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.

[Jonathan Greene]

Seconding what @Nathan Gesner said. You are falling into the biggest trap out there for young people right now - FIRE and quiet quitting. Why? Working is awesome. Getting a steady, reliable paycheck is awesome and it is how you keep yourself lendable and scalable.

This - "transition out of a 9-5 as soon as possible" - is not what you should be saying at 25 years old. You will rush, pay people who you think can help you, you will try creative finance and sub to and fail, you will be too eager to grab shiny objects. Pump. The. Brakes.

Learn about real estate investing so you know what your first target is. They are asking you the right questions. You are looking for a way out right now, not a way of life and a complement to your day job. You are a mark for the gurus when you talk like that so be careful.

[Drew Sygit]

Agreeing with both @Nathan Gesner and @Jonathan Greene

If it was easy, who would be left to do all the hard work?

It's great to dream, and dream big, but then you have to create a plan to reach your dreams - and THEN execute the plan. Which is where most fail when they realize how hard it will be.

One of my favorite all-time sayings, 

"Actions always speak louder than words"!

[Federico Lombardo]

Quote from @Federico Lombardo:

"What strategies could you all recommend?"

"I'm willing to go to any lengths."

Thank you all for sharing your experience and thoughts on my post. These have been very grounding.

I don't want this feed to turn into a chain of the same type of comments so I'll bring attention to what matters the most - two quotes from my original post.

Thanks again all:)

[Federico Lombardo]

"What strategies could you all recommend?"

"I'm willing to go to any lengths."

[Nathan Gesner]

Stay old-school. Wealth is built slowly over time, with consistent discipline. Please don't get distracted by the get-rich-quick crowd that's making money by selling their courses. For example, Pace Morby made really good money working his butt off as a contractor, then he invested that money into real estate. Now he sells a course, a book, and has a monetized YouTube channel. He's probably earned around $60 million from "teaching" others. Instead of teaching people to do what he did, he tells them they can build wealth with no money down. There's a sucker born every minute.

The best way to build wealth is to increase earnings, reduce expenses, save, and invest wisely. It takes education, time, and discipline. There will be hard knocks along the way. You'll screw up and lose some money, maybe even a lot of money. Suffer through and you'll eventually be rewarded.

[Federico Lombardo]

Appreciate it @Nathan Gesner