@Igor Avratiner . This is a very easy question to answer. I became friends with a very large investor into multi properties over many different states. As we became closer and closer he would Scoff at the notion that I was flipping so much and it wasn’t creating cash flow. He found a deal in my hometown next to Oregon State University and it was listed for 5.5 million in the year 2011. He let me buy in for 15% cash down payment and told me we would make $1 million the day we signed. We had an offer last year of 10.5 million that was unsolicited and we passed. I’ve now got all my money back out of it due to refinancing and I make $2500-$4000 a month on this property￼￼. This investor friend now lives in Boise Idaho and makes about $45,000 a month positive cash flow from his various multiunit buildings all over
@Jeshua Patrick i’m sorry if I was unclear about the stock portfolio. Take a look at the ticker symbol MO and the history for the last 20 years plus. They are huge Dividend￼player and I have several like this which are stable companies. If the stock market crashes looking at the historical data they still pay out nice dividends so I’m not really worried if my stock values drop. But if you also look at stocks in 100 year. And bought on the worst day of every month of every year you will find very solid returns. I realize a bigger pockets about real estate and not the stock market but I like the diversification and wouldn’t consider cashing in or altering my portfolio￼￼￼. Lastly if you take my account and use an interest rate of 5.7 and take my age out to 93 my account will be worth over $15 million￼
@Todd Powell not too bad. I wasn’t trying to imply that stocks are inherently bad either and, being younger, my tolerance for risk and need for a higher return is much greater I’m sure. I recently moved most of my 401k assets into a Self-Directed 401k to give myself more freedom to invest in RE but also have a brokerage account to help me keep those $$ earning even when they aren’t tied up in a RE deal. I definitely have much to learn on the stock side as well. You have certainly given me much to think about with your post and replies. Best of luck to you and go spend time with that grand-baby sooner than later.
Congrats Todd, your story is an inspiration!
@Todd Powell thank you for sharing! Your story will motivate many of us to keep moving forward.
@Andrew Sime . I have been a sales manager running dealerships since I was 27 years old. As a manager, I had some flexibility, not to mention, I have not done the work. The key was always making the right BUY. Of course, I found an amazing one man band contractor I have worked with since 2003 or so. I also have many contractor specific people, and do lots of business merely via text now. For example, when I need a plumber, I text my guy and have tenant hide a key or arrange when they are home. I have dialed is systems pretty well. I probably could write a book all the various ways I have found properties and closed deals to be honest. I am pretty good at evaluating a property, and estimating the rehab costs. One thing that is always uncertain is the exact price I can sell it for so I always figure it conservatively and swing for the fences when I sell. Typically, I do better than my projections, but sometimes I fall short. I have never had a job I worked by the hour, but a commission guy with more flexibility than most. You asked a very good question BTW
@Derek Mendes . I wanted to help others and also seek others input. Cutting off the golden W2 handcuffs can make one nervous, and certainty change is hard.
Maybe I read wrong but 13,000 to 14,000 a month is not enough money?
awesome story, love the family journey
@Todd Powell Great story! One I am looking to create. I will be eligible to retire from Federal service in 10 years and want to do what you did and I know I can be done.
Hey Todd, using good debt to buy more RE & rehab properties is good concept. However; earning $3,000 on your $800,000 comes to a measly .00375 return on your nest egg. One particular company I have considered in my portfolio is Enlink Midstream, ENLC. With an annual return of 16.74%, I think you could retire with this ROI. Maybe your not so aggressive investor, or maybe more so. If your next egg is within a Roth IRA, all interest earned would be tax FREE. Max out your SEP IRA or SIMPLE IRA & watch it snowball!! Because your over 50, in an Individual IRA OR ROTH IRA, you can now contribute $7,000/ year. The two aforementioned IRA'S you can contribute more, get with your CPA or Tax Advisor. Good Investing!
Hope this helps,
Very inspiring, thank you for sharing your story!!
Great story thanks for sharing!
Wow, thank you for this post. It’s exactly what I needed. I had to take a long break from both my career and investing and your story is inspirational. Amazing what you did in 4 years!
Thanks for sharing your story, it hit home. I’ve been sitting on the sidelines for about 6 years out of fear of failure. Like you, “retirement” is coming up fast and furious, I’m 56, and share many of your concerns. Health insurance, financial freedom number, new grandchild, etc.
I'm looking at using our HELOC to purchase our first SFR property in another state where it's more affordable.
Using the HELOC is what's held me back, but you've inspired me.
Any feedback is greatly appreciated. All the best.
@Sazini Nzula thank you !
@Marvin Lusky . Go for it ! Time is your greatest asset. If you make a reasonable buy, and or the numbers work, you will be fine! RE has been good to me, but it starts with ACTION. Too many people read books or go to seminars and never do anything. You have got this !
@Michael Pierson . Did you read the entire thread that follows, as that may help. My W2 is more than that, free demo and gas allowance, and thinking of making the leap. Health ins is also a factor and fear of leaving my solid career of 31 years. I get some can live on $5000 a month and won the lottery.
@Susy Santos . Thank you Susy! Hope RE is good to to.
@Yves N Aubry when you talk of “return on your nestegg” are you considering that this is growing at what rate in appreciation? I do not plan on touching principal, but rather live merely on the interest from dividends. My FA said if we use a conservative interest rate of 5.7% in the market my account would be worth over $15,000,000 by 93 years old. Yes, thats old, but we use a below market average rate of return.
Sounds like this was a great investment, purchased at the right time and for the right price!
Thanks for sharing!
"I like to say I am BLESSED." - love it!
Can you add some more info about the Crowdstreet Opportunity Zone? I live outside of Atlanta and didn't know this existed or even what it is.
Congrats on the family first and the investments second!
@Tim Coffey my son works for CrowdStreet and gave me insight information on this deal it was one of only two that Motley fool had recommended as they vetted the deal in Atlanta Georgia I can look up the address when I get to work and shirt with you this very experience company that has it been doing this for decades did one one block away successfully so it made this very enticing. The returns were very excellent and this raise $25 million in the first hour it was available to accredited investors. It was a long line of people that wanted in this deal. I will send you the address again later on today￼￼￼
@Todd Powell I'm in Albany, Ga. Very much interested in how you found your four plex and what are the numbers on it?
@Jonathan Soto . FOE Family Over Everything! For sure
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