THE PLAN

10 AM.. I love my wife..

Yesterday, I went and helped my friend Vaughn with 'finish work' on his house for 5 or 6 hours.. He started building this house a while back and I've been there offering my help with the hard labor.. framing, roofing, and now finish work.. It feels good to help a friend out, but I also see this as an opportunity to learn first hand (from a reliable source) how to build a home.. I am learning everything I can.. not just the physical labor part, but the financing, legalities, and how to take bids for sub-contracting.. I love the idea of building houses for a living, and I am playing with the idea of having him help build my house..

When Kendra and I decided to get married, the plan was to have our house built before the winter set in.. Nothing huge, just a cute little 3 bedroom rambler in Springville.. I found a lot for 50,000, and since no one was buying, I talked him down to 42,000.. (boo yah) and I started talking with Vaughn about building our home.. I like the idea of Vaughn being my 'General Contractor'.. I trust him and I would pay him what he thought he was worth.. but the best thing, I would profit from learning.. While I'd work with Dish and Mona Vie from 3 PM - 8 PM, I would work with Vaughn in the mornings, and I'd have him teach me everything about building my house..

We would move into our tiny apt until the house finished construction, then live in our awesome rambler for 2 years while Kendra finished school.. After 2 years of appreciation and equity built up, we had the choice to sell the house, rent it out, or call it home for starting our family..

SELL IT: If we sold it, we could (conservativly) expect to sell it with 2 years of 7% apprectiation and pocket $40,000 equity we've put in it ($15,000 down for loan and $25,000 for 2 years mortgage payments @ 1,000 /month).. At that point, we'd start the whole process over again.. rent out a tiny apt for the summer and build a new home..

RENT IT OUT: If the market still sucks, we would refinance and rent it out for $100 / month more than the loan minimums would be.. that would generate an additional 100 / month cash flow for us and buy us time til the house would sell for what it's worth.. at that point, we would start building our 2nd home.. by refinancing, we'd get our equity out and would put that money down on a 2nd construction loan and start building a 2nd house..

the good thing about renting out the first home is that the tennant will be building our equity AND putting 100 / month in our pocket AND we take advantage of the 7% appreciation.. imagine if we rented that first home out for ten years.. 12,000 bucks residual income for us and another 120,000 paid off on our first loan.. if we do it for 20 years, then we own that first home, literally PAID OFF.. retired @ 40 ? that sounds ok by me..

MOVE IN: If we love our home so much, we'll move in and call it home.. We make the mortgage payments and build our own equity.. Realistically speaking, get into a $250,000 home while paying off a 200,000 construction loan.. there is 50,000 equity right there.. refinance immedietely and put it toward a 2nd home..

All options are good.. I love living in a 'recession' of a market.. The builders are literally out of work and will bid lower than usual because there is so little work going around.. while the cost of building the house drops, the actual worth of the house remains the same.. it may not sell for the actual worth, but that's fine.. we'll rent it out or live in it ourselves til the enonomy recovers..

So.. the plan is there.. why arent we moving on it right now? We do not have 10,000 to put down on a construction loan.. :( That's where Hawaii comes in..

In Hawaii, we'll have lots of things going for us, financially speaking..

First off, they pay for our plance ticket to and from Hawaii, housing, and $900 / month for food.. Our budget demands 510 / week here in Utah, while our Hawaii budget will be need 250 / week.. right there is a savings of 1100 a month..

I will work 40 hours a week for 10 / hr.. I am not looking forward to the construction-cleanup work, but if that's what my family and my future needs, so be it.. so there is 400 / week income.. Kendra will have to work for a week while we're out there so they will pay for her to fly her out there.. but after that, my friend Harold, who is the manager, will FIRE HER because she "simply isn't cut out for the work." Kendra gets a plane ticket out there and can either be a cute house wife and not work, or she can get a job at one of the resorts out there, or can do school via internet classes..

I do NOT like the idea of my baby working that job out there.. With my experience in construction, I know that is NO PLACE for my Lover and I WILL NOT put her in that situation..

I will also be taking my Dish Network business out there.. I be taking in between 350 - 450 for every account (depending on what bonuses we earn), because I'll be taking comission for sale and install.. by myself, I have been averaging 3 a week here in utah, and I plan on making minimum 2 sales a week in Hawaii.. It takes about an hour of knocking to find a sale, and I am going to be comitted to bringing in 2 sales a week..

I will also be taking my Mona Vie business out there.. this will have long term effects, whereas a few years from now I can come back to Hawaii to check on my business and call it a business expense ;) .. I'll be to the point where my Utah business is rockin, and my Hawaii business is moving.. and extra residual income will be nice :)

So here is why we are moving out there..

First.. it's Hawaii.. we'll be on the beach for every sunset we want ;) We have only a limited time where we can do this.. being young, newlyweds, and not having any kids means we can move on this awesome experience and remember for our entire lives..

Second, the finances simply line up.. our weekly income will be 400 from the job, plus 700 - 900 from 2 dish sales, plus Mona Vie money.. all together between 1200 - 1500 a week, depending on what kind of bonuses we get for our Dish sales.. Expenses will be 300 / week, so after it's all added up..

1200-1500 Income
- 300 Expenses
-----
900 - 1200 weekly Net Income
* 18 weeks (project ends on December 31)
-----
16,200 - 21,600 Expected Net Income from August 14 - December 31

and guess where that money is going to go ? It will be the down payment on our construction loan for our AWESOME NEW HOME..

The program ends in the dead of winter in Utah, and since it's not easy to sell Dish door-to-door in 2 feet of snow, I'd like to do a semester of school in Oahu before moving back to Provo.. Kendra wants to finish her school @ BYU where she is familiar with the program, but I do not like the idea of moving back to Provo in the winter.. I am sure that we will find a compromise of some sort.. :)

I have to run.. taking my baby to school and it's time to get some work done.. stay tuned..

PS- sorry to take up the last hour of your life.. I'll try to keep these things more brief in the future :) have a nice day