Financial Independence through Real Estate 3

We have come a long way in our real estate knowledge. Hopefully, over the last 1.5 years, we have begun to formulate a plan to buy and exploit our advantages in real estate.

This is book three in Signature Series 3. The other two books are “How We Plan to Retire on Dividends 3” and “Retire Rich, Retire Comfortable with a Business 3.” Please find all six books in Signature Series 2 at the bottom of this article.

Let’s jump directly into every real estate article I have written over the last six months. This is the perfect time to explore our options with the markets heating up. 

REAL ESTATE PLANNING & LIVING

Buying a home for the average person is becoming impossible due to many outside influences. Understanding these reasons and making a solid plan to save a down payment quickly is vital to getting your foot into the door.

If we can pay for a house, we have to ask ourselves if we can genuinely afford it. You don’t want to put yourself into a situation where you are “house rich, and cash poor.” This term means you are struggling with living expenses after paying your mortgage. 

Saving for a down payment used to be pretty straightforward. You could save for 3-5 years and have a nice down payment for your home. Real estate market prices are increasing by over 10% a year, so you must use strategies like “I” bonds and USDC to super-charge your savings

If you have read my work before, you’ll know I love house hacking. In fact, house hacking is the fastest way to financial independence. While house hacking, you reduce or eliminate your most significant expenses—your mortgage. 

I wish I would have completed my “Real Estate is the I.D.E.A.L.” investment series, but I went down a different path. However, maybe over the next six months. You can read the first article on how excellent the income opportunities are in real estate. 

Buying your first property can be nerve-wracking. I remember buying my first home in 2008—what a financial mess. But, while buying your home, you should decide (with your spouse) to purchase a dream home or an investment property (in the long term). This decision will affect many choices inside and outside the home. 

I focused on homesteading for this round of real estate articles. I felt that I was becoming too ingrained with “online” and “virtual” worlds and not paying enough attention to “real life.” Homesteading and RV Life are great ways to remove yourself from the suburbs and experience nature and travel. 

As you read my articles and books, you are beginning to build passive income streams. Passive income will allow you to move to lower-cost areas and live like a king or queen. Some of these low-cost areas are overseas, a homestead, or small cities. Which site is right for you?

REAL ESTATE INVESTING

Fundrise is a real estate investment trust that doesn’t trade on the stock market. USDC is a crypto stable coin that does not trade on the stock market. Which alternative investment, Fundrise or USDC, is the fitting complement to your stock portfolio?

Virtual real estate in the metaverse will offer people the opportunity to become land millionaires. However, if you don’t perform your due diligence, you will be left holding the bag. 

As prices continue to soar, many people remain on the sidelines. They are asking if the real estate market will crash? I have my opinion, but you have to keep doing your research and saving your cash to prepare for whatever madness ensues. 

I don’t think the real estate markets will crash because there are too many investors with wads of cash in your neighborhood. These investors include real estate investment trusts, foreigners, institutions, and Airbnb hosts. 

Your house can pay dividends if you understand how to leverage home equity. I don’t recommend it for people with massive credit card debt or student loans. However, if you square yourself away financially, you have great opportunities to use your equity. 

The beauty of rental income is in its consistency. Dividends arrive sporadically, and royalties are erratic. Rents come in on time, and you can set your clock on their schedule. It’s nice to have multiple paychecks coming in from your properties. 

Seeing how the real estate market is at an all-time high, can REITs serve as a total substitute for owning a home? The question is homeownership versus REITs, emphasizing Fundrise shares as the principal investments you would make. 

BEST PASSIVE BUSINESS SERIES

I read a while ago that combining ideas will lead to creating genuinely original content. When buying property and land, you have many options to increase your cash flow. These options include adding self-storage, mobile homes, and RV hook-ups. The good part is you can mix and match to build the income stream you desire. 

  1. Self-Storage vs Mobile Homes vs RV Parks 1: The Best Passive Small Business
  2. Self-Storage vs Mobile Homes vs RV Parks 2: The Best Passive Medium Business
  3. Self-Storage vs Mobile Homes vs RV Parks 3: The Best Passive Large Business

FROM DIRT TO DIVIDENDS

I created the From Dirt to Dividends series by accident. I was writing an article about combining ideas, and I quickly made up an article covering Gardening & Preferred Shares. With that, I created a series combining homesteading and income investing—unique indeed.

  1. From Dirt to Dividends 1: Gardening & Preferred Shares
  2. From Dirt to Dividends 2: Livestock & Closed-End Funds
  3. From Dirt to Dividends 3: Insects & Business Development Companies
  4. From Dirt to Dividends 4: Community Farming & Mortgage REITs
  5. From Dirt to Dividends 5: Composting & Dividend ETFs
  6. From Dirt to Dividends 6: Vermiculture & High-Yield Blue-Chip Companies

REAL ESTATE INVESTING AT ANY AGE

Real estate investing is a lifelong adventure. Understanding real estate at a young age can help you conquer it throughout the years. The Real Estate Investing at Any Age series enables you to get an idea of what’s in store for all age groups. 

  1. Real Estate Investing in Your 20s
  2. Real Estate Investing in Your 30s
  3. Real Estate Investing in Your 40s
  4. Real Estate Investing in Your 50s
  5. Real Estate Investing in Your 60s
  6. Real Estate Investing in Your 70s

BOOK TAKEAWAYS

Just because you live in an apartment doesn’t mean you can’t have a garden. Gardening is great for the soul, so don’t let your living arrangement deter you from starting your own space for plants. 

Creating compost is simple, even for beginners. The benefits of compost are too great to list here, but it is some of the best organic materials you can give to your plants and the Earth.

Starting a worm business begins with a worm bin, worm bedding, worm food, and worms. From there, you can breed your worms and then leverage their ability to create compost and worm castings. 

A shipping container home allows you to customize the size, windows, roof, and add-ons. These options are great for homesteads and other “alternative” living arrangements. But, setting up in a typical area is just as memorable.

I have focused on homesteading for the last six months because returning to nature in the future. I read “The Homestead Encyclopedia” to begin my journey into homesteading. The first rule is that homesteading is a mindset. 

House hacking is my favorite real estate strategy because anyone can do it, and it produces the best return on investment. I continue to stand by this assessment even after reading 110 books on investing. 

Small multi-family housing can be your ticket to accelerating your wealth creation. You can combine multi-family strategies with house hacking to become a wealthy person in five years or less. 

Is there a perfect investment in the world of real estate? Many wealthy people think that large commercial multi-family properties (200+ units) are great ways to pass on wealth and reduce taxes. Follow the money. 

CONCLUSION

I hope you enjoyed part three in the Financial Independence through Real Estate series. Also, please read the first two articles, “Financial Independence through Real Estate” and “Financial Independence through Real Estate 2.” Thanks for reading. 

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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it.  I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing


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