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Old 10-07-2017, 08:24 PM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
5,523 posts, read 4,116,974 times
Reputation: 7338

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Quote:
Originally Posted by selhars View Post
Can you say more about :
1) what their pay or salaries were
2) after they bought their first home -- how they paid for their subsequent homes?
(saved money, took equity from the first house to buy the second?)
3) did they get any gifts or inheritances
4) How much were these homes? did the people put in any sweat equity, doing work on the homes themselves?

I'm single, no kids, lived in the DC area, in an apartment and then a home.
I'm just always curious how other singles, buy multiple homes.
I'm not enough of a risk taker I guess. So I don't think it's as easy as some people make it out to be.
I just never felt I had the capital to get a second house.
(and for the last ten years I've made close to six figures, and saved a decent amount. But I also never loved off of 30-40% of my gross just to save more, save more save more, either)

So I just like to hear details of how people did it....

(Also, my definition of retirement means life of leisure, your time is totally your own -- no working for money -- period. No second career, no part- time, no consulting, no 'on call.')
I honestly don't know what they were making. One was a lab technician for Kaiser. Another one was bank auditor where he and a few others would go in and audit banks to see that they were operating legally and not breaking rules.

One house hacked, got great financing as owner occupied and fixed up and raised rents. He then moved out and repeated process. He also learned to network at real estate gatherings, analyze deals and found partners to put up the cash for down payments and rehabs while he did the work and management. People that had money, but not the time or expertise to do it on their own. They would do forced equity on the properties.

Another went in with her cousin but got stuck with the properties when the cousin bailed and wound up working on them herself or hiring work as needed to rehab while working full time. She learned a lot in the process. She was buying in the $25 to $35K and fixing them up and getting about 600 to 900 in rent. She had 16 houses last time I talked to her. She has workers she hires out to do rehabs and acts as GC. She has done things like raised money on lending tree to buy houses, very creative. She lives pretty frugally so she can throw a lot of savings toward houses too.

The third became friends with her and bought on his own and paid her to manage rehabs and property manage. After a while he did well so others asked to invest with him. He used his knowledge and connections to get a 25% stake in any house they got together while they put up all the money to buy and rehab.

I don't think any got inheritances, just value added by fixing up places.

It's not easy, it's work. But the people I've met love the business with a passion.

I go to a real estate meet up where there is 50 to 100 people each month. Out of them 80% are first timers whi never show up again. Only a few stick with it. Many find it's not as easy or glamorous as those TV house flipping shows. I met a guy 23 years old who grew up poor and has 4 kids. He just quit his full time job to do just real estate. He has enough successful projects that people will finance him 100% on any project and they split profits. It was hard work, he had some funny stories about what not to do and he lives super frugal, but I predict by 30 he will be pretty well off.

Full disclosure the bank auditor now puts up a yearly convention for 2 days and invites people he is networked with to come speak on real estate. He makes very little on it, but his network is so extensive that he comes up on opportunities many will not know about. Most of the year he just travels, mostly on a whim. Last I texted him he was in a Thailand airport and decided to go to Viet Nam until he got bored.

The girl went back to work. After almost 2 years of living off rentals she got bored. She was a home body and doesn't like to travel or anything. She was able to get a part time job doing what she used to do but at more money than full time.

The third guy I think is hanging out in the phillipines just relaxing.

I agree on your definition of retirement. Some people like me just eat, go to the gym , just hang out on the internet. I only spend about 4 hours a month managing my property manager. Some people will say I'm not retired because I work the 4 hours per month. Whatever. I like to check my bank accounts to make sure deposits go in. I'm sure others check their stock portfolios or move things around, so that is working too I guess.

You can find videos on Youtube that people make about investing in lower costs areas.
For me it was invest where I make money, but live where I wanted.Not always the same towns.
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Old 10-07-2017, 08:27 PM
 
26,149 posts, read 28,548,775 times
Reputation: 24868
Quote:
Originally Posted by hikernut View Post
Exactly. It's hard to imagine why someone would choose a career they apparently hate so much that all they can think about from day one is how to get out. Maybe his parents forced him down a certain path? I never have seen any explanation of this.
What a lot of people on this board don't seem to get is that some people hate ANYONE telling them how to use their time, what to do, when to do it, meetings that are boring and waste time, etc. They hate the BS and hoop jumping that comes from the overwhelming majority of careers. They want to get in and get out as fast as they can so they can do as they please with their time. But they want that safety net first. Maybe other people with careers don't view this stuff as BS But people like MMM do and they want no part of it. I notice most people in the FI crowd have very little tolerance for bureaucracy and BS of all kinds.

I'll give one example from a friend of mine who's a psychiatrist for the indigent at the county hospital. He spends less than 20% of his time actually seeing patients. The state requires so much paperwork to be filled out that he spends at least 80% of his time (no exaggeration) doing paperwork--doing it so fast that they have software that helps him get it done faster. It's insane. It's not what he thought he'd be doing when he went to medical school to be a psychiatrist. He hates his job. My sister is in healthcare (not a psychiatrist) and she says similar things. My sister recently said to me "When I got into it, I had no idea the field was going to change so much 15 years' time". Lots of careers are just so much BS.

People like my friend and my sister could have adopted a more Mustachian lifestyle and had more options at this point in their lives (both in their late 40s). But they didn't and they don't have that big safely net to fall back on--so they can't walk away--at least not as easily as MMM did.

Last edited by mysticaltyger; 10-07-2017 at 09:36 PM..
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Old 10-07-2017, 08:31 PM
 
26,149 posts, read 28,548,775 times
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Quote:
Originally Posted by reneeh63 View Post
Frankly I think it is extremely anti-society and they really seem to look down on anyone else stupid enough to want to work for the man and be a "wage slave". Whatever.

Maybe the looking down part isn't good (although I think that's your interpretation). But I think the anti-society thing couldn't be more healthy. Over the last decade, I find myself less and less interested in doing things the way mainstream society does them. None of it is set up for our benefit. So many complain about how "the system" is against them, but few actually want to do anything differently.

Last edited by mysticaltyger; 10-07-2017 at 09:37 PM..
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Old 10-07-2017, 08:32 PM
 
26,149 posts, read 28,548,775 times
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Quote:
Originally Posted by reneeh63 View Post
Hmmm...Ramsey must be getting some money from somewhere to make those kinds of statements about load funds...
He definitely is.
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Old 10-07-2017, 08:34 PM
 
Location: Denver CO
21,206 posts, read 11,826,310 times
Reputation: 32223
Quote:
Originally Posted by mysticaltyger View Post
I have read a lot of that blog and I have never seen any of these things mentioned. Would love to have the links to back up these claims.
You'll need to search for them yourself, I'm not interested in giving him any additional clicks. The comments were there but thanks so much for accusing me of lying.
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Old 10-07-2017, 08:35 PM
 
26,149 posts, read 28,548,775 times
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Quote:
Originally Posted by pigeonhole View Post
The graphics of the site MMM ( an old barn in the Far West) are quite enticing, but I find as an European the problematic too American-centered, so not actually relevant to me, save some anecdotical elements. On the other hand I subscribed on
https://www.hobotraveler.com/, Graham is a great guy, has completely the same state of mind/values as most people on this website....
Yes, I agree with you. Hobotraveler is sort of the MMM of the travel world. Same underlying mindset. This is what people are not getting when they pick apart individual examples. I think many aren't really looking for anything different. They just want to do what they've always done.
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Old 10-07-2017, 08:37 PM
 
26,149 posts, read 28,548,775 times
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Quote:
Originally Posted by MikeBear View Post
People sure have a STRANGE idea as to what "retirement" is...

If a retiree does ANYTHING other than sit in his living room watching tv all the time, does that really mean he's not retired? If he volunteers to work at a library or senior center for 10 hours a week, does that mean he's not really retired? If it does a few day trading stock trades every other week, does that mean he's not retired?

Retirement is FAR MORE than a person just sitting on his butt watching birds all day.

What a bunch of crap that people (especially here in the retirement forum) really think retirement means you should just do nothing but lay down and die.
Yes, the Internet Retirement Police always come out in full force whenever a financial independence / early retirement blog is mentioned.

Mr. Money Mustache vs. the Internet Retirement Police
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Old 10-07-2017, 08:40 PM
 
26,149 posts, read 28,548,775 times
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Quote:
Originally Posted by MikeBear View Post
I think his greatest value is waking people up to the possibilities in life! You take the useful info from him that applies (or could apply) to yourself, and just let the rest go. I found his blog in early 2014, and I thank God that I did. I only wish I had found it a couple years sooner.
I wish MMM had existed when I was 18. The chart on the Shockingly Simple Math Behind Early Retirement article surely would have accelerated my Financial Independence date by several years had I known at 18 what I know now.

The Shockingly Simple Math Behind Early Retirement
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Old 10-07-2017, 08:45 PM
 
26,149 posts, read 28,548,775 times
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Quote:
Originally Posted by mathjak107 View Post
so yeah i sill do some work but it is nothing i wouldn't likely volunteer for to do free just because i like teaching and i like the interface with others as well as using some of my time to help advance others . the fact i get paid for doing what i enjoy is a bonus .
Yours is a real life example of what MMM meant when he said, "Work gets better when you don't have to do it for money".
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Old 10-07-2017, 08:48 PM
 
26,149 posts, read 28,548,775 times
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Quote:
Originally Posted by jasperhobbs View Post
For all we know Mr Money Mustache is a 35 year old BSer living in his parents basement
I am the first one to distrust mainstream media, but several mainstream media outlets have interviewed him now and this is simply not the case.
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