Real Estate Thoughts

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…]

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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…

In case anyone is new to this blog and wondering, many [click to continue…]

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My Most Important Post Ever

by FI Fighter on August 1, 2017

in Podcast, Real Estate Thoughts, Thoughts

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.

Here is a link to the article.

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?

 

I’d say please go check out the above video.

 

Here is a link to the video, again.

Here is a link to the article, agian.

 

And in summary:

  • 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.

 

Please share this video, article and spread the word!

 

Cheers,

 

Jay

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The path to early FI is paved through owning as many high quality, world class Tier 1 assets as possible!

Continue at Steemit

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When it comes to early financial independence, everyone is always looking for a shortcut to get there. However, in the rare occasions when the market actually does gift us a golden opportunity of a lifetime to help us turbocharge our progress towards the end game, we oftentimes insist on refusing the help and elect to continue reading at Steemit

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I quit my job and retired from engineering at the ripe old age of 31. On the journey towards that end goal, I inevitably made many mistakes along the way. In hindsight, I could have achieved early financial independence even earlier in life and I certainly could have set my future up even better had I focused on making sure I ALWAYS did the continue reading at Steemit

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Having spent essentially an entire year out of the country, you’d be quite right in assuming that the thought of passive income crossed my mind on a regular basis.

Yes, even when I’m out here enjoying some continue reading at Steemit

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When it comes to early financial independence, most everyone who starts on the journey wants to focus on passive income/cash flow. It is understandable why too — When you receive a periodic payment/distribution of income it is psychologically rewarding (you feel all warm and fuzzy inside). Although it is never the case, it essentially feels like you are earning “free” money. And that is precisely the reason why I believe most everyone out there is actively chasing for yield, with little or [click to continue…]

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Hey everyone! Although I arrived back in the Bay Area late last Tuesday (March 14), it took me a bit longer than expected to get settled, so hence the lack of updates as of late…

Anyway, I’m happy to report to you all that I’ve gotten most things squared away and should be back to ranting and raving now! And I assure you, I’ve got a ton of [click to continue…]

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Franco-Nevada

Buy and Hold Forever is by far the most popular and talked about strategy being utilized by the retail investor to reach early FI. It has been repeated ad nauseum across the blogosphere, especially among the most [click to continue…]

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