Climb Ev'ry Mountain
Climb Ev’ry Mountain
Diane’s post shows the enormity of the task ahead; it’s great to say $x million in y years … it’s quite another thing to DO IT. 1,000 unit may BE a business, but Diane will need to think about income to fuel their purchase and maintenance (which may be where another business – this size RE is THE business – comes into it) …
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I’ll admit that if I listened to everything said, I’d never do anything but admire the view from a distance.
Using Adrian’s calculations with my requirement for $8.5M in 6 years, I need more than 200% annual growth of my net worth (which truth be told, may actually be decreasing over the next six months and may already be lower than the $66k he used as my starting point.
Michael Masterson’s “chart” seems to advise that I need to get into a business. Adrian added, in a comment, that it would be, for me, “BIG” business. Oy vey!
I had done some stock and mutual fund investing in the past, so wanted to move “up the ladder” to applying some of the new stuff I was learning from listening to Adrian and reading some of the books he recommended: Real Estate.
My current plan is to move up to 1000 units of multi-family dwellings so that I can get an annual passive income that will feed my annual needs for cash.
- I am learning-by-doing on a single-family property I own (and recently moved from) as well as applying things I learn from the book.
- I have contacted real estate brokers in two states and am currently reviewing properties.
- I am working with an attorney on the lease for the one property as well as a contract for property management services specified by me.
- Next is to find an accountant who specializes in these kinds of deals and who can help me plan for the tax impacts.
It’s a lot to do, but hopefully I will not sink before I swim (maybe tread water a little.) This pool of water is a beautiful lake at the bottom of the mountain. I climbed Mt Fuji once physically; I can climb it again, metaphysically.
However, I may need to rethink how soon I would want to move into a business. I had considered that I will need sidelines of income during this next 6 months (plus, never-ending in fact) to help fund the RE investments as well as current living expenses. If I go with Tim Ferriss’ T4HWW idea, I should sell a product before I produce it. Oy vey!
I think historically that the reason why the US has succeeded so much in the past is that the pioneers (as we call them) who came here were taking big risks, and it is that mentality that leads to success. I actually do know of a product that I believe has a HUGE market, but what I am seeing is that it is being marketed quietly. Is this the product to sell? (Which consumer electronics show did it go to?)
My big concern as I plan these next steps is in spreading myself too thin (trying to climb ev’ry mountain) – working and learning in too many different directions at once. Also, the 200%-plus is set as an annual requirement whereas I think that it will be slow going initially and then the percent will need to go more like 5000%-plus eventually.
Yes, very steep at times, but I believe it grows exponentially, not steadily. My work needs to be steady. I need to plan. Adrian recommended we all create a business plan, and I saw that Debbie did that for her on-line business. Not a rulebook, a guide for starting out, one that will help us think about the different aspects we need to consider when building any business.
So, for now, I am working on my plan and planning my work, and that includes the sidelines for now as well as developing the contacts needed for the RE investing and reviewing the properties (looking for the deals I want) and pursuing financing opportunities.
For me, a major part will be scheduling the things which need to get done, having a clear picture of my goals – long-term, mid-term, and short-term and how each fits into the bigger picture — and working the details with ME being the business of ME. I am working for myself now, and my Life’s Purpose.
I’m not climbing “Ev’ry Mountain” – I will climb those that help me reach a metaphysical Mt Fuji by setting the intermediate plans, then revise as necessary….
Wow, climbed Mt. Fuji? I’m jealous! lol
Congrats on starting your first rental with your own house Diane, we accomplished that same feat this year with our ‘starter home’ and it’s been the most wonderful experience so far. We have terrific tenants who are taking care of the home really well and the whole process was sooo much easier to set up and do than I first expected. Just be picky about the tenants, hehe. It really gets you over the the first land lord jitters, then gives you the confidence to move on the the next one and the next one, etc..! Good luck with everything in your plan!