Would you believe that wholesaling is DESTROYING your dreams of financial freedom? Today on Financial Freedom Friday, Matt Theriault shares what real estate gurus don’t want you to know – the beautiful concept of cash flow. Learn how to build streams of money instead of piles of cash, how to have fun and live your life now instead of waiting until you’re retired, and exactly why choosing cash flow will bring you your dreams of financial freedom.
What You Will Learn About Why Wholesaling is Destroying Your Financial Freedom:
- What the real estate gurus are hiding from you
- Why wholesaling is destroying your dreams of financial freedom
- A few questions you can ask yourself to refine your definition of “financial freedom”
- Two paths you can choose from in life (and how to achieve your desired result)
- How to build streams of money instead of piles of cash (and work way less)
- How to have fun and live your life now (instead of when you’re 65+)
- What 95% of the population is failing at (and how you can be different)
- A visual representation of cash flow and how it works
- How to find a new route if wholesaling is destroying your real estate success
- How to create your own financial freedom action plan with step-by-step instructions
Whenever you’re ready, here are a few ways we can help:
Work with me One-on-One
If you’d like to work directly with me on your business… go to REIAce.com, share a little about your business and what you’d like to work on, and I’ll get you all the details!
- Would you like to meet in person? Our next live event is right around the corner! Go to EpicIntensive.com for the details.
- Become an Epic community member at The Epic Real Estate Investing Show
One of my favorite things to do is share with investors the latest and greatest tactics and strategic friends I make. I do it every week and you can listen in by subscribing to The Epic Real Estate Investing Show podcast on iTunes – Click Here.
- Grab my book, Epic Freedom ($1)
I frequently hear from people looking into investing in real estate for the first time, “How long is it going to take?” So much so, I wrote a short book about the 2 easiest and fastest strategies to a paycheck in real estate. You can grab a copy for $1 and I’ll pay the shipping – Click Here.
- Join our Badass Investor Program and be a Case Study
I’m putting together a new Badass Investor case study group at Epic Real Estate this month… stay tuned for details. If you’d like to work with me on your real estate investing, go to FreeRealEstateInvestingCourse.com to get started.
- Also, check these out:
Thank you so much for joining us on this episode of The Epic Real Estate Investing Show! Please subscribe to the podcast so that you will get instant access to our new episodes.
If you found this podcast helpful, please take a few minutes to leave us a positive review in iTunes. Your reviews help to improve our search rankings so that we can spread the love. Thank you!
Speaker 1: This is Theriault Media.
Matt Theriault: Hey, Matt here. Welcome to another episode of Financial Freedom Friday.
Speaker 1: It’s time for Financial Freedom Friday with Matt Theriault.
Matt: Today, I want to help you achieve your Financial Freedom Friday. But depending on who you’ve been listening to, it could be a whole lot more difficult than what you’ve been led to believe because there’s something real estate gurus are hiding from you.
And I can guarantee that they didn’t share this with you at the last seminar that you attended, or the last webinar that you watched because they don’t want you to understand how flipping or wholesaling properties is destroying your financial freedom. Because if you understood what’s really happening in the background, you probably wouldn’t buy their stuff.
Now, if you want a high paying job there’s nothing wrong with their stuff. I mean, I can’t speak for all of them but for the most part, I’m sure what they’re sharing with you, that stuff, I’m sure it works. They wouldn’t be in business too long if it didn’t.
So, if you want to make some good money with what they tell you to do, go right ahead because you will. I’m not going to stop you. But if you want to be financially free, if you want the financial freedom that real estate promises it’s never going to happen flipping or wholesaling properties.
Here’s what I mean. Here’s some questions to ask yourself. The first question is: What is financial freedom to you? What would that be for you? Just getting up every day and just kind of doing what you want to do. For most people, that’s what it would be. And if that was your answer, how much will that freedom cost on a monthly basis? What would that cost per month? And then, the third question would be: How many houses will you have to flip to get there?
Okay, let’s start here. I’m going to grab a pen and kind of show you something because to achieve your financial freedom, you’ve got a choice between two paths. Okay? The first thing is you can go and work, and save, and build this giant pile of money. Put it in some sort of retirement plan. And all with the intent of creating a nice stream of money that’s going to pay that monthly bill for your financial freedom. That’s where the financial freedom comes. This is how most people go about it. Whether that’s working a corporate job or whether that’s flipping properties. They work, work, work, save, save, save, put it in some sort of passive investment and some sort of retirement vehicle. All with the intent that this pile gets high enough that it creates a residual income, a stream of money big enough to support their financial freedom or their version of it.
All right. So that’s one way to go about it. The second way is to go to work and create your stream of income first. And once you get there, you can start living life now as opposed to living life then. You can start living life now, continue to work on your stream of income and let the excess go ahead and build your pile of money.
So, what’s the big difference here? What’s the big difference between the two? Pretty much looks the same just kind of swapped, right? Well, the big difference is the first thing I want to draw your attention to is time. Okay? This is the strategy most people do, or the formula, the method that most people approach to creating their financial freedom. And this right here, for the most part, is at least a 40-year plan. So that’s what’s wrong with this. You put off 40 years of your life before you get to actually experience your financial freedom.
The second option is you get to live life right now. And this is only like a four-year plan. And now the excess can start creating the pile. So there’s a big difference between living your life then or living your life now.
Now don’t get me wrong. Both of these are hard work. Neither one of them is easy to do. And actually, this seems like the most conservative route what most people choose, but per the Department of Health and Human Service, 95% of the population are failing at this.
And this is hard work too. It’s just that one is much faster than the other. But I will show you that this one’s actually a little bit easier too. It’s faster and easier. Let me show you this.
All right. So, let me show you this graph. So up here this vertical line will say this is our stream. We’ll just call it cash flow. This represents our cash flow. This horizontal line represents time. And right here where they meet, this is where we are right now.
So out here we’re at our retirement age. We’ll just say that’s 62 years. And then this cash flow number. So when I asked you how much would it cost to support your financial freedom on a monthly basis. What would that number be? Maybe it’s $5,000. Maybe it’s not going to take too much for you to be financially free.
I don’t know. Maybe you have a really good job, you make six figures a year. You need at least $10,000 a month. Or maybe you’re doing really well for yourself and need $15,000, $20,000. It doesn’t matter what your number is, the principle is going to be the exact same, and you’ll see the bigger that number is actually the worse of a picture it is for you by going that traditional route we talked about.
So, we’ll keep it really conservative, and we’ll say it’s $5,000. All right? Whatever your number is, the same thing’s going to apply. So $5,000 a month in passive income. And this is the goal. Regardless of which approach we take. That’s the goal.
So when you go out and you start flipping houses, you’re not generating any passive income. You’re generating active income. And you’re taking these giant sums of money and you’re putting them into this retirement vehicle all with the intent to get big enough so it creates this $5,000 a month. So it’s really a path that looks right because you’re generating no passive income.
So, you’re traveling along here. Travel along, putting away, work, save. You finally hit the age of … I don’t know … 59.5, 62, 65, whenever you want to retire when you can withdraw from your retirement vehicle and boom. If you did it right … and that’s a big if per the statistics … but if you did it right … I’ll give you the benefit of the doubt … if you did, now you can go ahead and you can start withdrawing that residual income. Okay? And this is kind of what your path looks like.
But what I want you to really recognize you don’t get to start living life until right here. The age of 62. The most vibrant and active years of your life are behind you.
So here’s the alternative path. Rather than saving, we start our working our way up towards the passive income generating that first. So it might look like this. Once you hit that number you can keep working on your passive income. But you’ve got enough to create your financial freedom. But you can keep working on that number and taking that excess and now putting that excess … while you’re living your life now having a blast … taking that excess putting it into that vehicle and boom, when you hit the age of 62 you can withdraw from that. You can get another big spike right up here, and then have an elevated passive income stream like that.
So those are your two options. This is that option one where you’re building the pile to create the stream. And this is where you build the stream to create the pile. Got it? This is your 40-year plan, this is your four-year plan.
“Ah, come on, Matt. It can’t really be four years, can it?” Yeah, let me show you how that can be, all right?
Let’s look at it this way. To create that $5,000 a month of passive income if you’re going to say that amount of money. How much money would you actually need to save to get there?
I guess first we have to figure out what would the interest rate be. So based on most financial planners today, they say once you hit the age of 62 you can count on one of two. I don’t know either 4%, 5%. That’s kind of the number. I don’t know where you actually get that in a vehicle like that today. If you’re a financial planner you probably know. If you’re not a financial planner … I don’t know … maybe you do know to or maybe your financial planner does. I’ll give the benefit of the doubt though.
Let’s just say you get 4%. So 4% to create $5,000 a month. What does that equal in an account earning 4%? Well, it equals $1.5 million at 4%. So how many properties would you have to flip to generate $1.5 million? I guess it kind of depends on how much you make per flip.
One of the numbers that we’re frequently experiencing around here at Epic is when we have a property, either we have the choice to flip the house for $30,000 profit. Or we can hold the house for $300 a month. That’s pretty routine. Give or take a few bucks but let’s just keep it simple. So that’s about what it is.
Now, most of us … even myself sometimes … I’m tempted by this. I’m human. You’re human, I’m human. $30,000, that’s a lot of money for most people. We’re always tempted to take that $30,000 off the table and put it in our bank account, put it in our pocket and go out and spend it on stuff and have fun.
Because this $300 a month is kind of boring. $300 a month for most people doesn’t really move the needle in their lifestyle. Doesn’t seem like it’s going to have a big impact. So most people choose that $30,000.
So let’s just say $30,000 per flip. How many houses do we have to flip at $30,000? So we make $30,000 per flip. And what does that equal? That’s going to be 50 houses. Right? You’ve got to do 50 houses. Now at $300 a month, if we’re going to hold on to this property at $300 a month rather than flip it for the $30,000, how many houses would that be? That would be 17 houses. Right? They’re not necessarily smaller houses. It’s the same house I just ran out of room there. But you get it.
So it’s 50 houses versus 17 houses. So already it’s easier. 17 houses, doing 17 deals, that’s a lot easier than doing 50. It’s less than half. Much less than half.
So what does that look on time wise? So let’s say we’re going to do four deals a year. We’ll keep it really conservative, we’ll do four deals a year. And so, this 50 houses, four deals a year. That’s going to be 12 years to hit your $1.5 million.
Now if you’re going to do 17 deals and you had to do four a year, that’s versus four and a quarter years. So, it’s easier, it’s less than half the amount of deals, and it’s faster. 12 years versus four and a quarter years.
It’s only 12 years if you don’t spend a dime of this $30,000 that you keep on making. So you can’t spend any of this to make it 12 years. But we know you’re going to spend it. You need something to live on. You’re working hard and you’ve got to live on something. So let’s just say we split this and we put $15,000 to live on. We’ll put $15,000 into our account so it grows.
So what does that do to this? It doubles it. So it’s really 24 years versus four and a quarter years give or take.
Now, this was a really quick and simple demonstration right here. I’m sure you’ve got some questions. “What about this? What about that?” I understand. And I’ve got answers for all of your questions. No worries there. I didn’t want to keep you here too long to walk you through every detail of how the average person can realistically make this happen.
But if you’ve got questions, you’ve got concerns, you’ve got some doubts I understand. There aren’t too many people out there that will share this information with you let alone show you how to do it. So it might be a fairly new concept for you to grasp. Or maybe it’s an entirely new one at that. So, I understand.
And that’s why in October, I’m getting together with a medium sized group of investors in Boston where we’re going to gather in a workshop type environment, and we’re going to work side by side to create your own custom financial freedom action plan with step by step instructions.
Even if you’re short on experience and you’re limited on finances. I’m going to walk you through the entire plan so that you can bring it back to your market and you can put it to work.
So if you’d like to join us, you can click the button below or you can go to epicintensive.com and you can come for free. And I’ll ask that you place a $97 seat deposit. But when you show up to the event, I’m going to give you that $100 back.
There’s nowhere else that I’m making this offer. Just right here, right now. And there aren’t many free seats left so when the final free seat is gone, it’s gone. So click the link below, get the details, reserve your seat and I’ll see you soon.
Epicintensive.com. Go there and we’ll do this. And I’ll see you next week on another episode of Financial Freedom Friday.