Outstanding advice! really taking notes here, recently fell in to a w2 career that pays 200k and really want to re-invest my savings and make my money work for me.
Hell yeah on the 3somes lined up! I imagine its some short buxom blond and a sultry brunette hottie lol
The key to financial freedom in any industry is actually very simple and it has nothing to do with how much anyone make. What is more important is how much you spend.
When you first get to working for money you need to avoid the trap of then living off that money. Instead you need to make your money work for you. This method works if you’re making 50k so if you’re making 200k you are in a position to build faster but that only will work if you built the correct foundation. Without experience you will fail it I told you to go buy a 8 unit (apartment buildings become commercial not residential at that unit size as far as lenders are) to a triple net commercial building like a retail store. You need to learn by having a single tenant and learning about the headaches of property management well going from one tenant to 2 to 4 to 8 of a few years.
Make everything 401/ira a Roth
Max you 401k match.
Max out your total contributions to both.
Eventually this money will become your bank when you need to barrow money. Or you can let it sit until your 2/3 the way to death and let the government use your money until then.
Do not have lifestyle creep for 3 years
Or until you’re out of your 20s. Whichever comes last.
Buy a house using an fha 3.5 down payment. This can be anyone, you can probably skip this step and get get a traditional mortgage or immediately target small multifamily properties like a duplex or triplex
Live in it for 6 months to establish it as a primary residence.
Refinance th port to have the right amount of equity. And avoid pmi Cash flow is hard right now. Focused on long term equity built, look in growing markets for newer construction around 400k
When you refinance you want to set your payment to be covered by the renter. So if it rents for 1500 you max payment including prime interest tax and insurance and property management should be max 1250. (If you manage it yourself, pay yourself but account for it regardless)
That leaves you with 250 bucks a month for now, a tax write off, and long term equity gains.
Every 6 months continue to repeat this process and you will
Have 5 homes in 3 years with less than 100k of your earned money tied up.
When you have enough equity in the properties where you can double your investment look to sell via a 1031 exchange. Defer capital gains takes by taking the capital gained of 100k plus to use as a down payment on a 8 unit apartment building.
Take you initial 100k and have a pussy parade.
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