Welcome to the first Cashflow Hackers email! 👋🏼

So January is gone and I feel time sliding through my fingers real fast..

Happy February! I’m organizing a FIRE Party every Friday at 11am CST this month, please come hang out! 🤗

FIRE is Financial Independence Retire Early.

The concept is to save as much as possible (about 70% of income) while working to be able to accumulate like 1 million dollars to invest and then live off the dividends or small withdrawals (3-5%) of the investment. So you do not have to wait until 65 to retire on social security money. 🥹

Several FIRE retirement variations have evolved within it.

• Fat FIRE - This is for the individual with a high salary and aggressive savings and investment strategies for it to work.

  It’s for people who are older and further away in their career, have kids and plan a financial independence for the whole family.

  (It’s tough to reduce the current standard of living if you have kids..🥹)

  Like when I say I aim for $20,000 of real passive income per month, I want a Fat FIRE.

  I have to be able to get $240,000 per year for my living expense while still have investment money constantly working for me.

• Lean FIRE - This requires real minimalist living and extreme savings, like living on $25,000 or less per year.

  This works well for younger people working for a few year and then quit to just live and travel on a budget.

• Barista FIRE - This is for people who want to quit their traditional 9-to-5 jobs but use a combination of part-time work / side hustle / small business and investment to live a less-than-minimalist lifestyle.

Unless you become a monk and lead a monk life, just the Fat FIRE people are the people who really break free from selling time for money or have to be on the budget all the time.

But how much do you need to accumulate so 5% of your investment fund equals $240,000? It’s just around $4.8M. 😳

Hmmm..

Good news is

There’s a way to hack it! 

You don’t have to wait until you accumulate $4.8M.

You just need $1.2M over 5 years to generate the same income infinitely!! 😄

It works like this:

Year 1: You save up / cash out equity in the rental houses / sell some stocks / whatever needed and invest $240,000

Year 2: You do the same, invest $240,000

Year 3: You do the same, invest $240,000

Year 4: You do the same, invest $240,000

Year 5: You do the same, invest $240,000

Year 6: Yay, you get 240,000 back! And reinvest the $240,000 profit.

Year 7: Yay, you get 240,000 back! And reinvest the $240,000 profit.

Year 8: Yay, you get 240,000 back! And reinvest the $240,000 profit.

Year 9: Yay, you get 240,000 back! And reinvest the $240,000 profit.

Year 10: Yay, you get 240,000 back! And reinvest the $240,000 profit.

Year 11: the same…

The strategy is to invest in multifamily syndication so in the years of exits, they will give you $240,000 profit and then you can keep re-invest.

So simple right? 😇

That’s the idea: simple but hey… very hard to follow! 😅

Because not a lot of people know this.

For a long time real estate syndication is saved for high net worth individuals, people like Paul that I mentioned in my talk during the Real Estate Expo in Philly. 🤑

Even we know, it seems too good to be true and then we get pulled in several directions, making our life more “interesting” by doing other things, rather than following the simple proven method. 😒

If you haven’t, watch this webinar to understand more about FIRE and see the comparison between syndication and stock market.

Please use my friend Prolet’s calculator to do a simulation to see when you can reach your number.

For me, it’s another 5 years, until our family can do a Fat FIRE!

I’m doing that by slowly adjusting our portfolio to accumulate more syndication funds and letting the single family houses go.

PS: I just launched a new Fund investing into a 323 unit asset in Fort Worth open for investing until this February 16th 2024.

Happy jump on a call to talk FIRE and help get you closer to your goals! 🙌🏼

Like these ideas?

Please share this Newsletter with someone you think would appreciate this!