My Most Important Post Ever

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

Print Friendly, PDF & Email
Sharing is Caring:

8
Leave a Reply

avatar
5 Comment authors
Weekend Reading - Where's blue sky edition - TawcanTen Factorial RocksFI FighterMidwestern LandlordJP Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
Investment Hunting
Guest

Great post. I agree on selling high. I also agree that many don’t do it. I laugh whenever I blog about selling off shares. Many commenters freak out that I’m no longer a dividend growth investor. I disagree 100%. I’m capturing gains and putting the extra money back into dividend paying stocks.

JP
Guest
JP

Great article and good bullet points. I purchased 3 Tier 2 rental properties that all became Tier 1. Luck or whatever, but I had a plan!! Boston area real estate has come up so much that I’m planning to condo my 4 family in ’19 and walk away with a quick $900k. I also snagged a vacation rental earlier this year that rents for so much weekly that sketchballs can’t afford it. At one point I toyed with the idea of selling 3 Tier 1 rentals and buying 6+ Tier 72 rentals and I’m really glad I didn’t. Tenants would… Read more »

Midwestern Landlord
Guest
Midwestern Landlord

Excellent post and video Jay. You hit the nail on the head, the name of the game is to buy tier 1 assets on sale. It is ironic that the great buys in the Bay Area that you took advantage of in years past were considered risky by some during that time period but now everyone wants to buy when it is truly risky due to sky high valuations. Precisely why you moved on to commodities. Although some see that as risky now due to the same factors. This human psychology plays over and over again. You mentioned that in… Read more »

Ten Factorial Rocks
Guest

Great video Jay. I especially resonate with Dividend growth stocks – most of the times, if you picked them well, there’s no need to ever sell. The increasing dividend streams can finance a nice early retirement once the portfolio is of a decent size. I find Tier 1 DG companies an even better bet than Tier 1 properties mainly because of totally passive nature. I hope you and your readers find this series interesting: http://tenfactorialrocks.com/investing-series/ I would love to meet you in person in Hong Kong during my next trip. If you have plans to travel to Singapore or India… Read more »

trackback

[…] at FI Fighter wrote His most important post ever. I gotta learn more from this smart […]

Close Menu