Engineer, Builder, Investor, Father


Pat Herbig.png

In 2002, after returning from my honeymoon in South America and receiving my Professional Engineering license, I read the book "Rich Dad Poor Dad" by Robert Kiyosaki.  I read it in one sitting.  To say this book changed my perception would be a gross understatement!  I was ready to sell the house and start buying investment properties immediately.  We did not.  The book answered so many questions I had in my head and inspired so many more questions for me to ask...  

With opportunities I also encountered risks. I won, but also lost - like seasoned investors do. I am happy to share what I have learned with my partners and those new to the investment world and real estate. 

Thank you for stopping by!

Patrick Herbig

 
 
The average annual returns between cash flow, principal reduction, and appreciation was 48%!! 48% annually! How many average people are doing that on Wall street? I don’t know of any.

In June 2003, I purchased a 4-plex on Whidbey Island for $220,000.  I just sold that property in September 2016.  That property was sold for $385,000 and I received positive cash flow every year and never managed or worked on the property.  The average annual returns between cash flow, principal reduction, and appreciation was 48%!!  48% annually!  How many average people are doing that on Wall street?  I don’t know of any.

I joined REAPS and RHA of Puget Sound and started attending real estate investing meetings and trainings in the Seattle Area.  

In March 2004 I flipped a house near my house in North Seattle for a $25,000 profit in 2 months.  

In November 2004 I purchased and 18- unit apartment building in Montesano, Washington that I still own today.  I saved $129,000 to use as a downpayment on the $645,000 purchase.  That building has produced average annual returns of 36% to date.  I don’t know any average people getting those kinds of returns on Wall Street!

In 2006, I sold the Seattle house and moved to Port Ludlow to build a house from scratch.  I spend the next 9 months juggling my 2 kids, sub-contractors, lenders, engineers, and county inspectors,  while my wife worked full time.

I learned 2 very valuable lessons; 1st- stick with what I know – Multi family housing. You can always lower the rent and get almost any tenant to rent. A grocery store or other specialty property can only take a certain tenant without major renovations. 2nd – only invest with people I know.

In 2010, I became more active in the local investment clubs and investing by investing passively in a shopping center in Atlanta, Georgia.  I invested $50,000 and only got back $3,000 before the property went back to the seller.  This property was a shopping center with the anchor tenant being a large grocery store.  I learned 2 very valuable lessons; 1st- stick with what I know – Multi family housing.  You can always lower the rent and get almost any tenant to rent.  A grocery store or other specialty property can only take a certain tenant without major renovations.  2nd – only invest with people I know.  I did not know this guy who advertised this deal on the investment forums, and later I realized he was just doing any commercial deal he could find on Loopnet with a good CAP rate.  I should have developed the relationship first before any deals were being offered.  I always try to develop the relationships before the deals are up for discussion.

Today, I have a coach and mentor who has personally purchased over 2,000 rental units.  I also have a business partner that complements my skill set.  

I am currently looking to purchase apartment buildings from 60-120 units, class B & C buildings , in B areas in several markets across the USA.

 
 

Multi-family investing requires work, but it also allows a lot more time to create memories with loved ones.



Have a podcast? I would love to share my story with you and your subscribers.