Although we sometimes find new ways to save some money, like canceling our television subscription, or renegotiating our life insurance, they become rare. We can only save so much. With the creation of additional cash flow, growing your wealth can be accelerated. Which is why, in our quest for financial freedom, we focus on real estate to make things work. Okay that, and because we like the business. It’s our little project which helps us get to where we want, and where we first realized how it feels to be fully in control of your own path, and have total freedom in how you work.
It’s one way of many, and it works for us. We notice that a lot of people we talk to are interested in how we manage things, and not necessarily in how much we get out of it. Which is a good thing though. Although we aim to get rich in real estate, it isn’t our end goal. But rather a means to an end. If you want to grow, explore and get the most out of life, it will cost you money. Financial independence will let us receive more money and more importantly, more time as well.
If I would have to select one asset to invest in and where you could earn the most money from, it would be real estate, hands down. With a (mostly) stable rental income, a leveraged buying position and using ‘other peoples money’, the possibilities for exponential growing your wealth with this particular asset class are endless.
However, as we all know so well: the higher the returns, the higher the risks involved.
This blog is partly a documentation of our journey, with the good and the bad. So, it’s about time you’ll hear about the counterpart of our fortunate journey in real estate.
Many who seek the freedom through FIRE are loving the way of slow life. Not having the urge to tick every box, the hassle when you go out, or the need to plan everything due the limited time you have available. January is one of those months where it feels like the daily life is getting by slowly. Then again, after the speed lane called December. Everything feels like a slow month. It’s just getting back to normal.
You could question how normal our lives really are. Everybody working their way to financial independence aren’t doing the ‘normal stuff’. They take side-routes, alternative ways and think of new methods to ditch the 9-to-5 route a lot of ‘normal’ people are taking.
Three years ago that side-route opened up for us as well. Starting with index trackers, then entering dividend growth investing. And now… Real estate investors working on growing that not so passive income.
The motivation that drives us to financial independence is the will to create a different life for ourselves. Different from the status quo, and one where we are in better control of how and on what we spend our time. To pursue total freedom and independence of somebody you have to work for in order to get money. And one of the most important question for many FIRE seekers is: what are you going to do post-FIRE? Since that is where you’ll path will lead you.
This question has kept me busy for a while, and so far the best answer I got is: doing more of whatever we want to. It could literally be anything, as long as it is of value to us. Not very concrete, but then again we would just do more of the things we love and less of the things we don’t.
“The secret of change is to focus all of your energy, not on fighting the old,
but on building the new”
We’ve been growing, nurturing and analyzing our dividend stock portfolio since 2014. And the results have far than exceeded the expectations we had at the start of this journey a little over 3 years ago. But to all good things has to come to an end sooner or later. And in this case, it’s definitely sooner. Our dividend stocks are no more. We’ve sold the whole bunch 3 days ago. I want to give all of you an update on what exactly happened, but even more than that. Our whole vision and strategy of investing, FIRE and life have been transformed at such a fast pace, now would be the best time to present our new plans.
Seasoned real estate investors always say that you never forget your first deal. I hope this will be no different for us.
You’ll hope you have done everything right, didn’t overlook a small yet critical flaw or if you have used the right calculations. The practical side of things in real estate is not a mere waiting game. Getting in touch with a party to finalize a mortgage or another type of loan to fund the property. Finding a tenant that will move in as quick as possible and in doing so, reduce the time of vacancy. Make all the contracts in order. And if you want to, finding a trusting partner that manages everything for you. It’s this, and much more than you’ll face within real estate investing. Which is all part of the fun of course.
In the past few weeks, months even, you have all been reading along on the journey we took buying our very first rental property, also known as unit #1.
We’ve dropping some progress here and there in our monthly reports, and promising a full detailed report later on. Well, here it is. Today is the day I’m letting you in on how this deal has taken form. With all facts and figures, going the full monty.
Yet again the month has come to an end. In the last update, I was pleased with the enormous progress we’ve made in such little time. Well, apparently we have surpassed our expectations again. Not only did we move a little closer to us owning our first rental property. We stepped up the game even more and actually bought a second rental property in the last few weeks!
Our dividends keep on flowing in, not much has changed there. Although our portfolio took a dive when we decided to sell 2 holdings in favor of our real estate ventures.
But the best thing and one that has the biggest impact of all, was me getting a new job!
Looking back this past month, I was thinking what were the things that really stood out for us. Besides some steady dividend income, we’ve also paid down the deposit for our rental property and are finalizing some last steps on the total financing package, like getting our current home appraised. To add some fun to the mix, I got the opportunity to attend a blockchain masterclass, which was awesome. And I’ve booked a 5-day holiday to Lisbon, where I will go to with a friend in October. Let the money roll, right 😉 And not to forget, Divnomics had its first birthday last week!