Today we started off by having a speaker come in and present to us. Her name is Ms. Littlepage and she specializes in real estate. Over the last 25 years, she has bought over 250 different units and she talked to us about how she makes money from them. We walked through all of the expenses you pay when buying a property, and strategies to make renters pay your mortgage for you. Typically, she pays around $100,000 per 1,000 square feet for her properties (which are mainly located in Montrose). For example, one of her properties cost $400,000 and there were four different rooms which she could rent to four different tenants. She put 15% down of the house, which means she has to take a 20 year 340k dollar loan. That’s a monthly payment of 1,416$. She would likely rent the house out at around $900-1000. We’ll say $900 a month which means she makes $3,600 a month off rent. But she also has to pay insurance which is around $200 a month and property taxes which are $567 a month. That leaves 1,417$ a month in profit. Her renters are paying off her house and helping her build equity in the home, as well as making her a nice profit. Of course, there will be months in which tenants leave or months where something breaks down but for the majority of the months, she will be profiting. Along with this, after the 20-year mortgage is fully paid off, she no longer needs to pay it which adds another $1,416 to her monthly profits! She also now fully owns a house which she can likely sell for more than what she bought it for. Technically, she only paid $60k for a $400k house because after the down payment, her renters are paying off the mortgage.
Then, in the afternoon, we finished our Game of Life. We rolled dice to see what events would happen during our lives. For each year that passed by, we rolled two dice. There were very miniscule events that could happen such as finding $100, or getting $1,500 paid back to you, all the way up to paying 80,000 in medical costs and being out of work for 4 months. Like in real life, our results varied. Personally, my end game wasn’t affected that much by the rolls and I was still able to retire with a lump sum of money in retirement. But there were people like Nathaniel who were affected heavily which led him to going deep into debt. The game was a great preparation tool to see how much college will cost us and to help us experiment on different ways we can save for retirement.
Afterward, we had a brief seminar on the book, Your Money or Your Life. We mostly talked about how the book will make us think differently about money and I believe that the most impactful part of the book was when the author said that you're basically exchanging your life for money. You spend numerous hours of your life gaining money and that makes me second guess when I’m buying items. Were those hours of my life worth getting that new shirt? Good spending habits and not wasting your money or time energy was a large part of the book and it will definitely be something that I will remember throughout the rest of my life.
Then, in the afternoon, we finished our Game of Life. We rolled dice to see what events would happen during our lives. For each year that passed by, we rolled two dice. There were very miniscule events that could happen such as finding $100, or getting $1,500 paid back to you, all the way up to paying 80,000 in medical costs and being out of work for 4 months. Like in real life, our results varied. Personally, my end game wasn’t affected that much by the rolls and I was still able to retire with a lump sum of money in retirement. But there were people like Nathaniel who were affected heavily which led him to going deep into debt. The game was a great preparation tool to see how much college will cost us and to help us experiment on different ways we can save for retirement.
Afterward, we had a brief seminar on the book, Your Money or Your Life. We mostly talked about how the book will make us think differently about money and I believe that the most impactful part of the book was when the author said that you're basically exchanging your life for money. You spend numerous hours of your life gaining money and that makes me second guess when I’m buying items. Were those hours of my life worth getting that new shirt? Good spending habits and not wasting your money or time energy was a large part of the book and it will definitely be something that I will remember throughout the rest of my life.
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