Welcome to the inaugural ArrowDoor blog!
I am sure most of the initial viewers of this blog will be familiar with at least one member of the ArrowDoor team, whether you and I have met, or you have met one of my partners, Harper Jones, and Hunter Jones. You may see us on social media, you may have known us for a long time, or you may have only known us for a few weeks. I wanted to take the opportunity in the first blog to introduce myself, as I am sure the other two will do in the coming blogs.
My name is Peter Pratti, I go by Peter, Pete, or whatever anyone decides to call me. I have been in real estate approaching 3 years at this point. It has felt like longer than that sometimes, however, myself and our whole team still consider this just the beginning and we realize we have a lot more to learn.
How did I get to the point I am right now, typing a blog on my computer for my company’s website, being a part of my own company, and investing in apartment buildings? I never even thought I would work for myself in my lifetime, let alone throughout most of college. This ArrowDoor blog will have tons of great content and knowledge in it, but in this first blog I will be discussing my short journey and how I arrived at this point, in 2019, at 22 years old. I will detail the events taking place first, and then transition into how that has shaped who I am and how it has all led me to this point in time.
Let’s start briefly at the beginning, where my age was in the single digits and I was a little kid without a care in the world. I was born in New York on Long Island. My family had always been in New York ever since the vast majority of my lineage had immigrated from Italy. The highlights of that time fill my mind with the New York Mets, Italian food, the Long Island beaches, and spending time at my grandparent’s house. I am watching the Mets game as I write this article. I watch about 100 of their games per season and I do not plan on discontinuing that habit at any point.
I am going to take us back in time for a minute. Being brought up in an environment with avid baseball watchers and die hard Mets fans, of course I would begin my baseball career at the young age of 4. I played recreational baseball as a little kid any chance I got. If I was not playing real baseball, I was playing whiffle ball or playing baseball with a tennis ball in the driveway. If we can promptly fast forward through about a decade to high school, you will find me at Farragut High School in Knoxville, Tennessee. I was taking all the higher level classes, getting great grades, and working very hard at everything I was involved in. I was deciding on what I wanted to get into after school for work, and eventually decided on being a Nurse Anesthetist. Yes, a very hard word to spell or say. We will come back to this later. It was at Farragut that I played all four years and was even able to take part in a state championship victory my junior year. My senior year we almost repeated but came up short in second place. I went on to play college baseball at Lincoln Memorial University in Northeast Tennessee (essentially in the middle of nowhere).
During my sophomore year of college, my friend Harper who I had known for several years began to get involved with real estate. I watched what he was doing for several months, asked him about it, watched him take calls with sellers of real estate, and eventually immersed myself with the vast amount of information. I began to wholesale real estate (sourcing properties for investors and selling to them for a finder’s fee) on my own. I did a few deals and was making some money, not huge money, but I was also 19 so it does not take much to think that you are some sort of King of the universe at that age. Eventually, Harper and I actually teamed up and began wholesaling real estate together and splitting profits. During this time, we purchased 13 units of rental property, continued to wholesale and flip, and ended that year with another 35 units as Hunter joined the team. On Wednesday, August 28th of 2019, we closed on a 20 unit complex and our unit count is just over 70 rental apartment units. We have transacted on millions of real estate at this point, but still have so much farther to go.
Now there you have it, the abbreviated story of the short life of Pete Pratti. What has contributed to getting to this point, and where are we going in the future?
Let’s rewind this story a little bit. Remember, I was at my grandparent’s house often when I was little. My grandparents were and still are these crazy Italian people who made great food, love their family, and work extremely hard. I would like to key in on the last point, as I saw a work ethic and propensity to work hard unlike anything I have seen before. Going back a few generations, my family worked their way up from lower class to middle class as the generations progressed, eventually to my childhood where I was brought up in a comfortable middle class setting. I was comfortable, but my family was never close to “wealthy.” My grandfather had to work 7 days per week (with an incomplete high school education) for quite a few years in order to provide and make enough money. My dad had to travel when I was little and was often away from home in order to make a living. What is the point I am making right now? My grandparents, yes the ones that did not finish high school, eventually worked so hard that they reached the “middle class” status. They had made it! They owned a house, a car, even had a few nice things! My dad went to college, worked hard and went farther financially than his parents, and brought me up in an extremely comfortable environment that I am forever thankful for. Now it was time for me to go to college, go to graduate school, work hard, and get farther than them both, right?
I have spent so much time going over this to make a very important point. I had seen a work ethic like no other. A strong work ethic instilled from young childhood all the way to my high school and college years from being around every member of my family. I had good skills to move me forward in my secular career such as work ethic, time management, a competitive fire and desire to win, and leadership experience from playing competitive baseball. There was one problem, why was everyone in my family “middle class”? These people were working incredibly hard, stressed out, traveling, but had seemingly decent jobs. I saw this and was pretty much destined for the thinking, “I will live an upper middle class life if I can go to college and work hard.” So that is where I sought out to be a Nurse Anesthetist. I would earn about $150,000-200,000 per year after school and I would be set. I would have job security, less stress, no traveling, and a good salary.
Clearly, that did not happen. Harper came along and introduced me to the world of business and real estate. From there I took the information and ran. I finished out the nursing degree that I had to get before anesthesia school while being in real estate and trying to juggle school and business. It was extremely challenging and hard to mentally get through it, because I knew I did not even want to use my degree before I finished it! Alas, I had started the degree and I was definitely not going to drop out, it is not my style to start things and not finish.
I chose this route because I had seen the hard work and effort of my family fail to amount to what it should have. No one was wealthy, no one was driving around in Mercedes-Benz, no one was living in million dollar houses, no one was riding around in boats and wearing Rolexes. The problem was that the work was benefitting an owner of a company! Money that was earned was being taxed at a high rate, money that was left over was carefully saved and conservatively invested, all while the value of money decreased in a process called inflation. It is a pretty tough cycle to tackle! It is remarkable that they have provided such an amazing life for their family. It was that great work ethic that was able to at least propel them into the above average!
We have now gone from start to finish, beginning to end, “full circle” as some might say. I am in real estate to create freedom. I am in real estate to build relationships and meet many more outstanding people than I already have at this point, and that is even considering there have been some exceptional people added to my “network” already. We generate short term capital through wholesaling real estate, and long term capital through investing in apartments with our own money as well as equity investor’s money.
Apartments give us one crucial thing that my hardworking grandfather needed- cashflow! As rents come in and expenses are paid, we get a small trickle of money back from our initial investment every month. This is passive income and it is absolutely crucial to growing wealth. The wealthy are wealthy because they are making money as they sleep, not to mention this type of income is the lowest taxed income that exists. We do not want to keep a bunch of cash around- cash decreases in value every day! Terrible for the common man!
To wrap this up, I am not doing this because I am greedy. I am not some money hungry lunatic. I am nowhere near wealthy or “rich.” I want the freedom to have time, to not be stressed out constantly, not lose money to inflation and a stagnant 401(k) at the mercy of the roller coaster stock market, and not be taxed to death like most Americans! ArrowDoor is heading in a great direction, with myself, Hunter and Harper as the right partners in the company to make it happen and reverse these trends.
In the ArrowDoor blogs of the future, I will detail why I chose real estate and specifically why myself and ArrowDoor chose passive income producing assets like apartments to grow our financial portfolios and to make us free and attain the life we want. Enjoy, and reach out to any of us if you ever have questions!