Marine Jabbar Adesada, 20, who started with just $2,500, constantly reached out to other investors until he found one willing to partner with him.
At just 20 years old, Jabbar Adesada owns a multi-unit real estate portfolio, from which he makes about $3,000 a month in profit. This is even more amazing considering that Adesada started with just $2,500 in savings two years ago. And as an active duty Marine, his take home pay is around $1,800 a month from the military.
To save for his first investment property, Adesada dutifully accumulated his savings and, for extra money, took on side activities, such as delivering food for DoorDash and taking on other Marines’ missions and weekend shifts. -end 24 hours a day. Adesada was able to use a loan from Veterans Affairs to buy his first home, of which he paid off 5% of the 30-year mortgage, or about $12,300 in cash. Closing costs and furniture cost him another $10,000 out of pocket.
But while closing his first investment property, Adesada was already thinking about the next one — especially after hearing his friend talk about the lucrative market for short-term vacation rentals in the Great Smoky Mountains. Unfortunately, he had already poured all of his savings into his first property.
“So I was like, well, BiggerPockets says tell everyone you’re a real estate investor and tell everyone what you’re looking for. So that’s exactly what I did,” he said. Adesada told Insider. “At the grocery store, at the supermarket. I would just meet people, ask about them, and then add that I’m a real estate investor.”
Adesada clarified that he wasn’t necessarily trying to introduce these strangers, rather he was just trying to spark some interest. Adesada also attempted to introduce his family and friends, to no avail. He even reached out to so many people in his network of short-term rental investors that there was an overlap where he discovered he had sent the same message to multiple people.
In late May 2021, Adesada received interest from his first potential investor – the mother of someone he was working with.
“It was my first track; it’s just because I shot everywhere,” he said. Adesada was so nervous during the conversation that his voice was shaking and his hands were shaking, to the point that he hung up on purpose to remind himself, he recalls.
“I was just like, ‘Oh, the call got dropped. I’m so sorry.’ She didn’t give me any money,” Adesada said with a laugh. “But after feeling that pain, I was like, okay, it’s not that bad.”
Eventually, the breakthrough came in June 2021, when Adesada was called into the office of a senior master sergeant who was about to retire and had heard about Adesada’s real estate prospects.
“It’s like I’m talking to senior, senior, senior, senior executives. I have to ask permission to talk to this person with my hands behind my back,” Adesada recalled, laughing in his own astonishment. “It’s such a big disparity between where I am and where he was.”
In total, Adesada has borrowed $60,000 from the Staff Sergeant, on which he is paying $417 per month on a five-year balloon loan with 10% interest. This type of loan is commonly referred to as a hard money loan in professional real estate circles. Through a masterclass for young real estate investors, Adesada found someone else willing to partner with him on the deal, and the couple eventually landed an upscale cabin in the mountains of Tennessee for $600,000. $ in October 2021.
Adesada and his partner split the $20,000 of closing costs and home furnishings equally, and even though the 10% down payment of the $60,000 home was fully covered by the hard-money loan d ‘Adesada, they also shared the equity in the house equally.
“It’s 50/50 because he’s the one who took the risk on a 19-year-old who owned property, and he’s got the mortgage in his name,” Adesada said. “The reality is that the first 10 deals you make in real estate aren’t nearly as important as the experience you get from them.”