Topics covered: comparing job offers, financing a home conversion, finding excitement in auto-investing, saving $60,000 in student loan interest payments
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Quick takeaways
Don't prioritize salary when making career decisions, focus on learning experience and potential upside gains.
Calculate the cap rate of rental properties to determine profitability and consider selling if the rate is low.
To generate funds for a down payment, consider borrowing against the equity of current properties instead of selling, considering high transaction costs.
Deep dives
Considering a Move to a Small Business
The caller is contemplating a decision between a corporate position and a small business opportunity. They express a desire to work for a small business and run their own business in the future. They have a clear plan, including increasing salaries, rental properties, and their next home purchase. They are seeking advice on whether to sell their current homes or investments to generate funds for a down payment.
Salary Is Not the Primary Consideration
The caller is reminded of the importance of not prioritizing salary when making career decisions. They are advised to focus on the learning experience and potential upside gains, such as profit share or ownership stakes, when evaluating job offers.
Cap Rate Analysis for Rental Properties
The caller is advised to calculate the cap rate for their rental properties to determine their profitability. If the cap rate is low, they may consider selling the properties. If it is high, they may choose to keep them.
Borrowing Against Home Equity
To generate funds for a down payment on their next home, the caller is advised to consider borrowing against the equity of their current properties using a home equity line of credit or home equity loan. This would allow them to access the cash without selling the properties.
Consider Transaction Costs
The caller is reminded of the high transaction costs associated with buying and selling properties, and encouraged to consider holding properties for long-term wealth building rather than selling unless necessary.