EP015: The Three Stages of Real Estate Investing

If you’re wondering when you’ll achieve financial freedom through real estate investing, there’s a simple formula that can help. On this episode, I’m elaborating on the three stages of real estate investing from Gary Keller’s book, The Millionaire Real Estate Investor.

Today, I’m going to walk you through the stages, including when you should expect to reach each one. This is an important concept to understand; you won’t want to miss episode 15 of Investing in Real Estate!

More About This Show
The first stage of real estate investing is buying. In this stage, you shouldn’t be concerned with making money, which I know seems counterintuitive. This stage is simply about building your net worth, and letting your rental payments go toward paying off your loan or private lender.

The second stage of investing is when you own your properties. At this point, you’ve paid back your lenders. Once you own your properties outright, you’re well on your way to reaching your goal.

The last stage of real estate investing is when your properties are cash flowing. This is the stage that many people look ahead at prematurely. It’s the main goal; this is the destination in which you will reach true legacy wealth.

I find that many people tend to look at these stages in reverse, and want to attain the cash flow immediately. I’ve been there in my own business. It’s incredibly important to keep these stages in mind in order to meet your end goal of financial freedom.

On today’s show, I’ll explain how I keep this process in mind for my own business, and how you too can get started achieving financial freedom. I urge you to find your Freedom Number to begin on this journey.

If you're ready to begin building a passive income through real estate,

We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family. 

On this episode you’ll learn:

  • How long should it take to accumulate a portfolio of real estate investments?
  • What is the rule of thumb for leveraging properties?
  • When should you be focused on cash flow?
  • How should you allocate profit in stage one?
  • And much more about buy and hold investing!

Episode Resources
The Millionaire Real Estate Investor by Gary Keller
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