Our 1st equity Mil.

[agent007]

Hi all,

This year a milestone in our financial plan has been achieved. We've reached our first $1M in equity!. It happens 2 years before originally planned. When we started this journey, we thought that a million $ was a lot of money and that somehow we’d feel different. But, the reality is that we feel the same. We still feel poor though, with a rich mind set. No doubt that the big difference between then and now is the knowledge. Nonetheless, we still feel disappointed.

According to our calculations, the next equity Mil will come in another 3 or 4 years. This time around we have no expectations and most probably will still feel the same.

Our relation to $ and finance had evolved along these years. The way we structure deals, even simple ones, is different to what most of the people we know do. It is a lot of fun For this, I have to thank you all forumates!!! You have been great teachers and mentors. Suffice to say that if we'd have follow our then financial advisers advice, we should have about $150k-$200k equity at the most instead of the Mil.

Thank you all,

James.

 

[Simon]

Cool

 

[Simone]

Hi James,

well done! We can relate to your post and feelings as we have also hit our first Mil. in equity this year. It sounds like you had a very structured plan for your investing. I read a thread the other day that said the first mil. is the hardest I must admit I was thinking hang on - you mean the 'expectation' is to do it quicker now!! But it has me thinking, about 'the plan' can I ask about your journey - was it just through property investing?

 

[sailor]

Hi 007...well done....tis an excellent achievement.

Several years ago...sitting with a friend waxing lyrical over a champers, she said she was aiming for her first mill. I was gobsmacked! I thought her dreams were really out of my league. She said I could do it too. So I thought...why not me! I quite surprised myself when I got there. So now...like you...I'm aiming for the 2nd mill.

I have a mentor, who taught me about LOE and LVR...magic stuff! I too have learned an enormous amount from this forum and devour the posts for breakfast daily.

 

[Pete]

Congratulations, James, on the milestone and the new mindset; for growing yourself as well as your wealth.

Any rewards planned to mark the achievement?

 

[kissfan]

According to our calculations, the next equity Mil will come in another 3 or 4 years. This time around we have no expectations and most probably will still feel the same.

Well done 007.

Dont be disappointed by your achievement not making you feel any different. You have done more than most of the punters will ever dream of.

If you don't mind me prying, how do intend on getting that next million in 3-4 years? Buying more, paying down?

Regards
Marty

 

[MichaelW]

Well done James!

Welcome to the $1M equity club We're only just there ourselves, but have designs on making the next mill in the next few years too. A three townhouse development whilst holding the other existing IPs coupled with a Sydney recovery should just about get me another $1M in equity, then I'll be looking for the third mill...

Congratulations and don't stop now!

Cheers,
Michael.

 

[ani]

That's great James

I'm like you, without this forum I'd be nowhere fast!

 

[lizzie]

well done james - don't discount what a big achievement that is.

i admit the more equity, debt and assests we have, i don't feel any different except that i am a lot more relaxed about money. it doesn't stress me in any manner or form. but we still do live the (relatively) same lifestyle.

kinda nice knowing you "can" cash it in an do other things if you want. sort of like going to work even when you don't have to - all of a sudden it's not a chore but a delight.

the next mil will come around before you can blink - but don't take out too much time counting it, just make it.

 

[McBrain]

Well done James.

Would you be able to expand on the following comment:

The way we structure deals, even simple ones, is different to what most of the people we know do. It is a lot of fun

I'd be interested to hear what you mean by that.

McBrain

 

[Dazz]

Good onya James.

Despite inflation and all of that, achieving that level is definitely a worthy pursuit.

Hopefully it sets you up for bigger and better things down the track.

Enjoy the journey.

 

[Les]

G'day James,

Well done mate.

I particularly liked Lizzie's words:-

kinda nice knowing you "can" cash it in and do other things if you want. sort of like going to work even when you don't have to - all of a sudden it's not a chore but a delight.

Regards,

 

[alexlee]

I got slightly depressed when I checked my net assets. I was thinking, Ok, by most definitions this is a VERY healthy net worth. But it's not nearly enough to live off the income. I realised that I had a LOT more portfolio building to do.

Either my target lifestyle is high (true) or the milestones just aren't what they used to be.
Alex

 

[Sultan of Swing]

Great job James, well done!

 

[agent007]

Hi James,

well done! We can relate to your post and feelings as we have also hit our first Mil. in equity this year. It sounds like you had a very structured plan for your investing. I read a thread the other day that said the first mil. is the hardest I must admit I was thinking hang on - you mean the 'expectation' is to do it quicker now!! But it has me thinking, about 'the plan' can I ask about your journey - was it just through property investing?

Hi Simone,

It's done mostly through direct residential property investment- "the engine" (>50% of the portfolio). We prefer the buy-and-hold strategy. However, there is a % in the equity market- "the oil" (direct share investment, MF and share options).

Cheers,

James.

 

[agent007]

Well done 007.

Dont be disappointed by your achievement not making you feel any different. You have done more than most of the punters will ever dream of.

If you don't mind me prying, how do intend on getting that next million in 3-4 years? Buying more, paying down?

Regards
Marty

Hi Marty,

Well, our equity in the portfolio is just a % of it. It's now the task of the portfolio to give us a son/daughter . Our portfolio has never stop growing even during this time of the cycle. Of course, the rate of growth is in single digits. Nonetheless, current rate of growth by itslef will guarantee success. On the other hand, I know I can't seat on my hands and watch how the grass grow. I've plans for some small developments.

In regard to the last question you asked (paying down?). Pls, let me tell you that if I get my way, I'll never pay down a cent of capital. I just don't see the point of doing it. The longer I hold the capital the more irrelevant it becomes to pay down the principal. Just think about this, 100 years from know, all the millions I owe would probably be an average monthly wage... On the other side, the equity in the profolio would be huge. Though, I won't be enjoying it. Someone else will

Rgds,
James.

 

[agent007]

Well done James.

Would you be able to expand on the following comment:



I'd be interested to hear what you mean by that.

McBrain

Hi McBrain,

I don't think I do anything speciall. Most of the forumates here I guess do the same and even more. The basic points I'd say are (in not particular order):

1-putting as less of our own $ as possible in any deal.
2-putting every $ we have to work as hard as possible for as long as possible (this sounds like explotation )
3-looking at all possible ways to legally maximise TAX efficiency
4-using legal structures to protect wealth

In practical terms, all these translates to borrowing $ in order to borrow more $ which in turn borrow more $. During this process, several trees are killed with all the paper work required for a simple transaction.

 

[Simone]

Thanks James for the reply. Our strategy thus far has been 100% buy and hold. This has worked well for us but I have wondered if we should begin to look at other avenues as we now have the financial backup.

 

[McBrain]

It's done mostly through direct residential property investment- "the engine" (>50% of the portfolio). We prefer the buy-and-hold strategy. However, there is a % in the equity market- "the oil" (direct share investment, MF and share options).

Great analogy! I love it!

 

[lizzie]

Either my target lifestyle is high (true) or the milestones just aren't what they used to be.
Alex

it's the milestones alex ... a million just ain't worth what it used to be.

five million is now the new million.