RETIRE IN 3-4 YEARS WITH A FEW HOMES (PART 1)

People nowadays think that retiring young is stuff of fairy tales and that the AMERICAN DREAM IS DEAD, that everything they do and will do is in vain. Is really sad how hard working people are living paycheck to paycheck not being able to save any money aside or invest in anything. The first thing you need to figure out is how much you can cut down in your spending. For example what are YOUR WANTS VS YOUR NEEDS

Create a Budget sheet, even if you think you can't save any money, there's always light at the end of the tunnel. You'd be quite surprise about how much money you can actually save by just cooking more than eating out all the time. Cutting down spending on your GROCERY BILL: Eating simpler items like lentils, beans, peas, etc cheap and healthy foods rich in fiber and good for you.

Keep all that extra money in a savings account which will eventually become your REPAIRS fund or BACKUPFUND/EMERGENCY FUND (For emergencies, etc when repairs are needed down the line or other things) You may not actually know but you don't have to be a 9-5 SLAVE, there are several ways to not only live frugal and keep savings, for a later investment in Real Estate (this of course will depend in several factors which i will be explaining) Now I know there are tons of people out there who will have many different opinions about things i say, but this is just from my own personal experience and what has worked for me, I figured I'd post it on here and share my successes from many failures.

GOOD DEBT VS BAD DEBT

Now i know what you are probably thinking, but my financial adviser (assuming you have one) told me no debt is good. now there is some truth to that to an extent in regards to having debt can definitely be a bad thing especially School loans which are pretty much about the worst debt you can have, since even if you file BANKRUPTCY they will NOT GO AWAY.

Work DEBT on your favor, I didn't care too much to build credit history for my when I was just starting out on my first job at age 16 and how can you blame me, most teenagers don't =). I then suddenly realized at 23 the importance of building and having good credit and that is when i bought my first home. Although there are many mistakes which i wont mention many because this would go on forever but one of them was: I did not inform myself about the NO DOWN PAYMENT loans in certain areas available in many states, that would have saved me a ton of $$$$. Nor did I know about HOUSE HACKING (Something i will also explain below)

NO DOWN PAYMENT? HOUSE HACKING? What's this?

Your first home is your BEST INVESTMENT! And its NOT AN ASSET unless you create a POSITIVE CASH-FLOW As by definition by Mr Kiyosaki. from (Rich Dad Poor Dad). As i mention before there are GRANTS available for FIRST TIME home, HELL EVEN SECOND TIME home buyers in some areas. It blows me away people are still renting and not building their Real Estate Portfolio. This is a great way to buy your FIRST home with an FHA grant (check with your local and state government for additional rule, etc) which will subsidize most if not 100% of the down payment which means NOTHING our of pocket for you! Now i know some folks will say but yes the rates are higher as far as the Interest % and yes, the bank ALWAYS gets their way, BUT this is a great way to start with little to no money down.

HOUSEHACKING?- This is a term im using from the BP Guys at bigger pockets my favorite Real Estate forum. The purpose of this is to have someone else pay for most if not ALL of your mortgage while you live in the home, and you can go about this many different ways, but my favorite, is MOTHER-IN-LAW units. Yes that's right rent out your mother in-law apartment and live in the rest of the home. you can pretty much lower your mortgage payment by about 75% if you do it right and of course are able to find the tenant to rent it out, which should not be that hard given the market condition at the time you do so. You can also get room mates and rent out rooms in your home, i guess this all depends on you and your comfort level.

(PART 2 TO BE CONTINUED)