Close the Circle

By Mike Johnson

One day you’re 12 years old with a list of dreams. The next, you’re 65 with a completed to-do list. Life is but a dream.

Want to learn how we got a "free" barn?

We’re not traditional savers. We owned mobile home parks that provided our mostly-passive income streams.

When we want big-ticket items, we do something most people don’t.

We buy another income stream to pay for them first.

So seven years ago, when we wanted to add three major outbuildings to our homestead, we bought another mobile home park first.

We then got a home equity loan, bought neighboring lots, had the buildings constructed & used a chunk of the new park’s income to make the monthly payment.

This got us the buildings years sooner & got them for “free.”

Four years ago, we sold that mobile home park & paid off that home equity loan.

The circle was now complete.

Over four years of ownership, that park had earned enough income & equity to pay for our home additions. By paying off that home equity loan, we didn’t “spend” that money. We just transferred it to increased equity in our personal home. So it’s sitting there for future use. “Saved.” Non-taxable. Rising in value right along with inflation. Real, debt-free assets that we fully control in our own yard.

All along, we received the enjoyment of the new outbuildings. That enjoyment cost us nothing & never has to be repaid. We don’t have to repay the time saved either.

There are many ways to create value from thin air.

I share more of these ways in the post, "Big Lives Cost Little Money"


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