Don't Overcomplicate a Mistake! (Hour 2)


You how excited we are to be here with fem. Ready to take your calls. So here's what we need you to do. Pick up the phone and dialed this number. Eight eight eight five five two two five again. That's triple eight eight to five five two two five if you've got some questions out there whether it's dealing with relationships anxiety job change money questions. Whatever it is. We're gonna do our best to guide you all right john. Are you awake and ready to go. I in what have you been working on in your show. I mean i know you. You're always doing something. These days me. We are talking about relationships and mental health and school and physical health and wore. every everything has gone people's lives right. How do you handle it when you find things out about your spouse or your boyfriend girlfriend. You didn't know about. How do you handle things when your kids show up with special needs or special challenges or medical issues all of it all in one big bundle manjit helping folks make the next right step part goodness. That's a lot of stuff but it's stuff that people are going through and it's called life and the most important thing to know is you don't need to go through life alone. You need to get the right people on your side the right information so you can make the right decisions so give us a call. We're excited to talk to you We're going to the phones because that's what we do. We've got jason. Who's in traverse city michigan jason. How are you doing well. good Good speak with you chris. John how we hope you today. But well i am a future everyday millionaire That is trying to get past how to get to that point with a financial decision. But i'm looking at and get free since two thousand thirteen. I i have no debt. I've got money packed away. And i'm looking at purchasing property Mini storage units. Because they got a late start on my retirement. And i think this would be a fast track to getting a retirement income post work that will supply me with a steady income in my years of retirement basically. So what for what you're looking at. What the dollar amount all right. So here's what i get The property currently has one mini storage unit on plus one large pole barn with storage the property is generating only about a thousand dollars a month so it needs to be expanded. So i'm looking at four hundred thousand dollar mortgage essentially which will include the purchase and erection of two new multi unit Buildings which in turn will allow me to have a much larger shovel to dig out of this debt. The income that comes from this property is not needed I run my own business. And i can easily live off my my current income as well as if necessary pay for this property on top of that. Okay so you what. How much are you making a year. Right now Let's let's just into a medium of eighteen. Okay and how much money you have sitting ready to be used as an investment Minus my emergency fund. Which is pretty healthy. Emergency fund l. Let's say a hundred k. Liquid okay and so in looking at this in the multi unit. How many units are you talking. Total two buildings edge two additional buildings with approximately thirty to thirty six units per building. Okay thirty two to thirty six. And the average rental price would be how much per unit. I granted different sizes five by five five eight eight by ten ten twelve but on average. What's the storage fee. I've i've done overall calculation. And i know that each one of these buildings on a conservative occupancy with conservative rental rates should generate between twenty five and three thousand a month. And that's that's not max next capacity. Obviously what about these buildings is over and above the thousand dollars a month for generating now Question i'm sorry. Are these new buildings you're going to build bigger fancier what what makes them different. The current current many unit. That's on there is only a sixteen unit Building other is it. Is it full capacity. Oh yes yes. Yeah yeah yeah absolutely. Yeah barron's fully to pass the and there are. The the large pole building has just opened space for random. Space storage okay. Yeah are harz boats. Ajc super healthy emergency fund. I of course that jumped out at me. How much over and above six month emergency fund do you have Let's let's call them another forty thousand okay. So hundred so essentially push come to serve. You got one hundred and forty k. That you could use toward this. If i needed to but if my logic my logic is correct your or if the direction are the reason i wanna keep as much of my liquid cash available. Is that way. I can use that for better. Negotiations for concrete work or building direction. rental equipment to do excavation things that are along with just having just making sure i. Yeah here. here's the deal. I can hear it in your head. You're a serial entrepreneur And you are itching to take on and and and that's where philosophically we're going to different like you know what i look at this and say. Hey i think sir at any business. I'm going to tell you to work on a business plan. I want to know what competition is in the area. How many other storage units are there in your area or air. You're thinking about living. Are they at capacity. Or is it an oversaturation Where there's too much. Also you also have to be aware just like what the rental property. Yes you do. Have these things that you're putting up in. Its new and on the start in. You're going to do it. But what's the rate of people falling off the wagon and not paying vin. You're having to now go in and do auctions and clear outs of this thing. So i don't think it's as passive as you're thinking it is. Is this something that in a year. You got a hundred and forty thousand. Let's just say straight up that you could use in capital Could you get a little bit more. Intentional you're self-employed making eighty. I think you're pulling my leg. They're a little bit You might be making more than this but but looking at this. This is something. I would strive to do with cash. Absolutely i would or very short term loan. Where maybe you're you're you're financing fifty fifty percent of it And i'm saying if then to me. I just you i i feel like you're gonna not only do this but then you're going to go on and do something else and the next thing you know you're going to look up you're going to have a million dollars in debt. Wonder how he got there. So i would adopt a ca cash debt. Free kind of been tally with any business. That you're going into to start small and maybe you start small. Maybe you start with what one hundred forty thousand get me that to capacity and get that humming and then save up money to be able to add the next one instead of building. The grand poobah mom's build a little poobah that's right and anytime you're trying to do something to quote unquote play catch up. I feel like i screwed up in the past. I've invested enough into non staring down the barrel retirement. So

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