Success Journal - The journey to actualising one's potential

[Papa_smu]

Are you not going to keep us updated @BeTheChange?

 

[BeTheChange]

Are you not going to keep us updated @BeTheChange?

Not too much to report as my net worth took a hit with the crypto price but offset by income from contracting. Was at c. $355k end of July.

I have a lot to look forward to. I fully expected to be out of work for the rest of the summer and into autumn as contract ended last week but picked up a new role straight away. 6 month contract with a major oil and gas company. I'm hoping to try and turn this one into a long term gig since it's a great company with a solid pay packet.

Still waiting to close on property no. 4 and the lenders are being a pain in the arse with regards to the refinancing on property no. 2. They still valued it at a price which sees me double my intiial investment though but I already had it in the books for around that value anyway.

Hoping to close on a fifth property by end of the year in London - would be in the $500k - $750k range. Serious money now. The next 6 months are going to be crucial for establishing a foundation to build on.

 

[Papa_smu]

Not too much to report as my net worth took a hit with the crypto price but offset by income from contracting. Was at c. $355k end of July.

I have a lot to look forward to. I fully expected to be out of work for the rest of the summer and into autumn as contract ended last week but picked up a new role straight away. 6 month contract with a major oil and gas company. I'm hoping to try and turn this one into a long term gig since it's a great company with a solid pay packet.

Still waiting to close on property no. 4 and the lenders are being a pain in the arse with regards to the refinancing on property no. 2. They still valued it at a price which sees me double my intiial investment though but I already had it in the books for around that value anyway.

Hoping to close on a fifth property by end of the year in London - would be in the $500k - $750k range. Serious money now. The next 6 months are going to be crucial for establishing a foundation to build on.

Still, having that networth compared to the rest of us is an impressive feat.

 

[BeTheChange]

Still, having that networth compared to the rest of us is an impressive feat.

Thanks bro.

$340k NW as at end of September. Would be higher but crypto portfolio has taken another battering. Not a major issue as I only have 10% of my NW in there but still leads to some major fluctuations.

But most importantly I rebased the FX conversion from last year's rate (£1 =$1.35) to the current rate (£1=$1.23) as it stands today. Sterling has taken a battering and so the dollar value of my portfolio with it - thus the massive dip from July's number.


Deal on fourth property purchase should complete next month, which should add a big chunk to my net assets. We got in at a great price to begin with (c.$170k) and my team think it's worth closer to $200k with the way the market has moved in the more than 6 months from when we put an offer down. This has to be the longest conveyancing process on record but almost there now....

Found a great buy in London - a two bed foreclosed flat. Managed to secure it at 10% below asking price (and this was after it had already been reduced by $90k) as the bank wants to clear the property off its book asap so now in the process of rallying the lawyers and bank to get the necessary funds together. Another great equity boost to the portfolio if this closes. And the mortgage lenders are happy for me to only put in 5% or 10% as a deposit - I'm a huge proponent of gearing to enhance returns so this suits me perfectly. It requires meticulous forecasting and stress testing (good thing I build financial models for a living), but if you get it right, heavy gearing is a proven way to build lasting wealth.

There are more than a handful of dominoes that need to be stacked and tipped at the perfect moment to ensure everything works out on both deals by the end of the year but I'm hopeful.

I am shooting at $425k NW as the year end target. It relies on all the above working out, but if the stars align and we come out the other end, I'll definitely be treating myself to a holiday (haven't taken one this entire year) or maybe even a (used) sports car

 

[BeTheChange]

Been reading a lot of books on entrepreneurship, tech, AI, blockchain and IoT in the last few weeks. They've left me feeling inspired, motivated but also angry. There's a frustration building, that although I may be making ok money, I'm not growing, learning or achieving my full potential. You've got 22 year olds building multi-million dollar companies and here I am at 30 getting comfortable on $100k-$200k a year, most of which isn't even guaranteed.

I have a feeling I need to do something significant. The money isn't even the main issue. I'd rather build a startup that actually has an impact on peoples lives and sells for a couple of million, than win a $100M in the lottery.

Where to next? Im probably going to sell my Swiss watch, cut down on holidays and ignore the urge to buy a car I don't need. All those distractions and money sinks can wait until I've actually built something of value. I'll also set aside two hours a week just to sit and brainstorm ideas. I might turn this into a focus group if there's any interest from friends. Furthermore I'll start attending tech shows and networking events again to meet more inspiring, intellectually curious people.

 

[BeTheChange]

Four investment properties under my belt now and a fifth on the way. Net worth sits at $400k. Not enough time for a more comprehensive income but intend to write something up later this month as an end of year review.

 

[justanub]

Four investment properties under my belt now and a fifth on the way. Net worth sits at $400k. Not enough time for a more comprehensive income but intend to write something up later this month as an end of year review.

Just caught up with your posts here. Very inspired by your perseverance. Will be following your thread, keep us posted please.

Also don't put yourself down, you're most likely doing better than 95% people your age!

 

[BeTheChange]

Just caught up with your posts here. Very inspired by your perseverance. Will be following your thread, keep us posted please.

Also don't put yourself down, you're most likely doing better than 95% people your age!

Thanks bro. Sometimes it does feel like I haven't achieved anything at all, but I remind myself to be grateful. Ultimately life is good and progress is being made.

My 2019 end of year net worth target was c. $360k. My actual net worth is c. $405k. It took me 5 years to go from zero to that number, including clearing student debt. Motivated but know there's so much more to be achieved. My aim for next year is $625k.

My highlights for the year:
Reached portfolio landlord status with four investment properties
Made nearly $150k after tax through contracts and side hustles
Saved 60% of my after tax income
Travelled to four different countries
Read 25 books (could have been a lot more but got sidetracked trying to pick up Spanish again for six months)

My goals for 2020 aren't just financial this year either. I really want to focus on building more intimate relationships with family and mutually rewarding relationships with existing friends, while expanding my social circle. I'm not the most socially adept person in the world or the best speaker, so looking to work on this a lot next year. But I'm also not on the spectrum either so really it should just be a matter of getting out there and meeting people. Left to my own devices I'm prone to isolation (just often prefer my own company) so I need to build habits, which seamlessly allow me to meet people on a regular basis.

Health, Finance, Family, Friends and Knowledge are going to be the four pillars of focus for 2020.

My goals for 2020

Health
Hit the gym four times a week
Stretch after working out
Meditate once a day
Give myself atleast eight and a half hours of sleep opportunity a night

Finance
Nine investment properties across the portfolio including one in a HCOL area
Annual passive income of $50k (FIRE level)

Family
Phone or meet up with parents once a week
Phone or meet up with siblings and cousins once a month
Visit hometown once every two months

Social
Catch up with a mate once a week
Attend one salsa class a week plus a social on a different day
Attend three Toastmasters public speaking meetings a month
Attend two tech/science focused events a month
Attend two book club meetings a month

Knowledge
Read one book a week (52 books in a year)

 

[BeTheChange]

Net worth c. $420k.

Life has been great. Happy with my progress and the journey ahead. As I mentioned in a recent post I'm close to end game state. When you're truly content to be alone or without women. I feel like I've never had so much power. No need to play games in dealing with women. Weekday evenings I'm either in the gym or pursuing my social hobbies and interests. Weekends I decompress with video games and reading novels since too much socialising drains my energy.

The chick who was chasing me is now in rotation. My social circle, dating options and bank account are steadily increasing so no plans to commit to anyone at present.

I've been doing well tackling my New Year goals. In the gym often, sleeping well and reading atleast a book a week. One thing I still need to work on though is allocating time to meditate daily as this is still not a habbit.

Still waiting on my fifth property purchase to close. There's been some issues with the vendor holding things up but hoping to resolve. This purchase is the big one for me - great location, rising market, strong rental income potential - and will solidify my position on the path to financial independence.

 

[BeTheChange]

Fifth property purchase finally closed. Have added the property to my balance sheet at its market value, which is above the price I paid for it. Someone offered market value of c. $600k but their financing fell through which is why I was able to swoop in and get it on the cheap - since I have a great credit score - but definitely well worth the money and already found tenants.

Because of the capital structure of the transaction I don't expect to make too much money on this in the first two years, however the capital appreciation potential is solid and any positive appreciation at all will ensure strong double digit ROE.

Asset value of my portfolio now stands at over $1.5M.

Net worth c. $460k.

Most of my attention will now be focused on securing a permament role and starting the next stage of my career. The "Entrepreneur" buzzword gets bounced around a lot and undoubtedly if I spot the right opportunity I'd be open to working in the start up space again, but my time in crypto taught me that sure things rarely come along. I also found that a lot of the people in crypto didn't really have a career to begin with. I won't be derailing my career again for anything but the best opportunities, especially given my financial situation is much improved compared to 2018.

Once a new role is secured I'll then contact my property sourcers and have them looking for two deals simultaneously. I've raised some costly finance in the last month, but it's meant I now have a lot of liquidity and cash on hands to handle multiple transactions.

 

[Medina]

What is unhappiness really? For me it’s a mental position where your expectations and your reality consistently fail to reconcile, leading to a sense of frustration and failure. In that respect it is simply a state of mind influenced by three things. Your value, the world around you and your expectations. Your value influences what you can obtain from the world around you, and your expectations determine whether you are content with the result. Of course, your value and the world both influence the likelihood of your expectations becoming reality. And your expectations are developed from both your perception of your value and the world itself. So, it’s almost like a circle.

One of the best paragraphs I've read on this forum

 

[BeTheChange]

Well what a month it's been. In February we were riding high and here we are now with the world economy grounded to a halt and a quarter of the world's population in lockdown!

My net worth sits at $465k.

It would be higher but crypto and equities took a battering.

Most of my assets are tied up in real estate, which is impossible to value at the moment as there is no liquidity. The government has frozen the housing market until the coronavirus is dealt with.

I can't go into too much detail but I am about to make more money from my consulting than I ever have. A crisis is an opportunity and with hard work and a lot of good fortune I've been able to capitalise on it. I'll make atleast $50k in the next two months if everything goes to plan and possibly more.

For me this is a massive turn of events as going into the crisis and lockdown I expected to be out of work for 3 - 6+ months, but instead it has swung in the complete opposite direction.

With regards to investments I am looking to dive heavily into equities and crytpo once the extent of this crisis becomes clear. I'll also be looking at potential distressed sales on the real estate side, although the market is difficult for both buyers and sellers right now. Interesting times ahead.

 

[BeTheChange]

It's a strange situation. To find yourself profiting at a time when many are losing jobs but honestly Covid-19 has financially been the best thing that could have happened to me.

Net worth sits at $485k, up on last month in spite of some heavy spending and tax bills due.

Consulting Business made $15k last month from two contracts. April is normally quiet. Demand for my services has actually gone up. I secured a third contract unexpectedly and as I'm working from home I can probably handle it. Looks to be staying this way for white collar workers for while.

With three contracts running consecutively I'll make $25k in May. It really is unbelievable.

I've applied for a business bank loan. They're all 100% backed by the government due to Covid and interest free for the first year so essential free money.

I'm going to have tons of liquidity so aiming to dump $5k - $10k a month into equities and crypto till the end of the year.

If I can secure this loan I'll also be using it to buy up more real estate.

On top of all this I applied for a $70k government grant to fund a startup idea which is aimed at supporting the country during and after coronavirus so juggling a lot of exciting options.

 

[Lynx nkaf]

It's a strange situation. To find yourself profiting at a time when many are losing jobs but honestly Covid-19 has financially been the best thing that could have happened to me.

Net worth sits at $485k, up on last month in spite of some heavy spending and tax bills due.

Consulting Business made $15k last month from two contracts. April is normally quiet. Demand for my services has actually gone up. I secured a third contract unexpectedly and as I'm working from home I can probably handle it. Looks to be staying this way for white collar workers for while.

With three contracts running consecutively I'll make $25k in May. It really is unbelievable.

I've applied for a business bank loan. They're all 100% backed by the government due to Covid and interest free for the first year so essential free money.

I'm going to have tons of liquidity so aiming to dump $5k - $10k a month into equities and crypto till the end of the year.

If I can secure this loan I'll also be using it to buy up more real estate.

On top of all this I applied for a $70k government grant to fund a startup idea which is aimed at supporting the country during and after coronavirus so juggling a lot of exciting options.

Cool on getting more real estate BeTC.
A gov't backed business loan? You mean insured?

 

[BeTheChange]

Cool on getting more real estate BeTC.
A gov't backed business loan? You mean insured?

A loan from a private bank but as it is related to Covid the government guarantee 100% of the loan. Meaning in the event of default the government will make good on the amount owed to the bank. This effectively means the bank can lend to more risky borrowers at a lower interest rate (I.e. chancer who makes an application)

 

[Lynx nkaf]

A loan from a private bank but as it is related to Covid the government guarantee 100% of the loan. Meaning in the event of default the government will make good on the amount owed to the bank. This effectively means the bank can lend to more risky borrowers at a lower interest rate (I.e. chancer who makes an application)

Oh wow, foolproof loan, good luck, I wish you success!

I'm out this morning doing creepy drivebys of cheap listed properties. I'm wondering if I should delay for more foreclosures when Covid-20 or Covid-21 hits.I'm going to research if there's any incentives like what you found. If I start a numbered provincial holding 'company' and get that company to buy the house I may qualify!?

I really don't want to be paying rent but a mortgage instead.
The female mortgage broker gave me a female lending officer name and it would be a female real estate agent.

Just wondering what its like to buy investments with females helping me. I'm sexist I guess.

Also, I wonder that maybe I shouldn't wait until more of my debt is paid off.
I'm barely 1/10th of your NW.
I wonder when I get to your level that I'll be more relaxed with the margin of debt I carry. The risk tolerance will be higher?



Sorry I'm not at your level/peer experience yet, but where I get the good example from you, I can trade cheerleading.

Keep up the good work BeTheChange!

 

[BeTheChange]

Oh wow, foolproof loan, good luck, I wish you success!

I'm out this morning doing creepy drivebys of cheap listed properties. I'm wondering if I should delay for more foreclosures when Covid-20 or Covid-21 hits.I'm going to research if there's any incentives like what you found. If I start a numbered provincial holding 'company' and get that company to buy the house I may qualify!?

I really don't want to be paying rent but a mortgage instead.
The female mortgage broker gave me a female lending officer name and it would be a female real estate agent.

Just wondering what its like to buy investments with females helping me. I'm sexist I guess.

Also, I wonder that maybe I shouldn't wait until more of my debt is paid off.
I'm barely 1/10th of your NW.
I wonder when I get to your level that I'll be more relaxed with the margin of debt I carry. The risk tolerance will be higher?



Sorry I'm not at your level/peer experience yet, but where I get the good example from you, I can trade cheerleading.

Keep up the good work BeTheChange!

No need to apologise. Just having a positive net worth puts you ahead of a lot of people.

Regarding your situation, if you are early in your career focus on trying to increase your income whether through promotions or learning new skills. Having a high income is vital for building wealth.

 

[BeTheChange]

Net worth now at $525k. My highest revenue generating month since I began consulting - all a direct result of Covid-19. Total income of $33k in the month from property and invoicing on client contracts. Expecting a drop off of 40% next month as I've finished and rolled off my highest paying engagement. Chasing another.

Building a cash war chest to weather the coming storm and make some acquisitions. Drew down on some existing credit lines to bolster the ranks. I'm now sitting on $150k of dry powder.

Looking to move into equities if value can be found and will likely be putting some offers down on some properties in the $200k - $300k range in the near future. Intend to start multi deal purchases.

Finally felt financially secure enough to move into my own place - a spacious 2 bed apartment in the city I purchased a few months ago. Feels strange, especially as before this I've only ever lived in rented accommodation with housemates. I was getting intro to American Pyscho vibes walking through my house naked with no one to judge me. Not going to lie. Riding high right now. Life is good.

 

[Lynx nkaf]

Net worth now at $525k. My highest revenue generating month since I began consulting - all a direct result of Covid-19. Total income of $33k in the month from property and invoicing on client contracts. Expecting a drop off of 40% next month as I've finished and rolled off my highest paying engagement. Chasing another.

Building a cash war chest to weather the coming storm and make some acquisitions. Drew down on some existing credit lines to bolster the ranks. I'm now sitting on $150k of dry powder.

Looking to move into equities if value can be found and will likely be putting some offers down on some properties in the $200k - $300k range in the near future. Intend to start multi deal purchases.

Finally felt financially secure enough to move into my own place - a spacious 2 bed apartment in the city I purchased a few months ago. Feels strange, especially as before this I've only ever lived in rented accommodation with housemates. I was getting intro to American Pyscho vibes walking through my house naked with no one to judge me. Not going to lie. Riding high right now. Life is good.

So your income was up by 8,000 this past month? That's nearly 25% growth. Well done. Keep it going, keep grinding.
In comparison, I have 'four walls and Baby step 1' (Dave Ramsey plan) finally completed this month.
My income went down by 5% starting a healthier and more fulfilling position but at least I was able to decrease monthly bills(expenses) by approx 20%.
My house buying is on hold until after Step 3 (DR plan)is completed.

Different stories and economies of scale, lol. Thanks for your stellar example to admire.

 

[BeTheChange]

So your income was up by 8,000 this past month? That's nearly 25% growth. Well done. Keep it going, keep grinding.
In comparison, I have 'four walls and Baby step 1' (Dave Ramsey plan) finally completed this month.
My income went down by 5% starting a healthier and more fulfilling position but at least I was able to decrease monthly bills(expenses) by approx 20%.
My house buying is on hold until after Step 3 (DR plan)is completed.

Different stories and economies of scale, lol. Thanks for your stellar example to admire.

Congratulations. From what I hear Dave Ramsey is great for getting out of debt and pulling together a basic budget.

Yes my income jumped up due to a new contract but only temporarily. It will be back to its "normal" level in June.

Working for yourself means you can make high income one month and zero the next but so far its been overwhelming positive from a financial standpoint.