Rich on Money

Financial Freedom in the Military through Real Estate

Month: October 2016

Why I Pay Cash for Real Estate

Here’s my background. I paid off my $280k mortgage is six years. $32k of student loan debt in a year. I’ve purchased several rental properties with cash while serving overseas in the military.

Why don’t I use financing? Why cash? How do I afford that? (Rich Uncle? No.)

Real estate is a powerful way to make money. Debt can be a powerful tool. With a chunk of money, let’s say $200,000, you could buy one property with cash.

You could also, with that same money, buy five houses worth $200k each with mortgages and 20% down.

Leverage gets you 4 extra houses!!

Some people find ways to use no money down and buy properties. Some even find a way to take cash out of these deals. These are obviously riskier than cash or 20% down.

Everyone makes the decision to invest in real estate somewhere along this spectrum of risk. There are pros and cons at both ends.

I want to share with you why I’m at one extreme end of the spectrum, and how it’s worked for me.

It’s worked despite the fact that I’ve been serving in the military over the last 16 years, moving every few years, and mostly living overseas (including currently).

Click here to continue reading this guest blog post.

Why I’m reading a Japanese book about tidying up

I just read an AMAZING book written by a 31- year old Japanese woman.  The book happens to be a New York Bestseller.

The author’s name is Marie Kondo, and she’s been obsessed with organizing ever since she was 5 years old.

marie-kondo

I think I have a crush on her.

          Rich, what do you care about organizing?

I’m always looking for better ways to organize my life.

          What’s so special about this particular way?

The book is called The Life-changing magic of tidying up.

marie-kondos-the-magical-art-of-tidying-up
Essentially, it’s about throwing away stuff you don’t use anymore, and then reorganizing your house.

          I do that every few years, big deal!!!

I bet you don’t do it like she does!

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Bringing Structure to Investing in Real Estate

This is Rich, but I didn’t write this post!!  This is my first guest post.  It’s a big deal because I’ve turned down several offers for guest posting on my site.

I met Richelle from www.lifelibertynproperty.com at FINCON16 and was impressed with her professionalism and liked her blog.  We chatted and decided we should guest post on each-other’s blogs.  Both she and her husband had their own real estate portfolios before they met, and now they are an awesome real estate team! It’s a great article.  Enjoy!

Bringing structure to investing in real estate

Understanding your preferences in investing will definitely help clarify your goals and path to success. Simply put, knowing the investing style that best suits your persona can turbocharge your investing because the distractions are removed. Some people refer to this idea as “knowing your lane”.

It is tempting to get caught up in the excitement of investing and the prospect of being in real estate. Often, however, budding investors end up spinning their wheels without gaining any traction. Taking the time to focus on your personal goals and identifying your investing style can be invaluable to your overall consistency and growth.

Real estate investing is similar to role playing

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You Are Not Awesome at Picking Stocks!

To illustrate how un-awesome you are, let me first share how awesome I am.

When I was just getting started out investing in 2001, I put all the money I had, $4,000, into an index fund. I called my bank and said put it in the S&P 500 index. Warren Buffett taught me well.

The savvy salesmen on the other end of the phone who was clearly more experienced than Warren told me I was crazy to invest in that. I could make money twice as fast if I invested in their aggressive growth fund.

NOW I’M AWESOME!!!!!!

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