102: Retiring Early from Rental Properties with Tim Rhode

Tim Rhode was a grocery clerk when he caught the real estate bug. He became an agent and started selling houses and investing in rental properties. Tim knew that if he wanted to be successful, he would have to work harder and smarter than his competition. On this episode of the InvestFourMore Real Estate Podcast, I talk with Tim about his journey into real estate. We’ll discuss how he sold over 2,500 homes as an agent, bought as many rentals as he could, flipped houses, and ended up retiring very early with a substantial portfolio. In addition to realizing great real estate success, Tim also started a non-profit organization to help others find success.

How did Tim first get into real estate?

When Tim was working part-time as a grocery clerk, he bought his first house. He loved the house and the process of buying it so much that he decided to become a real estate agent. In the 1980s, he earned his real estate license and jumped into the business. He found immediate success thanks both to systems he put in place and hard work. He made sure he talked to as many people possible and set as many listing appointments as he could. He would prospect three hours per day unless he had enough listing appointments to justify using his time on other activities.

How did Tim invest in real estate while he was an agent?

While Tim was building his real estate agent business, he was also buying as many rental properties as he could. He admits he had a very aggressive strategy that was risky yet motivating. He would sometimes get properties under contract when he knew he did not have the money to pay for them. He would have to work extra hard as an agent to earn cash to buy the properties. He attributes his hard work and sacrifice when he was younger to being able to live a completely free life in his 50s. He also lived very frugally, even as he earned more money, so that he could invest in more real estate.

How did Tim start a team to make more money as a real estate agent?

Tim ended up selling over 2,500 homes as an agent before he quit to become a full-time real estate investor. He could not sell that many houses on his own; he had to have a team. Tim started his team by hiring someone to help with the escrow process. He paid his assistant half of what he was making, but he said it was well worth it because it allowed him to grow his business. I am a huge fan of hiring people as soon as you can. Tim built an awesome team when real estate teams barely existed. He would focus on driving leads to the team, and they would handle the rest.

When did Tim become comfortable enough with investing to stop being an agent?

Tim made a lot of money as a real estate agent, but it was also a lot of work. He enjoyed starting new ventures and changing things up in his life. In is 40s, he shut down his real estate business and focused on being a full-time real estate investor. He started to flip houses and kept buying as many rental properties as he could. Tim says he was comfortable enough to be a full-time investor when his passive income was a few thousand dollars more than his expenses. He was making $10,000 to $15,000 per month from his rental properties, but his expenses were only $7,000 to $10,000 per month.

What advice does Tim have for other investors and agents?

Tim started a non-profit to help others succeed: 1LifeFullyLived.org. Tim spent a lot of time in the outdoors and freed time for himself after he built enough passive income to retire. He decided his time would be spent best helping others. He started his non-profit to help coach others on how to succeed. He has seen a lot of people who make a lot of money yet have nothing to show for it. He emphasizes it is not about how much money you make but how much you save and invest. He also has some other very valuable advice:

• Surround yourself with great people. You have to be careful not to surround yourself with people who look successful but are really spending every dime they have.
• You have to be physically fit as well as mentally fit.
• Focus on your expenses as well as your income. Sometimes saving money is more about stopping leaks than turning on more water.
• A major goal should be to become a “100 percenter,” which means all of your expenses are covered by passive income.

If you want to get in touch with Tim, you can email him at [email protected] or check out 1lifefullylived.org, where they have conferences twice a year for those looking to up their game.