One Property Can Change Your Life

Most of what I talk about in my newsletter and on my podcast is real estate. I love real estate. I love making deals. I love creating a strategy and a vision for a property. And I love the financial reward that brings me. That’s why I invest in real estate and why I’m a broker. So this is another article about real estate and why it is such a powerful tool in gaining financial momentum.

But can one property really change your life? Absolutely! And there are many reasons and examples of why that is true. Let’s look at a couple of them.

Let’s imagine you have a student loan. If you work in a job you are probably taking money out of every paycheck to pay your student loan payment. It’s pretty easy to see where I’m going with this. And by the way this is a real life scenario. My real life.

Student Loan Paid

How much is your student loan payment? $700 or $800 a month? Could be smaller, could be bigger. It depends on where you went to college and for how long. Think about this one simple thing. One property could earn enough positive cash flow to pay your student loan payment and maybe even to pay extra to pay it off sooner. What could that mean for you? That would mean no more taking money out of your paycheck to pay on that loan. You could use your paycheck for living better.

This will work for any extra financial obligations you might have like child support, medical bills, or helping family members when they need it.

Retirement Rescue

In my opinion real estate is also the best retirement plan available. Over the years I’ve had several clients who bought real estate for their retirement. If your retirement plan is a 401k, a company or government pension plan, or something similar, someone other than you is in control of your future.

These plans are subject to the volatility of stocks, soundness of bonds or securities, and the competence of the person put in charge of your money. Additionally, win lose or draw they are subject to fees and commissions. These plans typically offer you no cash flow and limit your access to the funds. In the case of pensions your retirement can even be at risk from theft, fraud or insolvency of the fund. It happens more often than you might think.

And for most people these plans just don’t work. The average 401k balance for someone in their early sixties is around $200,000 to $250,000 depending on the data source used. That’s far below the $1 million minimum proposed by financial planners for retirement plans.

Safety

Commercial real estate is a safer place to store your money, you don’t have to pay a stranger fees to manage your account, it increases in value, provides monthly recurring income and can save you thousands of dollars every year in taxes. And you have control over the investment. No one else will be making decisions for you and charging you fees whether you make money or lose money.

Can One Property Really Change Your Life?

Absolutely. Take my investor client Clay for example. I’ve written about him in past articles. He bought an 18,000 square foot warehouse/shop building in a property tax auction. His plan was to use it for equipment storage. I had a discussion with him about leasing it to a tenant. This was something he had never considered. He got a really good deal on the property and invested a small amount for renovations. I got him a tenant at $7,500 per month and on top of that the tenant paid the property taxes, insurance and maintenance costs on the building. His property paid for itself in a little over a year.

He was hooked on real estate from that day forward. The tenant stayed in the building for 8 years and their rent paid for that building several times over.

Today in addition to his painting business he has several commercial properties, rent houses and a lake house in the Texas Hill Country.

He travels to countries around the world on vacations. One day I was having lunch with Clay when he told me he wanted his daughter to learn to speak Spanish so he sent her to Spain for Spanish lessons! He would not have been able to have that type of lifestyle without real estate investing.

He still runs his commercial painting business. But now if anything ever happens that causes him to have to stop, it doesn’t matter. He has income from his many rental properties that will provide for him for the rest of his life. He now has multi-generational wealth.

One property can change your life. This is one of the best examples of a life changing property I have seen.

It’s never too late to start with real estate. It doesn’t matter if you’re in your 40s, 50s, 60s, or beyond. When you buy a property the income starts now. You don’t have to wait until you retire to enjoy the benefits!

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