Michael Dominguez - The Armchair Real Estate Millionaire: If Youre Sitting There Anyway, You Might As Well Build Your Wealth

Copyright Copyright 2020 Michael Dominguez

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BAZINGA Publishing

www.armchairrealestatemillionaire.com

ISBN: 978-1-7774094-1-8 (print)
ISBN: 978-1-7774094-2-5 (ebook)

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This book is dedicated to all of the dreamers, who imagine more and want to live their best life. They want more wealth, more success, more choices and more freedom.

GETTING
STARTED

Y ou all know the question adults ask kids, What do you want to be when you grow up? You would always get the usual answers, like a policeman, fireman, teacher, etc. I wanted to be a millionaire.

Fast forward into my mid-twenties and I meet a girl, get married, have a son, get a responsible job, and get promoted a couple of times. Before you know it Im in upper-middle management in a retail organization, with a mortgage, other debts, few savings, and well into the rat race.

I remember thinking, How the hell did that happen?

I went through a lot of bumps to figure it out and reach the success I have today and well get back to that story, but what I want you to know now is: You dont have it all figured out on day 1 or even day 101.

Chances are by the time youve picked up this book, youve had some success in other ventures. Maybe youve built up a little cash. Perhaps you now have some equity in your home. Youre building a decent career. Regardless, youre ready to move forward and take the next steps on your path to financial freedom.

Over the years, my mentors provided me with a lot of advice and coaching that have brought me where I am today. I feel that it is my responsibility to pass along that knowledge, with my own take on it, to the next generation of real estate investors. Im honored that youre taking time to invest in yourself and are using my teachings as a part of that. I dont claim that any of the lessons in this book are new and original, but perhaps a little easier to comprehend through my interpretation.

I WANT YOU TO THINK OF THIS BOOK AS A ROAD MAP FOR FINANCIAL SUCCESS.

I was never mistaken for the smartest kid in the class. My grades were consistently in the bottom half. In fact, there would not even be a top half of student grades if it wasnt for people like me.

My goals were pretty simple. I wanted to build a portfolio of quality investment properties, all with positive cash flow and in geographic locations prime for appreciation. I wanted to add an investment property to my portfolio every year for 10 straight years. As an investment Realtor, I wanted to be the best and most knowledgeable I could be.

Over this past decade, I have been able to meet both my investing and Realtor goals. It is with these years of learning and taking action that I share my path with you.

This road map will help you buy two or three residential homes in quality neighborhoods, where you can attract quality tenants and receive quality rents, which will, in turn, make you quality profits. Wealth building doesnt have to be a full-time job, be full of risk, or be overly complicated.

My investment strategy looks a lot like the tortoise in the old tortoise and the hare fable. I advocate purchasing just one property and getting that one running smoothly, and possibly the following year buying a second one. If you can do that for three straight years, manage those properties, and hold on to them, then you have set the wheels in motion for your retirement.

A good road map should have a method that just about anyone can follow. One that once you read the instructions, you think it is almost too easy.

Different investors will be at different parts of their journey, so you can find information under the following buckets:

1. What you should Look for In your Properties: Chapters Two through Four
2. How to finance: Chapters Four through Eight
3. Managing your properties: Chapter Nine through Fourteen

Youll be able to use this road map throughout your real estate investment journey. As you develop your portfolio, youll likely revisit a lease or structure a joint venture for properties in the future. You do not need to take in the whole process at once, but take it one step at a time.

We have all seen the stats. As Andrew Carnegie said more than a century ago, more than 90 percent of the worlds millionaires got there in large part because of their real estate holdings. That statement was true in his time just as much as it is true today. I know this sounds overly simplistic, but how do you catch a lot of fish? Well... you find a spot where the fish are.

How do you become wealthy? Well you find a spot where all the wealthy people are.

THE
GOLDILOCKS
PRINCIPLE

"There is no downside to a side hustle. There are only benefits to building more than one source of income. A side hustle is the new job security." Forbes

W e all know the story of Goldilocks and the Three Bears. You can debate whether or not Goldilocks should have been charged for breaking and entering, but Im not going to address that here. In the story, Goldilocks is repeatedly faced with three options to choose from and in each scenario has to determine the one thats just right for her.

As I will continue to say, the investors who build truly sustained generational wealth are the ones that hold on to their assets, not just for a couple of years, but for life. Yes, you can make some quick cash doing flipping, wholesaling, and other short-term projects. But besides being a lot of work, there is an element of risk involved that I would rather avoid.

I am a buy and hold investor. I always aim to talk others out of selling their assets unless it makes more sense to divest themselves of that asset because they can use the funds for assets they now prefer. It is fair to review your portfolio every year or so to determine if you would still buy this property today if you had the chance. If the answer is hell no, then you might then consider moving on.

When deciding what you want to invest in, perhaps consider this. Before you buy, think about what kind of tenant you want to have and then find a property that will attract that tenant.

It seems that nearly every real estate book tells you that you only make money on the buy. Dont get me wrong; I am in favor of getting a good price, just as much as anyone else. However, there are times I might have to pay market value for a great property in a great location. I might as well attract a tenant who will want to live there. If that property was in a market with strong fundamentals, I am comfortable saying I will be pleased with its market value in 10 years time. The key is to hold on to that asset for 10 years.

But Im getting ahead of myself. What options does Goldilocks have to choose between when placing her investment dollars? There are four main types of residential investing and the tenant profile varies based on which path you choose.