iwillescape.com

Despite my plans to escape, Kate and I have decided to put an offer in on a house. It makes me wonder how this will effect my plans for us to escape corporate America and slavery to our financial system. The house we’re offering on isn’t in the best neighborhood, but we sat out in her car for about two hours listening to the street. It’s super quiet… I feel safe. The reason we’re offering is because the asking price is 119,000.00 and in California even in this terrible market it’s a steal. Our total monthly payment would be about 1000.00 a month for EVERYTHING. I would have to dip into my wedding/house/business funds to get into it, but with creative financing, (yes, the problem that got everyone into this) we wouldn’t have to put down much. However the loan is fixed for 30 years at a reasonable interest rate and the payment is low enough that even if Kate and I had to double team Starbucks, we would still be able to make our mortgage payments, and we could definitely rent it out for close to that amount and go back to live at home with Mom and Dad or in one of their 5 houses in Michigan.

I need 5,000.00 to launch my first product, that would leave enough room for the website design and monthly merchant fees until I got up and running. I’ll need probably 7,000.00 for a joint venture with another guy I know for a business that centers around sales training… But first I want to take my baby idea to market with just my baby brother and our wives. We’ve come up with an innovative item that has little competition but solves a major problem many people have. I use other versions of this product already weekly if not daily, and I have a sort of hodgepodge way of building my own version of it…but I need to come up with a manufacturer. None of them seem to like to play with newbies. - We plan on charging a premium for it and kind of going at it gorilla style by utilizing popular tools available on the internet for little or no cost. (google ppc and YOUTUBE). From one of my business ideas I could quit my job in 3 months, but starting is the worst part.

I’m afraid that buying a house will too deeply undercut my financial goals. Although buying a house at 22 could prove to be a great advantage later in life. We plan on living in it for 3-5 years and then renting it out and buying something in a better neighborhood but that is still a fixer. When you have an equityline and interest rates are 4.25%, it doesn’t seem that dangerous to borrow 5,000.00 to launch a product. If it turns out bad, you do have to pay it back but it’s a small amount not subject to the wacky whims of credit card companies. However it’s still a risk, a significant one at that, as I hate borrowing money from anyone. I hate the idea of being in debt for 119k, because although I know the home is a bargain…recently updated, actually still slightly unfinished, that it’s a liability and that at the most I stand to gain a modest amount if not break even on the thing.

Well, that’s all for now. I will quit my job as soon as humanly possible. I will quit my job as soon as humanly possible. (repeat 10x)