All Forum Posts by: Raheem Jamaal

@Derrick Dill I'm not jumping to the defensive at all. If I came off that way I apologize, but if I even have the property for that long, by that time, I'll have plenty of money to do work like that. Once again, that's if I haven't sold it by then. 

I apologize for the title because it must be misleading or something because I have not mentioned one time Clayton's product. THIS HAS NOTHING TO DO WITH HIS PRODUCT. I COULD CARE LESS ABOUT HIS PRODUCT TO BE HONEST. What he teaches in that hour long video is how to make passive income through single family rentals. That's it. I think he said the word 'turnkey' once in that entire video. It has nothing to do with his product. It's a guide that teaches you step by step how to get from point A in investing in single family rentals to point B in investing in single family rentals and repeat. I personally have never seen anyone do this on YouTube as simplistic as he put it. So I'm sharing it. ONCE AGAIN, this has absolutely nothing to do with his service. 

@Derrick Dill First of all, why would I buy a house that needed a 15k roof replacement? That's obviously not the deal for me. You stick to YOUR OWN CRITERIA. I have mine. Do you have yours?

I appreciate the words of encouragement, @Will Pritchett, greatly. I just want to shoot for the stars and forget anybody that doubts me. I set a goal so I want to accomplish it. It's as simple as that.

I have nothing but the upmost respect for you experienced investors that have commented on my post and I wish you all the best, but nothing is going to stop me from achieving my goals. They are MY GOALS for a reason. All you have done is just added fuel to the fire, but I'll keep you all posted on my progress. (:

@Mathew Keehner I assure you it can be done. There are a number of ways I can finance a deal. I'm not going to explain myself cause I don't feel the need to, but for all I know I could have an uncle who happens to be a millionaire and would loan me the money in a heartbeat. There's always going to be people like you with limiting beliefs. Sad, but true and as for @Eddie T.

I respect your opinion, but this is highly doable. Whether I have to partner or find private money. I am absolutely determined to do this. There are thousands of investors out there that have retired early from surrounding themselves with smart people, doing good deals, and ALWAYS buy below market value. Of course it takes a lot of money and time, but theres a little thing called leverage and a calculator and when you know how to use leverage and a calculator right it's incredibly powerful. So I'm going to stick to my guns on this one and prove you wrong.

Cheers!

Link to my latest thread post.

What's going on BP Family?!

I'm so excited to share with you guys what I've discovered and the numbers I ran for my early retirement plan! I recently was introduced to a gentlemen's YouTube channel by a friend of mine. His name is Clayton Morris. Let me tell you this guy is no joke. He breaks down every aspect of creating passive income through buy and hold SFR and does it with such simplicity; no offense to him, but a 10 year old could understand it. I highly encourage you to check out that video because it could put your life into perspective as well.

Now, moving on to what I learned from Clayton. Clayton has this formula and idea called the 'Freedom Number'. What you do is you add up all your expenses for the month (you can do this by checking your bank account online obviously) and I mean ALL EXPENSES; including going out to eat or to the movies, then you add 10% to it just give you a little breathing room so you're not so constricted on your spending. So lets say all your expenses add up to $4,500 a month and you add the 10% for good luck. So 4,500 times .10; that equals an added $450. Which gives us a total of $4,950. Now just round that up to an even $5,000. $5,000 a month.

There it is, your Freedom Number! Oh, but it gets better! Now we're going to find out how many rental properties it's going to need in your portfolio to meet that goal of $5,000 a month. So what we're going to do is take the average rental price of $700 dollars a month. We want to be kind of conservative on this estimate so what Clayton does is he takes 40% out for repairs and vacancies. So 700 times .60 (the 40% taken out) equals $420. Alright, here is the moment of truth. We take the $5,000 and divide that by the $420 and we get 11.9. Round that up to 12 and that is the number of properties that you will need in your portfolio to reach $5,000 a month in cash flow! Amazing, right?!

So I ran my own scenario. Keep in mind, I don't have any expenses as of now. I don't even own a car and I have no credit history (I'm 24. Live at home with mom. Not afraid to admit it). What I've always wanted to do is just travel with my girlfriend and have money to spend while I'm traveling the world. So what I did is I made an Airbnb budget of $200 dollars a night or less for a one month vacation. That's $6,200 for one month plus I through on $5,000 for the plane tickets and anything else I might want to do or purchase while I'm on vacation. So $11,200 dollars MAX for a one month vacation.

I drew out a 10 year plan to retirement and here is what it looks like based on the Freedom Number method.

Starting at age 25

Retire by age 35

Acquiring 36 properties in 8 years

This would be 5 properties a year.

Which would be 40 properties by the end of year 8.

That would be $16,800 a month or $201,600 a year ( CONSERVATIVE ESTIMATE BASED ON THE FREEDOM NUMBER SHEET BY CLAYTON MORRIS)

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Break down for 1 year:

$2,100 a month or $25,200 a year.

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By year 2, TECHNICALLY, I could quit my day job as an HVAC Technician making $4,200 a month or $50,400 a year as full time real estate investor.

Hey, @Roger Poole! Just ran some numbers talked to a friend of mine that referred me to this video and this really put things into perspective for me! Been watching Clayton Morris' videos all night and he has me convinced that SFR may be the best strategy for me. I would like to retire by the time I'm 35, but technically I could retire in 3 years and just be a full time real estate investor.

I'm going to link my next thread post into this reply so you can see exactly what I did to calculate my retirement numbers or as Clayton Morris likes to call it the 'Freedom Number'. Also, yes, that will be my primary income stream until I pass away.