All Forum Posts by: Shawn Coverdell

Sorry, I know what they say, I read most of the books. Fear is what holds people back. Sorry guys. Guess I am different. Praise god for that. This is my story. So 5 years ago I had  one of those jobs all kids dream about obtaining. You know the kind of job where you go to school and sit through all those classes that teach you how you evolved from a chimpanzee and quantum physics and all that stuff. One of those jobs. Basically, I worked in a cube city. I had a security card with my mug shot on the front and it would open doors so I did not have to. I had a cubicle equipped it 2 monitors, state of the art equipment. My desk went up and down with the touch of a button. I made a handsome 6 figure income. I could come and go as I pleased. and I had just been released to work at home for the majority of my days. I could work out of my house off the Columbia river with a panoramic view of the mountains. Had it made right? 

Well, here is the part that you will need to be at least 40 years old to understand...…

I felt guilty because I  was not happy. I was not satisfied. Not in the least!!!! and I felt bad for not being satisfied with what most people want. 

My wife always tells this story;  When my youngest son would take too long in the bath tub, she would knock on the door and tell him, " you better get out or you will turn into a prune."  Shortly after he would always get out.  This went on for years. One day he asked her, "Mom, will I actually turn into a prune". She was shocked that he believed this myth and explained to him that it was not true, that she was just teasing him to get him out of the tub. 

I believe this story was not meant for our son, It was meant for me!  

You see. I was programed to fit in. I guess to be a 99%er. I had been sold on the usual retirement plan. You click on a few buttons and they take out a certain percentage of your pay. It goes into a 401K plan and uses "dollar cost averaging" and "diversification" then when you reach a certain age, when the government said it was OK do so. (old) you could live off that money until you die. they said retirement is a "3 legged stool", meaning social security, pensions, and an annuity from your 401K winnings. 

My entire office was absolutely convinced that the path to SUCCESS was to  work until you reached MRA (Minimum Retirement Age) 

Fear Set me Free. I kept having nightmares related to the old movie "Logan's Run". Where once you turned a certain age you entered the carousel where you were cut to shreds by a fan. Logan was the  odd character who decided running was wiser than joining the carousel 

So I Booked us a cruise. It sucked. I mean I tried to be a boring person but wow, I just could not do it. Both of us could not do it. How lame does it get right? I just could not bring myself to enjoy 7 dollar beers and Ports loaded with bars and gift shops. When I returned, I googled financial freedom, early retirement, get out of jail now. and stumbled onto Bigger Pockets.

I could not buy realistate fast enough. I walked out of my cubicle last December at the age of 45 years old. five years after discovering bigger pockets . NO REGRETS! wow. what a move. I feel like I escaped the Mormon cult or something. I feel free.

I keep looking in the mirror and though I am ageing I am by no means a dried up prune. I got out of the bath water just in time. 

I feel VERY rich, and Fear was my initial motivation. 

Homes in the Hood.

I am so glad I paid the tax and liquidated my Slave job TSP (government version of 401K with a happy name). I am so happy I walked off my W-2 Star bucks drinking cubicle back stabbing job. If I had not I would be so depressed right now. I would have to decide between "retiring" (ramen noodle style) being pushed up to mid 70's, or taking the purple pill and calling it a good game.

Now I am prepared for this move. Was warned 2 weeks ago, and even now am buying the fear. Come on Snake Eyes!  show me the clearance rack. 

Homes in the hood

Here is how it is done. "Hi, I am …….. I am here to catch up on some maintenance items...."   I am just the maintenance man. I work for owner.", tell them you will direct any questions they have to the owner and will get back to them with the answers. "Oh, I am sorry. I thought you were given notice that I was coming by"...….. I will leave the rest to your imagination. 

That's how you spot that black lab out back. That's how you find out about cousin Jimbob who lost his job and is staying in the spare bedroom. 

This is how it is done. It's about financial survival. We invest to get ahead, not to clean up after dirt bags. If they stink. get them out!

Homes in the Hood

Yea, a realtor wants commissions. So be the guy they want to work with. Be the guy that is the easy commission. When I call my broker, he will usually drop what he is doing and show up ASAP! Not because I am a VIP or anything, but because I make FAST decisions. When I call I know what I will pay, what it is worth after I polish it up. I know what it will cost to get it polished up. I know what the rent I will get for it. All he does is get me in. NOW. He gets my offer in NOW. 

and after a dozen or so commissions from my purchases he will call me when he finds that perfect pocket deal (off market). 

He likes to make commissions. It's whey he is a realtor. Call me, write it up and get paid. 

Homes in the Hood.

well, I am not sure how flawed my logic is on this one, but it took me a few days to decide to wipe out my 401K and pay the taxes penalties etc. Put it into more houses. Took me about an hour to figure out what forms were needed to withdrawal my 401K. and to fill out those forms. another hour to get to the credit union to notarized them.

Made up the losses right quick! not sure of the time. I actually enjoy realistate deals so I don't really count the hours. It does take a lot of time. but man, how many hours are all those people spending back at my old cube city. Some of them are still sitting in those silly things, staring into 2 screens going into there 70's!  Still paying into there 401K!!!

Properties might be sold at steep discounts? Race you to the clearance rack!!!

They hate you. I really believe that. They hate you because you escaped. You broke the code. It was easy, and that makes them feel even dumber. Everyone I know and worked with wanted me to rethink it and stop buying homes. In less than 5 years. I walked out of my cubicle. Left all my stuff. just stopped coming in. Gave my 6 figure job to the next beggar in line. 

I feel dumb for not doing it sooner. My wife and I discuss regularly how shockingly easy it is to make money (now that we have broken the code) 

we decided to take time out and go on a cruise then bought camper and took road trips all over. we were like, you know, we should go back home and buy some more houses. It's fun. I'm working some deals right now and I am having fun. This is not work to me. I feel very Blessed!!!

work slave job with W-2 documentation for 2 years to gain favor with banks. Freddy/Fannie conventional loans want to see those 2 years. Keep same job no matter how crappy. It's only a stepping stone to break free. 

While you are slaving, eat ramen, room mate up or live in trailer, avoid Starbucks and tuck every dollar you can squeeze out into a bank account. need 20% down and money for materials. so for 80K home (trashed), you will want 35K banked to get started, just a rough idea. 

Go on My Fico and learn the credit hacks. Do them!!! or send me message and I can give you some great starters to push up that score. Might as well while slaving on w-2 for those 2 years.

Read all the usual books. But to be honest with you, If you do not learn some construction skills, your progress will be a lot slower! as contractors will be raking in the majority of your profits. 

Get a pro account on this site so you can access the PRO only blogs and avoid all the goofy stuff that can confuse you sometimes. 

Take NO advice from salesmen such as realtors/brokers. Not because they are wrong, but because they are salesmen.

Take NO advice from anyone who does not own more realistate than you do. Why chance it.

Just keep reading, saving, researching your target area. Know the rents! Know the values. 

Then, get pre approved. 

buy property

buy another and another until you have enough equity to refinance one for large amount of cash.

take cash and start BRRRRR process (read up all you can on BRRRRR)

Give boss notice. (sorry about all the school time you invested)

Your free. Done. 

It comes down to understanding how money works. If you are what some call the "We are the 99%" like the T- shirts and bumper stickers. Or the "Feel the Burn" stickers you see proudly displayed on many Portland bumpers, you resent people who buy rentals instead of Red Bulls. Not only do you resent them, you want others to know you are a victim of such investors. 

If you have more than a few doors you have heard this one before, "I can't work, I am retired on disability. but if you guys ever need anyone to help out with painting, cleaning or anything like that let me know."

once you drive off, they curse your existence. 

If you want to befriend them you have to become one of them. drink red bulls, rent a big screen from Arron's, buy a new glass pipe from the corner store and suck hard. 

Shawn Coverdell

Homes in the Hood

You would not send your kids to a public school and expect that the school is taking care of all there education needs. Many did just that and we now have an army of Millennials that firmly believe there ancestors are Chimpanzees and that man is evolving upward. 

For the same disastrous reasons, you do not assume that your livelihood is being managed by your PM. You will always be involved to some extent but the idea is that it is minimal once you have your PM trained in your expectations. For us this is a continual process as people change positions within the PM Company and things be forgotten.

well, got to go. calling our PM to let them know I will be up in the Rockies a week or 2.

Good luck to you all who are just getting started. May you be content with your cash flow.

Homes in the Hood,