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From Tech to Financial Independence Through Real Estate · The Academy Presents podcast

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  Did you know that 90 % of the world's millionaires
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  invest in real estate? Well, I'm Angel with the
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  Academy Presents Real Estate Investing Rocks,
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  and I'm here to help you if you want to go for
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  your piece of that pie. Are you new? Are you
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  new to this and you just don't know where to
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  start? It's okay. Are you someone that has invested,
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  but you feel stuck, you feel like you've lost
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  momentum, you don't know where to really head
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  from here? Are you a seasoned real estate investor
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  who is doing great but maybe you just want to
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  hone a few skills here and there? This is the
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  place for you. The Academy Presents Real Estate
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  Investing Rocks podcast will connect you with
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  industry experts so that you can save time, avoid
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  costly mistakes, and begin living the life you've
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  dreamed of all through real estate investing.
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  You're already taking the first step. just by
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  joining us here today. Hey guys, it's Angel and
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  I am so glad to have you here with us at the
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  REI Rock Summit. We do this twice a year. It's
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  my six favorite days of the year. I get to learn.
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  I'm right here with you. I've got my notebook
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  and my pen. I'm taking notes and it's just awesome.
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  I love this. It's our eighth summit. That's insane.
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  I just love getting to meet new people and learning
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  more about my friends and fellow panelists and
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  fellow presenters. And this is just awesome stuff
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  to me. So I'm going to hand it over. Prolet,
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  I'm going to let you kind of take over here with
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  your presentation. And guys, remember, if you
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  want to join us on the live side, which Prolet's
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  going to be over there a little bit too, if you
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  want to join us on the live side, you can do
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  it through the VIP upgrade ticket or the VIP
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  subscription, which is a little less expensive.
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  So I would try that VIP subscription. And other
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  than that, Prolet, I'm going to let you take
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  over and kind of just do your thing because it's
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  going to be amazing. Thank you, Angel, for inviting
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  me to the summit. I am really excited to share
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  some of my story. As you see from the title,
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  I'm going to talk today coming from tech. getting
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  to financial independence through real estate.
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  Today, I'm going to share a little bit about
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  me. We're going to go through my actual portfolio
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  allocation, and I'm going to talk a little bit
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  more about financial independence, syndications,
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  and pros and cons, as well as my overall results.
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  So without further ado, let's dive in. First,
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  a little bit about me. I have been working in
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  corporate world for the last 20 plus years. Luckily,
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  last year, I managed to actually finally leave
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  my corporate world and focus specifically on
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  investing. Throughout those 20 plus years, I
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  worked in business intelligence, engineering,
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  and design, and I helped LeapFork, Autodesk,
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  and DocuSign bring their products to life. With
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  that, I also currently have 25 plus alternative
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  asset deals. And in my spare time, I actually
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  enjoy traveling. You can see some of the traveling
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  on the bottom from my most recent travels. I
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  like hanging out with my husband and with my
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  cats. And I promise you there is cat tax at the
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  end, so you will see it. I love real estate.
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  So now also in my spare time, I have founded
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  Weld Cindy, which will be a product for passive
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  real estate investors. But for now, we're going
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  to focus on my path. So before we dive into my
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  path, though, I do want to set a couple of terms.
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  So we are both on the same page and we understand
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  what we're talking about. Oh, and by the way,
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  yes, I usually have red hair. You can recognize
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  me if you see me at any conferences, just say
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  hi. So financial independence or what is called
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  the FIRE movement. I'm not sure how many of you
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  are familiar with, but FIRE, which stands for
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  financial independence, retire early, with retire
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  early in parentheses because retiring early is
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  not for everyone, but financial independence
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  is. So the FIRE movement has been around for
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  a while. I personally started pursuing financial
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  independence before even being familiar with
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  the actual fire movement. So for you, please
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  go and educate a little bit about yourself because
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  you will find what is your right number. From
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  that perspective, fire is all about retiring
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  early. And retiring early means what can you
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  live off? So there are four levels of fire and
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  there's a couple of other variations, but what
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  I'm just going to show you real quick is lean,
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  fire, chubby, and fat. And you can see they range
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  anywhere from living off of $40 ,000 a year all
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  the way to 200 ,000 plus. And underneath that
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  number, you will also see there is a number in
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  millions. approximately how much money you need
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  to have invested in order to sustain your financial
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  independence for at least 30 years in retirement.
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  Now, as you get into it, you will learn about
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  the 4 % rule, which basically means that if you
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  are living off of 4 % of your investments, you
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  are pretty much guaranteed to have good savings
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  or complete retirement for at least 30 years.
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  Couple of calculators, I put it on the bottom,
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  check them out, see what works for you. But what
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  we're going to talk a little bit later about,
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  though, is how this idea of fire can change a
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  little bit based on are you investing in stocks
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  only or are you also investing some in real estate?
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  Now, the other term I want to kind of do a level
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  set on, because I will be using the term a lot,
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  is real estate syndications. If you are part
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  of the summit, you already probably have gotten
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  a bunch of other people defining this. I want
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  to define it a little bit more from passive perspective.
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  Real estate syndication really is the act of
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  a bunch of people getting together in order to
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  invest in a larger asset. If you're investing
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  in a single family home, you're probably investing
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  by yourself. But once you get to like 100, 200
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  larger properties, Really, you need that additional
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  money. And the best way to do it is through syndication.
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  The difference between a syndication and a joint
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  venture would be that in a syndication, you have
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  two sides, limited partners and sponsor or general
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  partners. I like to be on the limited partner
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  side. I like to just give money to people and
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  that. get money back. But there is a lot of great
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  sponsors out there that actually are the ones
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  who find the deals, work the deals, sell the
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  deals, they do all the work. So all the tenants,
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  all the repairs, all of that things I don't want
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  to deal with, they do it. So this is kind of
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  a primer mainly because now when I invest in
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  real estate, I primarily invest through a real
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  estate syndication. So this way we know what
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  we're talking about. Okay, let's dive in a little
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  bit through my journey. And my journey in real
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  estate kind of started in around 2004 when I
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  first bought my primary residence. And I kind
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  of started learning more about real estate. And
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  around 2010 is when I decided to dive in and
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  actually start investing to single family homes.
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  I bought two homes and there were cash flowing.
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  It was great. The tenants were great at that
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  time. So in my mind, I had this like really cool
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  idea in my head. I'm going to go and I'll invest
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  in single family homes. I will need X number
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  of doors with their cash flow so I can live passively
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  on that income and I would not have to work.
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  To be fair, in around 2010, 2011, There is not
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  that much information around any other investing
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  types. Real estate syndication was barely a term
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  that I heard, but there was not as much information
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  like this wonderful summit where you can go and
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  learn about it. It took me a while with a lot
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  of planning about single -family homes and buying
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  more single -family homes until I learned about
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  syndications and I was like, oh my God. who in
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  their right mind will invest in single -family
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  homes instead of going directly to syndications.
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  Now, this is coming from passive perspective,
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  where I did have funds to invest. So for me,
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  it was just a no -brainer. Now, unfortunately,
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  again, the information was not as much available.
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  didn't know early enough that there are other
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  possibilities to invest in syndication outside
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  of being an accredited investor. And I wish that
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  I could spend time going and learning at events
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  like this. So I can know that even if you are
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  not an accredited investor, you can invest in
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  other syndication like 506B. If I knew that,
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  I would have started investing earlier. And frankly,
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  I probably would have been financially independent
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  much earlier than I was. So starting in 2017,
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  I basically focused on investing on syndications.
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  I became accredited and the rest is history.
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  Since then, I've only had one other single -family
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  acquisition and that is my current primary home.
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  Now, during that time, I left Fleet Frog. I was
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  in Autodesk right before I joined DocuSign, which
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  was about three years ago. I kind of already
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  knew that I will be financially independent soon,
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  but the role that was provided for me at DocuSign
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  was such an amazing opportunity and so interesting
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  that I decided to continue for two more years
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  and start planning my exit early on. I planned
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  my exit for a year and a half prior to actually
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  leaving DocuSign. The time after DocuSign, I
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  spent my time basically going to a bunch of real
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  estate events, learning more, just like you guys
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  are learning now, traveling the world and working
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  on a side passion project of mine. Okay, now
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  I know that a lot of you have probably not really
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  seen. what people's portfolios look like. And
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  I decided that as part of this presentation,
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  I really wanted to share this. So hopefully it
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  can spark conversation between passive investors
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  about allocations. So without further ado, this
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  is my high level portfolio allocation. So I am
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  currently in about 58 % alternatives and 42 %
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  stock. For me, That is okay. For you, it might
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  be a different distribution, but I highly, highly
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  encourage you to always think about diversification.
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  I am not a proponent of like, let's go into real
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  estate 100 percent. That is not the best answer
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  for me. I'm going to leave it to you to decide
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  what is the best answer for you. I still believe
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  in having stock, although I would say that from
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  when I started investing to now, I have moved.
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  slowly and slowly into more alternatives than
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  actual stock. And for stock, I tried it. Didn't
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  work for me. If it works for you, great. But
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  I still believe in having kind of more broad
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  market funds, mainly because single stock selection
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  did not work for me. Now, so I have a question
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  on this part. On the stocks, you don't there's
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  no there's no taxation unless you sell something
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  right? That is correct or you get or you get
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  you might be taxed on dividends if you're getting
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  dividends from okay so then can the depreciation
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  from your alternative investments counter the
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  dividends that you're making in stocks? Unfortunately
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  not. but always talk to your CPA if and sound
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  how magic they can figure it out. But in a couple
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  of slides, I'm going to mention a little bit
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  about taxes for real estate.