The only way to fail is to quit.
I bought a condo in North Dallas on June 30th, 2017. The journey started 2 years earlier, in the summer of 2015, while I was traveling and performing music. Though it was a memorable summer, it also drained my bank account. I was raised with the value of saving, but this time was a rare exception. Nevertheless, things can only get better from here.
Financial Literacy
My interest in financial freedom was sparked by a self-help book my mother recommended, called “The Slight Edge” by Jeff Olson. This book marked the start of my journey towards financial freedom. I started by making automatic deposits into a savings account and Roth IRA, and educated myself reading books, listening to podcasts, and attending lectures on the topic.
Books like “Think and Grow Rich” by Napoleon Hill, “Rich Dad Poor Dad” by Robert Kiyosaki, “The Seven Spiritual Laws of Success” by Deepak Chopra, and “The Life-Changing Magic of Tidying Up” by Marie Kondo were crucial to my transformation.
Real Estate
My research showed me that real estate is an unconventional yet valuable investment. Tangible assets like homes, buildings, apartments, trailer parks, and land have real value and can provide cash flow with the right strategy.
I aimed to change my house from being a financial liability to an investment opportunity, so I became a member of the Real Estate Investors Association of Dallas and went to their meetings to learn more. They offered a three-day workshop on real estate investing. It was mainly a promotion for their $50,000 coaching program, but I still gained some valuable insights.
I discovered FHA mortgages, which let buyers make a down payment as low as 3.5% if they live in the house for a year. This was a good option for me since I had limited funds. I thought about buying a four-plex, where I could rent out three units and live in one.
Investing as a Freelancer
However, being self-employed as a musician and writing off most of my income with business deductions made it difficult for me to secure a traditional mortgage since my taxable income showed either zero or negative income.
Eventually, I found an investor loan that looked at my bank statements to determine my income, but with a higher interest rate of 6.625%. The catch was that I needed to put down 20% of the amount, which my mother helped me with by lending me some of the funds.
Finding a suitable property for a long-term investment in West Dallas was difficult. Most of the properties there are owned by the city and were built for low-income families, with restrictions on sale and rental prices. After searching for eight months and facing obstacles, I finally found success with condominiums, thanks to my sister-in-law’s suggestion.
Finally a Solution!
On my first day of searching for condos, I found the perfect one and made the purchase. However, the closing process was very challenging, especially because I was frequently traveling. Both the seller and my lender made the process difficult, which was a rollercoaster of emotions with constant updates on whether or not we would make the closing deadline.
Despite the difficulties, this experience taught me to be resilient and to see failure as a stepping stone to success. I can now focus on my passion for music while I save for another down payment and begin paying my taxes quarterly to demonstrate my true income for future purchases. The future will bring easier experiences.
I am grateful to all those who supported me and offered their wisdom and listening ears throughout this journey. My advice to self-employed individuals seeking financial freedom is to never stop learning and growing. The journey from Point A to Point B is full of obstacles, but I promise there is always a way through.