All Forum Posts by: Account Closed

This is purely my opinion, but sell the 29k car and get one that costs no more than 15k. 

You said you have 25k in savings. That $1500 debt should be paid off immediately. 

Best of luck. 

I agree with Andrew. You already have some investments, which means you've taken action. 

Personally, I'd go to grad school, then go WHEREVER you can get the highest paying salary or become an entrepreneur. If you work in the US, house-hack (live in multi family home) with FHA loan immediately after school.

Getting your income as high as possible will give you the opportunity to invest anywhere in the world. 

Good luck. 

Leverage can let you buy 4-5x the number of properties you could buy if you were paying for them fully in cash. 

I'd recommend house-hacking in a duplex, triplex, or fourplex: live in one unit & rent out the others while living rent-free, hopefully with positive cash-flow. 

For example, if the mortgage is initially 100k and it has been paid down to 80k, you can get a home equity loan/line of credit on the amount that the principal of the loan has been paid down by (20k). 

This is paid down due to your monthly payment being split between paying down the principal and interest. 

If house-hacking, just rent out the property after you leave. Also, you can use equity towards future purchases. 

I think you're really overthinking this. It's much simpler than you're making it sound. 

Good luck!

Hello everyone. Let me give an example to explain what my question is. Buy a property valued at 100k, 20k down payment, 80k loan. For simplicity, say the loan is payed down by 3k in year one. 

Can I immediately take out an equity loan/HELOC against the 20k equity that I have in the property, or could I only loan against the amount that the loan has been reduced by after making payments (ex. 3k loan at end of year one)?

Thanks!

Understand that getting about a 10% return on your investment is what you can expect from most real estate investments, maybe 12-15% if you find a screaming good deal. 

With this in mind, 100k should easily provide 10k in yearly income. With this math, 2 million in cash towards RE investments should get you about 200k a year, roughly 20k a month. 

It can be done, but it takes most people a long time to get their passive income that high. 

Since you have some serious cash on hand now, I'd suggest using it to fund a commercial multi-family deal that you can buy under market value. Partner up with other dentists, doctors, lawyers, accountants, etc. if you can in order to purchase a larger deal. 

By investing in a solid deal, your income should increase year over year due to slowly increasing rents on each unit and eventually paying off the loan on the property. 

Good luck!

Read 4-Hour Work Week by Tim Ferriss. Make your money by hiring other dentists to replace your existing practice so that you can still receive the profit left over after everyone's salaries have been paid. 

If you have no REI experience, I'd suggest starting out with a turnkey provider or finding investors who need funding for down payments and split the profits with them.

Keep reading REI books, listening to BiggerPockets' podcasts and asking questions.

View working nights and weekends as a gift - you're free during the day to go take care of deals. If you don't like your job, get a job at a bank, property management, RE lawyer's office, etc. How much do you currently have in savings? How much are you adding to your savings each month?