Is it possible to shortcut financial freedom?
Will it really take you 5, 10 or 20 years before you can become financially free and live the life of your dreams? I don’t think it has to be like that.
Let’s use me as an example (because let’s face it what other example am I going to use?). I need to earn a minimum of $40k per year in order to become financially free. If I only use the method of buying cheap residential houses in order to achieve that I am going to need to own around 40 houses. It is possible but I don’t think I will achieve that amount of properties in one or two years.
However, I could possibly fast track my road to financial freedom by using subdivisions and developments. One property I am thinking of buying has the potential to subdivide and sell off the land. It is negative cashflow $20, but I could draw $35-$40k out of it by selling the land. That is enough for me and my family to live off for one year.
Technically it is not ‘financial freedom’ as I am still technically working for that money, it isn’t passive. But it allows me to stop working in my job and to spend time with my family and working on building up passive income through other property purchases.
It might take me 10 years to buy 40 properties and achieve my goal of $40,000 per year. But what if each year I could buy 1 property and draw out $40k to live off. Then spend the rest of my time buying properties that deliver positive cashflow. It still might take me 10 years to become ‘financially free’ but I get to do what I want in those 10 years and enjoy the high life.
To me that is certainly a fast track to the type of life I want to live. It might cost you $20/week to get that $40k out, but that leaves you $39k for whatever you want.
This proves to me that there isn’t one specific way to success. I prefer positive cashflow properties over negative cashflow ones, but if it achieves what you want it to achieve either can work just fine.