“If you don't sacrifice for what you want, what you want becomes the sacrifice.”
Mayo’s story is one of sacrifice. Not many people can set aside half their income for a month, let alone a year. I like Mayo’s story because it’s real and it’s step by step. So much of the success stories we often hear about in life gloss over the specifics…the sacrifices, the mindset, the research. People love to skip to the end result and consequently get burned because they are ill prepared for the unexpected…unplanned maintenance, delinquent tenants, losing a job etc.
While working as a server at Maginanos (Philadelphia), Mayo knew he wanted more. His foundation was rooted in the exposure he received from his grandparents who had their own modest real estate portfolio, as a teen he’d often assist them with maintenance to make ends meet. Mayo, making approximately $60k/year as a restaurant server made the conscious decision to save up $30k a year, roughly $80/day. Not an easy feat. But what made it easy for him is that he had a plan and a S.M.A.R.T goal. In short, he knew he wanted to purchase real estate and move to Atlanta. His dislike for Philadelphia was also added motivation.
Mayo was also wise enough to ask questions and was prompted to do additional research. What should my credit score be? What is debt to income ratio? How many years of employment do I need? What should my emergency fund be?
Once Mayo arrived in Atlanta, with $60k saved, he leaned on the advice of his grandparents, “don’t buy a place you wouldn’t live in and don’t buy a place you can’t afford if the tenant moves out..” The first property Mayo purchased was a duplex, for $65k, putting down 20% (roughly $15k with closing cost), this in turn netted him about $900/month. He then purchased another duplex property just 2 months later, similar price, and it also netted $900/month. Less than a year later, he purchased a $100k triplex with 3.5% down, approximately $5k with closing costs! This building was all 2 beds, 2 baths and netted him an additional $1,600/month. Mayo was now taking home an additional $3,400/month…$41,000 a YEAR!!! This my friends, is how wealth is created. Mayo was able to increase his income by more than 50%.
I won’t bore you with how he purchased another duplex and refinanced, etc etc. We will save that for another show!
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