Everybody should have a short term, middle term, and long term plan. This is the official long term plan. Subject to change, however, this idea just makes so much sense to me right now, I can almost touch it!
After absorbing numerous conversations with investors about wealth building and REI strategies, I have a path to retire that makes a lot of sense to me and I wanted to share it with you guys.
Goal is to retire in 5-8 years.
To get there is simple. I need cashflow every month, and it needs to come in without me doing anything. This is called retirement!
I have placed a XX number on Cashflow. The number isn't important, because once you understand how much you need , you just go out and do it.
Every successful investor that I've read about always has one thing in common for long term wealth building. Its called apartment buildings! IMHO, apartment buildings are always in successful investor's portfolios. Why is this? Because the cashflow is undeniable.
So, here's how I'm going to get there.
Step 1: Eliminate all debt -I expect my land deal to come through this year, which will allow me to pay off my house and other property investments. When this happens, I'll be completely debt free! I won't owe one dime to anybody. Not having a mortgage will be huge. After that point, I won't be working to survive, I'll be working to invest.
I've already accomplished the goals of being debt free (w/o mortagage) years ago. For those who need assistance to reach this step, I highly recommend Dave Ramsey. www.daveramsey.com Listen to some of his radio shows online and you'll be hooked.
Step2: Create Cashflow through investments - Will I quit my job? Hell no.. I will have my wife work for the next 3-4 years to generate income. I will work at least another4-5 years. Our income to expense ratio will be huge.. We will use this money to make down payments into solid investments.
I will look for apartment buildings that I can increase in value! If I have to do some 5-6 rehabs or 5 twists to create down payments, so be it. With the combination of earned income and buying low, and a given investing time frame of 5-8 years, we should get there.
I'm thinking about one apartment building a year.
Once the goal is reached, I will be officially retired. The pay downs from the mortgages will create more and more equity, so I will become more wealthy as I'm retired.
This plan is simple, effective, and realistic. I'm getting excited already! I'll be focusing on the first mile stone which is to become totally debt free. I'll be testing this strategy with the Kiyosaki's cashflow 101 game.
My first milestone we be when I sell the land deal. I need to cross my fingers that this will happen this year.