[rcvassallo]

> "Never have to work again rich"

I'm almost there. At this point, I just resigned my full-time job and have enough cash on hand to maintain my current lifestyle for the next 10+ years before even thinking about finding a new job or withdrawing funds from my retirement accounts.

> How did you do it?

I worked in IT at a community bank and built a reputation for software development. After ~5 years there, I started a consulting business on the side to develop websites and custom software. The CFO at the bank introduced me to a client that was growing fast and wanted to build their own software to eliminate their growth bottlenecks. By focusing on their business needs, I was awarded 2 contracts over 2 large firms and an independent developer that bid on the work.

>How old are you?

I was 24 when I started working at the bank, 29 when I started the business. I'm turning 31 at the end of this month.

> What was it specifically that made the cash that ended up in your pocket?

One of the contracts I mentioned above was to build and host a project management tool. I priced this hourly since I could see the potential for this to become a long-term project. Once the software was up and running, I packaged a hosting and support service together which effectively works as a perpetual 4-figure per month retainer.

The client thought this project would be done in 3 months but I was able to show them the software had much more potential than they expected. Yesterday marked the start of the 2nd year of development with a rate increase of 25% on development work.

All this was accomplished part-time and put over $160k into my pocket in the last year. I've used some of the money for real estate investments which have pushed my zero-effort monthly recurring revenue up to $3500 after expenses.

The client is now interested in selling the software, and since I carefully positioned myself as the provider of hosting and development services, they're open to a revenue share. If this works out then I'll officially be "never have to work again rich"

>Do you feel happy in your life?

Yes! But the money didn't make me happy. The first few 5-figure checks were exciting but now the money is almost irrelevant.

[STRML]

How did you get started in real estate? In a good year, it is sometimes difficult to choose what to do with extra money - and the usual 0.05-0.10% the banks offer certainly isn't cutting it.

[rcvassallo]

Baby steps. I got my feet wet by taking on a roommate at my first house for the extra cash flow. Once I had saved up enough for a down payment on a 2nd house, I bought it, moved there, and rented out my first place. If things keep going well I plan invest in a 3rd property by the end of this year.

Some factors that helped out:

1. I live in Texas so buying there is a healthy margin between mortgage payments and rent prices. Insurance prices eat into this margin but once you're renting this becomes and above the line deduction on your taxes.

2. I bought my first house when I was 22 and lived there for 5 years.

3. Luck - my first house was flooded by Hurricane Ike in September 2008. Insurance payout worked out to a free remodeling and a kickstart for the down payment on the 2nd house.

4. I found tenants through assisted housing programs. Put in the work to find people who feel your property is a dream house, then they will want to be long-term tenants. The housing program pays via direct deposit on the first of the month so you never have to chase down money.

5. Maintenance - get friendly with some people who work at home depot and local plumbing and electrical services so you can have a handyman to fix the inevitable problems that crop up.

6. I had a friend who was going to transfer to a college near my 2nd house so he's living with me as a roommate. The deal is win-win - he saves money, time, and vehicle expenses while paying the mortgage for me and then some.

Hope that helps!

[mcdougle]

If you're interested in real estate, I'd suggest checking out biggerpockets.com

I'm hoping to do something similar to the guy you responded to -- launch a side-business, automate it well enough, and reinvest the proceeds into real estate and other cashflowing assets. I've learned a lot from the forums, blog posts, and podcasts on BiggerPockets.