He Raised $98 Million To Build An Amazon-Like Platform For Investing In Real Estate

In the heart of Silicon Valley, amid the Dotcom era’s whirlwind, Andrew Luong’s upbringing was anything but typical. Raised by immigrant parents in a middle-class household, Andrew’s early experiences shaped his perspective on financial security and the value of passive income.

In this blog post, we delve into Andrew’s journey, from navigating financial hardships to founding Doorvest, a groundbreaking platform revolutionizing real estate investment.

Listen to the full podcast episode and review the transcript here.

The Genesis: From Pizza Delivery to Startup Land

Andrew’s parents, driven by the pursuit of a better life, arrived in the U.S. with limited resources. Despite his education, his father started as a pizza delivery driver, emphasizing the importance of finding stable, well-paying jobs.

This early lesson instilled in Andrew the value of financial stability and consistency. Growing up, he witnessed both the grit and determination required to succeed, traits that would become instrumental in his future endeavors.

Academic Challenges and a Serendipitous Entrance into Startup Land

School was not Andrew’s forte, and his academic journey was marked by mediocre grades. Despite this, he found himself in the heart of the startup ecosystem, studying in San Francisco. Here, he stumbled upon Misfit Wearables, a startup where he cut his teeth in sales.

One of the most important lessons he learned was that you can talk and pitch to 100 potential customers but have only about 10% convert. He learned to navigate dry spells and hand in there despite the numerous rejections. This lesson would be a robust asset when he started fundraising for this idea.

This experience provided him with a vehicle to contribute to something greater than himself while also affording him a modest income—a crucial factor in his journey towards financial security.

The Organic Evolution: From Real Estate Enthusiast to Doorvest Founder

With an eye on building financial wealth, Andrew ventured into real estate investment alongside his startup endeavors. He started small, purchasing his first rental property in Sacramento in 2014, a feat that earned him the title of a homeowner before he could legally buy a drink.

This initial step paved the way for acquiring over ten properties, solidifying his belief in the power of step-by-step discipline.

Andrew’s game plan was very cut and dried when it came to investing in real estate. He simply factors in and balances variables like rental income, operating expenses, debt costs, mortgage payments, the implied growth rate on the home’s value, and the rental income over time.

Andrew talks about how he would come up with 20% or 30% of the home value, which would be around $20,000 or $30,000, and get a mortgage for the balance. Next, he would refinance the house to liquidate some cash, which he could again plow into his next investment.

Along the way, he would also raise capital from friends and family in exchange for interest. He remembers visiting and talking to them to get their buy-in to this idea. It came to the point where people would approach him for ideas in real estate investment when they had some money saved up.

The Doorvest Vision: Building Amazon for Real Estate Investment

Doorvest’s inception was rooted in Andrew’s desire to democratize real estate investment. The platform envisions a future where individuals can effortlessly browse, select, and purchase investment properties online.

The idea for Doorvest emerged when friends would also question about how to navigate real estate investing steps like finding a market, finding an agent, writing offers, getting a mortgage title, insurance, renovating, leasing, managing, accounting, and then the bookkeeping.

Andrew quickly showed them how to build a portfolio but realized that using these tips practically was not that easy. Enter Doorvest. Much like Amazon’s seamless shopping experience, Doorvest aims to simplify the real estate investment process, making it accessible to a broader audience.

The Funding Journey: Combining Equity and Debt for Growth

To fuel Doorvest’s growth, Andrew and his team raised nearly $23 million in equity and secured $75 million in debt. This capital infusion is strategically allocated, with equity supporting the platform’s development and operational aspects, while debt underpins the acquisition and renovation of real estate properties.

Storytelling is everything, which is something that Andrew Luong was able to master. Being able to capture the essence of what you are doing in 15 to 20 slides is the key. For a winning deck, take a look at the pitch deck template created by Silicon Valley legend Peter Thiel (see it here), where the most critical slides are highlighted.

Remember to unlock the pitch deck template that is being used by founders around the world to raise millions below.

Andrew’s fundraising journey revealed invaluable lessons. He emphasizes the importance of forging relationships with founders of successful companies, seeking their advice, and leveraging their networks for introductions to potential investors.

Momentum, he asserts, is key in fundraising, driving the process forward and accelerating decision-making and outcomes. Andrew’s dream is to help more Americans own homes and provide services similar to a relationship manager at a bank.

Parting Words: Embracing the Entrepreneurial Rollercoaster

In parting, Andrew shares two essential insights. Firstly, he underscores the emotional intensity of entrepreneurship, emphasizing the necessity of genuine passion for one’s venture. Secondly, he advocates for taking the plunge—action, he believes, is the most potent catalyst for growth.

Andrew Luong’s journey from a middle-class upbringing to founding Doorvest exemplifies the power of resilience, discipline, and a relentless pursuit of one’s vision. His story serves as an inspiration for aspiring entrepreneurs, highlighting the transformative potential that lies within each individual’s unique journey.

Conclusion

As Doorvest continues to innovate in the real estate investment space, the legacy of Andrew’s determination and entrepreneurial spirit will undoubtedly leave a lasting mark.

Listen in to the full podcast episode to find out more, including:

• An upbringing and early financial struggles shaped a perspective on security and the value of passive income.
• Despite academic challenges, entry into the startup world at Misfit Wearables provided a platform for accelerated growth.
• The approach to real estate investment emphasizes the power of consistent, disciplined action, leading to the acquisition of over ten properties.
• Doorvest is envisioned as the ‘Amazon for Real Estate,’ aiming to simplify the investment process for a wider audience.
• Doorvest’s funding strategy combines equity for platform development and operational aspects and debt for property acquisition and renovation.
• The fundraising journey underscores the value of building relationships with successful founders and driving momentum in the process.
• The journey emphasizes the importance of genuine passion for one’s venture and the need to take decisive action in the entrepreneurial journey.

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