I was thinking and came up with the two things I feel are the most important things to create wealth through real estate investing.
Phase One of wealth creation is the work phases. There is a lot of it and some of it will be hard.
You need to find and cultivate money sources (investors). You need to locate the properties. You need to create the loans (debt instruments and re-market the properties. That requires work. It may take you six months or six years. Either way you can do it. There are people all over the world making this work right now. And I'll bet that it isn't anywhere near as difficult as the work you do right now or as exhausting as the idea of being a slave to a regular job until you are 65!
You are essentially no different than me when it comes to real estate investing. You are just a few years behind on your investment time-line. The principle of Lag has not had a chance to kick in yet. But it will, and when it does…look out. For it brings with it Financial Freedom!
Phase 2 is all about cash Flow. Cash Flow that creates Automatic Wealth.
Cash Flow not cash is the best source of wealth creations. When you are able to retain the Cash Flow from your deals, then you are well on your way to becoming wealthy. When you are owning the Cash flow from properties, rather than selling them for cash, you are ready to move into phase two of wealth creations. Financial Independence.
Do enough deals and eventually the cash flow from your efforts will provide that $10,000 a month you wanted. You will have produced the cash flow to sustain yourself long term. You will have the freedom to do what you want to do when you want to do it, where you want to do it, with whom you want to do it, without any regard to the cost! That is true financial independence.
Nancy Geils, Investor, Investing With the Stars