Free college with this side hustle...

Side Hustla’!

I have a cool method to pay for your kids’ college today.

My partner in the supplement company did this and it paid off big time.

Here’s the scoop straight from him (this all took place in blue-collar Denver neighborhoods):

I bought the first one for $100k, put in $40k. It was in bad shape, needed a lot of work.

Then I bought the second one for $140k, put in $40k (if I remember correctly). Same story, did new floors, cabinets, paint, cleaned up the yard.

Instead of doing a 30yr note for cash flow (short-term thinking in my mind), I did 15 yrs...lower interest rate and slightly higher payments (by like $200/mo)

But paid off in HALF the time. One house for each kid. Now they are fully paid off.

Plus, every now and then I'd just plop $5k, $10k, $15k on the one w/ the higher interest rate. One could argue that if I had put that $ in the S&P I'd have made more, but to me, this was more gratifying.

Rent them both for about $2800/mo. Taxes and insurance each take one month.

I bought both from wholesalers that put them u/c, tacked on $5k or so, and flipped the contract to me.

So, I make about $50k/yr on them (not counting a big update/remodel every 5-10 years)

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Now of course there are some downsides. During the pandemic one tenant didn’t pay him for almost a year. Another tenant tried to grow mountains of weed in the basement.

And you may notice the timing, he bought these in ~2009. Houses were being auctioned by the truckload back then and prices were plummeting.

BUT, I think there’s a scenario where this can still work. If you buy right, and scrape by on little cash flow, you can own them outright in a few years and then either sell them to pay for college or just ride the cashflow.

I love it, and if I wasn’t pouring extra cash into car washes I would be tempted to do it.

Here’s some other stuff I found interesting…

Ever wonder about the economics behind a brisket and ribs joint? My friend owns a car wash and runs a BBQ place out of the back of it. Yes, it’s random as hell but, like many hole-in-the-wall places, the food is delicious. Check out how much they make on a big catering job.

This fun video takes you behind the scenes of a bitcoin mining operation. It’s way more involved than you would think. (Don’t ask me how bitcoin mining works lol)

Since I have plans to do this someday, here’s a breakdown on the economic behind setting a up an easy-to-build self - storage facility using mobile/modular buildings. Because the storage units are mobile they are treated preferentially by both the local and federal tax code. Bookmark this one…

You may remember I have been helping one of our long-term virtual assistant from Pakistan get a green card. Well we don’t have to worry about that anymore because he just got his H1B work visa. He and his family will be coming to America and becoming Americans. Read his incredible story here.

That’s all for this week, talk to you soon Hustla’

KB

PS: If you haven’t yet check out a podcast I did recently with Austin Gray, one of my favorite people. We got deep into the nitty gritty of hiring, marketing, and even fitness.