Starting with just $2,500, 20-year-old Marine Jabbar Adesada reached out to other investors to find someone to partner with.
Jabbar Adesada
Just 20 years old, Jabbar Adesada owns a multi-unit real estate portfolio from which he earns about $3,000 a month. It’s all the more surprising considering Adesada started two years ago with just $2,500 in savings. And as an active duty Marine, his take home salary is about $1,800 a month from the military.
To amass his first investment property, Adesada diligently accumulates savings, delivering food to DoorDash and taking on other Marine Corps missions and 24-hour weekend posts for extra cash. And so on, I did a side job. Adesada was able to purchase her first home with a VA loan. Paid his 5% of his 30-year loan on the house, or about $12,300 in cash. Closing costs and furniture costs took another $10,000 out of his pocket.
But while closing his first investment property, Adesada was already thinking about his next one. Especially from his friends, great after he heard about the lucrative market for short term vacation rentals in the Smoky Mountains. Unfortunately, he had already poured all of his savings into his first fortune.
“So BiggerPockets says you’re a real estate investor and tell everyone what you’re looking for. So we did just that.” I meet them, ask them about them, and tell them I’m a real estate investor.”
Adesada clarified that he wasn’t necessarily trying to sell to these strangers, he was just trying to interest them. Adesada also tried to pitch his family and friends, to no avail. He contacted so many people in his network of short-term rental investors that he discovered that he had sent the same message to multiple people, and there was some overlap.
At the end of May 2021, Adesada received interest from its first potential investor – the mother of someone she worked with.
“That was my first lead because I shot it all over the place,” he said. said to have cut
“The call was hung up. I’m sorry. She didn’t give me the money,” Adesada said with a laugh. “But after feeling that pain, I thought, okay, it’s not that bad.”
Ultimately, the breakthrough came in June 2021. Adesada was called into the office of a retired Sergeant Major to hear through the vines about Adesada’s real estate prospects.
“It’s like I’m talking to the top, the top, the top, the top. To talk to this person, you have to put your hand behind your back and ask for permission,” Adesada says. He recalled his own surprise with a smile. “There’s a big difference between where I am and where he was.”
In total, Adesada borrowed $60,000 from the sergeant major and paid $417 per month in a five-year balloon loan at 10% interest. This type of loan is commonly referred to as a hard money loan among real estate professionals. Through a masterclass for young real estate investors, Adesada found someone else willing to partner with him on a deal, and in October 2021, the two of them finally bought a luxury cabin in the Tennessee Mountains for $600,000. closed with
Adesada and his partners split the home’s $20,000 closing costs and furnishings evenly, with the $60,000 down payment for 10% of the home fully covered by Adesada’s hard money loan, but the home’s capital. also divided equally.
Adesada said, “It’s 50/50 because he’s the one who put a 19-year-old guy at risk who had one property and has a mortgage in his name.” Your first 10 transactions in real estate aren’t as important as the experience you get from them.”