BiggerPockets Money Podcast

498: Paying Off $118K of Debt in 2 Years and Buying Real Estate (16 Units!)

Jan 30, 2024

Sarah King, a guest on the podcast, shares her journey of becoming debt-free in just two years and buying real estate with 16 units. She offers advice on getting your financial house in order before buying properties, leveraging retirement accounts, and responsibly using private money. She also discusses the real estate investing strategy of house hacking to cover mortgage payments each month.

44:05

Episode guests

Sarah King

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Episode notes

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Quick takeaways

Paying off debt and being a good steward of finances are essential before diving into real estate investing.

Having multiple ways to pay back loans and building a strong financial foundation are crucial for success in real estate.

Deep dives

Sarah King's journey out of debt and success in real estate investing

Sarah King shares her story of how she was able to find success in real estate investing after paying off $118,000 of debt. She discusses the importance of getting out of debt and being a good steward of your finances. Sarah also shares her experience with private lending and emphasizes the need to have multiple ways to pay back the loan. She talks about the slow and steady nature of real estate investing and the importance of building a strong financial foundation before diving into real estate.

Introduction

2min

Overcoming $118,000 of Debt

7min

Investing Retirement Funds in Real Estate and Vacation Home Management

5min

Selling Cars and Prioritizing Long-Term Goals

9min

Different Backgrounds and Sponsor Advertisements

4min

Divorce and Starting Over

17min

Turning New Year's Resolutions into Reality: Finding an Investor-Friendly Agent

2min

Real estate investing is a popular path to financial freedom, but if you’re not careful, bad debt can get in the way. Before today’s guest could buy rental properties, she had to deal with the mountain of debt that stood between her and wealth. But thanks to aggressive saving and new money habits, she became debt-free in just TWO years!

Sarah King has been thrown several curveballs on her journey to financial independence. Just when she had managed to pay off $118,000 of debt and buy five properties, her marriage ended in a nasty divorce. Forced to liquidate her and her husband’s assets, Sarah was back at square one. Rather than giving up on her dream of reaching FIRE, she overcame her shaky financial situation and found creative ways to buy real estate. Within a few months, she was back on her feet, and today, she owns sixteen units across ten properties!

In this episode, Sarah offers some crucial advice for aspiring investors—including why you should get your financial house in order before buying properties, how to leverage your retirement accounts to buy more properties, and how to use private money (responsibly). You’ll even learn about house hacking—the real estate investing strategy Sarah uses to cover her mortgage payment each month!

In This Episode We Cover

How to reach financial freedom by investing in real estate

The three areas of your finances that will help you build wealth faster

How to pay off BAD debt as quickly as possible

Why you MUST get your financial house in order before buying properties

How to use private money to buy MORE real estate

Covering your mortgage payment with the house hacking strategy

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums

Finance Review Guest Onboarding