Real estate as a means of economic well-being

Real estate as a means of economic well-being

Real estate as a means of economic well-being

 

How we will achieve economic prosperity

Hello friends, for a change, I decided in this post not to write specifically about real estate itself, but about real estate as a way or means by which we can achieve economic well-being. Investing in real estate as a whole is basically buying properties, only in Israel because it is a considerable cost, only a small handful of the population is considering making today, most of them prefer to keep the money in the bank in a savings plan because they do not know anything else and think investing is very risky.

I argue that the opposite is true and that whoever leaves his money in a savings plan at the bank loses the money system and will never reach financial freedom.

You will immediately see how anyone can take responsibility for their financial situation and start investing in real estate.

Who does not dream of financial freedom, who did not think how it would be on the day when money would be a marginal thing, something that there is plenty of it and abundance. We could get up in the morning and every day to do something else without an account.

As an investor and investor investor, I always meet people who aspire to economic prosperity but have not yet overcome the barrier that prevents them from doing anything about it.

It is a wonderful feeling to get up in the morning without the pressure to hurry up and get the ticket stamped. The way we have to do until we realize this dream is a long and bumpy path, but it requires us to stick to the goal and to do something else every day that will bring us closer to it. A proper economic plan can bring you financial freedom within 5 to 10 years.

You do not have to be a genius to achieve financial freedom. Almost everyone can get to it if he just does a number of things in the right way as you read right away, some things can be done immediately.

If we take the concept of economic well-being and translate it into simple words, it means acquiring a number of income-generating properties that together generate income at the height of your monthly salary. If you have a source of income that gives you monthly income at the level of your monthly income from work you can decide whether you continue to work there because of the economic aspect or because of something else.

One of the main things to understand at the beginning is the following rule:

Economic freedom depends on the amount of money we spend and not on the amount of money we save.

Your personal ability to achieve financial freedom depends less on your ability to save money, the amount of money that can be saved is proportional and small savings will not be financially free so your ability to resist temptations and purchase with this money Smart investments and income-generating assets that will bring you monthly income is the right way to financial freedom .

The main mistake that anyone who wants to achieve economic freedom operation during his life is to save instead of investing money in yielding assets.

The first step in this way is the most difficult part, and it is a general order of family economic conduct. This is the most significant and difficult step whose main significance is to take personal responsibility for our economic situation. Tracking all expenses and revenues and spending control will tell you the true picture.

There are several programs on the Internet that you can manage monthly expenses and income and be constantly monitored for your expenses, you can also download the Excel sheet I use -http://bit.ly/2Vy1lQI

The main goal of this step is to create a positive income flow. If you have entered all your expenses and income and reached a negative balance, you must first take care of your economic behavior and cut costs. This is the first and most significant stage because here you are actually starting to take responsibility for your financial situation.

Each of us lives on a different standard of living and also earns a different amount every month so everyone will have to figure out what level of income they need. For calculation purposes, we will take the average salary in the economy as an example, which now stands at about NIS 9,000 per month. If we make the amount into dollars, we get $ 2,300 per month.

In order to go for financial freedom, we will have to generate an income of $ 2,300 per month, and we will do so by purchasing 4 assets, each of which will bring us a net income of $ 575 per month.

The stage of purchasing the first property is the critical stage in the equation, how much will the asset cost us and in which country we should invest. In order to answer these questions, we will have to do a small research project and a simple math calculation.

To calculate the amount of investment required in a property that will generate an income of $ 575 per month, we will multiply the monthly income by 12 to get the annual income from the required property. A property in the US will yield us an average of 10% net return per year, so we will multiply the result by 10 and get the required investment amount and the cost of our property. According to the example offered above, the cost of the property is $ 69,000.

If your plan for economic well-being is built for 10 years, you have to buy this property every two and a half years, so that within 10 years you will reach the desired goal of passive income at the level of your monthly salary.

The sooner you start, the quicker you will reach financial well-being!

Link to the original post in the United States Real Estate Forum on Facebook - Works on a desktop computer (To view the post must be members approved for the forum)

The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion

  • Multiply in 10
  • What are the house maintenance costs that generates $ 500 per month?
    I am sure that over the years it is necessary to renovate or replace something expensive such as a roof, kitchen, etc.…
    Annual income of 6 / 8 thousand dollars is beautiful but still these are homes that need regular maintenance and over a few years renovation costing several thousand dollars is not?
    Do you also market complexes?
  • The problem with this calculation is that you need to save NIS 241,000 in two and a half years because you did not mention taking out a mortgage here…
  • Connecting to every word? And implements… most important to think and act long-term
  • Thank you very very important post!
  • ??
  • Tal Schohat
  • ?
  • Assaf Swisa !!! ?
  • This is a very important post, especially the part where you mentioned that you need to start behaving properly at home… As someone who deals with this quite a bit on a daily basis, a lot of families just do not know / can not behave properly and therefore live in a constant negative balance. One of our most important responsibilities as investors and investor advisers is to explain to the investor that investing in the US can also not succeed and therefore must first stabilize the balance sheet at home and only if possible then enter it… And in connection with calculations, on paper it is nice, in practice 10% fixed for inactive On a regular basis this is really not trivial in my opinion. Obviously possible, but if you bought a low number of houses, and you let them work as passive income, the probability of 10% is low in my opinion…
  • Connects to your every word and believes it myself, though today with slight reservations.
    The scam with the first real estate property I purchased in the US, in Detroit, which caused not only not insignificant economic damage, mainly the introduction of tensions and uncertainty, feelings of lack of control and a feeling that anyone could deceive you with unbearable ease. Due to the lack of experience in the American market, I enlisted the help of a lender, who ensured economic security, peace and stability with a passive, solid investment and what not. 2 from its real price. You can complete the false presentations that were around the sale on your own - a well-kept neighborhood, a bargain price, a complete and comprehensive renovation…
    Admittedly, recommended, priced and even executed by the lender opening an LLC, making a transaction through a title, and all this is excellent ,. Only in retrospect, it is a pity that it will not be priced and executed, or at least recommended by the lender to carry out appraisals, inspections and perhaps some inspection by the authority regarding the existence of construction violations, given that the contract is as is. Trendy accompaniment something… and more from a professional with specific training that you would expect.
    What was I trying to say? If such an event happens to you at the outset, you are certainly less reliant on yourself, becoming suspicious of others and a bit cynical when it comes to that financial independence. Appreciating your recovery from this rival,
    Wishing everyone their start would be different…
  • By the way, if you come across cases with similar characteristics to Detroit, an Israeli entrepreneur, some of the transactions through a lender, etc., that were affected by the process, I would be happy if you contact me. A "nice sample" is already accumulating.
    Thanks
  • Why not write who it is? There are many such entrepreneurs who have hurt beginning investors
  • An important post
    As you mentioned first, proper economic conduct needs to be done. I personally did an experiment about many years ago. The experiment was:
    Preparing an Excel file (less beautiful than yours :)) in which I indicated my and my wife's income, fixed expenses (mortgage, property tax, insurance, etc.), then two more columns one for me and one for my wife where they indicate all the expenses we made during that month (of course indicated if This is CA or cash) up to the level of chewing gum (5 shekels). I can tell you that in the first month this list was very, very long. The amount of spending on unnecessary stuff was insane. In the second month it was shortened and as in the third and so on.
    I can tell you she was shortened not because of this stinginess because of awareness. Suddenly we were aware (it appeared to us) how much money we spend on nonsense.
    Recommend that you do this experiment for a month and you will not believe how much money you will save.
    We in the third month have already saved 7000 NIS. By the way - even if you saved 200 shekels a month it is still a very nice saving. Good luck
  • What a beauty… I have a hard time with that ..
  • Champion, am I there too soon?
  • As obvious as it is, it is still one of the most difficult steps to perform. Thank you for bringing this back to your mind
Related News Real Estate Entrepreneurs

Responses

  1. An important post
    As you mentioned first, proper economic conduct needs to be done. I personally did an experiment about many years ago. The experiment was:
    Preparing an Excel file (less beautiful than yours :)) in which I indicated my and my wife's income, fixed expenses (mortgage, property tax, insurance, etc.), then two more columns one for me and one for my wife where they indicate all the expenses we made during that month (of course indicated if This is CA or cash) up to the level of chewing gum (5 shekels). I can tell you that in the first month this list was very, very long. The amount of spending on unnecessary stuff was insane. In the second month it was shortened and as in the third and so on.
    I can tell you she was shortened not because of this stinginess because of awareness. Suddenly we were aware (it appeared to us) how much money we spend on nonsense.
    Recommend that you do this experiment for a month and you will not believe how much money you will save.
    We already saved 7000 in the third month.

    By the way - even if you saved 200 shekels a month, it is still a very nice saving.

    Successfully

  2. By the way, if you come across cases with similar characteristics to Detroit, an Israeli entrepreneur, some of the transactions through a lender, etc., that were affected by the process, I would be happy if you contact me. A "nice sample" is already accumulating.
    Thanks

  3. Connects to your every word and believes it myself, though today with slight reservations.
    The scam with the first real estate property I purchased in the US, in Detroit, which caused not only not insignificant economic damage, mainly the introduction of tensions and uncertainty, feelings of lack of control and a feeling that anyone could deceive you with unbearable ease. Due to the lack of experience in the American market, I enlisted the help of a lender, who ensured economic security, peace and stability with a passive, solid investment and what not. 2 from its real price. You can complete the false presentations that were around the sale on your own - a well-kept neighborhood, a bargain price, a complete and comprehensive renovation…
    אמנם, הומלץ, תומחר ואף בוצע על ידי המלווה פתיחת LLC, ביצוע עסקה דרך טייטל, וכל זה מצוין,. רק בדיעבד, חבל שלא תומחר ובוצע, או לפחות הומלץ על ידי המלווה לבצע שמאות, אינספקשיין ואולי איזה בדיקה ברשות לגבי קיום הפרות בנייה, בהתחשב בהיות החוזה as is. ליווי מגמתי משהו… ועוד מאיש מקצוע עם הכשרה ספציפית שממנו היית מצפה לכך.
    What was I trying to say? If such an event happens to you at the outset, you are certainly less reliant on yourself, becoming suspicious of others and a bit cynical when it comes to that financial independence. Appreciating your recovery from this rival,
    Wishing everyone their start would be different…

  4. This is a very important post, especially the part where you mentioned that you need to start behaving properly at home… As someone who deals with this quite a bit on a daily basis, a lot of families just do not know / can not behave properly and therefore live in a constant negative balance. One of our most important responsibilities as investors and investor advisers is to explain to the investor that investing in the US can also not succeed and therefore must first stabilize the balance sheet at home and only if possible then enter it… And in connection with calculations, on paper it is nice, in practice 10% fixed for inactive On a regular basis this is really not trivial in my opinion. Obviously possible, but if you bought a low number of houses, and you let them work as passive income, the probability of 10% is low in my opinion…

  5. What are the house maintenance costs that generates $ 500 per month?
    I am sure that over the years it is necessary to renovate or replace something expensive such as a roof, kitchen, etc.…
    Annual income of 6 / 8 thousand dollars is beautiful but still these are homes that need regular maintenance and over a few years renovation costing several thousand dollars is not?
    Do you also market complexes?