Sorry I have not posted in a while. I am actually experimenting with different media types and was hoping to be able to upload some videos, but alas that must wait until another week.
Over the weekend I was at a one day seminar with Steve McKnight , where I was hit by an AHA moment. Then again whilst playing Robert Kiyosaki’s cash flow game. You know when that final piece of the puzzle fits into place and it all makes sense, well that is where I am at right now.
One thing Steve has always said -and I have taken it on as my strategy- is to use debt free commercial property to give you a residual income. I had taken it upon myself that this meant to do as many deals as possible and then take a lump sum and by a commercial piece of real estate for cash. This is not actually the way to do it, as well all know that lump sum cash would be better invested that sitting in the bank waiting for me to invest it.
The trick is that you will get to a point in your investing life that you don’t actually need to buy any more property and that you would be able to achieve your financial freedom goals, simply by paying down the debt you already have.
Simply put, by purchasing a commercial property in the midst of your residential investing career, and not the end, you can use your skills in residential property to pay off lump sums of debt on your commercial. As your debt goes down, your cash flow increases, getting you to the point where your passive income matches your expenses and making you financially free.
Remember we are not in a competition for how many properties or how big a net worth we have. Properties are just tools to get us the cash flow we need to become financially free.