Who is the Friendly Investor?
I am Nathaniel, owner and operator of The Expert Home Buyers. I am a real estate investor and entrepreneur focused on creating a life of financial freedom and responsibility for myself, my family and all of my friends. I truly believe that everyone deserves to be free from the constraints that our society has put on us financially, from student loans to iPhones.
I am going to cover a lot of topics related to becoming financially savvy. In order for us to become savvy with our money, there is a lot that we must unlearn about how money works and how we can get it to work for us. We will cover more of this on a later post.
The primary driver for me financially is my real estate investing, and so that is going to be the most focused on asset class here. I arrived at this conclusion after doing a lot of research into stocks and other forms of investing, and concluding that all of the benefits that come along with owning real estate mean that it has got to be the bedrock for investing to financial freedom.
My First steps in real estate
I followed a conventional path to owning my first home. Save Save Save! This is one of the easier ways to get into real estate, and also the most time consuming because you can only invest what you earn and have leftover after all of your expenses (expenses includes going out and partying). I even lived at home with my amazing parents in order to save money on rent.
I was fortunate enough to buy a condo in southern california that appreciated over the few years that I lived in it, and was able to sell it for a nice little profit. This was just luck and circumstance more than anything else, but it got the wheels turning in my head.
I knew that in order to reach financial independence that it would take me leaving California and seeking out a place that had lower costs of living, and more potential for some lower priced real estate.
My girlfriend at the time, amazing wife now, and I decided to move to Oklahoma and start our new lives there after we had graduated from Cal State Long Beach.
It was our intent when moving to Oklahoma to purchase a for ourselves, using some of the money from the condo sale as a downpayment, and then start looking for an investment property. It did not end up working out that way of course.
Real Estate Investing By Accident
About 4 months after moving, I had finally found a house that was going to be amazing for the two of us. It sat on almost 7 acres of land (something we really wanted was space) and was the perfect size for us to start setting up our roots. Best part about it was that the owners were in need of getting it sold, and had priced it accordingly. We were able to get this house for about 60% of after repair value. What we didn’t realize at the time was that Brittany was going to be getting an amazing job opportunity over an hour and a half away from this new dream home.
We both knew that sort of drive was not the reason we moved out of California, but neither opportunity (the job and the house) seemed worth giving up. It didn’t take us long to realize that turning the home we thought was going to be for us into an investment property was the way forward.
So we could have decided that purchasing the house wasn’t the best idea considering the fact that we weren’t going to live in it, and that we were renting a shithole at the moment. What we did instead was buy it, rehab and get a renter into it. I hadn’t learned the BRRRR method yet, so I didn’t get the last R done, Refinance. This home has provided the cash flow that has allowed me to funnel money back into my investing for many years now.
We cannot allow opportunities to pass us by because of what we don’t know, or what we are afraid might happen.
Who knows if I would have found another house that was such a great deal. What I did know at the time, was that this house was priced very well, and that at the very least, I could put some time, money and effort into it and get it sold for a profit. At the most, it was going to get me years of cash flow. Yes, things could have gone wrong (and some did), and those are always the things that we tend to dwell on, but I wasn’t afraid of failure, and thank goodness!