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What a beauty! ❤️
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Mentor
Any thoughts on this book?
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Mentor
Go back four years and buy a $1m house on an interest-only loan. At 2.5%, that would make the mortgage be about $1,000. Then over the next four years, the property would appreciate to today’s $2m+
I bought mine while making about $110k IIRC
Wife and I bought a condo at age 28 for $800k with 15% down.
We are currently age 31 and have enough saved in equity and savings to comfortably purchase up to $2.3mm at 20% down. We’re planning to buy something closer to $1.9mm sometime in the next year or so.
Only reason this was possible for us was because we have a HHI over $500k.
I’m a lawyer and my wife is in medicine.
I actually signed a legal contract with my roommate so that we are always going to live together, our combined income makes HCOL home ownership more feasible.
I also sleep in the same bed as her and kiss her frequently.
Plot twist - i am my roomate😈
Coach
I own two $2M homes in additional to my primary residence. In my case these homes are mostly rentals / investment properties.
To get to that point I was an aggressive saver and got into real estate super early (24 with a $215k SFH). Similar to A1 I started with smaller homes, house hacked (lived in it and rented to others which covered my costs and Buick equity), and eventually I had enough saved up to buy more expensive homes and go for bigger investment opportunities.
I literally just googled Buick equity 😂
Big 4 partner. You’ll clear 1.5M after your third year
Right understand that MD1, but what you said makes a lot more sense now knowing that’s your base not TC.
Find richer parents obviously. On a serious note, I think we could do this and are very median for our area. Just turned 40. Bought first condo for 230 at age 26. Sold for 350. Bought first house for 490 at age 31. We redid it slowly pouring money in, sold for 850 or so. Bought another house at age 36 for about a million, now worth 1.3 to 1.4. If interest rates weren’t crazy, we could probably do 2 million, although it would probably make us pretty poor outside our house.
In your 30’s it’s either entrepreneurship/early stage equity that explodes/high income potential sales jobs (think commercial real estate brokerage)
1. Marry rich
2. Ask daddy to borrow some money
3. ???
4. Only fans
Four ways to get net worth my friend:
1. Entrepreneurial Route: High risk, high reward - create!
2. Corporate World - Reach Exec Level: Crank in industry and hope you are one of the ones that hits the C-ranks, particularly at large / public company.
3. Professional services: Heavily represented on FB. You reach partner level at any good size legal / consulting firm (and are successful at that level), you should have an income that if not all wasted let's you build strong net worth.
4. Really Cheap and Save: Some people with more modest incomes manage to spend very little of it and build up.
Probably some hybrids of those, good investments, trading up in houses, obviously inheriting, but I think there are multiple paths. You gotta figure out what works.
It’s ridiculous that nowadays a “high” income doesn’t afford you a decent house anymore. My spouse and I are a medical provider and a lawyer, HHI 300k and can’t afford a house in a HCOL area. With these prices and these interest rates, it will take years before we save for a down payment. Ridiculous.
But you only need a Downpayment of 3.5-5%
Don’t wait for 20
If you need this to be happy, godspeed
Don’t need it to be happy but tbh to live in the neighborhoods we’d like in any degree of comfort you probably do need to be able to afford at least $1.25. With todays rates, we’re most certainly not there yet at $400k HHI.
Crypto
Heard these narratives since 2016. Good luck all.
Most law firm partners I know are able to do this. I’m 29 and own a $~670k home but by my late 30’s I’m hoping to be able to upgrade.
Coach
This. Need to build equity early and roll it into the bigger house. Also, need to have high income and good bonuses. But also maintaining that 2mm house is a lot.
Or come from money.
Will stick to a 1mm home lmao
We bought our first home in Houston for 270k, sold for 425k. Rolled that equity into a $650k home and did a large remodel, now worth $1.2M. I never dreamed we could own a home of this value, but building equity and making smart investments makes it possible.
EY3 around 170k
In 20 years inflation adjusted prices will make 200k homes be worth 2m
Family money. We live in a neighborhood where median house price is probably 2.5-3m. Lot of people with family money. They are still smart and driven but definitely had a helping hand.
I’d say buying in a newly developing area and rolling that first house into the next house. Having higher than normal income also helps a lot. I’m 29 and I live in the suburbs of Houston. We purchased our home at 370K in 2019 and it’s worth around 550K conservatively. Our next property will
likely be in the 1-1.5M ballpark and our HHI is around ~450K. We’ll have more than enough when we sell this for a downpayment considering the equity pay down over the years plus our savings, investments, etc.
Most everyone I know who’s young is a combination of dual income AND an almost universal form of parental or grandparent loan or outright gifts. The reason you don’t hear more millennials whining then you might expect is because of the great wealth transference that is occurring silently.
Your parents- they die and leave you with something. Or your grandparents. Bam .
Why focus on owning a $2mm home? The taxes, upkeep, and utilities are absurd. Sure you'll be making enough to cover those costs but is there enough satisfaction to justify it? Seems inefficient and wasteful.