In Freedom Founders, we do a lot of high-level real estate investing.
I hear a lot of people say, though, that while Freedom Founders sounds great, they don’t want to have to manage properties.
I get it – I don’t want anybody who is busy in their professional practice or as a business owner to have to manage properties.
In fact, I don’t want you or me to manage properties.
When I first started 38 years ago, I did have to manage my own properties – but that’s because I didn’t have the right skill-set yet.
I had more time back then, and I had to figure it all out and learn for myself.
But I’ve already done that, so now you don’t have to.
Today I’m about helping others fast-track their approach, which means no management for you.
So the question is: How do you get around property management?
If you own property (if you are an equity owner), it is a great way to build net worth and cash flow, have depreciation tax preferences, and use leverage when appropriate.
And if you have equity ownership, yes, someone has to manage that.
The income is produced by a tenant.
But the cool thing is that when you are aligned with the right people, which is key, the right system is already built right in.
The only people I will work with today are great rehabers, meaning, they have the contractors and the systems already set in place.
If the property is rehabbed, the property is managed.You have to work with the right people – it’s all about having the right connections.
Having the right back-end management to manage the property is one way to not have to manage your own properties.
For me, the easiest properties to manage are single-family.And the key is using the right management company after you have acquired the right property.
Another side to investing in real estate is being the bank.
When banks loan money against real estate, they take a lien position.
And if you own any type of property or office space, they have superior title to you.
If you don’t pay the bank, they can take the property, which is when a foreclosure can occur.
Private properties can also lend money, and take that same bank security position, which is called first-money out.
You don’t get the same opportunities to leverage into real estate, you don’t have the same tax preferences like depreciation, and you won’t have the inflation hedge – but you do have the advantage of being a step away from management.
So, where do you go?
If you are building your net worth, then you need to be a little more heavy on the equity-ownership side.
But, if you have a fair amount of capital, and don’t need more leverage or tax write-offs, then you will probably want to be more in a lending position.
I do both.
I keep a portion of my money in managed properties, but I also do a lot of lending.
Lending is easy. It’s all about the connections.
Once you understand how real estate works, that’s the fast track.
Some people choose to do things by themselves, but that is not the best way.
You can get beat up when you do things yourself – it takes too much of your time, you have to deal with tenants, you don’t know the right people, etc.
If you really want to learn to do it the right way, then connect with us.
If I can do it, then anyone can do it. It is the fastest way to build that Plan B, to have cash-flow and options in life… so you don’t have to be chained to the chair.
To your freedom,
David
P.S. Whenever you’re ready, here are some other ways I can help fast track you to your Freedom goal (you’re closer than you think):
Listen to my weekly podcast:
“The Dentist Freedom Blueprint.” Listen at: www.dentistfreedomblueprint.com. It’s where I connect with my Trusted Advisors and other industry Influencers to dig in deep, sifting and sorting strategies for growing wealth tax-free, creating tax deferral compounding strategies, and building real net worth through sustainable passive cash flow.
Grab the first 3 chapters of my latest book:
“From High Income To High Net Worth – For Dentists.” The Ultimate guide for anyone who desires to build sustainable lifetime passive cash flow and net worth through real estate investment without ever meeting a tenant or fixing a toilet. Visit www.freedomfounders.com/free-book-chapters and start reading.
Apply To Visit The Mastermind:
If you’d like to join dozens of dentists, docs, and practice professionals on the fast track to Freedom (5-7 years max), visit www.freedomfounders.com/step-1 to apply for a seat.
Want to Move to the Front of the Line? Fast Access Insider Group:
If you’d like to work directly with me and a small group of my closest investment colleagues, with direct access to the dealmakers and asset classes that I invest in, just send a message to my Executive Assistant (Lindsey@FreedomFounders.com), and put “Fast Access” in the subject line. Or, call 888-548-5855 and leave a brief voicemail for Lindsey. Let her know you’re interested in the Fast Access Insider Group – we’ll set up a time to talk, find out about your goals, and see if there is a fit.
