Everyone wants to become financially independent; however, not everyone takes the steps needed to achieve this goal. Many people read books and attend webinars; although, they do not act on it. If you want to achieve financially freedom then you need to be ready to make an investment. However, it is unrealistic to think that you won’t make any mistakes; you will. Don’t let your fear hold you back from making a sound financial decision that will put you on the path to reach your goal of becoming financially independent.
Take a Leap of Faith
You have to start somewhere so you will never earn enough profit if you do not make the initial investment. Set a goal which will allow you to pay for further property investments at no cost to you, rowing your monthly profit income and creating an auto pilot cycle for you. For example if at the end of your rent to own agreement the tenant chooses not to buy the home; you will have earned a profit from each of the monthly overages as well as the option payment which was paid at the beginning of the rental term.
Watch the Money Roll In
Use this money to pay the down payment on another rent to own home and quickly double your profits. Each time you generate enough income from your rent to own properties, invest this profit and you ill quickly turn your investment into an empire. How large you want to expand your rent to own program is up to you. Keep in mind that it may be some work when you are acquiring the properties and looking for tenants; however, once these steps are over the income comes rolling in each and every month on each property that you add to your “rent to own” program.
One Home Each Year
In order to achieve financial freedom on auto pilot within 7 years you will need to set a goal of purchasing one new home for your “rent to own” program each year. The money that is made from each home will be used to generate the funds to purchase the next home. When you combine the $5000+ option down payment which is paid up front with the $200+ monthly cash flow generated; you can see how this will quickly add up to provide you with enough for the down payment on an additional home.
Remember though, do not be greedy and try to milk it for every last penny or this may cause the tenant not to purchase the home. Your goal is to find quality tenants who will maintain the home and then purchase it at the end of the agreement providing you with a profit to invest. Make an attractive agreement that lures in tenants and makes them want to buy your property. If you follow this program it will create a snowball effect which will provide you with more than $10,000 in monthly cash flow.
5 tips to Becoming Financial Independent
- Do not pay the closing costs out of pocket. Keep in mind that there is a 2-3% charge on the cost of the home which goes to the Title Company, lawyer and lender. Make sure that you include a clause within your purchase agreement that states “Seller will not pay a fee any more than $3000 which will be applied towards closing costs.”
- Save your option down payment. No matter how tempting that it may be, do not spend your option down payment on frivolous purchases. Save these in an account that you do not use until you have enough for a down payment on another house.
- Unless you need the additional monthly cash flow, try not to spend it. Instead save it up with your option down payment and you will be able to purchase additional homes quicker.
- Try to turn the sale of one rental home into the purchase of two homes which will quickly multiply your option down payments.
- Structure your rental properties for a 1-2 year rent to own contract; at least in the beginning. You also want to be sure to offer an attractive buyout price to entice tenants to buy. By doing it this way you will quickly increase the amount of properties that you own.