MB 073: The Secret to Quitting Your Job With Real Estate - With Brad Tacia

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 (Ultimate Apartment Investing Coaching Program)
• Quitting full-time job allows to think more strategically, design life to make impact

[22:30] Brad’s perfect day

• Wake up without alarm
• Work out
• Family time
• Coach students
• Look for new deals
• Take vacations at will
• Every day feels like Saturday

[23:22] How Brad wants to be remembered

• Family man
• Mentor
• Inspire people to take risks (it’s risky not to go for it)

[24:34] Brad’s best advice for aspiring multi-family investors

• It’s more doable than you realize
• Choose five-year retirement plan over 40-year retirement plan

Connect with Brad

Ultimate Apartment Investing Coaching Program

Apartment Investors of Michigan Facebook Group

Resources

Apartment Building Investing Session #55

Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki

The Millionaire Real Estate Investor by Gary Keller

Bigger Pockets

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

The Financial Freedom Summit Live

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