By Gino Barbaro
When we talk about financial freedom, people seem to think of $10,000 as the magic number. This seems to be the number that people need to cover their monthly expenses and reach financial freedom.
So the question is, how do we get to $10,000 per month in income?
Let’s say you have a 25 unit apartment complex where each unit is generating for example $100 per month in profit.
25 unit apartment complex: $100 profit per unit X 25 units = $2500 per month in income
If you purchase four 25 unit deals, that will give you 100 units at $100 in profit each per month,
100 units: $100 profit per unit X 100 units = $10,000 per month in income
Some of you might say, I don’t have the down-payment for a 25 unit apartment complex. If you can’t do this by yourself and you need a partner, maybe you need 200 units to reach that magic number of $10,000 per month. Jake, My Brother & I partnered on our first 25 unit apartment complex and now we have closed on over 1,600 units (the first 1,000 units without syndication).
Watch out the video on IGTV:
The $10,000 of profits each month does not include the ancillary benefits of real estate investing: with tax benefits and cost segregation, principal pay down and building a business.
If these numbers seem daunting to you start smaller & work your way up. Students in the Jake & Gino community are closing smaller assets like duplexes & quadplexes and we have some students that have partnered up and are closing on 40+ unit and 100+ unit deals.
And you might be wondering why multifamily? The reasons are compelling and simple:
- Cash flow. If it don’t cash flow, let the grass grow.
- Capital appreciation. The property will appreciate in value over time, and the tenants will be paying down the mortgage.
- Tax Benefits.
- Cycle resiliency. Multifamily is one of the three basic human needs. Food, clothing and apartments!
There are so many creative ways to do this, subscribe to our podcast, you’ll get a lot of information on how to start scaling up your business and taking control of your financial future.
When you’re ready to take that next step, click here to start the conversation.