Section 8 Karim
Section 8 Karim

At just 23, real estate investor and mentor Karim Naoum, better known as Section 8 Karim, has marked a new milestone: the purchase of a 2018 Bugatti Chiron, one of only 500 in the world. The luxury car, valued in the millions, is the latest symbol of his journey from a Section 8 housing program intern earning $8.50 an hour to owning more than 200 properties across the U.S.

Building a successful real estate portfolio can sometimes take decades, even for seasoned investors with plenty of experience and industry knowledge.

This fact makes 23-year-old influencer and real estate mentor Karim Naoum's portfolio of over 200 properties all the more impressive. Known in the industry as Section 8 Karim, his career showcases how real estate investment can be accessible and profitable with the right systems and mentality.

Now, his success has enabled him to buy a 2018 Bugatti Chiron, one of just 500 in existence worldwide, making him one of the youngest entrepreneurs in the United States to own such a rare supercar. "Buying the Bugatti isn't about the car itself; it's a symbol of what's possible when you commit to building something step by step," Karim says.

The Advantages of Insider Knowledge

Karim's initial success began with his internship for the Section 8 housing program, where he only made $8.50 an hour. His time in the internship proved invaluable, however, as it provided him with the insider knowledge he needed to understand how the program works and how to navigate its many rules, loopholes, and hacks that help maximize returns.

From here, Karim realized how lucrative Section 8 rental properties could be, an instinct he soon followed up on by using Other People's Money (OPM), a debt management program, and securing properties in landlord-friendly states. Soon thereafter, he was able to scale up from a single rental into a portfolio now totaling more than 200 properties, all without seeing most of them in person.

Maximizing Returns and Avoiding Risks

Karim Naoum
Karim Naoum

A common misconception about Section 8 tenants is that they often destroy properties or fail to pay rent. Karim's experience with these tenants shows that this line of thinking simply is not true, as many of these tenants have to wait upward of 10 years or more to secure approval for their housing. These wait times discourage them from doing anything that might risk losing their voucher.

In fact, they sometimes offer more financial security because the average Section 8 tenant stays for 7.5 years, typically outlasting traditional renters. Section 8 properties also provide financial security because their rent is guaranteed by the government, shielding them from economic downturns.

When it comes to returns, Section 8 properties can be surprisingly lucrative since the government pays above-market rents, typically 10–30% higher than the market offers. Karim himself focuses on single-family homes under $100K in landlord-friendly states to improve his earnings. He also uses DSCR loans to cover the down payment, as they qualify based on a property's rental income rather than the landlord's personal income, bringing down payments to $8K–12K per deal.

Developing a Real Estate Empire

As a highly successful real estate investor, Karim has dedicated himself to mentoring others seeking to benefit from Section 8 investments. His insider knowledge makes him a particularly valuable resource in the sector, having learned information concerning negotiations, inspections, and how to navigate paperwork. He also recommends that new investors utilize these resources: HUDUSER.gov, InvestorLift.com, Incfile.com, SpotCrime.com, Thumbtack.com, and AffordableHousing.com.

And while his real estate empire grows, Karim's Bugatti Chiron stands as a statement piece, a reminder of how far he has come since making $8.50 an hour. "The car is flashy, but the foundation behind it is 200-plus rental units paying me a steady income every month," he says.