We started Dad’s on F.I.R.E. because we are passionate about helping other dads (and moms) become financially free through real estate investing. We believe that we can help people by sharing the knowledge we have gained from our experiences and from others. Our goal is to build a community of like-minded individuals where we can give suggestions on books, podcasts, workouts, and other material to help us all grow as a parent, as a spouse, and as an investor.
This is not a coaching program, nor is it a place where we will be pushing any products on you. We have benefited significantly from working with mentors and being a part of communities of like-minded people. Without the guidance of these individuals we wouldn’t be where we are today. Now, we’d like to reach back and help others climb up the ladder toward financial independence.
F.I.R.E. is an acronym that stands for Financial Independence, Retire Early. The idea is to earn money through a traditional W2 job, save 25%-50% of your after tax income, and invest it into different investment vehicles. When your passive income from those investments exceeds your monthly expenses, you have achieved financial independence.
A challenge for many that want to pursue the F.I.R.E. method is choosing an investment vehicle. We believe that we have discovered the ideal investment vehicle for a dad that longs to create passive income and build wealth for his family. If you have had the chance to read our free e-book, “5 Steps to Passive Income for the Full-time Dad”, you know that our investment vehicle is multi-family investing. We believe this is the best investment to create passive income and build wealth! Here are several reasons why we love buying apartment buildings:
- Leverage – If you decide to purchase an investment property, you will likely only need to come up with 20% of the cost of this asset in order to purchase it. When you purchase a stock, bond, or bitcoin, you’ll need to come up with 100% of the purchase price. While you do need to be careful using leverage, this tool allows a dad who doesn’t have a huge savings account balance to purchase a much larger asset. For example, with just $20,000 you could purchase a $100,000 house that rents for $1,000 per month. Even though you only put down a small portion of the purchase price, you are still entitled to all the benefits. You get to keep all of the passive income generated, all of the equity built up over time, and all of the appreciation of the property.
- Depreciation – Imagine a farmer bought a tractor for their business. That tractor is only going to last for a certain number of years until the farmer needs to purchase another tractor. So, the IRS allows the farmer to deduct a percentage of the cost of the tractor from their taxes each year. Likewise, the IRS allows you to do this with your investment property. Interestingly though, the magic of real estate is that while you get to decrease your tax bill, the value of real estate tends to go up in value over time, not become worthless like a tractor.
- Equity – When you own rental property, your renters will actually be paying the mortgage for you as the income from your rent collections will exceed your expenses. At the end of the mortgage period, you will own the entire property.
The most common question we get is, “How can a couple ordinary guys like you purchase an apartment building?!” That’s a great question. We never imagined we could purchase an apartment building. We assumed only institutional funds and millionaires could buy an apartment building.
We’ve learned that purchasing an apartment building is not as complicated as is seems and is attainable for everyone. We use a method called apartment syndication. This method involves gathering like-minded individuals who want to invest in real estate, pooling everyone’s money together, and purchasing a large asset (apartment building) together!
The apartment building is managed by a professional property management company. The rent collected from the residents pays for all of the expenses, including the mortgage payment, and provides extra profit that is distributed to all of the investors. Thus, all those invested receive passive income and build incredible wealth!
If you would like more information please leave us a message or reach out to us!
(Disclaimer: We are not here to give financial advice. We are here to help give you the tools that have helped us go down the road of financial independence.)
