Real Estate Retirement Journal
I found Early Retirement Extreme two weeks ago and have been reading every post and journal since. I have decided to start a journal here and update my progress regularly in order to learn from feedback, organize the journey, and improve my strategy.
Background information: I am a 25 year old Real Estate Professional in Canada focusing on retiring early
by acquiring as much real estate as possible. I first started down this path after reading Rich Dad, Poor Dad & Cashflow Quadrants by Robert Kyosaki at 14 years old. Immediately after reading these books I decided to start my own business in the web development field. 5 Years of moderate success later I realized that selling my time for money at a fixed rate was a very difficult way to develop wealth. I began to take an interest in real estate and eventually started my own real estate company. Today my business is fairly successful and growing.
Long Term Plan: I would like to purchase 10-15 rental properties (with positive cashflow) and enjoy an early retirement while managing the properties.
I began working on this plan two years ago and currently have 2 Properties with a total of 5 Rental Units. (I also live in one of the units.) I use mint to monitor my expenses and since my company revenue model is commission based my revenue does fluctuate although I do attempt to stabilize it.
Credit Card Debt: $0
Renovation Line of Credit: $40,000 @ 3%
Property Equity: $115,000
Net Worth $76,100
2010 Financial Information
Expenses: $25,250 [38.01%]
Tax: $10,665.23 [16.06%]
Invested: $30,506.77 [45.93%]
Projected Revenue: $98,607
Projected Taxes: $25000 [25.35%]
Expenses to date: $31,909 [32.35%]
Invested to date: $39519 [40.07%]
There is $2179 remaining in my revenue although I will probably use an additional $6000 by the end of the year so I will end up being $3821 short this year although I have the ability to owe the company money (within reason) with 0% interest and pay it back next year.
On my next post I will get into more detailed information on my monthly expenditures.
I do realize that I am overspending quite significantly and look at it as an opportunity to improve. I have however reduced my credit card balance from $4500 to $0 this year which contributed to the high expenses.
I look forward to completing this journey with all of you!
Thank you for reading,
Real Estate Retirement