Retire Early
Lifestyle
Retirement; like your parents, but way cooler
In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 4th decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience. |
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Interview
with Tom Brickman, The Frugal Gay
Billy and Akaisha Kaderli
There is no
one-size-fits-all when it comes to the Path of Financial Independence.
It is one of our joys here
at RetireEarlyLifestyle to bring to our Readers
interviews of
people who have
found their own unique ways to obtain financial "critical mass".
Tom, who calls himself The
Frugal Gay on his social media, has wowed his followers time and again with his
ability to remodel older homes and resell them at profit. He owns properties in
Ohio and Texas.
Enjoy this interview with
Tom!
Tom Brickman
Retire Early Lifestyle: Could you tell our Readers a little about yourself? When
did you start your journey to
Financial Independence?
What was your motivation? What turned the light on for you to think outside of
box?
Tom: I started exploring this when I realized job hopping wasn’t
going to fix my issues. I wanted ownership of time. I saw very early the power
of real estate. So, I used real estate to buy ownership of my time. It took me
approximately 17 years, from my age of 21 to 39 to hit this goal.
REL: We understand that you used to sell bras on eBay. How did that get started?
Do you still sell on eBay?
Tom: I started out of necessity. Gap offered tuition reimbursement,
but I had to buy books, parking passes and all things that go with college. I
started selling purses, 2 at a time. They were $1.50 and I was selling them for
around $60 to $70each. This helped me pay for a semester of college. Yes, I
absolutely still sell on eBay. It’s a safety blanket. I sell more during months
when my real estate expenses are high and I sell less when I just need downtime to chill.
REL: You also worked at Gap. How did you get from working at Gap to remodeling
houses?
Tom: Gap was my high school job. It helped me get through college.
House remodeling kicked in high gear in 2009 when I saw I couldn’t afford nice
fancy houses. I needed to take what I could afford and make them nice and
fancy.
REL: Were you always handy with tools, how did you learn your construction
skills?
Tom: I wasn’t and am not! I can step in and do some small stuff but
I built a team around me that can crush it. This team makes me look good. It was
a slow process, but I made friends with a guy who did tile and expanded my team
when and if I could.
One of
Tom's remodels
REL: Have you had any failures in your Remodeling/Rental business?
Tom: Absolutely. I bought a house in 2005 and sold it for a 22k
loss in 2016. I over paid. I also made lots of mistakes early in my career.
Fancy finishes don’t always mean long-lasting
REL: How do you choose properties to remodel? What are your criteria, what do
you look for?
Tom: This year I’ve bought 4. I always look at “c” class, blue
collar type neighborhoods. Single family and typically ones at a steep discount
because of being dated or neglected. These typically make the best returns.
REL: Do you do all the work yourself or do you hire out contractors?
Tom: I hire contractors in both states. I project manage the
projects though. Meaning I pick finishes, contractors and set the budgets.
REL: How long have you been doing this?
Tom: Real estate - 20 years now. I turned 41 a few months ago. – I
chased financial freedom for 17 years till I hit it at 39.
REL: How do you determine the rental amount? Is it based on comparables in the
neighborhood or on the amount of money you have invested in the property?
Tom: I look at all metrics, cash on cash return, comparables, and
economic outlook. If the city has growth happening in certain neighborhoods. I
typically want to be in those or close to those.
The
interior of one of Tom's remodels
REL: Do you do background checks and credit scores on your renters?
Tom: Absolutely. In 2015 Zillow started providing this and it has
made my daily life so much better.
REL: Do you use a property manager? If so, what percentage to you pay them?
Tom: I have a manager on 2 at 10% of rent. An hourly contract
employee on 13 of them at $20/hr and I self-manage 9 local ones close to me in
Dallas TX.
REL: Do you budget or
track your
spending? Are you on track for FI?
(Financial Independence)?
Tom: I do. Yes, still on track. I just love reinvesting my income,
so I keep picking up new properties.
REL: Do you determine the fixtures and color schemes yourself? If so, how did
you learn this?
Tom: I do. I pull inspiration from magazines tv shows and places
I’ve visited. I am just finishing my second “boho style” house and it was
inspired by some of the places I visited in New Mexico.
REL: Do you have any tips for our readers about remodeling and selling homes if
they wanted to do this themselves?
Tom: Don’t bite off more than you can chew! HGTV makes it look
easy. It’s not. Missing small things can cost thousands of dollars. I missed a
plumbing issue last year & it cost me 10k to fix this year. So, proceed w
caution. Especially when starting out.
Another example of a remodel
REL: Can you share with us anything about how your portfolio is structured? Are
you 100% in Real Estate or do you own liquid assets as well? If so, what
percentage of your Net Worth are they?
Tom: I’m 70% real estate, 25% stocks and 401k with a few
alternative investments, and around 5% cash.
REL: Interest rates thus mortgages have moved higher in a short time frame. Has
this effected your outlook and or opportunities in the real-estate market?
Tom: It’s slowed me down some, but I’ve still bought 4 properties
this year. If it makes sense at 8% interest it's going to be a home run at 4-5%
interest when and if I can refinance.
REL: What are your greatest passions in life?
Tom: I absolutely love taking garbage and turning it into something
great. Showing others this over the past few years has also been truly awesome.
REL: How do you
contribute to the world?
Tom: I try to educate others,
volunteer my time at a local charity,
and donate when it makes sense. I’ve actually turned 4 of my tenants into home
owners over the years. I love sharing financial literacy
REL: Where do you see yourself in 5 years from now?
Tom: I’d say in 7 years I see my partner leaving his job and we'll
travel abroad. For the next 5, I plan on continuing to grow my brand and my
portfolio. Possibly some different asset classes. We will see how things
progress.
Tom and
family members
REL: What is your biggest splurge?
Tom: I bought a new car in cash. That was nice to be able to hand
over 34k and not stress over monthly payments.
REL:
Is there a happiness mantra or motto that you've found to be very helpful?
Tom: I’m trying my best right now. I’ve failed many times. But I
get up and try again the next day.
REL: If you could give any advice to a younger you, just starting out this
journey, what would it be?
Tom:
Buy more real estate! I passed on many great deals being conservative.
REL: What do you do for fun or entertainment?
Tom: Travel, spend time with family, go real estate shopping and
hang out with our dog Aldi.
REL: I understand that you keep a blog with your stories about remodeling homes
and selling them. Where can people find your blog?
Tom: I do. Thefrugalgay.com
and
on all other social media you can find me @Thefrugalgay11.
REL:
What are you most excited about right now?
Tom: New projects on the horizon. Things I haven’t tried yet. Iike
additional types of real estate.
REL: If you had a warning label, what would yours say?
Tom: Proceed with caution. When
all else fails Spaghetti will fix most issues.
REL: What has been the highlight of your year?
Tom: 2023 has been a rough year. I’ve lost a sibling and my dog
woodie. Highlight would have to be having the ability to be with my sister when
she needed me. We named the Airbnb after her, it’s called The “Katie Lee” and
it’s located in Toledo Ohio. The first paid guest was actually a film studio
that did interviews for a true crime documentary. This was a huge deal to my
sister and to me to have her house in this documentary. It hasn’t come out yet,
but it’s called People Magazine investigates.
REL:
What legacy do you want to leave on Earth once you’re gone?
Tom: I’m an Art fanatic, and I try to show that in my houses. I
have set up properties that I wanted donated off when I go and I'm also working
towards setting up a hospice-type property for those in the LGBT community who
don’t have places to go in their final time on this planet.
We
at RetireEarlyLifestyle would like to thank you, Tom, for your willingness to
share your wisdom about utilizing real estate to get to FIRE. We are so sorry about the loss of your sister and your
beloved dog. Hopefully, going forward next years will be gentler to you.
Retire
Early Lifestyle appeals to a different
kind of person – the person who prizes their
independence, values their time, and who doesn’t
want to mindlessly follow the crowd.
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