I lasted about six months in the beautiful land of debt freedom before I ended up back in debt. Oops.

Fortunately, this expenditure was planned and is part of a larger investment strategy that I’m pursuing – real estate.

I spent months searching, scouring land deed records, hand writing personalized notes, and looking at multiple houses and vacant lots. Finally, I found the real estate that I knew that I wanted to purchase. It’s a great corner lot in a Downtown area within a large metropolitan city. I was able to get it for a great price from the seller, who didn’t live in town. Consequently, I “landed” myself back in debt. (C’mon that was a good one)

I must admit that I feel a little bit of dread about having to make monthly payments again. However, It’s also a different feeling than my last Debt Destruction battle. The last time I was facing debt, it was for an intangible asset – mainly student loans. This time, I’m gaining a tangible asset with built-in equity. The land is appraised for more than what I paid, so this purchase boosts my net worth from the beginning. While I’m not excited about the debt itself, I am excited about utilizing the debt to acquire more wealth and begin some projects in the real estate world.

The Plan

You may be thinking, “You bought some random lot. Cool. Now what?”

Well, let me tell you!

My current plan has two phases. First, I’ve listed the land in order to try to flip it at its higher value. That’d be a quick way to get back out of debt and get a pretty good ROI in the process, since I already have nice equity in the property.

If I’m unable to sell the land for the price I’m looking for, then I plan to start a small development project early next year. I have already secured architectural plans and will be constructing a couple of nice duplexes that will each be 3 bedroom 2 bath units. This will allow me to diversify into the real estate market with some nice rental properties.

I’m equally nervous and excited, but I’m confident that I’ve done solid research and the numbers line up. No matter how it goes, I’m proud of all the work I’ve put into it.

Now We Wait…

While I don’t necessarily think there is ever a good reason to go into debt, I do think there are certain times where leverage enables you to make a move on a good deal when you’d be otherwise unable to do so. Now, I’ll begin paying off my debt once again, while waiting for any interest that might develop in my land over the holidays.

Ultimately, there are many different strategies to obtain financial freedom. There’s no clear cut path. However, there are tried and true methods that are statistically more likely to be successful than others, and real estate is one of them. I’m excited to get started on this next journey, and I hope you’ll join me for the ride!

What do you think? Is this a dumb idea? A great idea? Would you like to know more about my process? Let me know what you think in the comments!

**** Also, if you’d like support on your own financial journey, take a look at my consulting page. I’m just getting this part of my page started, but I’ve already been able to help some clients get a better handle on their financial picture. ****