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Debt Free… Now What? Real Estate

I’ve been Debt Free since the beginning of February 2010!

I write about the money I became Debt-Free in the article called “I Am Debt Free, My Mortgage Countdown #1 – Equilibrium” .  In the article I revealed the technique I used to become Debt Free and how I felt…  It was truly an exciting moment in my life.  But now life has stagnated from a financial perspective, I feel kind of lost without the instant feedback in my monthly debt levels .

Oh sure, I’m investing in a 401k and my regular brokerage account, but the accumulation of money is slow going and not as exciting as paying down my debt monthly.  Yes I’m accumulating money, but at the same time I find that I’m almost bored by the process since the money gains from my earned income is so low.

So I’ve decided to revert back to what I know and go into debt.  It’s not consumer debt though, it’ll be debt used to buy assets to speed up my progress on becoming wealthy.  I hope do two thinks with debt.  1.) own real estate (hopefully 1 property a year), and 2.) start small businesses.

Colonial Home

Some may find it odd that I’ve never had credit card debt that lasted more than a month and I paid my cars and house off early, but now I’m contemplating going into debt to buy real estate.  You might think that I’m even a bit off kilter, and perhaps I am?  But I still want to try to own real estate, for the following reasons:

  • Find out what it’s like
  • Try to make some money off of it
  • Develop verbal people skills to become more proficient in the process.
  • Give people a place to stay!

So over the next few months, I’m going to look and call around trying to find a good deal on property that I won’t lose on.

We’ll see…

MR

 

28 Responses to Debt Free… Now What? Real Estate

  1. Good luck finding some property to invest in. This should be a very good idea. Not only will your property likely gain value over time, but it’s nice to have rental income stream coming in all the time. I’m looking forward to hearing how it all goes.

  2. Congrats on being debt free! I am not there yet, but I am looking into rental properties. I have a couple of posts on it over at my blog and am revealing my decision this Wednesday. Good luck with finding your property!

  3. I can see how one would get bored after the excitement of paying off debt is gone – it’s one thing I’m worried about myself. I hope that tracking my net worth will be exciting, and I plan to try an aggressive push to get rid of my PMI.

    I’m glad so many bloggers are looking at buying investment property, because I’m interested and can learn through y’all.

    • Debt reduction/payments were easy because there was no options, but put it in a spreadsheet and pay. But there are so many option with wealth accumulation… I’m still overwhelmed…

      I’ll be sure to write about what I learn!

  4. Real estate is def a good investment idea right now!

    Bank owned properties are drying up throughout the country, so the real steals of deals are dwindling..

    I would look for a bank-owned property that could use a good cosmetic fix…nothing too pricey. Hold for a year or so (possibly while renting) then sell.

  5. The next three years are going to provide some phenomenal deals in real estate. When I read stories like, buying a home is no longer the American Dream, I get the feeling we are getting close to a bottom in the real estate market.

  6. I think it’s a good investment. Like you say it’s not consumer debt, it’s something that is going to give you a return in the long run. I’ve found real estate is always a good investment in terms of return although sometimes it can seem to be a risk.

  7. I was excited to see your post because I saw that you were completely debt-free. That feeling of having no debt at all, including the mortgage, really excites me. I wish I didn’t read the last part of you going back into debt, but I did. I would encourage you that being debt-free is a position that many people only dream to be in. Good luck to you.

    • Thanks Deacon! The interest rates are so low right now that to ignore buying some property (personal or business) just seems foolish for me, especially since I am debt-free.

  8. Sounds like a very nice step. Just beware the pains that come from owning a rental property. I personally don’t have any experience in this matter but I know hey exist.

    Sometimes the pain caused by the tenants could outweigh the monetary gain.

  9. You are going to love real estate investing! It truly becomes an addiction – but a healthy one. Just remember – Cashflow is King. Don’t fall for the trap of the quick flip. Investing in real estate is simple, as long as you are careful. Good luck!

    • Thanks Brandon, I hope so! I’m taking it slow (perhaps too slowly)…

      For me, it’s more than just flipping at this point. I want to provide a service for the community too. I’m almost excited about the prospects.

  10. I was definitely more motivated financially when I had debts to repay. As you know, I too am house shopping, but I’m finding that although I want to invest more in real estate, it’s been harder to pull the trigger than I thought it would be.

    I keep asking myself the question: Is this that much better of a house that it’s worth going into debt over? Usually the answer is no. I’m thinking that being choosy though will serve me well long term. Certainly we love our current home and that took a long time to find.

    Good Luck in your home search. I hope you find something fabulous. Don’t forget to factor in realtor fees and closing costs for upgrading. That’s been another deterrent for me.