All Forum Posts by: Jason Giomboni

I'm a newbie to the site and to real estate in general.

I just bought my first rental duplex last year and own it free and clear.

My plan is to use savings and the rental income to snowball my rental investments gradually.

Its the reverse philosophy from many I've read.

For example:

Say I earn 20k per year on rental property I own.

I save 3 to 5 years and buy a rental property with cash for 100 k and  then earn another 20k on that property.

Then I save for 2 or 3 years for another 100 k property and buy another property and another.

Eventually the number of years I save goes down and my cash flow and equity go UP.

I will have 100 % equity in my properties, minimal risk and positive cash flow moving forward.

These are simple numbers but just want to give an example of my plan.

Like I said, I'm a newbie.  Tell me what you think of my plan.   I just signed up and this is my first post I've ever responded to.

Jason

Mark,

Issuing Stock is not a form of debt in the company.  Its an investment in future growth in the company based on multiple factors such as profits, new stores opened, ect.

I agree you can be a 30 year old retiring a millionaire but for every 30 year old braggin on the mountain top nobody can count the number of bankruptcies from investors with no clue or no plan.

Jason 

For the record I vote the Dave Ramsey philosophy.

The borrower is slave to the lender!

Debt is not a tool.

I would rather own a property debt free and have it cash flow to buy my next property.

The problem I see with most people on this site is they have no patience and can't feel the RISK involved in carrying so much debt.

James DeRoast has it right.  Slow and steady wins the race.

PS companies with ZERO DEBT: American Express, Apple, Citrix Systems, Amazon, Bed, Bath & Beyond, TRowe Price, Red Hat, AutoDesk, and MasterCard.

Pretty interesting that TWO major companies thats entire philosophy is marketing the use of debt as a tool are debt free (AMEX & Mastercard)...