My Journey into Real Estate

During my first job interview after college, the interviewer asked where I saw myself in ten years. I said, “My long-term goals are in real estate. I want to build my own little real estate empire,” to which he smirked.

I wasn’t seeking a job so much as a mentor. I needed to find a place that had the greatest opportunities for learning. Practical knowledge would pay much higher dividends in the future than an employer offering higher pay but fewer chances for learning.

When given the opportunity to speak to college students, I tell them, “Get your degree and work to learn, you will earn later.” I suppose wisdom is just a willingness to take your own advice.

My Second Interview

My next interview was with a man who owned a successful real estate brokerage. I got the sense he was looking for an infusion of youthful energy in the office. He had exactly what I was looking for—the heart of a teacher.

I would begin an apprenticeship with him that would serve as the foundation for my learning sales & real estate investing.

Before leaving that day of the interview, I asked my future mentor if there was anything I could be reading to prepare for a successful career in sales & investing. Impressed by the question, he handed me a book called The Richest Man in Babylon by George Clason.

It’s a short book that I finished in two days. It would serve as the impetus for my inclination to save & invest a large portion of my income. From that day forward, I would view dollars invested as little employees I would put to work for me.

My First Real Job

I showed up to my first real job everyday with a childlike enthusiasm, offering to help anyone who needed it. I fetched coffee, stuffed envelopes and painted offices. There was no job too menial or secretarial. I learned to view what I was doing in addition to what was expected of me as an investment in my career.

“You can get everything in life you want if you will just help enough other people get what they want.” – Zig Ziglar

My aim was to get around guys doing deals—pay was almost irrelevant. I trusted money would come as a by-product of developing myself.

Our office was chock-full of agents old enough to be my Uncle Lou, so I saw that first job as a ticket to accelerated learning. At times, I felt incredulous THEY were paying ME! I would badger the agents with questions about contracts, deal structure, leverage and negotiations. I would listen in on calls, take copious notes in a spiral, then study when I got home.

Heeding Zig Ziglar’s advice, I turned my car into a “mobile university.” In those early years, I was reading every book about sales and real estate I could get my hands on. I would finish a book a week riding in Houston traffic.

The Value of Mentors

It is said when the student is ready, the teacher will appear. Since there are no guarantees, I went searching for a mentor. My only criteria was they possess the knowledge and skill set I wanted to acquire.

The importance of establishing a good rapport with a coach or mentor can’t be overstated. It is crucial for your development to ask for objective feedback.

Unfortunately, getting a clear sense of your weaknesses is more difficult these days because American culture has softened. People are much less likely to be honest about your flaws lest they hurt your feelings.

Armed with awareness of America’s “feelings” obsession, it is incumbent upon YOU to make your mentor feel comfortable criticizing you. Being made aware of your shortcomings and inadequacies is a blessing.

You need to know your character flaws, weaknesses and uhh…verbal ticks. Your mentor is your biggest asset to your development. They’re also in the best position to gauge your progress.

Millennial: “But I feel like…”

Gary Vee: “Nobody gives a f*ck about your feelings, bro. Put your head down and work. Until you’re 29. Just work.”

Everything gleaned from your mentor about yourself and the world around you will allow for easier absorption of new concepts. As an example, a highlight of my 2015 African safari was seeing a ferocious big cat hunt impalas one night. Because I’ve eaten Cheetos with ham sandwiches since I was a kid, I thought I was looking at Chester Cheetah in the wild.

To be sure, I whispered to the guide, “What are we looking at?”

In a low voice, he said it was a leopard hunting for dinner. He explained that a leopard is like a cheetah (relatable for me because I love Cheetos), except leopards are nocturnal and have rosette pattern spotting; cheetahs hunt in daylight and have solid black spots.

Easily understood. Now imagine explaining a leopard to someone who eats only Funyuns. All learning makes other learning easier.

There is no perfect mentor. We all have strengths and weaknesses. You’re doing yourself a disservice dismissing someone entirely due to a few negative aspects of their nature that haven’t been honed.

If your mentor angers easily, gets overwhelmed by stress or uses animal illustrations to make a point, ask yourself if the benefits compounded outweigh the costs.

The most important qualities for your mentor to possess are integrity and the heart of a teacher. Most other quirks can be overlooked.

Think long-term. Get what you need to become independent and move on.

Be mindful that you’re mostly learning from his or her example. Being taught through observation what not to do can be equally valuable.

You’re going to pay it forward and be a mentor someday too.

I’m a Homeowner!

The rigorous education and accumulation of knowledge I received from my mentor soon resulted in sizable commission checks. My goal was to save enough money for a down payment on my first house.

At that time, you could obtain a “stated income” loan, which basically meant no verification of  income or assets. The downside was a 7.5% interest rate. It didn’t matter to me—an $8,000 down payment and a few signatures officially made me a homeowner!

Once I moved in, several of my neighbors faced foreclosure. I could’ve easily been one of them. My mortgage payment was almost half my take-home pay. I would force myself to live on grits, ramen noodles and Hamburger Helper, while working long hours to increase my income.

During the mortgage crisis, accusations of banks engaging in predatory lending permeated the news cycle. I didn’t see myself as a victim. I knew what I signed up for and was determined to pay back the money I’d borrowed.

Knowing what I know now, I would’ve bought twice as much real estate through the years as I did. Home values in the areas I’ve purchased have nearly doubled and rents have risen steadily.

America’s First Millionaire

America’s first millionaire was a German immigrant named John Jacob Astor. He was a merchant who traded in furs, tea, silk and fine china. Today, we might call him a salesman!

Astor became wealthy by investing the income earned from his primary occupation in real estate. It didn’t take long before he was widely recognized as “New York City’s landlord.”

On his deathbed in 1848, he reportedly said, “Could I begin life again, knowing what I now know, and had money to invest, I would buy every foot of land on the island of Manhattan.” When Astor died, he left over $20 million to his heirs, which is the equivalent of over half-a-trillion dollars today.

The Value of Roommates

Shortly after buying my first home, I arranged to have a roommate so there’d be help paying the mortgage. He was starting law school and studied more than anyone I’d ever seen. One night taking a break from studying, he walked into my room and said to me, “You’re the most driven guy I know. Some of your habits are unreal.” It was a classic case of the pot calling the kettle African-American.

We’d never expressed admiration for each other’s work ethic until that night, but he had remarkable habits too. It was then I realized the importance of surrounding yourself with people who encourage and inspire you.

In the previous post, I talked about protecting your time, energy and attention as if your better future depends on it. In no place is this more applicable than the people you choose to be around. If it’s true you’re the average of the five people you spend the most time with, then prudence is paramount in your selection of friends and roommates.

Because you’ve known someone since high school is not a good enough reason to dedicate one night a week to hanging out with them, much less live with them. Living with roommates to maximize savings is smart; living with someone who has little to offer beyond splitting the bills is not.

“Never underestimate your susceptibility to the influence of those whom you spend the most time.”  – Man Overseas

The early years of your career should be utilized for the following:

• Find mentors
• Cultivate relationships with like-minded ambitious people
• Develop yourself
• Payoff debts
• Accelerate savings

If your roommates and friends are striving to improve themselves and determined to do BIG things, it is a surefire way to level up. You will feed on each others’ grind.

My roommate and I almost never partied. We went to zero happy hours. And rarely saw the inside of a bar or restaurant.

He went out once in an entire year—to Henry Hudson’s Bar in Houston—for a few hours to shoot pool.

We had little time for girlfriends. Wouldn’t dream of going to Coachella or Cambodia—we’d never heard of such ridiculousness at that age.

We were in our early twenties, full of energy and ambition, solely focused on building for the future.

Where Are They Now

My former roommate is a prominent criminal defense attorney building wealth through real estate investments. He texted me saying how much he loves the blog, and that he’s proud of me. Fifteen years later, we’re still encouraging each other. I’m incredibly proud of him too—he  worked his f*cking face off to get to where he is today.

I paid $80,000 for my first house and still own it. After obtaining a loan for $72,000, I allocated $18,000/year to paying it off, which I did by my 26th birthday. It would become my first rental property. I celebrated by having my first steak dinner inside a restaurant. When the waiter asked how I wanted it cooked, I said, “I guess just put it on the grill. What else do you guys do?”

Those 80,000 little employees I began putting to work all those years ago earn me a net return of $1,000/month. For the rest of my life. Then I’ll leave it to my heirs.

I imagine the guy who interviewed me for that first job is smirking at some kid today.