All Forum Posts by: Chris Armstrong

@Amir M.

Senior Development and Applications Chemist. 

I dont want to end up in this place in the same damn lab 20 yrs from now looking to some manager who doesnt know **** about chemistry to tell me how to do my job. Not my cup of tea. 

Slowly, I am replacing my income with rentals to leave this gig. 

This thread is very interesting. I am at the exact same point in my career of 7 years. I am (currently) a Senior Development Chemist making below 6 figures (60-70K). I have documented successful technical sales experience and good people skills etc, but I am pigeon holed in the technical group and will cap out my salary around $100K in 10 years from now if I am lucky and the bosses above are generous.....

I just got my real estate license and I am in a hot market. The potential for income over 100K is seriously real and most likely more attainable than the current position I am in now. I wrestle with the decision all the time because I have soo much more I could give to this job in terms of output, effort, results...but WHY to make my boss more money? HELL TO THE NO. I would rather take that same output/energy and focus it on something of my own. 

Perfect thread to read at lunch today :)  @Solomon Ganz keep us posted how your progress comes. 

Laminate Vinyl Plank that clicks together and is floating not glued down! I cannot say enough good things about it. Durability, cost, ease of installation, and the look of the finished product. @Dylan B.

If you are really worried take a very slow and cautious approach like "aim small miss small."

Try renting a room out in your house, that will generate a little money for you and you can begin to save come of yours for investments. Then start small again, and slowly build confidence...repeat..repeat...repeat and then one day after many small deals you look back and you're like damn I made some money and this isnt bad as I thought. @Joshua Johnson

Last thing 

Generally speaking YOU CANT GO BROKE IF YOU DON'T OWE ANYBODY MONEY..... think about it. 

@Ralph R.

Ralph, Again its perspective. What happens when you deploy all your equity and then markets shift. Unless you have a air tight deal then you're royally screwed and because you're leveraged you can multiply that screwed factor by how many deals you have that are not good. I own 4 properties. 1 free and clear and it cash flows $3K per month 90% mine (taxes and insurance etc). Soon I will have the other 3 paid off (within 4 years) and I will cash flow over $12K per month and my job which is pretty damn good. So at that point I become dangerous and can trade up the properties into much much larger options (large multi family). Im trying to create generational wealth so I am looking at it another way. I really dont care how many people say my strategy is "stupid" or whatever but lets see who is in a better position in 5 years.....

Also, how are the storage units working out for you? I see them everywhere...is it turning out to be a good investment? I dont know much about them but I assume you would treat it like many small apartments. 

@Anthony Gayden

Again its all perspective. If you essentially have no bill you are financially free...am I wrong? Hence winning the game. 

Notice I didnt say anything about buying a Ferrari or a mansion I said financially free. 

How are you trapped upon paying a house off? You can just rent it out.... If you are trapped its because you choose to be. 

Im not saying you're wrong and you cannot say I am wrong because we hold different perspectives and choose to put our money in investments in different fashions.  

@Pablo Mendez dont refinance your money out, think about the amount of money you now do not have to pay to the bank once your home is paid off. Invest that money. 

I say this time and time again, ONCE YOUR PRIMARY HOME IS PAID FOR COMPLETELY, YOU HAVE WON THE GAME.

that is a huge expense you no longer have to fork out. Ex, imagine a $1500/month mortgage payment. If you didnt have to pay that then you could bank probably 1300 of that 1500 ( cause you still have taxes and insurance) but you can stack a ton of cash that way. Then take that theory and apply it to the rest of your life like cars and credit cards etc.... now your building momentum

. 

Its 100% perspective and risk tolerance that answers the question of what to do. I dont see the problem with paying down the mortgage because I look at things differently. Yes technically you could put cash flow into another option yielding more than 3-4%, but once paid off all the cash flow is yours. Yes i am sure people will say that your CoC return is low...I dont care. I collect all rent money now and forever and then I can use that cash flow to buy more. PErsonally I dont like to be spread thin either. BUt again this is all up to you and your perspective.

There are people who say you become a target once you have a paid off property, but how would someone know unless you told them it was paid off....i dont buy it. 

I do both. @Account Closed

401K

My company matches 100% up to a 6% contribution, and then gives an additional 3%. I get 15% for really only coming out of pocket for 6%...thats pretty damn good for now. I put those funds into accounts that guarantee a small return of 8% per year plus some growth from the funds based on market conditions.  This will build for a while until I decide to stop working and then plow it into notes or something through a SDIRA.

Real Estate

I own 4 properties that are used for short term rentals right now and I re invest EVERY dollar back into mortgage pay down. In 5 years I will own everything 100% outright and then I will cash flow for a while. I will 1031 exchange into multifamily units after that point. 

What I am saying is both are 100% feasible. Having only one does expose you to more risk for not having enough to retire on later in life.  Its the same concept as the benefit of investing in multifamily over single family...spreading the risk.. 

There is a really damn good BP podcast with a guy who talks about universal indexed life insurance and things I believe it was episode 017 with Jeff Brown.