Rich on Money

Financial Freedom in the Military through Real Estate

Author: Rich (Page 1 of 3)

Seven Steps to Being a Military Millionaire

It is possible to retire from the military a millionaire.  I know a few people who have done it.

I hit the mark before retirement.  No rich parents, no help, wife didn’t work.

Can the average military member go from being in debt to military millionaire?

We all see websites and books from people who were deep in debt and somehow quickly made millions.

Maybe we should read their books or infomercials and try their methods…

I believe it is hard to duplicate their success.

These gurus get rich off people looking for shortcuts.  Most that try the guru route fail miserably.

It often involves going into lots of debt or paying a lot upfront for a product or a course.

It also requires no common sense

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Debt Pitfalls for Military Members

The military has some unique debt traps that are easy to fall into.

Buying New Cars

One is this whole military car sales thing.

“Let me go talk to my manager!”

You’ve seen them lurking around the BX preying on new enlistees just getting started out in life.

They try to sell you a new car when you are overseas.  They’ll tell you it’s an amazing deal because you are in the military.  They sometimes try to sell it as a military benefit.

It is simply not true. A military benefit is when the US government subsidizes the cost.

Here are examples of actual military benefits:

  • Commissary
  • BX
  • Medical and dental care
  • Space-A Travel
  • Tax-free housing
  • Montgomery GI bill

Here’s an example of what is not a military benefit:

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Real Estate Investing from a Distance

I’ve done it again!

Trying to expand my readership, I’ve asked another friend from the blogger world to let me post on their site.   Mr. 1500 from www.1500days.com is someone I first met at FINCON.  We crossed paths again at Chautauqua attending on separate weeks.  Super-cool guy with a great website.

This post, I give some tips on how to invest in real estate from afar:

Hey.

My name is Rich.

I love real estate.

I grew up in Southern California.  I remember thinking about buying real estate as a kid.  I was twelve years old.  I thought if I could buy a house then, I would be able to sell it when I was eighteen and have enough money for a car!  I was always fascinated by how fast real estate appreciated in certain places, especially near the beach.

Real estate is tricky for me.  I’m in the military, which means I move every two to three years.  Ten of the last sixteen years I’ve been overseas, including currently.

What kind of real estate investor moves every two to three years? 

That will never work!

I’ve found a way to make it work for me.  Over the past three years, I’ve purchased several buy-and-hold rental properties with cash.  The income they provide has made me financially independent.  Most of these purchases have been made from overseas.

Maybe some of my methods could be useful to you.  I’ll summarize my advice in three main points:

Click here to read more…

3 Steps to Retire Early on a Military Salary

This week I did a guest post on one of the most popular military financial independence websites.  This website (www.the-military-guide.com) was started by Doug Nordman.  He retired from the Navy in 2002 and hasn’t worked since.  He currently lives in Hawaii and surfs often when he’s not traveling the world.

Not a bad life.

What he did is what I’m writing about.  Working 20 years (or less), and then retiring, never needing to work again!

Here we go…

BLUF: In college I paid off $32k in student loans in a year. On a military salary I paid off a $280k mortgage in seven years. I’ve bought several rental properties with cash. I did this through paying off debt, having a high savings rate, and investing well.

My name is Rich. I’m an Air Force Lt Col of 16 years. I’m married with 2 young kids.

 

Here is my message:

Don’t work until you’re 65. Not even 55. You can save enough money to retire in 20 years or less. I mean after 20 years of work, NEVER WORK AGAIN (unless you want to). This method doesn’t depend on a military retirement, that’s just a bonus!

I currently make enough money from my investments to live on. I could quit working today, but I’m less than four years from a generous military retirement.

Continue reading…

What should I teach my kids about money?

I love all things money.  My kids often see me reading finance books and browsing real estate blogs.  They hear me talking about money with my wife.  They watch us negotiate deals to buy houses with cash, and they overhear our discussions on retiring early.

I explain what I’m doing with money in simple terms to my kids, but I can’t be sure it’s sinking in.  They are 10 and 6.  It is my job to prepare them to navigate money and life.  I wonder how I’m doing.

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What the Hell is Chautauqua?

In October 2016, I returned from a week in Ecuador. It was a life-changing experience.

          Why would a military guy who lives in Germany fly all the way to Ecuador for a week?

Why of course, to attend a financial independence/retire early (FIRE) retreat hosted by three prominent bloggers!

Jim Collins, father of the world-famous Stock Series, organized this amazing event. There were three different weeks of Chautauquas this year, each hosted by a slightly different cast of famous bloggers.

Chautauquas having been going on for several years now, and seem to be gaining in popularity. These things sell out faster than a Taylor Swift concert!!

On the week I went, it was Jim Collins himself, Paula Pant, and the notorious Mr. Money Mustache.

Kind of awesome for me, as these are the three bloggers I admire most.

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How I Achieved a PERFECT Credit Score!

I’m in the military. People around the office ask me for for financial advice. They know I’m a “money guy” and word gets around that I like talking investing and real estate.

I warn people they won’t like my advice. They usually don’t.

This guy didn’t.

Recently a co-worker told me he’s got $20,000 burning a hole in his pocket, and what I think about investing in the British Pound. With the Brexit, it seems like a sure thing!

I told him this kind of speculation in currency isn’t for everyone. Even those who devote their lives to studying this are wrong more often then right. I warned him this would be a fun way to lose money quickly on something he doesn’t understand. It seemed like he took that to heart.

Guy: “Ok, I got a better idea! What about gold!?!?!?”

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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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