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Start with Why

by | Sep 15, 2014 | Uncategorized

I didn’t have an easy time starting out in real estate investing. In fact, my first two deals didn’t even go through. After those two deals failed, I had to decide how to continue and if to continue at all. I could have taken my savings and purchased bonds, or stocks, or real estate trusts. These, too, would classify as passive investing but they probably wouldn’t give me the returns that investing in real estate could provide.

After the two deals failed, I had to take a break for a few days… No reading about real estate, no replying to offers from whole sellers or turnkey providers. During those few days, I took time to think about why I was doing what I was doing. Why was I spending so many hours after work learning about real estate? Why was I researching different markets? Why was I talking to real estate agents, mortgage brokers, real estate investors, turnkey providers, and others?

So here’s what I came up with, here’s my “why:” I want to escape the rat race. I want to stop trading my time for money at a 9-5 job. I want to create passive cash flow to pay for my day-to-day life and take advantage of things like appreciation and amortization to build long-term wealth.

My goal is to own my time. All of it. Today I spend between 8-10 hours a day at work. I don’t have much choice since my employer provides me with a monthly income in exchange for those 8-10 hours each day. I want to stop that. Or at least have the option to stop that. I want to be able to spend more time with my family, and more time doing the things I enjoy. I believe that is true wealth. I believe that a wealthy person is someone who has full control of their time.

So that’s my “why.” Building that, getting to the point where I own my time, and having the financial freedom to do so. What’s yours?.

August 2014 Income Report

by | Sep 1, 2014 | Income Report

I spent August continuing my research in real estate investing, specifically on turnkey real estate providers in markets that I’m interested in. I haven’t decided where my next purchase will be and with which provider but my goal is to purchase house number 2 during the month of September.

As for my first property, during the month of August, I received payment from my property management company for rent collected during July. I purchased the house during the month of July so I only received the rent payment for the last 10 days of the month that I owned the house. The only expense I had during the month of July was for the Property management company’s services for the same number of days. The reason I don’t have any other expenses (such as insurance or property taxes) is that I paid for the first year of insurance and $233.2 for 2014 city property taxes as part of the closing costs, and the county taxes of $697 will be due in October. I didn’t pay mortgage since my first payment is due September 1st. With that, August’s income report:

 

Rent $256.46
Mortgage $0.00
Insuance $0.00
Taxes $0.00
Management -$25.65
Total cash flow $230.81