This episode of the High Return Real Estate Show is the second of two podcasts where the topic is achieving your life’s vision with Real Estate. Jeff Schechter and Jack Gibson talk about the nuts and bolts of how to achieve your life’s vision.
Key Lessons Learned:
Getting Into The Numbers
- Whenever we get to a certain income, we tend to spend about that much or more.
- You need to set your passive goals to match up with what you would need to live your dream life.
- Delayed gratification is the key to building wealth in the future. Your income has to exceed your expenses.
- Personal development, education, and discipline are needed for the focus to execute on your goals.
- Try not to get caught up in the drama of the world.
- You need to have multiple sources of income. Having just one source of income is a single point of failure in an uncertain economy.
- Businesses, stock options like dividends, and real estate are solid sources of income that you can tap into.
- You have to make the decision that you’re going to go after it, we are pretty creative once we know what we want.
- Predictability and reliability are ideal characteristics of MSI’s.
- The economy is changing faster than ever, you need to have the ability to make ends meet without using all your bandwidth.
- “Every large amount of money is an accumulation of hundreds of thousands of small amounts of money, the place to start is to take any amounts of money you can and save them.”
- Your vision for your life is what will allow you to stay the course. If your goals are larger than yourself, you will be driven to continue to grow your wealth and increase your ability to help others.
The FIQ Formula
- Your FIQ is your financial independence quotient, the amount of money you need to fund your ideal lifestyle.
- Take your FIQ number, divide by the average ROI of your properties and that’s how many investment properties you need to become financially free.
- You’re going to be able to escalate the number of properties you purchase each year as you reinvest the excess cash flow.
- The most difficult step in investing in real estate is accumulating the initial investment capital, dial back your expenses and be disciplined in saving money each month. Once you have your first property, the next become much easier to acquire.
Your Relationship With Money
- Your beliefs around money will influence your ability to accumulate capital.