When it comes to investing, in my heart of hearts, I truly believe that I’m an equal opportunity employer. In others words, I dig both Deep Value Investing as well as Hyper-Growth Investing. Although I don’t always get it right (c’mon give me a break I’m a very flawed human being, after all), I have been fortunate enough in my lifetime to have made “life-changing gains” via both the aforementioned routes.
In short, Deep Value Investing and Hyper-Growth Investing both work!
Real Estate Investing (REI) is a super popular path many folks take when they try to get to early FI. If you buy correctly, sure, you could have a field day and make more gains than you ever dreamed possible. Unfortunately, it isn’t always that easy to [click to continue…]
So, lately I’ve been having lots of epiphanies when it comes to Real Estate Investing (REI), and more than ever before, I’m holding firm in my newfound belief to focus entirely (pretty much) on sticking to Class A/Tier 1 properties.
Naturally, because I made my life-changing gains via Bay Area Class A/Tier 1 rental properties, I always like to use them as an example… But astute readers [click to continue…]
Real life is all about learning from our mistakes, growing/improving, and if we are lucky enough to be able to do so (which I am) share our insights/wisdom/knowledge gained with others. Unfortunately, the problem with the above approach, right off the bat, is admitting to ourselves (and to the world) that we even made a mistake to begin with…
I’ve been blogging since 2012, so you don’t have to tell me twice, and I know full well by now that attempting to be upfront and honest with people is not gonna win you many fans/followers…
For the most part, people aren’t interested in the truth when it comes to early FI… Instead, they want you to feed them a happy fairytale where the entire ride is smooth sailing and there are never any major bumps in the road…
I hate to break it to you, but sometimes, it is very necessary to dwell on and reflect [click to continue…]
To say that it’s been a rough and tumble 2018 so far would be a pretty accurate assessment of how things have been going for me… As readers may recall, I’ve thrown out multiple hints in recent posts about some of the struggles (beyond aggravating frustration) that I’ve been dealing [click to continue…]
On the journey to early FI, there is such a HUGE focus on accumulating wealth and building up our cash flow, net worth (or both) every step of the way… There is absolutely no denying that “money talks”, and for many of us, we won’t have the courage and conviction to walk away for good from our day jobs until we have amassed enough F U money…
When I first started out with real estate investing in 2012, it was during the depths of the bear market (post subprime financial crisis) when investors were still scared shitless and sitting on the fence (for the most part). Naturally, when people are too afraid to buy and there are tons of: foreclosures, short-sales, REOs, etc. it just makes for a very favorable buyer’s market where you can score even the best merchandise for pennies [click to continue…]
I attended a real estate meet up last night… Say what!?! Yup, that’s right, on a whim I decided to join a good buddy of mine and attend a workshop out in Fremont. I’ll admit, being in a classroom environment (after avoiding it for so long) felt kind of weird at first, and as the room started to get filled with more and more people, things just became more and more uncomfortable for me…
Let’s try this again… I recently wrote a post and recorded a video that I posted on Steemit and Youtube, which I feel is the most important two pieces that I’ve ever put out there on the web.
But as you guys know, I’m terrible with marketing and too oftentimes my best work gets lost in the mix with all my other posts…
Anyway, for anyone who is serious about getting to early FI (and I know there are a ton of people who are based on the number of emails, messages I get), please put in the time and watch this video in its full length and entirety.
I don’t pull any punches here and I’m telling it to you guys STRAIGHT UP what works and what doesn’t work.
If anyone was to ask me, “What’s the secret to early FI? How do I get there ASAP?”
Owning the best Tier 1 assets (across all asset classes, don’t discriminate!) is the absolute best, most reliable, most sustainable, and fastest path to early FI. Period.
Tier 1 assets are not always on sale, that’s the dilemma here… Most people think I’m crazy but there is a very good reason why I’m so fixated on precious metals and clean energy stocks right now. Market cycles. Don’t ignore and dismiss Market Cycles; the macro always wins out in the long run. It may not seem obvious, but because I want to buy so many more tier 1 rentals, I’m concentrating 100% of my efforts elsewhere, trying to gobble up tier 1 properties (mineral deposits are properties, don’t hate) across different asset classes that are a hell of a lot more affordable than real estate is right now.
“Buy low and sell high.” Everyone knows it, how many actually do it?
Day 1 cash flow is the most deceiving (misleading) metric newbies focus on when it comes to real estate investing.
Property value appreciation potential is far more important than Day 1 cash flow for long-term success (if a property has massive appreciation potential you will as a byproduct experience massive rent appreciation, which will inevitably churn out that massive cash flow you so desperately seek).
Anyone who thinks property value appreciation is overrated has never thought long and hard about exit strategy. World class tier 1 rental properties never make you feel like you’re trapped in Hotel California… Junk rentals that never go up in value do!
This ain’t rocket science! The best school districts, highest quality and most robust paying jobs environment, beautiful weather, world class amenities/infrastructure, low crime rate, etc. are the ingredients found in world class tier 1 rental properties! No wonder these investments only keep becoming more valuable over time!
Dividend Growth Investing (DGI) >>>> Turnkey Investing. DGI is 100% passive, Turnkey Investing is a pain in the ass. Again, don’t fixate on Day 1 numbers. The best DGI stocks start off at 4% yield but the growth rate will surpass turnkeys in no time so your Yield on Cost (YoC) starts to outperform only after a few years down the road. With turnkeys, properties need to be maintained and you can only defer maintenance for so long before those costs come due. Newbies never factor this into mind when doing their initial Day 1 analysis. 12% cash-on-cash return on Day 1 will NOT be 12% in Year 5 (probably)! A property will NEVER perform as well as on Day 1/Year 1! Dividend growth stocks get better with time, turnkey properties don’t! My biggest investment mistake ever was going out of state and buying turnkey properties.
The “slow and steady” approach is too much work, too many headaches, and does not provide enough “juice” to make it worth the squeeze. Focus on the “low hanging fruit” type of investments that offer a ton of upside potential at relatively low risk. Assets that don’t have the capability to significantly increase their value over the years are a waste of time.
When in doubt, stick to world class tier 1 assets and you won’t go wrong. Early FI beckons for those who are smart enough to not settle for junk.
Quality over quantity. I would rather own a single Bay Area rental property than to go out of state and buy ten properties out in the “hood”.
Speaking of early FI, when I’m out on the beach in the Philippines or the Dominican Republic, the last thing I want to have to deal with is properties and tenants! Tier 1 tenants are the best of the best and will leave you alone for the most part (they are too scared of you raising their rents again). Class A, tier 1 for the win, again and again! Class C tenants will never fear you, in fact you probably need them a lot more than they need you!
Making mistakes, having to jump through hurdles, and dealing with setbacks is all part of the process. Never forget, we are all human beings and constantly learning and evolving. Do your best to learn from the failures, pick yourself up off the ground, and continue to Fight On!
I am willing to share my journey and document all my progress so readers can avoid any pitfalls and learn from my fuck ups that I made along the way. Also, whatever I did that works, you can be sure I will emphasize that non-stop!
Tier 1. Tier 1. Tier1.
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Disclaimer: The opinions and views expressed in this blog are solely that of the author. I am a blogger, not a qualified professional in finance or investing. This site and author are NOT responsible for any losses, damages, or trauma you may incur in your own investing. Always consult with a certified professional before making any financial decisions.
