WARNING The first 3-5 Years of your Real Estate Investing Journey are Going to Feel Slow and Painful

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good morning good afternoon good evening

folks michael zuber one rental at a time

back with this tuesday guest and great

friend of the channel and content

creator of the four three two one

strategy in the great course how to get

started one rental at a time mr

lumberjack how you doing sir i’m doing

awesome mike and excited to talk about

this one because i think not enough

people talk about this awesome so we

have done a great job of talking about

making work optional in 10 years we’ve

talked about the cheat code to wealth

all of these things

we have been clear that it takes time

i think what i want to do here

is not only talk about the fact it takes

time

but also highlight that the first three

to five years

suck just

suck they’re slow you get frustrated

daily discipline feels like you’re stuck

in mud

it just it

until you have the option to recycle

capital

it sucks

once you can recycle capital it is

life-changing so

do you agree the first three to five

years suck

that’s an understatement yeah

that’s my word you might choose to use a

different word yeah

yeah i mean

and

especially if you self-manage

especially if you self-manage and most

investors most 72 72

are self-managing certainly when they

start

and so

you will

you i always tell people as a landlord

i get to see the state of humanity on a

daily basis

yeah um

yeah

and it’s and and some of it’s really

cringe-worthy um i know in the beginning

um i took offense when people said

something about my property because i’d

worked hard on it i did the work yeah um

i had picked what i picked and i planned

what i planned and i’m like if you don’t

like it

gtfu

yeah

you know

so and for me it was you know

it was it was re i mean really hard 9th

grade dropout was really hard to get

people to pay attention to me was really

hard to get contractors to show up

um

everybody wanted to be paid up front

uh you know it because that was the that

was like going into what was starting to

boom you know and so that was really

really hard and so

yeah i think the the first few years i

mean

it’s kind of like anybody that started

their real estate journey in the last

three years

this is not what it’s like

this isn’t what it’s like it’s not

it’s not it’s there’s going to be ebbs

and flows ups and downs there’s going to

be projects that go sideways there’s

going to be contractors that lie to you

there’s going to be tenants that lie to

you then you’re going to find some great

tenants that with you for a long time so

it’s really just kind of getting your

bearings

um but the only thing that i would say

is you it it’s a great lesson in not

taking things personally yeah you know

yeah again right people read my book my

first tenant horror story and we did

everything right still a horror story

yep uh

it’s funny mine was two deals was two

yeah

all three of us had nightmare first

tenants yeah and again i belie again i

i don’t know this for certain but it

certainly feels this way to me that real

estate tests you on purpose they’re like

of course how committed are you

exactly are you gonna get washed out

like you did in the stock market michael

are you gonna have to find something

else yeah it’s um

it tests you but again i think

for me

i got i was fortunate in timing

because i was able to recycle or do a

cash out refi just after three years on

my first deal

and

because again california markets are

very up and down they’re nice they are

steady right

yep uh so

that’s what it turned that that was

life-changing for me for most people

it’s five years because it’s more steady

any in most markets but when you can

recycle that first for me was the first

20 grand

and and oh by the way get extra i took

out too much granted

but then that became two more houses

i was like

oh my god no multiplier i’m like this is

legal

yeah

i can’t i got nothing left in there in

fact i have negative money

because i took more out and that gave me

these two

and then oh by the way time continues on

those two became this and then that

became that

it’s but

until you can res until you have the

option you don’t have to but until you

have the option to recycle capital

it’s hard i know that saving money sucks

we we we made a game of it man we got

down to 50 that’s hard to do

but yeah

how did we keep buying we freaking saved

money and saving money is slow greg

dickerson would kick me in the ass

because he would have said go make more

money which of course he’s right if i

had to do it again i would i would have

other side hustles but yeah

my mind wasn’t there greg’s an

entrepreneur i’m not i’m i’m like i can

earn money and i can save i didn’t i

didn’t know about being entrepreneurs

but

yeah

i mean the first three to five years

it’s it’s hard i know like when you make

that first purchase and you get the deal

you’re so excited first off go take a

picture in front of it that is something

i’ve never done which is stupid

so you have something to remember

and then

go get the next one yeah

yeah i mean i think that you know

there’s never been a better time to

monetize gifts talents and abilities

than there is right now today

you know whether and doesn’t matter and

the more niche it is the the more

opportunity that you frankly have

because if you’re really good at

something that’s a little bit odd weird

or different

people will seek you out and they try to

find you just make sure that you know

that you have some sort of an online

presence and it’s like you can open up a

business and have a web page

and do all this stuff have google

assistant you can do all of this stuff

for like less than a thousand bucks yeah

like

and that that’s the opportunity so yeah

the the first three to five years and

what we do it absolutely sucks it was

horrible i mean i was flipping cars i

was buying cars and selling cars that

would make me a little bit extra money

i was still making six figures but i

would still any time that i could find

another pocket to make a little bit more

and then finally when the housing market

really started to move and i could i

refined my the house i was living in i

revived that how many years how many are

just curious that was um

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so

i think right around the same three it

was i think three three or four it was

right around there yeah it still wasn’t

i was able to pull out like a hundred

and that bought from that bought me a

try that bought me a triplex and

that bought me a triplex and i found a

deal on craigslist for 115 grand i

bought that property

uh i put the

because it was an investment i had to

put the 20 down but when i bought that

property i knew i was buying it for the

guy was just like he’s like yeah i’ve

gotten 57 phone calls this morning i was

like yeah i imagine he just went or

priced it i bought it i literally

brought with me a pns we signed that

right then i gave him a deposit check

um we were done and then after i closed

within 60 days i actually was able to

get a heloc on it for another 75

thousand dollars

so it was like 120 then create you know

doing that against my primary and then

doing that you know buying this three

three plex and that was making me 700

bucks a month and then buying the other

small house but then being able to lever

on top of the other side of that and get

another 35 000 in cash that bought me

another dupe that bought me another

triplex that was making me like eight or

900 bucks a month

and there you go that was all over kind

of like a two or three year period so

what i want people to hear from this is

um the first three to five years sucks

for everyone and what i mean by sucks is

it’s slow it tests you yep like you say

uh

you’re in the people business and people

people are gonna disappoint you oh yeah

and um

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just hold on yep

and once you can recycle capital again

you don’t have to recycle capital but

when you have the option to recycle

capital it is

it is the sign that you’ve gone to the

next step right you have got you have

come out of the choppy waters to a

calmer area because you have the ability

to to balance ups and downs when you get

to that point so

um

i want to tell people it’s worth it it’s

not fun uh i’ve shared lots of crazy

stories over the years but uh

yeah that that’s what it means for me

the first four or five years suck i

can’t help you it’s it’s slow for

everyone

it just is so uh matt how can people

find you lumberjack landlord on youtube

8 p.m thursday nights eastern time mr

and mrs lumberjack and 11 30 a.m eastern

time on sundays and

at lumberjack landlord on instagram if

you want to up your landlord game yeah

and he puts out the real stuff none of

this

silly thing so thank you for all you do

buddy thanks mike appreciate it yep

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