Walpole, NH · Member since 2018 · 66 posts · 34 votes
Hey, so I've recently discovered biggerpockets. My financial situation is pretty unusual. I have a good credit score, family members with some money, $200,000 in stocks, bonds, and crypto, and i've started saving between half and two thirds of my income (which i can do because i live with my mom for free). On the other hand, my income's extremely low ($25,000 a year maybe). If i was younger, the game plan would be pretty straight forward- go back to school, get a higher paying job, and then save and invest for financial freedom. However, I'm currently 35. Also, I'd like to meet a girl and start a family, and i'm running out of time. My question is, what would you do if you were in my situation? What do you think is a realistic goal given my limited income and age?
Rental Property Investor · San Ramon, CA · Member since 2017 · 350 posts · 611 votes
8y
I wanted to add, if you REALLY want to get into REI and given your situation, I would try to find a job in that world, such as contractors, brokers, real estate agent, loans and underwriting. Not saying you need to apply for a senior VP position, but start at the bottom in those fields so that it's related to your goals.
Walpole, NH · Member since 2018 · 66 posts · 34 votes
8y
I've only had my job for half a year and part of the income comes from tips. I could make more money by working more hours. I do have plenty of free time. Late 2017/ early 2018, I used my free time to focus on crypto. I made hundreds of thousands of dollars in crypto and then lost almost all of it when the crypto market crashed. At the time, it didn't seem worth it to work more hours in a low wage job when I had so much investment money at stake. The crash motivated me to educate myself about money. I bought books on personal finance and the stock market, and on a whim I bought one of Brandon Turner's books on rental property investing, which led me here to biggerpockets. Anyway, I could spend more time at work and it would increase my income. However, it would still be a pretty low income if i did.
Rental Property Investor · San Ramon, CA · Member since 2017 · 350 posts · 611 votes
8y
Generate multiple streams of income. Congrats on saving up so much and putting it in stocks, bonds and crypto but they don't generate monthly income.
Take those funds and buy rental properties that pays you checks every month. syndicate with family to buy more. Give them a cut. Work side jobs, and plow into more rental properties.
meeting a girl? sorry, can't help you with that :)
Rental Property Investor · San Ramon, CA · Member since 2017 · 350 posts · 611 votes
8y
I wanted to add, if you REALLY want to get into REI and given your situation, I would try to find a job in that world, such as contractors, brokers, real estate agent, loans and underwriting. Not saying you need to apply for a senior VP position, but start at the bottom in those fields so that it's related to your goals.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
8y
If I was in your shoes I’d Become a realtor , what have you got to lose . It would help you enormously get into real estate investing and add good income
Investor · Walpole, NH · Member since 2015 · 42 posts · 5 votes
8y
Hey @Sasha Fukuda I would suggest finding a two or three family building in the area, North Walpole has a few at the moment as does Keene. Do an owner occupant purchase with a low down payment FHA loan, and get your tenants to pay down the mortgage for you. If you buy right you will cash flow, and can shovel that money into your next purchase. I believe @Brandon Turner illustrated this technique in one of his books, and others on the site have elaborated on it in blogs.
You need to concentrate on improving your employment income. Until you can afford to live on your own and support yourself you can not afford to invest or get married and start a family.
Figure out where you are going with your life and get busy.
Rental Property Investor · Edison, NJ · Member since 2016 · 753 posts · 565 votes
8y
I would consider what you can do to have a better income with a more long-term future. What did you study in school before? Can that be applied to a potential job? If not what do u like to do and what could u foresee yourself doing long term?
It is good that you are able to save a lot but I think you are saving in the wrong vehicles. Mutual funds would be better than individual stocks. I am not a fan of crypto currency or bonds.
Do you have a social life so that you can meet women? Perhaps join an activity to meet like minded people to expand your social circle.
The most important thing though is to find a way to double your income.
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
8y
25k a year is probably barely enough to live on as a single individual let alone invest or support a family.
Your easiest way to invest is to earn more.
To earn say 25k a year likely requires around 300k invested money assuming you’re not doing major rehabs and/or experiencing a lot of appreciation.
Flipper/Rehabber · Los Angeles, CA · Member since 2009 · 1k+ posts · 732 votes
8y
You mentioned if you were younger you’d go back to school but you are still relatively young so shouldn’t rule it out if there is something you want to study and it will be able to significantly increase your income .
Getting a real estate related job could be a good idea. It doesn’t take long to get the license and the cost is relatively very low compared to a degree . Of course it’s all commission based but you should be able to make significantly more than now . I don’t know New Hampshire but I hear it’s a relatively high priced area of the country so commissions could be decent .
Good luck
Investor · Campton, NH · Member since 2010 · 285 posts · 143 votes
8y
Some great comments above - that was a good idea to ask the group! You could team up with a successful wholesaler from a different area and have them invest the time/money in marketing to get leads in your area, then you follow up on the incoming leads and split the assignment/whatever profit you make with the wholesaler. They can coach you on doing deals (as can BP, of course...) and it provides leads for you without using your money. The hard thing about wholesaling in NH is getting stuff cheap enough to fit a wholesaler's margin and this would get around that need to fund a robust marketing campaign ('course, there are quite a few free ways to get leads.....). Getting early success as a Realtor isn't all that easy and it sucks working for free for an extended period before you build up a decent amount of commission - if you go this route, maybe consider joining a team, so you're fed leads (but paid less) and have tons of support. Go luxury sooner, so your commissions are higher than the sub-$300k stuff that a lot of Realtors are more comfortable doing and if you land a big listing, you could always partner with another more successful luxury Realtor who would be happy to co-list and cover the cost of the luxury marketing if you're bringing the listing to the table...
Walpole, NH · Member since 2018 · 66 posts · 34 votes
8y
Thank you for all the replies everyone!
Amy Beth- Unfortunately, I don't think my degree will help me out. On the issue of my assets, I said i had stocks, bonds, and crypto. When it comes to stocks, I should have been more clear. I have some individual stocks, but I mostly buy Vanguard ETFs. I've sold most of my crypto (although a few of my micro cap coins have such low trade volume that they're hard to sell for market value so I've just decided to keep them and hope the market bounces back). I put the money I made from my crypto sales into short term bond funds (80k). My reasoning was that it would be a safe place to store it until i could get it into real estate.
Investor · Brunswick, OH · Member since 2016 · 18 posts · 4 votes
8y
@Sasha Fukuda Well your story was really amusing. can't really help with the girl problem but its seem you are serious about REI since its volatility is lower than paper trading or crypto. that being said if I were you and was looking into investing in this market. I would look at the market around my area and see how much real estate goes for my area. check if my online investing can cover the cost of buying and rehabbing a property after selling those investing deducting tax. And second see what professional are around such as: attorney's, contractors, certified public accountant, real estate agents, etc that will help me dealing with REI.
35? yeah your old. sorry if that a little harsh but that should not stop you in pursuing new goals. doesn't really matter about you age for investing as long your willing to learn.
Walpole, NH · Member since 2018 · 66 posts · 34 votes
4y
Wow, it's so weird to look back on this post i started years ago. Well, if anyone's curious for an update, I'm about to turn 39 this month. I'm still single, living with my mom, and working in the same industry (although i'm working more hours now and am probably closer to $45k/ year). I got out of crypto and bonds a long time ago. I currently have index funds/ etfs, individual stocks that my grandfather gave me a long time ago and which would incur taxes were i to sell them, and 3 local, small multi family investment properties that i manage myself. My net worth is currently more than triple what it was back then, which i guess is a testament to the power of time, consistency, and the happenstance of investing before the current run up in stock market and housing prices. I still have no idea how to meet women and i still question my decision to remain in my job field sometimes. It’s not high earning, and maybe not the greatest fit from a passion or personality perspective, but it’s not bad either. It’s easy, relatively entertaining, i like my coworkers, and the pay has improved. I’m kind of the living stereotype of someone that’s profoundly mediocre, but saves more than he earns and invests the difference over a period spanning years. I think that some people would look at that and find it impressive, while others would find me pathetic.
Investor · Melbourne, FL · Member since 2017 · 159 posts · 116 votes
4y
At 35 and living at home I would go back to school, work on a career and save for financial freedom. That should be the top priority. You can look for a girl at the same time.