How to Quit Your Job by Leveraging Real Estate Investing
August Biniaz
?? LinkedIn Top Voice | Co-Founder/CIO cpicapital.com | Join Me & 5000 Investors Building Generational Wealth By Investing In Multifamily & BTR-SFR Assets
Dear valued investors and future investors,
Yet again, it’s time for CPI Capital's weekly news briefing. Our regular briefing contains a mixture of updates, commentary and informative related articles about the lucrative world of passive real estate investments.
If you're already one of our subscribers, thank you. If you're not, why not sign up to our newsletter now and keep regularily up-to-date with all you need to know about a syndicated real estate investment?
This week, let’s take a look at a subject many people dream about… having enough money to not have to work…, or only work when they want to, or to work from a beach if they want.
For those who decide to actually do something about achieving this goal, the first step is to find a way to make money without actively being at work. It’s been proven time after time that real estate investing is the preferred option to being able to quit your job and become financially self-sufficient. After all, it is often said that 90% of all millionaires become so through investing in and owning real estate !
The only real decision is just how you go about it? How do you get started in real estate investing and make enough money to live on (and more) so that you can quit your job?
Once the goal of becoming financially self-sufficient by investing in real estate without working has been set, it’s important to distinguish between two primary types of real estate investing: active or passive real estate investing…, so let’s take a look….
Active vs passive real estate investing
Active real estate investing fundamentally means taking a hands-on approach and, for example, utilizing the BRRRR method (buy, rehab, rent out, refinance, repeat) to hopefully build a portfolio of build-to-rent and/or single-family (BTR-SFR) rental properties over time.
Many such active investors are heavily involved in every phase of the transaction, and must constantly monitor and manage the different stages of their active real estate management activity, from identification of the property, research into the relevant market, acquisition, and ongoing operations.
As attractive as this may appear, it does mean trading your busy full-time work schedule for another, leaving little time to truly quit your job and starting to enjoy life.
If the key point of having enough to live on every month, or to be able to earn income while sleeping, then passive income from real estate investment is likely to be the preferred choice.
What is passive investing?
Being a passive real estate investor is quite different to being an active investor. Yet, it’s still possible to earn enough to quit your job and sit back and enjoy receiving income every month.
After deciding to make an investment into a syndicated real estate private equity, passive investors are presented with investment opportunities by the project syndicators. They do not have to look for investment opportunities or financing on their own and are not responsible for any of the property’s day-to-day operational management or other issues.
Passive investors: do you know how to vet a real estate investment group before making an investment?
Download and read our FREE e-book: 25 Fundamental questions to ask a Syndication Sponsor before making your investment.
Investing in real estate syndications for multi-family or BTR-SFR rental properties is probably the best way to earn passive income on a regular schedule.
As a Limited Partner (LP) in a real estate syndication, income from the investment is truly as passive as it gets. All investors need to do, after investing capital with the entity sponsoring or promoting the investment opportunity, is check that the monthly or quarterly distributions have been credited to their bank account. They then need simply wait for profits on the capital gains once the asset is refinanced or sold at the end of the holding period.
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For those who have saved-up capital and regularly invest passively in real estate syndications know that it's a great way to create passive income. Obviously, the more investments they've made, the more income they've already received—and the more chance of of their being able to live on the income generated and quit their job, as well as build generational wealth !
To recap, the passive investor provides their capital to the syndicator and reaps the investment returns with little or no effort!
How to get started with passively investing in real estate syndications
It’s all really quite simple to work out how much you need to start living life:
1: Make a budget of expenses
Itemise all of your expenses to find out how much fixed money is required for you to live, including items such as mortgage payments or rent, cost of utilities, food, vehicle-related expenses, credit card debt, insurance, etc.
Clearly, you will need to not only cover the total of the above amount, but you'll also need to save for future investing. It’s wise to save as much for passive real estate investing (perhaps by curtailing some unnecessary expenses) as, the more you invest in real estate syndications, the sooner it will be possible to quit your job.
2: Calculate the monthly income you require when you are no longer working
Obviously, the income needs to cover the regular expenses shown above but there will be unexpected expenses occasionally arising as well. Plus, importantly, you’ll need some extra for regular investment or reinvestment into new syndications.
Quite how much income you need and how many syndicated real estate investments you need to invest in to be able to suit your job and “retire” will depend on your own personal goals, ambitions, and spending style and patterns–but this can easily be calculated.
And then, it’s all up to you how quickly you can achieve your goals!
CPI Capital knows that the dream of many people is to achieve financial freedom. Obviously, no investment is going to create that overnight, but investments in real estate has proven over centuries that it is the major creator of long term wealth.
For anyone seriously looking to quit their job and enjoy the benefit of monthly income without actively doing any work, syndicated investment into multi-family or BTR-SFR properties such as those offered by CPI Capital can:
So, what’s stopping you from starting to reach for your dreams of quitting your job?
Yours sincerely,
August Biniaz, COO, Co-Founder CPI Capital
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