Why do people say they want financial freedom and we often hear that real estate is the path to financial freedom’? First, can we agree that financial freedom removes the worry about sufficient money to pay expenses and it gives us more of an option to have free time to do what we want? Assuming that is what we want, I suggest we talk about passive income and understand that since that is how most wealthy people build wealth.
Passive income means income that you earn by not directly trading your time for income. So, where do you find these opportunities? One of the best places (and my all-time favorite) is the biggest, greatest, oldest asset of all time, Mother Earth aka real estate! Without it, we would not be here, so in my opinion, it is the greatest asset of all time.
There are 3 key elements to human survival: water, food, & shelter. Our investing strategy is to focus on shelter. People will always need a place to live.
There are two ways to go about investing in real estate; active and passive.
If you decided that you don’t want to take on the three t’s (tenants, toilets and trash), you can have a property management company take care of that. Most property managers charge 8-10% of the rent collected for management fees, but now you have to give them direction, make decisions, invest when repairs and improvements are needed, pick the materials, contract, etc. You still need to be actively involved.
If you would rather not think about the property, deal with issues or be involved, let me show you how passive investing can help lead to financial freedom! Many commercial real estate investments are average a solid 6-% cash on cash return, potentially higher. The more important measures: the average annual returns and internal rate of returns typically range 12-18%. Want to know more? Follow my journey, call me and let’s see if our goals truly align. There are SEC (Security and Exchange Commission) rules on what can be said until we have talked about goals, investing experience, wealth to date, etc, so call and talk to us.