MB 232: Turbocharge Your F.I.R.E. Journey with Real Estate – With Rajneesh Jha

The F.I.R.E. movement challenges us to achieve financial independence and retire early by saving and investing aggressively. And by aggressively, I mean anywhere between 50% and 70% of your income. Rajneesh Jha was following the F.I.R.E. method, putting his money in Wall Street investments—until he realized he could fast-track his timeline with multifamily real estate! Raj spent 20 years working as an engineer for Fortune 500 companies. An avid student of the stock market and personal finance, he started investing in safe, low-cost mutual funds with the goal of achieving financial freedom in about 10 years. Then he discovered real estate and shifted his strategy, building a portfolio of small multifamily properties. Earlier this year, he quit his 9-to-5 to build Big League Capital, a multifamily syndication firm that helps other investors turbocharge their journey with real estate. On this episode of Apartment Building Investing, Raj joins me to explain how shifting from F.I.R.E. to multifamily accelerated his journey to financial freedom. He offers his take on the stock market as an investment class, describing how the returns pale in comparison to real estate. Listen in for insight around transitioning from landlording to syndication and find out how Raj’s life has changed since he quit his corporate job! Key Takeaways How Raj’s journey to financial freedom began Stumbled on F.I.R.E. movement 7 years ago Invest in low-cost, diversified mutual funds

What the F.I.R.E. method teaches Save substantial amount of income (up to 70%) Save more, arrive at financial nirvana faster

How Raj was able to save a lot of money with F.I.R.E. No drastic changes to lifestyle More conscious + intentional about spending

What Raj was trying to accomplish through F.I.R.E. Protect family from vagaries of corporate life Get to place where work becomes optional

Raj’s take on the stock market as an investment class Can get burned if chase trends Prosper with disciplined, consistent strategy Pales in comparison to returns on real estate

How Raj discovered the world of real estate investing Came across BRRRR method with Paula Pant Learned about scale from Matt Faircloth

How Raj differs from the average stock market investor Passionate about personal finance Extensive reading and education

Raj’s first real estate investment Bought triplex in Summer of 2017 Made fair share of mistakes but believed in vision

How Raj’s long-term plan shifted once he found real estate 4% safe withdrawal rate vs. 12% cash-on-cash return Accelerate journey by 3X with multifamily investing

How Raj’s life is different after quitting his job Time to relax and plan next chapter Work on my schedule, do things that matter to me

What’s next for Raj and his investing partners Looking for 60- to 120-unit value-add property Psyched to go from landlording to syndication

What Raj would do differently if he could go back Start sooner and be bolder See mistakes as rite of passage

Raj’s advice for achieving financial freedom Get clear on what you really want Skip stock market, go right into multifamily Have faith and take prudent risks Don’t let lack of funds/experience hold you back Spend time on real estate education

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