Many out there are looking for the magic cure to creating financial independence and often jumping from one direction to another.  Whether your investing in real estate, a MLM, or some other business idea –Stop jumping from get-quick rich idea to another! Folks -it is true that we all need to find our own niche; however, more often than not it takes commitment, dedication, and time for the plants to grow from the seeds we sow.  Cash-flow and wealth creation (net worth) are the two area’s one should focus on in their quest for financial independence.  Success is not that difficult; however, there are some very simple keys (to success) that one needs to use.   My question to you is: Are you really prepared for success?

No matter what your direction,  It is these keys that are required

  • Capital
  • Skill (experience)
  • Time

One does not need any particular item; however, if you lack in one -more of the others will be needed.   So you don’t have any money!?! Who cares! That is the cards your dealt with. Roll with the punches and be prepared to commit time and hone your skills to exceeding in the direction you take.

Being a Real Estate Investor, I will tell you that most overlook the true fact that holding real estate (landlording and inventory in a wholesale/rehab business) requires capital.   Whether one has the ability to put cash into the operation or borrow it, the investor needs to insure that the return is worth the risk and that the cash flow can handle the debt obligations.

For those with limited capital, I highly recommend creating a business in real estate such as bird dogging, wholesaling, and services  (clean outs, painting, heat/ac, plumbing, landscaping, Realtor, lender, etc., ).   What is most important for you is that you create a true positive cash flow business that can create your financial independence (from a job) and fund your investment operations.   Once one is capable of maintaining consistent positive cash flow with some cash reserves, one should consider investing into wealth creators.

A rental property is a great wealth creator; however, it requires capital as the unknowns (vacancies, dead-beat factor, and maintenance/repair issues) will pop up unexpectedly and multiply as your portfolio grows.   I believe that rentals can be great retirement packages; unfortunately, in the short term cannot be relied upon for consistent positive cash flow unless your debt levels are extremely low. Of course if you like your job, investing in rentals can be a great supplement -it’s how I started.

Do you want to know what the most important issue (in my opinion) is for thriving in real estate investing -not to mention any aspect of your life?

The experience and knowledge one develops over time is what is going to help improve the odds of ones success.

This is often overlooked and misunderstood! Most look at those who are succeeding and say –“If I had their cash, I could do exactly what their doing.” Believe me if your good at what you do, you’ll find the capital to fund your growth and the rewards of cash-flow and wealth that follow. Often I have people coming to me with what they perceive as a great deal on a real estate investment.   Sure it maybe a good long-term rental investment; however, if its a Real-Deal you’ll have no problem borrowing money to buy it and/or wholesaling it to another.   Is that a problem for you? If it is, I suggest honing your skills to identifying what is a Real-Deal and securing them.   A real deal is easy to fund or sell.  Most people struggle with the work and dedication it takes to honing this skill and then multiplying in volume.

With the headwinds we’ve been facing in real estate, I have seen many acquaintances move into Multi-Level Marketing businesses.   I’m not a big fan of MLM’s’; however it is a tool for creating financial independence. Ideal for those whom lack capital; however, requires a great amount of time and skill (just like anything else) in order to succeed.   I think many get attracted to it by the quick hits (albeit little cash payouts) one can achieve at first versus the time it can take to make money wholesaling or renting a piece of real estate.   You see the skills required upfront are not as great.   However, I contend its not an apples to apples comparison.

If you seek quick hits in real estate (and lack the skill of finding real deals), then you’ll need to create a service business. Why not have it be affiliated to real estate?  What a great way to immerse ones self into the industry to help accelerate your skills in finding a Real Deal.   Heck, one might even find that the service business becomes their labor of love not to mention tool to financial independence.

The directions are limitless, one just needs to find the niche and commit the time required to hone the skills and the capital that follows.

Written by Tyler McCracken

Local Real Estate Investor & Hard Money Lender in Charlotte, NC - Read Bio at our "About Us" page on the top right of this page.

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