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I paid off $20k and now am worth $200k!!! (Part 1)
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Not too long ago I was twenty thousand dollars in debt, broke and sleeping in a friend's basement. Today I have multiple houses and a net worth of approximately two hundred thousand dollars. I want to talk to you about how I did it and how Real Estate played an important part in my story. But before I do, a quick disclaimer, this is not me providing a copy and paste approach to growing wealth. Everyone’s situation is different, some have a lot more to overcome, some less. This is just my story and if helpful, great! So coming out of college I was about 20k in debt and we had just gone into a recession caused by the housing market collapse. I was struggling to find work in the field I had graduated in, and the one job I did get in my area lasted less than a year. Before long I was sleeping in the basement of a friend’s place and bouncing between low-paying, part time jobs just to make ends meet. I knew I didn’t couldn’t afford to live on my own with the heavy debt payments and low income I was generating, but I didn’t want to stay in the situation I was in forever, so I started to strategize. I called up my debtors and requested lower payments based on my income. After doing plenty of paperwork, I was able to lower my monthly payments so that I was only paying off the interest. Then I took the money that I was no longer paying across multiple loans and focused it on the highest interest loan so I could pay that off first. Once that was gone, I took the extra money I was no longer paying on that loan and used it to attack the next highest interest loan. Anyone who has heard of Dave Ramsey has probably heard of something similar known as the debt snowball technique. And like Dave Ramsey would recommend, as I was doing this, I avoided taking on any other debts like the plague. I drove junker cars and refused to get credit cards no matter what the banks said. I continued to search for improved job situations with better compensation and even started working multiple jobs. Eventually I had saved up a decent emergency savings and was getting close to being done with my loans. That is when a friend asked me to move to South Carolina to help with a non-profit. I wouldn’t be paid, but it was in the same field as my degree was in, so I decided to make the move. Now obviously this was not a financial move I would recommend for others, but the result of moving ended up benefiting me greatly. I found myself in an area with a much cheaper cost of living and the best financial opportunities of my life. Once I finished off my student loans, I went house shopping. I found a small 3 bedroom house for 85 thousand (yes, I said 85) and got an FHA loan to buy the house. At this point, I had removed 20 thousands dollars in debt and leveraged a few thousand in savings to own a property worth nearly six figures. From there I rented out the two other rooms I had and used that money to help start paying off the house faster, adding to my emergency savings, and also started investing in other opportunities. But I was still working part-time jobs, so my income was still limited. Finally, after much searching, I found a company that was hiring full-time with good benefits. I applied for a position there, but didn’t get the job. Then I applied again for a different department there and again was unable to get it. Finally I applied to the third department. I was determined to keep applying until I got a job there. Apparently, I impressed them with my determination because they hired me and put me in the sales department. After years of struggling, I finally had a stable full-time position with benefits, commission, and good starting salary. I found how much my company was willing to match in 401k contributions and maxed them out. I added to my other investments and, after a year of payment history with the company, was able to use my new income to pre-qualify for a loan on a second house for 185 thousand on a conventional loan. I moved out of my first home and brought my roommates with me to rent out the extra rooms in my new house. But I did not sell my first home. Instead I rented it out as well, increasing my passive income and allowing me to increase my net worth even more. Currently, my house has increased in value by 50 thousand dollars and my second house by 20 thousand.
And after 3 years with the company, I moved on with enough money to start my own real estate business. And today I am helping other people meet their financial goals through real estate Or just helping them find a place to call home.
Now I know that was a really fast explanation of something that took me years to accomplish. and I do plan on making Is more specific videos about building credit, Payin off debts, and finding the right house for the right price. So if you're interested in more content like this let me know in the comment section. Thanks guys for listening. hope this was helpful and have a great day
And after 3 years with the company, I moved on with enough money to start my own real estate business. And today I am helping other people meet their financial goals through real estate Or just helping them find a place to call home.
Now I know that was a really fast explanation of something that took me years to accomplish. and I do plan on making Is more specific videos about building credit, Payin off debts, and finding the right house for the right price. So if you're interested in more content like this let me know in the comment section. Thanks guys for listening. hope this was helpful and have a great day