by Hopewell

The Duggar Income Stream [minus TLC]

Before TLC and their reality TV show offer came on the scene, Jim-Bob and Michelle Duggar were already on their way to financial security—a situation not normally found in homes with no college-educated adult. But, like the people profiled in the book the Millionaire Next Door, Jim-Bob and Michelle have always lived BELOW their means and have always had common sense about purchases.

They also share a vision for the type of family life they wanted to lead. While Jim-Bob did hold a job, and a mortgage, at the time they married he soon realized this was not a sensible way to live. His love of buying cars, fixing them up himself, and reselling them for a profit was the first step to a secure future. Although he acknowledges that the used car business is not looked on with much respect, he decided to set up a car lot and run it in a Christian manner. Soon he was making enough off used cars to quit his day job. Eventually, they rented out the mortgaged house and moved into a tiny house on the car lot to increase their income. Along the way, he made a few good decisions [and a few bad ones]. (Duggar, chapters 1 & 2 and “17 Kids and Counting: Cheaper by the Duggars”).

One good decision was to buy a tow truck. While the first model he bought wasn’t worth the money, unlike many college-grads he knew enough about cars and other equipment to buy the towing equipment and winch off another tow truck, hold on to it, save up for a truck to put it on and eventually he had an excellent tow truck and no loan. The towing business grew fast and he had to hire help. Finally the collateral supplied by the car lot inventory, a bent for strong and creative negotiations and the savings from their income allowed the Duggars to enter the true source of their security: REAL ESTATE. (Duggar, chapters 2 & 3).

Jim-Bob’s parents were in real estate and soon Jim-Bob and Michelle also got realtors licenses. Jim-Bob discovered he had an eye for investment properties and the stomach for deal making. After saving up $65,000 to pay cash for the home they would still be living in when they filmed their first TV special, the Duggars went on to make several profitable real estate deals. One deal, which cost about the same amount as the house, netted them a profit of nearly $200,000 after Jim-Bob put in a few hours on a backhoe clearing the site. They also bought a 20-acre parcel of land with an old chicken hatchery on it. They converted the building into commercial rental space and used part of the land for their dream home. The rent collected from the rental properties was their main income for several years. In their show (“17 Kids and Counting: Cheaper by the Duggars”) he shows viewers the property he owns and leases to a cell phone company for their transmission tower. In addition to the real estate deals, Jim-Bob often buys and sells other items. While building their home, he acquired and resold a bucket-lift truck and a scissor-lift among other equipment (Duggars 20 and Counting and elsewhere).

Jim-Bob figured out how to efficiently provide for his family by being observant, staying debt-free and having assets that could be quickly liquefied to provide cash for new ventures and by using all his negotiating skills to get great deals when he did buy big ticket items. Without a high-paying white collar profession, Jim-Bob would have been routinely away from his family for 80 or more hours a week to try to earn the income they needed. Instead, he found a way to provide a level of income for the family God would send him and still be at home to help with that family as much as possible.