I was thinking and came up with the two things that I think are the most important in building wealth through real estate investing.
Phase one of wealth creation is the work phases. There’s a lot of it and some of it will be difficult.
You need to find and cultivate sources of money (investors). You need to locate the properties. You need to create the loans (debt instruments) and remarket the properties. That takes work. It may take you six months or six years. Either way, you can do it. There are people all over the world making this work right now. And! I bet it’s not as hard as the job you do now or as exhausting as the idea of being a slave to a regular job until you’re 65!
Essentially, you are no different than me when it comes to investing in real estate. You are only a few years behind on your investment timeline. The Lag principle has not yet had a chance to activate. But it will, and when it does… watch out. Because it brings with it Financial Freedom!
Phase 2 has to do with cash flow. Cash Flow that creates Automatic Wealth.
Cash flow, not cash, is the best source of wealth creation. When you can retain the cash flow from your businesses, then you are well on your way to becoming rich. When you own the cash flow from the properties, instead of selling them for cash, you are ready to move into phase two of building wealth. Financial Independence.
Make enough deals and eventually the cash flow from your efforts will provide you with the $10,000 a month you wanted. You will have produced the cash flow to sustain yourself over the long term. You will have the freedom to do what you want when you want to do it, where you want to do it, with whom you want to do it, regardless of cost! That is true financial independence.
