What Is Residual Income – Where To Invest Money
You caught the bug. You want to be financially free, and here’s your question: How do I really build a residual income? Well today on limitless TV, I’m going to talk about what residual income is, and the fastest way that you can create that liberation and freedom for yourself. Because bottom line is man… you and I, we got this one life. Don’t waste it on a career that you’re not passionate about. Or doing things that don’t make sense to you. Who would you be if you didn’t need money we’re gonna find that out, so that you can get on to living of that life. If you want to build a residual income, then you need to understand what it is, and why it’s powerful. Right now I could either give you a million dollars. Or $10,000 a month, every month, for the rest of your life. Which would you rather have? A Million sounds like a lot of money but you know what I think most people would rather do? They’d rather have the residual income. It’s not about how much money you have overall or what you’re worth. It’s more, what do you have access to on a regular basis. Building a residual income is all about building an income that is dependable, and shows up whether you do or not. And that’s what I love about real estate. There’s a lot of other games and business, that I play that produce that residual income. So let’s get down to business. If you are committed to a residual income, then it means that rather than $50,000 or $100,000 on a house getting you excited. Three or four or five hundred dollars a month of residual income does, even more. And so the commitment is this. When you buy a house, you gotta buy right! Which means you’ve got an opportunity to step into a lot of equity. That’s gonna translate into a deeper cash flow. And that cash flow is what is going to start you off. Now in the beginning the cash flow of three four or five hundred dollars a month on a house, as cool as it is, the reality is we want to catapult that residual income. And what I mean by that is, in twelve months after that home is seasoned and we can refinance and take some money out of it, or sell it. I want to take that home and now use it to buy two houses. Two residual incomes. And I want to take those two houses in time and I want to turn them into… four. Now understand that when I bought my first house it took me two years later to get my second. And then it only took me six months later to get my third. And then three turned into half a dozen. And half a dozen turn into a dozen. And a dozen turned into two dozen. And two dozen turn into hundreds. So it started out a little bit slow out the gate… but you build this crazy momentum where, by the time we’re talking legacy ten years, you have the chance for a massive skyrocket in your personal finances. You’ve got to value the residual more than the really big amount that you get. And then when you sell that first property and you make 30 grand or 50 grand, the question is, “what are you gonna do with it?” You got to put it right back into real estate, to double down on deeper cashflow. Put it right back into real estate to double down on deeper cashflow. Rather than, but Chris I could pay my car off. and my car means that I’m saving $500 payment a month. Which means, hey I’m not producing $500 of income but I eliminated $500. And Dave Ramsey would pat you on the back and say awesome. But the car is not going to produce more for you. You can’t put assets into liabilities. You need to put assets into assets. Let me ask you a secondary question… Be totally debt-free, or have $10,000 a month residual income, but with debt. Which would you rather take? You probably still take the $10,000 a month. Which means that it’s a higher priority than a pile of money for retirement. And it’s also a higher priority than a million dollars. And it’s a higher priority than getting out of debt. This is different thinking than what you’ve likely been told growing up. Stay out of debt. Be financially smart. And what I’m saying is, being financially smart means having your money work for you. And here’s how you know if it’s working for you. It pays a residual. Now society will say put money in a 401k, or an IRA, or an annuity, or in the stock market. But none of these investments pay you. Hence, they’re speculative, gambling, aka lottery. They’re not real investments. A real investment pays you. So put your money and things that pay you, and then never lose sight of the real goal. The real goal is how do I capitulate and roll into as many houses as possible. And when we come back, what I’m about to do is I’m gonna take you through a very specific game plan that I followed to get free. And this is something you can use to liberate yourself financially. So here’s the specific game plan on real estate. It starts with… write this down, your very first property. You’ve got to score a 20% equity position on it. And if you have a partner bringing money to the table, it is best if you have 20% to put down. I’ll tell you why. If you’re buying a hundred and fifty thousand dollar home. 20% discount is going to give you $30,000. I also put 20% down. There’s another, you know, $20,000. I’ve got $50,000 down. It’s worth $150K. I’m into $100K. The reason why that’s really important, is because it means that I’ve got the ability a year later to either refinance 20 grand out of it, and use it as a down payment on my next house. Or, sell it and then roll that $50,000 into my next two properties. I need the equity, and I need the downpayment to move forward on two. And, I need those next two properties to have a 20% discount so that my 20% down payment, almost again, gets me somewhere between 35 to 40 percent paid off. If you keep following those rules 2 becomes 4. 4 becomes 8. And then once you’ve done two or three or four homes max with your credit if at all. You need to know that you’re gonna max out with the banks. So you’re gonna need to then bring in credit partners. Here are the assets you’re gonna need. A team to find you the the deals. I will do that for you. I commit to that. Number two is you’re going to need someone with the money if you don’t have it. Actually, if you join my team I’ll show you how to do that. So that it’s easy through social media to build a network of people with money. The third thing is you’re gonna need to find people with credit, that want to put it up. And I can show you how to rent credit. When I rent credit I usually pay, you know, a two to five thousand dollar check and then I’m able to use their credit for holding the loan, for the length of time for the property. If you’re doing that, one becomes 2, 2 4, 4 8, and within a 10 year period of time, we’re usually able to show someone how to roll all of that into a pile of paid off free and clear properties producing at least $100,000 a month. I did it in four and a half years. You could certainly do it in less than ten years. And if you want to play my game, the way that I do with bringing on lots of other financial partners, you can do it way faster. But that’s the simplicity. Just remember the basic rules. Must have a 20% equity position. Must be below the median. And you must put 20% down. If you follow that formula. One will become two. Follow it again. two become four. Follow it again, four become eight. And inside of ten years, that really rolls into a high likelihood of paid off properties producing, one hundred thousand dollars a year. And friends that’s just the beginning of a great retirement. I love helping people build residual incomes. It’s one of my favorite things to do come out to my three-day limitless event, or real estate event. And you’re going to learn more about how simple and easy it is, to generate residual income, right now!