brandon turner - 7 years 7 figure wealth

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A Tale of Two Landlords 2

Living Life on Your Terms 2 Investing is Dull, Boring, and Explosive 3 Why Real Estate Beats Other Investments 4 Saving the Princess & Knowing the Game 4

Understanding the Rules of the Game 5 How to Make a Million 5 Why I Invest in Multifamily Properties 7 Final Preparations 8

How to Read the Road Map 8 Years One – Seven Road Map 9-16 Wrapping Up 17 Final Thoughts from Brandon 18

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A Tale of TwoLandlords...The phone rings for the second time thatnight, waking him from his less-than-restful sleep. A sink is plugged and thetenants need it fixed. Now. He gets up,drives thirty-miles, and quietly knocks onthe door of the tenants who called. Theywelcome him in with a look dirtier thanthe floor he needs to wade across to getto the kitchen.

The giant hole in the wall is larger thanthe last time he was here and the smellof cat urine is clearly evident above thesmell of fresh cigarette smoke. The leak

takes only seconds to locate but almostan hour to fix while thetenants pace through thekitchen complaining ofthe ant problem that won'tgo away and the “dirty,loud neighbors” who livedownstairs.

Finally, he wraps up his gear and headsfor the door. He passes the new 52” flatscreen TV, turns before leaving, and asksif they have any of the rent they haveneglected to pay for the past threemonths.

They look at him with disgust and explainagain how difficult it is to find work sincebeing fired from the factory, and that theyneed to buy clothes and food for theirchildren first, so he would have to wait.

He walks out the door into the cold nightand decides he can continue making thepayment for a few more months beforehe will have to give this property back tothe bank as well and file for bankruptcy.

After all, this was the life he signed up forwhen he took on the role of “landlord.”

------------------------------

She wakes up at 8:30 in the morning,excited for another day. She puts on her

jogging shoes and starts her morning runaround the neighborhood of the condoshe is staying in. She notices a newhome for sale nearby and makes amental note to call her agent about it

later.The sun is already hot but the oceanbreeze ads the cool touch she needs tofinish her jog. Back at the condo shechecks her email while staring out at thewaves breaking upon the shore. A heavysnowstorm was raging back at home, andthree tenants moved out this week, buttwo were quickly replaced and the thirdwould be soon.

Her manager sends her the weekly reportwhich she reviews and sends a quickreply with a few marketing strategies shewould like to implement to attract higherpaying tenants. She gets on a quickvideo chat with her real estate agent andlearns about a new apartment complexfor sale, and within twenty minutes shehas an offer submitted to purchase theproperty.

She sends an email to her accountant,acquisition supervisor, and several “birddogs” to wrap up her work for the day bynoon. She begins her walk in the warmsun to her daily Spanish lesson anddecides that she might stay here forseveral more months before headingback home.

After all, this was the life shesigned up for when she took onthe role of “landlord.”

Choosing to Live Life onYour Terms

Do you want to be landlord #1?

Does answering calls at all hours of thenight, chasing rent, and flirting withbankruptcy make you stand up and shout“me!”?

Of course not!

No one gets into real estate investing tobe landlord #1, yet for some reason –most landlords end up this way. Thereare rumors about investors who make akilling off real estate and spend moretime watching their golf ball than theirinvestments, but this is not the life thatactually occurs. Why the disconnect?

Let me give you a hint – its not luck. Realestate investing is a proven technique to

Page 2 7 Years to 7 Figure Wealth By Brandon Turner Real Estate In Your Twenties.com


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create large sums of wealth over time. Byfollowing simple rules and guidelines,investing can be profitable, fun, andrewarding. However, most would-be-investors simply jump into the gamebecause of a television show they haveseen or a get-rich-quick course they sawon late night television.

Take notice that the title of this e-book isnot “Thirty Days To Seven Figure Wealth”but “Seven Years to Seven FigureWealth.” Building wealth takes timeand it takes hard work. You do not getto be “landlord #2” without putting inyears of hard work and dedication.However, you do not need to “passthrough” the life of landlord #1 first in

order to get to landlord #2.The goal of my real estate blog , found atwww.RealEstateInYourTwenties.com isto teach you ways to invest in real estatewithout slaving away at maintenancecalls, hassling tenants, and chasing rent.

Yes, there are examples ofindividuals who have madehuge sums of money in realestate in little time, but thoseare the exception and not the rule.

Investing is Dull, Boring,and ExplosiveInvesting in real estate does not have tobe difficult. It does not have to becomplicated. In fact, investing in realestate is incredibly simple when you boil

it down to its basic parts.

In the book “Rich Dad's Guide toInvesting,” the author writes, “Investing isa plan, often a dull, boring, and almostmechanical process of getting rich.”

How can this be? Why do so manypeople fail at making money in RealEstate then? The answer is one of two,and surprisingly simple:

1.) They don't have a plan 2.) They get bored and try to getfancy

That's it. If you want to build wealth, yousimply need to overcome those two

problems. In other words, to build wealthyou need to:

1.) Have a Plan 2.) Stick to that Plan.

That is what this book is about. Creatinga (good) plan and learning to stick withthat plan. Once you have a plan, gettingfrom where you are now to where youwant to be is as simple as following apath.

You've probably seen the investmentfirm Fidelity's television commercials inwhich people walk around their daily lifewith a path at their feet made out ofgreen arrows, illustrating the importanceof creating a financial plan for yourselfand simply sticking to that plan. This is

the exact concept I am referring to, but Iadvocate using real estate investing toget there.

The good news is – that if you can stickby a simple plan of investing, you willsucceed. You will build wealth and findfinancial freedom. Real estate investingis explosive, in that each year you willearn more and more wealth. This is thepower of compound interest. Real estateenables not only you to earn money, butwill allow your money to earn money.


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Understanding TheRules of the GameBy now, you must be wondering whatthose patterns and rules are that makeinvesting so easy.

Its not a secret and this is not a“program” like those late nightinfomercials. This is simply the rules thatI, and thousands of other successfulinvestors, have used to create passiveincome from real estate. Like knowingwhere the hidden bricks are in Mario thatgive you “fire bullets,” these are thesimple fundamental rules you need tofollow when investing in real estate.

1.) Cashflow is King:Never buy a propertythat loses money each month. I'llrepeat that again: Never buy aproperty that loses money eachmonth. If you live in an area thatpositive cashflow is impossible,invest in a different area. If youwant to build wealth faster, reinvestthat cashflow. If you want tosupplement your income, live offthat cashflow. The choice is yours.

2.) Buy at aDiscount/ForceAppreciation – thesimplest explanation ofgood business is this: buy low, sellhigh. Another term you may haveheard is to buy wholesale and sellretail. Real estate should be no

different. In addition, you can alsoforce the property to appreciate invalue by improving the condition ofthe property or increasing theincome it produces. There aremany techniques you can use tobuy properties at steep discountsor force appreciation, and you canread about many of them at myblog.

That's it.

Those are the two major rules you needto follow when buying real estate.

The exact pattern may change, and I willbe soon discussing some specific rules

that will govern how much cashflow andequity we willneed to have inanypropertypurchased, butthefundamentalsare simple.

Buy propertythat has bothcashflow andequity. It reallyis that simple.

It's time to go from “theory” into “practice”and learn how to make a million dollars inseven years buying only five properties.

How to Make a MillionAs the title of this book suggested, Iam going to explain the exact steps tomake over a million dollars in realestate while part time investing in justseven years. The rest of this book will focus on theexact steps needed to get to this point.

While the names and addresses aremade up, each of properties are realexamples of properties I have eithermyself purchased or have seen at theseprices. They are real-world examples butin order to find them, you need to dig.

Not every property is worth buying. Inreality, less than 1% of propertiescurrently for sale are worth buying .Yes, you can buy almost any property attoday's low prices and still make averagereturns on your money. However, as thephrase goes, average returns are foraverage investors. We want to let themasses blindly invest in normal propertyand you are going to focus only on thebest deals.

By focusing only on the best propertiesat the lowest prices, you will take lesssteps to build financial stability andwealth. As I discussed above, this planrequires only five purchases over aseven year timeline. This is, on average,less than one each year.

This plan is a conservative strategy at


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investing in real estate, but maximized toproduce the highest results the fastest. Ifyou have more money to invest or moretime to commit you can really speed upthis plan.

On my blog, I discuss several differentstrategies to invest in real estate, takenfrom many different perspectives.However, for now I am going to assumethe investor in this plan has a stable fulltime job, a small amount of savings, andgood credit. If this is different than you,thats okay. This plan is tailorable if you

just put your head to it. For example, ifyou don't have the initial down paymentamount of $20,000 – thats okay. Yourstrategy will require a little bit of

tweaking, but the end result can be thesame.

You could earn that initial $20,000 byflipping a home, saving like crazy for thenext year, forcing more equity doing aremodel, grabbing a partner to help fundthe down payment, using a Home EquityLine of Credit, or simply make your firstinvestment your primary residence, usinga 3.5% down FHA loan – thus needingonly $3500 for a down payment. Checkout my article on ways to invest in realestate when you are broke.

Tony Robbins says, “You don't lackresources, you lack resourcefulness.” Ilove this quote and use it all the time forinspiration. It is never more true than inreal estate investing. Just like your momtold you as a child – you can do anythingyou put your mind to. If you want to use

real estate to earn significant passiveincome over the next several years, justput your mind to it.

It's time to get into the details of what theseven year plan will look like. Thefollowing six items are rules I am going tofollow in mapping out the seven-yearplan. These are not lofty, unattainablegoals but actual rules that I live by. Theseare requirements that every property Iwant to buy must fit within.

We will start with $20,000.00investment. As we just talkedabout, there are many ways to startthis plan without the initial $20,000.However, this is the simplest way.

Also note – this is the only moneyever needed to be used in thisplan. If you have more than$20,000 to invest, or can add moreeach year – you can work this planeven faster.

We will purchase properties for20% discount from their value.Again, it is important to always buyat discount. When I buy, I usuallytry to buy for 30% to 40% discount,but in order to make this plan workyou would not have to be that strict(but if you can, do!) This mightmean it takes twenty or thirty offerson different properties before youget one accepted, but if you askany seasoned investor, 20%discount is not a difficult number toachieve.

We will put 20% on eachproperty we purchase. Mostbanks today require 20% of thepurchase price. Yes, it is possibleto put less than 20% or more than20%, but for the purpose of thisdemonstration it is a good numberto use.

We will force a 10% appreciationduring the first year: Allproperties have room forimprovement. I will make sure thatby decreasing expenses,increasing rents, and improvingthe property, the value willincrease by 10% during the first

year. Again, ask any seasonedinvestor - this is not a difficult featto accomplish.

We will assume that theproperties will appreciate 4%per year. Except for the first year,the property will appreciate at 4%per year. Economists at FreddieMac and Fannie Mae have used5% as an average number, but tobe conservative, I will use 4%.The properties will cashflow$200 per unit, per month: This isanother actual rule I have whenbuying property. A single familyhome needs to cashflow at $200per month. A duplex needs tocashflow at $400 per month. Afour-plex needs to cashflow at$800 per month. This means after


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Final Preparations

A journey of a thousand miles beginswith a single step.

As you work your way through the nextseveral pages, and years, take your time.Truly seek to understand each phase.This is not a complicated path, but it iseasy to get lost in themath.

I also recommend thatyou print this guide out,as you will get a lot moreout of it. Furthermore,make sure to take notes

so you can properly remember all youare learning and apply it later.

The best way to really learn this is toshare it with someone you know. Learnby teaching. Get excited about thepossibilities and share it with yourspouse, your family, or your friends. Seekto internalize what you are learning.Then, go out and do it.

For the rest of this book, one page hasbeen dedicated to each year of the sevenyear guide. If you have any trouble orwould like to know more specifics, checkout my blog athttp://www.RealEstateInYourTwenties.com.

How to Read the RoadMapTo begin year one, wewill make our firstpurchase.

I am going to use very simple, roundednumbers for the purpose of explainingthis plan. Obviously, the homes that youwill buy in the real world may not be theexact prices we will use here, but thatsokay. It's the principles that matter.

Value LoanAmount

Equity SavedCashflow

Year I will be using the above chart as astarting point to explain the seven yearroad map. The chart consists of severalimportant numbers that change eachyear:

Value: The value is the cost that theproperty is worth.Loan amount: The total owed on the

monthly mortgage to the lender.Equity: The total value minus the loanamount.Saved Cashflow: The total amount ofcashflow collected, in savings.

This plan requires saving all cashflow toinvest in later purchases. While you couldchoose to live off the monthly cashflowand still invest, investing your profits backinto your business is the best way to

grow a strong and stable portfolio.

Each year I will add a row, showing thechanges for that particular property. Ourinitial purchase begins the process,starting at the beginning of year one.Furthermore, each page of the sevenyear plan includes a section titled, “WhatHappened”. This section – found in a redbox – explains exactly what took placeduring the year in case you get lost.

Finally, each year includes a green boxthat shows what our current real estateportfolio looks like. This box helps keeptrack of what properties we own in whichyears.

If you are ready, feel free to continueahead to year one. We are about tomake our first real estate purchase – 123Main Street.


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Start of Year One:In the beginning, we are going to search for our first property to buy. Wefind our first property located at 123 Main Street. This property is located

in a family neighborhood and contains four units. See inside the houseto the right for details on the purchase:

Placed on our chart, it looks like this:

At the start of year one, our property was valued at $100,000 but we bought it for $80,000 and put $20,000 as a downpayment (slightly more than 20%, but I am assuming there would be a few thousand in deferred maintenance to takecare of, bringing our total investment to $20,000). Our total loan amount would be only $60,000, giving us $40,000 inequity. It is key that you understand these principles before we move on. Each year we will be building upon thisfoundation, so feeling secure at this point is imperative.

End of Year One:By the end of year one, we have received twelve months of cashflow,paid down the loan a small amount, and increased the value 10% byforced appreciation. I'm now going to add a row to show us the resultsof those changes.

Now that year one is complete, we will move on to year two...

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Year two is a year of learning. No purchases, no sales.See, I told you this plan was simple! You simply spend the yearlearning how this whole “real estate” game is played. You willspend your time reading blogs likewww.RealEstateInYourTwenties.com to learn tips, tricks, andtechniques of how to manage rental property without turninginto “Landlord #1” from the story that started this book.

During this year, however, the property has been cashflowing.Each month, you have been saving this money in a savings

account – a full $800 per month ($200 per month per unit, aswas our requirement). We will now add a row to our financialchart, showing the changes during the second year:

Let's move on to year three, where we will make our second purchase.

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$55,900 in Equity$19,200.00 in savings

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At the start of year three (or end of year two, however you want to

look at it), it is time to make our second purchase , 987 Fir Avenue.For simplicity, this property is going to be identical to our firstpurchase in terms of equity, cashflow, and purchase price.

This purchase is going to require another 20% down payment, but asI mentioned earlier, this amount is not going to come from our wallets. If you personally want to contribute more to yourinvestment plan, by all means do it and you will build wealth even faster. However, we are going to purchase thisproperty using the saved cashflow we have from our first property. As the chart above shows, at the end of year two wehave saved a total of $19,200.

You can start to see a pattern here. We will simply reinvest the profits from our previous properties into the downpayment for the next. Like I said earlier in this book, investing is not fancy and difficult. It is, in fact, quite boring.

!"#$ &$"" !"# %& '()* +,*(( -.*/&.01.2123 Main Street 987 Fir Avenue$62,000 in Equity $50,800 in Equity$9,600.00 in savings $9,600 in savings

3,)/ 4)55("(#2There are now two income streams running together. By theend of year three, 123 Main Street has built up another $9,600in cashfl ow (remember, we spent the savings from years oneand two to purchase 987 Fir Ave). Fir Avenue has now alsosaved up $9,600 in cashf l ow savings as well as built someequity. Total, we now have $112,800 in equity and $19,200saved in cashf l ow. It's time to move on to year four.

3,)/ 4)55("(#2There are now two income streams running together. By theend of year three, 123 Main Street has built up another $9,600in cashfl ow (remember, we spent the savings from years oneand two to purchase 987 Fir Ave). Fir Avenue has now alsosaved up $9,600 in cashf l ow savings as well as built someequity. Total, we now have $112,800 in equity and $19,200

saved in cashf l ow. It's time to move on to year four.



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By now, you can probably guess what we are going to do at

the start of year four – buy another property. Once again, wewill use the exact same numbers as before, giving us a totalof three separate four-plexes, totaling 12 separate units.

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Start of Year Five:Year five begins with a trade-up. We are going to sell theproperties that we have accumulated and use the funds as the

down payment on a larger investment, a 24 unit apartmentbuilding at 321 Cedar Lane.

As I mentioned in the last “What Happened” section, we have $175,000 in equity built up. However, a sale requires certainexpenses, so we will deduct 9% of the combined value of our three properties to account for the fees to pay the real estateagents as well as other closing costs. Our combined value is $348,400 so we will deduct $32,000 to account for those salecosts. This leaves us with about $143,000 in profi t. We will combine that with the $28,800 we have saved in equity fromyear four, and we are left with $171,000 for our next down payment.

We use that $171,000 as a 20% down payment on our next property. We are going to be looking to buy a property for around$855,000. However, remember that one of our buying rules is to buy property at a 20% discount. So, we find a propertyworth a little over $1,000,000 and are able to purchase it for just $850,000 (I'm rounding a bit to be conservative and for easynumbers. In real life, we could actually buy a slightly more expensivebuilding and still make this work!)

We are now in control of our very first apartment building. Forsimplicity, I am going to round down our down payment number of$171,000 to $150,000 (after all, there will probably be closing costsassociated with the new purchase or a luxury trip we may want totake to reward ourselves for the work we've done thus far!). So,we have a new mortgage for $700,000. The details of ourproperties can be more easily seen in our familiar graph:

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Like we did in year two, we are not going to do anything in yearsix. Instead, this year would be learning how to manage a

property like the 24 unit apartment building.At this point, the building would support a live-in manager whowould take care of 90% of the issues that arise. Our only job is to manage the manager, and to make sure things are runningat optimum efficiency.

Each month, the apartment is producing $4000 in positive cashflow, even after setting aside reserves for future big-ticketitems like carpet, roofs, parking lot repair, etc.

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Year seven will continue like year six, doing nothing but

maximizing efficiency and preparing to sell 321 Cedar Lane, our24-unit apartment building.

It is at this point where we can truly make real estate investingsignificantly more passive. Like “Landlord 2” in the story that started this book, we can relax and manage our property fromanywhere. However, we still have not “arrived” and thus we are going to continue to save our cashflow each month,reinvesting our profits.

End of year seven:At last, we have come to the end of year seven. As I have mentioned throughout this book, this plan will get you over$1,000,000 in equity within seven years of investing, buying only five properties. First, let's take a look at how 321 Cedar

Lane is performing:

It's time to trade up to our final property. We will sell 321 CedarLane for it's current value, $1,189,000. There will be sales costs associated with the sale of this property, so I will assumethat there will be 5% in sales expenses giving us roughly $1,129,000 at the sale. After paying back our loan amount of$672,000, we will net $457,000 in profit.

But how to we get to $1,000,000? It's time to do one final trade-up at the end of year seven.

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At the end of year seven, we are going to make our final trade-up. We have $457,000 in profi t from the sale of 321 CedarLane, and additionally have $144,000 in saved cashflow. This gives us just over $600,000 to use as our final down payment.Assuming we will spend some money on legal fees and other closing costs (plus another luxury vacation with some of our

profits and keeping some for savings), we will use the number $550,000 as our down payment on our final property.777 Retirement Road is a 75-unit apartment building currently for sale at an asking price of $3,400,000. Using the samerules as all other times in this book, we will only pay 80% of the value, or $2,750,000 for this property. Our 20% downpayment of $550,000 brings our total loan amount to $2,200,000.

Not even including the year one 10% appreciation, we have made our first million with Real Estate. Let's take a look at ourgraph to see how:

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777 Retirement Road$1,200,000 in equity

$15,000 per month in cashf l ow

-.$* /$001#12,

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Wrapping Up

Congratulations on becoming amillionaire!

At least on paper anyways. If you arestill reading this, I am going to assumeyou followed along and now have a clearpicture of how to gain serious financialstability and wealth investing in realestate part time.

Again, this plan is not difficult but it canbe easy to get lost in the math. If youhave any questions, just email me. I loveto talk about real estate!

The important thing to know is that thisplan works. It's based on math, and mathis not subjective. If you can findproperties that meet our minimumqualifications, you will find success.

But I Don't See Those Killer Deals:

If you are tempted to say “but there areno properties that cheap” then youhaven't looked. Some areas, such as

Southern California or other majormetropolitan areas, have prices that aresignificantly higher than these. However,the rent is much higher as well, so thesame results can be found.

Furthermore, you may need to investsomewhere besides where you live. I ama strong believer in local investing, but ifit simply doesn't work – then investelsewhere or move. How important is

your wealth building?

As I mentioned earlier, all theseexamples are true-to-life examples ofproperties. They may not be super easyto find, and you may need to investoutside of your geographic location, butthese properties exist everywhere.

Not convinced? Send me an email andwe'll talk! Just yesterday I went andtoured a triplex that was listed at$60,000, but would cashflow at easily$300 per unit. Two weeks ago a 26 unitfully rented apartment complex was soldin my town for $495,000.

Deals exist everywhere. You just need tostart looking.

Can you really do this in seven years?Yes! I have no doubt that this iscompletely possible, as I am living it. I amcurrently in year six of this plan right now,almost ready to make my final trade up.

That said, what if it took longer thanseven years? What if it took ten? Ortwelve? Or fifteen? The market changes

constantly, and we are in constant needof adapting our investing to fit it.

Several years ago, flipping propertieswas the “in thing” and many people madea lot of money. Many of those samepeople, though, lost a lot when themarket crashed because they lost sight ofwhat the fundamentals of real estatewere- cashflow and equity.

If it took ten years or more to completethis plan, thats okay. If it took five years,thats okay. If it took twenty – thats okay.Because it does not require a careershift, large sums of money, or vastamounts of time. You can set your ownpace and invest how you feel mostcomfortable.

What about after year seven?It is often said that the first million dollarsis the hardest to make. Following thissame plan, how long do you think itwould take to get to $2 million in equity?Or $5 million? Or $10? Do that math andfind out.

How much wealth do you want/need?Each person is different, but restassured, you can build serious wealthusing real estate in your spare time.

How can I learn more?

If you want to learn more about theactual detailed steps involved ininvesting in real estate, check out all thefree articles on my blog at:www.RealEstateInYourTwenties.com .

No, you don't have to be in your twentiesto get in, but yes – you will learn a tonabout real estate. I am also in theprocess of creating an online real estatetraining video series and am available forone-on-one coaching as well.

Page 9 7 Years to 7 Figure Wealth By Brandon Turner Real Estate In Your Twenties.com 17

http://www.realestateinyourtwenties.com/http://www.realestateinyourtwenties.com/


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Final thoughts fromBrandonTo wrap up, I want to remind you of afew of the key principles wediscussed in this book.

These principles are timeless and arefoundational in finding success wheninvesting in real estate.

Make a plan – Remember, getting rich is as easyas building a plan and following it.If you want to retire in seven years,great! Make it happen.If you want to quit your

job within a year andgo full time into realestate- then make thathappen.

Be patient –Rome wasn't built in a day, andneither is your wealth. Take yourtime, invest soundly, and you willreap the rewards later.

Don't get fancy – Investing in real estate is boring.Don't try to get fancy andlose it all. It is not difficultto build wealth slowly, butit is also not difficult tolose wealth quickly.

Don't lower yourstandards – Don't let your emotion dictate whatyou buy. Have your standardswritten down - such as cashflow,equity, etc - and stick to them.

Continue to learn – Learning how to better invest inreal estate is a life-longpursuit. Never stopreading blogs, books,websites, or othersources of good

information.

Just do something - You'll never build any wealth if youdon't start. You have the guidemap, you have the motivation. It'stime to start. Right now. Seriously.

Do it.


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