How Did Ashley Kehr Pay Off $169,000 in Debt?

TL;DR

Ashley Kehr paid off $169,000 in debt by strategically utilizing real estate investments and following the debt snowball method from Dave Ramsey. By focusing on conscious spending and generating income through property management and partnerships, she eliminated all her consumer debt, allowing her to shift funds toward retirement savings and future business opportunities.

Transcript

welcome to the BiggerPockets money podcast show number 114 where we interview Ashley Kerr the host of the new real estate rookie podcast and hear her debt payoff story through conscious spending and real estate investing hello hello hello my name is Mindy Johnson and with me as always is my stupendous co-host Scott trench Scott and I are here to ma... Read More

Key Insights

• Ashley Kehr transitioned from a CPA firm to property management, which introduced her to real estate and helped her tackle significant debt.
• She initially faced $169,000 in debt from farm equipment loans, student loans, and vehicle loans, which she began paying off after reading Dave Ramsey's Total Money Makeover.
• Ashley strategically used real estate investments to generate income, partnering with others when lacking personal funds or experience.
• By employing the debt snowball method, she and her husband paid off all consumer debt, reallocating funds to retirement savings and further investments.
• Her real estate portfolio grew significantly after discovering BiggerPockets, tripling her holdings in a short period through strategic refinancing and partnerships.
• Ashley emphasizes the importance of conscious spending and budgeting, which allowed her family to redirect funds towards debt repayment and savings.
• She transitioned all her properties to a property management company to free up time and focus on new ventures, such as opening a liquor store.
• Ashley's story highlights the power of real estate as a tool for financial freedom, encouraging others to seek creative solutions in investing and debt management.

Questions & Answers

Q: How did Ashley Kehr start her journey into real estate?

Ashley Kehr started her real estate journey after leaving her job at a CPA firm and transitioning into property management. This career change introduced her to real estate investing, where she initially partnered with others to acquire properties due to limited personal funds. Her experience in property management provided her with the necessary skills and knowledge to succeed in real estate.

Q: What was the turning point in Ashley's financial journey?

The turning point in Ashley's financial journey was reading Dave Ramsey's Total Money Makeover. This book inspired her to tackle her significant debt of $169,000 through conscious spending and the debt snowball method. Her success in paying off her student loans first convinced her husband to support the debt repayment strategy, ultimately leading to their financial freedom.

Q: How did Ashley manage to pay off her debt?

Ashley paid off her debt by strategically using real estate investments to generate income. She partnered with individuals who had funds or expertise she lacked, allowing her to acquire properties without significant personal financial risk. By applying the debt snowball method, she systematically paid off her debts, starting with her student loans, and reallocated funds from savings to debt repayment.

Q: What role did conscious spending play in Ashley's debt payoff strategy?

Conscious spending was crucial in Ashley's debt payoff strategy. By becoming more mindful of her family's spending habits, she was able to identify and cut unnecessary expenses. This allowed her to redirect funds towards debt repayment, accelerating the process and freeing up cash flow for savings and investments. Conscious spending also helped her maintain financial discipline throughout her journey.

Q: How did Ashley's real estate strategy evolve over time?

Ashley's real estate strategy evolved from acquiring properties through partnerships to managing a diverse portfolio. Initially, she focused on finding undervalued properties and using refinancing to fund further acquisitions. Over time, she transitioned to using property management companies to free up her time and explore new ventures, such as opening a liquor store, while maintaining a steady income stream from her investments.

Q: What challenges did Ashley face in her real estate journey?

Ashley faced several challenges in her real estate journey, including managing properties while balancing her family's financial needs. Initially lacking personal funds, she relied on partnerships to acquire properties. She also had to learn how to analyze deals effectively and manage properties efficiently, eventually transitioning to property management companies to handle day-to-day operations and reduce her workload.

Q: How did Ashley's financial mindset change after discovering BiggerPockets?

After discovering BiggerPockets, Ashley's financial mindset shifted towards more aggressive real estate investing. The platform provided her with valuable insights, strategies, and a supportive community that encouraged her to expand her portfolio rapidly. This newfound knowledge and confidence helped her triple her holdings and optimize her investment strategy, contributing to her successful debt payoff and financial freedom.

Q: What are Ashley's future financial goals?

Ashley's future financial goals include maximizing retirement savings for her and her husband, who is self-employed with minimal retirement funds. She plans to increase their 401(k) contributions and explore additional retirement investment options. Ashley also aims to diversify her income streams by opening a liquor store, leveraging her experience in real estate and business to create new opportunities for financial growth.

Summary & Key Takeaways

• Ashley Kehr, initially burdened with $169,000 in debt from farm equipment and student loans, transformed her financial situation through real estate investing. She quit her CPA job, transitioned to property management, and began acquiring properties with partners, leveraging their funds and expertise.

• Ashley followed Dave Ramsey's debt snowball method, paying off her student loans first to demonstrate its effectiveness to her husband. Her strategic approach to real estate, including refinancing and partnerships, helped her grow her portfolio and generate substantial income.

• By becoming more conscious of her spending and employing a disciplined budgeting approach, Ashley and her husband eliminated their consumer debt. Now debt-free, they focus on maximizing retirement savings and exploring new business opportunities, such as opening a liquor store.