Want to retire in 2 to 3 years? Read on for the 8 secrets to becoming financially free with multifamily real estate investing!
What separates wannabe multifamily investors from those who follow through and achieve financial freedom?
After several years of working with mentoring students and many others with multifamily ambitions, I’ve uncovered 8 secrets that turn aspiring investors into successful real estate entrepreneurs who have become financially free.
I explain how to set clear goals and focus on your first deal, celebrating the milestones along the way. You’ll understand how to build a strong support network, avoid the “Investing Graveyard”, and retire in 3 years—or less!
Watch the video below (or keep reading).
Secret #1: Focus on Your First Deal
In the beginning, don’t worry too much about how many units you’ll need to retire. Dedicate all your energy and resources to doing your first deal. Use our Syndicated Deal Analyzer to create a Sample Deal Package. Visit the property and pretend it’s already yours.
Once you’ve done your first multifamily deal of any size, The Law of the First Deal tells us that the second and third deals will follow in rapid, almost automatic succession. And you will achieve financial freedom in just 2 to 3 years! (Learn more about The Law of the First Deal by listening to this podcast, or access a full explanation in my book, Financial Freedom with Real Estate Investing.)
Secret #2: State Goals Clearly Over Multiple Time Frames
As Gary Keller outlines in The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results, it’s very important to state your goals in the present tense (as if they’re already real) and make them measurable:
- By June 30, I will have closed on my first 20-unit deal.
- By June 30, I will have received commitments from 4 investors, totally more than $200K.
Set goals for today, this week, this month, and the next 90 days. (I use Google Keep to track my goals.) I’m a fan of the 90-day time frame because it’s long enough to make meaningful progress, but not so long that you’re coming up against variables outside your control.
Secret #3: No Plan B
What’s the problem you’re trying to solve? If your current life ain’t so bad, you simply won’t maintain the drive you need to keep going when things get hard.
You’ve got to believe that life, as it is, is UNACCEPTABLE. So, burn the boats and make real estate investing your only plan!
Secret #4: Do the Next 3 Things
It’s easy to get overwhelmed by the 110 things you need to do to close on your first deal. So, just worry about the next 3 things. You probably already know what they are, so write them down:
- Talk to that broker
- Read that book
- Go to that seminar
Knock out those 3 things and then tackle the next 3. Keep plugging away and after a month, you’ll be AMAZED at how much you’ve accomplished!
Secret #5: Focus on Activity, Not Outcome
When you’re first getting started in multifamily investing, you’re developing skills. Analyze every deal you can get your hands on, regardless of size. Talk to anyone who will listen about multifamily investing whether they have money or not.
At this stage of the game, quantity is more important than quality. Building your skills in turn builds your confidence—and that’s the key to landing your first deal.
Secret #6: Overcome the Investing Graveyard
Early on, aspiring investors are gung ho. Maybe they’ve attended an event like Deal Maker Live, and they’re inspired to take action. But in my experience, there are 2 times when a lot of would-be investors get frustrated and give up:
- The first is at about the 2-month mark. You’ve been working hard but don’t have anything to show for it yet, so your enthusiasm starts to wane.
- The second is when you’re forced to terminate a contract during due diligence.
If you get a deal under contract but learn during the property inspection that there’s a $50K problem with the foundation, for example, it’s incredibly painful to realize that the deal won’t work, and you have to walk away.
It kills me when people quit at this point, just a few feet from the goal. If you’ve gotten this far once, all you have to do is replicate the process and BAM, you’re generating passive income. Be sure to surround yourself with a strong support network that will keep you going—even when the going’s tough.
Secret #7: Celebrate the Milestones
Keep yourself motivated by celebrating the milestones you hit on the way to financial freedom. Give yourself a pat on the back after you’ve analyzed your first deal and again after you’ve analyzed 12.
Take a moment to recognize the achievement when you’ve got a verbal commitment from your first investor. And celebrate the first time you’re invited to submit a Letter of Intent (LOI). Stop to enjoy the little successes and appreciate the progress you’re making!
Secret #8: Remember You’re on a 2- to 3-Year Retirement Plan
So what if it takes 12 or even 18 months to do your first deal? You’re on a 2- to 3-year retirement plan—which is a heck of a lot better than the 20-year (or longer!) retirement plan you’re on right now.
Once you’ve got that first deal under your belt, the second and third deals will follow in the next 12 months. By that time, your living expenses will be covered, and you’ll have the option to quit your job. But you’ve got to stick with it!
There you have it, the 8 secrets to becoming financially free with real estate investing. Set clear goals and keep your focus on that first deal, doing 3 things at a time and celebrating your milestones along the way.
In the beginning, emphasize activity over outcome, and remember you’re on a 2- to 3-year retirement plan—so, don’t get discouraged and end up in the Investing Graveyard! Build a support network that can help you stay strong through the challenges.
Need help building that support network? Our Investor Incubator mentoring program may be just what you’re looking for. Schedule a no-obligation call with us to see if there’s a fit!