Financial Freedom in 5 years, The ultimate plan!
Can you reach financial freedom in 10 years?
It is possible for anyone at any age (over 18) in less than three years to receive complete financial freedom depending on how bad they want it. This is entirely circumstantial but very possible. In Scott Trenches book Set for Life, there is a pretty good start explaining that you don't need a budget and you don't need spreadsheets because it's scarce that you stick to them anyway. You don't need to cut down on your spending you need to focus on the big things that you are spending the majority of your money on, such as your house and your car and the gas for the car. In theory, you don't even need to focus on your daytime job you could be making min. Wage. So here is a simple timeline and example on how this person could do it in 10 years which is a pretty long time if you want it bad enough. But you have to want it bad enough. This is through Real Estate of course. This a single person is living in an Apt. Making min. Wage.
Year one: Realize that you want to be financially free. Read every book you can get your hands on about living financially free. Rich dad Poor dad, Set for Life, Four hour work Week, the Richest man in Babylon. Now you have the mindset focus on Real Estate Books: Beginners Guide to Real Estate Investing, All the J. Scott books research on Bigger pockets every day.
Year two: Start networking on this site at local REI meet-ups. If there's not one make one people will show up. Start talking to your family about it. Chances are they know someone who did or doing what you want to do. We're going to start with flipping so we can have money sooner than later to begin our rental portfolio. Now by the end of this year, you should know at the very least two or three people in the industry that are successful. Tag along on one of their projects to learn the processes. Now you're ready for your first deal. Get on the MLS, drive for dollars and talk to people. These options are both free, so up until this point, we haven't spent any money.
Year Three: At some point in this year if you haven't given up you will have found a deal. (but we don't have any money) Well lucky for you, you have been networking for a whole year, and you know people who know Real Estate. With the combination of Hard Money and using your network to put up the money, you need for your down payment you're ready for your first flip. Now that it's complete you have a little bit of money anywhere from 10-20k depending on your area and how much profits you paid back to your lenders. Now do it again, but this time it's easier because you have less money to raise and you have done it before. Now that two flips in one-year that's not an outrageous goal.
Year Four: flip At least 5-6 houses. You should be good at numbers and financing at this point so you should have at least 100K saved at this point because your making 20K off each flip. Now you have two options at this point you can either start buying rentals or expand your flipping business. Let's say we put 40K down on a duplex that's generating $300 per side in cash flow a month. We only put 40K down so we can still have money for our flips. You're still working your minimum wage job, so all of your bills are still being taken care of so you can save all of your profits.
Year five: Flip lets say ten houses which still isn't a lot. Now you have 200k saved up. You now have enough to put a down payment on a million dollar apartment complex, or you could put together a syndication deal and have an asset worth anywhere from 5 to 10 million dollars. You get that together and your making at least 5000K a month in cash flow plus the 600$ from the duplex. And we're done in five years with only 17-18 deals. But why would anywhere stop there?
That didn't even take ten years, and you could move at a slower pace. The thing is anyone can do this regardless of what their situation is. A dollar was not spent out of your pocket until you made money off your first flip. The problem is people usually think they want something, but they don't want to put the work into making it happen. You could even do it faster if you leveraged more had more partners and flipped more houses sooner. This example did nothing but learn and network for the first two years. Its simple it might not be easy, but it is simple. If you take active steps each and every single day then you will make progress and you will be there. Skyler Mckinney