Slow transition to the fastlane ...

[npsome]

... read the faslane book and really got the fire burning again ! Reading Unscripted now to reinforce the mind-set required.

In the meantime assessing my situation and figuring out next steps. I am going to be 48, married with 1 kid in high school. I have done reasonably well, debt free, reasonable savings and both of us have good paying jobs. Luckily our upbringing enabled us to have a good balance between hard work, saving and also enjoying life along the way. However, the spectre of losing a job always hangs on us and the regret of not making a bigger impact. I came across this book a little late but better late than never.

My plan is to first replace our incomes through real estate passive investing to take the risk off about losing jobs. Simultaneously, I will start using the frameworks that MJ has beautifully articulated to figure out unmet needs or opportunities to better execute and determine where I can add more value. I have tried the different types of investing, but needs a ton of active time so fails some of the CENTS tests. It can be done, but may never be truly passive and probably not as satisfying. In the extreme case, if I don't come up with a viable business idea myself in the next couple of years, I will evaluate and join a startup that I think has a with a 3-5 year horizon to go public. Having the real estate passive income should alleviate the fear of failing. Once the kid is off to college, it should free up a ton of extra time to put the pedal to the metal !! Either way better than regretting 10 years later would've, could've, should've

This is an excellent forum and will keep folks updated on my experience and any both success and failure on the path to financial freedom and a more fulfilled life. Hope this helps some folks who are in the same boat and also helps me accountable easy to talk/plan, hard to execute.

 

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[lowtek]

Welcome aboard, and thanks for sharing your story.

Real estate is tough business right now. Everything is up 30% this year, at the very least. It's a good time to be selling real estate, but buying is a bit riskier. I'm not saying not to do it, but my wife and I are actively in that game (we have a twelve unit rental and two single family homes in our portfolio) so believe me when I say it's not a no-brainer like it was a few years ago.

Best advice I can give is to buy in a market where there isn't a huge markup. If you live in such a place, awesome ... buy local. If you don't, then don't be afraid to shop in other states. Either way, hire a property manager. Don't try to play landlord.

 

[alexkuzmov]

... read the faslane book and really got the fire burning again ! Reading Unscripted now to reinforce the mind-set required.

In the meantime assessing my situation and figuring out next steps. I am going to be 48, married with 1 kid in high school. I have done reasonably well, debt free, reasonable savings and both of us have good paying jobs. Luckily our upbringing enabled us to have a good balance between hard work, saving and also enjoying life along the way. However, the spectre of losing a job always hangs on us and the regret of not making a bigger impact. I came across this book a little late but better late than never.

My plan is to first replace our incomes through real estate passive investing to take the risk off about losing jobs. Simultaneously, I will start using the frameworks that MJ has beautifully articulated to figure out unmet needs or opportunities to better execute and determine where I can add more value. I have tried the different types of investing, but needs a ton of active time so fails some of the CENTS tests. It can be done, but may never be truly passive and probably not as satisfying. In the extreme case, if I don't come up with a viable business idea myself in the next couple of years, I will evaluate and join a startup that I think has a with a 3-5 year horizon to go public. Having the real estate passive income should alleviate the fear of failing. Once the kid is off to college, it should free up a ton of extra time to put the pedal to the metal !! Either way better than regretting 10 years later would've, could've, should've

This is an excellent forum and will keep folks updated on my experience and any both success and failure on the path to financial freedom and a more fulfilled life. Hope this helps some folks who are in the same boat and also helps me accountable easy to talk/plan, hard to execute.

Welcome!

My plan is to first replace our incomes through real estate passive investing to take the risk off about losing jobs.

This might be rather slow to replace your income.
How do you plan to go about it?

 

[npsome]

Welcome aboard, and thanks for sharing your story.

Real estate is tough business right now. Everything is up 30% this year, at the very least. It's a good time to be selling real estate, but buying is a bit riskier. I'm not saying not to do it, but my wife and I are actively in that game (we have a twelve unit rental and two single family homes in our portfolio) so believe me when I say it's not a no-brainer like it was a few years ago.

Best advice I can give is to buy in a market where there isn't a huge markup. If you live in such a place, awesome ... buy local. If you don't, then don't be afraid to shop in other states. Either way, hire a property manager. Don't try to play landlord.

Thank you for your response and information !! Agreed 100% ! Just started looking into it and will be patient, only focus on multi-family where I can hire a management firm, especially with the full time job and lack of handy skills - just joined the local REIA group (CT) and will start analyzing markets and opportunities. From my learning so far it looks like with commercial multi-family (>5 units) it should be mostly based on net income from the property v/s comps so that should help protect from overpaying.

 

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[npsome]

Welcome!


This might be rather slow to replace your income.
How do you plan to go about it?

Thank you for the welcome and great question. From my understanding to date, looks like the best way is commercial multi-family (> 5 units) as it allows to hire a property management firm and can scale fairly quickly due to the concentration of units. I will defnitely let folks know how it goes, always sounds easy until you get into the details. I am making it my focus for the next 6 months at least and determine if it's feasible.

 

[lowtek]

Thank you for your response and information !! Agreed 100% ! Just started looking into it and will be patient, only focus on multi-family where I can hire a management firm, especially with the full time job and lack of handy skills - just joined the local REIA group (CT) and will start analyzing markets and opportunities. From my learning so far it looks like with commercial multi-family (>5 units) it should be mostly based on net income from the property v/s comps so that should help protect from overpaying.

Just an FYI, when financing the commercial multi family, banks typically do 10 year loans on a 20 year amortization. You've got a big balloon at the end of those 10 years.

 

[npsome]

Just an FYI, when financing the commercial multi family, banks typically do 10 year loans on a 20 year amortization. You've got a big balloon at the end of those 10 years.

Thank you, definitely a lot to learn in this space ! Assuming that prompts either refinancing or selling ? Are lenders just reducing their risk with this arrangement ?

 

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[alexkuzmov]

Thank you for the welcome and great question. From my understanding to date, looks like the best way is commercial multi-family (> 5 units) as it allows to hire a property management firm and can scale fairly quickly due to the concentration of units. I will defnitely let folks know how it goes, always sounds easy until you get into the details. I am making it my focus for the next 6 months at least and determine if it's feasible.

I cant really help you with feasiblity since I`m from eastern Europe, Bulgaria.
But I can offer some advice about furneshing, repairs, stuff like that.
I`m also at the begining of my journey in real estate, my progress so far: RANT - Savour the Pain
My goal is a little different though, I`m pouring any extra money I can spare into real estate, like investing for 20 years from now.