Ryan McLean : Slightly Unconventional

My Brain Grew Today – Day 22 – You Can Be Financially Free In Just One Deal

Today was an awesome day for my mind. You know when you have those moments and it is like instantly your mind expands and you can see the possibilities? Well today was one of those days for me.

Today I was thinking about a property deal I am looking at doing and also thinking about my next deal and how I can best move towards my goal of becoming financially free in just 5 years (I have about 4 and a half left). Then God started challenging my mind and he was saying “Come on Ryan think bigger, stop thinking about little deals, start thinking about ways you can make a LOT more money from each deal”. So I did. I started thinking about buying blocks of units (There is a block of 10 units I want to buy that could net $150/week in the first year and even over $800+ per week in the future). I started thinking about buying a block of ten units, or buying land and building a block of ten units. Then it just hit me!

I realised that I am just one property deal away from being completely financially free. Just one freaking deal. Not 100 deals, not 50 deals, not even 10 deals just one deal away from financial freedom.

I am looking at a property at the moment that will net me about $20/week (or $1,000) in the first year, and in the 7th year it will net me about $80/week (or $4,000/year). Now that is not nearly enough money to live off. $1,000 doesn’t even pay one month’s rent for us. So this one deal won’t make me financially free.

But if you could purchase an apartment complex with 100 apartments and you could earn $20/week per apartment that is a huge $2,000/week or around $100,000 per year. In just one deal you went from having little or no passive income, to becoming financially free. BOOM!

The most awesome thing about this as well is that you don’t need any money to do it. I have been reading some of the Rich Dad’s advisor series books (thanks to my mums who hooked me up for Chrissy) and 2 of them are on real estate investing from a guy called Ken McElroy, and he is a dooze dude. He does exactly what I want to do. He goes out and buys apartment blocks that have 150+ units in each of them. He has a line of investors wanting to invest with him (because he is so good). His investors put down about $1 million and the bank will lend them something like $8 million to buy this property and Ken takes a 10% share in all positive cashflow and all capital gains. Because he is so good each deal can net him $20,000/month in passive income and he can increase the value of the property $2-5 million and pocket 10% of that increase.

I did a little online borrowing capacity calculator today and me and the missus can borrow about $140,000. Woh, step back…haha it is definately not a lot. But that is ok, because I don’t plan on relying on my borrowing power. One of the best things about apartments is that they don’t take your personal income into account, they only take the income of the property into account. So even if you work part time at a Chemist like me you can borrow $9 million if the property and your experience supports it.

So the other day when me and Timay went to the “mortgage broker” who told me the 100 reasons (that I already knew) why I couldn’t achieve what I wanted to achieve (one of the major reasons being my income) I knew that he was talking from a different reality to me. His method relies on borrowing power, my investment method doesn’t.

Granted, I don’t really have the experience needed to convince someone to joint venture with me in a multi-million dollar property deal, but soon I will. This property I want to do is the first step towards it. Anyone not wanting to invest with me now is possibly missing out on lucrative future deals (suckers). I have no doubt in my mind of how successful I will be.

“One Look, One Look, I’ll Show You One Look” – Derek Zoolander

I feel like Derek right now. “One Deal, One Deal, I’ll Show You One Deal”. One deal to financial freedom. How easy is that.

And that idea grew my brain by like 10 goodness levels today.

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