Here’s a simple truth. It’s almost impossible to become financially independent working a 9 to 5. As Robert Kiyosaki points out in his book Rich Dad, Poor Dad, the disadvantages of being an employee are just too numerous. Taxes, for one, crush your wealth building ability. Worse yet, you’re not guaranteed job security. And if you don’t work (get sick, injured, laid off, etc), there is a good possibility you don’t get paid.
That’s why I constantly stress the wealth formula:
Income – Expenses = Capital (seed money) left over to create wealth building assets.
Save money from your 9 to 5 to invest in or create wealth building assets. Great wealth building assets include stocks, bonds, and your own side-hustle/business, all of which I’ll touch on in upcoming posts.
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But one of my favorite wealth building assets is real estate, specifically rental real estate. The advantages are incredible.
- You create immediate cashflow when you pocket the difference between the rent and your expenses (mortgage,maintenance,taxes, insurance, etc).
- Your renter pays down your mortgage.
- You earn tax benefits that put more money in your pocket.
- Your rental property appreciates.
If you hate finding and managing tenants and property there are even property management companies that will do that for you.
But I sense your doubt. Perhaps you’re thinking:
“I don’t know anything about real estate.”
“I don’t have enough money to invest in real estate.”
“I have a full time job. Where am I going to find the time for real estate?”
“Real estate investing is just not for people like me.”
If this is you, consider the case of J. Massey. Massey was homeless with a credit score below 400. But through real estate he become a millionaire who now owns over 300 rental properties. I implore you to listen to his story at His and Hers Money, then check out his website at Cash Flow Diary.
His story is not unique. There are thousands of people who started off as teachers, firefighters, or college students and created financial success through real estate. You must be able to work hard and have the right knowledge. Plunge into real estate investing without doing your homework and you’re jumping out of a plane without a parachute.
So how do you get the knowledge you need to succeed?
For me, it came from BiggerPockets.com. This is one of the largest real estate investing communities on the internet. They won’t sugar coat the challenges of real estate investing. Instead, you’ll learn the techniques for earning true wealth through owning real estate. You’ll also be able to interact with over 850,000 members of the BiggerPockets community through online forums.
The biggest benefits I’ve gotten from BiggerPockets have been through the following three resources that can also help you get started in real estate investing.
Resource #1 – The Ultimate Beginner’s Guide to Real Estate Investing
The free BiggerPockets Ultimate Beginner’s Guide to Real Estate Investing. This guide walks you through the steps needed to master real estate investing.
Resource #2 – Bigger Pockets Podcast
The BiggerPockets podcast: Each week the BiggerPockets crew interviews someone who has become successful in real estate so that you can learn through their successes and failures.
Resource #3 – Bigger Pockets Book on Rental Property Investing
The BiggerPockets Book on Rental Property Investing. Unlike the Beginners Guide and weekly podcasts, this is not a free resource but can be purchased on Amazon or the Bigger Pockets website. I’ve found it to be one of the best and most comprehensive books on real estate investing. It’s well worth the price but you might also be able to find it at your local library.
Now, if BiggerPockets is not enough of a real estate education for you, I suggest you walk over to Life, Liberty and Property where John and Richelle can provide you with additional nuggets of wisdom for your real estate journey.
I understand that real estate investing may not be your cup of tea, but if you are even a little bit interested, I suggest you check these resources out. They just might change your financial life.
BMWK, are you ready to take the leap into real estate investing?