American Dream, part 1

I have a friend who moved to the United States when he was in his 30’s, about 20 years ago.  He didn’t have any money and didn’t speak any english.  He was encouraged to come over by his sister who married an American G.I., and he has since lived the Amerian Dream. 

I am so inspired by him that I decided to write a series of blog entries about him and his financial lifestyle.   This is the first in that series, and I hope you find it interesting as well.

His beginnings come from the country of Vietnam where he learned to be thrifty and financially conservative.  His name is Thach.

When I first met Thach he was married and working as an auto mechanic.  He lived in a modest home in the Portland suburbs, and asked me to help him sell it.  We sold his home for him and helped him buy another home that had a shop, so he could work with his list of personal customers.  He is so knowledgeable about cars that he has a nice business on the side fixing people’s cars.  People trust him as he is a very straight shooter, and tells it like it is.

At his places of employment, he became the head mechanic and made a nice income of over $75,000.  One big key to Thach’s success is that he understands the value of Real Estate, leveraging his money and living cheaply.  He told me today that he doesn’t want to put his money into a “crappy CD” and earn next to nothing.  He buys homes, rents them for more than the payment and then works very hard to pay them down or off.  He has excellent credit and always pays his bills ontime.  That is possible because he does not overextend himself.  He is regularly telling me “don’t buy things.”  “Save enough money until you can make it work FOR you, don’t waste it on trinkets. ” 

As of today, Thach owns 7 homes, 3 of which are completely paid off.  On the other 4, he owes less than $120,000 0n each of them, and they are all valued between $250-$300,000 each.  Not bad for an immigrant who spoke no english and had no money a few years ago. 

One thing that amazes me is how much Thach can save in a year.  If he makes $75,000 in a year, he saves over $60,000.  In 3-4 years he can save $250,000 which he uses to buy another house or pay down the ones he already owns. 

When the market comes back strong, in the next 3-6 years in his estimation, he will sell one or two of his homes and pay all the rest off.  Then he will own between 5-7 homes free and clear and be done working. 

His monthly income from the rents he collects will be more than enough to sustain his lifestyle, and he will be free to do whatever he wants.    That’s a great 25 year plan.  He is strict with his spending habits and unbending in his efforts to carry out his plans.  His story is truly the Amerian dream, and a lot of us would do good to emulate his habits.

It’s time many Americans got back to traditional values, hard work, self-reliance and personal power.  Our culture has far too many distractions, temptations and voices demanding our attention.  Let’s get back to basics. 

For me those basics are family, work and faith.  Pearing down the excess and really having a focus and effort on what really matters can make all the difference.  Create traditions for your family and take the time to orchestrate great experiences for your children.  Many of us are spread too thin and could really use some prioritization and renewed focus in our lives. 

I hope that you are living the American Dream like Thach.  He is a millionaire and has never earned over $85,000 in a year.  He is living proof that with the right blend of focus, self-restraint and hard work, anyone can achieve it.