Hey guys!
I've read the first MJ book in 2016 and started investing in Real Estate since then.
I thought I was doing good work having passive income streams as rentals, but it is nothing more than a Slowlaner strategy.
Now, 10 years later its time to improve the investment strategy.
So far my journey in RE started by buying houses from the bank at very reduced prices and renting them out. I bought a few using bank loans until my credit capacity is on the limit and I couldn't buy any more.
Then I started paying out credits, selling one or another until all my rented properties are all paid for. Having the properties totally paid frees me from the monthly mortgage and provides a steady cashflow, but it still is a very limited amount.
Currently I earn around 18k€ (21k$) yearly from rentals (clean, after taxes and expenses), and I guess for now I will leave it like this and focus on other deals.
I am also currently working a 9-5 (actually 7:30am - 4pm) on a company that pays me annually around 50k€ (59k$) , I'm living and working in Belgium; travels, housing, work car all paid for. It is good as a job, but it is still a prison. I have to live in this country just because I am working, while my girlfriend and family are far away.
There is a catch to why the job may be considered good in this scenario: I don't know if the rules are the same for you guys in USA, because you have credit scores and whatnot, but in Portugal the Bank LOVES that you have a job in order to get housing financing. In order to ask for a loan, they demand the last IRS declaration, last 3 income receipts and that you are working as an employee.
The rents themselves don't worth as much as a salary does for the Bank. So, I am going to exploit the bank loans until I cant get no more credit, and only after that I will quit the job.
In the meantime, I bought a piece of land in the suburbs of Porto city for 155k€ (182k$) and I am going to build a small condo. The land has 716m2 (7707sq ft) and it is possible to build up to 10 units. The Architect is already going to have his first meeting with the City Hall staff to clear some doubts (especially about the number of parking spaces and how many units in total can be built, ranging from 8 to 10) and soon will develop the Licensing Project, which after approval can be used to start the construction phase.
The total construction time will range from 2 to 3 years (I know its a lot and I will do my best to try to shorten this period) after which I will have a brand new 8-10 unit condo that I initially was thinking of renting.
The Slowlaner mindset was telling me that renting it out for around 5k€ (5.9k$) per month was already good enough and this would imply around 60k€/year (71k$).
After a quick read on the Millionaire Fastlane , I noticed that my mindset was falling back into Slowlane mediocrity because all I was aiming for was low passive income values.
When I see the potential that this new condo has, especially in a phase where there is insane demand for housing in Porto city, fueled by digital nomads, tourists and migrants, this will surely return a big profit if SOLD in a lump sum.
Having calculated the following:
After paying all my Taxes to my partner, the IRS who always takes a cut of the deal, I am left with ± 780k€ (919k$) liquid, in cash!
Its much better to earn a lump sum of ± 780k€ (919k$) after a maximum period of 3 years, than to earn the 60k€ (71k$) yearly passive income that only amounts to 180k€ (212k$) after the 3 years?? Sure is!
Notice that all these estimates are always considering the lowest sale value (at the time of sale it may be much higher, as it can also be lower) to make a safe value estimate.
My plan is: after having the lump sum I will reinvest again, this time without the need of the Bank intervention. I will have the money to buy another land, pay the Architect for another project, and pay the Constructor for another building. I will finally be able to quit my job after this first Condo liquidation and I will have the capital needed to invest again and so forth, creating bigger and more valuable property, one step at a time.
I attach a picture of the study that is being developed by the Architect, just to have an idea of the overall setup.
Is this Fastlane or what?
I've read the first MJ book in 2016 and started investing in Real Estate since then.
I thought I was doing good work having passive income streams as rentals, but it is nothing more than a Slowlaner strategy.
Now, 10 years later its time to improve the investment strategy.
So far my journey in RE started by buying houses from the bank at very reduced prices and renting them out. I bought a few using bank loans until my credit capacity is on the limit and I couldn't buy any more.
Then I started paying out credits, selling one or another until all my rented properties are all paid for. Having the properties totally paid frees me from the monthly mortgage and provides a steady cashflow, but it still is a very limited amount.
Currently I earn around 18k€ (21k$) yearly from rentals (clean, after taxes and expenses), and I guess for now I will leave it like this and focus on other deals.
I am also currently working a 9-5 (actually 7:30am - 4pm) on a company that pays me annually around 50k€ (59k$) , I'm living and working in Belgium; travels, housing, work car all paid for. It is good as a job, but it is still a prison. I have to live in this country just because I am working, while my girlfriend and family are far away.
There is a catch to why the job may be considered good in this scenario: I don't know if the rules are the same for you guys in USA, because you have credit scores and whatnot, but in Portugal the Bank LOVES that you have a job in order to get housing financing. In order to ask for a loan, they demand the last IRS declaration, last 3 income receipts and that you are working as an employee.
The rents themselves don't worth as much as a salary does for the Bank. So, I am going to exploit the bank loans until I cant get no more credit, and only after that I will quit the job.
In the meantime, I bought a piece of land in the suburbs of Porto city for 155k€ (182k$) and I am going to build a small condo. The land has 716m2 (7707sq ft) and it is possible to build up to 10 units. The Architect is already going to have his first meeting with the City Hall staff to clear some doubts (especially about the number of parking spaces and how many units in total can be built, ranging from 8 to 10) and soon will develop the Licensing Project, which after approval can be used to start the construction phase.
The total construction time will range from 2 to 3 years (I know its a lot and I will do my best to try to shorten this period) after which I will have a brand new 8-10 unit condo that I initially was thinking of renting.
The Slowlaner mindset was telling me that renting it out for around 5k€ (5.9k$) per month was already good enough and this would imply around 60k€/year (71k$).
After a quick read on the Millionaire Fastlane , I noticed that my mindset was falling back into Slowlane mediocrity because all I was aiming for was low passive income values.
When I see the potential that this new condo has, especially in a phase where there is insane demand for housing in Porto city, fueled by digital nomads, tourists and migrants, this will surely return a big profit if SOLD in a lump sum.
Having calculated the following:
- 155k€ (182k$) for the Land
- 300k€ (353k$) for the Construction costs
- 5k€ (5.9k$) Municipal Taxes
- Total Cost ± 460k€ (542k$)
After paying all my Taxes to my partner, the IRS who always takes a cut of the deal, I am left with ± 780k€ (919k$) liquid, in cash!
Its much better to earn a lump sum of ± 780k€ (919k$) after a maximum period of 3 years, than to earn the 60k€ (71k$) yearly passive income that only amounts to 180k€ (212k$) after the 3 years?? Sure is!
Notice that all these estimates are always considering the lowest sale value (at the time of sale it may be much higher, as it can also be lower) to make a safe value estimate.
My plan is: after having the lump sum I will reinvest again, this time without the need of the Bank intervention. I will have the money to buy another land, pay the Architect for another project, and pay the Constructor for another building. I will finally be able to quit my job after this first Condo liquidation and I will have the capital needed to invest again and so forth, creating bigger and more valuable property, one step at a time.
I attach a picture of the study that is being developed by the Architect, just to have an idea of the overall setup.
Is this Fastlane or what?
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Attachments
Access Restricted: Unlock 1,000,000+ Posts
Stop Peeking Through the Keyhole.
Open the Door.
You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.
- Active Daily: Life-changing content posted dozens of times every day. No dead threads.
- MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
- Vetted Network: Connect with founders scaling to 7 and 8 figures.
- Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."— User Richard Peck
"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?
