In this episode of Grab the Map, Johnoson Crutchfield is excited to invite and talk with Tightwad Todd about their similarities of interest and passion in real estate investing. Tightwad will tell his story to you about his origins.
[1:40] Tightwad was a student of University of Florida studying in Business. He was introduced to a book that led him to change his outlook in life. 40 hours/week job isn't his cup of tea anymore. He bought tickets of ball games and sell it on Ebay that generates profit.
[5:10] He started a job but in about eight months he got laid-off. A time of great recession. There are also difficult period of his life; financial challenges. By then, it allowed him to reflect on what the future would be and what should be accomplished. The goal was to have a financial freedom not relying on a company that placed him in trauma.
[7:18] Tightwad took a job at mortgage banking looking finances of thousands of people.
[9:20] Tightwad started to buy distressed properties that's foreclosure and fix them up.
[11:42] Have a budget and have a plan to use your money to accomplish the things that you set out.
[17:16] As you're getting more involved your knowledge is growing to move forward to push through from these metal barriers. Education and finding that right mentor to help you push along because it's possible for anybody. Surround yourself in a circle.
[19:00] There was a mentor that was an eye opener for Tightwad. Accomplishing portfolios in the next 10 years.
[21:23] Have a clear criteria for what to buy. Refine them to know exactly what to buy. Know when to pull the trigger or pass. Find something that would generate a better return in the stock market. Stock market typically generates about 8% over the long term. He wants more over 8% return because time is gonna be involved. He ended up finding going with criteria that is 15% cash on cash return and 10% equity after the property rehab.
[24:38] The main goal or reward once hitting financial independence is to have a bucketlist and travel with fiancée.
[25:27} Tightwad come up with setting up a system where all of the phone calls will be routed to an email mailbox where all of the residents will have a maintenance request it goes into this inbox. This a property management system where someone is authorized to manage in behalf of Tightwad. He found a Virtual Assistant.
[26:55} The amount of money to invest from a couple of thousand (property management) down to a couple of hundreds (property management system).
[29:22} If you really want something, you need to pursue it. There's gonna be people that will support you in your journey and there's not no matter what you do. Just focus on becoming financially independent.
[32:25] The most important asset is TIME. We're not gonna be able to get the time BACK; a lot of it stems from the death of his dad's early death.
[36:22] Tightwad's journey is his budget was always the foundation of everything. It is the spending plan; what are the comfortable spending on and what wasn't. It's exciting to watch your income and savings grow and eye opening to see how much you can be spending on certain categories.
[39:28] Tightwad learned that he wants to help people financially free at an early age.
Mentioned in this podcast:
Connect with Tightwad Todd for coaching sessions at http://tightwadtodd.com/
If you are interested investing in real estate and make connections, shoot an email [email protected] Read on some of our blogpost http://grabthemapllc.com/.