SJREI Investor Profile:
I had the pleasure of interviewing Scott, one of our loyal followers at our SJREI chapter meeting last week. His journey is not only inspirational, but practical for those who want to create an additional source of income. When I chatted with him he shared the upside of his efforts. Let me explain – Scott is an engineer and has held many positions here locally. His job has been out-sourced, company down-sized and he has had his position eliminated many times over the years, much the same as other employees and professionals in the high tech industry. Silicon Valley experiences economic cycles (as do other parts of the country) but also provides opportunities. We just experienced a major housing decline, and now our housing market is rebounding as are our employment numbers, and construction is beginning to emerge. That spells opportunity!
Scott is a typical example of what most professionals and employees contend with in the ever changing face of Silicon Valley. What is one to do when one’s job is vulnerable? Recreate, find another job, or explore options to create financial security outside of a traditional job.
Here is Scott’s story: In 2004, he purchased two houses in Fresno – then as he explored building his portfolio in 2005-2009, and determined that the numbers did not make sense. He withdrew from the market and settled in to ride out the storm. In 2010-2012, he entered the market again, and purchased 6 houses putting substantial money down so that the properties were not highly leveraged. What is the outcome? He has created a viable alternative source of income, and tax shelter for his income, with significant cash flow which creates a great measure of emotional & financial security for him and his family.
How did that happen?
1. He attended meetings like SJREI Association, and connected with other investors
2. He educated himself, and realized the importance of timing the market in his favor
3. He became familiar with his target area
4. He developed a strategy that worked with his risk tolerance
5. He then took action and implemented
Some people do just one or two of the items listed above – you have to be comprehensive to be effective. Scott did just that, and guess who is smiling now. (I am too as our mission at SJREI was implemented, and it was very effective) It is not rocket science but when it comes to real estate smart, simple, strategies are the best, and of course effective implementation. What is your strategy?Google+