Building Financial Freedom Through Real Estate Investing

If you’ve landed on this article, you are probably interested in building financial freedom through real estate investing so that you can build the life that you dream about and do anything you want with your time.

The choice to become a real estate investor is a commitment that pays off very well. It provides you with an opportunity to create a financial system that liberates you from the grind of trying to make ends meet.

What Does Financial Freedom Mean to You?

This is very personal and only you will know this. However, having financial freedom will allow you to feel good when invoices come your way. You will no longer have to wonder how you’ll be able to cover an unexpected expense.

Financial freedom gives you the ability to focus on being creative and expanding your life while no longer struggling to stay afloat.

Let’s explore how building financial freedom through real estate investing allows you to do what you want, when you want and how you can prepare for success.

How is Financial Freedom Defined?

Financial freedom has a unique meaning to each individual. In a nutshell, financial freedom is having the financial security to maintain the lifestyle you choose. It is to build enough passive income to cover your expenses while liberating your time to engage in the activities that are important to you.

Financial freedom is the solution to worries about money while enjoying the peace of mind steady income brings.

The parameters that define financial freedom are unique for each person. People lead different lifestyles that come with various price tags. For example, some people require very little money to lead their ideal lives in a minimalistic way.

On the other hand, other people require a higher cash flow to take care of larger families or support their extravagant dreams and hobbies.

Either way, the bottom line is that financial freedom is defined by you and your goals. The vision of how you want to live your life will guide you in calculating what it takes for you to feel financially free.

A great starting point for determining how much money it takes to make you financially free is to look at your expenses. Calculate how much money you require annually to maintain your life and support your future goals.

The answer will guide you to how much money is necessary to pay your expenses while still having a significant amount left over to continue to save and invest.

How to Achieve Financial Freedom Through Real Estate

There are many paths to creating financial freedom. One of the most trusted and proven paths is to invest in real estate. It is a strategy that provides a platform for building passive income streams while holding a very secure type of investment.

There are always opportunities in real estate, no matter how the economy is doing as a whole. As we approach the next financial crash, be aware of low-interest rates paired with people who are facing financial hardship to find properties at a significant discount.

Here are some tips to set yourself up for a successful run as a real estate investor:

1. File Your Taxes:

To obtain the best interest rates, it is important to show a steady income. Filing your taxes on time gives you a way to prove your earnings. The better you look on paper, the higher the chances are that you will be granted a loan with a low-interest rate.

2. Define Your Goals:

Think about your long-term goals and how you see yourself as a real estate investor. You will also want to calculate how much income it will take to comfortably cover your expenses. Consider your retirement goals and determine how much money it will take to provide the retirement of your dreams.

3. Choose the Type of Real Estate Investment:

Once you define your goals, the next step is to choose from a variety of property types and asset classes. There are single or multi-family homes, commercial buildings, student rentals, land, or even crowdfunding platforms that don’t require you to buy a property.

4. Choose a Great Location:

The next step after choosing the type of investment is to set a location. Real estate investments are not limited only to where you live. In fact, you can choose any state that provides the financial incentives necessary to make your deal work.

For example, that are states that offer lower property taxes and others that provide grants for those who want to relocate. A tip is to look for up-and-coming cities that are showing a rapid growth in market property values.

5. Learn About Online Real Estate Investment Funds:

Another great way to invest in real estate without purchasing a property is to join a crowdfunding platform. Online investment trusts allow you to participate even with as little as $100. You can generally get back as much as 10% or more on your investment. It is an easy way to get started because you won’t have to do any of the heavy leg work.

3 Building Blocks to Financial Freedom

Anyone who wants to turn their dream of becoming financially free has to have a strategy. To reach your financial goals, be sure to build a solid foundation with these three steps:

  • Step 1: Classify Your Debt

You must learn to decipher between good and bad debt. Having debt is not bad if it means you have invested in a property that is building equity. Student loans are another example of the type of debt that can represent a return on your investment. A rule of thumb is to eliminate debt with an interest rate higher than five percent.

  • Step 2: Learn to Save

When you use a budgeting system to set money aside for savings, you will always be a step ahead of the game. Keep your savings accessible in a liquid fund such as a money market account, savings, or checking account. It is smart to start your savings plan by creating an emergency fund that covers at least six months of living expenses.

  • Step 3: Foster an Excellent Credit Score

To keep your credit score at its best, make a habit of making payments on time and lowering debt. You will also want to ask for credit line increases as well as keep accounts open while maintaining older lines of credit that can show a long history.

Keeping your debt low and your finances in good standing opens the doors to getting quickly approved for real estate loans. Get rid of high-interest credit card debt and lower your expenses as much as possible. Unless you can pay cash, having a good credit standing will be key in acquiring real estate investments.

When you achieve these three building blocks, you will certainly be well-equipped to invest in real estate. However, even if you’re not there yet, now is the perfect time to start investing. It doesn’t make sense to wait, the sooner you get into the real estate investing game, the sooner you’ll start to build your portfolio.

Can Real Estate Investing make you Financially Free?

When people think of financial freedom, they think of being able to no longer work for money. Although you don’t have to give up a lot of your time when you have multiple streams of income working for you, it still requires your watchful eye to ensure all your investments are well managed.

As a real estate investor, you want to be careful not to fall into the trap of letting your investments control your whole life. The key is to have them well-managed. Many investors are opting for hiring a property management company that allows them to have more free time to grow their business even more and spend time with their loved ones.

Sure, you have to give up a percentage of the profits, but this is a true passive stream of income because it doesn’t require much of your time and effort to upkeep it.

Get Started With a Clear Financial Freedom Plan

Once you decide that you are going to use real estate investments as your vehicle to financial freedom, it is important that you define a clear financial freedom plan that covers all your bases.

The first point you want to tackle is to assemble a team of educators and mentors that are going to help you each step of the way. These experts can be found online or in person. They can provide general courses or work one-on-one with you.

The key here is for you to decide that you will commit to having an active mind that is always ready for ongoing learning.

Next, make a complete assessment of your current finances and future goals. Determine what will take for you to feel financial freedom. Imagine your ideal life, how would you spend your time? Think about how you see yourself managing your investments. Perhaps you will want to assemble a team to assist you.

Finally, the success of any plan is to track its progress and make adjustments. Be active with your vision and strategies. Make necessary changes as your life shifts and you develop new visions for yourself. Keep an open mind to new strategies and learn to use flexibility as one of your strengths.

My Final Thoughts on Building Financial Freedom Through Real Estate Investing

Hopefully, you now have a good idea of your potential to achieve financial freedom through real estate. As with any endeavor, persistence will get you there!

Please comment below and tell me if this article has helped you in any way to fulfil your dreams of becoming financially free via real estate investing. Also, please share your strategies and tips that have helped you thrive in your real estate investments and in building financial freedom.

Thank you very much and have a great day.

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