Our interview series continues with Hasan Turgut (sugarfree), a new real estate investor who is excited to share his inspirational story of acquiring a cash flowing, buy and hold property. Our interview reveals how Hasan made a move from the risky stock market to creating a lucrative and stable investment plan through rental real estate, all while using the bank’s money to make it happen.
Hasan’s Journey Moving Forward with His Dream of Investing in Real Estate since 2005
Hasan took a step in the right direction when he placed himself on the path to building wealth through rental real estate. The entire investment experience went extremely well for him, to the point that he was more than happy to share his story so others can see just how easy it is to buy a rental property through a full-service real estate company.
1. What initially led you to get started in this real estate investing journey?
Referring to real estate being a way to protect your wealth, really for me, what hit home was the interview you had with Bill Miller, and his experience, which was not necessarily all positive while investing in the stock market.
But, you know, I have multiple years of experience investing in stocks, and I’ve made a lot of money, and I’ve also lost a lot of money.
So again, going back to preserving wealth with real estate – you put that money into the property, into the asset, and it just sits there, and it generates that positive cash flow, month by month.
That’s really what led me to go the real estate route. I think I was done taking these big risks in the stock market, and I wanted something a little bit more consistent and steadier.
2. How did you discover?
I just started doing some searches on YouTube, and I saw all these different people with flashy cars, and things like that. But you kind of struck a chord with me because you seem real down to earth, and you explain the process.
Even though this is the first time we are meeting face to face, I feel like I know you because you talk to the average everyday person, and you educate people. I think you would agree that some company is education-based first, and the investment side of things comes after that education has been built or established.
3. Did you manage to see the rental property before you bought it?
Nowadays, with technology, you can go online and drop yourself in the street. Unfortunately, they don’t update it as much as I’d like, because I like to explore the neighborhoods and everything. But my property is visible on Google Maps, so that’s the extent of my area research boots that were on the ground, if you will.
My portfolio manager led me through the process step by step. Josh recommended that it would be prudent to get a third party involved to do a property inspection, even though it’s new construction, as a protective measure. I think that’s pretty standard in real estate investing. I reached out to the inspector and they recorded video of all of the different rooms, and bathrooms, and everything, and I was able to see all of that remotely.
4. How did you go about buying your rental property – with a self-directed IRA, traditional financing, non-recourse financing?
My first property, and my second that’s under contract, are both conventional finance. Regarding the first property, we had a credit union in the area, and at the time, that was the best route for us to go to receive the lowest interest rate. I actually got it locked in at 3%. The loan officer that I was working with said that she had only seen a couple that were below 3%, so I felt pretty good about that.
I think rates have gone up a little bit since then, so for my second property, I think we’re looking at around 3.42%. It changes day by day though, and we’re waiting to see what that’s going to be. Of course, the rate affects your monthly numbers, hopefully nothing shifts too out of whack, and in the next month or so, I can get that locked in at a pretty good rate.
5. Can you talk about your experience with the property management side of things and the process?
I think I got pretty lucky with my first property because everything kind of aligned. Some things are meant to be, and I feel like this was one of them, to at least get the ball rolling. The property management company collects the rent; if there are any repairs that need to be made, they take care of that also. At this point, since it’s a new construction property, if there are repairs, they’re minor, but everything is handled by the property manager.
I opened up a separate bank account for this property specifically. It seems petty, but you feel proud when you get to put that property name and the property address on the account, because you know that it’s specific to that unit. Every month the property manager will collect rent from the tenant, and then they’ll take out the property management fee, any additional expenses for repairs, and then whatever is left over, they send to my bank account.
What I’ve done is I’ve set up automatic payments on my mortgage, so everything is automated. Now, I don’t have to touch anything. The deposits come in around the middle of the month, and the payments are made around the first, or beginning of the month. Every month, I’ll see my account grow by around €670, and that’s pretty great.
6. You were investing in the stock market prior to purchasing your property, so how different is the world of real estate vs stocks?
It’s funny, when I was doing my thing in the stock market, I’m talking swings of five to ten thousand dollars a day, which is, needless to say, stressful, and creates a lot of anxiety, and that carries over into your personal life. I recall my last straw with that, which was when I was on a vacation with my family and the markets were doing what I didn’t expect them to do, which happens quite a bit. You know, it kind of took that time away from my life, and I said to myself, “You know, I’m not getting younger.”
This real estate thing made sense when I watched your videos, and believe me, I watched a lot of your videos. And now, I can have investments in the stock market, but I’m not touching them; they’re long-term, and I have the same mindset with real estate investing.
I have a lot less anxiety in my life, and I have goals. Right now, my objective is to work hard and make money so that I can acquire the next property. As I said, ten properties is my goal. I do believe my freedom number is less than ten properties, but to be comfortable, and to kind of meet or exceed where I’m at now, it probably would fall within the ten-property range.
7. Are there any final thoughts you would like to give to new investors out there who are thinking about taking the plunge and haven’t moved forward on taking action yet?
Well, every month that you wait, you’re losing out on that cash flow, and that growth of equity, since you have a tenant that’s essentially paying your mortgage. Think about it this way, if you had two properties, five properties, ten properties, between appreciation, conservative numbers, equity, pay down, and cash flow, you could be making or replacing, probably replacing your current salary. The longer you wait, the longer you’re postponing, or procrastinating that reward.
I would have done it earlier, to be honest with you. I wish I would have rewound and taken some of those profits I had made, and preserve them in real estate. I would probably be a little bit ahead of the curve right now, but better late than never. If I could give anyone advice, it’s to take action sooner than later.
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