It is a real pleasure to make this video on the book "How I amassed a wealth of several million euros with a salary of € 1,750" by Goulwenn Tristant. I've had the opportunity to chat with Goulwenn quite a bit lately: he's clearly a young talent, and he has a huge entrepreneurial spirit. What's even better about his personal story is that it is quite possible, if you want to, to achieve the same results in real estate.
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Goulwenn began his real estate adventure in 2006, with the purchase of a studio that was to serve as his main home. In 2014, just 8 years later, with the purchase of a batch of apartments, he increased his real estate portfolio to 25 studios, with an estimated value of over 2 million euros.
Contrary to popular belief, to invest in real estate you don't have to be an expert in the field, come from a wealthy family, or earn tens of thousands of dollars.
Goulwenn is proof of this: he started his investments without knowledge or special help, with his firefighter salary of 1750 euros and with a starting capital of 1000 €!
Nothing exceptional at first, but what results after a few years of application!
Once he has repaid all of his loans, he will be able to collect rents of up to 11,000 euros per month. Not bad as an annuity !!
Reading his book on real estate, we understand that his experience is not a long calm one, everything is not always easy, you have to be prepared to face tense times. But if we have determination, and if we surround ourselves with positive people who support our projects, nothing is insurmountable.
Goulwenn's real estate story
After buying his first studio for € 76k in 2006 in the Paris region, the author continues to follow the development of real estate prices in the sector and notes that prices are increasing.
2 years later, looking at local offers, he came across 2 similar properties for sale for less than € 74k each. It was clearly a great deal and Goulwenn decided to take the opportunity.
It was from then that he realized the potential of this type of investment.
Not even 6 months later, Goulwenn bought 4 new studios, then a year and a half later still 6.
At the end of 2010, it already had a portfolio of 13 studios.
After a new purchase in 2011, serious cash flow difficulties forced him to sell 3 of the studios in 2013.
Once the situation was under control, Goulwenn changed his strategy and turned to the purchase of buildings to be divided into several lots. Between the end of 2013 and mid-2014, he bought 4 buildings for a total of 14 new studios, which allowed him significant savings, since on these buildings he did not have to pay the condominium fees.
At this time, with a capital of 25 apartments and 8 years after his first studio purchase, Goulwenn is satisfied with the success of his real estate project and decides to focus on other life projects, such as his career as a firefighter. professional and his passion for running and triathlon.
Advice for getting started in real estate
What lessons can be learned from the author's experience that are useful for someone who wants to start in real estate? Here are a few.
The main difficulty with serial investments like these is to convince the banks to finance the projects. The default operation of banks in France is to grant mortgage loans as long as the borrower's debt ratio is less than 30%.
A parameter that sometimes makes it possible to exceed this threshold is the "remainder to live", that is to say the remaining sum after deducting from the monthly income the amount of the loan repayment, but the room for maneuver remains limited.
If in the very first operations the banks show themselves to be available to support a young person with initiative, very quickly, as soon as the projects increase in number, they are increasingly reluctant to grant credit.
Despite its excellent results in previous investments, and despite having always repaid its monthly payments on time, Goulwenn is encountering more and more difficulty in financing its new projects.
He is forced to "trick" the system, he has to somehow hide his previous investments from the banks, with astute management of his current accounts, very well explained in the book.
Then, to achieve the goal of your plans, you have to learn not to stop at a no.
For each new purchase, for each new real estate project, in order to obtain a positive response from a banking establishment, Goulwenn must accept multiple interviews in several branches. To get a positive response, he must first hear between 5 and 10 negative responses.
It is tempting at these times to get discouraged and let everything down. But these are the times when you have to hang in there, believe in your project, and stay determined.
Surrounding yourself with positive people, who encourage you and push you to persevere, is essential support.
As a real estate strategy, the author advises to favor small surfaces, such as studios. Even if in proportion they are a little more expensive, they allow a higher yield. An interesting alternative, but only after gaining experience, is to buy lots of apartments (like whole buildings), which proportionately reduces the costs of purchase and maintenance.
A good relationship with tenants
For all his purchases, the property was already occupied by a tenant. This allows you to immediately have a rent that contributes to the repayment of the loan. To further reduce the risks, it may also be a good idea to take out insurance against unpaid rents: for around twenty euros per month, you can quietly cope with occasional difficulties for tenants.
Depending on their income conditions, tenants can benefit from social assistance which is sometimes not insignificant for the payment of rent. You should not have a priori negative about this aid: on the contrary! You can thus count with your eyes closed on the regular payment of aid by the social organization (often CAF) directly into your accounts.
In the long term, it is very important to build a good relationship with your tenants. When choosing your future tenants, be vigilant and view them as future members of your team or family.
If you make the right choices, and if you subsequently nurture your relationship with them, you will make sure that they will stay with you for a long time, that they will maintain a constructive state of mind in case of problems, and they will allow you to transform your financial investment into a rewarding human adventure.
Aim for added value, and be careful at the start!
When buying real estate, first aim for a capital gain over time. Aim to buy a good that is 20-30% cheaper than the market price. It takes a lot of research, but if you search every day you end up finding.
Very often, sector experts advise avoiding the purchase of a property that generates a land deficit: that is to say that the monthly costs, such as the repayment of the credit and the associated expenses (charges, taxes, insurance), are higher than rent income. It depends !! We can sometimes see that behind a land deficit there is a real bargain!
When getting into real estate investing, be careful not to rush! Always make logical choices, and take calculated risks. You will surely have to face some difficulties along the way. You must therefore protect yourself in order to be able to cross them as best as possible, both from an economic point of view (you must have set aside savings to preserve your repayments), but also from an emotional point of view: especially at the beginning, the time to build self-confidence in the field of real estate, it is necessary to remain cautious to avoid bad experiences which can push you to stop everything.
Goulwenn's goal by sharing his real estate experience is to show that, with determination and taking action, owning three or four studios, in order to build a better retirement, is widely accessible to everyone. world.
You have to want to learn along the way, have confidence in your ability to overcome difficulties, and adopt a long-term vision, between 10 and 20 years old.
With that, even without prior knowledge, without special help, and with quite ordinary starting capital, we can succeed in building up a millionaire heritage.
And you ? Have you already implemented a real estate strategy to increase your capital or your income?
What are the first concrete steps you can take to make your real estate projects a reality?
Leave a comment below.