What is financial freedom and independence worth to you? What will you to do to achieve it? It’s there for the taking, if you’re willing to do the work. You may not think it’s possible, but don’t write off the possibility. Always think about how you can do something, not the reasons why you can’t.
Whether you think you can, or think you can’t, you are right.
If you write off the possibility of investing in real estate because you think there’s no way you can save for your first property, that will manifest itself in your life and become true. If those are your dominating thoughts there is zero chance you ever save enough. You will never get your first property. Instead of thinking it’s impossible, decide nothing will stand in your way. Steadfastly decide that you will do it what it takes to purchase a rental property. Then that will manifest itself and you will make it happen. Success begins in the will of the person.
STOP WITH THE EXCUSES
It’s stunning how remarkable reasons and circumstances people can come up for why they haven’t met with success… If I didn’t have family. If I had money. If I had time. If times were better. If conditions were different. If I had been given a chance. If I were younger. If I were older. If I had the talent. If I were sure of myself… You can tell your story as if you are the victim, or as if you are responsible. Until you realize you are responsible for you, good luck, nothing will change in your life.
There are such incredible advantages of investing in rental properties that financial freedom is attainable for anyone that is willing to do it. It doesn’t matter where you are starting, all that matters is that you start. But where do you start? There’s so much to learn now about how to find and analyze properties and how to manage them successfully. But even before we begin to dig into that, you need to know where your first down payment is going to come from.
GET YOUR FINANCIAL HOUSE IN ORDER
Saving up for your first property can seem to be a daunting task. Perhaps it may even seem like an insurmountable goal for many people. I realize not everyone has the excess cash just lying around available to invest. If you already have some money you can access either in your personal or investment accounts then great! But if not you will need to make some changes. If you don’t know where the money would come from for your first investment your first priority is to get your financial house in order. You must get your personal finances under control.
Maybe you find yourself just digging yourself deeper and deeper into a hole of debt. The first thing you have to do is stop digging! Maybe you aren’t digging a hole but are flat-lined. You might be living paycheck to paycheck with nothing extra to save at the end of the month. Perhaps you make plenty of money, but you’ve fallen into the trap of keeping up with the Jones’. Whatever your case may be sit down and really track where every dollar is going. I bet you would be shocked, and perhaps disgusted, at how much goes to useless junk. Junk that provides zero enrichment or fulfillment to your life what-so-ever. Eliminate those things! Look into resources such as Dave Ramsey or other experts for excellent, attainable advice and direction on budgeting and saving.
It is doable for all people. You may have to bootstrap and give up many little luxuries now in order to save up for the first investment property. But trust me, in ten years when you have achieved financial freedom, quit your job, you won’t care. When you are living on your rental income you really won’t care that had a frozen pizza instead of ordering takeout. You won’t care that you cooked a meal and had a bottle of wine for your date night instead of dinner and drinks out. Some budgeting and saving won’t matter when you’re living the good life.
You may also want to see if there is a way you could increase your income too. Consider working a few extra hours a week. Hit garage sales to find items to sell online for a profit. Or find any number of other things that could create some extra income. If you can budget your expenses and save extra every week, as well as make some extra income you can get there much sooner than you think! Where there’s a will there’s a way.
THE SHORTCUT TO YOUR FIRST PROPERTY
Now the good stuff; the fast track for your investment career, the shortcut to getting first property. If saving for your first property would be a struggle and a long process, there is a way to start for much less. I highly recommend purchasing something like a duplex and living in one side. What this does is it makes it a primary residence loan instead of an investment loan. As such the down payment requirements are vastly different. Instead of the typical 20-25% down for an investment property, you can put as little as 3.5-5% down. Even if part of is a rental.
This is an excellent strategy worth considering. And not just for those with limited funds. It’s a fast track for anyone that is looking to take a shortcut down the real estate investing path. With one side rented out your monthly housing expenses may be next to zero. Living for free is a HUGE monthly savings! Imagine how quickly you can save up for your second investment property with no housing costs. Especially after you’ve learned to budget in other areas! So by purchasing a multifamily property and living in one of the units, not only can you purchase your first investment property for as little as 1/7th of the amount of cash normally required, you will be able to buy your second that much faster, and the next, and the next.
DO WHATEVER IT TAKES
I’ve shown you how the exponential growth power of real estate investing can lead to financial freedom in an incredibly short amount of time. Even by just getting the first one going and growing it from that (read Exponential Power of Real Estate). So do whatever it takes to get that first one! If you have to make some sacrifices right now so what?! Those sacrifices are nothing in comparison to the reward of living financially free within a decade. Do you think in ten years you’ll care that you ate out less, or delayed getting the new car you wanted if instead you were retired!!! I highly doubt you would look back and say “You know, living financially free is great. But I really wish I would have ordered take out more often.” Don’t make excuses, make progress.