The life and times of an Arizona Investor

This will be my personal journal to document my failures and successes during my real estate experiences in Arizona. All stories, thoughts, and successes will be documented..

Tuesday, July 05, 2005

My current plan to retire..

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.
|| Bginvestor, 11:25 AM

5 Comments:

I think when I first started investing, I thought I'd be able to retire within the first year! Haha! I know you're not a beginner, but I'm glad to hear you have set a very realistic goal. I've been investing now for 2 years, and am probably just now starting to see the kind of deals that will help us go for our commercial property.

BTW, what's a twist?
Blogger Trisha#1, at 3:13 PM  
As my friend calls it, its buying a piece of property full price , however, this property has a lot the can be split and built on. So the money is there, if you know how to do the twist! :-)
Blogger Bginvestor, at 3:54 PM  
I think your plan is actually called being a greedy lazy Republican scum. Nothing more sleazy in the world right now that real estate investors, making money off of other peoples stupid idea to pay 4x what its actually worth.
Blogger Sean, at 4:46 PM  
LOL..Thanks for the laugh!

Actually, there is nothing unethical about providing quality housing to buyers..
Blogger Bginvestor, at 8:50 AM  
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Blogger Debt Consolidation Refinance, at 10:22 PM  

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