I know the Title sounds a bit odd, but I have a story to back it up! A few weeks I posted "Going to Closing" and since then I have closed on my first buy and hold deal. I have benefited in so many ways from that deal. I wanted to talk about an idea or a revelation that popped into my head while working a 12 hour long night shift. Here is the story.
When I play the game cashflow the goal is to create passive income to cover your living expenses. Every player has a different expense of living and requires a different plan. I was thikning about my companys retirement pension plan versus my own retirement plan. In a nutshell my company (at the time of this writing) will pay $39 per year of service at the time of retirment.
If I retire after 40 years of service I would be paid $1560 a month and I would be 62 years old. Right now the average monthly income is $3680. I have been here for 3 years and I hope that rate would go up with inflation but it probably won't. Instead I am creating my own retirement plan or as I would prefer to think of it as a transition to a full-time Real estate Investor.
I figure that to keep my same standard of living I would need to work for 94 years. Every year I work I get one year of pension which is another $39 a month WHEN I RETIRE! When I closed on my deal it took a month to do the due dilligence. And in that Due Dilligence I worked for about 8 hours prior to close and will have another 100 hours in sweat equity. In return for that 108 hours of work I will recieve $570 of monthly cashflow (retirement money paid now
That $570 of cashflow is equal to 14 years of service. And I did that 14 years of service in 108 hours.
That is the power of investing. It is exponential. If I can buy a property every month and each property has $200 of cashflow or 5 years of service, I can be retired (or transition) in 16 months.
Quad City Real Estate Investors Association
Here is the proof of getting a loan to buy a deal with a 585 Credit Score.
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