8 Steps to Become Financially Free with Real Estate
Did you know that you could become financially free in 1 – 3 years, without using any of your own money?
Did you also know that you don’t need years of house flipping experience either?
Many people who read through Robert Kiyosaki’s Rich Dad Poor Dad book think that buying single-family homes is the only path to passive income.
The truth is, you can actually bypass buying single-family homes and go right into purchasing apartment buildings to achieve your financial freedom goal sooner.
Yes, you read that correctly!
YOU could be the proud owner of apartment buildings and earn passive income along the way.
In this post, I’ll outline a step-by-step process on what it takes to buy your first apartment building.
What has commonly been considered a far-fetched goal is more achievable than most people think and I’ll show you how.
Map Your Vision To Become Financially Free
This is the first step in your journey to financial freedom. Mapping your vision gives you clarity on what you want or don’t want in life.
There are several ways to gain clarity:
- Clarify your vision
- Develop affirmations to envision yourself achieving the end result
- Create a morning routine to repeat your affirmations, meditate, and set your intentions
It’s important that you’re crystal clear with your vision. It’ll be the anchor to keep you grounded when things get tough.
Real estate investing is like a roller coaster ride with many ups and downs, but when you commit to it and see things through, it’s certainly worth the effort.
A term you’ll need to get familiar with is syndication. When you venture into apartment building investing, you’ll want to get connected with specific people to team up with as general partners.
With your partners, your team will have specific roles to play in the process of identifying deals, analyzing them, reaching out to investors, and making offers.
Since apartment buildings are a large purchase price, the goal is to “syndicate” your pool of investors and raise the necessary capital to make the acquisition.
It’s important that the people on your team are like-minded, trustworthy, and reliable. When you’re syndicating with investor money it’s critical you’re closely connected with your team and can have courageous conversations when necessary.
Another connection that will be valuable in your journey is recruiting an experienced advisor.
Whether it’s a paid mentor or someone you trust, you’ll want to have a seasoned investor in your corner to guide and steer in areas you’re not well versed in.
I’ve been fortunate enough to create and launch a thriving community where many investors (of all levels) congregate, share ideas, talk through deals, and make valuable business connections. If you’re interested in learning more, here’s the link.
Build Your Skills
Right now, you probably have limited knowledge of what the next best step would be after you clarify your vision and set up your team.
I highly recommend that you start building the skill set of identifying and engaging with real estate brokers.
This requires communication skills, knowledge of the industry and market you’re looking to buy in.
With the help of two other key players, the property manager and lender, you’ll be able to gather enough data to have an intelligent conversation with the brokers you approach.
Another great way to build your knowledge base is by attending seminars, joining a program, reading books, and even listening to podcasts.
It’ll be easy to speak with brokers (and investors) when you know the language and can speak to certain topics confidently.
FYI, this is an ongoing process. There’s always something new to learn even after you grow a massive portfolio.
Become Financially Free By Working the System
There are only 2 things I want you to do during this step: analyze deals and talk to investors.
It can get a bit boring and might look like you’re not making any progress, but trust me you are.
In this step, focus on the activity rather than obsessing over the outcome.
I want you to analyze every deal you come across and talk to anyone interested in investing.
Do this consistently for about 30 days tracking your activity in a spreadsheet and you’ll be amazed at what you learn or how fast you’ll develop as an investor.
The key is to be VERY intentional about this step.
Set up mini-goals like:
- analyzing 2 deals a week
- having 1 meaningful meeting with an investor each week
Track your progress.
Keep copious notes of who you met and start measuring the effectiveness of your networking, which leads me to the next step.
Build Your Pipeline
At this point, you’ll have passed about 90 days. You now have adequate knowledge of multifamily syndication having had countless conversations with numerous people.
From talking to potential investors and connecting with brokers, analyzing the deals they send you, you now have a working semblance of a pipeline.
You’ll want to track 2 different pipelines.
One for deals to analyze and another for potential investors.
Although you may not have your first deal yet, through your connections and conversations, you’ll have things brewing.
When you continue to work the system, your pipeline will form and grow as well.
Keep in mind, you’d have also encountered the emotional highs and lows of being an investor. It’s important you remember WHY you’re doing this and WHY you committed to the process.
You can only control the activity you put in, the rest will follow, so stick with it as long as it takes, and don’t get discouraged.
The promised land is right around the corner.
Close the Deal
Now that you’ve generated a healthy momentum for yourself, at this point, it’s kind of like fishing with a hook that’s a little too big for the fish in the water.
You cast out, reel in, bait your hook, cast out again, and it’s all really repetitive.
Then all of a sudden … BOOM!
You got one on the line. This is when the investing gets exciting!
All your training comes into play and you’re ready to close your first deal.
Grow and Scale
After your first deal, expect to become a money and deal magnet.
You’ll have brokers calling you with off-market deals, investors jumping on any opportunity to invest with you, and your second and third deals will basically fall into your lap.
Just let it happen.
It’s now a very exciting time because you’re about to become financially free, then after your third deal, you’ll start thinking about scaling.
This is when you accelerate the process to collapse time and reach your financial destination faster than you’d ever imagined.
Now you’re ready to hire more team members to handle the day-to-day operations.
Make a Difference
Now that you’ve scaled, everything is operating like a well-oiled machine, and the passive income is paying for your living expenses.
I recommend you dig deep and find a cause or passion to align with and make a difference in this world.
People who are financially free come to the realization that they’ve put the oxygen mask on themselves, and now can put it on others.
That’s the powerful shift you’ll experience when you become financially free.
Do you help a local charity? Support a global mission? Lead the PTA at school and volunteer in your children’s classroom?
Whatever it is, make it specific and meaningful. Financial freedom unlocks the true purpose in all of us.
This journey is really your path to a life of significance, passing through your first deal and using financial freedom as a stepping stone to make a difference.
Now that I’ve laid out the blueprint for you, what will you do?
It’s worked for me, it’s worked for many others, and it will definitely work for you.
If you want a visual of this financial freedom outline, visit this link to download my deal maker blueprint.
Your path to financial freedom is much closer than you think.
Thanks for making it this far 🙂
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