The Gift of Freedom
Where are you at professionally this holiday season? Better question: where are you at personally?
There was a time in my life that I realized it had been weeks since I hit the gym. Weeks since I spent a work-free weekend with my family. I couldn’t remember the last time my brain wasn’t going 100mph.
One day I stopped. And I mapped out the picture of where I wanted to be versus where I was currently. I started to use real estate to connect the dots between the two.
How do you create income through real estate and translate that into freedom?
Step 1: Find a great cashflowing neighborhood
Cashflow = rent minus ALL expenses (mortgage, tax, insurance, maintenance, etc). The rougher the neighborhood, the higher the cashflow.
Step 2: Learn your numbers
Research "cap rates" so you can compare apples to apples when looking at investments. But more importantly, learn about cashflow because your investments MUST CASHFLOW.
Step 3: Get money to invest
Local banks are usually best for financing investment properties and they'll fund 75% of the purchase and 100% of the construction.
Step 4: Buy a multi-family that needs a little work
Condos and single families rarely cashflow. Your first purchase should require a little work (paint, carpets, etc.) so that you can create value, but not so much work that you get in over your head.
How long will it take you to be financially free? Do the cashflow math: If you need $6K to live on per month and each property cashflows $2K, then three multi-family properties will set you free.
Want more information on investing in real estate? Contact me.