June 2015 Net Worth Update

It’s been a long time coming, but the moment has finally arrived… I am pleased to share with readers that as of this month, I am officially (on paper) a member of the millionaire’s club! 🙂

I just came to this realization about 5 minutes ago (once I finished crunching numbers for this month’s Net Worth report)… Right now, it’s way too early to say how I feel about this accomplishment. If anything, it all just feels surreal…

Ultimately, the main objective of this journey is to reach early financial independence. For the most part, we are all just digging our heads into the sand and working hard towards that underlying goal. In the process, we will achieve small victories here and there, and the milestones start to add up.

Well, today I reached a rather BIG milestone (at least in my book). Sure, $1MM doesn’t buy quite what it used to, but it’s still a major accomplishment for many people out there. So, I won’t try and downplay this special moment… There’s still a lot of work to do, but I think it’s important for us to stop every once in awhile and appreciate what we’ve accomplished along the way.

Without further ado, here are the nitty gritty details for this month:

Net Worth

Here is where my Net Worth stands at the conclusion of June:

Net_Worth_June_2015

Month-Over-Month: (+$97,300.84)

Here is a breakdown of assets:

Net_Worth_June_2015_2

Here is a breakdown of debts:

Net_Worth_June_2015_3

Cash and Credit Cards

I currently have $19,682.00 stashed away in my checking account ($27,014.83 previously). Cash decreased this month as I paid down some bills and additional mortgages to give myself some more breathing room.

I owe $0 in credit card debt.

I have $99,311.62 hidden away for a rainy day, or for future investment opportunities. My emergency fund is now sitting at a level that I am very comfortable with, moving forward into the future. Now that I’ve basically secured my baseline target of $100,000, I believe that I will be able to get back into investing in the very near future. Although I still feel like the markets (as a whole) are overvalued, I now feel comfortable enough with my backup plan to allow myself the confidence to proceed forward. I don’t plan on buying any more real estate, but stocks and other commodities will definitely be on my radar again.

Total: $118,993.62

Month-Over-Month: (+$15,988.67)

Loans

I owe the following loans:

Rental Property #1: $323,777.71
Rental Property #2: $327,308.48
Rental Property #3: $114,226.27
Rental Property #5: $123,326.73

Total: $888,639.19

Month-Over-Month: (+$2,559.27)

Rental Property #4 is owned outright and there is no loan associated with it.

Side Hustle Loans

Rental Property #SH 1 (25%): $387,490.33 ($96,872.58) 
Rental Property #SH 2 (25%): $385,989.96 ($96,497.49) 
Rental Property #SH 3 (50%): $403,331.26 ($201,665.63) 

Total: $1,177,975.74 ($395,035.70) 

Month-Over-Month: (+$582.09)

My portion of the Side Hustle loans are accounted for above. My partnership stake in each property is shown in the ( ).

Investments

I currently own stocks in my taxable brokerage account. My other investments are in 401k and Roth IRA.

Current 401k: $4,956.03
401k: $130,755.79
Roth IRA: $60,422.39
Brokerage: $47,641.48

Total: $243,775.69

Month-Over-Month: (-$19,411.62)

Stocks were down this month which dragged down my 401k and Roth IRA investments. Also, I liquidated my stock positions in Coca-Cola (KO) and Toronto-Dominion Bank (TD) this month, transferring the funds back out into my emergency fund.

I am just about done with liquidating stocks… Right now, I only own the following dividend stocks: Norfolk Southern (NSC), Union Pacific (UNP), and Walmart (WMT). I have about $15,000 allocated into these three positions.

Alibaba (BABA) is still my largest individual position… The stock is in the doghouse right now, so I’m holding out for a better opportunity to sell. Now that I’ve been able to build up my emergency fund to a level that I feel secure with (~$100,000), I’m less inclined (than before) to sell. At this moment in time, I’m not in a rush to liquidate. If I do, I would like to transfer the proceeds back into some income producing assets, instead.

Properties

Here are the values of each property, based on my own estimate:

Rental Property #1: $490,000
Rental Property #2: $490,000
Rental Property #3: $157,500
Rental Property #4: $95,000
Rental Property #5: $180,000

Total: $1,412,500.00

Month-Over-Month: (+$70,000.00)

Properties were reassessed, which explains the large delta experienced this month. In general, I try to be as conservative as possible with my projections. Based on sales comps, Rental Property #1 and Rental Property #2 are probably sitting closer to $510,000. To be on the safe side, I went with $490,000.

For Rental Property #3-5, I elected to stick with the original purchase price. These properties are located in the Midwest, and the neighborhoods I invested in don’t appreciate quite so rapidly as the Bay Area. Again, to err on the side of conservative, I’ve decided it’s best to just stick to the original purchase price.

For properties, I will refrain from updating the values each and every month. Instead, I will review and re-assess quarterly, to allow sufficient time for the market prices to stabilize.

My last reassessment was June 2015. The next property assessment is scheduled for September 2015.

Side Hustle Properties

Rental Property Side Hustle #1 (25%): $550,000 ($137,500)
Rental Property Side Hustle #2 (25%): $580,000 ($145,000)
Rental Property Side Hustle #3 (50%): $520,000 ($260,000)

Total: $1,570,000.00 ($542,500.00)

Month-Over-Month: (+$27,500)

The side hustle properties were also reassessed this month. The latest comp for Rental Property SH #1 recently sold for $630,000 (the buyer grossly overpaid). Rental Property SH #2 could probably sell for about $650,000 in the current market environment. Lastly, the latest comp for Rental Property SH #3 closed escrow at $560,000.

Using conservative figures, I pegged each of the side hustle properties to what I believe is fair market value (not based on irrational exuberance which some recent comps are clearly based off of).

My portion of the Side Hustle equity is accounted for above. My partnership stake in each property is shown in the ( ).

Summary

The total value of all assets now checks in at $2,317,769.31, an increase from last month ($2,223,692.26). I also owe $1,283,674.89.

Well, that will do it! In a span of less than 4 years (since we first embarked on the journey to early FI in February of 2012), I’ve gone from owning 0 properties to having an ownership stake in 8 properties. And in the process, I’ve been able to clear a childhood goal of mine by obtaining a net worth of $1,000,000!

I realize that when it comes to early FI, the name of the game is cash flow and NOT net worth. Nevertheless, it’s a great feeling to be able to build up both important parameters to freedom… Besides, an increasing net worth is never a bad thing! If it holds steady, one can always convert net worth to cash flow…

Thanks to the Fed (low interest rates) and Quantitative Easing, I’ve been able to aggressively buy up properties and stocks over the last few years, and snatch up some bargain bin discounts. Since 2012, stocks and real estate have only continued surging, so I was fortunate to be able to ride that wave all the way back up…

In essence, that’s how I built my net worth and became a millionaire… Buy low… and I did sell some stocks “high”. Along the way, I’ll never deny that luck was a HUGE component in my success. For myself, it was definitely much more luck than brains… So, I’m most thankful for good fortune! 🙂

Now that the first million is out of the way, I guess we continue marching on and set our eyes on the next big target — $2MM! 😉

I’m sort of at a loss for words right now, so I will follow up on this post with a less disjointed one next week.

Happy 4th of July everyone! It’s fitting that I will be celebrating this new milestone on Independence Day!

 

May freedom reign!

 

Fight On!

 

2015 Net Worth Summary:

June 2015: $1,034,094.42

May 2015: $936,793.57

April 2015: $918,867.89

March 2015: $902,184.99

February 2015: $771,405.52

January 2015: $785,811.26

 

2014 Net Worth Summary:

December 2014: $781,996.44

November 2014: $763,680.73

October 2014: $716,124.37

September 2014: $702,618.90

August 2014: $724,476.61

July 2014: $718,780.24

June 2014: $693,514.01

May 2014: $665,115.97

April 2014: $633,456.43

March 2014: $598,435.05

February 2014: $557,154.47

January 2014: $586,137.08

 

2013 Net Worth Summary:

December 2013: $569,022.97

November 2013: $542,725.46

October 2013: $527,010.49

September 2013: $444,860.79

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Early FI – 2017 ThoughtsSetting Goals… What’s That? (July 29, 2016)I Quit My Job – The Next Chapter Begins NOWJuly 2015 Net Worth UpdatePart 1: How I Became a Millionaire at Age 30 Recent comment authors
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Roadmap2Retire
Guest

A HUGE CONGRATULATIONS! Thats an awesome achievement – you must be ecstatic. Thank you for sharing these details and your journey with us. Heres to the next million…which I hear is much easier 😉

cheers
R2R

Leigh
Guest

Congrats on your first million! That’s pretty exciting 😀

Jason @ Islands of Investing
Guest

Congrats FI Fighter on hitting the million! Funny that you say it was a long time coming, because in the scheme of your entire life, it seems to have happened pretty quickly!

Hopefully you manage to find the balance enjoying your life, and don’t get too caught up in chasing bigger and bigger numbers 🙂

Cheers,

Jason

Tawcan
Guest

Congrats on hitting the 1 million club on paper. What a great milestone to achieve!

Erin
Guest
Erin

Congratulations! What an awesome accomplishment!
I enjoy reading your blog and have enjoyed watching your journey.

Dividend Hustler
Guest

Congrats FIF. You’re been a long time coming. Keep it up and never stop. 2nd Million here you come. Enjoy the journey and thank you for sharing my friend. Take care.

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[…] Q2 2015 By Integrator with Get Financially Integrated! June Dividend Update By Captain Dividend June 2015 Net Worth Update By FI Fighter Freedom Fund Update – July 2015 By Jason Fieber with Dividend […]

No Nonsense Landlord
Guest

Congrats! It’s always a nice feeling to get the 7-figure mark the first time. Even if it is not liquid. It’s sort of like “wow, I am a millionaire”.

Now go for cash flow and the second million.

Nuno
Guest

Wow! Big milestone achieved! I’m very happy for you. i think 2nd million will come sooner than you expected!

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[…] FI Fighter @ $1,034,094 […]

CashFlowDiaries
Guest

“the name of the game is cash flow and NOT net worth”.

Love that quote! Albeit, generating cash flow normally goes hand in hand with increasing net worth but you’re absolutely right. I plan on retiring from cash flow not my net worth.

Congrats on the first mil! I hear after your first million, its all comes faster so you should have your 2nd mil in no time 😉

FerdiS
Guest

Congratulations, FI Fighter! That’s a MAJOR achievement! I’m inspired by your large cash holdings and the fact that you’re ready to pounce if and when the stock market drops to a more attractive level! Keep up the good work and enjoy the journey to $2m…

Cheers
FerdiS

GGR
Guest
GGR

Congratulations on the big milestone! Have been following your blog for a bit now and has definitely motivated me to be FI ASAP. I had a question regarding, how you or where you are able to take out so many mortgages. That is always the biggest issue I see in accumulating properties, unless a bigger and bigger percentage down payment is made. Any help would be great!

Spencer
Guest
Spencer

Congrats FIF! Big milestone. Be sure to take time to enjoy it.

george puck
Guest
george puck

Congrats on a Mil!! huge accomplishment.

You are young, I wouldnt worry too much about cash flow as long as the income, property appreciation, rents, cash flow etc are all going up over time.

One question, in previous posts you have talked about reducing risk and that you thought the housing market especially in California felt like it was in a bit of a bubble. If that is the case, have you thought about selling one or more of your side hustle deals to lock in the profits?

Retire29
Guest

Wow, I feel inadequate. I’m not sure I can comment on a millionaire’s blog.

Just kidding.

That’s awesome, dude! A cool million, I can’t wait to be able to say that, myself.

It will be interesting to see if the first million is the hardest.

This brings to light an important point, though. The path of money is infinitely long–there is no “most you can have.” The path to freedom, though, is finite. Once you achieve total freedom, then you’ve finally hit the promised land. Keep it up!

Eric

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[…] eventually happened… As far back as I can remember, I’ve been dreaming about becoming a net worth millionaire since the tender age of 15, when I was bagging groceries at the Moffett Field Commissary in […]

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[…] June 2015: $1,034,094.42 […]

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[…] in my early 20’s. Most of my friends were living large in the city, in swanky apartments. I reached a net worth of over $1,000,000 in 2015. Many of those critics are still paying large sums each month in rent and living paycheck to […]

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[…] $1,000,000 net worth […]

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[…] doubt, I NEVER would have been able to achieve a net worth of $1 million at the age of 30 had I not taken advantages of market opportunities and distortions made possible due to the Global […]

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