If you’re an entrepreneur looking for new ways to increase your monthly income in 2019, real estate investing can be the fastest way to put more money in your pocket, reduce your stress level, and let you quit your job within 3-5 years. Using our seven-step process for investing in apartment buildings, you can keep your business running while investing in properties that will eventually cover your monthly expenses and more.
The hardest part is closing your first deal. While you don’t need any money of your own to build a portfolio, you need is a willingness to learn. Let’s take a closer look at our proven 7-step process that can help you set goals, get started, close your first deal and become financially free.
Step 1 – Determine and Reduce Your Rat Race Number
Creating a roadmap is your answer to getting out a daily 60-hour work week rat race. In Robert Kiyosaki’s book, Rich Dad Poor Dad, he defines financial freedom as you can cover your monthly living expenses with passive income from investments. To reach this milestone, you can either increase your passive income or lower your expenses. To get there, your first step is to figure out what is your Rat Race Number, which is your total monthly expenses that you need to cover.
Step 2 – Complete Your Vision Map
Your next step is to set specific financial goals that will let you achieve financial freedom through real estate investing. While most people don’t believe this goal is achievable, we encourage everyone to do our “Vision Map Exercise.” You want to map out your milestones for the next twelve months, ninety days and this week. Look at every area of your life and be honest about what you want in your life, including business, financial, health, relationships, recreation (fun!), spirituality, giving and anything else that is important to you.
Step 3 – The Pre-Launch Sequence (The First 30 Days)
During your first thirty days of this 7-step plan, you will need to learn a minimal skill set and confidence for real estate investing. During this timeframe, you want to work with people who can help you clarify your first real estate deal. Evaluate the best place for you to invest and analyze five deals to increase your confidence. At the end of the month, your goal is to put together a sample deal package to raise money.
Step 4 – Launch (The Next 60 Days)
Once you have a better understanding of real estate investing, the vocabulary and your deal package, now it’s time to take action. What is most important is to have “consistent activity to create new habits.” For example, each week you should be doing three things: 1) Analyze and make offers, 2) Meet with potential investors and 3) Build You’re A-Team.
Step 5 – Build Your Pipeline
If you’ve done the work in the previous launch phase, chances are you will also have outcomes and build a pipeline of deals. In this Step 5: Build Your Pipeline, you want to continue to make offers and raise money to build your number of leads and potential investors. And the bigger your pipeline, the faster you can close your first deal. At this stage, it’s important not to get discouraged and don’t give up! To keep you moving towards your goal, find a support community and accountability partner.
Step 6 – Milestones to Closing Your First Deal
Once you have a solid pipeline of deals and investors, it’s only a matter of time before you can close your first deal. And your closing process will include these eight major milestones: Negotiate and Ratify the Contract, Perform Due Diligence, Hire Your Property Manager, Secure Financing, Initiate the Closing Process, Prepare Your Investors for Closing, Close and Cash your Acquisition Fee Check, and Manage the Property for Maximum Profits.
Step 7 – Leverage the Law of the First Deal to Achieve Permanent Financial Freedom
Once you go through the steps to closing your first deal, the Law of the First Deal will result in increased confidence and bring you great long-term success in real estate investing. This last step of achieving permanent financial freedom is actually the easiest because it usually happens automatically after your do your first deal.
For more information about this 7-Steps to Quitting Your Job in 3-5 Years process, you can find the details in my new book, Financial Freedom with Real Estate Investing – The Blueprint to Quitting Your Job with Real Estate – Even without Experience or Cash. With dedication, education and the right team, you can do this! Don’t get discouraged. Take action every day to get one step closer to living the life you’ve always wanted so you can focus more energy on what matters most to you.
