Posts Tagged ‘financial freedom’

Building intentional partnerships

I was hesitant on putting my past projects up here because I felt like what I’ve done in the past doesn’t align with what I’m looking to do with Legacy Collective going forward- but this is how my Legacy started so now I feel inclined to share it because it’s part of my journey. The point of me sharing this is so you can gain an understanding of my track record. Most properties that were purchased required building trust with a potential partner or investor. Going forward requires me to do much of the same- but I look to be more intentional on who I partner with.

Here’s a few highlights of deals I’ve closed over the years:
Track record

Pay attention to the numbers, which are circled in red. I share this because getting into real estate doesn’t mean you need to have deep pockets. Most developers aren’t using their own money to fund their projects, and even if they are, you need to know that it isn’t the only way. There are many things I love about real estate- the potential to impact lives with what is created, the ability to give me time to be with my family and being able to use it as a vehicle to build generational wealth- which for a lot of people, feels so far removed and not even a possible. But along with this, comes the possibility of creating financial freedom to spend time with those who matter most and do the things that make our lives more meaningful- AND you don’t need to be a landlord or rehabber to achieve any of this. People keep their careers and do all this without crunching numbers, managing contractors, etc.

– Have you thought of investing in real estate as an additional stream of income but don’t know how to get started? If you haven’t, have you thought of building an additional revenue stream but can’t because your time is committed to your job and you can’t possibly take on another thing to do?

– Would you call yourself a socially conscious consumer? Are you mindful about the brands you buy because their goals and mission align with yours? If so, have you thought that you could also be a socially conscious investor? That money that you invest (whether it’s in real estate, an investment fund or some other vehicle) can support socially conscious businesses, while you receive a return on your money?

I’d love to hear from you even if none of this relates to you or is on your radar. Don’t hesitate to reach out if you have questions or just want to connect!

Find solutions to Problems You Wanna Punch!

That was a quote from Morgan Berman, CEO of MilkCrate- which was sort of my theme/takeaway from the PA Conference for Women- which I attended on Friday, October 12th- along with 12,000+ other people- including men! Below is a re-cap of people/books/quotes that resonated with me that I hope you will look into as well. It wasn’t too long ago that I shared my blog post about about the BlogHer event in NY and learned about Tiffany Dufu, founder of TheCru, which I am now a proud member of, along with 9 other ambitious women that will help me achieve my intentions! If you haven’t heard of The Cru, learn more about it here: Find Your Cru

Overall, I thought there was a ton of content- I learned a lot about people/companies/topics that I would not have been aware of had I not attended. I think it’s a great event to attend if your intention is to come back with a few nuggets to help build yourself/your business. The majority of the topics were geared towards people working in corporations, that didn’t apply to me- which makes sense, since many of the sponsors were large companies- Beneficial, Jefferson, GSK, etc. Would I go again? Yes- but it would depend on what topics are covered- specifically surrounding issues that face entrepreneurs. It just so happened that a few topics were areas that I was interested in, that could be applied to my business- but that may not always be the case.

Morning keynote:
Amal Clooney– What a beautiful human, inside and out- an attorney/activist for human rights and has represented people like Nadia Murad, Nobel Peace Prize winner- who have been victimized by genocide, mass atrocities, and human trafficking.
Amanda Southworth– a 16 year old who created the app Anxiety Helper, for those with mental illnesses and Verena, a security system for members of the LGBTQ community-

Session 1:
Jenn Welter, author of Play Big– shared her journey on becoming the first female coach in the NFL for the Arizona Cardinals and revealed her nuggets on how she was able to lead her team effectively. I loved her approach because when I think of leading a bunch of men- football players nonetheless- I would never think that gaining their trust and connecting with them personally, would give her an edge. In thinking about it- when men have only been lead by men- they’ve only gotten that approach/perspective. Being coached by Jenn was probably a long overdue breath of fresh air. Emotional intelligence played a huge role in leading to her success- as well as being AUTHENTIC- which is a message I hear constantly! Few quotes that she shared:

“Even as a coach, you need to be coached”
“People you lead have to feel like you’re human”
“Perfect is not human”
“Get Buy In from the players (or key stakeholders) before getting buy in from the top/decision makers ”

Session 2:
Sally Helgesen co-author of How Women Rise lead a panel discussion that covered key topics in the book and included

Panelists:
Dani Rylan, founder, National Women’s Hockey League and Fast Company “Most Creative People in Business 2016”
Fran Hauser, author, The Myth of the Nice Girl
Karen Etzkorn, CIO, Qurate Retail Group

There were so many quotes/tidbits that I took away from this discussion and am eager to get to listening to the book! But one thing that brought me to tears was when Karen Etzkorn shared that women tend to be reluctant on sharing their achievements. This is a huge thing for me that I need to get over. I’ve definitely had moments where I felt like I wasn’t delivering my best self as a mom, business-owner, wife and once I get down a path, it just opens up Pandora’s box. But she said, look in the mirror and just say, “Look at what I’ve done!” Just writing that made tears well up in my eyes. I need to focus on the good I do and what I’ve accomplished vs. the opposite. Doing this is definitely something I intend to do whenever I fall into a moment where I feel like I’m falling short. How many times have you not given yourself enough credit and fell down tquote le of not feeling like enough? That affirmation is something that I always need to keep in mind to help me see and acknowledge what I’ve accomplished.

Afternoon keynote:
Serena Williams: New mom, elite athlete- extraordinary and ordinary all at once

I mean, I know Serena Williams and what she stands for. But I totally connected with her journey about being back in the finals less than a year after giving birth to her daughter- and the internal struggles she shared as being an elite athlete and a mom. I mean- not that I’m an elite athlete- LOL but her journey as someone who wants to be great at her career and as a mom, and the struggles that come with are so common. Being in the presence of greatness really does something to me, and seeing/hearing her talk and realizing she’s just as human as anyone else and the only difference between her and everyone else is where she focuses her time and energy. Aside from being there to share her journey as an elite athlete and a mom, she wanted to raise awareness for maternal health, specifically for black women and domestic violence survivors. Purple Purse is a cause that she supports to help victims of domestic violence rebuild their lives.

Some quotes she shared:
“I’m obsessed with breaking records and making history”
“Success of one woman should be an inspiration to the next”

Session 3:
By this time, I was already tired from the day- but still felt I gained some info re: companies/people/topics that I should be keeping on my radar!

Nathalie Molina Nino, CEO, Brava Investments and author, Leap Frog: 50 Hacks for Women Entrepreneurs lead a discussion surrounding social impact investing. This is a topic that I’ve been doing a lot of digging around- so I intend on writing up another post re: this. People, specifically women and millennials, are increasingly becoming more conscious about the products they consume and the companies they invest in. On the panel were:
Morgan Berman, social entrepreneur & CEO, MilkCrate @morganberman
Gayle Jennings-O’Byrne, founder and CEO at iNTENT Manifesto
Sally Susman, EVP, corporate Affairs, Pfizer

Things I intend to keep on my radar:
http://conference.ic-svn.org/
https://rsfsocialfinance.org/our-story/
Pipeline Angels
SheEO
BRAVA Investments
100WomenPhiladelphia
Alliance of Women Entrepreneurs
BlockChain

When responding to political issues, Sally Susman of Pfizer suggested that the company has criteria which it uses to decide whether it needs to respond:
– Is it relevant to our purpose?
– Is it important to key stakeholders?
– What options do we have if we choose to respond?
– What is the price for not responding?

I thought this criteria was a useful way to decide how we spend our time and be intentional about it.
– Is it relevant to our purpose? (does this action/person/activity align with my purpose?)
– Is it important to key stakeholders? (Is this action/person/activity important so that I can better serve the people that matter to me/my business?)
– What options do we have if we choose to respond? (What are the potential outcomes of doing this?)
– What is the price for not responding? (What are the pros/cons of doing this?)

Yes, this post was sort of a ramble, but there was so much content to be shared- hopefully you get 1 or 2 nuggets out of it!

To Buy or Not to Buy?

So a few people have asked me my thoughts on whether they should rent or buy. Generally speaking, most people come from a mindset that you should own a home as soon as you can vs. renting and paying someone else’s mortgage.

Which is absolutely true, to a degree.

Here’s a fun flowchart that makes deciding a little too easy:
Should I Rent or Buy Flowchart: Business Insider

And a couple of recent articles on the topic:
Should I Rent or Buy a House? Marketwatch

In This Floundering Housing Market, Should You Buy Or Rent? Forbes

So before I start talking about this in more detail, I’ll put this out right now… I’m RENTING! (gasp…shocker!) 😉

There’s a lot of backstory behind that which I’ll save for another post, but long story short- we owned a place in the city, sold it at a loss and rented in Philly. When the time came for our daughter to start school, we had the opportunity to rent a house behind our closest friends. We had to pay minimally more (around $100/month more than what we were paying in Philly) to be in a bigger house, a better school district and behind our closest friends. So we hopped on it.

Now, although we rented our primary residence, we actually did buy/sell houses during the time that we rented. So we didn’t truly waste all of our money paying someone else’s mortgage.

Renting our primary residence has offered us flexibility that was extremely important to us. I’ve always known that I didn’t want our family to come across the need to move (because of school or work), and then have a hard time selling a house. Between my husband’s job, the kids starting school and being a city girl, we weren’t ready to decide on a place where we wanted to “plant our roots.”

Which leads to where we are today- after almost 6 years of renting- we might actually buy our primary residence.

Mind you, I’m being extremely selective on where we buy, knowing that whatever it is- our goal is to plant our money there and have it be a source of income for us. For example, if whatever we buy is worth $350k after all repairs, the plan would be to stay as close to $280k as we can, leaving around 20% in the property that will grow over time, as the mortgage gets paid down and using those funds to rehab/sell.

We’ve decided that whatever we end up buying, we want to:

1)Not pay retail. This means that whatever we buy, we will likely do a lot of work to it, which may include expanding it, allowing us to add value. This also means that if for some reason something happens and we need to sell, paying below retail will give us some room to price our house lower than the market so that it hopefully sells quickly.

Oh and by the way, just because you are offering less than asking price, does not mean you’re getting a deal. I don’t care if the house is an REO, foreclosure, short sale, etc. I won’t give a lesson here on how I calculate the value of a house, but what is considered to add/take away value to a house varies depending on your local market.

2) Buy in an area that is steady or growing, not just one that we can afford and the house fits our needs

3) Buy in an area where renting the house out will allow us to cash flow, giving us an extra source of income and equity line to tap into in order to re-invest.

So why all the criteria? Mostly, it’s the timing of everything. I’m not a financial advisor, but I understand real estate enough to know that buying a house just to buy because it sounds nice and not seeing how that house fits in with my long term financial/life plan is not ideal for me. Additionally, if all these criteria aren’t met but we get a homerun deal for a big house that probably wouldn’t rent out because renting, we are OK with that because we know we would be able to sell it.

I must share, the biggest benefit of buying your primary residence- is not having to pay capital gains tax- which you would have to pay on the sale of an investment property. You can sell your primary residence and avoid tax on no more than $250k in profits on the sale if you’re single, $500k if you’re married.

So how does this apply to you? What if you want the flexibility of renting, but want the benefits that come along with buying? Here are a few ideas:

1) Buy a multi-unit and live in one of the units.

2) Rent where you live and buy a property in an area that cashflows enough to cover the majority or all of your rent payment. For example, if you’re renting a place for $2k/month, consider buying a property that generates at least $2k amount in rent that you’re paying + more for cash flow- ideally $2500

3) If taking advantage of your local real estate market sounds appealing to you, but you feel it would take a bit of time to understand your market in order to make a move, consider partnering with an investor you trust or has been referred to you, who has the real estate experience you lack. And do your homework on them. You can generate extra income using funds you would have used to buy a house and instead, just lend on a project.

Well there you have it. Now hopefully I didn’t get you more confused on whether or not you are ready to buy!