Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated about 6 years ago,
my (probably) unrealistic plan to give away a million dollars
Hey folks, wanted to get a sanity check on a 13 year old plan i put together to generate 85k/month. i know i know, it's crazy and it's going to take a ridiculous amount of long term focus, sacrifice and hard rock.
Like any big goal, what i wanted to focus more on was year 1. I feel confident that if I can get 2019 right, things will slowly start to build up from there.
For me, I operate better when i know there's a plan...even if it's one 13 years out when anything (and everything) will happen. but hey, it's a start.
WHY
i want to generate 85k and be able to give away a million dollars at the end of the year to an organization I believe can and will help change the world for the better.
STRATEGY
buy and hold, cash flowing small multi-family first year then upgrade (thru 1031?) to a 50 unit apartment complex in 2020. from there 2023-2030 - continue to focus on apartment complexes and trade up to either bigger units or mix it up with residential or focus on syndication to do even bigger deals? cash flow will always be the focus with conservative leaning on forced appreciation. any natural appreciation will just be a bonus. any after sales profit will be put down in savings for future goals.
2019 - 1.25k/month in cash flow
what: 1 duplex - 250/month, 1 fourplex - 1k/month (250 a unit) = total, 1.25k/month
when:
- by June 2019 - save up 100k.
- Between June to September, start to research a market, build a team and analyze 100 deals. Focus on BRRRR strategy.
- September - purchase duplex ~ all in 60k (depending on what I find, all-in will go into down payment, closing costs, rehabs, etc)
- Between September to December - finish upgrades, move in tenant, save up another 30k, start research for fourplex
- December - purchase fourplex - (40k leftover from initial 100k that was saved, get back say, half from refinance, 30k, 30k from the 3 months that I was able to save up and 3k from cash flowing property) = all in 103k
2020 - 5k/month in cash flow
what: move up to apartment complexes, 50 unit
when:
- Sept - have 150k saved up from day job + cash flow
- Jan-Sept - education on apartment complexes and find a 1-2 partners to go in on a deal.
- Sept-December - find a market, analyze 100 deals
- December - purchase 50 unit
2023 - 15k/month
not sure yet..
2026 - 42k/month
not sure yet..
2030 - 85k/month
not sure yet..
FIRST STEPS
Income/expenses: leave corporate, go back to commission structured job. Scale side hustle. Start earning and saving 50% of income to hit 100k savings in June 2019
Educate - read 1 book every 2 weeks, listen to at least one podcast episode every other day
Network- explore markets, go to a meetup/webinar once a month, take experienced REI out to coffee/lunch/dinner
Platform - start bi-weekly short format interviews with REI
Feel free to rip this apart! Would love to hear feedback on anyone that's already done this, are getting close or are in the middle of the grind questioning everything about life
Thanks y'all!