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Getting rich on real estate
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December 14, 2001: 6:27 a.m. ET
Property has these brothers headed for early retirement.
Meghan Collins
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NEW YORK (CNN/Money) - Occupations: Real estate owners/managers
Residence: Normal, Ill.
Jarrod's bottom line: $551,750. ($37,000 in stocks. $27,000 in personal property. $160,000 equity in a home. $326,900 equity in Brown Enterprises. $850 in a checking account.)
John's bottom line: $805,940. ($5,000 in a checking account. $225,000 equity in a home. $55,000 in a 401(k) account. $16,240 in stocks. $12,000 in mutual funds. $4,800 in an IRA. $76,000 in a money market account. $85,000 in personal property. $326,900 equity in Brown Enterprises.)
Both brothers also have two paid-for cars a piece, valued at a total of $47,000 and $42,000 respectively.
Chronic investors: The Brown brothers, Jarrod, 27, and John, 30, both saved money from jobs at State Farm Insurance Co. during and after college.
Jarrod, who graduated from Illinois State University with a computer science degree in December 1997, said he had socked away $20,000 by the time college graduation rolled around.
John, who graduated from ISU in 1994 with a business degree, also worked at State Farm. He stayed on longer there than Jarrod, allowing his younger brother to manage their properties until the job became too great for one person. Jarrod said his brother has "always lived pretty frugally."
It was in March 1997 that the brothers purchased their first property, a building with four apartment units, each putting $10,000 down.
"Everything we've done, we've done together," Jarrod said.
Jarrod, who said his father encouraged the purchase when he was toying with the idea of buying a home, lived in one of the units for a year and a half - saving money that would have been spent on rent or a home mortgage.
They sold the building about a year later, having made $17,000 in profits. The two rolled the earnings into an even bigger investment - a $285,000 building with eight units on the ISU campus.
"We never took money out of (the company)," Jarrod said. "We used profits for down payments."
Now that the two are working full time in the business -- John quit his State Farm position January -- they take out some money for their salaries.
The future: The brothers now own seven buildings, totaling 51 apartments, most of which are on the ISU campus. They said the total property is assessed at $2.8 million.
"Until I get sick of it, I'll keep doing it," Jarrod said of investing in and managing properties.
Jarrod said he and John hope to retire together in no more than 10 years. The key to timing, he said, is finding someone they can trust to take over the business.
Who do they have in mind?
The Browns have a younger brother, Jim, 26, who is following in their footsteps - he too graduated from ISU, currently works at State Farm and has shown some interest in the business. Also, little sister Jill, 16, has some time to think about getting involved down the line. 
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