Matthew Martinez - 2 years to a million in real estate

Boston real estate investor, Matthew Martinez, traded a high-tech career for a gig as landlord.

June 17, 2004: 10:10 AM EOT

By Sarah Max, CNN/Money senior writer

BEND, Ore. (CNN/Money)-Matthew Martinez was working as the director of international business development at Internet company Terra Lycos in 2001 when he got a business idea of his ownpool investors' money and buy apartment buildings in the Boston area.

"I created an 82-page business plan for what I wanted to do and pitched it to everyone I knew with money," said Matt, now 34. "I couldn't find anyone to invest."

So on a much smaller scale, he decided to go it alone, setting his sights on three-family buildings in Dorchester, a Boston neighborhood.

About that time, as luck would have it, Matt befriended a seasoned real estate investor who was buying a unit in the building where Matt lived.

"We hit it off, and he took me under his wing" said Matt.

Three years later Matt has $1.3 million worth of equity in five multifamily buildings in Dorchester and one single-family rehab in the well-to-do Boston suburb Wellesley.

Better yet, his rental income yields enough cash that Matt quit his day job in April to be a full-time landlord.

Here's how he turned an 82-page idea into a career. (To read the full story go to http://money.cnn.com/2004/06/16/real_estate/investment_prop/tycoon_martinez/index.htm .)

Matt,

Thank you for calling me back earlier today. The article about you was great and inspired me to step up my efforts in real estate investment.

As I mentioned, I'm trying to put together a similar plan of investment here in Arizona and would really appreciate it, if possible, for you to mail me your real estate business plan. If I can ever help you with any Arizona real estate info, please let me know.

Thank you,

Phoenix, AZ

Matt,

I have had some great interest in doing exactly what you have done, but I just haven't taken that first step. I might be coming into a little bit of money soon and I am ready to take that first step. Would you ever be interested in mentoring somebody? Would love to sit down and talk to you sometime. Look forward to hearing from you.

Columbus, OH

Matt:

Thanks for meeting with me yesterday.... It is great to hear what can be accomplished. I am dying to get that first one under my belt. As with other things in life, getting that first one under your belt is a big thing...

Extending the metaphor, I know I am going to have to put in a lot of time and effort to bag that first one, too. Can you send me that spreadsheet you talked about? Have a Happy Thanksgiving.

Seattle, WA

MatthewI have much to learn... I would ideally like to get out of corporate America in the next 5 years so I can do real estate development/investing.

Miami, Florida

Matthew

My two partners (a Real Estate Agent/Business Owner, and a Loan Officer/Business Owner) and I are in the process of creating a Real Estate Investment LLC. We are currently in contract on a 600 square foot luxury condo ($415,000) on the 12th floor at the Residence at the MGM Grand (Strip View) and a two bedroom Penthouse Condo, two blocks off the Strip ($359,000). Would you be interested in investing?

Las Vegas, NV

Matthew

I am a new investor stuck on implementing the right strategy. Would you be able to meet and give me some advice?

I live in Brookline and can meet at your convenience. I need to hear a broader perspective.

Please let me know.

Brookline, MA

MatthewI have been working to make my first investment property in Dartmouth break-even. I am close. Now I want to generate some cash flow with more properties but haven't chosen a strategy. My credit is good but I am heavily leveraged. I would be interested to learn more about what you are doing and how you chose to proceed. Could we meet in a week or so?

Dartmouth, NH

Hey Matthew,

I just read about you and decided to look you up via craigslist. Two years ago I bought my first duplex here in Ann Arbor, MI. I'm doing well but I want to expand and eventually leave my job. Would it be possible for you to be a mentor to me. I'm 33a psychologist with a good steady job but I want to be free from "the man" before I'm 40!

So if you would be willing to help me out I'd greatly appreciate it. Let me know what you think.

Ann Arbor, MI

Hi Matt,

I had seen the CNN.com Millionaire in the Making piece on you some time ago and then coincidentally my sister ended up meeting you. It's a very impressive article. Congratulations on your success in your new career. I'm in the IT industry, like you were. It's a good living and I studied computer science many years ago for this type of job, but I've just found myself, as of lately (3-4 years), very much interested in property investing. I haven't quit my day job yet, but I really think I'd like to!

Hawaii, like San Diego and other areas, has just gone crazy. I'm just starting off, mostly to try to upgrade my own level of living, but I have begun to do some small investing. Rents have skyrocketed as well with some places well supported by the military. I have a small apt. that with each renter moving out I've been able to raise the rent. The military base housing allowance supports these increases as well. One area I've invested in is the resort home market. There are several resort home areas in Hawaii; on Oahu and the outer islands. The market, still surprisingly, looks like it supports flipping, but even seems to have enough legs to warrant holding on to the property for a short while for larger gains. Do you have any thoughts on the resort home market? Most of the talk I hear is about how the baby boomers will continue to feed this market for the next few years.

If all goes well, I should be in a position to continue investing. The property I'm moving into will be completed shortly and has gained quite a bit of equity already. I'm really interested in the next step. I haven't enough ideas yet. Should I continue with acquiring properties or try to take a larger step; perhaps something like a small 6-10? unit walkup apt building? I've looked into this a littlebut, as all real estate now, it seems to be getting out of reach... maybe? I'd welcome any ideas or opportunities you have. Perhaps we can share ideas on our perspective areas 6,000 miles away!

Aloha!

Hawaii

Matthew:

I'm still working my rear end off... still one of the ants.... I spent the weekend going over all of my monthly expenses to figure out what I needed to make monthly so my wife can quit her job and be home when my son gets off the bus from school. I have come to the conclusion that there are not enough hours in the day to do everything I need to do.

Chicago, IL

Dear Matthew,

I saw the cnnfn.com article on you. Based on what's in the article, I extend a hearty "Congratulations" on doing so well!

I am writing to you because I seem to be interested in some of the same things you are. I am a 33-year-old landlord on two properties in Boston. I'd love to find out more about the Boston Landlord Association and whether I may participate! I am a practicing attorney in Boston with my real estate broker license, interested in doing a lot more with real estate.

Please let me know if you'd be up for meeting/talking to exchange real estate thoughts and expanding each of our respective networks.

Thank you,

Boston, MA

Hi Matthew,

I just got off the phone with you. I am 32 years old and a landlord in San Diego. I own two 3-family properties within a few blocks of each other. I'd love to be on your mailing list and participate in your monthly meetings. The CNN article about you describes where I'd like to be in 5 years!