for More Passive Income Streams with Tamar Hermes
Every real estate investor knows that things don’t always go as well as we’d like. What happens when you’re hit with a $16,000 bill to fix a sewer, or when 20 of your tenants call you all at once with problems? Some things, like those examples, make active real estate investors envy passive investors. This is why Tamar Hermes decided to go on a more passive route for real estate investing.
Tamar started at age 28, working as an executive in the television industry. She realized that she was trading her time for money, and without her job, she wouldn’t be able to pay her bills. So, she put 10% down on a duplex and started house hacking. Over time she bought more and more duplexes, some even out of her 401(k). She was an aspiring landlord, but after being hit with the situations above, she decided to sell all her units in Los Angeles and put her money into more passive income streams.
Now she’s invested in syndications, like Brandon’s Open Door Capital to be exact. toilet calls. Tamar refers to herself as a very cautious investor, and that may be why she feels far more diversified with passive investing than active investing.
She also talks through “finding your tribe” and how Gobundance has helped her meet friends and partners within the real estate space.
There was a point when my husband and I, we took a leap. And this was 15 years ago when we bought our other house, and it was well over seven figures, and we were so nervous. And at the end of the day, we did have to ask ourselves, well, will our kids still love us? What will happen if this happens? Do we think that we can make this money? And we ended up doing it, and it was the best thing that ever happened because sometimes when you expand yourself and you actually take a leap, it amazing what can happen.
You listening to BiggerPockets Radio, simplifying real estate for investors large and small. If you here looking to learn about real estate investing without all the hype, you in the right place.
What going on everyone? It Brandon Turner, host of the BiggerPockets podcast here in the sea shed with my amazing friend, David analogy king Greene. What up, man?
Not much, bro. I happy to be in Hawaii. And I happy to be making magic in the sea shed once again.
Wow, we have a good show lined up for everyone today. We talking to Tamara Hermes. And so, Tamar is an awesome real estate investor who I met about a year ago and learned what she was doing. And she killing it right now. And so, she going to tell us her story about both active and passive investing. We got a lot of good things to talk about, fear and overcoming difficult times to come from crazy stuff happened within her properties. You hear about that story today. You going to hear about when and why she sells properties. And it something we don talk enough about on this show. But I think it super important.
And we talk about later on in the show, something about that I want you guys to hermes delux replica
listen for, and that is the question of should you have multiple real estate agents or just one? And actually, David, you gave I mean, Tamar had a really good answer, but then you had a really good answer as well on that. So everyone listen for those things and more on today show. But before we get to that, let get to today quick tip.
Today quick tip is consider that the partners that you make need to have mutually aligned goals with your own. It very easy to look at life only from our own perspective. But everybody else is doing the same thing. So the person who learns to look for other people perspective will become very interesting to the people they talking to. This applies with your real estate agent, with your loan officer, with your lawyer, with your consultant. Make sure that the things that you are partnering with people to do is in their best interest as well as your own and you have a lifelong partner.
Oh, that was pretty good. I like that. Then now I think we ready to get into the interview with Tamar. Anything you want to add before we get started?
No, I want to get started. I like what Tamar has to say.
You guys are going to love this. So without further ado, Tamar Hermes. All right. Tamar, welcome to the BiggerPockets Podcast. It is awesome to have you here.
Thanks so much. Thanks for having me.
Yeah. So, you and I first connected about a year ago, and I learned a little bit about your story. And ever since then, I been like I got to get Tamar on the podcast. So I excited that we finally made this happen today. And I want to learn more about you and that journey. So why don we start early on? How you get into this idea of real estate investing? How you get that, get bit by the bug?
So I when I was 20 years old I was an executive in television. And I was making the six figures. And I thought, wow, I got it made. But I knew better because I realized that I was exchanging time for money. And that if I didn have that job I would basically be, I don know, I wouldn be able to survive. And so, I started looking at my bottom line. And it made me think about when I was 14 and a half I really wanted a car. And I grew up poor. I was the child of a Holocaust survivor. If I wanted that car, I was going to have to work for it. And so, by the time I was 16 I had saved $5,000. And cut to me realizing my bottom line, which was that I needed to figure out how to get rid of rent. That was the biggest expense. And so, I took the $40,000 that I had saved, and I put 10% down on a duplex.
You lived in one side of it then?
I did. I lived in one side of it. And I lived in Los Angeles, so I also lived within two miles of my work, which made it really easy because your time can really get sucked up when you live far away from your job, especially in LA.
Yeah, that awesome. All right. So, it get started [inaudible 00:04:30]. Do you remember what year that was? Like how long ago.
It was and I going to age myself a little bit, but it was 1998,
Perfect. So, that makes you like 29 years old today.
Way to go with that. All right. So, you signed the house hack, you living in one half of this duplex, which is such a great way to start. We know so many of our guests here on the show started the same way. So what came next?
So after that I started to I kept working, but I started to think about ways that I could expand. And so, what I did was I started buying more duplexes because I had one formula that worked, so I kept doing it. But I have to say that I was a very conservative investor. I was really scared. I completely relate to everybody that is just getting started out. I wasn It sounds like, I took $40,000, and it was a piece of cake. But I was petrified. And every time I made another move, I questioned myself. And so, I did everything very conservatively. But I love to say that it amazing how real estate is so kind over time, and you say that sometimes, too. And so, that what I did. I just kept buying slowly but surely, but I was buying in the right places, I was holding, and my properties were appreciating like gangbusters.
How many did you have? Give us an idea. Maybe even let go to today? What did that look like your overall portfolio? Because I know you been in this a long time. So these shows are always different than the whole, like, I just got started two years ago. We could walk through first deal, second deal, third deal, fourth deal, done. So what did that overall picture look like in your life today? How many units do you have or have you had? Stuff like that.
So right now I have nine units, and I have a lot of passive investments. Because like a lot of people, once you reach a certain level, you realize that you can get other people to do a lot of the heavy lifting, and you can make the same amount of money or very close to it. And so, I navigated my portfolio to accommodate that. So right now with my investments, they all one to two units. And at a certain point, I had five duplexes, and I also had single family homes. And I sold everything in Los Angeles last year when I moved to Austin because it was just a great time to sell, and it was time. I had held on for a really long time. They had appreciated a lot. And it was really just a move that I needed to make.
It really scary to sell properties, I have to say. When they doing well, and they working for you. And you know you can make a lot more by making that move. And that was the time that I really needed to take action on that. So I had been selling them for the past few years. But I really got bold the last year.
So you mentioned you in passive investing, and then you also got some active income streams. Can you define how you look at those two terms.