Turning $18,000 Into Over $600,000 with Rentals

In this episode, I interview Justin Hannah, a successful real estate investor and host of the popular “Real Estate Investing 365” podcast. He discusses how he increased his net worth from $5,000 at 20 years old to over 7 figures by 31 years old and quit his job as a lineman to pursue real estate full-time. Today, Justin owns over $2 million worth of real estate, which consists of 12 rental units and a single-family home.

Justin shares his background story. He explains his entry into real estate starting as a product of his competitive relationship with his cousin who, at the time bought a house, causing him to do so, too. Working on power lines had been Justin's job, and although it paid well, it was too demanding for someone who wanted to spend more time with family. It was mostly coincidental that he got into real estate at such a lucrative period.

Justin explains that his decision to go into real estate investing was after buying his first rental property. While admitting that over the past ten years he could have made much more progress, he walks us through how he essentially acquired his first three rental units and his primary house for $18,000. It is important to note that he never wanted to stay working as a lineman, and this motivated him to use real estate as his exit strategy. Comparatively, he realized he could make his entire pension as a lineman from one rental facility in a couple of years.

Going forward, Justin’s goal would be to buy more rental properties and to get involved with the single-family market, because of how lucrative it is currently. His story reflects that you don't need to have hundreds of thousands of dollars to start; you just need a little money and trade upwards.

I asked Justin to describe what his business would ideally look like in five years. He shares that he would like to have 100 units, and $15,000 per month in passive income, noting the practical steps he is taking towards achieving that. His immediate goal this year is to get ten more units and do twenty off-market deals. One way he is trying to achieve these goals is by doing a 30-day challenge to raise half a million dollars. I explain that part of being a real estate investor is fundraising, especially in cases like Justin's where the investor is not currently bankable.

Justin admits that he is working on his mindset to be less negative and improve on his psychological well-being. When you're in your job for hours a day, you're focused on that, so it's hard for your mind to let go and start being creative. After quitting his job, Justin notes that his mind started thinking expansively, both personally and in his business, and so the growth is exponential.

We talked about Justin’s podcast, Real Estate Investing 365. He shares that the podcast was started because he was having difficulty finding people who were above him in real estate, so the goal was Networking. Additionally, it helped him offer advice to people and help others avoid the mistakes he had made.

You will not want to miss this awesome episode of the Just Start Real Estate Podcast with up-and-coming investor and podcaster, Justin Hannah!

Notable Quotes:

"My main goal is not to be a wholesaler; I want to find more properties that meet my criteria to own as rental properties."