Using Real Estate to Escape Wage Slavery

[BipolarGrowth]

This is my strategy to stop being a wage slave in a rather foolproof way. I may achieve financial freedom some other way before this gets me there. If not, this will not take horribly long. 
 

If you think this would be something you want to seriously try, I can create a detailed guide here if there’s enough interest. Otherwise I’m always up to give individual advice for people who are serious. 
 

This thread is made with the intention of inspiring someone to start investing in real estate. It’s an amazing tool for building net worth. Many claim that real estate has made the most millionaires in the history of the U.S. compared to any other method, but this data is actually hard to get 100% right. 
 

My business has gone from $60k-$70k total invested to now having a net worth of about $170k in 3 years. I spend about one hour a month working on it now lol. I’ll be 100% financially free in certainly 10 years (age 35) or sooner without investing any further cash from my personal funds and giving it minimal attention compared to other endeavors. 

I’m not making this to brag. These are poverty levels. You deserve more. If you think the numbers I give are good, it’s time to kick it in gear. You need to free yourself from being controlled and limited by a lack of money as far as basic and intermediate needs go. Luxury isn’t very important or helpful unless you want to just amass wealth. But a comfortable upper middle class living with a relatively automated income stream is quite helpful for working on yourself and making the impact you wish to have on humanity. It’s a good balanced life. Not crazy, crazy excess, but you do have comforts. 
 

I’m currently living great spending less than $2k/mo in the U.S. Minimalism and strong, practical personal finance are kick fucking ass. This is so crucial everyone. You could use some credit card sign on bonuses to fund a flight to anywhere in the world for free if you use it on business expenses you’d be buying anyway. There are so many ways to optimize things like this. 

I made this video at the beginning of the journey. I had just put in all of the work and money into my first property. At the time it was a big thing to get started. It was a ~$50k total cash investment between the purchase and all renovations. About exactly 3 years later, I’ve gone from owning one duplex to owning two duplexes and two single family homes with $20k already spent on properties coming from auction that we’ll have possession of in early 2022 and $20k cash in the bank. Our monthly revenue is $4k, and we’ve only invested $60k-$70k total over 3 years. After the next two properties we bought are renovated in early 2022 (4 years from starting), things will just continue to snowball. By the middle of next year, we’ll have ~$1,500 more coming in from this added rent as well as more net worth growth from the renovations. The net worth will likely go up significantly at this point too. 

 

Entrepreneurship is Overrated? 22 Year Old Investor Shares His Experience

 

[Yarco]

What if you've got a renter who just decides not to pay? Even if you do background and credit checks, it can happen. And it seems like the law is tilted to wayyyyy favor the renter. They can basically live rent-free in your house for like 6 months while you go through the proper eviction process from what I've heard. And then on the last day, they might decide to totally trash your place on the way out.

That's my #1 worry that has kept me from getting into real estate. #2 being that I'm not very handy and don't know what to look for, what you describe happening in the video basically.

Once you get to the point that you own multiple properties or an entire apartment building, your risk is more spread out. But it seems like you just have to hope you get lucky and aren't bankrupted by bad tenants not paying for those first couple of properties.

My own home has probably gone up $100k in value this year so yeah, in retrospect I could've just bought another house and held it without renting and have my net worth double. But I would also rely on a renter to be able to pay that second mortgage.

[BipolarGrowth]

4 minutes ago, Yarco said:

What if you've got a renter who just decides not to pay? Even if you do background and credit checks, it can happen. And it seems like the law is tilted to wayyyyy favor the renter. They can basically live rent-free in your house for like 6 months while you go through the proper eviction process from what I've heard. And then on the last day, they might decide to totally trash your place on the way out.

That's my #1 worry that has kept me from getting into real estate. #2 being that I'm not very handy and don't know what to look for, what you describe happening in the video basically.

Once you get to the point that you own multiple properties or an entire apartment building, your risk is more spread out. But it seems like you just have to hope you get lucky and aren't bankrupted by bad tenants not paying for those first couple of properties.

My own home has probably gone up $100k in value this year so yeah, in retrospect I could've just bought another house and held it without renting and have my net worth double. But I would also rely on a renter to be able to pay that second mortgage.

It depends on what kind of market you are in. Even with these risks, we’re talking about one of the safest investments which still has potential for quick growth. My market is ridiculous. It’s not some place you see your property value double, but the margin between rents and costs can be quite high. It’s also one of the best states for landlords. Evictions don’t take long. You could always invest here, but my plan is to expand to an apartment complex. It has enough profit to completely pay for management easily in plenty of places in the country. 

[The0Self]

I plan to start actually caring about this kind of stuff again. Seems it might be wise.

[BipolarGrowth]

34 minutes ago, The0Self said:

I plan to start actually caring about this kind of stuff again. Seems it might be wise.

You can talk nondual shit all day and be awakened or you could be awakened and successful too. The whole reason I’m doing this though is so my consciousness work and YouTube channel can be my full-time activities without needing to control my speech due to an employer or being pushed around by money. I also want to explore my psychic and healing abilities as I think they are my true higher purpose possibly. 

[The0Self]

12 hours ago, BipolarGrowth said:

You can talk nondual shit all day and be awakened or you could be awakened and successful too. The whole reason I’m doing this though is so my consciousness work and YouTube channel can be my full-time activities without needing to control my speech due to an employer or being pushed around by money. I also want to explore my psychic and healing abilities as I think they are my true higher purpose possibly. 

Right on brother! I’ve never been too isolated from a success mindset, though success hasn’t been a high priority for me, but now...it is.

[Consept]

@BipolarGrowth

Good stuff man! I have some cash so to invest so i am looking at property investments, im in the UK so it might be slightly different but theres a lot of potential here as well. Would you recommend buying a not so great property and doing it up to rent? 

Ive also been looking at investing overseas as theres a bit of adventure thrown into it, but that could be a bit tricky. 

[BipolarGrowth]

34 minutes ago, Consept said:

@BipolarGrowth

Good stuff man! I have some cash so to invest so i am looking at property investments, im in the UK so it might be slightly different but theres a lot of potential here as well. Would you recommend buying a not so great property and doing it up to rent? 

Ive also been looking at investing overseas as theres a bit of adventure thrown into it, but that could be a bit tricky. 

Buying and renting is the most fail proof approach. I buy properties at a county (local government) auction which is a collection of properties which have unpaid property taxes. These are usually in rough shape but are extremely cheap. Do a full renovation. Rent it out. Then get a mortgage on the property. Then repeat the process. 
 

Investing out of country can be done, but you have a big advantage to invest where you live or nearby if it is at all feasible for you to start there. 

[IAmReallyImportant]

Seems like a disproportionate high time-consuming project.

[PenguinPablo]

Subbed. I am planning on doing this too. Hope to buy my first rental by end of year

[BipolarGrowth]

A lot can be learned from videos like these. Simply listening to content like this for 30 minutes a day and reading a book or two on residential real estate investing is enough to start. I had the advantage of also working in the industry at a property management company which showed me some of the ropes, but you will not learn until you actually start DOING — it should be your goal to immediately start saving and figuring out a way to buy. 
 

The biggest mistake is never getting started. Then 10 years from now when I’m financially free for investing just $20k when I was 22 you might be stuck in a similar financial position as you are now. Even if it isn’t real estate, please do yourself the favor of figuring a way out of wage slavery. 
 

My strategy is the same as is described in the video except I buy the property outright at auction and get a mortgage after renovation is finished and the property has been rented basically at the refinance stage in the typical BRRRR strategy he describes in the video. 

[BipolarGrowth]

18 hours ago, IAmReallyImportant said:

Seems like a disproportionate high time-consuming project.

I only spend about one hour per month doing this now. It runs itself. If you have another way to make hundreds or thousands of dollars per hour of actual work with little risk, feel free to do that instead. I think you’re picturing this as if it has to be hands on and all the work is done by you. This is not the case. You leverage the efforts of others to build your business. A good business, if the goal is financial freedom, is one that needs little direction from its owner. 

[IAmReallyImportant]

11 minutes ago, BipolarGrowth said:

I only spend about one hour per month doing this now. It runs itself. If you have another way to make hundreds or thousands of dollars per hour of actual work with little risk, feel free to do that instead. I think you’re picturing this as if it has to be hands on and all the work is done by you. This is not the case. You leverage the efforts of others to build your business. A good business, if the goal is financial freedom, is one that needs little direction from its owner. 

So there is a possibility to speed up the process? Because I mentioned time not effort.

There are faster ways also with low risk to become financially independent. 

Edited May 26, 2021 by IAmReallyImportant

[BipolarGrowth]

32 minutes ago, IAmReallyImportant said:

So there is a possibility to speed up the process? Because I mentioned time not effort.

There are faster ways also with low risk to become financially independent. 

I was thinking you were referring to personal time invested instead of total time before financial freedom is created. This is why I mentioned 1 hr/month. I mean you could do this very quickly or very slowly. It depends on many factors. There are certainly faster ways to become financially independent, but as far as a realistic approach with high accessibility and a favorable rate of success, real estate investing can be hard to beat. This is more about creating automated net worth growth over a long-term investment, but it can give individuals in certain situations a path to complete financial freedom in just a few years or sometimes faster. 
 

If all you care about is being completely financially free in six months or a year, then go do something other than real estate investing. The thing is most people with this mindset will have nothing of substance to show in six months or a year of trying to create a rapid growth. Those overnight success stories, in any industry, are usually created by many rare conditions converging to create a strong outlier as a result. Be careful not to fall into the trap of only doing what can give quick results. You can still invest in real estate and try any other short-term success strategies as much as you’d like while the real estate continues to bring you wealth with you having to do very little to maintain it. 

[IAmReallyImportant]

7 minutes ago, BipolarGrowth said:

The thing is most people with this mindset will have nothing of substance to show in six months or a year of trying to create a rapid growth.

There are also realistic ways to achieve this. And in addition I am not talking about being rich in 6 months.

I don't say your approach is lesser. Always depends on the goal. 

[BipolarGrowth]

10 minutes ago, IAmReallyImportant said:

There are also realistic ways to achieve this. And in addition I am not talking about being rich in 6 months.

I don't say your approach is lesser. Always depends on the goal. 

Of course there are realistic ways. I’m not saying you do or do not fit the example I was giving. 
 

If you care to outline your goals in some detail, I could speak on what kind of role real estate could play into that framework and what types of real estate strategies would align most with those goals. The approach should always be tailored to your individual situation. 

[IAmReallyImportant]

11 minutes ago, BipolarGrowth said:

Of course there are realistic ways. I’m not saying you do or do not fit the example I was giving. 

I mean other ways