Freedom!! Freedom !! (2) But!! But! But!

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Freedom!! Freedom !! (2) But!! But! But!

Daniel Peavey
Atlanta, GA 路 Member since 2014 路 221 posts 路 109 votes

hi y'all

I'm free!!! My passive income from real estate more than meets my monthly expenses!!!

What a unreal feeling!!

Leaving my well paying job was final hurdle for the equation of new rich

Automatic income , time, and mobility are all here!!

But!  But!! But!!  I am still struggling with a old "E" mindset !!

We are so conditioned to work, for works sake.  The security of a job and defined income, is like a addiction that Needs to be broken

I'm free!!!!!! 

Not turning back!!!

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Aaron Mazzrillo
Investor 路 Riverside, CA 路 Member since 2011 路 2k+ posts 路 3k+ votes
10y
Originally posted by @Daniel Peavey:

I bought 7 houses in 5 years, for average 40k

I took no profit

Reinvested and paid off properties

I still owe some mortgage but have enough cash to cover

 It is amazing how little most people really need to break out of the rat race, but unfortunately, they get sucked up into wholesaling and flipping meanwhile totally losing site of why they got into real estate in the first place. They basically leave one job for another that might have bigger checks, but also comes with waaaay more stress.

A repeat consulting client of mine sat down with me and it was the same story I've heard before; 

Client: I made over $100K flipping houses, but I still feel broke! 

Me: Taxes and overhead are killing you huh?

Client: I pay so much in taxes and all my first quarter profits will go towards overhead.

Me: How many rentals you own?

Client: None...

Me: Time to get yourself some rentals.

When I got into real estate, the first thing I did before I bought a house was to analyze a year's worth of expenses to see what it would take to set me free. $4,400/month was all I needed. I've since doubled that a few times just for insurance, but once the primary residence is paid off, there isn't much else left to pay for.

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker 路 Canton, GA 路 Member since 2010 路 15k+ posts 路 11k+ votes
    10y

    I am not counting on anything for social security or the government as they can't balance 10 cents much less a trillion dollar budget.

    What's left of that program ( if anything ) will be a shell by that age for me and they will have likely raised the numbers into the 70's for retirement.

    Good thing I love being my own boss as a commercial real estate principal broker and investor. When I get into 60's or 70's I might scale back some but would still do what I love.

    Mid 60's to 70's is 25 to 30 years down the line for me so not telling what the government looks like then................... : )

    What can affect an investor is what they make with their business or job. If you make 50k a year then you might have very little to get started. If your job throws off 300k, 500k etc. a year then you can snowball much faster.

    Once you hit so many properties lenders will look at track record and your global cash flow so having a J-O-B becomes less of an issue as liquidity and net worth is built up.

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  • Daniel Peavey
    OP
    Atlanta, GA 路 Member since 2014 路 221 posts 路 109 votes
    10y

    Louis,

    That's exactly what I did

    I left great paying job

    Told them to take job and shove it

    Left on my own terms

    Most frightening and liberating thing I've ever done

    0Reply
  • Daniel Peavey
    OP
    Atlanta, GA 路 Member since 2014 路 221 posts 路 109 votes
    10y

    Joel

    Great points.  I'm sure you read 4 hour work week , if not you need to

    However, your generstion needs to learn everything is not always a passion

    I have much to share on this

    Probably will write a book

    I'm really a writer, academic by trade

    That forced myself to work against my passion

    I became a electrician heating and air

    I can do Sheetrock flooring tiling

    Do trim work 

    I forced myself to learn intrinsic value so I would not have to pay contractors and eat profits that are so vital to retain in early stages

    Most people are like me

    They are just ordinary

    They can't create corporations and syndications of raising capital

    Your generation has many good ideas

    But the falsity of always following passion

    And not understanding of developing left hand in basketball is self defeating and propels disallusionment and neglects to look at one self long and hard in mirror 

    0Reply
  • Corey Smith
    Real Estate Investor 路 Auburn, WA 路 Member since 2016 路 83 posts 路 22 votes
    10y

    That's awesome, Daniel! Like others have said, that is an inspiration to a lot of us. 

    0Reply
  • Alex R.
    Investor 路 Miami, FL 路 Member since 2016 路 127 posts 路 25 votes
    10y

    Congratulations Daniel, Although Im sure you will keep yourself busy with more real estate investments. Cant just stop at 7 

    0Reply
  • Daniel Peavey
    OP
    Atlanta, GA 路 Member since 2014 路 221 posts 路 109 votes
    10y

    thanks Corey!!  True Alex, lol.  Got to find the deals!!!

    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor 路 Sioux Falls, SD 路 Member since 2015 路 9k+ posts 路 18k+ votes
    10y

    @Daniel Peavey I read your comments about @Joel Owens mentioning his generation needs to learn not everything is a passion. I peg Joel at around 40 years old based on him being 30 years from 70. I am similar age and I believe we would be considered generation X. I found it interesting you made that observation about his (my) generation and I am just curious what you mean? Gen X are known for being independent workers, entrepreneurs and hard working. Not known as the "participation trophy" generation that lives with our parents. Maybe we do follow our passion but not in a flaky way - we build careers and businesses. I am not trying to turn this into a debate about generations, but I am interested in what advice you are trying to give. 

    By the way, I must be the only person in the world that read the four hour work week and was underwhelmed. I kept waiting for it to amaze me and never felt it. 

    Congratulations on your freedom!

    0Reply
  • Daniel Peavey
    OP
    Atlanta, GA 路 Member since 2014 路 221 posts 路 109 votes
    10y

    Joe,

    No problem. Discussing ideas are valuable.

    Children are raised today to follow passion, which is cool. My passion was writing and academics

    The very smart move I made was to leave my passion.  I developed skills, I.e. Went to electrical apprenticeship, worked very hard, against natural inclinations because that's what market demanded

    Ironically, I will now, after many years of wilderness training, begin to write.

    I am just ordinary guy that made it

    I understand derivatives, options, syndicates  and if my old man gave me that mindset at 18, I would have created corporation and raised capital and been another trump

    It didn't happen.  My children are second generation, my son is 32 and has hearing and air company, so they really benefit

    When I bought my first house, I worked 9 months in evenings and weekends

    My passion is not Sheetrock

    But learning to do it saved thousands

    As common guys, we make money working overtime.  Many young like their free time to much

    We are a apprentice, American idle celebrity culture and must be careful not just listening to success stories without knowing true cost

    Thank you for compliment 馃槉

    0Reply
  • Carin Kveton
    Investor 路 Lake Villa, IL 路 Member since 2013 路 29 posts 路 9 votes
    10y

    Congrats! It gives me hope that we can do the same soon!

    0Reply
  • Ashley Schroeder
    De Pere, WI 路 Member since 2016 路 83 posts 路 39 votes
    10y

    Congratulations!  What are your goals over the next 5-10 years?  Anything that you want to be doing that you haven't had a chance to?  Start on your retirement early?  Or work another year or two to fund some major splurge of a dream?  Maybe drop down to part-time... give yourself some extra time to figure out a new hobby or your next move as well as allow some transition out of the workforce and work mindset.  Whatever you choose Godspeed!  

    0Reply
  • Daniel Peavey
    OP
    Atlanta, GA 路 Member since 2014 路 221 posts 路 109 votes
    10y

    I'm going to hire you as transitions coach 馃槉

    0Reply
  • Daniel Peavey
    OP
    Atlanta, GA 路 Member since 2014 路 221 posts 路 109 votes
    10y

    Ashley, I'm done working for anyone

    My real estate income more than meets my monthly income

    I will always do real estate 

    Buy and hold, wholesale, flip, auctions Etc

    I love to read and dream

    I've already transitioned out of work force

    0Reply
  • Jean Pierre
    Hollywood, FL 路 Member since 2015 路 65 posts 路 11 votes
    10y
    Congratulations Daniel you have reached the goal for us all. You caught the dragon. You have a full life ahead of you that you can enjoy to the fullest
    0Reply
  • Daniel Peavey
    OP
    Atlanta, GA 路 Member since 2014 路 221 posts 路 109 votes
    10y

    thanks Jean Pierre

    The freedom is unreal!!

    0Reply
  • Casey P.
    Real Estate Broker 路 Loganville, GA 路 Member since 2014 路 1 post 路 0 votes
    10y

    Congrats Daniel!  I still owe you a return phone call my friend-Casey

    0Reply
  • Daniel Peavey
    OP
    Atlanta, GA 路 Member since 2014 路 221 posts 路 109 votes
    10y

    anytime Casey!

    Doing any deals?

    0Reply
  • Nir Babajani
    Tel Aviv, Israel 路 Member since 2014 路 53 posts 路 10 votes
    10y

    Congrats, it's always uplifting to see real life success stories.

    i can share that just having this first taste of income not from your own labor is indeed liberating.

    i would like to throw in the mix that "retirement" is not necessarily meant to spend all your day doing nothing. it's a great time to develop as a human being and as a person. learn new skills - painting, playing a music instrument, surfing whatever...

    the real goal is not  to drop out of life, it's to increase your level in life.

    hope this helps throwing some ideas into the new found freedom

    0Reply
  • Daniel Peavey
    OP
    Atlanta, GA 路 Member since 2014 路 221 posts 路 109 votes
    10y

    awesome advice

    Thank you Nir

    How cool your in Israel!!

    When you say painting Nir, that does not mean painting my rentals does it ???

    馃槀馃槀

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