Voice for Peace
now this example is considering that your using cash right?
Clayton, I have 11 properties that all make me 5,500.00 a month cash flow. I still have a job but I can also quit my job if I'd like. They all have a mortgage on them. would that be considered financially free even if they're mortgaged?
In your podcast episode 157, you said "But that doesn’t mean the funds inside that LLC banking account are yours for the taking. You can’t write a check from your LLC’s business account to purchase groceries for your family. In fact, that’s known as commingling, which is illegal." Given that my properties are all held in an LLC, how do I use that income to replace my 9-5 income and buy groceries?
750 income on a 40k home? Does not apply in California.
Hey Clayton how would the removal of the Robb-franks act affect the rental market❓
Great channel! I'm a college student looking to get into real estate and you provide very informative and easy videos to follow. Keep producing quality videos like these and your channel will blow up in no time!!!
I agree with the concept, but you have to remember property expenses. They are typically 40-50% of your annual income (not including your mortgage). Therefore, even if you bought the property in all cash, you are still going to have property expenses!
Good advice… Don't be greedy when you start investing.
Set realistic goals.
Great post, but you only covered it from the perspective of someone owning the property free and clear. Add a mortgage, of $550 or so and the property only cash flows $200.
Hi Clayton. Can't get over all the incredible info on this channel. Thank you! My question… let's use your example number from the video and say I have 5k of monthly expenses. Assuming $700/mo for each rental property, we're going to be ultra-conservative as you've suggested and bump that down to $420 (700 – 40%). Ok, se each property is NETing us $420 a month. 5k / 420 = ~12 properties. Great. So assume I have those 12 properties in LLC's, how would I funnel the money to me to pay my bills? My concern is that I wouldn't in fact see the full 5k to cover my expenses, rather, 5k minus whatever the tax man puts on me for personal income. Can the LLCs pay my bills directly? I'm under the impression I'd have to salary myself from the LLCs, get taxed on that total 5k as income, then I'm free to use the rest to pay expenses. Does that sound correct? I appreciate your insight brother!
I wish i could love this video. Such a good wealth of information!
When u bought ur first property, how long did u take to purchase the next one? And did u refinance that first house or buy the 2nd one all cash? Im asking so I can follow the same route u did…ty
I never thought about it like that, wow.
The things our "Freedom Number" leaves out are the costs of health care and taxes. Those are not reflected in your bank account as they are usually paid at work.
Love that you keep it real
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