Our current portfolio is mostly traditional investments, including paper assets and rental real estate. However, we currently have about 5% of our money in two private loans: one to fund a fix and flip; and another to fund a growing start-up. We have considered other alternative investments (such as a coffee farm in Panama or special use facilities, like assisted living), but so far we have passed. Recently, we have been approached to lend on another deal. The intermediary who made the introduction is someone we know, but the end borrower we do not. As we go through the process [...]
If you have a job at a high enough salary that you can save a high percentage of it each year, you can calculate how long it takes for that savings pool to eventually grow large enough that it equals years of take-home pay. For example, if your net salary is $100,000, and you frugally live off of $30,000, you can bank $70,000 each year. Say that your salary just keeps up with inflation, so you save that net $70,000 each year. After 10 years, you would have $700,000, which at a 4% withdrawal rate could give you $28,000 per [...]
If you have seen my previous book round-ups, I read a lot – 33 books in 2020, and 43 books in 2019. I am on my sixth book for 2021, so at this pace, I’ll finish somewhere in-between the last two years. I didn’t set out to focus on travel books specifically, but three of my early choices for 2021 relate to travel in different ways. Take More Vacations by Scott Keyes is a travel book through and through. Keyes is the founder of Scott’s Cheap Flights, a newsletter perfectly titled for what it does – listing bargain airfares all [...]
My FIRE challenge right now is actually the RE part. We are absolutely in a financial place to officially retire (my husband already is), but I'm holding on due to, well, fear. I have a very good job with excellent benefits working with great people that isn't hard but doesn't fulfill me at all. Quitting would put strain on some of those great coworkers so I'm battling with that guilt as well. I'm struggling with giving up the safety of corporate life. — Sarah I hear you and feel you, Sarah, as I consider myself quite risk averse. Scott and I did [...]
The numbers are in for 2020, and despite Costa Rica borders being closed from March through November, we were able to eke out a small profit across our three properties. We attribute this to one major factor – owning all three properties outright, with no mortgage to cover. When you don’t have a monthly mortgage (or 3, since we own 3 properties), you don’t need much income to break-even. In addition, property tax rates in Costa Rica are low - .25% annually. Ongoing costs (e.g., insurance, utilities) are manageable – though fast Internet is more expensive than I would have [...]
Our last investment was a private loan at 10%, to fund a flip, and it’s coming due shortly. This is a borrower we have worked with before – a family business but with decades of real estate experience. We also know their work firsthand because we bought a rental property from them (they do sales, renovations and property management) and have done very well with it. Finally, we like investing with them because they have opportunities at a relatively low entry point – this loan was for just over $50,000. Other alternative investments require six-figures or more, and sometimes even [...]
We own rentals in Tamarindo, Costa Rica, Asheville, NC and Jacksonville, FL. For 2021, Costa Rica was named the number 1 best place to retire by International Living. In a US News survey of best place to retire in the US, Asheville, NC was number 8 and Jacksonville, FL was number 13. It’s no coincidence that we own real estate in top retirement destinations – that’s one of the factors we use to discover places to consider. (In this earlier post, we share some of the other factors we use when picking a geography to invest). These retirement round-ups do [...]
We don’t name all of our real estate – only the vacation properties, not the long-term rentals. All three of our Costa Rican units have names: Condo Boom, Casa Salita and Condo Reeves. From a practical perspective, we figured the names would help with marketing the properties. Having a name would make the property searchable on a vocational rental platform like AirBNB, without divulging the address. The names could also serve as tags on social media. Costa Rica doesn’t have addresses, so names are even more important here. The location of a property is simply described in relation to its [...]
I read 33 books in 2020, down 10 from the 43 books read in 2019. When I look back at how I spent my time in 2020 (I keep a Time Diary of activity on the half hour and highly recommend it!), I spent just as much time reading, but unfortunately I read more breaking news than books. Keeping tabs on the pandemic and its economic effect was part of it. Not having a commute, which I normally spend on book reading, also contributed. Still, I finished 33 books and include summaries below. My favorite of the year is Uncharted [...]
The Costa Rica Tourism Board is awarding 15 residents of the US and Canada (excluding Quebec somehow) an all-expenses paid vacation to Costa Rica. I don’t know what area of Costa Rica (there are 12 microclimates), but the contest prize description includes: Coach roundtrip air transportation for twoSix nights of hotel accommodations$200 in meal vouchersGround transportTravel insurance Here’s the link to enter if you’re feeling lucky! Even if you’re not feeling lucky, the cost of entry is a statement, in 200 words or less, answering, “Who Is Essential To You?”. Reflecting on that important question and committing your thoughts to [...]
