MINDSET
Seattle, WA
PIVOTING
Pivot to Passive Income KNOWING WHEN TO VEER OFF COURSE CAN LEAD TO BRIGHTER PATHS
by Rachelle Boyer
I
I understood passive income, but I did not understand how to make it happen in Seattle where I lived. The cost of homes was high, which also meant a high down payment and they did not cashflow. So, I decided to look outside of my home state. An investor colleague of mine introduced me to my now business partner in Pittsburgh, PA who had been investing for over 15 years, understands cash-flowing properties and the needs of investors. I pivoted and decided to acquire cash-flowing properties in Pittsburgh. I raised private money and started acquiring properties. Within two months, I identified and purchased 18 doors. My cap rate is 12, which provides me a great positive cashflow every month. While I loved flipping and will continue to transform homes, I will be very selective. Now, most of my time will be spent acquiring cash-flowing rental properties and sharing my knowledge with others. Find the deals, have trusted boots on the ground and a property management company in place, and you CAN design your dream life by investing in real estate. Being mindful of when it’s time to pivot to something different is how we grow and enjoy our journey! •
was a single mom with two kids, a big mortgage, two car payments, a corporate job… and no money. I decided to make a drastic change and quite my job to pursue my dream, which later turned into a journey. My new job was to flip homes. I raised private money and did my first deal. With a lot of grit and gumption, I got through it, and even made a little bit of money. Then I rinsed and repeated. Fast forward four years and dozens of flips later… I bought a house at auction that needed an eviction. What another great learning experience! But I had no idea what I was in for. It was a 4000 square foot 1978 house that should’ve been a pretty easy cosmetic fix. But as I was standing alongside a deputy to do the eviction, 10 cop cars came flying in. This simple cosmetic flip ended up having three gangs living under the same roof: Bloods, Crips, and Sons of Samoa. The property was a chop shop, a whorehouse, and a haven for drugs and addicts. That was the day that changed my life. I love renovating homes, one house at a time, positively changing neighborhoods in the process. I don’t mind dealing with inspectors, contractors, draws or hustling for the next deal and raising private capital. I absolutely love all of it! But I realized, while managing crews at five different houses at the same time, that I had created a job for myself. And while that was initially my goal, to trade one job for another better one, I realized I needing to do something different. I needed to make money while sleeping.
Rachelle Boyer has been investing in real estate since 2016. She has completed over $9 million in flips and recently pivoted to passive income and owns an out-of-state portfolio of 18 doors. She is the Seattle WREN (Women in Real Estate Network) Chapter Leader, supporting over 1200 members.
94 | think realty magazine :: april 2020
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