The key to being financially independent is to invest in real estate.
This article financial freedom with real estate investing is for you if you are an employee who wants more freedom, a self-employed person who wants to feel safe, or a person who wants to quit and is looking for a way to do so without stress. For the article, we interviewed John Clark, a business owner and investor in charge of over 200 apartments. He built an empire on the side of his job and without a lot of money. Should you put your money into real estate? What do you need to do to get started? How do I make enough money from real estate to be financially free? Find out what the experts say about how to start investing in land from scratch.
Financial freedom with real estate is a simple way to protect your finances.
Real estate is a way for business owners and employees alike to make more money.
What does it mean to put money into real estate?
When you invest in land, you purchase apartments, buildings, or even houses to rent out. By putting your money into these properties, which are meant to house other people, you build up your savings. The recipe has been around for a long time, so this activity is still pretty simple.
“You can get rich through real estate by using other people’s time and money.” You can use money from the bank and renters to build up your wealth.
There are as many investor profiles as there are investors! Some people choose to buy a few properties, which give them a sense of security by giving them a steady stream of income. Others choose to invest enough money to give themselves real financial freedom and a higher level of comfort. Others, like financial freedom with real estate investing, buy more than 200 apartments and think about putting them on the market in a big way, like an industry.
The most important thing is to find a way to invest that works for you, one that you will enjoy doing and feel good about. In fact, the land is still something we shouldn’t rush into to get rich. You don’t even have to care! Different parts of the activity can show interest.
So, what kind of investor do you want to be? Who has more fun: the one who loves stones and visits, or the one who likes to change the look of the things they buy? The one who cares deeply about his tenants or the one who cares deeply about his business growing
John is a big fan of the board game Monopoly, and he sees real estate investment as a real-life version of the game. But behind the visible face of the important landowner are some less pleasant things, like the relationship with the bank, sometimes tense relationships with the tenants, and even unpaid or damaged liens… The most important thing is to know it before you start.
Some wrong ideas about investing in real estate
“Tenants are hard to deal with because they don’t pay rent and break things”
Yes, it can be hard to get along with tenants. Some people do pay late. Yes, others (or the same ones) will damage the housing. This argument is easy to use if your family is careful and worried about you. financial freedom with real estate investing had to deal with this limiting idea when he was young. It was shaped by the fact that it came from a place where wages and CDI are the norms and where investment is seen as a risk. The truth is very different from these false beliefs.
Since he began, financial freedom with real estate investing has taken care of about 0.3% of his unpaid bills for all of his real estate. A negligible percentage. The French average is a little bit higher, but that is mostly because most investors do not rent out their properties professionally. In the same way, some people who live in a home can make it worse, but this happens very rarely. Last but not least, it is a reason not to act!
“Unpaid is a big worry for a lot of people, but it doesn’t exist at all if we run things the right way.”
“It’s hard to get a loan because the banks won’t help me.”
Contrary to what we learn as kids, just because we say no once doesn’t mean we can’t say yes later. In other words, just because one banker says no to your project doesn’t mean that none of his peers will do the same.
In the past few years, banks have become more strict. By almost completely getting rid of the differential debt ratio in 2022, lending institutions will be even tougher on rental investors. But this doesn’t mean that you can’t start or keep your real estate business going. Banks can allow a certain number of exceptions in the way their cases are handled. Set everything up so you can be one of these rare cases! Think of it as a chance to make your approach more professional. You will have to work, put together good files, and present them. But the goal is still reachable.
Getting into real estate while you’re working
John got into real estate more or less by accident. At age 25, he decided that he did not want to work for someone else for the rest of his life. He then had a good job and was paid the right amount. But he didn’t feel at home. So he started to think about what he could do in addition to his job so that he could get rid of them in the end. He was interested in investing money and tried out the stock market. At that time, it didn’t work! He gave up because he had lost money and didn’t have much left to invest.
At the time, he and his partner wanted to sell their apartment and buy a house so they could start a family. They figured out that if they rented it out, the rent would pay for the monthly mortgage payments. He then had an idea: not only would they keep the apartment, but he would look for other properties whose rent would pay off the real estate loan.
“Like small steps, it really has happened step by step, little by little.
The side project works well with real estate investments. John finally stayed with his company for 10 years because he was stuck in his huge game of Monopoly. During this time, he worked a lot, both for his boss during the day and on his own real estate in the evenings and on weekends. Having a permanent job can give you an advantage over banks when you invest. Showing a stable situation gives comfort! This doesn’t mean, though, that entrepreneurs still can’t buy land or that you have to keep your salary job.
John says to take small steps forward.
- First, give yourself the goal of making the same amount of money from real estate as you do from your job.
- So, this income makes up between six months and a year’s worth of cash (make sure you have six months to a year of savings wages).
- If you want to focus on your new activity, you can calmly quit your job.