A Punch to the Gut 👊

Investor Mindset
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A Punch to the Gut 👊

Blake H.
Investor · Santa Barbara, CA · Member since 2021 · 76 posts · 67 votes

Just received news that I am not permitted by the city to purchase another property due to the affordable housing covenant im contracted under. Not the news I was hoping for and this will severely impact the financing I will be able to get to invest in real estate.. Demoralizing to say the least, but I knew this was a possibility and must move forward.

plan B, C, D, etc

B: Sell current house and get 70k to put towards the 300k student loan debt that has had me stuck in month to month living for the past 10 years. Find a new place to live with no cash available

C: Stay put, see what financing my wife can get and we invest in her name (She makes 30k/yr)

D: Form LLC with my investment group, using my wifes name because I'm also not permitted to be in a corporation, see what we can invest in.

E. Find a partner willing to team up with someone with skills and determination but no cash/financing

Other plans/thoughts?

Any pick me ups appreciated 🙂

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
5y

Plan B.

Let's be realistic. You have $300,000 in debt that has held you down for ten years. I'm assuming your wife has been around for most of those ten years and she's still only making $30,000 a year?

You should not be investing, period. You're only fooling yourself into thinking you can build wealth when you can't even get out from under the debt you incurred ten years ago. You shouldn't buy a primary home. You should be living cheap, riding a bike, eating beans and rice, working overtime or a second job, selling your plasma, and doing everything you can to pay off that debt that's holding you down. The borrower is slave to the lender.

Read Financial Peace University and attack this like your life depends on it.

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  • E.S. Burrell
    Rental Property Investor · MI · Member since 2019 · 192 posts · 205 votes
    5y

    Follow @Nathan G. advice. He just saved your life. I’m waiting for your next post to say…” I’m debt freeeeeee”. I’m rooting for you.

    1Reply
  • Berenger Greer
    Property Manager · Atlanta, GA · Member since 2020 · 75 posts · 38 votes
    5y

    @Blake Henderson

    Forget about investing for now. You gotta build your roots.

    We all want it tomorrow, we know getting rich quick isn’t true.

    Get off BP, find a financial advisor/just really focus on setting up a budget and getting through this.

    Live like no one else wants to now to live like no one else can later. It takes sacrifice. We’ve all sacrificed something to get to where we are.

    1Reply
  • Blake H.
    OP
    Investor · Santa Barbara, CA · Member since 2021 · 76 posts · 67 votes
    5y

    @Jerry W. Thanks for the advice! Unfortunately I would have to move if I were to take another nursing job elsewhere, my purchase agreement states O must stay FT with my current employer to live in my current house. It also says I'm not permitted to rent out any part of the house! They thought of everything lol. Thank you for the reminder to be grateful, i sure am but it is easy to forget what we have when we are trying to solve what we don't have. Appreciate you

    1Reply
  • Blake H.
    OP
    Investor · Santa Barbara, CA · Member since 2021 · 76 posts · 67 votes
    5y

    @E.S. Burrell Can't wait to share that post! Looking forward to it. Thanks

    1Reply
  • Timothy Grant
    Member since 2021 · 15 posts · 14 votes
    5y

    @Blake H., I never thought this would be my first post here, but I'll go with it. I want to echo @Paul Kuhn. You should seriously consider the military. I've never served, I'm about as civilian as you can possibly be, but I am married to a career Soldier. Join the military, sell your house and let the government pay for your housing for a few years (or until retirement if you decide you like it). Your wife is in a perfect position in that her job can move with you when the military change your post every few years.

    1Reply
  • Blake H.
    OP
    Investor · Santa Barbara, CA · Member since 2021 · 76 posts · 67 votes
    5y

    @Timothy Grant honored your first post was in this thread! Military is a great option i will look into further, thanks

    1Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    5y

    You've got some harsh sounding feedback on here, probably not easy to take, maybe not 100% accurate because we don't know all your details, but probably also something you needed to hear and should reflect on.

    You just painted yourself in a corner, as one of my contractors likes to say. And you live in one of the most expensive places in the US. Maybe it's time to move?

    1Reply
  • Jonathan PavkovBusiness Member
    Columbus, OH · Member since 2021 · 201 posts · 166 votes
    5y

     +1 for Ohio! Move here, work remote for a tech company in CA. Make bank, low cost of living! Our property manager in our brokerage did just that - worked as an engineer for Google and Apple - quit and moved to Ohio, buying investment properties and building a PM company. Go Ohio!

    [email protected]614-802-5721
    1Reply
  • Jennifer Lindstrom
    Member since 2020 · 7 posts · 2 votes
    5y

    @Nathan G. Maybe he went to medical school

    1Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    5y
    Originally posted by @Timothy Grant:

     Join the military, sell your house and let the government pay for your housing for a few years (or until retirement if you decide you like it). Your wife is in a perfect position in that her job can move with you when the military change your post every few years.

    Now there's a good idea! Maybe they can both join and get posted together. Buy a house every place you're stationed, I know lots of guys that did that....

    1Reply
  • Timothy Grant
    Member since 2021 · 15 posts · 14 votes
    5y

    Bruce, as we start our journey into REI, we are really regretting we weren't smart enough to leverage the VA loan in Denver and particularly on Long Island.

    We're working on fixing that here in Kentucky.

    3Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    5y
    Originally posted by @Timothy Grant:

    Bruce, as we start our journey into REI, we are really regretting we weren't smart enough to leverage the VA loan in Denver and particularly on Long Island.

    We're working on fixing that here in Kentucky.

    Never too late to do it right! If I had a dollar for everything I wish I could do -over..... :-)

    1Reply
  • Aaron Gaffney
    Investor · Santa Barbara, CA · Member since 2016 · 75 posts · 35 votes
    5y

    Hey, fellow Santa barbarian! Where are you investing at? I understand your pain of student loans, like many of our generation, we were sold on a very potent mythology that any college degree would lead to increased success in money making power. I got my degree when I was almost 30 years old, during the years of the great recession. I’ve had a small stint as a business owner which started setting myself in the right direction financially, then got sucked back into the undertow of it long-term critical illness - without insurance. With or without a college degree, real wages have stagnated or dropped since 71, when we left the gold standard. Yes, we have to hustle and grind at times, but that was what we did when we took on a university degree with the promise of something better on the other side, which didn’t manifest for the vast majority of us that I’m aware of. Best of luck to you, I just sent you a friend request love to chat. I am doing all my investing out of state, California is becoming a worst nightmare to live in day by day. Reconsidering a business that I was about to purchase here.

    1Reply
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