#369: Should I Buy More Rentals or Pay Off Debt? (Here’s What I Did)

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Nov 11, 2024

In this discussion, real estate investor Erion Shehaj shares his insights on the dilemma of acquiring more rental properties versus paying off debt for financial freedom. He reflects on his own journey starting from the 2008 foreclosure wave and emphasizes the importance of having a solid investment blueprint. The conversation explores the balance between growth and financial responsibility, the transition to multifamily investments, and the need for adaptability in strategy amidst personal changes. Erion offers thoughtful advice on navigating the complexities of rental investing.

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INSIGHT

Transitioning to Harvesting

Transitioning to the "harvester phase" involves shifting from growth to enjoying wealth.
This transition depends on individual factors like burnout, health scares, or simply changing goals.

ANECDOTE

Erion's Investment Journey

Erion Shehaj bought his first property, a HUD foreclosure, in 2008 and lived in it for five years.
He gradually transitioned to small multifamily properties and now has a large portfolio.

ANECDOTE

Chad's Mini Harvester Phase

Chad Carson experienced a "mini harvester phase" during the Great Recession, selling properties and using owner financing.
This allowed him to take a four-month mini-retirement, highlighting the non-linearity of financial freedom journeys.

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The 4 Hour Workweek

Timothy Ferriss

In 'The 4-Hour Workweek', Timothy Ferriss presents a step-by-step guide to 'lifestyle design', encouraging readers to question the traditional notion of retirement and instead create a lifestyle that prioritizes freedom, adventure, and personal growth. The book teaches how to outsource life tasks, automate income, and eliminate unnecessary work using principles like the 80/20 rule and Parkinson’s Law. Ferriss shares his personal journey from a corporate workaholic to a location-independent entrepreneur and provides practical tips and case studies to help readers achieve similar results. The book emphasizes the importance of focusing on high-value activities, taking 'mini-retirements', and living life to the fullest in the present rather than deferring enjoyment until retirement.

The Small & Mighty Real Estate Investor

Discover exactly how to buy, finance, and manage a small portfolio of rental properties that gives you all the flexibility you need.

Chad Carson

Chad Carson's "The Small and Mighty Investor" offers a practical guide to building wealth through real estate investing. The book shares Carson's personal journey, highlighting key strategies and lessons learned along the way. It emphasizes the importance of starting small, focusing on cash flow, and building a sustainable investment portfolio. Carson provides actionable advice on finding deals, managing properties, and navigating the challenges of the real estate market. The book is a valuable resource for both aspiring and experienced real estate investors.

The four pillars of investing

William Bernstein

This book provides a detailed approach to investing by emphasizing four essential pillars. The first pillar, investment theory, explains the relationship between risk and return and the importance of diversification. The second pillar, history, highlights the importance of understanding past market trends to make informed decisions. The third pillar, psychology, addresses the behavioral biases that can affect investment decisions. The fourth pillar, business, discusses the financial industry and how to navigate it effectively by minimizing costs and avoiding biased advice. Bernstein advocates for a long-term, buy-and-hold strategy using passively managed index funds and emphasizes the need to control costs and ignore most investment media[3][4][5].