How We Got Into Real Estate Investing

January 03, 2023

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Hello hello, and welcome to The Turning Profit podcast (which has been a few years in the making, and is finally here, whoop whoop)!

We are Pete and Heather Reese, and every week on this podcast, we’ll be discussing all things real estate investing. We’ll also be talking about how we invest in real estate, all the different real estate investing models, how to make money out of this, and more.

We’ll also be showcasing experts in the field on the podcast. Yes, we’ll convince them to share aaaaall of their secrets with us (and with you).

But before we start doing that, we thought it would be a great idea to share our origins story with you.

Because we didn’t always know how to do this. No no, we also had to learn everything from scratch. 

Ready for adventure?

Tune in now!

The Beginning: Our First House

Our real estate story started when Pete was born. His parents didn’t own a house while he was growing up, and that is what truly pushed us to get into real estate. Because it’s not just about buying and selling properties, it’s about securing our future and the future of our children. It’s about making that first step towards creating true generational wealth.

Growing up, Pete didn’t dream of becoming a doctor or an astronaut, he dreamed of his parents buying their own house. He tried to talk them into his dream many times, but owning a house wasn’t a priority for them. They were okay living in their apartment, and that was fine, but there were a few drawbacks to living in such a small space.

This was something Pete always carried with him, and he promised himself that when he grew up, he’d buy a ton of houses –yes, he was this ambitious from the beginning– or at least buy his very own house. 

Today, Pete’s parents do own a house. Buying one has brought them a stability they had never dreamed of. They don’t have to worry about all the issues that come with renting instead of owning.

But let’s go back to our story, shall we? 

Over two decades ago, Pete and I met and got married. Then, in 2000, we bought our first house. It was an off-market deal, a starter home in San Diego that we bought for $195,000, and we were very excited about the whole thing.

That first house served its purpose well. We only lived in it for a year (then rented it for another), but it was our first foray into investing and our first dip into the realities of being landlords (suffice to say, our first tenants were not the best).

A Few Years Later

It was 2005 and we had sold our initial house (and made $50,000 out of that), bought a couple more, and started our own business. 

The market was going up, we were doing well, and we started thinking that Pete and I could buy and sell houses for a living. We figured out what we needed to do to fix up the properties we bought, and we had a vision we could follow. 

That’s when we got into flipping.

This was a bit of a weird time because everyone in the real estate industry was making money, from the real estate agents to the title companies to the escrow companies and everyone in between.

We were also making good money out of it. But, we also realized we were giving up a lot of our profit in commissions. So we decided to get our real estate licenses; I got a salesperson license, and Pete got a broker license. 

Those changes allowed us to really diversify our business and make even more profits. We also had more control over the whole thing, but that’s mostly because Pete is a great broker and a bit of a real estate wizard.

2007 Is Here, and It’s All About to Change

We were doing great. We were flipping houses, getting muuuch better at this real estate thing, and making money, when the market just crashed

Luckily, we weren’t holding too much inventory back then, so we were able to stay on our feet. That’s when I saw an opportunity: Because Pete had his broker license, I proposed that he sell bank owned properties. And he started doing just that.

That’s where the market was for the next few years, and so, we ended up shifting from investing to brokering. 

It wasn’t as easy as I’m making it sound. A lot of times, Pete would get assigned a house, and when he would go to do an occupancy inspection, a family would still be living there. A family that had just lost their home. 

It was always a harrowing process, which is why, as soon as we could, we got out of it. Because whenever we think back to that time, all we think about is the human cost.

But then, in 2017, things changed again when I “stole” Pete away.

What exactly happened? Well, to learn the answer to that question (and the rest of our story –I promise, it gets better–), you’re going to have to listen to the episode above.

Grab yourself a drink, get cozy, and make sure to tune in.

Welcome to our adventure, we hope you’re here to stay!

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