Older LL advice to middle (by Jason [MI]) Sep 27, 2020 2:55 PM
Older LL advice to middle (by Robert J [CA]) Sep 27, 2020 4:33 PM
Older LL advice to middle (by 6x6 [TN]) Sep 27, 2020 5:37 PM
Older LL advice to middle (by Bonanza [NC]) Sep 27, 2020 7:03 PM
Older LL advice to middle (by Ken [NY]) Sep 27, 2020 7:28 PM
Older LL advice to middle (by 6x6 [TN]) Sep 27, 2020 8:33 PM
Older LL advice to middle (by Allym [NJ]) Sep 27, 2020 9:00 PM
Older LL advice to middle (by Natasha [MD]) Sep 27, 2020 11:43 PM
Older LL advice to middle (by BRAD 20,000 [IN]) Sep 28, 2020 2:54 AM
Older LL advice to middle (by myob [GA]) Sep 28, 2020 7:22 AM
Older LL advice to middle (by Ray-N-Pa [PA]) Sep 28, 2020 7:59 AM
Older LL advice to middle (by plenty [MO]) Sep 28, 2020 8:06 AM
Older LL advice to middle (by WMH [NC]) Sep 28, 2020 9:09 AM
Older LL advice to middle (by MikeA [TX]) Sep 28, 2020 11:12 AM
Older LL advice to middle (by Allym [NJ]) Sep 28, 2020 11:17 AM
Older LL advice to middle (by BRAD 20,000 [IN]) Sep 28, 2020 11:21 AM
Older LL advice to middle (by myob [GA]) Sep 28, 2020 1:26 PM
Older LL advice to middle (by JAC [OH]) Sep 28, 2020 2:01 PM
Older LL advice to middle (by Landlord ofthe Flies [TX]) Sep 28, 2020 3:45 PM
Older LL advice to middle (by PG [SC]) Sep 28, 2020 10:28 PM
Older LL advice to middle (by Dee Ann [WI]) Sep 29, 2020 12:18 AM
Older LL advice to middle (by Bri76 [VA]) Sep 29, 2020 1:18 PM
Older LL advice to middle (by RichE [IL]) Sep 29, 2020 2:04 PM
Older LL advice to middle (by Jason [MI]) Sep 29, 2020 9:34 PM
Older LL advice to middle (by Jason [MI]) Posted on: Sep 27, 2020 2:55 PM Message:
Hello.
Just curious. I have seen like the 1% post an others on here an just got me thinking. I am 43 an doing very well for myself. Working on my 4th million. 40 some sfh worth about 4 million an about 400k in debit (primary 3.5%, loc 3.625%, car loan at 1.99%) I am working full time job mostly for great insurance an 8 weeks paid vacation. Id love to leave jobs but i wont get close to the vacation time an cheap good insurance(family 4, 250 family deductible, an my portion is 56 every 2 weeks with dental vision an health) So....For you older ll.. What advice would you give to a younger version of yourself? I know what i would tell a 20 year old, but i dont know what i would hear from 60+ year old. I have a beautiful home, 2020 ram truck an 2020 chevy traverse.. I seem to have hit the point where i buy what i want an not buy based on cost.. No more dollar store ketchup an mustard.. I want heinz an frenchs, taste better to me.. My kids are 8 an 9.. They wont have any college debt. Do you ever stop buying homes? Or when is enuff enuff? I dont know any old timers. I joined local ll group but i am shy guy an keep to myself.. What do you wish could have did different? --107.77.xxx.x |
Older LL advice to middle (by Robert J [CA]) Posted on: Sep 27, 2020 4:33 PM Message:
Since I retired over 10 years ago from the "Rat race" and only do my personal real estate holdings, investment yields have plummeted. I used to earn around 5% on my cash. Now those types of account pay 1% to 2% at best.
In 1980 with 1 million in the back at a 10% return, you'd make $100,000 a year.
In the 2008, you'd need 2 million in the bank to return $100,000 a year.
And now 2020, you'd need 5 million in the bank to earn $100,000.
So what you think you have and invested can turn to a smaller return over time.
Working longer or being a better real estate manager will have to improve over time to match your buying power since money is worth less and less each day. --47.155.xx.xxx |
Older LL advice to middle (by 6x6 [TN]) Posted on: Sep 27, 2020 5:37 PM Message:
Glad you posted this question. I need to learn this myself. --73.120.xx.xxx |
Older LL advice to middle (by Bonanza [NC]) Posted on: Sep 27, 2020 7:03 PM Message:
seems like you are doing awesome. I'm older and only have 7 properties. Wasted a lot of time and money on bad investments in the stock market 2000 and 2008 and got into RE late in the game. Just keep doing what you are doing and don't buy real estate in a foreign country. I was stupid enough to do it twice. Bit me both times. --65.188.xxx.xxx |
Older LL advice to middle (by Ken [NY]) Posted on: Sep 27, 2020 7:28 PM Message:
I would quit the job if i were you,i buy my own insurance for my wife and I,about $1200 month. --104.229.xxx.xxx |
Older LL advice to middle (by 6x6 [TN]) Posted on: Sep 27, 2020 8:33 PM Message:
Bonanza, would you mind explaining how buying RE in a foreign country bit you? --73.120.xx.xxx |
Older LL advice to middle (by Allym [NJ]) Posted on: Sep 27, 2020 9:00 PM Message:
I would say be just as frugal and splurge occasionally. It can all go away very fast. We live on a wet rock moving around a controlled nuclear fusion reaction. There are millions of us and some are not so nice. --71.104.xx.xxx |
Older LL advice to middle (by Natasha [MD]) Posted on: Sep 27, 2020 11:43 PM Message:
I'm a little older than you. The best thing I did was start investing in real estate in my early twenties so by my mid 40's, I could do whatever I wanted to do and enjoy life. Yes, I sacrificed having fun and was super frugal early on. I love what I do, so my husband and I invest when we want to work a project. We don't don't do it for the money. We do it because we enjoy it and the money comes. Now, we don't invest in SFH but have several multi-units and it got us to our goal quicker. We always say enough is enough but then we get bored and want to do a project. And yes, we have invested in foreign real estate so I disagree with the above... Just make sure you do more due diligence if investing outside your comfort zone. It took us 10 years to find the right foreign investment but well worth it. --190.105.xxx.xxx |
Older LL advice to middle (by BRAD 20,000 [IN]) Posted on: Sep 28, 2020 2:54 AM Message:
Jason,
Congrats on your success!
My best advice:
As I read your post I sense a lack of a goal. You've found success and are comfortable. And your job has you in the Golden Handcuffs. THAT is the danger zone.
8 weeks vacation?? A joke! How about retiring now for 52 weeks of vacation!
Insurance? Pfft. Don't stick with a job for something you can easily replace with one house.
Money is made IN YOUR MIND. Time to thing bigger or rot on the vine. Force yourself to get around people who are more successful than you. Seminars do this for me.
I sat in a special invitation, multi millionaire only brain trust thinking I was hot stuff. As we went around the room the guy next to me had flipped 2,000 homes. Another wrote a book on how he made $12 million part time.
Get out and build your DREAM. Get with your wife and kids and make a picture board of where you want to go and what you want.
I do a lot of DREAMING and mind stretching on YouTube.
Me? Your kids will never be this age and this much fun again. In a few years they will be off with THEIR friends, not you. Be a full time Dad and Husband, not a "Gotta go to work" Dad. Have lunch with your kids at school. Take your wife out to lunch mid-week. Lay in bed as long as you want, ESP with company:)
Get an RV and take them across the country before middle school and high school activities fill their schedule.
www.youtube.com/watch?v=DbudlWT9_20
Or sail the world with your family. (Cool opening)
www.youtube.com/watch?v=-jyWfH1p1M0
DREAM BIG!
BRAD
--73.102.xxx.xxx |
Older LL advice to middle (by myob [GA]) Posted on: Sep 28, 2020 7:22 AM Message:
EVER HEAR THIS? 'Easy come easy go"?
How I did it. My wife and I were 36 when we started buying RE. Started slow 1 the first year 2 the second-- then all of a sudden 80>>>>>> anyway at 50 I was still working my first job -- second shift. I could take off using OWP or ONP whenever I needed it. (Off with permission and off no pay)
I asked for a 5 year leave of absence. Which the company granted and offered medical coverage, seniority continued and longevity. I was also able to take my flight benefits.
Once I got to 52 I could retire but waited to 54.
Your 43 with 40 property's-- (congrates) I would continue but would want to check out what the current company is offering-- any packages? How about a leave to attend school or other endeavor to help your current company. You need 9 more years and need to figure out how much you will lose if you were to quit??? Sounds like you got it under control now. Does continued employment help you buy properties?
When we were buying-- the seller told us as long as I contiued were I was they would sell me as many as I could take. --99.103.xxx.xxx |
Older LL advice to middle (by Ray-N-Pa [PA]) Posted on: Sep 28, 2020 7:59 AM Message:
I consider myself an ender.
But will I still buy a place a place if it makes sense - absolutely. I plan on doing quite a bit in 2021-2022. Real estate is a long term game and the market does turn on a dime.
I am not sure though why people love talking about number of units. There isn't a magic number to have. You can have 10 paid off and make more money than if you have 30 that are leveraged.
This past year - I shed my load by nearly half - the numbers made sense to sell. When the good deals come along you vacuum them up too. --24.101.xxx.xx |
Older LL advice to middle (by plenty [MO]) Posted on: Sep 28, 2020 8:06 AM Message:
Buy one single family home to cover the health insurance. Do what you want with the job but retire five years before you need to. It takes five years to accumulate to the new time you'll enjoy. If the only reason you are workin in health insurance, solve that by buying one single family home and the stop the 9-5 job. --99.203.xx.xxx |
Older LL advice to middle (by WMH [NC]) Posted on: Sep 28, 2020 9:09 AM Message:
Better buy insurance now while pre-existing conditions are still covered. Although that could change in October and I'll be in deep trouble... --50.82.xxx.xxx |
Older LL advice to middle (by MikeA [TX]) Posted on: Sep 28, 2020 11:12 AM Message:
I'm quite a bit older, retired a few years ago from a job I enjoyed with great benefits. So much different now. Before, I was spending evenings and weekends on my RE business, spent 4 of 6 week of vacation every year working the RE, and very little with family and enjoying life. Now I have lots of free time to enjoy with friends and family. Lots of travel and fun activities and still have more time than before to work on the business.
I stayed in the day job way longer than I should have. They held a carrot in front of me with medical coverage until medi-care kicks in if I would stay until 55. While it's nice to have, I now realize it wasn't really as valuable as I thought. Honestly, it was fear that kept me there. Fear of not having a steady income, fear of not having the work environment to go to, fear of the unknown. What I didn't consider was the freedom to work when I want to, time to spend with family, and time to spend on MY business rather than theirs.
I also think I did one thing right when I was younger. Different income streams are important for peace of mind. It has helped me tremendously in this current environment with eviction moratoriums, uncertainty on tenants paying, and the media treatment of landlords. Knowing that I could cover the bills from other income streams if necessary. Not that I've had to, but I'm also not stressed about the current situation if things go south. --64.130.xx.xxx |
Older LL advice to middle (by Allym [NJ]) Posted on: Sep 28, 2020 11:17 AM Message:
Jason, Pre existing conditions will continue to be covered so don't worry about that in your real estate plan going forward. He says it every time he speaks. I would like to know if Ocare was so good, why did so many older minorities die of covid? I heard of an older couple who paid 30K per year with a 12 K deductible. Maybe those black folks could not afford Ocare? Whatever DJT comes up with has to be better than that. You, WMH, are a sneak, and you are like a little land mine planted in the road WMH, attacking the Pres politically under the cover of trying to help others. IDLY. --71.104.xx.xxx |
Older LL advice to middle (by BRAD 20,000 [IN]) Posted on: Sep 28, 2020 11:21 AM Message:
PS
8 "weeks" is really 8 x 5 days a week = only 40 days. A nice amount for the average Joe, but you are obviously ahead of that game.
You are spending your days (your life) making someone else rich. Time to make YOU rich. You have the skills.
BRAD --73.102.xxx.xxx |
Older LL advice to middle (by myob [GA]) Posted on: Sep 28, 2020 1:26 PM Message:
nice calculation: so you get 2 months of pay for not working. Someone is paying for your insurance? How much is that saving you?
Sounds like you are making someone else make or keep you rich.
Yea it would be tough to give up those golden handcuffs for 7 years/ 6 years. --99.103.xxx.xxx |
Older LL advice to middle (by JAC [OH]) Posted on: Sep 28, 2020 2:01 PM Message:
If the current actions on health care continue you will be paying premiums much more than the rate of inflation with less benefits. You will probably need 2-3 properties to cover that expense alone. Ally hasn't rump promised a health care plan 5 times this year alone? So far the only executive order I have seen that addressed prices is the latest which caps the cost of insulin (one drug) for Medicare. Maybe a government run health care might work after all? --50.5.xxx.xx |
Older LL advice to middle (by Landlord ofthe Flies [TX]) Posted on: Sep 28, 2020 3:45 PM Message:
Yes, keep buying. If you don't want to increase your inventory then when the new house enters the portfolio, sell off your worst one and keep churning until you have the best portfolio possible. --108.69.xxx.xxx |
Older LL advice to middle (by PG [SC]) Posted on: Sep 28, 2020 10:28 PM Message:
W2 with some possible security or LL?
Technology is changing so fast the W2 job security you think you have may go away. Automation is happening a lot quicker than most people think. With most W2s, except the cushy gov gig, you have no control, especially for salaried employees here today laid off tomorrow. Now maybe your job is the exception.
Not much value in new vehicles. Buy what you want and don't worry to much about the cost.???
Most of the millionaires I know are very value conscience. Wealth can easily slip away.
Make a very detailed list of the pros and cons of the W2 and the LL job. Not just the financials but the relationships you have with your W2 coworkers, because when you leave a lot of the personal relationships goes away.
I know you are a sharp guy - seek advice - develop a personal plan for you and your FAMILY. If the personal plan is well developed the financial plan should fall in place. --184.63.xxx.xx |
Older LL advice to middle (by Dee Ann [WI]) Posted on: Sep 29, 2020 12:18 AM Message:
Hey Jason, you don't happen to work for UPS do you? Sounds like their insurance, pd vacation, benefit pkg. Congrats on the great wealth and security you've built up so far!
My niece, 26 at the time, wanted my advice about she and her boyfriend (now husband) investing in 3 duplexes in her town. She owned a dental practice and he worked in one. They love to travel, donate time to good causes, visit family often and stay busy. I told her not to invest in those duplexes because it will take over your life. I told her to find something not so hands on. Not that we haven't enjoyed the last 40 years in real estate with duplexes. But to find a more passive way. They found and bought farmland, on which they also live, and rent it out to farmers. They bought it with all the farmland already rented. The former owner rents a building on the land for his business from them. That was the perfect way to buy into real estate for them. Time for everything they love to do and have a family someday and build some wealth. With real estate, there are many ways to parlay it into the life you want. Are you happy being as busy as you are with what you're doing in real estate as well as your job? My husband is having a hard time leaving his full time job with the benefits, insurance and 8 weeks vacation.
If you want more time to slow down or spend with family, you might want to move some of you real estate into more passive real estate. You're young, but youth only comes once...
--75.11.xx.xx |
Older LL advice to middle (by Bri76 [VA]) Posted on: Sep 29, 2020 1:18 PM Message:
Congrats on your success! I'm in a somewhat similar situation... 43, married, two kids (9 and 3). We've accumulated about 2.75 million in net worth through a combination of real estate, savings, retirement. But you are kicking our butt at 4 million - LOL!
We are also contemplating leaving the 9-5 within the next 1-2 years. We've already shopped around for acquiring health insurance out of pocket and like other posters have said it's honestly about 1-2 properties to cover for a family of four.
Wife and I are also planning a major travel vacation with the kids and going on a 5-6 week exploration of several National Parks out West.
Set out your goals and then go for it! --50.201.xx.xxx |
Older LL advice to middle (by RichE [IL]) Posted on: Sep 29, 2020 2:04 PM Message:
Time to find a purpose bigger and beyond yourself and start working to leave a legacy. --67.186.xxx.xxx |
Older LL advice to middle (by Jason [MI]) Posted on: Sep 29, 2020 9:34 PM Message:
Thanks for all the posts. I enjoy reading this stuff.. I am not a guy that talks about this stuff to family an friend's. I dont want to seem like i am bragging or anything. You guys are more like me an seem to think same as me.. I do have a government job so it is stable. It is like you work your butt off, put your 8 hours in at day job... Then go work on a rental till 2 or 3 in morning.. Go to bed an repeat.. Those days are over for me. Was fine in my 20s an 30s cause i wanted to be well off.. I wanted to be a millionaire at 30. Now that i got there it is hard to turn off. Funny all my life i set goals but nothing after 40... I have hired a full time handyman so that relieved a lot of time an stress. I think its time to start looking for a less than 40 hour day job that offerd affordable insurance...an keep working less for the government.. Making another million ya would be nice but not going to kill myself to get there.. I love the wealing an dealing of buying houses for me --107.77.xxx.x |
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