Mid-life Career Switch - 7 Years to Real Estate Freedom with Armand Salloum

People & Blogs

Introduction

In a recent episode of the Revamp Podcast, Drew welcomed Armand Salloum, a successful real estate investor from Delaware County, who shared his incredible journey of turning a side hustle into a highly successful career. Despite being initially labeled a "little guy," Armand's story proves that with determination and strategy, monumental achievements can be made. Armand's narrative is not just about financial success; it is also a testament to resilience, lifelong learning, and the importance of maintaining a strong work ethic.

Early Career and Auto Industry Journey

Armand's career began in a different arena—automotive repair and custom engine building. After graduating from Temple University with a finance and management degree, he helped his brother establish VAC Motorsports, a well-known name in the BMW tuning and performance world. This business grew extensively, occupying nearly one and a half city blocks in South Philadelphia. Despite the success in the auto industry, Armand recognized the physical demands of the job and the absence of a definitive exit strategy.

The Turning Point: Bicycle Accident and Mental Shift

Armand's life took a dramatic turn following a severe bicycling accident. This near-death experience instilled in him a sense of urgency and led him to question the sustainability of his current lifestyle. He realized the critical need for a secondary income source and began to explore real estate, driven by the notion of achieving financial freedom and a sustainable exit strategy.

Initial Steps into Real Estate

Armand made his first real estate investments post the 2008 financial crisis, buying a few properties at tax lien sales with his uncle. However, initial ventures were not very successful, and he took a brief hiatus. By 2013, with a renewed sense of purpose and backed by a solid learning curve, Armand resumed investing. Utilizing a home equity line of credit, he purchased his first investment property for $ 45,000, added $ 25,000 in renovations, and followed the Buy, Rehab, Rent, Refinance (BRRR) strategy.

Balancing Careers and Achieving Success

Armand managed his burgeoning real estate portfolio while maintaining a demanding 50-60 hour per week job at VAC Motorsports. His disciplined approach—dedicating mornings, nights, and weekends to his side projects—allowed him to accumulate 23 rental properties by 2021, which provided substantial passive income exceeding his full-time salary.

Strategic Acquisitions and Financial Discipline

A significant element of Armand's strategy was performing Fix and Flips alongside the BRRR method. This combination provided quick capital, allowing him to reinvest in rental properties. His approach was systematic: each property had to provide $ 300 to $ 500 net after principal, interest, taxes, and insurance (PITI). This perspective ensured financial stability and progressive growth.

Transition to Full-Time Real Estate

By January 1, 2024, Armand achieved his long-term goal and retired from the auto industry to focus entirely on real estate. His passive income had more than doubled his earnings from his full-time job, showcasing the effectiveness of his disciplined, incremental approach.

Sustainability and Future Goals

Although Armand hasn't made any new acquisitions in the last two years due to market conditions, he is preparing for future investments by expanding his lines of credit. His plan is to double his current rental income and potentially add 20 more properties over the next two years. Armand also highlights the importance of network building and continuous learning, which he implements through podcast listening, participation in REI meetings, and constant skill improvements.

Family, Mentorship, and Giving Back

Beyond financial goals, Armand emphasizes the value of family investment, always ensuring time with his children and wife. He also mentors young investors and engages in volunteer activities, further enriching his community involvement.

Keywords

  • Mid-life Career Switch
  • Real Estate Investing
  • Buy, Rehab, Rent, Refinance (BRRR) Strategy
  • Passive Income
  • Fix and Flip
  • Philadelphia Real Estate
  • Financial Freedom
  • Mentorship

FAQ

Q: How did Armand Salloum transition from the auto industry to real estate investing?
A: Inspired by the need for financial freedom and following a severe bike accident, Armand transitioned by leveraging home equity and utilizing the BRRR strategy alongside Fix and Flips.

Q: What was Armand's initial investment strategy?
A: He started with a Buy, Rehab, Rent, Refinance (BRRR) strategy, investing in properties priced around $ 45,000 and budgeting $ 25,000 for renovations.

Q: How did Armand balance his auto industry job with real estate investing?
A: Armand dedicated mornings, nights, and weekends to his real estate ventures while maintaining a 50-60 hour work week in the auto industry.

Q: What is Armand's long-term financial goal?
A: His long-term goal includes doubling his current rental income and potentially acquiring 20 more properties over the next couple of years.

Q: How important is networking in Armand's strategy?
A: Extremely crucial; Armand actively builds relationships with other investors and leverages learning through podcasts, REI meetings, and continuous education.

Q: What unique perspectives does Armand bring to real estate?
A: Armand combines a disciplined, methodical investing approach with an emphasis on family values and community involvement, viewing each property as a long-term investment not just for profitability but for personal fulfillment.