Reply to Is FIRE next to impossible with children?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I am always amazed at people growing businesses so quickly from scratch. Would love to know what 700k poster does.[/quote]

It wasn't super quick - the business was started in the summer of 2020, taking four years to reach $700k/year. This is my fourth business over the last 8 years, with the first and second being complete failures, generating less than $5k in revenue each. My third business, a software app launched in 2017, did better, hitting a peak revenue of $40k per month. However, it trailed off due to covid, and I eventually gave up on it. It still generates about $15k per month in gross revenue from the most dedicated customers.

The business in question (my 4th) is in real estate. We buy cheap land (below $40k), build cabins for short-term rentals with a general contractor (I had zero construction knowledge before this), refinance at 75% loan-to-value, and use the proceeds to start another. It takes 8-12 months to complete construction, and in that time, the previous cabin hopefully generates the needed 25%. If it doesn't, we add more personal money. We gained access to commercial construction loans after a couple of builds and accumulating 2 years of business tax history. This means we no longer need to have 100% of the money upfront, as the bank provides construction-to-permanent loans at 70-75%. So, we only need to buy land + 25% + buffer. This approach allows us to build 2-3 projects instead of just one. No magic involved.[/quote]

Thank you for explaining. I consider 4 years very quick! Sounds like an interesting business, though I'm sure very stressful at first.[/quote]

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