Journal Entry: An Investors Journey from trader to REI #1

[Joseph Medina]

So, I have been on the fence about making a weekly "Journal" about my progress in REI. But, I have decided to do it, and if people don't like it, I think it will be interesting to read in a few years. (for myself)

But, for those of you who might want to read this, here is a little back story about me.

I grew up in the middle of nowhere, Tennessee, where we had dirt roads and outhouses (yes, they still exist). When it would rain hard, the school was canceled because the roads were washed out. My family was poor with poor spending habits with the traditional consumer mindset. The whole time I grew up, I was told, "grow up, go to college and get a good job" or "go to the military because employers value military experience." I was also a good quiet little church boy and followed the rules.

So, what happened? I dropped out of school and enlisted in the military.

Fast forward 4 years, I got out of the service and found out my wife was suffering from long days and lonely nights with a bad spending problem, and we decided to part ways. So, there I was, fresh out of the military while the whole country was still suffering from the Great Recession. I was expecting to walk on to any company to find decent work. After all, all employers value military service!

WRONG!!! (btw my first job was at the big blue home improvement store making 7.25/ hour) I went to my city's police department expecting to be welcomed with open arms! WRONG!!! I was told yes, we value your military experience. Yes, it says "XYZ" on the website, but in reality, we want our applicants to have a college degree now! Our applicant pool is too deep now! Okay fine! Now, remember I am a high school dropout. So I went through hell to just enroll. I enrolled and made straight A's, and fast forward 5 years and a BS degree later.

I am expecting what was promised. I went to the military since "employers value military experience," and I went to school because that's the only way to get a good job! WRONG AGAIN!!! I don't live in some poverty-stricken city. I live in Houston, tx, the 4th largest city in the US! So, what do I do?

I find a cute girl, and she tells me about a group of FOREX traders in the area and to check them out. So I do and instantly fell in love with it. The problem was I didn't have enough capital, so I went back to school to get a better job and trade more to make more. So, in comes the acceptance letter for the University of Houston's Psychology Ph.D. program, my ticket to financial freedom. I killed it up to the point of my Ph.D. stats class.

The stats class had a project... Compile the data of your choosing and run it through SPSS. DONE! I chose psychologist's salaries (the whole reason for me going back to school in the first place). I was shocked the median income for a Ph.D. psychologist here in HOU is 70k. At this point in time, I met my wife, and she told me, an ADN Nurse with 1-2 years of experience makes that much. WTFFFF?!?! an associate degreed individual making more than a doctorate level person absolutely not!! So, with the only classes left to take for my Ph.D. was conducting my official research to base my dissertation on and the dissertation defense, I drop out. :( (ABD Status) (ABD= All But Dissertation) 

Hmm, so what's the avenue to take? I had a trader friend of mine approach me and ask me to be a trader with his firm, and I turned him down as his company would take anywhere from 90-98% of the profits from my work. So, that's not gonna work. I decide i am going to be a Nurse then, because if you cannot beat 'em, join 'em! So i am currently enrolled in Nursing School! 

I go back through my old trading files of books and literature from other traders and found an E-Book of rich dad poor dad. "well, this book is too old to be relevant," so I closed the file and a few days later, my wife tells me about a radio show who had a guest who was a trader and how he talked about the book rich dad poor dad. Was this God showing me the path? I don't know, but I do know the book is old, so let's give it a quick read, and if I don't like it, I can stop reading the book!

I read the first chapter that night and was hooked! Now, as a Ph.D. and a well-disciplined trader, I know when I feel emotions rise, I need to slow down and look at whatever is getting me emotionally riled up from a different angle. So, I finish the book with a massive guard up. I loved the book because it described everything I went through, from struggling when I got out of the military to struggle to find gainful employment!

And the craziest thing was this book was written a long time before I experienced the problems I was experiencing. I research RK, and I personally conclude the Rich Dad Poor Dad story is fake. Still, the parable makes the material relatable, so who cares if the story is fake? The message is not.

So, being very wary of the Rich Dad Company, I bought a rich dad advisor book, "tax-free wealth." I read Tom's book, Ken Mcelory's book, and now my interest is peaked. I needed to read another author's viewpoint about REI that is not affiliated with the Rich Dad Company.

I hoped on amazon once I finished Ken Mcelorys ABCs of REI and found the BRRRR book by The David Greene. I noticed some of what he was saying was also said by the people of the Rich Dad Company.

Hmmm, maybe there is something here. I need more evidence lets watch a video... in walks, BiggerPockets Podcast preaching the EXACT same message as the Rich Dad Company, and the two are not affiliated. Same message from people on the podcasts. I am sold. I bought Brandon Turner's "the book on REI," the Book on REI with no and low money down, pre-ordered MF millionaire VOL 1 & 2. I started listening to every podcast I could find that somewhat applied to my situation. I went "PRO" here on PB and have done to close 100 deal analyses.

My wife, because she does so well professionally, is risk-averse, and I told her about a strategy that Bryce Stewart did and a few others. "hey, let's buy a house and live in it, like a normal couple. Let's fix it up like a normal couple, but instead of selling it, let's refinance the home and buy a second NEW home and rent out the first one and repeat the process" she liked the idea. Because she will buy a home she likes, and once she gets tired of it we "trade" it in and still make money from it.

So, the following is the first deal we are moving forward with:

https://www.biggerpockets.com/...

*This link comes directly from our calculators, based on information input by the member who posted.

PS. I am no longer quiet, I no longer follow the rules, I no longer comply. I follow my own road, because society has lied to me too many times and its time to carve my own way to the top!