In the traditional sense of the word, being financially free means your assets, the investments you’ve made – businesses, real estate, royalties, whatever else you’ve invested in, the income from those is enough to provide you sustenance, or allow you to live on a month to month basis so you don’t have to dip into your pocket to pay for your bills. That’s financial freedom. So, can you become Financially Free by investing in property?
You might be thinking that doesn’t sound very financially free but technically that’s what it is. I should also make a note here that true financial freedom, as mentioned in some books, where you can just sit on the beach and live your life forever more ‘Happy Bunny’ is a myth and doesn’t really ever happen. You’re always going to be involved in something. Even if you build a property portfolio that throws off lots of cash flow and you’re financially free, you still have to keep on top of it, you still have to spend time managing your portfolio or spend time managing the people who are managing your portfolio etc. So, that Utopian place where you just do nothing and make money is a myth.
Financial freedom in the sense of having your assets bring you income that supports you on a monthly basis – that does exist. Can you achieve that through investing in property? Yes, you can, if you focus on cash flow.
Cash flow = freedom
Of course, financial freedom is all about having money coming in on a regular basis from your investments, such as your real estate investments, that’s enough to sustain you. For that to happen, focus on developing cash flow from property. This means looking at the profit you make on a monthly basis from your portfolio or your investments.
Most investors I see entering the property market, they’re looking to make money long term by buying low and selling high and if that’s your strategy then I hate to break it to you, you’re probably not going to become financially free through investing in property.
I started focusing on cash flow when I began investing because I wanted financial freedom. I wanted to quit my job and stop travelling three hours every day down to London to make somebody else money. So, that was my focus and so when I started investing on the cash flow elements of real estate, I looked for deals that threw off lots of cash flow and if you do the same, well of course you can become financially free.
Yes, you can
So, to answer our question, the answer is yes. You can use real estate or property to become financially free if you focus on the cash flow.
The beautiful thing about focusing on cash flow when you’re looking at these types of properties is that it opens new doors for you. You don’t have to necessarily invest in property i.e. buy the property to make cash flow. When you start looking at the property market you start to spot opportunities where you can make cash flow without having to put any money down or maybe even buy a property.
So, looking at property from a cash flow perspective because you want financial freedom is great, there are loads of opportunities out there. So, yes you can become financially free through real estate and property, that’s what I did back in 2002 and it’s been a lot of fun ever since.