The Numbers - How Passive Investing Enabled Me to Quit

[Holly Williams]

The response to my post last week about quitting my job has been overwhelming.  "How did you do it?" is the question that everyone is asking me, so I thought that I would just answer it here.  It started with writing a check.  Taking action.  Here is how the rest of the process works for me.

Here are two deals that have been full cycle, and how they ended up. (I have others that we are holding longer, bought later, etc.)

In round numbers, this is why KEEP MORE is my motto:
2016 - took $140K out of the stock market and invested in two passive multifamily deals.  Received monthly income of around $1,000 for the next two years, of which ALL TAXES were deferred.

Roughly two years and change later we liquidated them around the same time. I walked away with an additional $37,000 in my pocket.  Total cash = $60,000 OR $30,000 in annual income. ALL TAX DEFERRED.

My principal has now grown to around $170,000. I roll it into another deal and now my monthly income should be around $1300 - $1500 monthly - TAX DEFERRED.

$140K investment - $30K annual tax free income – $30K added to principal. Rinse and repeat.

Over the last 5 years, I've slowly moved some of my savings out of the stock market and into passive multifamily deals. Now I have enough cash flow to live on.  

Mileage varies, but it sure beats dealing with plumbers, and mortgages, and bills, and tenants....on and on. Best of all, I've LEARNED this, and now I get to share the wealth with others who are sick and tired of working like a dog and paying ridiculous taxes.

There are so many great people on Biggerpockets that know this too, and they've changed my life by sharing these opportunities with people like me.  It's not too good to be true.  It's just that your financial advisor won't tell you, your 401K custodian won't tell you, and the very rich keep it largely to themselves.

And that's my truth in a nutshell, and I am grateful beyond words.

[Yonah Weiss]

Originally posted by @Gerhard Listander:

I read your other post and it was definitely inspiring. I've turned my investing strategy towards the syndication route for some real passive income. My only problem is I'm currently a non-accredited investor and can't seem to find anything other than online crowd funding sites that use a private REIT fund for investing. I was wondering are you an accredited investor or did you happen to find a really good non website form of sponsor/syndication? Thanks for all the info.

Not being an accredited investor will not stop you from investing in many syndicated deals. But make sure you speak to the sponsors and a lawyer, to know which ones. A great way to start is reaching out to syndicators, and meeting them, and developing a relationship before investing in their deals, that may allow you to bypass the accredited requirement in some deals. There are many here on BP...and the keywords have been activated, so you'll probably see them chime in shortly :)