Young Adult Net Worth Question

[ndwilli6]

I’m a 27 year old that owns 9 investment properties. I’m not interested in comparing my net worth to others—I’m interested in determining the best way to maximize my worth. I’m focus on becoming a millionaire by the time I am 32. I want a net-worth around $750,000.00 by the time I’m a 30. I don’t think I’ll keep more than $500k in banks—and will instead invest aggressively then and/or payoff mortgages.

Status now:
Liquid assets: $75,000.00 in liquid assets (will increase greater than 100k again)*
Monthly savings: $3,000.00 to $3,500.00.
Assets: car worth $8,500.00
Real Estate equity approximately: $1,100,000.00
Loan amounts on those: $731,650.00.
Furnishings/Jewels: $20,000.00 approximately though*
Student loans: $110,000.00
CC debt: $15,000.00
Total Net worth: $341,850.00


I’m incredibly proud of where I am—but hungrier now more than ever. I know what I want, but need other incredible like-minded investment gurus to help push me forward. We can connect about investments we're thinking of making...our net-worths...and other smart and/or wise financial decisions.

[rennigade]

You didnt really ask any questions?

[disneysteve]

You didnt really ask any questions?

That’s exactly why I didn’t respond yesterday.

[scfr]

Is your question "what is the best way to maximize my net worth"?

If so, may I suggest that you do one of the following:
1. List options that you are considering and ask for feedback
OR
2. Ask the SA forum members what has helped them most maximize their net worth

[bjl584]

I’m a 27 year old that owns 9 investment properties. I’m not interested in comparing my net worth to others—I’m interested in determining the best way to maximize my worth. I’m focus on becoming a millionaire by the time I am 32. I want a net-worth around $750,000.00 by the time I’m a 30. I don’t think I’ll keep more than $500k in banks—and will instead invest aggressively then and/or payoff mortgages.

Status now:
Liquid assets: $75,000.00 in liquid assets (will increase greater than 100k again)*
Monthly savings: $3,000.00 to $3,500.00.
Assets: car worth $8,500.00
Real Estate equity approximately: $1,100,000.00
Loan amounts on those: $731,650.00.
Furnishings/Jewels: $20,000.00 approximately though*
Student loans: $110,000.00
CC debt: $15,000.00
Total Net worth: $341,850.00


I’m incredibly proud of where I am—but hungrier now more than ever. I know what I want, but need other incredible like-minded investment gurus to help push me forward. We can connect about investments we're thinking of making...our net-worths...and other smart and/or wise financial decisions.

I'm going to assume that you are looking for advice on real estate?

A good place to start would be to focus on getting rid of the bad debt. The debt on your real estate is for a cash flowing asset. It could be argued that that is good debt, because it for an asset that increases your net worth, and your tenants are paying it for you. Your CC and your student loans are evaporating your cash flow. I'd want to get rid of those as quickly as possible.

You are brrrr'ing your properties I assume? It's a good way to build a portfolio quickly, just don't overextend yourself with debt. Pay down some mortgages before pulling too much cash out too quickly.

Do you own your properties in a LLC? IF not, you should form one. Protect yourself and take advantage of the tax benefits associated with owning real estate. They say that if you are investing in real estate correctly, then you shouldn't be paying any taxes. The tax code was written to take advantage of owning real estate.

Do you have a good team around you? An attorney, and accountant, a property management company, and a contractor?

What are your long term goals? How many properties do you want to own and how much monthly cash flow do you want? Being a millionaire is a good goal, but being financially independent is a better one. A million dollars is arbitrary. It might or might not set you free. Financial freedom is more powerful. Figure out how many properties you need and how much cash flow you need to be financially independent, and go for it.

[TexasHusker]

a million ain't what it used to be.

[ndwilli6]

You didn't really ask any questions?

In the first sentence it specifically states, "I’m interested in determining the best way to maximize my worth..."

I assumed it was self explanatory... like elicitation.

[ndwilli6]

That’s exactly why I didn’t respond yesterday.

I'll provide you with the same response: In the first sentence it specifically states, "I’m interested in determining the best way to maximize my worth..."

I assumed the statement was self explanatory... like elicitation. You should've been able to comprehend what I wanted based on that statement alone.

[ndwilli6]

a million ain't what it used to be.

Say that to the 45 million + Americans living in poverty...most won't ever attain a 1 Million dollar net worth unfortunately.

[disneysteve]

So basically you want to triple your net worth in the next 5 years. How did you arrive at that goal? What significance is there to you to having a $1 million net worth at age 32?

How much do you currently earn?
What are your monthly expenses?
Do all of your properties have stable tenants (as stable as a tenant can be)?
Why do you have 15K in CC debt and what's the interest rate on that?
What's the interest rate on your student loans and is it fixed or variable?

[ndwilli6]

I'm going to assume that you are looking for advice on real estate?

A good place to start would be to focus on getting rid of the bad debt. The debt on your real estate is for a cash flowing asset. It could be argued that that is good debt, because it for an asset that increases your net worth, and your tenants are paying it for you. Your CC and your student loans are evaporating your cash flow. I'd want to get rid of those as quickly as possible.

I agree with CC. I want to pay that off immediately. I actually want to keep my student loans--reason being 1) longest credit line. I do want to lower the amount owed though.

You are brrrr'ing your properties I assume? It's a good way to build a portfolio quickly, just don't overextend yourself with debt. Pay down some mortgages before pulling too much cash out too quickly.

Thank you for this. I am. I completely agree and will begin working on lowering these mortgages.

Do you own your properties in a LLC? IF not, you should form one. Protect yourself and take advantage of the tax benefits associated with owning real estate. They say that if you are investing in real estate correctly, then you shouldn't be paying any taxes. The tax code was written to take advantage of owning real estate.

I do, but only a few are held in an LLC. Many lenders are stating that the note may become due-and-payable if I transfer title into an LLC.


Do you have a good team around you? An attorney, and accountant, a property management company, and a contractor?
I have a good attorney. I'm seeking an accountant. I am a RE agent (so I managed all of mine). I have two decent contractors...but no one in particular for every project.


What are your long term goals?
Honestly, just like everyone else...financial independence and financial freedom. I want wealth...not alot of cash, but actual wealth.

How many properties do you want to own and how much monthly cash flow do you want?
100 properties--SFH and multi-family/$50,000.00 monthly on average.


Being a millionaire is a good goal, but being financially independent is a better one.
Absolutely, 100% agree.


A million dollars is arbitrary. It might or might not set you free. Financial freedom is more powerful. Figure out how many properties you need and how much cash flow you need to be financially independent, and go for it.

I have an idea of how many properties I'd actually need to consider myself financially independent. That's 20 properties, with a cash flow $10,000.00 monthly. This is where I wouldn't have to work for anyone again..

[ndwilli6]

So basically you want to triple your net worth in the next 5 years. How did you arrive at that goal?
I felt like it was attainable... I created an excel file showing steps of how I can triple my net-worth almost every other year.

What significance is there to you to having a $1 million net worth at age 32?
It provides Security. Stability. And....Opportunity.

How much do you currently earn? From rentals? ($2,418.00 monthly) From my salary? ($3300 per month) From my part-time job? ($250.00-to-$250.00 per month)

What are your monthly expenses?
Credit Cards/Car Insurance/Personal Mortgage/Food/Personal Care/Student Loans/Gas--around $2,030.00-$2,100.00. Other household individual pays for electricity/phone/alarm system

Do all of your properties have stable tenants (as stable as a tenant can be)?
All are families...many state they want to buy the home and/or live in home long-term...

Why do you have 15K in CC debt and what's the interest rate on that?
They're credit cards I have used while renovating homes--accruing no interest. So, I wait to pay them off completely until month prior to accruing interest. It also helps my credit score.

What's the interest rate on your student loans and is it fixed or variable?

Fixed. 5.5%, but I do not want to pay off student loans as they're my longest credit line.

Hope I answered all questions.

[TexasHusker]

Say that to the 45 million + Americans living in poverty...most won't ever attain a 1 Million dollar net worth.

continue as you were.

[Singuy]

a million ain't what it used to be.

A mil by 32 is still something

[Singuy]

You earn $2,418.00 after expenses right?