The FI Show Cody of Fly to FI and Justin aka Saving Sherpa

Today's episode is an awesome chat with Emil from Roofstock.



Emil covers why he wanted to get into real estate and what held him back.



He knew his area of California was too expensive and discovered the idea of long-distance real estate.



Roofstock gave him the tools and confidence to make his real estate dreams a reality. Then a couple of years later he actually joined the company and is here today to walk us all through his journey and what Roofstock could bring to the community.



Listen, learn, and let us know what you think.

Episode Summary

Emil's Background



Emil was instilled with values early from his frugal parents

* In high school, he got interested in stocks and started self investing

* At the time he was picking individual stocks but doesn't advise that

* He luckily had a friend who was like a child genius with stocks

* When heading out for college he needed a car and sold his stocks to purchase one

* In college, he studied economics

* His first job would be aggregating data on pharmaceutical companies

* It's clear Emil gets a ton from his time working across a few startups

* Emil also stresses the importance of Networking

* It would ultimately lead to his job at Roofstock



 

Emil's Journey to Roofstock



* Emil became a user of Roofstock in 2017

* At the time the company wasn't at a point to bring on remote workers

* He would continue to send marketing materials to Roofstock that he thought the could use

* Over time Roofstock opened up remote positions and he went to work with them

* Emil had a strong connection to the company because he always wanted to invest in real estate

* His dad actually had been investing in real estate for a long time

* The problem for Emil was the prices that were near him

* So he got interested in remote real estate

* That's where Roofstock came in to save the day

* He now has several properties over multiple states including Florida and Indiana.

* He bought his first home in 2017 for $84k in Jacksonville with an original rent of $900

* The property had a new roof and HVAC so it almost turn-key

* Today it is renting for $954

* He also has never had to change tenants

* Total cash-flow has been $8,200

* Appreciation has also increased the property value by $26k



Roofstock Details



* Roofstock links you up with preferred property managers

* You're not required to use them but you're not forced to find someone

* Roofstock makes their money during the sale of the homes

* It's actually a great deal for both the buyer and seller

* The seller ends up paying 2.5% vs a standard 6% for the sale

* Then the buyer pays $500 but gets a ton of support

* Beyond the property manager help, they also have preferred lenders

* Emil scans Roofstock to find states with good returns

* Then he looks for states that have landlord-friendly laws to avoid squatters

* He also recommends job and population growth

* Most properties have an inspection report

* This inspection report also comes with an estimate to get it rent-ready

* Then you can leverage the property manager to find a trusted contractor



Roofstock Guarantees



* If you're not happy with a purchase, roofstock will help you sell it

* If it's not sold after 90 days, roofstock actually buys it back

Today's episode was recorded live at Camp FI down near Gainesville, Florida.



Camp FI is a retreat of 40-60 people at locations across the country filled with people chasing FI and supporting fellow members of the community.



This episode highlights people who were convinced to come to CampFI without any background to the FI/RE movement.



Two other interviews include a graduate student studying the FI/RE movement and the camp's creator, Stephen.



Stephen talks about the origins and future of this camp and the motivations to keep this community growing.



Listen, learn, and let us know what you think.

Episode Summary

Laura



Inspired by an interview with Vicki Robbins

* She was drawn by the way people see the role of work in their lives

* The community was also very open to being researched

* She noted how diverse the age and background was of the movement

* It also came out that most people actually love their jobs

* The last thing she called out was how intentional and conscious of their decisions

* You can email her at firestudy@umich.edu if you're interested in being interviewed



Mike



* He never could have imagined being at a conference like this

* A friend of his recommended that he came

* He notes how ready he is to take action the minute he gets home

* Mike really recommends that people give this community a chance

* Tactically he got an overview on how to get his realtor's license

* He didn't image the generosity that he found with the community



Roople



* Rupel is a practicing physician

* She loves the challenge of why you're living life the way you are

* Rupel calls out the trouble she sees with physician burnout

* She also noted how easy it was to have deep, personal conversations with this community

* While at the conference she moved investments away from higher fee options to low-cost index funds

* She hopes that doctors will dig a little deeper and find why they love doing what they do

* Refocusing on that and restructuring their life she hopes will alleviate the burnout

* Since hearing about the movement, she ditched her overpriced apartment and bought a home



Creator of CampFI - Stephen



* Stephen tried to make more of an emphasis on making real connections with the attendees

* He hopes that people who are looking to get involved with FI/RE community will just jump in

* Stephen first attended a camp like this in 2016 and knew he had to spread this idea to more people

* This year they look to have at least nine of these camps all across the country

* Stephen had no background in event planning and didn't know what to expect

* Luckily everyone showed up who bought tickets the first year

* Also worth noting that CampFI is where Cody & Justin met and The FI Show was born



 

Key Takeaways



* FI isn't so different: Many of the stories we heard from FI "newbies" during the week mentioned that this community isn't just a bunch of "weirdos" and "money nerds". It's just people making slightly more conscious decisions.

* So many paths: There was so much diversity: age, gender, profession, and general paths to FI. It showed just how many ways there are.

* People are good: The American news cycles are often rough and draining. It's nice reminding yourself just how good people really are.



Call to Action



Start leaning on or creating a community around you that supports your growth as a person and your goals to reaching FI.

In today's episode, you'll hear from Court who writes over at Modern FImily.



Court and her wife are (mostly) retiring early in Canada at 32, but will continue work a bit more until their second child is born.



They did this with student debt and a priority for living a full life while chasing their dreams.



Listen, learn, and let us know what you think.

Episode Summary

Discovering Financial Independence



Court had $70k of student debt after her bachelors and masters degree

* She'd start her career in 2009

* She was focused on getting out of debt

* Court paid it off in 2.5 years

* At this point, she looks to buy her first home

* She then also discovers Mr. Money Mustache



Starting a career



* She had the opportunity to participate in this rotational program

* It allowed her to rotate three times in six-month time segments across different jobs

* That gave her a wider view of options and allowed her to choose one right for her



Start of  a family



* She would meet her now wife in 2011

* Her wife would also end up with some student debt

* It was obvious right away that both were frugal and passionate about travel

* Court drove the spreadsheet part of the relationship but their goals align



Looking forward



* After getting married in 2015 they start designing their future

* Court's wife was originally from Canada and they set their sites there

* They would sell their home and all their things in Florida

* Then they traveled for 6 months before moving up to Calgary

* Court thought she'd a while to find a job and might travel another 6 months

* Luckily the job came through sooner

* Court was frugal but didn't have the investing background until finding the FI community

* They welcomed their first child in 2018 and are planning for a second



Canadian Perks



* Canada gives 18 months of paid time off for new parents

* This nets around $25k per year

* The insurance is incredible

* She tells a story of going to the emergency room with less than $20 out of pocket

* The medical bills for the birth of their child were limited to parking at the hospital

* Court got her citizenship through her dad but could have gotten it through her wife

* She also still gets U.S. perks like good travel rewards credit cards

* Canada also gives you around $5k per year for children up to 17 years old

* Canada will also give you $500 via match into an education saving plan

* They also have payments to citizens over the age of 65 that's based off income

* She also says that taxes are actually not that much higher than the USA



Looking Forward



* Court lays out her withdrawal plan for retirement

* She's moved to 60/40 stocks as she's about to stop working

* There is a plan to get back to 80/20 after a few years in retirement

* They plan to try and have a second child

* Court goes over some of the considerations for a lesbian couple having children

* They saved and planned for a 4% withdrawal rate

* They believe they can be happy with closer to a 2% withdrawal rate



 

Key Takeaways



* Better than expected: Court talks about how much faster FI came than expected

* Canada has perks: It's so important to enjoy the journey on your way to retirement

* Power in learning: Court wasn't from Canada but she's immersed herself to become an expert



Call to Action



Take a closer look at the fine print of your city/state/country programs an...

In today's episode, you'll hear from just your Hosts! That's right, no guests today, but plenty of voices will be heard.



This episode is covering some of the activity that's been going on in our Community Facebook Page



In today's episode, the guys share with you the powerful accomplishments The FI Show group is achieving.



Also if you join the Community Facebook Page, we're starting a new thread for 2020 goals. Comment with your goals and we'll feature you on an episode coming out later as well as check-in and keep you accountable!



As always they'll also be transparent with their own wins.



Hopefully, you enjoy this special episode!



Listen, learn, and let us know what you think.

Episode Summary

Wins from various community members



Set up a Roth IRA for 18 yr old daughter

* Visited FI friends in 10 states

* Wrote a book with their daughter

* Got to at least one comma in each account

* Wrote a book

* 5 figures from a side hustle

* FIREd at 44 then hit UK Chautaqua, CampFI, and FinCon

* Reached FI at age 30

* Maxed out his and wife's 401k

* Couple that both FIRE'd before 30

* Vacationed and paid off a truck

* Paid off a mortgage

* Fired a financial advisor and started to DIY

* Transitioned to full time selling on Ebay

* and many more....



One huge transformation



* Discovered FI on Christmas of last year with only $1,500 in a checking account (plus some mutual funds for retirement)

* Since then, negotiated a $12k raise

* Got her company to pay for  PMP

* Volunteered at a startup to learn new skills to switch to a better-paying industry

* Moved to another job for ANOTHER $30k raise

* Automated savings to accumulate a $20k emergency fund

* Maxed out Roth and HSA for the first time, plus getting a 401k match!

* Took  time to think about WHY even pursue FI

* Now in the process of downsizing life and purchasing an RV to travel the country, see the public lands, and spend more time outdoors! 



The Hosts Share Too



* Justin saved 76% and  is 80% of his way to FI

* He spent $23k while living in Boston

* With $10k of that going to rent...ouch

* Full break down of expenses for those curious



* Bills: $1,133

* Travel: $315

* Misc: $255

* Eating out/drinks: $108

* Gas: $61

* Groceries: $53





* Justin started a new job and upped his earnings

* Some notable trips to Hawaii, Mexico, Colorado, countless other trips and time with family



 



* Cody spent $28k while also living in Boston

* Quit his job in January of 2019

* Toured the country for 3 months living in a camper for Grant Sabatier's Financial Freedom book tour.

* Got the Financial Freedom Summit setup for 2020

* And took a 3.5 week trip to Peru and Chile in December



 

Key Takeaway



* Reflection is Powerful: Both of us and the FI Show community felt so much more motivated to tackle 2020 and just felt so much better about ourselves after we realized how much we all crushed 2019



Call to Action



Join the FI Show Community Page!



Join the Community

We’d love to hear your comments and questions about this week’s episode. Here are some of the best ways to stay in touch and get involved in The FI Show community!

In today's episode, you'll hear from just your Hosts! That's right no guests to save the day.



As a reminder, Justin chronicles his life at Saving-Sherpa.com and Cody writes at FlytoFI.com



In today's episode, the guys tackle 10 financial tips they always hear and give their take on what's true.



Hopefully, you enjoy this special episode!



Listen, learn, and let us know what you think.

Episode Summary

Credit Card Balances



We discuss why you should ALWAYS be using a credit card

* The need for setting up autopay to pay off the full balance

* Neither of us recommends carrying any balance

* Some think it helps build their credit

* In reality, you're just setting yourself up to pay a ton of fees

* The actual factor that relates to this is credit history which doesn't require a balance



Rent vs Buy



* Justin calls out the importance of keeping in mind closing costs, HOAs, insurance, etc

* It's much more complicated than comparing a mortgage to just your rent

* These things are especially true if you're moving every two or three years

* If you can go beyond and do things like house hacking, then buying is certainly a great option

* Also, keep in mind the non-money part of the decision

* Owning a house can be stressful and add in more variables to your life



New vs Used



* Justin recommends buying a car that's 5 years old on a deal

* Then keep that car for two to three years and try to sell before you hit 100k

* Justin prefers these cars to be under $10k

*  Cody discusses depreciation and interest rates

* Justin then compares buying a car and keeping it for 20 years vs rebuying periodically



Good vs Bad Debt



* Obviously there is some debt that's terrible such as credit cards with 15% interest

* Then there is a middle ground where it's debt that doesn't earn revenue but allows you to invest more

* Both felt like anything that 4-5% range in interest should just be paid off as quickly as possible



Going to College



* Going to a community college first isn't a no-brainer

* Many scholarships that universities offer are only given to incoming freshman

* Justin would have missed out on 10s of thousands if he went to community college

* Cody calls out how important it is to just be intentional

* He also calls out the cool trades and technical skills that don't require a college degree



Filling Up Savings Accounts



* Justin highlights how destructive inflation can be

* It's also scary to see how many people have avoided investing during the last five years

* These people are often terrified that we've hit the top

* Both guys highly recommend buy and hold as well as getting into the market right away



Financial Advisors



* Justin does see value for some to have a tax specialist but doesn't see the need for a financial advisor

* It may be a good idea to pay a one time fee for an advisor to help set up a plan you're comfortable with

* That could help you get off the sidelines without being tied down to fees long term

* These advisors often charge at least 1% which can really add up

* You can see how much these fees are costing you by using Personal Capital's Fee Analyzer tool.

* If the only reason you're using an advisor is to give you a scapegoat when things go bad, rethink that

* To round it out, Justin cautions employees from having too much of their portfolio in their employers stock

In today's episode, you'll hear from Lauren and Steven who write over at Trip of a Lifestyle.



This awesome couple took a six-month honeymoon to Hawaii and that changed everything.



They got a taste of traveling on a budget and earning along the way.



We can't wait to showcase how they took control of their work-life balance and living life to the fullest.



Listen, learn, and let us know what you think.

Episode Summary

Discovering Financial Independence



Lauren started paying attention to income in college

* She worked her way through college with scholarships and jobs

* Then when her and Steven moved together to California they started talking to advisors

* Steven's started getting interested in investing after he started working

* They ended up getting sold some really bad investments from a bank investor

* Although it was a bad situation it was a big learning moment

* They actually came up with this idea of having investments covering your expenses before formally discovering FI

* It was also really helpful that they started early before they had faced lifestyle inflation

* The big change for them after finding FI/RE was just saving with more of a purpose

* They end up moving back to Florida to take advantage of a free master's program for Steven

* This program was based on a requirement that Steven would teach for a bit in Florida

* During his teaching commitment, they got married and started brainstorming their honeymoon



Long Term Honeymoon



* They had a goal of really driving down the cost per day for a Hawaii trip

* Instead of a week or two, they would stay six months

* They bought a used car, rented an apartment, and worked 10hrs per week

* When the trip was over, they had broken even and their net-worth actually grew

* This trip supercharged their will to retire early

* Lauren & Steven were actually more excited about work because they knew what they wanted now

* When they returned to Florida they also bought a small condo for cash

* Even though they owned their house, they brought in roommates to bring in more money



Finding Work-Life Balance



* To enable this type of travel they leveraged their skills to earn money while on the go

* Steven picked up some private tutoring jobs

* They both also do photography

* Lauren negotiated with her employer for a part-time remote job which they agreed

* When they would go on trips after buying their condo, they'd sign short term tenants

* Lauren will also help out small business with social media



All 61 National parks in seven months



* After a period of working after returning from the honeymoon, work started taking a toil

* They felt really burnt out and felt like they should just be doing more of this travel

* So they came up with this idea of seeing all 61 national parks

* Total cost of the trip including van depreciation, healthcare, chartering planes etc was $37k

* That's total for two people and seven months

* It would have only cost $21k if they skipped a couple of the really remote ones

* Over that seven month period between side jobs and rent, they earned $37k

* So their income matched their expenses while taking an incredible trip

* You can get the full breakdown of this trip here



Their Spending



* They have spent $18k-$27k per year

* They are comfortable not chasing a specific FI number