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Camaro68
Bronze Contributor
I’ll paraphrase the next year or so. The tenants at the original house loved it so much they wanted to buy it. I sold it to them at full fair market value (I actually think I was a little high) plus I saved quite a bit by not having to pay realtor commissions, they secured their own financing and we had a title company write it up. So I had a cool $100k from that deal. The new place on the lake was actually cheaper because I had locked in at 3.75% rather than 4.5% on the other place, I was cash flowing even more on the new place, and we were on the water. Not bad. So I’m continuing to work, roommates hold the fort down while I’m gone, and even more cash to deploy.
Throughout all this I’m reading, on nights I’d be at work I’d be reading, sometimes 1-2 books a night. All of a sudden I’m blown away again by the concept of DCF and valuation. I start to look at things as investments and compare them to a risk free return. I talk to everyone I can about everything finance related and everyone looks at me like I’m crazy. It still blows me away that guys I work with can name the 3rd string defensive tackle that played 3 games for the Steelers back in 1996 and would recognize him on the street and tell you what college he went to, but if you try to discuss with them something as simple as the way an amortization table works with regard to rate and term, their eyes glaze over and they have no clue. I love football but at the end of the day, that guy is making millions and I’d rather direct my focus and energy into learning or memorizing things that will benefit ME.
Back to the story…so I once again decide to try the markets. I read about target date funds, dividend investing, and everything I can get my hands on about Warren Buffett, literally. I make some good investments and a couple kinda bad ones. Luckily the big investments were good and the bad ones as a percentage were pretty small although their currently paper losses. This again opens a huge new world to me. A funny side note, remember when I talked about being sick at the $2-300 losses in the penny stocks, an average day for my accounts in the market is $10-15k swings, if I look at the YTD numbers its common to see $100k between highs and lows. (I know there are guys here that make that in a month, just illustrating how my own perception has changed)
I could again, write an entire book about this alone (I know its getting long already) Anyway, fast forward to today. Through this roller-coaster and continually trying to move forward, I still have the place on the lake. It’s rented out and cash flow positive. Job is going good, over the last 6 years I’ve averaged about $160k/yr plus the approx. $13k gross rents and around $10k dividend income and misc interest I get paid from the land contract. I max a 401k, IRA, HAS and fund a taxable account. The totals invested each year are approx. $83k. I track all income and investments with Excel spreadsheets. I love Excel. If I had to be stuck on an island with a computer that had one capability…it would be Excel. Ok a little drastic, but I seriously love setting up spreadsheets. (Yes I’ve had tons of GF’s, kinda a closet numbers nerd though)
So you’ve read where I’ve been, how I got here, where I am now…but what about where I am going.
My job pays well and allows me to invest a substantial amount but IMO it’s still the Slowlane. If a boss fired me tomorrow it would rock my world. Perhaps not financially, but definitely my 5-10yr plan as that loss of deployable capital might be tough to replace quickly. Although I have some dividend income coming it, I don’t specifically invest for dividends because of tax consequences. This brings us to the next chapter, plan, leg of the journey.
When I was in college I took a part time job with the mom of a girl I went to school with. She owned a group home for high functioning adults who needed help with day to day care as they transition from the medical facility to home. I worked there (basically just slept, it was allowed) overnight and did homework and then left in the morning. It was super easy and only paid $8/hr but I didn’t have to work, just stay there. Fast forward to today. I reconnected with them and her mom wants to retire. This thing throws off serious cash, I’ve met with her to go over the books, the money is guaranteed by the county and there is low risk. This is a Fastlane business. The only risk that I see is employee turnover, can be tough to train/replace but they are cheap. I can do payroll, accounting, books etc. and the business is managed and staffed to take care of day to day stuff. The business side I can run from any WiFi although I would likely stop in a couple days a week because I would enjoy it. I am in the process of pursing this deal. I’ll update things as they progress. I’d like to do this as a transition from my Slowlane job to more freedom and being my own boss.
This has gotten incredibly long, I doubt anybody made it this far, thanks if you did! I’m starting to slow down haha. Feel free to answer any questions about anything and I’d be happy to answer, or give me constructive criticism. Thankful for the forums ability to get my creative juices flowing, I also feel like its nice to “ be around” like minded individuals who have a passion for business and aren’t afraid to go out and try, make mistakes and keep on goin for it. Keep that hunger.
Throughout all this I’m reading, on nights I’d be at work I’d be reading, sometimes 1-2 books a night. All of a sudden I’m blown away again by the concept of DCF and valuation. I start to look at things as investments and compare them to a risk free return. I talk to everyone I can about everything finance related and everyone looks at me like I’m crazy. It still blows me away that guys I work with can name the 3rd string defensive tackle that played 3 games for the Steelers back in 1996 and would recognize him on the street and tell you what college he went to, but if you try to discuss with them something as simple as the way an amortization table works with regard to rate and term, their eyes glaze over and they have no clue. I love football but at the end of the day, that guy is making millions and I’d rather direct my focus and energy into learning or memorizing things that will benefit ME.
Back to the story…so I once again decide to try the markets. I read about target date funds, dividend investing, and everything I can get my hands on about Warren Buffett, literally. I make some good investments and a couple kinda bad ones. Luckily the big investments were good and the bad ones as a percentage were pretty small although their currently paper losses. This again opens a huge new world to me. A funny side note, remember when I talked about being sick at the $2-300 losses in the penny stocks, an average day for my accounts in the market is $10-15k swings, if I look at the YTD numbers its common to see $100k between highs and lows. (I know there are guys here that make that in a month, just illustrating how my own perception has changed)
I could again, write an entire book about this alone (I know its getting long already) Anyway, fast forward to today. Through this roller-coaster and continually trying to move forward, I still have the place on the lake. It’s rented out and cash flow positive. Job is going good, over the last 6 years I’ve averaged about $160k/yr plus the approx. $13k gross rents and around $10k dividend income and misc interest I get paid from the land contract. I max a 401k, IRA, HAS and fund a taxable account. The totals invested each year are approx. $83k. I track all income and investments with Excel spreadsheets. I love Excel. If I had to be stuck on an island with a computer that had one capability…it would be Excel. Ok a little drastic, but I seriously love setting up spreadsheets. (Yes I’ve had tons of GF’s, kinda a closet numbers nerd though)
So you’ve read where I’ve been, how I got here, where I am now…but what about where I am going.
My job pays well and allows me to invest a substantial amount but IMO it’s still the Slowlane. If a boss fired me tomorrow it would rock my world. Perhaps not financially, but definitely my 5-10yr plan as that loss of deployable capital might be tough to replace quickly. Although I have some dividend income coming it, I don’t specifically invest for dividends because of tax consequences. This brings us to the next chapter, plan, leg of the journey.
When I was in college I took a part time job with the mom of a girl I went to school with. She owned a group home for high functioning adults who needed help with day to day care as they transition from the medical facility to home. I worked there (basically just slept, it was allowed) overnight and did homework and then left in the morning. It was super easy and only paid $8/hr but I didn’t have to work, just stay there. Fast forward to today. I reconnected with them and her mom wants to retire. This thing throws off serious cash, I’ve met with her to go over the books, the money is guaranteed by the county and there is low risk. This is a Fastlane business. The only risk that I see is employee turnover, can be tough to train/replace but they are cheap. I can do payroll, accounting, books etc. and the business is managed and staffed to take care of day to day stuff. The business side I can run from any WiFi although I would likely stop in a couple days a week because I would enjoy it. I am in the process of pursing this deal. I’ll update things as they progress. I’d like to do this as a transition from my Slowlane job to more freedom and being my own boss.
This has gotten incredibly long, I doubt anybody made it this far, thanks if you did! I’m starting to slow down haha. Feel free to answer any questions about anything and I’d be happy to answer, or give me constructive criticism. Thankful for the forums ability to get my creative juices flowing, I also feel like its nice to “ be around” like minded individuals who have a passion for business and aren’t afraid to go out and try, make mistakes and keep on goin for it. Keep that hunger.
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