Financial Independence and Becoming a Millionaire in Just 6 Years
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- Опубликовано: 5 июл 2024
- Episode #530
You DON’T have to spend your entire life chasing financial independence. Play your cards right, and you may not even need a whole decade! With a little hard work and sacrifice, today’s guest became a millionaire (and financially free) in just SIX years!
Welcome back to the “BiggerPockets Money” podcast! After years of “drifting” through life and racking up bad debt, Eric had a moment when he realized he might not be able to rely on his W2 income for as long as he had hoped. Seeing the writing on the wall, he decided to get serious about achieving financial independence-buying rental properties, fixing them up, and eventually flipping them for a huge profit. One “home run” deal catapulted him toward his FI goal and a $1 million net worth!
If you dream of financial freedom but don’t want to spend your whole life getting there, this episode is for you! Eric offers some helpful advice for those who are looking to start their own FIRE journey-including why new investors should buy “grandpa’s house,” how to uncover “rare” real estate deals on the multiple listings service (MLS), and how to get the maximum return on a few years of sacrifice!
Show Notes at:
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00:00 Intro
01:22Millionaire in 6 Years!
03:34 Buying “Grandpa’s House”
09:04 Eric’s BIG Turning Point
15:24 The Journey to $1 Million
19:08 The “Home Run” Rental
31:45 Moving to New Hampshire
33:13 How to Reach FI
36:13 Share Your Money Story!
![Sean Rii, Karyon, Sharzkii - Taungule [My Love] (Official Music Video)](http://i.ytimg.com/vi/eJoMuypbSzQ/mqdefault.jpg)
Don’t be equity rich cash poor. We have $1.5MM in equity in our primary home and 2 rentals that break even and we don’t intend to sell since our parents are living in them. Can’t refinance to cash out since our interest rates are 3% so this equity just sits there and no way to access it. Equity is great but you can’t spend equity and it’s not the same as cash!
This was my story but to clarify, 2/3 or more of the real estate portion is in the rental. It spits off over 24k a year for just my portion after expenses, capex, and my partners 40%. Return on my current equity is about 7% which isn’t bad and the mortgage rate is only 4%. I see that equity producing that cash flow as equal to 600,000 in invested securities (25x the cash flow as an inverse of the 4% rule). That’s much more than the cash value. I can always sell someday and reinvest all of that into a liquid investment but the income is great for now. It pays my current mortgage. Ample reserves too.
PSA to the video editor...that was an odd cut/transition at the 3:32 mark. I've seen this happen in prior videos as well.
Wow, never thought about how in marketing, you have an early "expiration" date in the eyes of the industry...
Same with tech
@@imveryhungry112 if you mean developers, I don't think that's true.
I see a lot of developers that are older. They tend to become team leaders and a source of knowledge for younger developers.
For marketing, I can see how trends can change rapidly to the point where "boomers" wouldn't be able to understand why something is cool to younger audiences.
@@Jerome-iwnl Do you work in government or private sector? Define "older"? Do you mean like 30? Or do you mean 50?
@Jerome-iwnl if your a developer now my biggest advice to you is to start investing a large portion of your income. Man people don't really want to hire a 45 year old developer. You age out. If you turn 40 and you don't have at least a million invested you failed. I'm 42 I wish someone would have told me that earlier.
Be grateful you know ahead of time if whatever industry you're in has an early expiration date.
The way this guy got his first million was really risky. Buying a complicated duplex/office and investing $200k in renovations could have gone very poorly. Happy for him though.
Very true. Its important to remember these are "success stories" not everyones experience.
Eric's strategic approach to achieving financial independence through real estate and eliminating debt is truly inspiring. It’s a proof to how dedication and smart financial practices can dramatically accelerate one's path to financial freedom. 💡
Luck is NOT a STRATEGY 😂 don't count Equity in NET WORTH!!!!!
A financial planner told me saving at least 15% of your income regularly can help ensure that you have enough money to retire comfortably. But how can someone take advantage of compound interest and potentialy grow my monthly income over time
In your work 401k
Great story. "Make moves". No guts no glory
🎶 Get off the pot man, shake and bake
Love your voice Mindy & hosting!❤ & ofcourse Scott!! 😊 u guys are AMAZING DUO
Scotts back!
Great story! I think if he'd consider moving someone lower cost of living he'd be able to go with less wealth, but certainly he lives in HCOL now so that's why 2 million + side income is where he's thinking
❤❤❤
How did this guy get on the show with the statement, "A million dollar isn't gonna cut it. 40K a yr is not enough." 😀. His FIRE card needs to be confiscated.
It's true for places like NY, CA. My fire # is $2.5M because $1M isn't gonna cut it...
@@davisamills597 Then you need to be watching the Suze Orman show. Only 5M to 10M is enough to retire accordingly the her. 😀
No one should have to dream of financial independence. We're going to toss out this "I got mine" system.
Please I need help with an issue. I have a 7 figure ballpark goal and I intend spreading across maybe 50k - 150k on plummeting stocks, my question is how can I know when a market bottom has been reached?
I think investors like you should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid unnecessary losses.
@@traviscyril6641 You have a very good point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 14.3%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an advisor.
@@sheltonPston I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Is it okay if I ask you for a recommendation?
@@virginiameghan4189 I've experimented with a few over the past years, but I've stuck with the popularly ‘’Amber Kay Wright” for about five years now, and her performance has been consistently impressive. She’s well known in her field, you should look her up.
@@sheltonPston Thank you for putting this out, it has really rekindled the fire to my goal... I was able to spot Amber after putting her full name on the web, she seems highly professional with over a decades of experience.
50 😮
Seems like there are more anti Dave Ramsey than pro Dave Ramsey people now days 😂❤
Correct lmao
Dave Ramsey for the win!
There’s a lot of ways to accomplish financial independence, Ramsey sells the Amish version
@@randombandit362 fair point, but I would argue there risk is not worth the squeeze in most cases. I have personally lost enough money being aggressive to realize it’s better to be borrowing and allow my money to grow slower overtime. If you make good money I’m happy for you
how about “how to not a trip without whining about how much i paid for airfare”
There are plenty of people over 50.
This episode needs a good editor.
Mindy is not interviewing this guy or editing is poor
Th only problem I have with your program and the real estate investors, is now it is impossible for young people to buy houses when real estate investors keep buying all the properties in cash and charging astronomical rents. My son is an engineer and is unable to buy a house. It is so sad because most young people will not own a home. That and Biden’s economy and the high interest rate.
A financial planner told me saving at least 15% of your income regularly can help ensure that you have enough money to retire comfortably. But how can someone take advantage of compound interest and potentialy grow my monthly income over time
Yes, a good number of folks are raking in huge six figure gains in this downtrend, but such strategies are mostly executed successfuly by experts.