Super Early Days

[Federico Lombardo]

Hi all, thanks for taking the time to read and provide your ideas.

I am just starting out (in the UK), and I have been reaching out to real estate investors on linkedin and facebook, organizing chats to learn more about where they started, where they see opportunities currently in our market, etc.

One question which all investors asked me is: What is my strategy?


I am just starting off, I have not yet decided on this, and would like some insight.

My Goal: To build long term wealth, but also transition out of a 9-5 as soon as possible - without rushing of course and doing things the right way (I'm 25y.o.)

I realize this is asking for the best of both worlds, and it's never that easy, but I'm willing to go to any lengths. I do not have loads of cash at hand, I have a few connections which I could potentially pool some cash together with. I could otherwise start with rent-to-rent given my cash situation, but this seems like a very inefficient way of doing things. Where I would ultimately like to end up is with multiple properties that I rent out, even on an international level, as I love to travel.

In order to achieve my goal: What strategies could you all recommend?

Happy to connect :)

Thanks again!

Federico

[Nathan Gesner]

Quote from @Federico Lombardo:

I'm curious why you want to escape your 9-5? Do you dislike working for others? Do you dislike work and want to sit at home wasting away in front of a TV? 

You will require many properties to completely replace your income, which could become a new full-time job to manage. If you buy a property that cash flows $200/month, you would need at least 40 of those to live a comfortable life in America. How long will it take you to build up the cash and invest in 40 houses? How much time do you think it will take to manage and maintain those 40 rentals? If you use a property manager, you'll need at least 50 rentals to cover the additional expenses. You can probably live well off ten houses if they are paid off, but where are you getting the money to do that?

You work full-time right now and don't have much money. You need money to invest in real estate, and you need real estate to escape your 9-5. See the problem?

I would focus on increasing your income. Move to a job you enjoy, or slave away at one that increases income so you can invest, or create side hustles. Wealth comes from hard work, discipline, and time.