I Used A New Collaborative Real Estate Investing Methodology To Position Myself For "REAL" Financial Freedom In Less Than 12 Months & YOU CAN TOO!🏠
How To Deliver The Most Value To A Real Estate Project Without Money Or Credit!
The journey started for me about a month before my 56th birthday…
I was standing in front of a house I was rehabbing to flip one evening in freezing weather (about 30°). There were two really big and ugly concrete statues in the front and on the side of the house that I had the hardest time finding someone to remove.
I live in Texas (where snow is rare) and this particular real estate project had begun to go south so I had to high-tail it to Michigan to save the day because our project manager had left us hanging in the cold (literally). Needless to say, this was the nightmare nobody wants to experience.
I was able to accomplish the mission but something deeper was wrong and I couldn’t pinpoint it at that time.
I Was At A Crossroad🛣️And Didn’t Know It!
While standing there, I was suddenly overwhelmed with a feeling of guilt & shame.
At first, I thought it was because I should have done better with this project since I have over 30 years of experience as a real estate investor and more than 500 real estate projects under my belt.
But after further reflection, I realized that that wasn’t the reason I was feeling this way.
Wow! All This Time I’ve Been Playing The Wrong Game!🎯
Turns out, I was feeling guilty about being over 50 and I hadn’t achieved financial freedom for my family as planned. In fact, I was a bit hazy about what financial freedom even looked like to me.
In my own defense, I’m a cancer survivor who lost everything and this is basically a do over for me. But I had a 5 year plan that wasn’t working and it was clearly my fault.
I can’t ignore the good news which is that, after 2 surgeries, I was blessed with a second chance to live and spared the anguish of telling my 4 children that I was leaving them - for good.
Let’s Not Forget The Shame:
I felt shame because for years I had been teaching my followers to play both chess (the long-wealth game):
Buy & hold properties
fix & hold properties
AND checkers (the short-cash game)
fix & flip properties
wholesaling properties
My intention was to play both games but for some blasted reason I never got around to the long game - I was stuck in the short game (rat race) and no matter how much money I made, I continued to find myself in the hole and the hole was only getting deeper!
I couldn’t shake the thought that, at my age, it may be too late! I kept asking myself, “How could I allow this to happen to me?”
Long story short, I needed to recalibrate my plan - like now!
One Small Adjustment🔧 To My Plan Changed Everything Forever!
The 23 hour drive back home to Texas gave me plenty of time to think things through. It was obvious that I didn’t need a new plan, I only needed to refocus on my original plan: Play on the long-game primarily and the short-game as a secondary tactic.
As an instructor & coach, I knew better. But somehow I allowed my circumstances to block my capacity to do better.
“Your long game will almost always eventually replace your short game - but the odds are heavily against your short game ever transforming into your long game”
I honestly believe that my previous health and ultimate financial issues left me in a stupor that I never recovered from - UNTIL THAT ONE COLD DAY!
The Emergence of the 3-Phase Real Estate P.I.E. Recipe
On the way home, I began to develop and expand on a collaborative real estate investing methodolgy that I had been using for years. However (duhh), I was using it the wrong way. Now that I was seeing straight, everything started to fall into place.
I call it the “Real Estate Passive Income Expansion (P.I.E.) Recipe.” It’s comprised of 3 Phases & 6 Steps:
PREPARE:
My Season of Wealth
My Wealth Strategy
ACQUIRE:
Source the Deal & Funding
Negotiate for Winners
EXPAND:
Activate the Assets
Optimize & Expand
The Ultimate System:
The Real Estate P.I.E. Recipe is the core framework of the Rental Property Mastery (RPM) Partnerhip System.
What is the RPM Partnership System?
The RPM Partnership System is a collaborative real estate investing methodology that facilitates collaboration between multiple participants working together to reduce risk and accelerate wealth creation via the acquisition of income producing assets.
Simply put, we buy properties together.
Consequently, we can buy more volume, bigger projects, with less risk than we could ever imagine to on our own!
A successful RPM Partnerhip System project requires five key inputs:
Skill
Team
Funding
Deal(s)
Time
The are Six Real Estate Investor Types
Real Estate Collaborators (sell opportunities to create wealth faster with less risk)
RPM Acquisitions Partners (sell cash)
RPM Disposition Partners (sell purchase agreements)
RPM Flipper Partners (sell properties)
RPM Asset Managers (Passive RPM Collaborators)
RPM Landlord Partners (sell opportunities to rent properties & create wealth)
RPM Tenant-Buyer Partners (sell cash flow)
Yes, tenants can create wealth too!
I am a Real Estate Collaborator!
As a Real Estate Collaborator, I bring the skill and the team to the project while other collaborators (RPM Partners) bring the deal(s) and funding to the table. We all contribute our time.
Important Note: You only need to bring ONE input to the project (that can be time) and leverage the other inputs. You can also bring multiple or all inputs to the project.
Individually, we ALL use the same recipe and we ALL have the same objective which is to achieve “real” financial freedom!
Your task is to develop your skill to become a Real Estate Collaborator AND/OR partcipate as a passive collaborator (RPM Partner) with a Real Estate Collaborator.
Our collective mission is to help each other achieve “real” financial freedom in 6 years or less - regardless of our individual starting point.
Let’s Get Some Clarity:
If you recall, until after that one cold day, I was unclear about what financial freedom even looked like for me. If you ask ten people what financial freedom is to them, you may get ten different answers and the answers will probably be very vague and sometimes down right allusive.
So let’s define “Real” Financial Freedom, for our purposes, right now:
The Four Seasons of Wealth:
Survival:
Basic Living Expenses (BLE) > Passive Income (PI)Example: Your basic living expenses are $4,000/mo and your passive income is $500/mo (for most it is $0)
Stability:
Basic Living Expenses = Passive IncomeExample: Your basic living expenses are $4,000/mo and your passive income is $4,000/mo
Success:
Basic Living Expenses + Lifestyle Expenses = Passive IncomeExample: Your basic living expenses AND your lifestyle expenses are $8,000/mo and your passive income is $8,000/mo
Significance:
Basic Living Expenses + Lifestyle Expenses + Legacy Expenses = Passive IincomeExample: Your basic living expenses AND your lifestyle expenses AND your legacy expenses are $12,000/mo and your passive income is $12,000/mo
🏃♀️Survival is “The Rat Race” (winter)
⚖️Stability is TIER 1 “Real” Financial Freedom (fall)
🏆Success is TIER 2 “Real” Financial Freedom (spring)
👑Significance is TIER 3 “Real” Financial Freedom (summer)
Are we clear on what “real” financial freedom is now?
Great!
Back To The Point:
To stay on point, I’ll focus on step 1(a) & 1(b) of The Real Estate P.I.E. Recipe:
My Wealth Season & Strategy (we’ll cover everything else in detail in other articles).
Obvioulsy my season of wealth was “survival” (funny how most people have no idea about this situation and how detrimental it is the their future). Therefore, my target wealth season was “stability” which is Tier 1 “Real” Financial Freedom.
For our purposes, there are two types of wealth strategies:
Yield Play
an investment that meets your desired minimum return on investment on your money (recommended if you have money that needs to be parked and put to work)
Value Play
an investment that can be contributed to in such a way as to add value or force equity (recommended if you’re falling short of your financial goals within your preferred time frame)
Since I started at zero (subzero to be more accurate), my wealth strategy had to be a value play (I really needed to accelerate my wealth creation).
Now for the plan:
There are numerous ways to structure a deal. However, we need to keep things simple.
For our purposes, we focus on one or both of two plans:
The Leap Frog Method
acquire 4 single family rentals & transition to a small apartment or real estate-business combo (recommended if you have $0 - $150K in seed capital)
The Grand Slam Method
acquire a small apartment or real estate-business combo (recommended if you have $150k+ in seed capital)
I actually had RPM Partners to implement both plans but for now we’ll focus on the leap frog method.
I’ll break this down more in future articles (feel free to post your questions in the comments) but I do want to point out one thing:
The plan is to acquire the 4 single family homes to create equity to ultimately be used in the acquistion of a small apartment to create cash flow.
The Secret Sauce (Shhh - don’t tell anyone🤫):
As a Real Estate Collaborator, I put these deals together to help the RPM Partners achieve “real” Financial Freedom…
BUT…
The Real Estate Collaborator (Me or You) retains up to 50% of the equity and cash flow in the project as well. Which means that the Real Estate Collaborator (Me or You) is achieving “real” financial freedom at the same time as the RPM Partner(s) in these projects).
Wait for it…
The Real Estate Collaborator brings the most valuable inputs to the table (skill and team). The fact that they don’t have to bring the funding to the table makes this a highly scalable system (more on this later)!
The Bottom Line:
Stay tuned and develop your skill to do this yourself…
None of us has a legitimate excuse now…
Let’s GO!