AndyBillyFI

Business

[AndyBillyFI @AndyBillyions]

Instead of using the $100k to buy a house it would be a much better use of his first $100k to buy a cash flowing commercial property. I bought a storage facility for $525k. I put $105k down. In less than two years of owning it it was making $7,000/month in cash flow which is basically his current salary. Buying a house only increases his expenses it does not help him get ahead.

[Percy @percyishim]

Dave Ramsey responds to a 22-year-old graduate earning $88,000 a year while still living with his parents and saving aggressively.

“I graduated from college last June and landed a job paying $88,000 a year. I still live with my parents, and with my current budget, I should be able to save $100,000 by the end of next year.”

“I’m trying to figure out if I should move out now or keep saving longer so I can make a bigger down payment on a house.”

[StripMallGuy @realEstateTrent]

Owning retail property is just like owning multifamily, except:

•Less management
•Less tenant turnover
•Tenants pay on time
•Fewer sharks competing for deals
•Far less new supply
•NNN Leases
•No rent control
•Tenants invest in your property
•Higher yields…

[AndyBillyFI @AndyBillyions]

You need to know your market. If you're doing storage facilities. You need to know everything you can about every facility in your area. Look up every facilities website. Facilities without websites are excellent value add opportunities. Means they are probably owned by someone who may be wanting to retire soon or are not sophisticated. Call everyone and get to know the unit mixes, market rates, etc. Call the owners. Call brokers. Do Your Research. That $525,000 facility was from a call from the listing broker. I had already put in several years of work in that area so I knew exactly what I was doing. I put in a full priced offer within 2 hours of the call from the broker. I set myself up to be the guy who gets things done. The broker called me first, it never even hit the MLS. The broker made 1 phone call and made at least $15,000 on the deal. Be the guy brokers and sellers want to work with. Once you build your reputation and get a few deals under your belt things start to get very interesting. This is not a get rich quick scheme this takes years of dedication to build. I'm out here everyday doing another deal, making calls, shaking hands, doing the things. It's a lot of fun. It just takes time and effort.

[AndyBillyFI @AndyBillyions]

@RyanBisesi @percyishim Midwest it was a distressed property. Guy died heirs didn't want it management company ran it into the ground.

[AndyBillyFI @AndyBillyions]

@MadMuIIah @Foodie4lifer @percyishim It's not even close. At the end of life the pieces go back into the box and get reshuffle again. As long as there is dirt on the ground there is opportunity.

[AndyBillyFI @AndyBillyions]

@Foodie4lifer @percyishim What do you mean?

[AndyBillyFI @AndyBillyions]

There are definitely different levels and definitions to wealth. 65 retiring from a 9 to 5 with a few million in retirement accounts I would consider wealthy but main stream wealthy. Grinding it out at a 9 to 5 for the duration of the most productive years of life Is the traditional way to become wealthy.

My definition of wealthy is having 100% time and place freedom. No one can tell you when, where, or how you're going to do anything. That's #1 wealth for me. Time is our most valuable and scarce asset we all own. I want to own my time during the most valuable and productive years of my life.

[AndyBillyFI @AndyBillyions]

Ramsey is great for most people but then again most people have no clue and no desire to learn how things actually work. If I were to give blanket advice to the ambitious thinking people it would be to take the main stream financial advice and write down the opposite, dissect it, and research it. If you want to be wealthy you have to have the the mindset and perspective of the wealthy. The wealthiest people didn't get there by working a job investing 15% into mutual funds. No they built businesses and invested everything they could.

[AndyBillyFI @AndyBillyions]

Most people are idiots. Main stream personal finance advice is made for the most incapable lowest IQ people. The best advice is to do the opposite of main stream advice. Work a 9 to 5 and buy ETFs. No! do the opposite. Quit your job and buy businesses. Invest 15% of your income and spend 85%. No! Do the opposite. Invest 85% of your income and spend 15%.

[AndyBillyFI @AndyBillyions]

@realfrugalmogul Once the RVs are electric and can drive themselves I'll definitely travel via RV. FSDEVRV ftw

[AndyBillyFI @AndyBillyions]

If you know how to solve problems and can create value the money isn't as important as you think. There is opportunity everywhere. I personally don't touch residential rentals. The returns are too low and not as fun and interesting as commercial but that is just my preference.

Today I negotiated a multi-unit retail building for nothing down and very low risk on my side. Basically the rents are half of what they should be and month to month and the owner doesn't want to deal with it so I offered to take over the property through a master lease agreement for the amount of the current rent rolls. I will take over all operations of the property and we will split the rent increases 50/50. I have an option to purchase the property once rents are brought to market rate. Once the rents are brought to market the property will be worth significantly more than my purchase option, creating a significant equity position on the backside of the deal with no money down just a bit of work.

[Financial Physics @FinancialPhys]

Perspective

[AndyBillyFI @AndyBillyions]

I did this exact thing when I bought my first house. Lived for free and made a few bucks in cash flow. It's not a bad option but commercial property is typically a better investment in general. If I had it to do over again I would have started in commercial and rented a small apartment but at that age I didn't know any better. I was just excited about being able to buy my first house. I hope he at least rents some rooms out if he does buy a house. Having roommates all the time is not ideal long term. Having hundreds of storage unit tenants long term is great. 😆

[Bishop 🇬🇧 @Ezenegwu]

Getting older, I began to understand her point.

[Financial Physics @FinancialPhys]

Fascinating 🧐

[AndyBillyFI @AndyBillyions]

@SparkingFIRENC @InvestingAddict It's probably going to $45k but this is part of the fun. 😆

[AndyBillyFI @AndyBillyions]

@TiltedF0X @SparkingFIRENC It's not as difficult as you might think. Mostly a change in perspective away from focusing on growing your net worth to fully focusing on increasing your cash flow. Once I committed to focusing strictly on cash flow my net worth naturally increased exponentially.

[AndyBillyFI @AndyBillyions]

@SparkingFIRENC @TiltedF0X Now do $25,000/week and you'll see why increasing your cash flow is so important. 😉

[AndyBillyFI @AndyBillyions]

@BaneThe76451 @aruvinchan What businesses have you started?