How to Quickly Get 10 to 15 Good Rental Properties Paid For Free and ClearPosted on January 30, 2013 by
We are already in the second month of 2013 and I just had a conversation with one of my students who wanted to know how to create wealth in the shortest possible period of time. The following is my idea how wealth for any real estate investor can be created in the shortest period of time.
Here is an example of how you can quickly achieve financial freedom and then wealth investing in real estate.
For instance, the first thing you need to do is buy 10 to 15 well selected income producing properties you are willing to keep long term as your retirement program and the base of your future wealth. I personally love the thought of someone else having to go to work every day to earn money they give me in the form of rent each month that pays for my properties without me having to have a job or have to go to work every day. Then once you have bought your 10 to 15 keeper rental houses in good neighborhoods, with tenants who are paying on time, every month, let’s say, $1,000 each month of which $520 goes for the monthly loan payment, and after monthly expenses of property taxes, property insurance, a maintenance fund and a vacancy fund leaves you from the $1,000 gross rent approximately $150 each month to put into your pocket. Let’s say for each of your keeper rental properties you paid $88,000 with very little money down and were able to get seller financing terms for 30 years.
Then once you get those 10 to 15 houses free and clear with no debt each month you get to keep the entire $1,000 from each house, (less taxes and insurance and maintenance costs) leaving you about $600 to $650 from each house each month. Ten houses at $600 each equals $6,000.00 each month paid directly to you to pay your bills. Some of you might need 15 houses to achieve your goals. If you have 15 houses x $600 net each month will give you $9,000 per month income to cover your monthly expenses. Once you have that much coming in each month you will have financial freedom, but not yet wealth. Wealth comes over time. Let me show you how to get your properties free and clear in the shortest period of time.
Getting Your 10 to 15 Houses Free and Clear In a Short Period of Time
After you have your base of 10 to 15 houses bought, then each year go out and buy an additional 10 to 15 houses. The additional 10 to 15 houses you buy each year can be rehabbed and then sold. If you were to take all of the profits from the sale of each of the additional 10 to 15 houses (after paying the taxes) and use the money you have left to pay off one or two of the loans on the houses you plan to keep and you did this over and over for a few years, your base of rental properties would soon be completely paid for and you would then have enough income coming in each month to be financially free.
This is definitely a plausible and possible plan to become financially free in the shortest period of time. Once you have done this you will then have more time and money to continue to buy even more houses simply because you will have enough income each month coming in so you don’t have to go to a job you hate every day.
Once all of your base of income producing properties are completely paid for and are free and clear you will probably truly be a millionaire. If you have 15 properties valued at $80,000 that are free and clear your net worth will be $80,000 X 15 = $1,200,000. Now you are wealthy!
You Must Have a Wealth Building Strategy to Be Successful
This is how true wealth is created over time. People who only wholesale property for a living are not true investors — they really have a job. When a wholesaler buys a property and then passes it on to another person and they get paid a fee, that money will be quickly spent and they then have to go out and find another property to wholesale again so they can get another fee. To me, that’s a job and I don’t want another job. I want financial success.
If you plan to be a successful real estate investor and create the wealth you want, it is going to be very important that you are able to recognize opportunity when it presents itself. It took me nearly 25 years to figure this out for myself and that is why I am sharing this information with you now, so you can more quickly achieve financial freedom and your eventual wealth.