I'm Hungry, I'm Driven, I'm Chomping At The Bit... thoughts?

I'm Hungry, I'm Driven, I'm Chomping At The Bit... thoughts?

Investor · Salt Lake City, UT · Member since 2017 · 7 posts · 3 votes

Here is the deal. I finally need to get real and lay it all out on the table. So short background and then I'll give it all away to see what you have to say. 

My wife and I officially started investing in real estate 2 years ago when we spent every dime we had saved on our home and renovated the basement to have renters. We both had just graduated from college (with no debt) and had no idea what we were doing. Long story short and with some hard lessons we now have renters and they pay 3/4 of the mortgage with very little maintenance. It is incredible.

Our goal is to have 10 rental properties (duplex triplex fourplex) bought, paid for, and fully rented before I turn 50 (23 years from now) so we can be financially free and take on the world. Then I started to read, listen, and study and I now feel that dream, though reasonable, is just drastically undershooting the potential that we have, and saving the freedom for the end of our lives. I'm sure that goal can be reached and exceeded long before then. I listen to these guys on the podcast with hundreds/ thousands of doors under their belt and living the dream that I have. I know it can't be easy, I have listened to hundreds of success stories and it takes incredible persistence and determination, but now is the time to start.

Here is what I have:

  • $40,000 in cash (thanks to my amazingly frugal wife)
  • A home that is currently 10% paid off (thanks to our amazing renters) 
  • a $90,000/ year W2
  • 0 debt other than our house
  • More drive, passion, and grit than anyone else

So my question is... who has been in my shoes, and what are you doing now/ have done to accomplish the dream?

It is now my time.

I look forward to learning from the true winners within bigger pockets.

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Member since 2016 · 13k+ posts · 12k+ votes
9y

First step is to educate yourself on the value of money. Your financial plan is good up the point of saying "fully paid for". That is not investing, equity is where cash goes to die.  You will lose thousands per month in lost income and decades of wasted time on your path to wealth with that philosophy. Additionally when the markets turn you will lose it all. You would be farther ahead to put it in a safe and secure managed investment fund.

Investors make millions and become rich by using OPM not their own. You must spread your cash around to achieve your goals. Paying off rental income properties is not the path to financial freedom it is a hoarders mentality.

You can cut your path to success in half or less by understanding the true value of cash is not allowing it to die a slow painful death as equity. 

You have the income and hopefully the credit to move forward now. 

You can begin to hoard money after you reach your final goals not before. In the mean time be a investor not a hoarder of cash.

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  • Rental Property Investor · Chicago, IL · Member since 2015 · 275 posts · 271 votes
    9y

    @Brett Childs

    Congratulations on your attitude. 

    Here in Chicago Suburbs we use a cash flow investment model we call

    2-5-7. 2 Years, 5 properties and paid off in 7 years.

    You can do 2-10-7 or or 2-20-7. The numbers work out. 

    Depending on the market conditions and cash flow in your market. 7 year pay off may be just too aggressive you can adjust it to 10 years pay off. 

    Contact me and I'll be be happy to send you a break down if you want. 

  • Crystal SmithPro Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
    9y
    Originally posted by @Brett Childs:

    So my question is... who has been in my shoes, and what are you doing now/ have done to accomplish the dream?

    Our situation was little different numbers wise but here's what we did:

    • Joined a few REI groups to start networking. You've started that w/ BP, but don't limit it
    • One of us got a license while the other remained unlicensed.   You don't need a license to do the business but it became part of our strategy
    • Start to learn the various ways to fund your deals, bank loans, hard money, private money, syndication....  I mention this because there's a limit on how many Fannie Mae/Freddie Mac loans you can receive & eventually you'll have to find other ways to close on deals besides conventional bank loans
    • Find a local Kiyosaki cash flow game.  It will help you w/ the financial acumen & setting your goals. 
    • Then we started implementing & also made sure we had a continuous learning plan
  • Anthony GaydenPro Member
    Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
    9y
    Brett Childs I have been in your shoes and there is only one thing you can do and that is GO FOR IT!!!!! Push beyond your current goals because they might be too small. Go look for deals. Do whatever it takes to accomplish your goals.
  • Member since 2016 · 13k+ posts · 12k+ votes
    9y

    First step is to educate yourself on the value of money. Your financial plan is good up the point of saying "fully paid for". That is not investing, equity is where cash goes to die.  You will lose thousands per month in lost income and decades of wasted time on your path to wealth with that philosophy. Additionally when the markets turn you will lose it all. You would be farther ahead to put it in a safe and secure managed investment fund.

    Investors make millions and become rich by using OPM not their own. You must spread your cash around to achieve your goals. Paying off rental income properties is not the path to financial freedom it is a hoarders mentality.

    You can cut your path to success in half or less by understanding the true value of cash is not allowing it to die a slow painful death as equity. 

    You have the income and hopefully the credit to move forward now. 

    You can begin to hoard money after you reach your final goals not before. In the mean time be a investor not a hoarder of cash.

  • Investor · Salt Lake City, UT · Member since 2017 · 7 posts · 3 votes
    9y

    everyone these suggestions have been great! I signed up for a rich dad seminar for later this month. I will actively be GOING FOR IT right after the seminar. Knowledge is the best weapon we have right! thank you all for the inspiration. I'm learning there is so much more creativity that can be explored than traditional financing.

    Thank you again!

  • Investor · Salt Lake City, UT · Member since 2017 · 7 posts · 3 votes
    9y

    @Andrew Holmes I would love to see that system you are speaking of.

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