HOW DO 12 HOUSES EQUAL FINANCIAL FREEDOM?
Jul 23, 2019
I coach and consult with people all the time. Want to know what their #1 goal always is?
Freedom.
They want to spend their days as they please.
More time for hobbies, friends, family, leisure, passions.
Sometimes, they think they want tons of money.. But as we dig deeper, we always discover that the money is only something that they are planning to use to get all of the above.
Then, they usually ask me how to build a huge flipping or wholesaling business. Their goal is to make tons of money doing that, and then use the money to get freedom.
I tell them that it rarely works that way.
Most of the time, and also in my experience, building high-volume businesses like that actually TAKES AWAY from your freedom.
Yes, it might give you freedom from your job. You can definitely use it to quit your job and become an entrepreneur.
But that’s a different goal than the one they originally stated they wanted.
Becoming an entrepreneur DOES equal freedom from a job.
Becoming an entrepreneur DOES NOT equal freedom to do whatever you want all day.
This is an important distinction, so I hope you’re paying attention.
I find myself often suggesting that they work on growing a portfolio of cashflowing rental properties, one that will in short time cover their living expenses, thus giving them the ability to choose whether or not to work, what to work on, etc.
Their reply is usually “Well, yeah, that sounds awesome. In fact, that is one of my longer-term goals. I want to do that down the road when I’m ready.”
My reaction: “Uh, wait, what?”
Then I usually go on to explain that buying rentals (i.e. creating passive income) is:
- The first thing you should do
- Easy to start doing right away, no matter how much cash you have or where you live
- The most important thing to figure out
I also go on to explain that starting with a goal of just ONE DOZEN rentals is an amazing “baseline” level to achieve.
You can expect to net 40K/year with this size portfolio, even if all of them are leveraged (meaning you used a loan of some kind to buy it).
The crazy part is that most people could actually live off of 40K per year (after taxes). It’s the average American income.
They could get their dozen rentals and be “retired” from working for money ever again.
Even if you need more than that, having that much come in predictably, on-time, everytime, WITHOUT working for it is a HUGE leap towards financial freedom.
You always have that 40K to fall back on, even if you were to lose your other sources of income.
That’s why I have a saying “You’re just a dozen houses away”.
Is this registering with you?
What’s your biggest question about getting your first 12 houses?
To your FREEDOM…
Brian
