HOW TO ACHIEVE FINANCIAL FREEDOM IN REAL ESTATE

What is Financial Freedom? Financial freedom is the ability to make life decisions without being overly stressed about the financial impact.

A goal most people want to achieve but seems unrealistic and impossible to most. Fortunately, I am here to tell you how obtainable this is if you put your heart, sweat, and tears.

It is to no surprise that with anything you do, you need education. Being educated will serve as a guide as to how, where, and when to invest in real estate. As well as, knowing how to "run your numbers" is crucial in any real estate strategy you pursue, as this is the engine that generates cash flow. You will also learn to mitigate risk, get tax benefits, and use equity to increase your real estate portfolio, among other things. Today, there are many resources like books, videos, podcasts, meetups, and audible to help keep you informed.

Knowing your goals is one thing but knowing your expenses is just as important. These two work hand in hand to achieve Financial Freedom. Let me explain. Your revenue source should offset current expenses. When calculating monthly expenses, make sure to include everything, even personal/entertainment money. For example, let's say your focus is on rental properties to acquire financial freedom, and your monthly expenses are 4K. Then, look at the amount of cash flow rental properties are bringing in. You can obtain this by having your agent send you a rental comparable and plugging the numbers on the BP calculator. Let say it's $300, now take the 4k (expenses) and divided it by $300 (Cash Flow), which equals around 13. Meaning you need 13 rental properties that cash flow $300 a month to reach the 4k.

Please keep in mind that there are so many variables that can change the equation. The example is a visual representation, so it is short and simple to understand. The revenue should be greater than your spending, therefore working backward will help visualize your goal.

As mentioned before, understanding how the numbers work will help you read any property and make smart financial decisions. There are many ways to invest without using your money, and having a financial plan can give you access to funds. The more you grow, the more your rental portfolio will increase and ultimately achieve financial freedom.

Reaching financial freedom is reachable and has been proven time and time again. If you have any further questions or would like to share your experience on the topic, don't hesitate to connect with me here on BP. I'd be happy to help you on your journey.

Good Luck.