Most people get into the real estate business in hopes of achieving wealth. We want to reach a point where we have the freedom to do the things we want. Financial independence is, in essence, being able to buy when you want and what you want while still having more than enough to live by. People who achieve wealth reach a point where they have enough assets to live off them for the rest of their life.

Yet, building wealth is easier said than done. The reason is that people spend more time planning their vacations rather than working on how they achieve their freedom. Being financially independent means more time, more choices, and the freedom to go anywhere and do anything.

Each of us have a different goal, but it starts with the freedom number.

Freedom Number

To achieve this financial freedom, what is the number that you desire? Each person can answer differently, and your answer will dictate how you go about your plan. Some people may think that $1 million may be enough, but most people need more. A $1 million plan is vastly different from a $5 million plan.

From that number, you can then strategize your approach to reaching that. Achieving around $3 million means saving $50,000 a month for the next five years. Some people may not get it that fast, so it’s reasonable to plan for it early. For example, working on a 15 to 20-year plan is something many can strive for.

The thing you have to consider with the money you save is expenses. Aside from that money, you’ll need to spend around 20-25% of that money on other costs. You have to pay for things such as:

  • Business expenses
  • Tax
  • Insurance
  • Daily expenses

To save $50,000, you’ll need $80,000 so that a portion of it covers all necessary costs. It’s the factor that many people overlook.

Using Real Estate to Build Wealth: Calculating Overall Net Profit

Real estate is an asset that appreciates over time, though there are many ways that people can also earn income from it. One of the most popular ways in modern times is flipping. While some people can make money off it, you’re better off holding the property long-term in many cases.

The biggest reason for this is tax. If you want to flip, you’ll have to consider the following:

  • Ordinary income tax: The IRS considers the flip Ordinary Income, so it’s taxed at 35% compared to capital gains at 20%.
  • Investment tax: You’ll pay around 3.8% of the selling value in tax.
  • State tax: It will vary depending on your state. In places like Oregon, you’ll have to pay around 12%.

That means you’re paying over 50% of your sale price in tax. If you sold a house for $60,000 and your profit is $28,000, you’re still paying over $30,000 in taxes. In most circumstances, it’s not worth it.

Building a Habit of Saving

Saving money is a habit that everyone needs to develop. It doesn’t have to start big right away. For many of us, it’s all about becoming comfortable and accustomed to the idea of setting money aside. Some people began saving around 3% from each paycheck they got. For example, for every commission sale I had in the real estate market, I set:

  • 1% for business expenses
  • 1% for retirement
  • 1% for investments

It’s a small amount, but doing it matters more than how much you save. When you start with 1%, you’ll find it easier to save 2%, 5%, and even 10% each. It’s all about creating that habit first.

“What the mind can conceive and believe, it can achieve – Napoleon Hill.”

 

Published on Apr 26, 2022 under ,

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(Coaching) (Keeping It Real)

Keeping It Real: The Resources To Equip Your Real Estate Team for Success with Sascha Chatman

Keeping It Real: The Resources To Equip Your Real Estate Team for Success

 

 

In this episode of Keeping it Real, Sascha Chatman and  Frank Klesitz, CEO of Vyral Marketing, break down how you can equip your real estate team for success.

Learn more about the resources needed to manage your own team of real estate agents. Of course, a capable workforce is one thing for generating leads and obtaining success in the real estate world. However, having the right resources available is one of the critical factors needed to equip your real estate team for success.

Recruiting Presentation 

Transforming Your Success into Their Success

Creating a Schedule

Buying this Year vs Next Year

Discovery Phase

The discovery phase is meant to determine whether or not the agents being recruited are the right fit for their real estate team while providing the necessary details for the agents to know what their team is about. Sascha first discusses their team goals and strategies to ensure agents know exactly what they're walking into. He also discusses other matters, such as expectations from the agents themselves and their commissions.

The discovery phase may be one of the most important parts of knowing how to equip your real estate team for success. In order to succeed, you need to have a reliable workforce on your side that shares the same goals and is willing to cooperate with the rest of the team to move forward. Having a compatible and efficient team is one of the best resources you can have in real estate, as it can significantly affect your business' productivity.

Ad Educated Buyer is Easier to Work with!

Agent Utility Belt

This is the highlight of the entire video. Sascha compares his utility belt of resources to Batman's belt of tools and trinkets. This belt essentially exists to store all resources and keep them within reach. Don't get the wrong idea, though. It's not an actual belt. Instead, it is usually a cloud or a compilation of all your valuable resources, such as videos, links, and other agent tools. Having a utility belt that is curated specifically for your team and your needs could help increase the productivity of your workflow because you won't have to scavenge for resources when you need them.

Not only does it make you more productive within your workplace, but it also gives off the sense that you are reliable and organized. When clients ask for something, you will easily have it within reach. 

Clients understandably have many questions before closing the deal, so one of the best ways to answer them is to grab a resource from your utility belt. For example, you're talking to a client about title insurance. Instead of answering their questions yourself, you could take an informative video from your utility belt and ask them to watch it. This makes it easier to understand and relate to.

Having a utility belt is a great way to equip your real estate team for success. It also comes in useful during business transactions. All in all, it's one of the best resources that a real estate team can have.

Having the right resources is essential in equipping your real estate team for success. Create an agent utility belt that caters to your team by signing up for the Real Geeks platform today. We provide valuable resources that you and your team can use to achieve the best possible outcome in every situation. Get started with us today!