Hey, everybody is Ken again.
And so I'm going to walk through these three steps to financial freedom
and hopefully you'll learn a bit about it, but this is exactly what I did over 20
years ago when I was trying to figure out how do I get out of this rat race?
How do I figure out my own cash in order to get out of this rat race
and to be able to provide for myself so or have an issue like
a lot of people are going through today, and hopefully a lot of people will watch
and they'll do this and they can figure it out on their own as well.
And we all create our own journeys, guys.
So the first thing is
you need to figure out what your number is.
And so what I mean by that is, you know,
let's say let's say that your
your your your expenses are three thousand dollars a month.
Now, maybe they are two, maybe they one, maybe they're five.
It doesn't really matter. But you have to figure this out.
You have to go really calculate how much you're paying for your car
or for transportation, how much you paid for rent or your mortgage.
Maybe you have some kids.
How much do they cost in my particular case?
That's a big number.
You know, there's all kinds of stuff that you have to figure out
and add all that up.
You know, for travel or for food or all those kinds of things,
you know, and you really need to get really detail on this,
because if you don't know your monthly operating expenses or what
I call your burn rate, then you're in trouble.
And that's the basis for all of this.
And so what you want to do in order to get financial
freedom, just think about how easy this can be.
How can we create
three thousand dollars of passive income
for you to be financially free?
That's exactly what we want here. In other words.
Well, the reason we want that is because we want to be able
to not have to worry about that.
In other words, how do you create cash flowing deals
to cover your operating expenses?
At that point, you're financially free.
For example, right now we have about eight thousand tenants all paying us rent.
But we had as a company a million and a half a month
coming out of these deals for all of our projects.
OK, so obviously it's plenty of money to, you know, to do whatever.
And a lot of it goes to investors and all that kind of stuff.
And that's all super complicated.
And we get into a lot more detail of that. KenMcElroy.com
So the cash flow in deals is three thousand.
So here's the here's the key.
Well, you want here is we want to find deals. Let's say
let's say you find a house that cash flows $500,000 a month, OK?
Because it's not always going to be like that.
Sometimes it would be three hundred, sometimes three, four hundred.
I know people that are doing eight hundred nine hundred
thousand dollars a month, OK?
It just depends on how you buy and your operating expenses
and how much the rent is.
So my sister, as an example, she took a five bedroom house
and she rents out the individual rooms and she has one house
that produces about nine hundred dollars a month in cash flow.
So you can get there all kinds of ways.
And this is all about education.
So but the point is, let's just say that these are at about five hundred a month.
OK. Now, lots of management, lots of learning about,
you know, how to rent to a tenant,
how to set up a lease, how to manage that tenant.
You know, there's a ton of work here, don't get me wrong.
But the goal is how do we cover your operating expenses?
So if we can find six deals,
only six and let's say a three year period, you only have to buy two a year.
You can do this while you're working.
Then you've now got near three thousand dollars a month.
That three thousand dollars a month has covered your operating expenses.
And now the goal for you becomes how do you manage these six houses?
How do you manage these six tenants? OK.
And there's a lot of ways that you can do that.
But the the biggest problem most people have
is the third thing, which is how do you find the money?
OK, everyone has that problem.
Here's the here's the the thing that I want you to learn the most today.
Most people don't have money.
OK? Most people most people are borrowing money from somebody
in a form of what we call opium from the bank.
When you take a loan from a bank, that's actually somebody else's money.
If you think about it, it's certainly not yours and it's certainly not the banks.
It's actually the people that are passing the money in the bank.
Same thing on the equity.
So finding the money.
Believe it or not, is not that difficult.
If you have the deal, if you have a great deal that produces five hundred a month
and you could walk it into somebody, or maybe it's a thousand a month cash.
Flow and you can say, listen, you give me the equity,
I'll do all the work and we'll split it, we'll do you get five hundred?
I get five hundred.
I'm telling you, there's investors for that stuff all day long.
And this is what I like to call OPM, other people's money.
And you can find that in the form of both debt.
And equity. Because at the end of the day, guys, let me tell you something.
This is this. It's all just money.
It's just called something different.
This typically comes from high net worth people,
and this typically comes from a bank, let's say.
So finding the money, believe it or not, is difficult, but it's not that difficult.
The harder part is finding these six deals.
That's the hard part.
And then having them cash for five hundred a month, that's the hard part.
It's not actually the transaction, this part.
Believe it or not, there's banks that will load on houses all day long.
Because you know why?
If you can't pay the payment, they get the house.
So that's their collateral.
And so getting the equity and debt together, believe it or not,
is not all that difficult.
The hardest part is actually finding the deal.
So thank you for watching.