All Forum Posts by: Julian Joseph

Originally posted by @Rich S.:

I confess, I didn't read the entire thread, but for the most part, you will have two schools of thought.  #1- pay down your debt, you can't make money in real estate until you have money and plenty of it-- those folks, more than likely, did it that way... a conservative approach, that served them well and probably because they aren't the riskiest of investors.  #2- The folks that say figure out a way to do it now.... waiting 5 years is too long... they more than likely got started more creatively OR know how much getting started changed their life.  Ultimately, you have to decide.  If I were you and could find a way to get started whether through a partner, creative financing, etc, I would.  If your student loans are a reason to sit out now, and you do, you'll find a reason to sit out later to.  In my opinion the ONLY thing all successful real estate investors have in common... THEY ALL GOT STARTED... and the group of folks that didn't, want to be like them.  I don't think any approach is wrong, except the one that keeps someone from getting started.

@Rich You got it man, those two options are the gist of the thread. I am taking it all with a grain of salt but I can tell there are still alot of value as well that I am not taking for granted. I am fully committed to investing and without a doubt my first property will 100% owner occupy! That piece of info actually came from some research, BP podcasts, and from this thread too. I feel my mind has been made, and to be honest, I don't believe I'm going to change it. And if I find a great deal after I have my emergency fund is saved up, I might just jump on it! 

Maybe even partner with someone before investing. I'm kinda excited to see where and how my journey will begin, AND IT WILL BEGIN!

@Steve Vaughan I actually just purchased David Ramsey's book just a bit ago!

But yeah I have consolidated my loans around Christmas and have had one large loan since. There's a 10 year current plan on it of about 115,000 with 4.6% interest. I saw there were some strategies like Refinancing more than once as long as you can get a smaller interest rate and there are some companies that will provide a Cash bonus for signing up! So there are strategies I'll be looking more into, especially during the next 12 months.

While I do all do this though, there is NO doubt I will learn and attempt to earn while paying as long as I know its a great deal with good cashflow. I'm sorta excited to get into this, and who knows maybe I'll create a YouTube channel of my journey! If I do I hope you Subscribe! This will be a journey for sure.

Thanks for the much needed encouragement Steve, and the encouragement from this community. It's freakin awesome..

Zachary York You’re right man, and I believe someone earlier had mentioned about that 35% Ratio. I picked up a 2nd job but will looking for an even better one. All while I continue to learn more about Property investing and increase cash reserve before I go all in on this debt I have to at least 70% paid. I’d like to talk more about your house hack too if you don’t mind! FHA loan? Do you currently live in it? Did you renovate? That’s awesome, I’m hoping to do the same by next Summer maybe. Going to take my time, and if an opportunity comes for a great deal I may jump on it

Originally posted by @Steve Vaughan:

Originally posted by @Julian Joseph:

@Steve Vaughan Brother yes, there are tons of opportunity to leave college with a much lower debt. Scholarships are provided in high school and College. All you gotta do is go to an advisor and ask!! I was too stubborn and too lazy to look into them, I had NO idea what I was getting myself into in the long run.

I just figured I would pay for college like a normal student and figure it out when i crossed that bridge. Because I figured I'll make enough money out of college, "oh, I'll have money, I went to school of course I'll have money!"

Little did I know Steve, it's a long bridge.

If i could go back I would have been more aggressive with getting several scholarships. The only reason why I went to the school I went too (Penn State) was because I was asked to play baseball, which I did for a year but I didn't receive a scholarship for playing, I just knew I wanted to play somewhere so I went.. I was paying OUT-OF-STATE tuition as well. If I were smart, I would have transferred to an in-state school, for a much lower cost in tuition. 

I don't have any regrets as far as experiences go, because it was great. But I could've played the game smarter. YOU DO NOT need to go an expensive school to have a good job, and to be honest I don't think you need a college degree period. I believe in self research to learn and applying what you learn. You could be a software engineer without traditional schooling. The resources are out there and It's possible 1000% with commitment to learn. 

I was way too stubborn to transfer at the time, I had made some friends and enjoyed being free from my parents. I didn't want to transfer but if I look back I wish I did. Furthermore, I would have dropped out knowing what I know today. 

I have a younger sister today that is about to begin college and I continue to put in her head to always be in contact with her advisor. To ask about scholarships and to act on them. Do the work now so you have little to work with afterwards.

 Thanks for sharing, Julian. Great tips , too! Mindy should make this a sticky for folks beginning school.

My college days and debt ($23k) are long over, but I'm sure a lot of people will benefit from your post. Thank you!

 @Mindy Jensen :)

@Zack P. And yes, Especially If I do get a better 2nd job I would be mindless in how much I pay towards the loan. Without stress I would get it down 24 months!

@Manon Sheiman Yes, and to be honest, I felt that energy. I felt the entrepreneurial spirit that flooded the campus. Everyone i met there aspired for more and thought very highly of themselves. I fed off of that and I actually still do til this day. 

Much thanks for the tip, my plan now is to increase my cash reserve significantly and living a frugal lifestyle  before I begin this smart beginning

@Zack P. Really appreciate the insight Zach. At the very least you have me thinking that i can still survive while spending 50k a year towards my loan. And now I want to at least attempt to begin year 1 this way! If I can even do 40K within the year then that'll be winning for me.

I was listening to BP Money Podcast earlier today and there are people that can live off 10% of their income. I will try to get close to this strategy and change or remove any unnecessary expenses I have. You're absolutely right, I'm broke! Once I get about 10K into my Savings, it's go time.

@Caleb Heimsoth Thanks for the insight man. Truly, I'm happy there is at least a community like this who are willing to share value and it's with people who may share similar goals

I may begin my strategy first by having an emergency fund 6 months worth (halfway there). And then having 6 months worth of emergency loan payments saved up. Then I will attack the Loans even heavier afterwards. I think getting it down to atleast 30k is far more important BEFORE I even think about REI. I have a plan, it's going to take some time. I'll be applying for a better 2nd job to help but at least I have somewhat of a plan now vs whatever I had before even posting the question.

Thank you, going to do my best! 

Originally posted by @Justin Fox:

1. Save up a personal emergency fund (6 months total expenses).

2. Save up a 6-12 month student loan reserve fund.

3. Save up for a down payment and 6 month carrying cost reserve for an investment property (based on your criteria).

4. Search for and buy property.

Instead of doing one extreme thing versus the other, set goals and learn how to balance, manage and hedge against your liabilities properly.

I'm gonna write this down on my board Justin! 

@Steve Vaughan Brother yes, there are tons of opportunity to leave college with a much lower debt. Scholarships are provided in high school and College. All you gotta do is go to an advisor and ask!! I was too stubborn and too lazy to look into them, I had NO idea what I was getting myself into in the long run.

I just figured I would pay for college like a normal student and figure it out when i crossed that bridge. Because I figured I'll make enough money out of college, "oh, I'll have money, I went to school of course I'll have money!"

Little did I know Steve, it's a long bridge.

If i could go back I would have been more aggressive with getting several scholarships. The only reason why I went to the school I went too (Penn State) was because I was asked to play baseball, which I did for a year but I didn't receive a scholarship for playing, I just knew I wanted to play somewhere so I went.. I was paying OUT-OF-STATE tuition as well. If I were smart, I would have transferred to an in-state school, for a much lower cost in tuition. 

I don't have any regrets as far as experiences go, because it was great. But I could've played the game smarter. YOU DO NOT need to go an expensive school to have a good job, and to be honest I don't think you need a college degree period. I believe in self research to learn and applying what you learn. You could be a software engineer without traditional schooling. The resources are out there and It's possible 1000% with commitment to learn. 

I was way too stubborn to transfer at the time, I had made some friends and enjoyed being free from my parents. I didn't want to transfer but if I look back I wish I did. Furthermore, I would have dropped out knowing what I know today. 

I have a younger sister today that is about to begin college and I continue to put in her head to always be in contact with her advisor. To ask about scholarships and to act on them. Do the work now so you have little to work with afterwards.