53 min

Ep#25 Starting out in real estate after college and Buying Multifamily Deals in Pennsylvania with Jason Pero Achieve Wealth Through Value Add Real Estate Investing Podcast

    • Investing

James:  Hey, audience welcome today to Achieve Wealth Podcast. I'm James Kandasamy. And we're going to be talking to Jason Pero from Pennsylvania. Jason owns almost around 900 units. But the fun part is, he has like over 600 units on his own and a lot of it is duplexes, quads and small multi-families and he recently started syndicating around 300 units. So, hey, Jason, welcome to the show.
Jason:  Hey, thanks for having me, James. I'm glad to be here.
James:  Awesome. Thanks for coming in to the show. I'm always impressed with people who have build-up that many unit count; 600 units on your own without syndication so you're basically an independent rental owner, that we call it. And I just want to go deeper into that. Can you briefly describe how did you accumulate the 600 units and how many years did it take?
Jason:  Sure. So my wife and I started in 2001. You know, even before we were married, a few years out of college and we bought our first duplex and we did it the old fashioned way. We saved, we both work, we saved one person's salary and save that towards our down payments. And we would go with just traditional bank financing, 15-year mortgages, 75% loan to value and we just went really slow and steady early on. So, in 2001, it was a two unit, in 2002 was another two unit and a four unit and then the next year, it was a four unit that actually --
James:  Hold on, I need to clarify something. So did you come out from college and start doing this?
Jason:  Yes, so I graduated in 1999.
James:  Okay.
Jason:  And so started working, I didn't know a whole lot about money growing up and started making a little bit of money out of college. And I realized I wanted to, at that time, I just wanted to be build wealth and be millionaire.
James:  Wow.
Jason:  And all that kind of stuff. In one of my internships, I learned about rental properties and that seems like all the wealthy people had their money in real estate.
 
James:  Okay.
Jason:  So I started doing all my research and reading books and try to talk to different people that own real estate. And so we were able to do that in 2001 and just kind of went slow and steady. And so my wife worked as a pharmaceutical sales representative, I did that for a few years as well. And then got into medical device sales. And so each year, we buy a few rental properties and along the way, some sort of like career-changing deal with come along.
2005, we build up to 23 units and then all of a sudden, I met a guy that had 56 units for sale that he was willing to hold the paper on, in owner finance and so that took us from 23 to 79 overnight. And then we just kind of kept the same process; saving our money, buying a property, couple properties a year and then 2008 hit and there was a ton of property that was getting foreclosed on. So I was buying up singles and doubles and triples as fast as I could rehabbing them, refinancing them, getting my money back and repeating the process.
So we did a lot of that from like 2008 through 2012 when I left my day job. So at that time, we had about 290 units and again, we were living like way below our means, reinvesting everything back into the business. So we just put a ton of our own sweat and money into the properties in those early years. And we just kept buying over the last several years so it's been seven years since I left my day job. And when I was working, day job for a living, I'd always said I was a little bit nervous to take on private money or deal with investors. Because maybe I was afraid but I felt like from a mental and emotional standpoint, I wanted to be there for that investor, I didn't want anything to go wrong. And I knew if I was a travelling salesperson and I'm working three hours away, God forbid something goes wrong, I don't want to like I didn't want anything to happen to that investor's money. But once I quit the day job, sort of like on my own in my own portfolio every day, started networking with a

James:  Hey, audience welcome today to Achieve Wealth Podcast. I'm James Kandasamy. And we're going to be talking to Jason Pero from Pennsylvania. Jason owns almost around 900 units. But the fun part is, he has like over 600 units on his own and a lot of it is duplexes, quads and small multi-families and he recently started syndicating around 300 units. So, hey, Jason, welcome to the show.
Jason:  Hey, thanks for having me, James. I'm glad to be here.
James:  Awesome. Thanks for coming in to the show. I'm always impressed with people who have build-up that many unit count; 600 units on your own without syndication so you're basically an independent rental owner, that we call it. And I just want to go deeper into that. Can you briefly describe how did you accumulate the 600 units and how many years did it take?
Jason:  Sure. So my wife and I started in 2001. You know, even before we were married, a few years out of college and we bought our first duplex and we did it the old fashioned way. We saved, we both work, we saved one person's salary and save that towards our down payments. And we would go with just traditional bank financing, 15-year mortgages, 75% loan to value and we just went really slow and steady early on. So, in 2001, it was a two unit, in 2002 was another two unit and a four unit and then the next year, it was a four unit that actually --
James:  Hold on, I need to clarify something. So did you come out from college and start doing this?
Jason:  Yes, so I graduated in 1999.
James:  Okay.
Jason:  And so started working, I didn't know a whole lot about money growing up and started making a little bit of money out of college. And I realized I wanted to, at that time, I just wanted to be build wealth and be millionaire.
James:  Wow.
Jason:  And all that kind of stuff. In one of my internships, I learned about rental properties and that seems like all the wealthy people had their money in real estate.
 
James:  Okay.
Jason:  So I started doing all my research and reading books and try to talk to different people that own real estate. And so we were able to do that in 2001 and just kind of went slow and steady. And so my wife worked as a pharmaceutical sales representative, I did that for a few years as well. And then got into medical device sales. And so each year, we buy a few rental properties and along the way, some sort of like career-changing deal with come along.
2005, we build up to 23 units and then all of a sudden, I met a guy that had 56 units for sale that he was willing to hold the paper on, in owner finance and so that took us from 23 to 79 overnight. And then we just kind of kept the same process; saving our money, buying a property, couple properties a year and then 2008 hit and there was a ton of property that was getting foreclosed on. So I was buying up singles and doubles and triples as fast as I could rehabbing them, refinancing them, getting my money back and repeating the process.
So we did a lot of that from like 2008 through 2012 when I left my day job. So at that time, we had about 290 units and again, we were living like way below our means, reinvesting everything back into the business. So we just put a ton of our own sweat and money into the properties in those early years. And we just kept buying over the last several years so it's been seven years since I left my day job. And when I was working, day job for a living, I'd always said I was a little bit nervous to take on private money or deal with investors. Because maybe I was afraid but I felt like from a mental and emotional standpoint, I wanted to be there for that investor, I didn't want anything to go wrong. And I knew if I was a travelling salesperson and I'm working three hours away, God forbid something goes wrong, I don't want to like I didn't want anything to happen to that investor's money. But once I quit the day job, sort of like on my own in my own portfolio every day, started networking with a

53 min