This is an uplifting story of a 25-year-old man who already owns five rental properties. He is on the road to an early retirement and will be able to leave behind a rich, meaningful inheritance to his future children…
Buying single-family homes is a great strategy for building wealth and leaving an inheritance. This young man from Chicago has done a remarkable thing and purchased five rental houses by the time he was 25:
Chicago-based millennial Alex Sanchez earned more than $230,000 last year. The bulk of his income came from his day job: He works about 60 hours a week as an overhead lineman for an electrical utilities company. Between his $120,000 base salary, $10,000 annual bonus and overtime pay, he makes more than $200,000.
The 25-year-old also brings in extra money from the lawn-care and snow-removal company he started, plus the five rental properties he owns and rents out.
Sanchez, who has aspirations to be a millionaire by 30, says that two personal finance books have helped him get to where he is today. Growing up in what he describes as a lower-middle class household, he didn’t know much about money until he was around 20. That’s when he started reading personal finance books and watching videos on YouTube.
One thing he has going for him is that he makes a large income. He also works a lot of overtime. But he is clearly funneling his extra money into rental houses. He saves his money to make down payments.
He has purchased several properties rapidly. He may be going too fast. But he also has a lot of capital because of his high-paying job. He is being future-oriented. He isn’t spending his money on frivolous things. He’s working hard, and working a lot more than most people do.
For most families, purchasing one property per year for ten years would be all that’s necessary. They just need to save up enough for the downpayment and closing costs.
When Social Security goes belly-up and the government checks stop coming, the rent checks won’t.
Rental properties grow wealth in a number of ways. They are tax-advantaged because, unlike income from salaries, the Federal government doesn’t extra FICA social welfare taxes. The houses will also appreciate in value over time, which can be sold for a profit. Even if they don’t appreciate much over the life of a mortgage, the mortgage principle will be paid off by the renters, which builds equity for the owner.
The young man in the story recommends two books that changed his life by changing his thinking: Rich Dad, Poor Dad, by Robert Kiyosaki, and The Total Money Makeover, by Dave Ramsey.
Kiyosaki’s book doesn’t give you specifics on how to get rich. But it is crucial for changing your way of thinking about money and wealth. It reveals the differences in how poor people, the middle class, and the wealthy earn their money. It is easy to read and motivational.
I have developed a free, 12-part Bible-based personal finance course that will help train people to start thinking about their finances biblically. If implemented, it will help people build more wealth than they thought possible.
To read the full article, click here: 25-year-old who owns 5 properties shares the 2 personal finance books that helped him earn $230,000 last year