Ever wonder what it takes to grow a real estate portfolio quickly? Is the effort and hustle worth the potential rewards?
My name is Johnoson Crutchfield, and I’m excited to share my personal story about the challenges and triumphs of growing a real estate portfolio. Here’s a glimpse into my adventure in real estate investing.
Getting Started
I’m three years into my investing career, balancing a full-time career as a professor and a busy family life with my wife and two kids, ages five and seven. My wife, although passively involved, is a crucial financial and strategic partner. Together, we aim to grow our family’s wealth to enjoy life’s experiences and give back to our local church and community.
The Importance of Knowing Your Why
When we started, we took the time to think about our “why.” It’s crucial to understand your context and background, making decisions that impact your family positively. Many are eager to jump into real estate, buying or flipping properties, but it’s essential to consider how this will affect your family and community. Our goal in real estate investing is not just financial growth but to contribute to our community and enjoy our lives.
Our First House: A Learning Experience
Our journey began when my wife and I bought our first house at 19 in Jackson, Mississippi. We followed the traditional path: find a real estate agent, buy a house, and furnish it. We didn’t negotiate or consider if it was a good investment; we just followed what society said we should do. A year later, we couldn’t sell it for a profit and ended up becoming landlords out of necessity.
The Journey of Becoming Landlords
We rented out our first house on Craigslist and, luckily, had decent tenants initially. Over the years, we moved to Louisiana and repeated the process, buying houses at retail and renting them out when we moved. Our early investments were a mix of good and bad experiences, but they taught us how to manage properties and tenants.
Learning Through Experience
Despite not getting good deals on our first properties, the experience was invaluable. It gave us a framework for handling tenants and managing properties. When we moved back to Mississippi, we found a market with high rents and low property prices, which was perfect for our investment strategy.
Our First True Investment Property
My first true investment property was an owner-finance deal. I reached out to a seller on Craigslist, who was willing to finance the property for $1,500 down. We closed the deal quickly with the help of an attorney. This experience taught me that unconventional strategies could work if you’re willing to take the initiative and reach out.
The Challenges and Rewards of Growing Fast
Growing our portfolio to 80 units in about three years was no small feat. It took a lot of work, but looking back, I wouldn’t trade the experience for anything. However, growing fast isn’t always the best approach. It can strain your time, finances, and relationships. It’s crucial to think carefully about whether rapid growth aligns with your long-term goals.
Reflecting on the Journey
While I’m proud of our fast growth, I also recognize the toll it can take. Now, we’re more selective in our purchases, focusing on properties that will provide a solid return without overwhelming us. Growing fast takes a ton of work, but with the right mindset and strategies, it’s possible to build a successful real estate portfolio.
Growing a real estate portfolio quickly is a challenging yet rewarding journey. My story highlights the importance of knowing your “why,” learning from experience, and balancing growth with sustainability. Whether you’re just starting out or are a seasoned investor, I hope my experiences offer valuable insights and inspiration.
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