The Secret to Quitting Your Job With Real Estate

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Landing your first multi-family deal is much like pushing over the first in a series of dominoes: The second and third deals fall in rapid succession. In most cases, it is possible to replace your income one to three years from the moment you decide to change your life.

Brad Tacia’s story adheres to this Law of the First Deal. He was an engineer by trade, working for an auto parts manufacturer in Detroit. Though he survived the recession, Brad knew that he needed a backup plan. He began his foray into real estate with single-family homes, using a portion of his 401(k) to facilitate the investment.

Brad reached a turning point when he realized just how much of his daughter’s life he was missing. To speed up the process of achieving financial freedom, Brad and his wife used the Dave Ramsey program to cut their expenses and pay off their house—which allowed them to fund their first multi-family deal with a home equity loan. Brad’s second and third deals followed quickly on the heels of the first, and in two years, he had replaced his income. Brad quit his W-2 job, and now he controls 160 apartment units total. Listen as he explains his experience with Dave Ramsey’s Financial Peace University, how he funded his first three multi-family deals, and his secrets to becoming financially free in just two years. He also shares his knowledge around syndicating deals as well as the details of how his life has changed, making every day feel like Saturday!

Key Takeaways

[4:26] Brad’s motivation to try real estate

Recession hit in 2008
Depressing time, had to lay people off
Wanted to develop Plan B
Read Rich Dad, Poor Dad and The Millionaire Real Estate Investor
Initial ten-year plan to buy ten single-family houses

[6:36] What precipitated Brad’s shift to multi-family

Daughter asking, “Do you have to work tomorrow?”
Desire to spend more time with family
Realized could achieve financial freedom faster with multi-family

[7:16] How Brad funded his first multi-family deal

Used Dave Ramsey program to cut expenses
Paid off house
Funded 12-unit with home equity loan

[8:14] Brad’s experience with Financial Peace University

Listened to Dave Ramsey audio discs with wife
Employed common sense budgeting
Made lifestyle adjustments (less eating out, cash budget for groceries)
Paid off credit card debt, auto loans and house
Felt safe in case of another downturn

[11:23] Brad’s next two multi-family deals

Second deal six months after first
Bought another 12-unit with partner (property manager)
Third deal (63-unit) four months later
Bought 50/50 with different partner (realtor)
Replaced income in under two years

[13:23] How Brad developed the confidence to do his first multi-family deal

Reading books
Training, networking
Honed skills in financial analysis

[14:01] Brad’s advice around funding multi-family deals

Look for cheapest method
Home equity loan only 3.3% interest
IRA (taxes, penalty for withdrawal)
Syndicating

[15:19] Brad’s experience syndicating deals

Awkward to ask for money at first
Not as difficult as imagined
Frame as offering opportunity for 15% average annual ROI

[16:41] Brad’s secrets to becoming financially free in two years

Get your expenses under control
Employ courses that teach step-by-step process
Income will snowball

[18:00] The significance of the first deal

Learn the language
Contacts, team in place (property manager, banker, inspectors, real estate brokers)
Understand mechanics of deal
Become addicted to cashflow
Want to grow, take pressure off day job

[19:27] How Brad found time to do real estate on the side while working a demanding job

Full-time engineering manager with 23 employees (50-60/hour weeks)
Looked for deals before work
Made phone calls during lunch hour
Saw apartment buildings after work, weekends

[20:20] How Brad’s life has changed

Building stronger relationships with family, friends
Working out, eating well
Getting enough sleep
Completing projects had put off
Bonding with coaching students (The Deal Maker Blueprint Training & Certification)
Quitting full-time job allows to think more strategically, design life to make impact

[22:30] Brad’s perfect day