Torcana Real Estate Investment with Colin Murphy

In this weeks podcast, I have summarised my top 13 tips for those wishing to put their savings to work and increase their wealth by investing in real estate. Enjoy!

The theme of today's show is the five important steps to get to financial freedom.

One way or another, I think we all aspire to have financial freedom. That means different things to different people, but for most of us, it means having enough money arriving in your bank account each month to cover your bills and responsibilities whether you're actually working or not.

Financially free people can retire whenever they want, but most keep working on stuff they love doing. I think that's a place we would all like to be right?

1. You need a good team

You can't get rich on your own. If you did, then you a) you must be brilliant and b) you could have done it a lot quicker with some help.

In order to build a real estate portfolio, particularly out of state, you need, in no particular order

property manager - lender - realtor - turnkey provider - bookkeeper & CPA - attorney - insurance agent - mentor / senior person to rely on

If you're a property flipper like I am, did you need all of the above and several more such as contractors, roofers, AC guys, electricians, plumbers, title agents, wholesalers, admin assistants and last but not least, like-minded business partners who you can push you forward or hold you back depending on your impulses.

2. Live below your means for a long time

To accumulate wealth you need to live below your means year after year after year and consistently invest that excess. It sounds obvious when you say it out loud but a lot of people who have aspirations to get rich don't do it.

They invest very little or very infrequently or spend everything they earn (and sometimes more) because they put lifestyle ahead of wealth. Getting a pay rise and using the money to get a nicer car or go on a nicer holiday is easy and its what we're encouraged to do by big corporations.

Learning to save enough to invest is a habit that can be learned by anybody. Some people might have that habit naturally, but it can be learned by anybody. There are plenty of sensible millionaires in their 40s and 50s who will freely admit they were stupid with their money in their 20s and didn't start using their income productively until they were much older.

3. Don't take too long to create that nest egg

It could take 40 years if all you're doing is putting money in a 401k. A 401k can give you financial freedom but its super slow and to be honest, its a little lazy. I think it is a bad idea to rely on someone else to take care of your finances. Getting a team is important but everybody should take responsibility for their own finances. If you're in a well paid corporate job, it is a good idea to take advantage of a 401k, but it should only be one stream of many.

There are lots of ways to get financial freedom outside of the 401k world. Real estate is a big one, but there are lots of investment opportunities out there if you take the time to find them.

Doing it in 5 years involves a lot of risks and good luck. 10-20 years is very doable with the right amount of planning and discipline. If you are literally starting now, then assume it will take 10-20 years and to build a multi-million dollar portfolio that will generate enough income for a comfortable lifestyle. That's if you're taking it seriously the whole way through.

4. Leverage is your friend, but don't go crazy on it

I'm a big fan of leverage. It is great that you can use the banks' money to buy multiple properties at a fixed interest rate and use the tenants' money to pay your principal and the interest. That is is a good deal! Millions of regular folks have gotten very rich by taking advantage of it.

However in the short and medium term that "good deal" adds nicely to your net worth and pretty slowly to your income. Unless you have a massive portfolio, you only generate "financial freedom" volumes of income from real estate when those mortgages are paid off. So there is a balance to achieve and it will depend on your age and appetite for risk.

For example, if you were in your late 50s and hoping to retire in 10 years, don't go remortgaging your properties to buy more. Pay off the ones you have and live on that free and clear income. If you're in your 30s and early 40s, then you should put a priority on accumulating assets but make sure they all have adequate reserves and equity cushions.

Whatever you do, don't ever release equity on a house to improve your lifestyle. I buy properties in foreclosure auctions from people who do that.

Don't remortgage your house to buy a car, take a vacation or renovate the kitchen. If you are taking on debt, only do it if you are investing it in something that will pay a substantially higher return.

5. Anybody can do it but keep educating yourself and hang around with the right people.

You don't need to be a genius to achieve financial freedom at a much younger age t...

I have an awesome guest on todays show! Kathy Fettke is one of the most respected voices out there in the Real Estate industry and someone who I've had the honor or knowing and working with for almost 3 years now.

Many of you will have heard of Kathy, but for those who haven't, she is the CEO and Founder of Real Wealth Network, an organization dedicated to helping members get the most current and cutting edge information they need to succeed as real estate investors.

Kathy is a frequent guest expert on such media as CNN, CNBC, Fox News, NPR, CBS MarketWatch and the Wall Street Journal. She is the author of the #1 best seller, Retire Rich with Rentals and is host of The Real Wealth Show. She is also a very active real estate investor!

We covered a lot of topics in today's show including:

How Kathy got started in Real Estate

How her company is helping thousands of people to build passive income streams through rental properties

The mistakes Kathy sees people making when prices are rising fast

Her thoughts on the current market and key investment strategies for 2019

Opportunity Zones and why they are going to be a big deal this year

How Kathy manages a super hectic schedule and her advice to others looking to find more time for investing

PLUS: Learn about the time Kathy accidentally bought a house that was about to be condemned!

Show Links

Real Wealth Network Website https://www.realwealthnetwork.com/

Kathy Fettke Profile https://www.realwealthnetwork.com/team-members/kathy-fettke/

Live Event in Tampa 9-10 February https://investor.realwealthnetwork.com/connect/live-events-2/

Map of US Opportunity Zones https://esrimedia.maps.arcgis.com/apps/View/index.html?appid=77f3cad12b6c4bffb816332544f04542

Real Wealth Network Webinar on Opportunity Zones https://www.youtube.com/watch?v=PzO61ZyJDSA

Kathy's Podcasts https://www.realwealthnetwork.com/learn/?wpv-category=real-wealth-show-podcast-podcast

www.torcana.com

There is a lot to be said for investing in your home market, but sometimes it just isn ́t practical because prices are so high and/or rental returns are so low. If you want to invest out of state properly, there are a number of steps you need to follow to avoid making some very expensive mistakes. Here are my 7 recommended tips to get started on building a rental portfolio far from where you list and work.

Once you can identify and avoid the most common mistakes made, you ́ll find that building a profitable real estate portfolio is very straightforward. This podcast discusses the top ten mistakes I ́ve seen people make over the years and how you can avoid them. Enjoy!