5 years to Freedom

Almost hit $150k.. onward to next year.. goal is to have networth of $275k by end of 2014.

Bank accepted offer on house at $297,500 . now need to get the money.. off to a slow start.. need money by 1/31/14

Making calls Monday and have one 'possibility;' in the works. once i have the house worked out I can work on how I am going to reach $275k by next year. It requires almost $80k cash saving or investment earnings.

I am off (will feel better I hope next week w news on loans for the house.

Networth attached.

Hi All.

Today I start 'looking for the money' for my house deal.. fingers crossed for 'not crazy rates'.. 6-8 would be IDEAL!! Prayers..

I am also going to start investing some of my cash reserves vs parking them at Barclays (still a good choice but only pays .09% )but I have only 4 years left of my 5 year goal and need some extra 'umph' to reach my $300k cash goal. Any cash I have now will likely be consumed this month with the house downpayment/fees or whatever..so will again be starting from almost zero.

I have $64k parked at Barclays. (some of which is my security deposits/tax escrow so not reflected in networth).. the rest are various emergency funds and savings.

I think I can take $10k of the security deposit escrow and invest it.. also will start investing with my ROTH IRA.. everything else will remain parked

Investing strategy is the Dogs of the Dow approach.. http://dogsofthedow.com.. hoping for 20% and up returns!

Really excited.. and once the house works out will start investing more but now need to conserve as much cash as I can for that big (HUGE) unknown.

Essentially if this approach works and I can get an average of 20% returns.. once I have $150k in the market I am just 4 years off from my $300k.. so need to get cracking on saving (of course once the house clarifies). I am also 10 years away from $929k without further contributions once I have $150k working for me.

What a wild crazy year it has been! I know some of you think my methods are a little crazy and certainly risky . but I set my goal and AM going to reach it.

Hi all,

The BANK ACCEPTED at $297,500. House should firesale at $380k and sell thru a realtor at $410k realistically.

Now I have to FIND THE MONEY.

$297500 is 65% of $419k. Most hard money lenders want 65% loan to value.

Will start making calls next week..It would be awesome if I could get 6-6.5% but I can do up to 8%. if I get 6.5% I will try to keep the loan long term and pay off early.If I get over that interest rate I have to refinance and have to wait 1.5-2 years to refinance but it will be an FHA loan.

Why so willing to take higher rates long term??. I would have to go to an FHA loan on a refinance anyway and wiht FHA mortgage premium I am over what a 7% payment would be anyway.

Prayers for creative financing solutions to appear.

Hi all,

For those following me. the BANK called to ask me about my offer??!! WOW.. I have never had the bank call. This is my offer to 'settle' on my house that is in foreclosure. Sortof buying the house back from the bank (and also taking my ex off it)

I talked to a supervisor this am and had a good talk. he said he would personally submit my offer to 'some committee' and asked me to produce comps and a letter explaining how I came up w the offer. He said he wanted to work this out so it is win win and we are not like in a tennis match batting the ball back and forth. Sounded positive and REASONABLE.. that is all I want.

I had my property manager (also a realtor )pull some awesome low comps and have my accountant whipping something up that shows the banks holding costs if they do not sell to me.. etc

I will submit all proof tommorrow and am praying for good news next week.

Remember I do not have funds yet so if the offer is accepted (maybe WHEN it is accepted). I still need to find funds but for some reason am feeling more positivve with that.

I want to FEEL SETTLED and RELAX in my house.

Prayers. Onward!!

Hi all,

Here are my goals. I know I do not have year end numbers yet. but an anticipating ending 2013 around $145k

Networth Goal for 12/2014- $275,000. This is $135,000 MORE than where I expect to end up this year

$135k is comprised of:

$72,031 debt reduction in homes/3 units w normal payments
$24,000 additional misc savings
$8,800 additional 401k
$3,000 additional ROTH IRA
$27,169 (unknown sources)

Unknowns or mitigating factors
1. unknown if my house will work out or not (buy it from bank)**HUGE UNKNOWN**.. effects everything!
2. current work contract only goes through 6/14

OTHER MISC GOALS
1. fully fund my emergency account by 6/14-$16,000 total
2. $7,500 worth of improvements (vs repairs) to 6 homes

Hi all,

I have decided to hang on to the car until I hear on the short payoff w my house. I am now at $285k. hoping to hear Friday or Monday (fingers and toes crossed) if the bank accepts the offer. If not,. I am hoping for a counter.. Just want to STABILIZE!!

I am letting go of the 2 flat .. it is in foreclosure (I have never mentioned this one before.. was owned by me and ex.. house worth less than what is owed and rents will not pay for it) and I was having an attorney delay the foreclosure. I decided to let it go.. partly because the city wants me to install an egress window ($2k) and partly because I am just sortof 'done' and want to move on and partly because if my house works out. I can only refinance out of whatever hard money loan I get a year AFTER my last foreclosure (2 flat) so need to start that clock ticking. Letting it go means discontinueing attorney involvement.. telling city I am not doing the egress window (giving renter 60 days + to move out) and giving bank the deed back (est 4-6 months process dependent on if I get My house worked out.I can speed it up then if need be)

Started contributing to the 401k today.. 8% scary but only $250 per paychedck reduction (still seems HUGE). I can always change it. Work gives 3%

Reading the 'automatic millionaire' and doing the 'latte challenge".. categorizing all those small things you buy.I spend at least $1.08 a day for diet soda at McDonalds every day and at least $3 for lunch every day (except weekends). need to get food and soda in the house or eliminate that or reduce my costs that is crazy and not super healthy.

upped monthly contribution to emergency fund to $46 a month

and closing my not for profit down (transferring it to another not for profit). VERY sad. mixed feelings but definately the thing to do.

All the updates for right now.

Finishing Christmas today/tomorrow..sending stuff.. buying stuff etc.. wrapping..


Onward guys!

HI All.

Quick question.

I have two cars ..2011 Hyundai Genesis 4.6 (26k miles), 2008 Chevy Tahoe (85k miles)..Both have full warranties up to 100k+ miles.

Tahoe is paid off.
Genesis I owe $18786 which I am paying off at 3.15 interest at $1008 a month (actual payment due is half that. I am making doublepayments..payoff 7/15)

KBB says Genesis is worth $25600 if I sell it myself. instant offer (same website) gave me an offer of $18,900.

I have two cars because one was bought in part for the snow (Tahoe) and because I ran a not for profit which I am closing next month (Tahoe was paid for in part by the not for profit).. I need the Tahoe (4x4) but the Genesis gets better gas mileage.

So.. been kicking myself for a while here having this big expensive non 4 x 4 car.. and these loan payments are high... wanting out of them. I have mixed feelings w selling the Genesis as the Tahoe is older and the Genesis gets so much better gas mileage. I had to use the 4x4 function last week due to snow though. I have been tossing around selling the Genesis for a while and have been hanging out to it in my indecision.

Any thoughts?

I owe $18k on the Genesis. if the house offer goes through I will have more incentive to let it go .. esp if I need cash... jusst wish I did not owe so much on the Genesis!

I plan to keep both long term and keep them well maintained.

Hi all,

using this somewhat as a diary too (hoping to read back on it someday and laugh).

the 'settlement/short payoff' for my house was DECLINED..No counter but they apparently do not always counter offers.

Offer $260k.. house worth at a firesale $380k and I want to live here.

Reoffered $285k today.. fingers crossed.

I will figure out a loan/money ... if it can work out once offer is accepted.. just need to get a number.

I actually got this news yesterday but was very upset. Decline was a HUGE surprise. i was so confident I was nearing the end.. I was super down.

After several years of hell.. 4-5?? I just want things to settle down and calm down and would LOVE To settle into my house..

Fingers crossed and prayers for a good response next week.

I DID ask them to counter if the offer was not sufficient.

Part of why they may have refused was because they upped the value in their system to $380 vs $350

Onward.

House rented.. $25 less rent but uppped the utility allowance so made up for it in full and have room to increase rents every year. Looks long term (hopeful look).. I am now putting together a repair/proactive maintenance plan across the 6 homes so I can budget it in. Only 52 months to go to fully paid off.. just hanging in there.

Reading 'the power of intent' and will post here more.... but has to do with directing your thought to what you want vs what you have.. interesting and I think true..

I shoudl hear on the house this week (my own.. my offer w the bank)..

Gettting excited for the new year

closing my not for profit down too. which is where MOST of my stress comes from.. looking to close/turn over to 2 other not for profits in next 2-3 weeks.. sad.. exciting . relieving.

Hi all,

updates.

We think we have a good renter for the house (remember the insane-foundation-work house).. fingers crossed.. will finalize and likely know tomorrow. they live somewhre else now and have asked to move in Jan 1 . We are saying we have someone else that wants to move in now (which we do) but she is w Section 8 and will likely take a few days etc and will pay less rent and rent is fixed at the low rate for a few years and we have these insane 'inspections' every year so better to take this house out of s8.. Goal was to take 3 of the 6 out of Section 8 anyway. . Anyway I need RENT NOW...

3 units calming down. no new news.. just large expenses last month w tree falling

Put $25 savings from car insurance switch to Allstate into an auto withdrawal into my emergency savings

No news on my house yet (trying to see if bank will take $260k) should know late next week then havve to get money. Zillow says it is worth $433k..PRAYERS

Also I have my security deposits and tax escrow in a essentially zero interest account right now. I am switching over $10k of that into Barclays (.9 interest) to make some money off that large amount.

I do NOT show that on the left as it is technically just money I am holding for taxes or renters... not mine.

Hoping to have SUPER AWESOME news soon on the renter and my own house.

take care guys. Onward!

Net worth update.

Still tryiing to stabilize.. hoping to hear from bank next week on if they accepted my offer of $260,000 for the house and then I need to get the money. Once I stabilize w the house my goal is going to be saving and investing as much as I can.. kick my advisoring part time work into high gear. I am VERY light on retirement savings and this morning kicking myself major big time because of it but still proud I am back in the game (restarted 401k, roth this year) and other savings but really where would I have been had I not done that (wiht encouragement from this group). Was I am in la la land or what. Seeing that networthiq website really motivated me (and made me feel sortof bad) .. LOTS of people with $500k= in retirement accounts. I figured it out last night.

At 20%, $500k turns into over a million in 5 years.. but starting with $10ok (no contributions) i t takes 15 .

"this too shall pass"

PRAYING to stabilize and figure out this house thing or not.. very stressful to not know.

Networth attached. No big change which I guess is 'good' becaause I spent $12k + in extras and still managed to stay almost even but need more LIQUID cash!!

Hi guys.

Thanks to a tip by 'Jenn' (and check out her blog.. very neat stuff). I went to networth.iq and WOW.. what a wealth of information. advice and tips.

I suggest you look at it your self.. you can see others networth by age, income, all sorts of stuff .. see 'where' their net worth is.. VERY INTERESTING STUFF

What popped out at me (Miss making real estate income my main goal) is that I was more impressed w folks who had the bulk of their networth in saviings and investments vs equity in homes or rentals. I feel the same way even though my net worth is lopsided that way right now.

What was motivating was some people who had $375k net worth (again these were primarily stock/investment/retirement plan based networth folks) kicked it up to OVER a million in 5-6 years..so the time frame does not have to be long.. just keep learning and chipping away

After this house (my own) settles in some way I will focus primarily on stock based investing. already have a strategy.. so building up ROTH/IRA and general cash and investments is the goal once the house settles in some way.. either I buy or whatever... still $12k short on my emergency fund but feeling in general good today. Need to kick my side job into gear hear at some point.

This forum has HELPED SO MUCH keep me accountable and moving forward. Hope it has helped you guys as much as me. I have increased my savings, cut costs, started 401k, and roth just this year (after the 'downfall'.. haha)

About to save $1600/year on insurance costs among the 6 homes, 3 units by switching to Allstate. WOW!

I feel I am on the UP hill swing again.

Have a good day guys.. keep saving.. whittling away debt but invest too..

I am 43 and make $110k

per

http://cgi.money.cnn.com/tools/networth_ageincome/index.html

Median net worth for my age $53k

Hi all.

Updates

Not out of the wood yet and PRAYING to stabilize.

HOMES
1. got a good prospective tenant for the house.. should know today or tomorrow if Section 8 approved
2. Foundation guy did SHOCKINGLY awesome work.. house looks strong stable.. very pleased ($12k worth of pleased)

3 units
1. tree is off the roof ($500) + $1000 worth of damage.. upsetting but done! I have room here to raise rents and it runs very well.. just a hiccup.. I like my property manager!

SHORT REFINANCE-sad news
1. short refinance for $302k fell through. new FHA laws say there is a 3 year waiting period to refinance after a foreclosure... EVEN if you bankrupted out of the homes.. (why did the loan people not tell me this upfront) one of my past homes is still in forclosure and has no sold yet. Expected sale within 6 months. Loan cancelled
2. potential good news. bank agreed via phone (will have in writing next week) that they will STILL take $265k for the house (house worth $400)
3. The difference between my loan from the refi firm ($302k) and the banks acceptance reflects the upfront profit the refi firm was going to take. So if I can get the funds I will actually come out ahead! WAY AHEAD

Now I can (once bank puts acceptance in writing) buy the house for $265k but (due to above) can not get a bank loan (FHA or conventional). I have made several calls and hard money in Illinois on owner occupied residences is hard to get.. very hard.. have not and will not give up.. once acceptance is in writing will approach creative lenders and friends

I CAN buy within a year of the last sale and already fit (credit score etc) the criteria for an FHA loan expect the waiting period. Talked to brokers already

My 2 flat in foreclosure (owned w ex) I can get rid of within 6 months

I am able to pay 2 points and 5-8 percent for a loan for up to 2 years

If you have idea for hard money lenders or finance firms.. let me know.

House worth $400k (firesale), 700 credit score.. can prove income.

I want the home because it is a good deal and I want to settle long term

Put $1500 in the Roth IRA today!
Took entire $12k out of savings so savings down.. but retained entire homes/units emergency fund

PRAYERS the house rents this week!

Been reading Rich Dad Poor Dad and getting more ideas

I need to invest more, get the 6 homes/3 units cash flowing more and cut unnece expenses and make more money

I am 43 and want to be able to quit work in 5 years!

HI all,

I am struggling here.

Good news

1. house foundation work will be complete tomorrow (that was the update Saturday) we just had a massive storm though.. PRAYING HOUSE IS OK
2. looking good for a renter in this place next week
3. also looks good to rent the garage separately.. means an extra #100 a month
4.short refinance is looking better.. not for sure yet but looking better.. (scary times). appraisal Thursday (should pass) and then I have to pay 3 trial payments in a lump sum(see below bad news) and then it goes to the underwriter for final approval and close date

BAD NEWS (keeps coming)

**I am feeling INCREDIBLY SHORT OF MONEY**

1. still have to come up with the $6k (rest of payment) for the foundation work
2. short refinance requires 3 trial payments.. 2 upfront $6k and one certified check brought to close
3.short refinance also rquires $11k 'buyer contribution'
4. a TREE fell across the 3 units. I have owned them less than 3 weeks and a tree falls on them?? crazy...They are insured but my deductible is $5k (more standard on rental polices).. looks like that
did not pay off.. so more money but talking to the manager and looks like here are the costs (1) remove tree (2) check roof and fix small crack in drywall (hoping there is no major roof damage!!.. roof new as of 2008). I am seeing the damage tomorrow..

Just keeps coming. I need to have these extra costs stop! and get some extra income and stabilize..

Too much money to have to come up with in such a short time frame... essentially $26k.. if you look I have only $30k savings....scary.. need to stop the bleeding

talked to my accountant yesterday (pre-tree falling) and I was feeling stressed then with the short refinance money requirements and he said (paraphrasing) you are trying to set yourself up in 5 years to retire.. it is going to be hard and you are going to be short.. just hang in there.

Vote of confidence felt good but SCARY TIME right now

need the rental filld and no more large expenses and to 'settle' and start saving again.

Crazy

A friend owes me $5750.. hopig praying he comes through soon

Someone else owes me $5k.. asking for that too

and with the closing of the not for profit business.. I should get $8-11k..

Prayers!.. (looking around for stuff to sell now)

hi all,

Quick question.

1. Do I do the short refinance on my house or let it go? All responses welcomed.

FACTS
1. I can do a short refinance on my house for $302k, initial rate of 6.75%, payment $3200. $11,000 down
2. I can immediately refinance this (already checked) to 3.65%, $2400 a month
4. house worth $400-$410k
5. I have already filed for BK Chapter7 years ago so the house is off my credit report. If I 'let it go' it will be sold by the bank but have no impact on my credit. I have 2 years for that to occur but it will be stressful on me.

PROS of SHORT REFINANCE
1. no stress of not knowing how long I have the house
2. good deal on house
3. I need to live somewhere. I am not going to find somewhere for this much in the area I live in and rates may go up and I will have to have a significant down payment
4. house has been well maintained .. new roof, furnace etc and is 'known'
5. maybe get some house value appreciation as homes go up again
6. excitement of being able to 'live in the house' again. I feel like a boarder now and do not do much to fix it up etc. I guess thinking of having 'a' house or 'this house' fills me with excitmeent and joy. I have lived with instability for so long

CONS
1. I will significantly cut into my ability to save with picking up a house payment now if I do not increase my income to make up for this extra expense. I had not planned for one for 2 years more
2. Cut into savings now with the $11,000
3. I have a LOT in the air and things are stressful right now (one house not rented, just put $12k into a rental and =the 6 homes and 3 units are new to me still,though fully managed)

Mitigating factors. I can likely pick up extra cash with my side work to offset part of the cost. $1-2k). I expect an uptick in energy etc and joy witih being 'settled'

Thoughts guys?

My heart goes with the house (and my accountant says it makes sense). My fear is that I am feeling unstable now.. though we have 4 showings for the house this week. If hte house was rented and I have more savings I would feel much more at ease

Hi all,

I think it is going to be fun to read back on this all (later)..so writing whenever I can to document the journey.

VERY BAD NEWS.
The excitement I felt with filling my vacancy?? VERY short lived.. an hour. Section 8 came out.. inspected and said the they would not take the house into the program. This is after the house being in the program for the past 10+ years. Guy said the walls were bowing in on one side. The house in on a hill. I drove out the next day to look and they were. I was told there were water issues and some bowing on the purchase but was also told they were stabilized (cringing.. pls no 'I told you so' or negative comments). Anyway.. turns out they were not stabilized. I got some quotes.. talked to several people and in short it will cost $12,000 to rebuild half a wall and put inside walls for the other two walls, put new center piers and regrade the whole yard and regrade the house next door (which I own). The house next door will cost $5100 to put an inside wall in there. I iwll do that next year or so. All this will be guaranteed by a long time contractor so I feel good it will be fixed for good and not come up again.

So...(stressed look).. the works starts Thursday..should be done by Friday next week. Have a potential renter we are screening now (non section 8). If she works great. if not we will open it up to Section 8 and non Section 8 after the fix. I need it filled asap. Bad time of year to rent property.. Upsetting!

Expensive lesson. GET a GOOD INSPECTOR!!! and evaluate all potential water/foundational issues thoroughly!

That said, I am relieved this is just to the 'expense category' now. but a large one

I am also relieved I had my $8,000 large expense, 6 homes fund which I will fully use up with this and need to rebuild ASAP

So. I need to come up with $4,000 in the next week (after the $8k) and it will come out of savings

**I did check the rest of the homes and the 3 units and no looming foundational/water issues**

POTENTIAL GOOD NEWS

Bank accepted the offer for the 'short refinance'. I have to formally apply for the loan now (will happen today) but if my income is as I said it was on the phone and everything else is hte same (and it is) the loan should go through. But will be nervous until it is 'approved' (week or so?0

I need to come up with $11,000 'buyer contribution' in 30 days and the INTEREST RATE IS 6.75!! I can refinance (and will) but will have at least 1 month or two (maybe more) of large payments at that rate. I will look into refinances after I am approved (but before I close) so the new refinance to lower rate can go as quickly as possible.

However.. loan appears to be low enough that I will already have 20% in. This is a niche loan and only one company does them so they dictate rates, feees, how it works but again no prepay penalty so I can refinance and need too. Payment is HIGH>

So. all in all this year is one of 'closing doors' and 'reopening others' and getting my financial house stabilized and on the right track. I am also closing my not for profit in these next 60 days.

Those who have read some know that I have had a rough 4-5 years prior and am just coming out of that to rebuild. I have a 5 year plan that is more risky up front but less as it gets further along. I am 6 months into that and hitting a BIG hiccup right now.

My plan right now is to 'gather this $20+k' for the foundation and short refinance, establish a tighter plan for the rentals ( I meet with both managers this week, save and EARN as much as I can and rebuild that savings immediately. I can not go with out a fully funded emergency fund and large expense fund across the homes and 3 units. I want to STABILIZE right now and get things under control.. too many balls in the air.

More later.. just unloading and catching folks up.

Thanks for reading.

After a stressful 3 weeks here... we filled my vacancy in the 6 homes.

Rent is $75 less but with winter and holidays coming we felt it was the thing to do. If we did not find someone soon it might be weeks with the snow and holidays.. And it is a good potentially long term renter.

Also we separated out the 3 car wide garage as of this month so are looking to rent that separately for $100-150 either to the current (new) tenant or to someone else. Garage has own access. This may make up some or all of the loss in rent.

Also switching landlords policies to Allstate for some good savings... not all quotes in but estimating $700/year across the 6 homes.

We will go around in the next 45 days and put all the 6 homes on new leases that end in Spring or other times besides the winter.

Feel good we got this filled!! YAY

I have a property manager and we are still getting used to each other. good to learn how we work together.

Hi guys

Networth update.. $132,611. I am 43 and trying to rebuild as fast as I can..

I buy the 2 3-units TOMMORROW!! scary/exciting stuff

If my plan works (got almost 5 years to go) I will have $5500 cash flow from the rentals in 5 years..

No word on my own house (the short refinance. I need to clarify that ASAP).

Paid off the warranty this month. Still paying extra on the car but want to get that paid down ASAP.

Fully funded 6 homes large expense fund and moved to interest bearing account

$4000 total in emergency fund (need $15,000)

Cut auto insurance (yesterday) by $480 a year

Re quoting 6 homes and then the 3 units to see if I can lower them.

If hte house works out (where I live) I will get $400 offset on the policy cost because of multi line

Here we go

HI all.

I completed setting up my 6 homes emergency fund and my emergency fund into a Barclays account earning .9 interest.. so feel good.

Now looking to pay off the car FASSST .. was looking into selling excess stuff on Craigs List..and seeing if I can get some extra income. Car loan is now $20k at 3.15%. I currently make double payments $1008 a month which is crazy to have such a high bill in a month. If I can get another $1000 a month I can have it paid off in 10 months.

I did animal communication and behavior work on the side which I really enjoy. I did an event 2 weeks ago and made $440 and it was fun..

Goals thsi week:
1. scan house for things to sell (so far ellipical, tahoe seats, cage banks, other stuff.. do small things sell on Craigs list too (like under $10)???.. too cold for a garage sale

2. finish up draft for website for the above animal behavior/communication work and starting taking clients. I charge $120-150 an hour (but people can do less than an hour) so potentially I could reach $1000 a month on that. I did more than that before. It would be great to feel less burdened with monthly payments. HUGE.

I am also eating IN more and watching my money so feeling good.

and this month will be my first 'sweep' where I sweep available cash/coins into my account or savings? (unclear).. maybe into my account and then deposit into online savings or towards the car

QUestion.

I have a warranty (owed $1650, 0% interest) and the car $20k, 3.x%).. Which should I knock out first? I think Dave Ramsey would say the warranty just to get it out of the way then apply that money to the car?

THoughts?

Thanks guys.

Hi all,

I so like this site!!

K I am working on my emergency funds. Also thought I should start a Christmas fund and other funds (working out what I need to save for.. vacation sounds like a good fund to have) but I do not want to put them in the bank at 0% (especially the emergency funds which are larger and more long term). Any thoughts on where to park them for 'some interest' but still fairly accessible?

and love the autowithdrawal to savings ideas that some of you have.

Hi all,

Lots of questions on the 6 homes deal.

Here are the details.

I bought 6 homes as a 'package' from one guy 4/26/2013. . He was a senior real estate investor who had 'made his money' and just wanted out and was moving to Las Vegas. I used an 'old time' realtor who knew the town and headed up the Landlord Association. He was very well known in town and 'knew everyone'. All homes were rented. 4 had renters who had lived there 7 years or more. 2 homes had renters who were a year old (rental status). Seller owned these homes for 12 years. One home was fully rehabbed (fire years ago). Homes were maintained reasonably well. All homes were Section 8 and are in working class areas. Homes are approximately 1000-1400 square feet. Most have basements.

Purchase price $275k
I put down $30k
SELLER CARRIED the loan (agreement for deed) .. $245k at 3.15% over 5 years (the loan will be fully paid off in 5 years)

I am not able to pull out any cash flow on these in the first 5 years in order to meet the short amoritization. In fact (per chart below).. I may have to put in up to $1000 a month. *I have the income to do this** Currently I have to put in less than $1000/month

Safeguards built in the deal

1. If I default I have 60 days to cure. If I do not/can not cure,. seller can only take the homes back.. no recourse against me personally
2. I worked in the deal that I can pull out 'fully paid off deeds' every 14 months . So in another 8 months I will get a deed to one of the homes and can sell it or do with it as I please at will and it will NOT be encumbered by any debt. If I default. the seller can NOT take these homes (that were pulled out) back. I am 6 months into this deal already.
3. Section 8 gives me some more confidence with rent (thought it comes with pitfalls too)
4. I retained a local management company who runs all 6 homes for me
5. I have placed $6,000 in escrow for large repairs not to be used (this is based on reviewing prospective large costs, roof, water heater etc and the current shape of the homes)

My plans with the homes

1. Remove 3 homes from Section 8 as they come up and folks move out. Section 8 has a rent freeze and homes can attract non S8 renters. We are removing one now -in process
2. Separate out the 3.5 car wide garage and rent it separately (in progress). I get no rent for this garage currently and it not used.
3. Baseline costs and get maintenance repairs slimmed down as much as I can
4. Hang on. This will be tight and scary the first few years.

Chart below.

Hi all,

Continuing to get motivated by this forum.

I am considering opening a ROth IRA.. Any suggestions as to where to open it (online preferred,, low fees.. good options) and investment options. I believe these can go 'self directed' as well. I use to have Sharebuilder account.

Limit is $5500 for the year but I can contribute up til 4/15/2014.. so I may wait until I hear back from my accountant friend or year end so I can determine if I have any income phase out.

So fun to read other peoples successes and results.

Anyone here invest in tax deeds??

Hi all. I feel so much better reading these blogs and hearing from REAL people with real ideas, answer and situations. Need to blog/read regularly.

Ok here. is mine.

Attorney called.. 3 units close 11/1. Scary. These I am taking on a 7 year term and will try to pay off in 5 (*will need a $69k 10/2018 payment to do so)... otherwise will keep on the 7 year term,

Whole plan calls to sacrifice now.. have income later.. (goal is to create $8k monthly rental income by the end of 2018) so these will NOT add any income now. My plan is scary to me but I have worked with people and made it as safe as I can.. These are the last homes I will take on an extremely short amortization. Anything else will produce cash flow now.. but will let these settle for a while and get under control before taking anything else on. I am retaining the existing property manager so any hiccups should be 'less'.

Did my networth and here it is... I used to have $125k in a 401k so feeling a little bad but feels GREAT to start and do it right/safer this time. I want to build up my cash so my networth is more cash or accounts vs real estate and will gradually trend towards that.


Value in 6 homes $52,802.51
Value in 3 units $5,000.00
Savings $83,160.15
Emergency Savings $4,000.00 (added $2k more!)
401k-3% $135.31 (started as of 10/15)
401k-my own
Net worth $145,097.97

Hi everyone.

Feeling a little down this am. I get this way when I am overwhelmed or 'stuck'. I found the Dave Ramsey book (good easy reading and sound advice) made me feel I am not doing enough. On top of that one of my 6 homes has a vacancy that we are trying to fill for the first but have not 'nailed someone down yet'. Feeling stressed. I do have 3 months 'vacancy built in' across the 6 homes but feels bad to 'use it'. In either case.. also $1200 costs across the 6 homes last month and the fix up on this one (we sortof threw this lady out.. good move though.. just wish it had not happened this time of year).. .. anyway the fix up on this house is probably near $1000 too.. but I am keeping her whole security. Just upsetting.. lots of costs this month.

Anyway.. Dave Ramsey (and folks here) have given me lots of motivation to Track my Money which I am still not doing and to get 'gazelle intense'. I have basically 2 debts .. the car $20k and a warranty on this other car.. proobably less than a $1000. Also building the emergency fund to $16,000 (only have $2k).. and feeling stresed that I still can not log on to that Obamacare website (has anyone been able too.. insane!)

Anyway .. thanks for listening to my rant here a bit. I need to focus on the positive and will see if I can write down some positive things each day or when I am on a 'high'.. so I remember them for later.,

I am wondering if I can pay off the 6 homes, 3 units and a HOME (my house 'short refinance' has not gone thorugh yet though. no definitive word).. in 5 years.. maybe extend the house to 10.. but want to build up more cash. Feel my income is tapped out. I do well but when I worked before (5 years ago). I made $20k more. I work in network project management. Contracts are less now a days and this job I can work at home..

I think I need to destress and relax(have this not for profit that I need to close and it has been weighing up me for literally years (95% of my stress comes from that) and work has been crazy this past month)

Have a great day everyone.

Not sure if these are snowflakes but trying to cut costs here. Feel pretty accomplished.

Discontinue unusued Norton auto renewal. got $21 refund
Discontinued dating subscription.. $59.95 refund
Cancelling auto bill for Planet Fitness, $19.95 month savings- no refund
Cancelled auto bill for Bally's Fitness.. $11/month-

Ballys refunded too. $11.73.. dialing for dollars works!

and $263 refund on credit card processing (run my own small business too.. )and reduced monthly fees on processing by $10

Hi all.I have been motivated (and shamed) by reading all the other blogs here.. lots of people hard at work!. I am going to start tracking money and forming a budget. I have a budget (sortof) except I do not track specifically to it.. but if the house refinance (short refinance goes through) I really need to get tighter and everyone else is escalating their goals.I may as well too.I will start to track as of today and then maybe 'enter' some of the challenges other have posted.. snowflakes (need to get a handle on what those are), 365 day thing and then No Spend Days and Low Spend Days.

This is the current budget including the 2 flat and is a 'rough budget'. I do not include the 6 homes here but will share that as well as how the deal came together for folks who want to know.

Hi all,

I wanted to clarify that before the downfall. I had a (or so I thought) $500k equity across my homes (all fake I know) and $400k cash or cash equivalent mostly in 401k or stocks. All of that was essentially lost and I was driving this 2003 Saab 9-5 (which I loved!) but was breaking all the time.. so the 'change' started for me in 2011 when I settled with all my minor debts ($15k across cards, medical, attorney) and then filed Chapter 7 to protect myself from the homes and constant late pay reporting on my credit while I attempted loan modifications. I then returned to work in 8/2012 and started gathering up what I have now. In June of this year I began my 5 year plan. I had not bought much or done much for ME in from 2009-2011 so the first thing I did when I got my job was to replace the 'on its last legs' Saab and my creaking Ford Expedition. I love cars and love to drive.

I used to go to Dunkin Donuts every day and be afraid my card would not go through. I still feel this fear come up today.

Quick note on current status towards goals

Goals are numbered to the left. My whole plan is based on the idea of 'sow seed/sacrifice' now.. 'reap later'.

1. I have acquired 6 homes in Joliet a few months ago..they are on a 5 year amoritization. Pay off date 5/18. They would net $3500 if paid off now so I will assume they will net that amount then.
I close on a 2 3 units also in Joliet that are on a 7 year amoritization and with $60k will be paid off in full in 5 years. I plan to come up with the $60k 5 years from now to do this. They would net $2300 now if paid off and will assume they will net the same then.

Both sets are fully managed and have an associated budget. I can share that if folks are interested. Both will require between $300-700 cash outlay each month to meet the amortization. In other words. they are negative cash flow and may be through the entire 5 years though we are already raising rents on the 'joliet 6'

**these are the last buildings I will fully amortize over 5 years, though I plan to buy more because I am short of my $8000 target in 5 years. Note my plan is calling for no cash flow now.. all cash flow in 5 years

2. I have $83,000 cash. $45k will go towards the 3 units in 3-4 weeks

3. I have health insurance. Federal exchange

4. I am trying to work out a 'short refinance' on my own home right now w the bank. A 'short refinance' is a special sort of loan like a short sale except YOu keep the house. It wipes out all overages and allows you to buy the house at market rates, market value. House is prob worth $430k. We are negotiating at $350k right now. (fingers and toes crossed and prayers).. Note: this extra expense was not in the 5 year plan right now.. so still working out how to do this so as to not impact the rest. I need to 'plant seeds' now and not take on excessive monthly payments. I would buy the house however as I will have built in equity, it is really nice and it is 'known'. New roof, furnace etc and I know the house.

5. On the 2 sets of homes/buildings alone at current market value (price I paid) I will have $500k equity in 5 years

6. I have 2k in this fund and need $16k. I work on contract and was just extended til June 2014 so will work on this in the next 6 months. I can not take on the home (my own) without this fully funded by then

7. I have properly escrowed the 'Joliet6' as I call them w $6k cash and a monthly $500 allotment. Need to escrow $6k for 3 units by Dec 1. Monthly repair allotment already built in to 'budget'

8. 2008 Tahoe paid off. Genesis on track to pay off 8/2015 at doublepayments but I may delay that.. unclear??


This is the current status. I will update each month. Note if I extend out the 5 year plan..I am short on income (which will translate to that $300k savings) so any more real estate will be bought with the idea of cash flow now . I am also seeking ways to gain more income. I make $110k now at work and have $2k/month coming in from a rental (which I am going to let go.. and will likely lose between 6 months-2 years from now.. to the bank).. currently with an attorney who is attempting to delay the foreclosure suit as long as possible.

HI All. This is my first entry. I have been lurking for a while here but thought writing may help me. I have a serious 5 year goal and am striving as hard as I can towards it.

I lost almost everything about 5 years ago and am basically rebuilding from scratch (scary!!!). I went into a 'slight' depression during that. (haha). Also got divorced, lost 2 homes to foreclosure, lost restaurant, closed other business...I sortof was on the mountain peak and tumbled all.. the... way .. down (very loooong fall) .. on and on. We will just call that period 'the dark years'. I am now up and out and reaching towards my goals.

I work in IT Project Management and have been back to work for a little over a year. I filed for bankruptcy in 2010 to stop the continual bad reporting from the homes and start rebuilding my credit. I do not regret it. All that was discharged were the homes. 2 rental homes were lost. 1 is still hanging in there and I may 'short refinance' my own home. Will know this in the next week or two. My credit score is now 713.

I am concentrating on real estate as my avenue to freedom.. looking at 'monthly income' vs savings. I want to have enough monthly income in 5 years (see my goals) to feel 'safe' and like I have choices. I am in good shape and health so do not feel I will quit working but will certainly enjoy any job I do more knowing I do not 'have to' work.

More tomorrow. First entry.